GENERAL MARITIME CORPORATION
CONTACT:
John C. Georgiopoulos
Chief Financial Officer
General Maritime Corporation
(212) 763-5670
GENERAL MARITIME CORPORATION ANNOUNCES
FOURTH QUARTER AND FULL YEAR 2003 FINANCIAL RESULTS
Achieves Record Full Year Earnings
New York, New York, February 11, 2004 - General Maritime Corporation (NYSE: GMR)
today reported its financial results for the three month and full year periods
ended December 31, 2003 and 2002.
Financial Review: 2003 Fourth Quarter
The Company had net income of $7.4 million, or $0.20 basic and diluted earnings
per share, for the three months ended December 31, 2003 compared to a loss of
$1.7 million, or $(0.05) basic and diluted earnings per share, for the three
months ended December 31, 2002. Included in net income, for the three months
ended December 31, 2003, is an $18.8 million non-cash charge related to the
write down of five of the Company's nine single hull tankers. Excluding this
write down, the Company would have had net income of $26.2 million, or $0.71
basic earnings per share and $0.70 diluted earnings per share. The increase in
net income was primarily the result of a larger fleet and stronger spot charter
rates during the fourth quarter relative to the fourth quarter of 2002.
Peter C. Georgiopoulos, Chairman, Chief Executive Officer and President,
commented, "2003 was a significant and pivotal year for General Maritime as the
Company further expanded its leadership in the industry. During the year, we
completed the milestone acquisition of 19 tankers, became the second largest
mid-sized tanker owner, posted record earnings and increased our profit
potential going forward. We also utilized the strong cash flow we generated from
our sizeable fleet to significantly reduce our debt levels. Our unwavering
commitment to preserving the Company's financial strength provides General
Maritime with a high level of flexibility to take advantage of strategic
opportunities to grow the company as we have done in the past."
Net voyage revenue, which is gross voyage revenues minus voyage expenses unique
to a specific voyage (including port, canal and fuel costs), increased 127% to
$96.5 million for the three months ended December 31, 2003 compared to $42.4
million for the three months ended December 31, 2002. EBITDA for the three
months ended December 31, 2003 was $43.0 million compared to $16.7 million for
the three months ended December 31, 2002. Net cash provided by operating
activities was $54.2 million for the three months ended December 31, 2003
compared to $11.0 million for the prior year period (please see below for a
reconciliation of EBITDA to net cash provided by operating activities).
The average daily time charter equivalent, or TCE, rates obtained by the
Company's full fleet increased by 45.3% to $24,433 per day for the three months
ended December 31, 2003 from $16,812 for the prior year period. The Company's
average rates for vessels on spot charters increased by 55.9% to $25,344 for the
three months ended December 31, 2003 compared to $16,260 for the prior year
period.
Total vessel operating expenses, which are direct vessel operating expenses and
general and administrative expenses, increased 106% to $35.3 million for the
three months ended December 31, 2003 from $17.1 million for the three months
ended December 31, 2002. During the same periods, the average size of General
Maritime's fleet increased 57.9% to 45.0 vessels from 28.5 vessels due to the
acquisition of 19 tankers and sale of four tankers in 2003. Total daily vessel
operating expenses increased 30.3% to $8,526 per vessel day during the fourth
quarter of 2003 from $6,541 per vessel day during the same period in 2002. Daily
direct vessel operating expenses grew due to the increased percentage of Suezmax
vessels in the Company's fleet, maintenance and repair costs, and decline in the
dollar against the Euro which made Euro denominated costs in 2003 more
expensive.
Financial Review: Year 2003
Net income was $84.5 million, or $2.29 basic earnings per share and $2.26
diluted earnings per share for the year ended December 31, 2003 compared to a
loss of $(9.7) million, or $(0.26) basic and diluted loss per share, for the
year ended December 31, 2002. Excluding the $18.8 million write down taken in
the fourth quarter of 2003, the Company would have had net income of $103.3
million, or $2.79 basic earnings per share and $2.77 diluted earnings per share.
Net voyage revenues were up 131% to $336.6 million for the year ended December
31, 2003 compared to $145.6 million for the year ended December 31, 2002. EBITDA
was $204.5 million for the year ended December 31, 2003 compared to $65.2
million for the year ended December 31, 2002. Net cash provided by operating
activities was $178.1 million for the year ended December 31, 2003 compared to
$43.6 million for the prior year period. TCE rates obtained by the Company's
fleet increased 62.3% to $23,596 per day for the year ended December 31, 2003
from $14,542 for the prior year period.
Total Vessel operating expenses for the year ended December 31, 2003 increased
71% to $114.8 million compared to $67.3 million for the year ended December 31
2002. On a daily basis total vessel operating expenses increased 21.4% to $7,750
per vessel day compared to $6,384 for the year ago period
Mr. Georgiopoulos continued, "General Maritime continues to take advantage of
its large diversified fleet to both solidify its leadership in the Atlantic
basin and further penetrate areas of expanding global oil production. An example
of this success is the contract of affreightment (COA) agreement we signed with
Shell International Trading and Shipping Company. General Maritime's success in
entering into this agreement is a direct result of its leadership position in
the industry, and its high quality fleet and operations. We intend to continue
to explore similar opportunities that enhance our commercial potential and
provide value to our shareholders."
Summary Consolidated Financial and Other Data
---------------------------------------------
The following table summarizes General Maritime Corporation's selected
consolidated financial and other data for the three months and full year ended
December 31, 2003 and 2002. Attached to this press release is an Appendix, which
contains additional financial, operational and other data for the three months
and full year ended December 31, 2003 and 2002.
Three month ended 12 months ended
December-03 December-02 Decembe -03 December-02
----------- ----------- ----------- -----------
INCOME STATEMENT DATA
(Dollars in thousands, except share data)
Voyage revenues
Voyage expenses $ 126,867 $ 63,879 $ 454,456 $ 226,357
Net voyage revenues (30,334) (21,446) (117,810) (80,790)
--------- --------- --------- ---------
Direct vessel expenses 96,533 42,433 336,646 145,567
General and administrative expenses 28,015 13,658 91,981 55,241
Depreciation and amortization 7,268 3,472 22,866 12,026
Net gain on sale of vessels 25,448 15,123 84,925 60,431
Write down of vessels (560) (266) (1,490) (266)
Operating income 18,803 8,846 18,803 13,366
--------- --------- --------- ---------
Net interest expense 17,559 1,600 119,561 4,769
Net income (loss) 10,204 3,337 35,043 14,511
========= ========= ========= =========
7,355 (1,737) 84 518 (9,742)
Basic earnings (loss) per share $ 0.20 $ (0.05) $ 2.29 $ (0.26)
Diluted earnings (loss) per share 0.20 $ (0.05) 2.26 $ (0.26)
Weighted average shares outstanding, thousands 36,974 36,965 36,967 36,981
Diluted average shares outstanding, thousands 37,467 36,965 37,356 36,981
12 months 12 months
ended ended
December-03 December-02
----------- -----------
BALANCE SHEET DATA, at end of period
(Dollars in thousands)
Cash 38,905 2,681
Current assets, including cash 102,473 43,841
Total assets 1,263,578 782,277
Current liabilities, including current portion of long-term debt 89,771 77,519
Current portion of long-term debt 59,553 62,003
Total long-term debt, including current portion 655,670 280,011
Shareholders' equity 568,880 481,636
Three months ended 12 months ended
December-03 December-02 December-03 December-02
----------- ----------- ----------- -----------
OTHER FINANCIAL DATA
(Dollars in thousands)
EBITDA (1) $ 43,007 $ 16,723 $ 204,486 65,200
Net cash provided by operating activities 54,150 11,002 178,112 43,637
Net cash provided (used) by investing activities 23,864 2,197 (502,919) 2,034
Net cash provided (used) by financing activities (54,362) (14,838) 361,031 (60,176)
Capital expenditures
Vessel sales (purchases), including deposits net 24,254 2,251 (501,242) 2,251
Drydocking capitalized survey or improvement costs (4,729) (3,198) (14,137) (13,546)
Weighted average long-term debt 686,278 292,208 601,086 313,537
FLEET DATA
Total number of vessels at end of period 43 28 43 28
Average number of vessels (2) 45.0 28.5 40.6 28.9
Total voyage days for fleet (3) 3,951 2,524 14,267 10,010
Total time charter days for fleet 1,020 317 2,804 1,490
Total spot market days for fleet 2,931 2,207 11,463 8,520
Total calendar days for fleet (4) 4,138 2,619 14,818 10,536
Fleet utilization (5) 95.5% 96.4% 96.3% 95.0%
AVERAGE DAILY RESULTS
Time Charter equivalent (6) $ 24,433 $ 16,812 $ 23,596 $ 14,542
Direct vessel operating expenses per vessel (7) 6,770 5,215 6,207 5,243
General and administrative expense per vessel (8) 1,756 1,326 1,543 1,141
Total vessel operating expenses (9) 8,526 6,541 7,750 6,384
EBITDA(10) 10,393 6,385 13,800 6,188
Three month ended 12 months ended
Decembe -03 December-02 December-03 December-02
----------- ----------- ----------- -----------
EBITDA Reconciliation
Net cash provided by operating activites $ 54,150 $ 11,002 $ 178,112 $ 43,637
- Write down/(gain on sale) of vessels 18,243 8,580 17,313 13,100
- Other reconciling adjustments 342 52 874 52
- Changes in assets and liabilities 2,762 (11,016) (9,518) (20,204)
+ Net interest expense 10,204 3,337 35,043 14,511
EBITDA 43,007 16,723 204,486 65,200
- ----------
(1) EBITDA represents net cash provided by operating activities plus net
interest expense, adjusted for. (a) certain noncash adjustments to net income
such as gains and losses on sales of assets and amortization of restricted stock
awards and (b) changes in certain assets and liabilities. EBITDA is included
because it is used by certain investors. EBITDA is not an item recognized by
GAAP, and should not be considered as an alternative to net cash provided by
operating activities or any other indicator of a company's performance required
by GAAP.
(2) Average number of vessels is the number of vessels that constituted our
fleet for the relevant period, as measured by the sum of the number of days each
vessels was part of our fleet during the period divided by the number of
calendar days in that period.
(3) Voyage days for fleet are the total days our vessels were in our possession
for the relevant period net of off hire days associated with major repairs,
drydockings or special or intermediate surveys.
(4) Calendar days are the total days the vessels were in our possession for the
relevant period including off hire days associated with major repairs,
drydockings or special or intermediate surveys.
(5) Fleet utilization is the percentage of time that our vessels were available
for revenue generating voyage days, and is determined by dividing voyage days by
calendar days for the relevant period.
(6) Time Charter Equivalent, or TCE, is a measure of the average daily revenue
performance of a vessel on a per voyage basis. Our method of calculating TCE is
consistent with industry standards and is determined by dividing net voyage
revenue by voyage days.
(7) Daily direct vessel operating expenses, or DVOE, is calculated by dividing
DVOE, which includes crew costs, provisions, deck and engine stores, lubricating
oil, insurance and maintenance and repairs, by calendar days for the relevant
time period.
(8) Daily general and administrative expense is calculated by dividing general
and administrative expenses by vessel calendar days.
(9) Total Vessel Operating Expenses, or TVOE, is a measurement of our total
expenses associated with operating our vessels_ Daily TVOE is the sum of daily
direct vessel operating expenses, or DVOE, and daily general and administrative
expenses.
(10) Daily EBITDA is total EBITDA divided by total vessel calander days.
General Maritime Corporation's Fleet
------------------------------------
General Maritime Corporation's fleet as of February 10, 2004 was comprised of 42
wholly owned tankers, consisting of 23 Aframax and 19 Suezinax tankers, with a
total of approximately 5.1 million deadweight tons, or dwt. The average age of
the Company's fleet as of December 31, 2003 by dwt was 11.8 years compared to
12.3 years as of December 31, 2002. The average age of the Company's Aframax
tankers was 12.6 years and the average age of the Company's Suezmax tankers was
10.8 years.
Currently 10 of General Maritime Corporation's Aframax tankers and 18 of its
Suezmax tankers are operating on the spot market. 33% of the Company's fleet, 13
Aframax tankers and one of the Company's Suezmax tankers are currently under
time charter contracts, compared to 18% under time charter contract as of
December 31, 2002.
2003
Average
Vessel Vessel Type Expiration Date Daily Rate (1)
- ------ ----------- --------------- --------------
Crude Progress Aframax March 15, 2004 Market Rate (2)
Crude Princess Aframax March 31, 2004 Market Rate (2)
Genmar Constantine Aframax March 7, 2004 (3) Market Rate (4)
Genmar Pericles (5) Aframax October 2, 2004 $19,700
Genmar Trust (5) Aframax October 13, 2004 $19,700
Gemnar Spirit (5) Aframax October 15, 2004 $19,700
Genmar Hector (5) Aframax November 3, 2004 $19,700
Gemnar Challenger (5) Aframax December 6, 2004 $19,700
Genmar Trader (5) Aframax December 15, 2004 $19,700
Genmar Champ (5) Aframax January 10, 2005 $19,700
Genmar Star (5) Afiuinax January 24, 2005 $19,700
Gemnar Endurance (5) Aframax February 12, 2005 $19,700
Genmar Alexandra Aframax February 20, 2005 (6) $25,000
Gemnar Orion Suezmax May 14, 2004 $20,500
- ----------
(1) Before brokers' commissions.
(2) The charter provides for a $16,000 per day floating rate based on spot
market rates which have no floor and rates above $17,000 per day must be shared
with charterer
(3) Termination date is plus or minus 15 days at charterer's election.
(4) The charter provides for a floating rate based on weekly spot market rates
which can be no less than and no more than $22,000 per day.
(5) Charterer has the option to extend the time charter for an additional year
at the same rate.
If the charterer does not exercise their option, the Company can extend the time
charter for an additional year, but at a reduced rate of approximately 20%
(6) Through February 20, 2004, the charter provides for a floating rate based on
weekly spot market rates which can be no less than $16,000 per day and no more
than $22,000 per day.
Company's primary area of operation is the Atlantic basin. The Company also cf
currently has employed in the Black Sea, and Far East to take advantage of
market opportunities and to vessels in anticipation of drydockings.
Write Down of Vessels
---------------------
The Company recorded an $18.8 million non-cash charge, in the fourth quarter of
2003, relating to the write down of five of its nine single-hull tankers. The
non cash charge is due to recent International Maritime Organization (IMO)
regulations which are scheduled to take effect April 5, 2005, mandating that
single-hull tankers be banned from trading in the majority of oil tanker trades
by 2010. Additionally, as a result of the shortened useful lives of these nine
vessels, General Maritime's depreciation will increase by approximately $2.1
million per quarter through 2009.
Mr. Georgiopoulos commented, "General Maritime recorded a non-cash charge on
five of its nine single-hull vessels which will continue to trade and contribute
to earnings until 2010. With 79% of our fleet double-hull or double sided, we
are well positioned to benefit from the anticipated phase-out of a large
percentage of the worldwide fleet, the positive long-term global demand for oil
and the need for a quality operator that adheres to the strictest safety and
environmental standards. We are committed to maintaining and strengthening
General Maritime's leadership position in the mid-sized tanker industry." Mr.
Georgiopoulos concluded, "General Maritime is well positioned to operate the
majority of its sizeable fleet in the spot market and continue to benefit from
the strong rate environment. In addition to being optimally positioned to fully
take advantage of strong markets, the time charters that we have signed in 2003
provide the Company and its shareholders with secured revenue and down side
protection. We will continue to look for opportunities to sign time charters
that meet our stringent rate requirements."
About General Maritime Corporation
----------------------------------
General Maritime Corporation is a provider of international seaborne crude oil
transportation services principally within the Atlantic basin which includes
ports in the Caribbean, South and Central America, the United States, West
Africa, the Mediterranean, Europe and the North Sea. We also currently operate
tankers in other regions including the Black Sea and Far East. General Maritime
Corporation owns and operates a fleet of 42 tankers - 23 Aframax and 19 Suezmax
tankers - making it the second largest mid-sized tanker company in the world,
with a carrying capacity of approximately 5.1 million dwt.
Conference Call Announcement
----------------------------
General Maritime Corporation announced that it will hold a conference call on
Thursday, February 12, 2003 at 8:30 a.m. Eastern Daylight Time to discuss its
2003 fourth quarter and year-end financial results. To access the conference
call, dial (719) 457-2728 and ask for the General Maritime Corporation
conference call. A replay of the conference call can also be accessed until
February 25, 2004 by dialing (888) 203-1112 for U.S. callers and (719) 457-0820
for international callers, and entering the passcode 322490. The conference call
will also be simultaneously webcast and will be available on the Company's
website, www.GeneralMaritimeCorp.com.
"Safe Harbor" Statement Under the Private
Securities Litigation Reform Act of 1995
----------------------------------------
This press release contains forward-looking statements made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. These
forward looking statements are based on management's current expectations and
observations. Included among the factors that, in the company's view, could
cause actual results to differ materially from the forward looking statements
contained in this press release are the following: failure of one or more of the
contemplated acquisitions to close; changes in demand; a material decline or
prolonged weakness in rates in the tanker market; changes in production of or
demand for oil and petroleum products, generally or in particular regions;
greater than anticipated levels of tanker newbuilding orders or lower than
anticipated rates of tanker scrapping; changes in rules and regulations
applicable to the tanker industry, including, without limitation, legislation
adopted by international organizations such as the International Maritime
Organization and the European Union or by individual countries; actions taken by
regulatory authorities; changes in trading patterns significantly impacting
overall tanker tonnage requirements; changes in the typical seasonal variations
in tanker charter rates; changes in the cost of other modes of oil
transportation; changes in oil transportation technology; increases in costs
including without limitation: crew wages, insurance, provisions, repairs and
maintenance; changes in general domestic and international political conditions;
changes in the condition of the company's vessels or applicable maintenance or
regulatory standards (which may affect, among other things, the company's
anticipated drydocking or maintenance and repair costs); and other factors
listed from time to time in the company's filings with the Securities and
Exchange Commission, including, without limitation, its Annual Report on Form
10-K for the year ended December 31, 2002 and its subsequent Reports on Form
10-Q and Form 8-K, and its Registration Statements on Form S-4 and Form S-3.
THREE MONTHS ENDED
Aframax Fleet Suezmax Fleet Total Fleet
December-03 December-02 December-03 December-02 December-03 December-02
% Change Amount Amount % Change Amount Amount % Change
From Prior % of Total % of Total From Prior % of Total % of Total From Prior
Period for Period for Period Period for Period for Period Period Amount Amount
------ ---------- ---------- ------ ---------- ---------- ------ ------ ------
Net Voyage Revenues 48.5% 49,579 33,389 419.2% 46,954 9,044 127.5% 96,533 42,433
$1,000's 51% 79% 49% 21%
Average Daily TCE 35.9% 21,929 16,138 39.8% 27,784 19,877 45.3% 24,433 16,812
Time Charter Revenues 207.4% 20,126 6,548 2,124 - 239.8% 22,250 6,548
$ 1,000's 90% 100% 10% 0%
Spot Charter Revenues 9.7% 29,453 26,841 395.7% 44,830 9,044 107.0% 74,283 35,885
$ 1,000's 40% 75% 60% 25%
Calendar Days 10.7% 2,390 2,159 280.0% 1,748 460 58.0% 4,138 2,619
58% 82% 42% 18%
Vessel Operating Days 9.3% 2,261 2,069 271.4% 1,690 455 56.5% 3,951 2,524
57% 82% 43% 18%
Capacity Utilization -1.3% 94.6% 95.8% -2.3% 96.7% 98.9% -0.9% 95.5% 96.4%
# Days Vessels on
Time Charter 187.7% 912 317 108 - 221.7% 1,020 317
89% 100% 11% 0%
# Days Vessels on
Spot Charter -23.0% 1,349 1,752 247.7% 1,582 455 32.8% 2,931 2,207
46% 79% 54% 21%
Average Daily Time
Charter Rate 6.8% 22,069 20,656 19,688 - 5.6% 21,817 20,656
Average Daily Spot
Charter Rate 42.5% 21,834 15,320 42.6% 28,336 19,877 55.9% 25,344 16,260
Daily Direct Vessel
Expenses
(per Vessel) 21.6% 6,136 5,046 27.2% 7,636 6,004 29.8% 6,770 5,215
DailyG&A
(per Vessel) 32.4% 1,756 1,326 32.4% 1,756 1,326 32.4% 1,756 1,326
Total Daily Vessel
Operating Expenses
(per Vessel) 23.0% 7,892 6,416 31.8% 9,392 7,125 30.4% 8,526 6,541
Average Age of Fleet
at End of Period
(Years) 12.6 12.3 10.8 12.2 11.8 12.3
# Vessels at End
of Period 4.3% 24.0 23.0 280.0% 19.0 5.0 53.6% 43.0 28.0
56% 82% 44% 18%
Average Number of
Vessels 10.6% 26.0 23.5 280.0% 19.0 5.0 58.1% 45.0 28.5
58% 83% 42% 18%
DWT at End of Period 14.5% 2,513 2,195 285.4% 2,912 756 83.8% 5,425 2,951
1,000's 46% 74% 54% 26%
TWELVE MONTHS ENDED
Aframax Fleet Suezmax Fleet Total Fleet
December-03 December-02 December-03 December-02 December-03 December-02
% Change Amount Amount % Change Amount Amount % Change
From Prior % of Total % of Total From Prior % of Total % of Total From Prior
Period for Period for Period Period for Period for Period Period Amount Amount
------ ---------- ---------- ------ ---------- ---------- ------ ------ ------
Net Voyage Revenues 64.2% 193,487 117,859 416.7% 143,159 27,708 131.3% 336,646 145,567
$1,000's 57% 81% 43% 19%
Average Daily TCE 50.3% 21,568 14,352 75.4% 27,034 15,410 62.3% 23,596 14,542
Time Charter Revenues 83.6% 52,012 28,335 6,731 - 107.3% 58,743 28,335
$ 1,000's 89% 100% 10% 0%
Spot Charter Revenues 58.0% 141,475 89,524 392.4% 136,428 27,708 137.1% 277,903 117,232
$ 1,000's 51% 76% 49% 24%
Calendar Days 6.2% 9,251 8,711 205.0% 5,567 1,825 40.6% 14,818 10,536
62% 83% 38% 17%
Vessel Operating Days 9.2% 8,971 8,212 194.5% 5,296 1,798 42.5% 14,267 10,010
63% 82% 37% 18%
Capacity Utilization 2.9% 97.0% 94.3% -3.4% 95.1% 98.5% 1.3% 96.3% 95.0%
# Days Vessels on
Time Charter 64.9% 2,457 1,490 347 - 88.2% 2,804 1,490
88% 100% 12% 0%
# Days Vessels on
Spot Charter -3.1% 6,514 6,722 175.2% 4,949 1,798 34.5% 11,463 8,520
57% 79% 43% 21%
Average Daily Time
Charter Rate 11.3% 21,172 19,017 19,402 - 10.2% 20,953 19,017
Average Daily Spot
Charter Rate 63.1% 21,719 13,318 78.9% 27,569 15,410 76.2% 24,243 13,760
Daily Direct Vessel
Expenses
(per Vessel) 11.6% 5,679 5,090 18.5% 7,081 5,973 18.4% 6,207 5,243
DailyG&A
(per Vessel) 35.2% 1,543 1,141 35.2% 1,543 1,141 35.2% 1,543 1,141
Total Daily Vessel
Operaing Expenses
(per Vessel) 15.9% 7,222 6,231 21.2% 8,624 7,114 21.4% 7,750 6,384
Average Age of Fleet
at End of Period
(Years) 12.6 12.3 10.8 12.2 11.8 12.3
# Vessels at End
of Period 4.3% 24.0 23.0 280.0% 19.0 5.0 53.6% 43.0 28.0
56% 82% 44% 18%
Average Number of
Vessels 6.3% 25.4 23.9 204.0% 15.2 5.0 40.6% 40.6 28.9
63% 83% 37% 17%
DWT at End of Period 14.5% 2,513 2,195 285.4% 2,912 756 83.8% 5,425 2,951
1,000's 46% 74% 54% 26%
00656.0022 #463267