FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of July, 1999
CENARGO INTERNATIONAL PLC
(Translation of registrant's name into English)
Puttenham Priory
Puttenham
Surrey GU3 1AR
United Kingdom
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will
file annual reports under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
Indicate by check mark whether the registrant by furnishing
the information contained in this Form is also thereby furnishing
the information to the commission pursuant to Rule 12g3-2(b)
under the Securities Exchange Act of 1934.
Yes No X
INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Set forth herein is a copy of the report to shareholders
for the quarter ended March 31, 1999 containing certain unaudited
financial information and a Management's Discussion and Analysis
of Financial Condition and Results.
2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
General
Cenargo, an English company, is a diversified international
transportation group specialising in European freight and
passenger ferry services and deep sea dry cargo shipping, as well
as the movement of surface and air freight and the management of
freight logistics.
Results of Operations
Three months ended March 31, 1999 compared to three months ended
March 31, 1998.
Operating Revenues
Operating revenues decreased in the second quarter ended March
31, 1999 (the '1999 quarter') by $2.4 million to $26.0 million
compared to $28.4 million in the second quarter ended March 31,
1998 (the '1998 quarter'). The decrease comprises a $7.9 million
decrease in charter hire revenues, a $3.2 million increase in
ferry service revenues and a $2.3 million increase in logistics
and other revenues. The increase in ferry service revenues was
due to the inclusion of Merchant Ferries new Liverpool - Dublin
RoPax service which commenced operation in February 1999. The
decrease in charter hire revenue represents the loss of charter
hire previously generated by seven of the Companies deep sea
vessels disposed of in the second quarter of 1998 and the first
quarter of 1999. The increase in logistics and other revenue was
due to the inclusion of revenue from Duncan International
acquired in May 1998 and Freightwatch Limited acquired on 2 March
1999.
Operating Expenses
Vessel and other operating costs decreased in the 1999 quarter by
$0.6 million to $19.3 million compared to $19.9 million in the
1998 quarter, primarily as a result of the inclusion of Duncan
and Freightwatch results and the operating costs of the Liverpool
- - Dublin RoPax service in the 1999 quarter off set by decreased
deep sea operating costs as a result of the seven vessels sold.
Depreciation for the 1999 quarter has decreased by $0.4 million
to $2.1 million compared to $2.5 million in the 1998 quarter,
which represents a reduction of depreciation on vessels sold off
set by the inclusion of depreciation on the two RoPax vessels
delivered to the company in September 1998 and January 1999.
Amortisation of dry docking and special survey costs for the 1999
3
quarter decreased by $0.1 million to $0.3 million compared to
$0.4 million in the 1998 quarter due to the vessels sold.
General administrative expenses for the 1999 quarter decreased by
$0.3 million to $3.3 million compared to $3.6 million in the 1998
quarter due to the inclusion of non recurring costs on the
acquisition of Scruttons Plc in the 1998 quarter, reductions in
Head Offices costs in the 1999 quarter partially off set by the
inclusion of Duncan's results in the 1999 quarter.
Foreign exchange loss for the 1999 quarter has increased by $0.2
million to $0.3 million compared to $0.1 million in the 1998
quarter. The increase represents unrealised losses on re-
translation of monetary sterling based assets and liabilities
within US Dollar reporting subsidiary companies.
Primarily as a result of these developments total operating
expenses decreased by $1.1 million to $25.5 million for the 1999
quarter compared to $26.6 million for the 1998 quarter.
Net Operating Income
As a result of the foregoing factors, net operating income
decreased by $1.4 million to $0.5 million for the 1999 quarter
compared to operating income of $1.9 million for the 1998
quarter.
Other Income/Expenses
Interest income increased by $0.6 million to $0.9 million for the
1999 quarter compared to $0.3 million for the 1998 quarter due to
increased interest income from cash deposits from the proceeds of
the disposal of vessels.
Interest expense increased by $2.2 million to $4.8 million for
the 1999 quarter compared to $2.6 million for the 1998 quarter.
The increase was due to the increased interest costs as a result
of the issue of the Ship Mortgage Notes. The gain on disposal of
assets of $4.5 million in the 1998 quarter represented the profit
on sale of three of the company's Panamax vessels in the 1998
quarter.
Net Income
As a result of the foregoing net income decreased by $4.8 million
to a net loss of $2.2 million for the 1999 quarter compared to
net income of $2.6 million for the 1998 quarter. EBITDA
generated was $3.0 million for the 1999 quarter compared to $9.4
million for the 1998 quarter.
4
Six months ended March 31, 1999 Compared to six months ended
March 31, 1998
Operating Revenues
Operating revenues increased in the six months ended March 31,
1999 (the '1999 period') by $1.0 million to $52.4 million
compared to $51.4 million in the six month ended March 31, 1998
(the '1998 period'). The increase comprises a $14.9 million
decrease in charter hire revenues, a $12.5 million increase in
ferry service revenues and $3.4 million increase in logistics and
other revenues. The increase in ferry service revenues was due
the inclusion of Belfast Freight Ferries ('BFF') results
(acquired as part of the Scruttons Plc Group in the second
quarter of 1998), the inclusion of charter hire from the Dawn
Merchant (RoPax vessel) employed under a short term time charter
during the first quarter of 1999 and income from Merchant Ferries
Liverpool - Dublin RoPax service which commenced operations in
February 1999. The decrease in charter hire revenue represents
the loss of charter hire previously generated by nine of the
Company's deep sea vessels disposed of in the first and second
quarters of 1998 and the first quarter of 1999 and the inclusion
of $1.3 million liquidated damages received from the shipyard for
the late delivery of the Brave Merchant. The increase in
logistics and other revenue was due to the inclusion of the
results of Duncan International acquired in May 1998 and
Freightwatch Limited acquired on 2 March 1999.
Operating Expenses
Vessel and other operating costs increased in the 1999 period by
$3.9 million to $38.5 million compared to $34.6 million in the
1998 period, primarily as a result of the inclusion of BFF and
Duncan results in the 1999 period off set by decreased deep sea
operating costs as a result of the nine vessels sold.
Depreciation for the 1999 period has decreased by $1.6 million to
$4.0 million compared to $5.6 million in the 1998 period, which
represents a reduction of depreciation on vessels sold off set by
the inclusion of depreciation on BFF vessels for the whole of the
1999 period. Amortisation of dry docking and special survey
costs has decreased by $ 0.1 million to $0.7 million for the 1999
period compared to $0.8 million for the 1998 period, reflecting
an increase due to the inclusion of BFF vessels off set by a
decrease due to the vessels sold.
General and administrative expenses for the 1999 period increased
by $0.6 million to $6.7 million compared to $6.1 million in the
1998 period representing the inclusion of BFF and Duncan costs
for the whole of the 1999 period and the inclusion of non
5
recurring costs on the acquisition of Scruttons Plc in the 1998
period.
Foreign exchange loss increased by $0.8 million to a loss of $0.5
million in the 1999 period compared to a gain of $0.3 million in
the 1998 period, primarily reflecting the unrealised losses in
the 1999 period on re-translation of sterling monetary assets and
liabilities within US Dollar reporting subsidiary companies.
Primarily as a result of these developments total operating
expenses increased by $3.5 million to $50.4 million for the 1999
period compared to $46.9 million for the 1998 period.
Net Operating Result
As a result of the foregoing factors, net operating income
decreased by $2.5 million to $2.0 million for the 1999 period
compared to $4.5 million for the 1998 period.
Other Income/Expenses
Interest income increased by $1.9 million to $2.2. million for
the 1999 period compared to $0.3 million for the 1998 period due
to increased interest income from cash deposits from the proceeds
of the disposal of vessels.
Interest expense increased by $4.4 million to $9.8 million for
the 1999 period compared to $5.4 million for the 1998 period.
The increase was due to the increased interest cost as a result
of the issue of the Ship Mortgage Notes and the inclusion of
interest on BFF vessels' capital leases for the whole of the 1999
period.
The gain on disposal of assets was $2.0 million in the 1999
period compared to $14.1 million in the 1998 period. The gain in
the 1999 period represents the profit on sale of the Merchant
Prince and the Moon Dance and the gain in the 1998 period
represents the profit on disposal of nine of the company's deep
sea vessels.
Net Income
As a result of the foregoing net income decreased by $11.6
million to a net loss of $2.4 million for the 1999 period
compared to net income of $9.2 million for the 1998 period.
EBITDA generated was $8.7 million for the 1999 period compared to
$25.1 million for the 1998 period.
6
Liquidity and Capital Resources
Total shareholders equity at March 31, 1999 was $50.8 million
compared to $66.7 million at March 31, 1998. The decrease of
$15.9 million is represented by a net loss of $15.4 million and a
cumulative translation adjustment of $0.5 million on translation
of sterling based subsidiary companies.
Long term debt at March 31, 1999 consists of $172.5 million of
9.75% First Priority Ship Mortgage Notes and $51.2 million
currently drawn down from an $85 million facility to finance
building contracts for two further RoPax vessel new buildings
together with other secured debt and obligations under capital
leases.
At March 31, 1999 the company had cash and cash equivalents of
$87.3 million compared with $16.2 million at March 31, 1998.
Cash and cash equivalents increased by $71.1 million primarily as
a result of the disposition of vessels and proceeds from the
offering of the Ship Mortgage Notes. At March 31, 1999 $55.0
million is held in escrow and blocked deposit accounts. $53.8
million to secure the Ship Mortgage Notes on the sale of
mortgaged vessels and $1.2 million to secure other guarantees.
Free cash balances total $32.3 million at March 31, 1999.
SEGMENT ANALYSIS
Irish Sea
The results for the second quarter include the start up of the
new Liverpool/Dublin service on 15 February 1999. As reported
in the press release relating to the First Quarter's results,
there was a minor technical problem which meant that one of the
new vessels had to be immediately withdrawn for 10 days for
repairs to be effected. Although the cost of the repairs is
recoverable from the yard, the loss of earnings adversely
affected results and also customer confidence. We are pursuing
an action against the engine manufacturers for losses. We have
not taken any potential recovery into the results for the
Quarter. We continue to pursue the outstanding penalties of
approximately US$800,000 due from the shipyard as a result of the
delay to the delivery of the Brave Merchant. No credit has been
taken in the results to date in relation to this outstanding
amount.
There have been no further incidents on either vessel.
Operationally the service has performed well and is succeeding in
attracting an increasing amount of cargo. Up to the end of May
1999 the service has carried approximately 16500 units (and is
currently carrying at an annualised volume of 66000 units) at
rates in excess of those which we budgeted. Support has been
7
especially strong on the night-time sailings particularly from
Liverpool to Dublin. Support has been less strong on sailings
from Dublin, where there appears to be a fall in export volumes.
We have also not attracted the level of cargo that we expected on
the daytime sailing's although this is gradually increasing as
the regularity and reliability of the service becomes known.
The Heysham/Belfast service performed very well during the
Quarter carrying approximately 32000 units at budgeted rates.
The Heysham/Dublin service was adversely affected by the scarcity
of berthing slots in Dublin. We had received assurances that
additional berthing facilities would be made available to us in
the port following the start up of the new Liverpool/Dublin
service. In effect these did not materialise. This meant that
the two vessels on this service had to be rescheduled away from
the prime slot times to make way for the two new vessels
operating on the Liverpool/Dublin service. As a result trailer
units carried in April 1999 were 4387, compared to a budgeted
volume of 5248 units. Rates, as a result of not being able to
offer a prime time service, were also marginally less than we had
budgeted. Urgent action is being taken to correct this Dublin
berthing problem although we do not now expect any real
improvement in the short term.
Duty free is expected to be cancelled within Europe with effect
from end June 1999. This will be beneficial to the Company, as
it should lead to increases in rates to compensate other shipping
lines for the loss of revenue and profitability from duty free
sales.
Logistics
The purchase of the Eaglescliffe site continues to be delayed by
Government bureaucracy. This delay in acquiring the site
continues to inhibit the commercial development of the site, and
the resultant profitability. We are assured that completion of
the purchase will take place by end July 1999.
Deep Sea
The company's two remaining deep-sea vessels, the Merchant
Premier and the Merchant Principal, remain on charter to BHP.
The charters expire end August 1999. The company is proposing
to sell the two vessels on expiration of the charters. The
proceeds for the two ships are expected to be approximately US$3
million. The company has no plans to move back into the deep sea
markets in the foreseeable future.
8
Ferrimaroc
The results for the Quarter are above budget, with both volumes
and rates being higher than those budgeted, particularly for
freight. Bookings for the summer season are also much higher
than last year. The service is currently being operated with one
vessel, the Scirocco. A second vessel, Mistral, will enter the
service at the end of June 1999, to capitalise on the summer
season volumes.
Year 2000 Computer Problem
The Year 2000 computer problem arises because many computer
hardware and software systems use only two digits to represent
the year. As a result, these systems and programs many not
process dates beyond 1999, which may cause errors in information
or systems failures resulting in widespread commercial
disruption. The operations of the Company depend on the computer
systems and other equipment, with embedded computer chips, of the
Company as well as systems and equipment of key suppliers,
customers, banks, advisors and other dependencies. This exposes
the Company to the risk of business interruption in the event
that there is a failure of the Company's computer systems or
equipment or failure by other parties to remedy their own Year
2000 issues.
The Company has formed a Year 2000 project team. The team
comprises Senior Management representatives from each business
within the company and is co-ordinated by an appointed Year 2000
Project Manager. The team meets on a regular basis to assess
progress of the project against a project timetable and the
Project Manager reports regularly to the Company Board.
The Company has developed an action plan to minimise the threat
of business disruption from Year 2000 non-compliance related
issues. The Company has largely completed the inventory and
assessment phases of the project and remediation, testing and
implementation phases of the project remain on schedule to meet
an August 31, 1999 target date. The Company believes that the
costs of preparations for the Year 2000 from calendar year 1998
through to 2000 is approximately $0.75 million of which an
estimated $0.5 million has been spent as of March 31, 1999. The
technical managers of the Company's vessels have identified the
Year 2000 issues in regard to their own systems and the onboard
systems of those of the Company's vessels that each manager
maintains and expect to resolve any relevant issues prior to
January 1 2000.
The company continues to believe it is taking the necessary steps
to resolve the Year 2000 issues. However, the Year 2000 also
presents a number of other risks and uncertainties that could
9
affect the company including utilities and telecommunications
failures, the lack of personnel skilled in the resolution of Year
2000 issues, and the nature of government responses to the
issues, amongst others. Given the possible consequences of
failure to resolve such Year 2000 issues, there can be no
assurances that any such failures would not have a material
adverse effect on the company's business, financial conditional
and results of operations.
European Monetary Union - Euro
On January 1 1999, eleven member countries of the European Union
established fixed conversion rates between their existing
sovereign currencies, and adopted the Euro as their new common
currency. The Euro is currently trading on currency exchanges
and the legacy currencies will remain legal tender in
participating countries for a transition period between January
1, 1999 and January 1, 2002. During the transition period, non
cash payments can be made in the Euro and parties can elect to
pay for goods and services and transact business using either
Euro or a legacy currency. Between January 1, 2002 and July 1,
2002 the participating countries will introduce Euro notes and
coins and will withdraw all legacy currencies so that they will
no longer be available.
Although the United Kingdom is currently not participating in the
Euro the Company's businesses trade extensively within the Euro
Zone. The Company will continue to evaluate all pricing,
currency risk, accounting, tax, governmental, legal and
regulatory issues as guidance becomes available. Based on
current information the Company does not expect that Euro
conversion will have a material adverse affect on its business or
financial condition.
FORWARD LOOKING STATEMENTS
This release contains forward looking statements (as defined in
Section 21E of the Securities Exchange Act of 1934, as amended)
which reflect management's current views with respect to certain
future events and performance, including statements relating to
multi purpose vessel charters and Irish sea freight ferry volumes
and rates. The following factors are among those that could
cause actual results to differ materially from the forward
looking statements, which involve risks and uncertainties, and
that should be considered in evaluating any such statements:
changes in the political environment in Northern Ireland and
Eire, Spain and Morocco, changes in the level of competition in
the Irish Sea and Mediterranean, changes in the ability to
provide a regular scheduled service on the Irish sea and the
company's Mediterranean service.
10
Unaudited Consolidated Statements of Income
Three Months Ended March 31, 1999, 1998
(Expressed in US $000)
1999 1998
Operating revenues
Charterhire income 2,951 11,189
Ferry service income 18,103 14,906
Logistics and other income 5,070 2,811
Brokers' commission (112) (478)
------- --------
26,012 28,428
------- --------
Operating expenses
Vessel and other operating costs 19,359 19,946
Depreciation 2,147 2,545
Amortisation of drydocking 331 394
Goodwill amortisation 30 23
General and administrative exps 3,293 3,554
Foreign exchange (gain) loss 304 93
------- --------
25,464 26,555
------- --------
Operating income 548 1,873
Other income (expense)
Interest income 916 254
Interest expense (4,804) (2,571)
Gain on disposal of assets (12) 4,530
------- --------
(3,900) 2,213
------- --------
Income before income taxes (3,352) 4,086
Income taxes 1,130 (1,387)
Minority Interests (20) (47)
------- --------
Net income (loss) (2,242) 2,652
------- --------
11
Additional financial information
EBITDA (note 4) 3,044 9,365
EBITDA to interest expense, net 0.8x 4.0x
See accompanying notes to unaudited consolidated financial
statements
12
Unaudited Consolidated Statements of Income
Six Months Ended March 31, 1999, 1998
(Expressed in US $000)
1999 1998
Operating revenues
Charterhire income 5,896 21,524
Ferry service income 37,227 24,675
Logistics and other income 9,521 6,111
Brokers' commission (245) (874)
------- --------
52,399 51,436
------- --------
Operating expenses
Vessel and other operating costs 38,504 34,590
Depreciation 3,969 5,639
Amortisation of drydocking 651 782
Goodwill amortisation 53 46
General and administrative exps 6,692 6,142
Foreign exchange (gain) loss 499 (285)
------- --------
50,368 46,914
------- --------
Operating income 2,031 4,522
Other income (expense)
Interest income 2,176 283
Interest expense (9,835) (5,395)
Gain on disposal of assets 1,992 14,123
------- --------
(5,667) 9,011
------- --------
Income before income taxes (3,636) 13,533
Income taxes 1,325 (4,258)
Minority Interests (59) (115)
Net income (loss) (2,370) 9,160
------- --------
Additional financial information
EBITDA (note 4) 8,696 25,112
EBITDA to interest expense, net 1.1x 4.9x
See accompanying notes to unaudited consolidated financial
statements.
13
Unaudited Consolidated Balance Sheets
As of March 31, 1999, 1998
(Expressed in US$000)
1999 1998
Assets
Current assets
Cash and cash equivalents 32,317 16,196
Cash held in escrow and blocked deposits 54,972 -
Trade accounts receivable 20,189 18,870
Other receivables 3,330 15,018
Due from joint ventures 122 -
Inventories 1,137 2,134
Prepaid expenses and accrued income 1,938 1,443
------- -------
114,005 53,661
Land and buildings 14,245 11,419
Vessels and equipment 138,621 139,535
Vessels under construction 53,440 70,884
Loans to joint ventures 4,083 4,255
Other investments 567 15,772
Goodwill, net 2,102 889
Deferred charges, net 7,625 2,187
Pension fund debtor 4,960 -
------- -------
Total assets 339,648 298,602
------- -------
Liabilities and shareholders' equity
Current liabilities
Current maturities of long-term debt 1,685 33,641
Capital lease obligations 3,303 3,040
Trade accounts payable 12,927 14,710
Accrued expenses 3,521 3,480
Accrued interest - Ship Mortgage Notes 4,977 -
Other creditors 2,370 7,023
------- -------
28,783 61,894
Long-term liabilities
Long-term debt 57,325 123,273
Ship mortgage notes 172,483 -
Capital lease obligations 14,168 15,858
Other creditors 1,833 1,748
Deferred taxation 14,250 29,138
------- -------
Total liabilities 288,842 231,911
------- -------
14
Shareholders' equity
Share capital 21 -
Cumulative translation adjustment 223 733
Retained earnings 50,562 65,958
------- -------
Total shareholders' equity 50,806 66,691
------- -------
Total liabilities and shareholders' equity 339,648 298,602
------- -------
See accompanying notes to unaudited consolidated financial
statements.
15
Unaudited Consolidated Statements of Cash Flows
Six Months Ended March 31, 1999, 1998
(Expressed in US$000)
1999 1998
Operating Activities
Net income (loss) (2,370) 9,160
Amortisation of drydocking and deferred charges 788 672
Amortisiation of ship mortgage notes discount 137 -
Depreciation 3,969 5,639
(Gain) loss on disposition of fixed assets (1,992) (14,123)
Foreign exchange (gain) loss (383) 2,130
Goodwill amortisation 53 46
(Increase) decrease in pension debtor (10) -
(Increase) decrease in trade debtors (2,942) (4,578)
(Increase) decrease in other debtors 2,562 (11,066)
(Increase) decrease in stock 667 161
(Increase) decrease in prepayments
and accrued income 1,964 525
Increase (decrease) in trade creditors 1,772 3,497
Increase (decrease) in other creditors (9,536) 266
Increase (decrease) in accrued expenses (3,551) (883)
Increase (decrease) in deferred tax liability (1,325) 4,435
-------- --------
Net cash (used) in operating activities (10,197) ( 4,119)
-------- --------
Investing activities
Additions to vessels and equipment (2,744) (2,489)
Additions to vessels under construction (26,204) (28,810)
Additions to land and buildings - (92)
Purchase of subsidiary companies (1,035) (20,760)
Proceeds from sale of capital assets 66,550 71,890
-------- --------
36,567 19,739
-------- --------
Financing activities
Proceeds from long-term debt 8,550 38,145
Repayment of long-term debt (1,056) (46,024)
Due to joint ventures 1,876 (566)
Repayments of capital leases (1,925) (221)
Proceeds from capital leases 1,305 797
Deferred charges paid (770) (627)
-------- --------
7,980 (8,496)
-------- --------
16
Net increase (decrease) in cash
and cash equivalents 34,350 7,124
Cash and cash equivalents at beginning
of period 52,939 9,072
-------- -------
Cash and cash equivalents at end of period 87,289 16,196
-------- -------
See accompanying notes to unaudited consolidated financial
statements.
17
Notes to Unaudited Consolidated Financial Statements
March 31, 1999, 1998
1. Interim accounting policy
In the opinion of management of Cenargo International Plc
(the "Company") the accompanying unaudited consolidated
financial statements include all adjustments, consisting only
of normal recurring adjustments, necessary to present fairly
in accordance with accounting principles generally accepted
in the U.S. the financial position of the Company and the
results of operations and cash flows for the six months ended
March 31, 1999 and 1998. Although the Company believes that
the disclosure in these financial statements is adequate to
make the information presented not misleading, certain
information and footnote information normally included in
interim financial statements prepared in accordance with
generally accepted accounting principles has been condensed
or omitted pursuant to the rules and regulations of the
Securities and Exchange Commission. Results of operations
for the six months ended March 31, 1999 and 1998 are not
necessarily indicative of what operating results may be for
the full year.
2. Changes in shareholder's equity
Cumulative Ordinary
translation share Retained
adjustment capital earnings
----------- -------- --------
Balance at September 30, 1997 $ (47) $ - $ 56,798
Net income (loss) 686 - 9,160
-------- --------- ---------
Balance at March 31, 1998 $ 733 $ - $ 65,958
======== ========= =========
Balance at September 30, 1998 $ 384 $ 21 $ 52,932
Net income (loss) (161) - (2,370)
-------- --------- ---------
Balance at March 31, 1999 $ 223 $ 21 $ 50,562
======== ========= =========
18
3. Contingent liability
The company insures the legal liability risks for its
shipping activities with the Steamship Mutual, UK Mutual and
North of England mutual protection and indemnity
associations. As a member of mutual associations, the
company is subject to calls payable to the associations based
on the company's claims record in addition to the claims
record of all other members of the associations. A
contingent liability exists to the extent that the claims
records of the members of the associations in the aggregate
show significant deterioration which result in additional
calls on the members.
19
Notes to Unaudited Consolidated Financial Statements
March 31, 1999, 1998
4. EBITDA
EBITDA is defined as net income before taxes, interest
expense, interest income, depreciation, amortisation of dry
docking and special survey costs, amortisation of goodwill
and minority interest. EBITDA includes profits and losses on
disposition of vessels which management believes to be a
significant part of the Company's operating activities and
thus included within the EBITDA calculation.
20
FLEET LIST AT MARCH 31, 1998
Year
Vessel Name Vessel Type Capacity Built Flag
MERCHANT PRINCIPAL Multipurpose 17,944 dwt
Container 504 TEU 1977 Hong Kong
MERCHANT PREMIER Multipurpose 17,944 dwt
Container 504 TEU 1977 Hong Kong
MERCHANT BRAVERY C RoRo 40 cars 1978 Bahamas
100 trailer units
MERCHANT BRILLIANT C RoRo 40 cars 1979 Bahamas
100 trailer units
MERCHANT VENTURE C RoRo 55 trailer units 1979 British (Isle
of Man)
RIVER LUNE RoRo 49 cars 1983 Bahamas
93 trailer units
SAGA MOON RoRo 50 cars 1984 British
(Gibraltar)
72 trailer units
SPHEROID RoRo 53 trailer units 1971 British (Isle
of Man)
MISTRAL * Passenger/Car 2,386 passengers 1981 Bahamas
Ferry 700 cars
SCIROCCO C Passenger/Car 1,315 passengers 1974 Bahamas
Ferry 296 cars
30 trailer units
DAWN MERCHANT C RoPax 250 passengers 1998 British (Isle
164 trailer units of Man)
BRAVE MERCHANT C RoPax 250 passengers 1999 British (Isle
164 trailer units of Man)
HULL 289 RoPax 250 passengers expected Bahamas
164 trailer units 2000
HULL 290 RoPax 250 passengers expected Bahamas
164 trailer units 2000
21
C Collateral vessel securing 9% Ship Mortgage Notes
* Operated under an operating lease.
CENARGO INTERNATIONAL PLC
HEAD OFFICE
Puttenham Priory Puttenham Surrey GU3 1AR
Telephone + 44 1483 241000 Facsimile + 44 1483 241010
22
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly
authorized.
CENARGO INTERNATIONAL PLC
(registrant)
Dated: June 10, 1999 By: /s/ Michael Hendry
___________________
Michael Hendry
Chairman
23
02442003.AA3