Oslo, 8 February 2024 - Gram Car Carriers ASA (`GCC'), the world's third-largest car carrier tonnage provider, today reported interim results for the fourth quarter and full year 2023 and approved the company's eighth consecutive quarterly dividend reflecting earnings growth and a pay-out ratio of 75% of net profit in line with policy.

• Board of Directors approved dividend of USD 0.979 per share for Q4 2023, equal to 75% of the net profit of USD 37.8 million
• Eight consecutive quarter with increased dividend, up 52% from Q3 2023
• 2023 total distribution of USD 67.2 million, equal to USD 2.318 per share
• Q4 2023 revenue of USD 56.4 million and EBITDA of USD 41.6 million
• Q4 2023 average TCE rate per day: Panamax USD 50,570, Mid-size USD 29,840 and Distribution USD 21,620
• Total revenue backlog of USD 851 million at end Q4 2023
• Successfully refinanced 2 vessels in Q4 at lower borrowing cost
• Sale of Viking Amber (4,200 CEU, 2010) to capture high second-hand values
• Favourable market outlook with high charter rates and long contract durations

"We continue to deliver on our strategy focused on excellent customer service and strong operational performance which translate into profitable growth and increased dividend distributions to our shareholders. Our vision of being a leader in sustainable transport solutions to the global auto industry stands firm as we go into 2024 with a near record revenue backlog supporting long-term earnings visibility and attractive quarterly dividends," said Georg A. Whist, the CEO of GCC.

Fourth quarter 2023 operating revenue of USD 56.4 million reflected improved average time charter rates for the Distribution and Panamax segments compared to the prior quarter. Vessel operating expenses amounted to USD 12.1 million. Administrative expenses were USD 2.8 million and included non-cash expenses of USD 1.2 million relating to long-term employee incentive programs.

EBITDA was USD 41.7 million, an increase from USD 40.5 million in the third quarter of 2023. EBIT was USD 46.4 million and included a USD 13.1 million gain from the sale of the distribution vessel Viking Constanza. Net financial expenses of USD 8.5 million reflected mainly interest expense on vessel loans and leases, as well as USD 1.5 million in non-recurring costs in connection with the repurchase of the Viking Bravery in December 2023. Net profit for the quarter was USD 37.8 million, equal to earnings of USD 1.31 per share.

The Mid-Size and Panamax vessels delivered strong operational performance with 100% utilisation during the quarter. The utilisation for the Distribution vessels reflects the lead-time from redelivery from charterers to delivery to the new owner for the two sold vessels, the Viking Constanza and the Viking Princess.

The Hoegh Caribia commenced planned repairs at year-end. While in dry-dock, it will also undergo its special periodic survey before returning to operations in early February. The estimated net financial impact is approximately USD 1.5 million after insurance, reflecting off-hire and incident related costs.

On, 21 December, GCC notified charterers that its vessels are restricted from passing through the Red Sea for the time being as the Norwegian Maritime Authority raised the security level in the southern part of the Red Sea to the highest level. GCC monitors the situation closely and will review and update this policy when appropriate based on recommendations from relevant authorities.

The average fleet TCE was USD 32,300 per day in the fourth quarter, an increase from USD 31,370 in the third quarter of 2023. The higher TCE was mainly a function of higher dayrates for the Panamax vessels with the Viking Bravery having its first full quarter on the new charter with higher earnings.  The Viking Queen, which was fixed on a new charter at the end of September, is expected to impact positively on earnings from February 2024.The Company estimates an average cash flow breakeven rate of USD 17,720 per day per vessel going forward, up from USD 16,950 in the previous quarter. The increase reflects the impact of general inflation on operating expenses. 

On 6 February, the Company announced the sale of the Mid-size vessel Viking Amber (4,200 CEU, built 2010), for a total cash consideration of USD 64.6 million. GCC expects to recognise a net book gain of USD 36.6 million upon completion of the sale in the second quarter of 2024. The transaction is in line with GCC's strategy of creating additional value in a strong car shipping market with historically high charter rates and asset values. The sale frees up capital to strengthen the balance sheet and support quarterly dividend distributions.

GCC has built a significant revenue backlog providing good visibility on future cash flow. Effective from the second quarter of 2023, the Company's dividend pay-out ratio was increased from 50% to 75% of net profit.

The Board of Directors has approved a cash dividend of USD 0.979 per share for the fourth quarter of 2023, in line with policy. This represents the eight consecutive quarterly distribution from the Company to shareholders. The distribution shall constitute a repayment of the Company's paid in capital. In November, GCC paid a dividend of USD 0.645 per share for the third quarter of 2023.

For the full year 2023, the total dividend distribution will amount to USD 2.318 per share, compared to USD 0.408 per share distributed in total for 2022.

Presentation

The company will today at 10:00 CET hold a presentation hosted by Georg A. Whist, the CEO of GCC, and Gunnar S. Koløen, the CFO. The presentation will be held in English and conducted as a webcast with a live Q&A session at the end.

Use the following link to register for the presentation:

https://invitepeople.com/events/ae01989277

Questions may be submitted online during the presentation.

The third quarter report and presentation are attached to this release and is available on the company's website. A recording of the presentation will also be made available.  

For further information, please contact:

CEO Georg A. Whist

E-mail: georg.whist@gramcar.com

CFO Gunnar S. Koløen

E-mail: gunnar.koloen@gramcar.com

Head of Projects and IR Mas Gram

E-mail: ir@gramcar.com

About Gram Car Carriers:

GCC is the world's third-largest tonnage provider within the Pure Car Truck Carriers (PCTCs) segment with 18 owned vessels, across the Distribution, Mid-size and Panamax segments. The Company serves as a trusted provider of high-quality vessels and logistics solutions ensuring safe, efficient and punctual shipment of vehicles for a network of clients comprising of major global and regional PCTC operators. To lean more, please visit gramcar.com.

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.