Concordia Maritime - Entering discussions with banks and Stena
Stronger than expected Q2’21 bookings Liquidity of SEK 233m ~SEK 284m in cash commitments remaining in 2021e Stronger than expected Q2’21 bookings Q1’21 EBITDA was SEK -46m vs. ABGSCe at SEK -4m, primarily due to higher than expected opex, while rates remained below CBE levels. For Q2’21, 44% of product tanker open days are booked at USD 15. 4kpd vs.
our initial estimate of USD 10kpd; this represents a substantial market outperformance, as MR rates have averaged ~USD 7kpd QTD. As such, we raise our estimate for product tankers to USD 15kpd. For the Suezmaxes, 40% of open days were booked at USD 14.
6kpd, which is slightly above our estimate of USD 14kpd, and we therefore increase our rate estimate to USD 15kpd. These revisions raise our Q2’21e EBITDA to SEK 32m (SEK 7m), while the rest of the year remains predominantly unchanged when accounting for the Q1 miss. Liquidity down to SEK 233m Available liquidity declined from SEK 399m to SEK 233m during the quarter.
The end-Q1'21 cash balance was SEK 45m after drawing ~SEK 55m on the BWTS facility provided by its main shareholder. During the quarter, CCOR asked banks for covenant waivers through Q2'21, and initiated discussions with banks and its main shareholder, Stena, to strengthen its financial position and liquidity. In connection with the waiver, one of the credit lines has been withdrawn, leaving undrawn funds at ~SEK 178m.
End-Q1'21 book value per share was SEK 16 (down from SEK 23 at end-2020) and the equity ratio declined to 25% (29%). At book values, LTV is ~71% and the current market cap is ~SEK 410m. ~SEK 284m in cash commitments remaining in 2021e Q1'21 operational cash flow was SEK 20m, mainly due to a positive WC swing.
During Q1'21, the company spent SEK 99m on debt service (interest and amortisation) and SEK 74m on three dry-dockings. Two more dry-dockings are left in 2021. According to the annual report, scheduled debt amortisation for the remainder of 2021 is ~SEK 176m and ~SEK 300m in 2022.
