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Paragon Shipping Q2 net loss $72.9 million

Staff writer |
Paragon Shipping announced its results for the second quarter and six months ended June 30, 2015. Gross charter revenue was $9.9 million, compared to $14.7 million for the second quarter of 2014.




The company reported a net loss of $72.9 million, or $2.93 per basic and diluted share, for the second quarter of 2015, calculated based on a weighted average number of basic and diluted shares outstanding for the period of 24,460,642 and reflecting the impact of the non-cash items discussed below.

For the second quarter of 2014, the company reported a net loss of $9.7 million, or $0.39 per basic and diluted share, calculated based on a weighted average number of basic and diluted shares of 24,281,164.

Excluding all non-cash items described below, the adjusted net loss for the second quarter of 2015 was $8.1 million, or $0.32 per basic and diluted share, compared to adjusted net loss of $5.6 million, or $0.23 per basic and diluted share, for the second quarter of 2014.

Adjusted EBITDA, excluding all non-cash items described below, was negative $0.6 million for the second quarter of 2015, compared to positive $0.9 million for the second quarter of 2014.

The company operated an average of 16 vessels during the second quarter of 2015, earning an average TCE rate of $5,494 per day, compared to an average of 14 vessels during the second quarter of 2014, earning an average TCE rate of $7,870 per day.

Adjusted total vessel operating expenses, which included vessel operating expenses, management fees and general and administrative expenses, and excluded share-based compensation, were $8.4 million for the second quarter of 2015, compared to $8.1 million for the second quarter of 2014.

On a daily basis, adjusted total vessel operating expenses for the second quarter of 2015 were approximately $5,781 per vessel per day, or 9.5% lower than the adjusted total vessel operating expenses of $6,388 per vessel per day for the second quarter of 2014.

The reduction in the average daily adjusted total vessel operating expenses is the result of the company’s cost control efficiency and the economies of scale of having a larger fleet, as well as of a favorable impact of the Euro / U.S. dollar exchange rate fluctuations.

The loss related to assets held for sale of $47.6 million for the three months ended June 30, 2015, mainly relates to the write down to fair value of the M/V Dream Seas, the M/V Gentle Seas, the M/V Peaceful Seas and the M/V Friendly Seas, following their classification as assets held for sale as of June 30, 2015.


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