TOP Ships (US:TOPS)2021-09-09 12:31Fleet and Operations - As of June 30, 2021, the fleet consisted of four 50,000 dwt product/chemical tankers and four 159,000 dwt Suezmax tankers, with newbuilding contracts for a scrubber-fitted 157,000 dwt Suezmax tanker and two 300,000 dwt tankers [21]. - The fleet includes 50% interests in two additional 50,000 dwt product/chemical tankers [21]. - The company has established a reputation for operating vessels with high standards of performance, reliability, and safety [23]. - The company purchased an additional 65% ownership interest in two VLCC companies for $29.8 million, becoming a 100% owner [44]. - The company has a time charter for the M/T Eco Oceano Ca at a gross daily rate of $32,450 for five years, with options to extend [87]. - The company transferred $126,646 from advances for vessels under construction to vessels, net, reflecting the delivery of new vessels [96]. Financial Performance - For the six months ended June 30, 2021, revenues decreased by $7.3 million, or 22%, to $25.3 million compared to $32.6 million in the same period of 2020 [36]. - Net income for the six months ended June 30, 2021, was $1.7 million, a significant improvement of $4.6 million compared to a net loss of $2.9 million in the same period of 2020, representing a 159% increase [36]. - Adjusted EBITDA for the six months ended June 30, 2021, was $14.3 million, slightly down from $14.4 million in the same period of 2020 [33]. - The company reported operating income of $4,256 thousand for the six months ended June 30, 2021, down from $8,335 thousand in the same period of 2020, a decrease of 48.9% [68]. - For the six months ended June 30, 2021, total management fees charged by CSI amounted to $99, compared to $31 in the same period of 2020, reflecting a significant increase of 219% [101]. - The company reported a net cash used in investing activities of $90,830,000 for the six months ended June 30, 2021 [73]. Impact of COVID-19 - The ongoing COVID-19 pandemic has led to low charter rates, particularly for vessels on short-term charters, and has negatively impacted global economic activity and trade patterns [24]. - The tanker charter rates have been significantly reduced as a result of COVID-19, leading to increased volatility in the tanker industry [28]. - The company experienced increased off-hire days and a slight increase in operating expenses due to crew rotation disruptions caused by COVID-19 measures [25]. - The company faces significant risks to personnel and operations due to the COVID-19 pandemic, impacting crew safety and operational efficiency [24]. - The company experienced a revenue reduction of approximately $344 due to COVID-19 related delays, resulting in increased off-hire days [84]. - The financial results may be adversely affected by the ongoing outbreak of COVID-19 and related governmental responses [24]. Debt and Liabilities - The company had total indebtedness of $178.2 million as of June 30, 2021, with cash and cash equivalents amounting to $12.4 million [52]. - Current liabilities surged from $25,414 thousand as of December 31, 2020, to $53,058 thousand as of June 30, 2021, an increase of 108.5% [65]. - Non-current liabilities rose from $133,400 thousand to $174,850 thousand, marking an increase of 31% [65]. - The total long-term debt increased from $106.999 million as of December 31, 2020, to $158.558 million as of June 30, 2021, representing a growth of 48% [112]. - The company has remaining contractual commitments totaling $217,293, with $44,500 due from July 1 to December 31, 2021, and $172,793 from January 1 to March 31, 2022 [93]. - The company expects to finance its unfinanced contractual commitments through operational cash flow, proceeds from vessel sales, or a combination of debt and equity issuances [54]. Equity and Shareholder Information - The weighted average common shares outstanding increased significantly from 7,302,633 to 39,831,972 shares, reflecting a substantial dilution [68]. - Total stockholders' equity decreased from $120,701 thousand to $111,658 thousand, a decline of 7.5% [66]. - The Company declared a dividend of $915 thousand for the period from January 1, 2021, to June 30, 2021 [102]. - No dividends were paid to common stockholders in the six months ended June 30, 2020 and 2021 [126]. Asset Management - Total assets increased from $293,032 thousand as of December 31, 2020, to $353,083 thousand as of June 30, 2021, representing a growth of 20.5% [65]. - Cash and cash equivalents decreased from $19,328 thousand to $8,393 thousand, a decline of 56.6% [65]. - The company recognized impairment on vessels amounting to $1,160 thousand for the six months ended June 30, 2021 [68]. - The carrying value of net assets of companies acquired was $3,131,000 as of June 30, 2021 [73]. - The company recorded an impairment charge of $1,160 for a vessel held for sale, with a fair value of $25,887 as of June 30, 2021 [137]. Future Projections and Commitments - Future minimum operating lease payments total $45.216 million, with $6.097 million due in 2021 and $12.084 million in 2022 [103]. - Future minimum time-charter receipts from vessels in operation as of June 30, 2021, are projected to be $120.438 million [107]. - The company has remaining contractual commitments for fleet acquisitions totaling $57.143 million, with $6.016 million payable in the last six months of 2021 [123]. - A financing commitment of $107,709 was received for the newbuilding vessels, with repayments structured in 32 quarterly installments of $673 [144].