Gearbulk Integrated Report 2023 - Report - Page 78
GEARBULK
OUR CHIEF FINANCIAL OFFICER REVIEW
SATISFACTORY
FINANCIAL PERFORMANCE
CFO Review 2023
The Group returned to more conventional levels of 昀椀nancial
performance in 2023, after receding from the exuberant
year of 2022. Freight markets in our segment held up well
during the 昀椀rst half of 2023, while economic uncertainty and
geo-political risks have had an adverse impact on the second
de-leverage its position by reducing the total interest-bearing
debt by $232m. Whilst we continue to remain cautious about
the outlook, our strategic focus remains on developing and
expanding our 昀氀eet. In this context, Gearbulk initiated negotiations with the intention to purchase four newbuild vessels
for delivery in 2027.
half of the year. G2 Ocean still delivered their second-best
ever trade result since commencing operations in 2017, and
Regarding our corporate structure, 2023 marked the optimisa-
our project vessels also contributed positively. Other activities
tion of our entity-level organisation to handle more e昀케ciently
more exposed to market 昀氀uctuations adjusted down their
the Open Hatch business and all the other activities under a
performance earlier, while business that is largely contracted
dedicated structure, facilitating 昀椀nancial and administrative
sustained better performances throughout the whole year.
decisions. This process was largely implemented during 2023
by the introduction of a sub-holding encompassing our inter-
The re昀椀nancing e昀昀orts initiated in 2022 came to fruition
ests in all joint ventures outside the G2 Ocean environment.
during 2023, with the delivery of 13 vessels acquired through
purchase options, for a combined $290m. Furthermore, the
Financial performance & position
Group acquired six second-hand vessels totaling $104m
The EBITDA of the Group reached $164m in 2023, primarily
during 2023; and 昀椀nalised its exit from the conventional bulk
re昀氀ecting the softening of the shipping markets, down from
segment with the sale of the last remaining bulk vessel for
the exceptional level of $384m obtained in 2022. The Group
$27m. Kumul Arrow, a vessel that has been in the Group for
achieved a net pro昀椀t of $67m in 2023, down from $292m
38 years, was recycled in 2023 for $6m.
in 2022. After completion of the re昀椀nancing exercise, the
Company ended the year with $114m in cash (2022: $313m),
With the various re昀椀nancings concluding in 2023, approx-
while reporting a total equity of $490m (2022: $474m) and
imately $300m has been raised through a combination of
an equity ratio of 34.6% (2022: 28.9%).
bank 昀椀nance and lease 昀椀nance, the Company still managing to
Summary Audited Income Statement
2022
2023
$m
Summary Audited Balance Sheet
2022
2023
$m
Total revenues
$ 618
$ 393
Current Assets
$ 382
$ 155
Operating expenses
(278)
(272)
PPE & RoU assets
1,067
1,065
Income from operations
340
121
A昀케liates & other assets
189
198
Non-operating expenses
(61)
(57)
Total Assets
1,638
1,418
13
3
Current liabilities
(348)
(224)
Net Income
292
67
Non-current liabilities
(816)
(705)
EBITDA
384
164
(1,164)
(929)
Total Equity
474
490
Equity ratio
28.9%
34.6%
Other
78
PART 3 – OUR STRATEGIC RESPONSE
Total liabilities
