Gearbulk Integrated Report 2023 - Report - Page 84
GEARBULK
FINANCIAL CAPITAL
YEAR
IN REVIEW
Continuing our re昀椀nancing e昀昀orts
Maintaining our liquidity ratio
Shipping represents a unique asset class, and our aim is to
The Group diligently maintains its liquidity ratio through
secure 昀椀nancing for its balance sheet from lenders well-versed
proactive cash management strategies, which include
in the industry’s risk pro昀椀le. As part of our re昀椀nancing endeav-
managing cash reserves, short-term money market deposits,
ours in 2023, we engaged with numerous maritime lenders,
and accessible lines of credit. The working capital require-
both existing and prospective. We successfully broadened our
ments of the Group are deemed reasonable and foreseeable.
lending consortium, adding 昀椀ve new institutions to bring the
To manage liquidity risks e昀昀ectively, the Group consistently
total to eight. A primary objective of this 昀椀nancing initiative
forecasts its short, medium, and long-term liquidity needs and
was to extend the maturity of debt obligations, a goal that
implements appropriate strategies and safeguards. While the
has largely been realised.
volatility in vessel values can be substantial and less predictable, the Group believes that it can navigate any potential
deterioration in loan-to-value ratios without encountering
unforeseen consequences, thanks to the 昀氀exibility inherent
Maturing Balloons
in its available lines of credit.
160
140
Sustainability linked 昀椀nancing
millions
120
In 2022, the Company saw its inaugural Sustainability Linked
100
Loan facility. This arrangement links the loan’s pricing, or
80
margin, to the company’s performance against speci昀椀c Key
60
Performance Indicators (KPIs). These KPIs primarily revolve
40
around emissions (AER) and the frequency of total recordable
20
injury cases excluding 昀椀rst aid incidents (TRCF). A second
0
sustainability linked loan was entered into in 2023. By aligning
2024
2025
2026
2027
2028
2029
2030
our 昀椀nancing structure with sustainability objectives, we reinforce our commitment to driving improvements in these
critical areas. At the time of writing only unaudited KPI 昀椀gures
for 2023 are available. Based on these Gearbulk will meet its
AER targets but miss its TRCF target.
Delivering on our equity ratio
Ensuring the delivery of equity ratio for a bulk shipping
company is paramount to maintaining 昀椀nancial stability and
facilitating growth opportunities. By e昀昀ectively managing
equity ratios, the company can optimise its capital structure
and balance sheet, thereby enhancing its ability to weather
economic 昀氀uctuations and seize strategic opportunities.
Through prudent 昀椀nancial management practices and strategic decision-making, the company aims to achieve and
maintain optimal equity ratios that align with its long-term
goals and objectives. By maintaining a healthy equity ratio, the
company can instil con昀椀dence in investors, lenders, and stakeholders, demonstrating its commitment to sound 昀椀nancial
stewardship and sustainable growth in the maritime industry.
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PART 4 – HOW WE CREATE VALUE
