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2014-05-20

Eitzen Chemical ASA: 1st Quarter 2014 results

Eitzen Chemical ASA (OSE: ECHEM)
reported an average time-charter rate of USD 10,728 per day in the 1stquarter,
which represents a decrease of 8.3 per cent from the previous quarter (Q4'14:
USD 11,701 per day). The EBITDA for the 1stquarter was USD 7.0 million,
compared to USD 9.4 million in the 4th quarter of 2013 (Q1'13: USD 10.5
million).

Report highlights:

* A majority of Eitzen Chemical's senior debt traded in the 1stquarter of
2014. Eitzen Chemical is currently in a constructive dialogue with the new
holders of the senior debt to explore alternatives in order to strengthen
the balance sheet so the Company again can invest and add to its asset base
and market presence. Eitzen Chemical is of the opinion that with a stronger
balance sheet, the Company can create more value over time for all present
stakeholders. Eitzen Chemical is still significantly overleveraged with a
negative book equity value of USD 132.6 million.
* The 1stquarter earnings were heavily impacted by storms and bad weather
resulting in significant delays and increased fuel consumption. The Company
also experienced slower activity and lower earnings than estimated, and
thus reported an average time charter equivalent rate (TCE) for the fleet
of USD 10,728 per day. The average TCE decreased by 8.3 per cent compared
to the TCE of USD 11,701 per day in the 4thquarter of 2013, and a decrease
of 4.1 per cent compared to the TCE of USD 11,189 per day for the
1stquarter of 2013.
* Eitzen Chemical reported EBITDA of USD 7.0 million for the 1stquarter of
2014, compared to USD 9.4 million in the 4thquarter of 2013, and USD 10.5
million in the 1stquarter of 2013.
* In the 1stquarter of 2014 the Company completed a sale and leaseback of the
North Contender (19,925 dwt, built 2005). Eitzen Chemical also exercised
the purchase option for the North Fighter (19,932 dwt, built 2006) and
agreed definitive transaction terms pertaining to the sale and leaseback of
the vessel. The sale of the North Fighter remains conditional upon
execution of routine closing, which is scheduled to be completed by the end
of the 2ndquarter of 2014. The aggregate sale price for both vessels is USD
44 million, and Eitzen Chemical has leased back both vessels, each for a
five year bareboat charter period. The sale of the vessels includes
seller's credit to the buyer for a portion of the aggregate purchase price,
as well as a repurchase option for each of the vessels by Eitzen Chemical
at a predetermined price after a minimum two-year charter hold period. The
completion of the North Contender transaction resulted in a book gain of
USD 3.1 million, which has been deferred and will be amortized over the
expected lease term. The vessels will continue to be classified as
financial leases.
* In February Eitzen Chemical took delivery of the UACC Messila (45,335 dwt,
built 2012) which is chartered in on a one year time charter, and in March
the Company took delivery of the Chem Orion (10,306 dwt, built 1998) which
is chartered in on a six month time charter with two optional extension
periods of six months.
* Eitzen Chemical expects the TCE rate in the 2ndquarter to be about the same
level as the 1stquarter of 2014.

The 1stquarter 2014 financial report is attached.

For further information, please contact:

Jens Grønning
President and CEO
Phone: +45 3997 0310

Andreas Reklev
Chief Financial Officer
Phone: +47 9320 8886
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Q1 2014 Report
http://hugin.info/137124/R/1786983/613415.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Eitzen Chemical ASA via Globenewswire

HUG#1786983

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