Rickmers Maritime

Rickmers Maritime: 1Q13 charter revenues almost flat, losing 1% y/y to US$35.5m as earnings increased 30% to $10.7m. The increase in earnings were mainly due to lower bunker expenses for a vessel's repositioning that did not occur this quarter, as well as lower finance expenses resulting from reduced loan balances. On the outlook for 2013, with containership capacity growth expected to grow in-line with global trade growth at 6.1% and as the risk to global economic growth from the uncertainty within the Eurozone still exists, time charter rates and vessel values are not expected to increase materially. Having said that, the mgmt expects charter rates to gradually improve in 2014 onwards. Rickmers announced DPU of US0.6¢, unchanged from 1Q12. Concurrently, the Trust has achieved approval on its 1:1 non-underwritten renounceable rights issue, issuing up to 423.7m new units. Proceeds from the rights issue will be used for the repayment of bank loans, which will lower pro forma gearing from 59.3% to 51.8%.