VictoryShares International Free Cash Flow Growth ETF

Thank you for standing by, ladies and gentlemen, and welcome to Grinrod Shipping Holdings Limited second quarter 2022 financial results call. We have with us Mr. Steven Griffiths, interim chief executive officer, and Mr. Carl Ackerley, chief operating officer of the company. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question and answer session, at which time, if you wish to ask a question, please press star 1 on your telephone keypad and wait for the confirmation tone indicating your line is in the queue. I must advise you that this conference is being recorded today. I will now pass the call over to one of your speakers. Mr. Griffith, please go ahead.

Thank you, operator. Welcome, everyone, and thanks for joining our call today on the second quarter and first half 2022 financial results. Let me please refer you to slide two with the forward-looking statement disclaimer. On this call, we will make certain forward-looking statements, including statements regarding our future financial and operating performance. These statements include information regarding future time-charter contracts, outlooks for the dry-bulk market, and other operating matters. These statements are based on the beliefs and expectations of management as of today. Now, actual results may differ materially from our expectations. Investors should carefully read the risks and uncertainties described in slide two of this presentation and in yesterday's press release, as well as the risk factors included in our annual report and our other filings with the SEC. We assume no obligation to revise or update our forward-looking statements, whether because of new information, future events, or otherwise, except as required by law. In addition, during this call, we will be discussing certain non-GAAP financial measures. Additional disclosures relating to these non-GAAP financial measures, including reconciliation to the most directly comparable GAAP measures, you see yesterday's press release and pages 23 to 25 of the slide deck, which was posted on our website and our filings with the SEC. Please turn to slide four for an overview of our second quarter and first half 2022 financial results. Grinrod Shipping reported another record quarterly performance with a strong second quarter of 2022, reflecting the resilient markets in our Handy Size and Supermax Ultramax driver carrier segments. For the second quarter of 2022, our gross profit, adjusted EBITDA and adjusted net income increased materially year over year, achieving $64.6 million, $73.9 million, and $53.3 million, or $2.81 per ordinary share, respectively. For the first half of 2022, our gross profit, adjusted EBITDA, and adjusted net income increased to $105.3 million, $124.1 million, and $83.1 million, or $4.42 per ordinary share, respectively. As of June 30, 2022, we had cash in equivalent of $160 million and restricted cash of $9.7 million, an increase from December 2021 due to our strong results. I will go into more detail on our financials later in the presentation. Please now turn to slide five to look at our operational highlights and recent developments. On June the 1st, 2022, we sold a 2016 bulk medium-range product tanker, the Matupu, for a gross price of $30 million. This was the last tanker in our fleet, and the sale represented an opportune moment to complete our exit from the product tanker sector as asset prices strengthened in this sector. On May the 10th, 2022, we exercised the purchase option on the chartered-in 2015-built Supermax bulk carrier, the RVS Tarnherd, for an amount of $18 million, with delivery to us on July the 25th, 2022. The vessel remained chartered-in at the original contract rate until delivered to us. The overnight shipping has four remaining purchase options which you will find on slide 22 of this presentation and which provides information on our long-term chartering vessels and associated purchase options. On May the 12th, 2022, we agreed to extend the long-term charter on the 2014 built Supermax bulk carrier, the RDS Crimson Creek, for a period of 11 to 13 months at a charter rate of $26,276 per day commencing May the 1st, 2022. On August the 17th, 2022, our Board of Directors declared an interim quarterly cash dividend of 84 cents per ordinary share, payable on or about September the 19th, 2022, to all shareholders of record as of September the 9th, 2022. The dividend is our highest to date since we initiated our policy in Q3 of last year, and we are pleased to continue returning material capital to our shareholders in these robust markets. Now we'll go over to the financial highlights and performance for the second quarter and third half of 2022. Turning to slide seven. In the second quarter of 2022, revenue increased to $161.6 million compared to $108.4 million sorry, $109.8 million for the same period, 2021. Revenue increased due to improved market conditions in the barbell business, which was slightly offset by a reduction in short-term operating days and the sale of the medium-range product tanker, Matuku, in the second quarter of 2022, compared to no shift sales and continuing operations for the same period in 2021. Gross profit increased to $64.6 million in the second quarter of 2022 compared to $35.6 million for the time period in 2021. Net profit attributable to owners of the company increased to $56.8 million or $2.99 per ordinary share in the second quarter of 2022 from $22.8 million or $1.08 18 cents to ordinary share in the second quarter of 2021. For the first half of 2022, revenue increased to $271.9 million compared to $178.3 million for the same period, 2021. First profit increased to $105.3 million in the first half of 2022 compared to $48.2 million for the same period, 2021. Net profit attributable to owners of the company increased to $85.8 million or $4.56 per ordinary share in the first half of 2022 from $25 million or $1.30 per ordinary share in the first half of 2021. Turning to slide A. We have placed a priority on building a strong balance sheet and have maintained a healthy cash position while repaying $50 million of our debt in the second quarter of 2022, partly as a result of the sale of Matuku and its associated finance lease. This strategy has significantly reduced our net debt to $39.6 million while leaving us well-positioned to pursue our growth and capital return strategies. On slide 9, we provide our bank loans and other borrowings repayment profile at June 30, 2022. We continue to have limited debt maturities until 2025, which combined with a conservative amortization profile provides us with balance sheet flexibility going forward. Overall, we maintain low leverage. And this is even lower when you take into consideration the market value of our fleet. which is comprised mainly of modern Japanese-built ETO vessels.

Let's turn to slide 10.