Interim results for the six months ended 30 June 2006

Transcription

1 Goldenport Holdings Inc. Athens, 3 rd September 2006 Interim results for the six months ended 30 June 2006 Goldenport Holdings Inc. ("Goldenport" or "the Company"), an international shipping company that owns and operates a fleet of dry bulk and container vessels, today announces interim results for the six months ended June 30. Financial Highlights: Revenue of US$ 39.8m (2005: US$ 42.5m) Net income of US$ 21.7m (2005: US$ 22.6m). Interim dividend of 5.6 pence per share ( 3.9m) announced The 6.3% fall in revenue from the same period in 2005 was against a backdrop of significantly falling markets, with the dry bulk and container markets having declined by 39% and 35% respectively. The Company s exposure to this weakening market has been minimised by its proactive time charter strategy Confident in the prospects for the full year Operational Highlights: Our proactive chartering policy has enabled us to weather the weaker dry bulk market of the first part of 2006 and take advantage of the subsequent strengthening of rates The chartering of the bulk carrier fleet in the second half of the year is expected to outperform the weak first half, bringing balance to the full year results in terms of organic growth Two new vessels acquired since the IPO, Bengal Sea and Vasos, will both start contributing to earnings in the second half of the year The acquisition of the fire damaged container vessel Fortune is an innovative project with a potential high return CEO Statement: Commenting on these results, Captain Paris Dragnis, Founder and Chief Executive Officer of the Company stated: Our forward looking model of employing our vessels on time charters has allowed us to maintain profitability broadly at the same levels as 2005, despite the significant decline during the first half of the year in our markets. We are now well placed to take advantage of strong rates in the second part of the year. The recovery in the dry bulk market, combined with our long-standing and extensive relationships with top tier charter counterparties and our enhanced fleet are already enabling us to take on first class charters at rates significantly improved from those prevailing during the first part of the year. We are therefore confident in the prospects for the Company for the full year. Consistent with the strategy outlined in our Initial Public Offering in April 2006 we have begun to increase the size of our fleet, with the addition of two large container vessels and one cape size bulk carrier, thus improving the mix and the age of the fleet. The vessels Bengal Sea and Vasos (ex Orient Alliance ) will contribute to results in the second part of the year. We continue to evaluate and consider a number of opportunities to enhance our fleet.

2 Enquiries: Goldenport: Christos Varsos, Chief Financial Officer: Today Thereafter John Dragnis, Commercial Manager Today Thereafter Smithfield: John Kiely / Will Swan: +44 (0) Overview of Goldenport: Goldenport is an international shipping company that owns and operates a fleet of dry bulk and container vessels that transport cargo worldwide. The fleet consists of ten dry bulk carriers and ten container vessels. Goldenport is listed on the London Stock Exchange under the ticker GPRT. Goldenport's strategy: Goldenport's primary objective is to manage its fleet in a manner that allows it to maximise returns for shareholders and maintain profitability across the shipping cycle. To accomplish this objective, Goldenport has identified the following strategies, which build upon its existing strengths: Employment of vessels in a manner that provides stable cash flows Effective management of the size and nature of the fleet with a view to expansion of the company Maintain exposure to both the dry bulk and container sectors Attraction and retention of blue-chip customers Capitalise on established reputation Maintenance of a strong balance sheet with low leverage Operational Review: Current market conditions: The dry bulk market in the first six months of 2006 declined on average by 39% compared to the same period in 2005 (source: Baltic Dry Index). However, the effect of this decline on the Company s results was mitigated by our charter policy, which has fixed approximately half of our dry bulk fleet for most of the period at previously prevailing higher rates. The remainder of the bulk carrier fleet was employed on short term time charters, in order to maintain some flexibility and avoid being locked into long periods at low rates. This has allowed the Company to take advantage of the recovering market since June, by contracting charters for longer periods at increasingly attractive rates. Examples of this strategy include the vessels Gianni D and Limnos. From March to September 2006 Gianni D was chartered for US $ 16,500 per day but has been now fixed for US $ 26,000 per day until late November 2007 (in 2004 the vessel was fixed for US $ 17,800 per day). Limnos was chartered at US $ 13,500 per day until June 2006 and is now fixed at US $ 19,200 until December The container market in the first six months of 2006 declined on average by 35% compared to the same period in 2005 (source: Howe Robinson Containers Index); again this did not affect the results of the Company as the entire container fleet had previously been fixed long-term, with some contracts extending out to 2009.

3 Fleet expansion: Three new vessels have been added to the fleet following the Initial Public Offering in April this year. The 3,007 TEU container vessel Bengal Sea and the cape size bulk carrier Vasos (ex. Orient Alliance ) were acquired, backed by initial time charter contracts. These contracts ensure that Goldenport s investment exposure at the end of the initial time charters for each vessel is limited to the scrap value or levels acceptable under the Company s investment criteria. The acquisition of the 5,551 TEU fire-damaged container vessel Fortune acquired on June 16 th, is an innovative project with high potential return for the Company. The vessel is expected to be ready for operation in early 2008, and, on completion of the repairs, will constitute a low cost addition to the fleet relative to market prices. The vessel will not have impact in the results of the Company, until it becomes operational. Interim dividend: The Company has today declared an interim dividend of 5.6 pence per share, (making an interim payout of 3.9 million). The dividend will be payable on October 4 th, 2006 to shareholders of record as of 15 September The translation of the dividend payment from US $ to British Sterling is based on the prevailing rate between the two currencies as of September 1 st, 2006, which was US $ per. Summary of Selected Financial and Operating Data: INCOME STATEMENT DATA (in US$ thousand): 6 months ended 30 June June 2005 Revenue 39,810 42,507 EBITDA 25,139 27,593 EBIT 19,956 23,331 Net Income 21,732 22,612 FLEET DATA: Average number of vessels Number of vessels at end of period Number of vessels in operation at end of period Ownership days 3,082 * 3,077 Available days 2,967 3,062 Operating days 2,882 3,059 Fleet utilisation 97.1% 99.9% AVERAGE DAILY RESULTS (in US$): Time Charter Equivalent (TCE) rate 12,596 12,923 Average daily vessel operating expenses 3,305 * 3,387 *: Ownership days and average daily vessel operating expenses exclude the vessel Fortune which was not operating within the period See Appendices, for Notes on the Summary of Selected Financial and Operating Data and for full Fleet Employment profile.

4 Time and Voyage Charter Revenues: Revenues decreased by US$ 2.7 million or 6.3% to US$ 39.8 million for the six months ended 30 June 2006 (2005: US$ 42.5 million). The main reasons for this decrease were: (i) the difference in available days between the two periods (2006: 2,967 days; 2005: 3,062 days), mainly due to the fact that in 2006 four vessels underwent their scheduled dry-docking,compared to none in 2005; (ii) a softening in the market which saw a decline in time charter rates achieved, especially for bulk carriers. This decline was particularly relevant for the vessels Limnos and Lindos which were employed under short-term charters during the first six months of 2006 at an average rate of US$ 16,000 and US$ 13,250 per day respectively (2005: US$ 24,000 and US$ 22,000 per day respectively) and (iii) taking advantage of the dry-docking of the vessel MSC Emirates, the Company did additional work on the vessel which affected the operating days and the utilisation rate.. Voyage expenses: The voyage expenses decreased by US$ 0.5 million or 21% to US$ 1.6 million for the six months ended 30 June 2006 (2005: US$ 2.1 million) mainly due to lower commission rates and a decreased revenue figure to which those rates applied. Vessel operating expenses and general and administrative expenses: Vessel operating expenses decreased by US$ 0.2 million or 2.3% to US$ 10.2 million for the six months ended 30 June 2006 (2005: US$ 10.4 million). This decrease brings the expenses broadly at the same level with last year. General and administrative expenses increased by US$ 0.4 million reflecting incremental listing related expenses. Depreciation: The depreciation charge remained at the same levels for the period to 30 June 2006 as for Depreciation of dry-docking costs increased by US$ 0.9 million or 54% to US$ 2.6 million for the six months ended 30 June 2006 (2005: US$ 1.7 million) mainly due to the dry-docking of four vessels. In the second part of 2005 six vessels underwent dry-docking and the amortisation of this expense is affecting 2006 numbers. Financing costs: Interest expense increased by US$ 0.5 million or 32% to US$ 1.9 million for the six months ended 30 June 2006 (2005: US$ 1.4 million), mainly due to the increased principle amount from refinancing that took place at the end of the first half of Interest income increased significantly by US$ 1.2 million to US$ 1.3 million due to time deposits at higher rates on the cash generated from operations and the proceeds of the initial public offering.

5 GOLDENPORT HOLDINGS INC. Interim Condensed Consolidated Financial Information 30 June 2006

6 INDEPENDENT REVIEW REPORT To the Shareholders of Goldenport Holdings Inc. Introduction We have been instructed by Goldenport Holdings Inc. (the Company) to review the financial information for the six months ended 30 June 2006 which comprises the Interim Condensed Consolidated Income Statement, the Interim Condensed Consolidated Balance Sheet, the Interim Condensed Consolidated Statement of Changes in Equity, the Interim Condensed Consolidated Cash Flow Statement and the related notes. We have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information. Directors' responsibilities The interim report, including the financial information contained therein, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim report in accordance with the Listing Rules of the Financial Services Authority which require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A review consists principally of making enquiries of Group management and applying analytical procedures to the financial information and underlying financial data and based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with United Kingdom Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly, we do not express an audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 30 June Ernst & Young (Hellas) Certified Auditors Accountants S.A. 3 September 2006

7 INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2006 Notes 6 months Ended 30 June 2006 U.S.$ months Ended 30 June 2005 U.S.$ 000 Revenue 39,810 42,507 Expenses Voyage expenses 4 (1,642) (2,082) Voyage expense related party 4, 11 (796) (856) Vessel operating expenses 4 (10,185) (10,421) Management fees related party 11 (1,607) (1,530) Depreciation (2,597) (2,586) Depreciation of dry-docking costs (2,586) (1,676) General and administration expenses (441) (25) Profit from operations before finance costs 19,956 23,331 Interest expense 5 (1,920) (1,450) Interest income 1, Foreign currency gain, net 2, Profit for the period from operations 21,732 22,612 Profit for the period attributable to Goldenport Holdings Inc shareholders 21,732 22,612 Earnings per share (U.S.$): - Basic EPS for the period Diluted EPS for the period Average number of ordinary shares outstanding 55,059,668 41,800,000 The accompanying notes to the financial information form an integral part of the financial information.

8 INTERIM CONDENSED CONSOLIDATED BALANCE SHEET AT 30 JUNE 2006 Notes 30 June 2006 U.S.$ December 2005 U.S.$ 000 ASSETS Non-current assets Vessels 6 110,410 84,421 Vessels under construction 6 13,322 - Other non-current assets ,892 84,605 Current assets Inventories Trade receivables 1, Insurance claims 1, Due from related parties 11 3,705 9,860 Prepaid expenses and other assets Unpaid share capital Restricted Cash ,396 Cash and cash equivalents 68,721-76,318 13,035 TOTAL ASSETS 200,210 97,640 EQUITY AND LIABILITIES Equity attributable to Goldenport Holdings Inc shareholders Issued share capital Share premium 7 106,991 - Retained earnings 25,806 4,492 TOTAL EQUITY 133,496 4,910 Non-current liabilities Long-term debt 9 40,325 52,538 40,325 52,538 Current liabilities Trade payables 3,812 5,057 Current portion of long-term debt 9 16,305 23,150 Accrued liabilities and other payables 10 2,902 2,310 Deferred revenue 3,370 3,175 Dividends payable - 6,500 26,389 40,192 TOTAL LIABILITIES 66,714 92,730 TOTAL EQUITY AND LIABILITIES 200,210 97,640 The accompanying notes to the financial information form an integral part of the financial information.

9 INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2006 Number of shares Par value U.S.$ Issued share capital Share premium U.S.$ 000 Retained earnings Total Equity As of 31 December ,800, Profit for the period ,612 22,612 Dividends to equity shareholders (22,612) (22,612) As of 30 June ,800, Number of shares Par value U.S.$ Issued share capital Share premium U.S.$ 000 Retained earnings Total Equity As of 31 December ,800, ,492 4,910 Profit for the period ,732 21,732 Common stock settled by contribution of shares by initial shareholder (Note 7) (418) (418) Proceeds from initial public offering, net (Note 7) 28,085, , ,272 As of 30 June 2006 (unaudited) 69,885, ,991 25, ,496 The accompanying notes to the financial information form an integral part of the financial information.

10 INTERIM CONDENSED CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2006 Operating activities Notes 6 months ended 30 June 2006 U.S.$ months ended 30 June 2005 U.S.$ 000 Profit for the period 21,732 22,612 Adjustments for: Depreciation 2,597 2,586 Depreciation of dry-docking costs 2,586 1,676 Interest expense 1,920 1,450 Interest income (1,322) (127) Foreign currency gain (2,374) (604) Operating profit before working capital changes 25,139 27,593 Inventories Trade receivables, pre-paid expenses & other assets (1,076) 52 Insurance claims (901) 375 Trade payables, accrued liabilities & other payables (698) (1,555) Deferred revenue Net cash flows from operating activities before movement in amounts due from related parties 22,983 26,859 Due from related parties 6,155 (42,830) Net cash flows provided by / (used in) operating activities 29,138 (15,971) Investing activities Acquisition of vessels and vessel improvements (29,378) (16) Advances for vessel under reconstruction (13,322) - Dry-docking costs (1,794) - Interest received 1,256 - Net cash flows used in investing activities (43,238) (16) Financing activities Proceeds from issue of long - term debt 17,380 59,803 Repayment of long-term debt (36,530) (26,263) Share Capital Increase Proceeds from initial public offering 115,184 - Issuance costs (8,193) - Restricted cash Interest paid (1,884) (1,113) Dividends paid (6,500) (17,198) Net cash flows provided by financing activities 80,322 15,987 Net increase in cash and cash equivalents 66,222 - Exchange gains on cash and cash equivalents 2,499 - Cash and cash equivalents at beginning of period - - Cash and cash equivalents at end of period 3 68,721 - The accompanying notes to the financial information form an integral part of the financial information.

11 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTHS ENDED 30 JUNE Formation, Basis of Presentation and General Information Goldenport Holdings Inc. (Goldenport or the Company) was incorporated under the laws of Marshall Islands on 21 March On April 5, 2006 Goldenport Holdings Inc was admitted in the Official List and started trading on the London Stock exchange at a price of GBP2.35 per share. On 11 April the over allotment option was exercised and as a total the Company received GBP66 million (or U.S.$115.5 million) that were to be used to partially repay debt and to fund further fleet expansion (see also notes 6, 7 and 9). Goldenport Holdings Inc as of 30 June 2006 is the Holding company for nineteen (19) intermediate holding companies, each in turn owning a vessel - owning company, as listed in the table below. Hereinafter Goldenport Holdings and its subsidiaries will be referred to as the Group. The interim condensed consolidated financial information were authorised for issue in accordance with a resolution of the Board of Directors on 3 September It includes the financial information of the Company and the following wholly owned subsidiaries: Intermediate holding company Marta Trading Co. Daphne Marine Corp. Oates Trading Corp. Portia Navigation Co. Aloe Navigation Inc. Dumont International Inc. Royal Bay Marine Ltd Audrey Marine Corp. Sicuro Shipmanagement SA Platinum Shipholding SA Nemesis Maritime Inc. Meredith Trading Corporation Rawlins Trading Ltd Blaze Navigation Corp. Vessel owning company Superb Maritime Country of Incorporation of vesselowning company Name of Vessel owned by Subsidiary Year of acquisitionof vessel Type of Vessel S.A. Panama Glory D 1997 Container Dancing Waves Co. Ltd. Malta Tuas Express 1998 Container Risa Maritime Co. Ltd. Malta Vana 1999 Bulk Carrier Borealis Shipping Co. Ltd. Malta Msc Himalaya 1999 Container Karana Ocean Shipping Co. Ltd. Malta Alex D 1999 Bulk Carrier Black Rose Shipping Ltd. Malta Beauty 2001 Container Opal Maritime Limited Malta Achim 2001 Container Wild Orchid Shipping Ltd. Malta MSC Emirates 2001 Container Hampton Trading S.A. Liberia Msc Socotra 2002 Container Coral Sky Marine Ltd. Malta Gianni D 2002 Bulk Carrier Samos Maritime Ltd. Malta Samos 2002 Bulk Carrier Guilford Marine S.A. Panama Ios 2002 Bulk Carrier Fairland Trading S.A Panama Athos 2002 Bulk Carrier Nilwood Comp. Inc. Panama Howrah Bridge 2003 Container

12 1. Formation, Basis of Presentation and General Information (Continued) Intermediate holding company Carrier Maritime Co, Medina Trading Co. Savannah Marine Inc. Sirene Maritime Co Kariba Shipping SA Vessel owning company Black Diamond Shipping Country of Incorporation of vesselowning company Name of Vessel owned by Subsidiary Year of acquisitionof vessel Type of Vessel Ltd Malta Lindos 2003 Bulk Carrier Carina Maritime Co. Ltd Malta Tilos 2004 Bulk Carrier Serena Navigation Ltd. Malta Limnos 2004 Bulk Carrier Alvey Marine Inc Liberia Bengal Sea 2006 Container Kosmo Marshall Services Inc Islands Fortune 2006 Container 2. Summary of significant accounting policies: Basis of preparation The interim condensed consolidated financial information for the six months ended 30 June 2006 has been prepared in accordance with IAS 34 Interim Financial Reporting. The interim condensed consolidated financial information does not include all the information and disclosures required in the annual financial information, and should be read in conjunction with the Group s annual financial information as at 31 December Significant accounting policies The accounting policies adopted in the preparation of the interim condensed consolidated financial information is consistent with those followed in the preparation of the Group s annual financial information of the year ended 31 December 2005, except for the adoption of the following amendments mandatory for annual period beginning on or after 1 January 2006: IAS 39 Financial Instruments: Recognitions and Measurement Amendment for financial guarantee contracts- which amended the scope of IAS 39 to include financial guarantee contracts issued. The amendment addressed the treatment of financial guarantee contracts by the issuer. Under IAS39 as amended financial guarantee contracts are recognised initially at fair value and generally remeasured at the higher of the amount determined in accordance with IAS 37 Provisions, Contingents Liabilities and Contingent assets and the amount initially recognised less, when appropriate, cumulative amortisation recognised in accordance with IAS18 Revenue; Amendment for Hedges of forecast intragroup transactions- which amended IAS 39 to permit the foreign currency risk of a highly probable intragroup forecast transaction to qualify as the hedged item in a cash flow hedge, provided that the transaction is denominated in a currency other that the functional currency of the entity entering into that transaction and that the foreign currency risk will affect the financial information; Amendment for the fair value option-, which restricted the use of the option to designate any financial asset or financial liability to be measured at fair value through profit and loss; The adoption of these amendments did not affect the Group results of operations or financial position.

13 3. Cash and cash equivalents For the purpose of the interim condensed consolidated cash flow statement, cash and cash equivalents are comprise of the following: June 30, 2006 June 30, 2005 U.S.$ 000 Cash at bank 1,091 - Time deposits 67,630-68, Voyage & vessel operating expenses The amounts in the accompanying consolidated income statement are analysed as follows: Six months ended June 30, 2006 Six months ended June 30, 2005 Voyage expenses (1,642) (2,082) Voyage expenses related party (796) (856) (2,438) (2,938) Voyage expenses consist of: Port charges (26) (10) Bunkers (fuel costs)/income Commissions (2,578) (2,928) Total voyage expenses: (2,438) (2,938) Vessel Operating Expenses Crew wages & related costs (3,887) (3,360) Other crew expenses (119) (174) Deck stores (340) (377) Travelling (287) (208) Crew victualling (345) (393) Repairs & maintenance (202) (344) Spares (806) (1,032) Engine stores (300) (278) Lubricants (1,266) (1,066) Insurance (1,983) (1,958) Other operating expenses (436) (997) Taxes (other than income tax) (214) (234) Total vessel operating expenses: (10,185) (10,421)

14 5. Interest Expense The amounts in the accompanying consolidated income statement are analysed as follows: Six months ended June 30, 2006 Six months ended June 30, 2005 Interest payable on long-term borrowings (1,804) (1,378) Amortisation of debt discount (92) (131) Net gain/(loss) on fair value of interest rate swap (24) 59 Total (1,920) (1,450) 6. Vessels These are analysed as follows: 30 June2006 U.S $ December 2005 Cost At beginning of period/year 94,260 94,221 Additions 29, At end of period/year 123,638 94,260 Depreciation At beginning of period/year (18,051) (12,853) Depreciation charge for the period/ year (2,597) (5,198) At end of period/year (20,648) (18,051) Net carrying amount of vessels 102,990 76,209 Net carrying amount of deferred dry-docking costs 7,420 8,212 Net carrying amount 110,410 84,421 Acquisitions On 26 June 2006, the Company acquired the M/V Bengal Sea, a container vessel of 3,007 TEU and 47,120 DWT built in 1992 for U.S.$29.1 million (the vessel will be renamed to MSC Scotland on September 2006). The gross carrying amount of vessels, which have been fully depreciated to their residual value and are still in use, was U.S.$15.8 million (2005: U.S.$12.8 million). Vessels under construction 30 June2006 U.S $ December 2005 Advances for vessel under construction 13,322 - On 16 June 2006, the Company acquired the M/V Fortune, a container vessel of 5,551 TEU and 68,537 DWT built in 1996 for U.S.$13 million. The vessel was damaged in a fire on 21 March The vessel is expected to become operational in 14 to 18 months after undergoing a major reconstruction (see Note 12).

15 6. Vessels (Continued) Vessels under construction include capital expenditure of U.S.$0.3 million for the reconstruction of the vessel up to 30 June Depreciation on the vessel will commence upon the completion of the reconstruction. All of the Company's vessels and vessels under construction, having a total carrying value of U.S. $116 million at 30 June 2006 (U.S.$76.2 million at 31 December 2005), have been provided as collateral to secure the loans discussed in Note 9. Dry-docking costs Net carrying amount of deferred dry docking costs consists of cost of U.S.$16.5million and accumulated amortisation of U.S.$9.1 million. During the six month period ended June , four of the Group s vessels have passed their Dry-docking survey with a total cost of U.S.$1.8 million. 7. Share capital and Share premium Share capital consisted of the following: 30 June 2006 U.S. $ December 2005 Authorised Common stock of $0.01 each 100,000 1,000 Issued and unpaid Common stock of $0.01 each Issued and paid Common stock of $0.01 each Total issued share capital Formation: The Company was formed on 21 March 2005, and prior to the reorganisation analysed below, its shares of common stock consisted of 500 shares authorised, issued and outstanding, without par value. From 30 March 2006, conditional on admission to the Official List of the London Stock Exchange, the Company amended its Articles of Incorporation. Under the Company's Amended and Restated Articles of Incorporation, the Company has an authorised share capital of 100,000,000 shares (all in registered form), consisting of 100,000,000 shares of common stock with a par value of U.S.$0.01 per share. The Company has cancelled the existing 500 shares with no par value. Prior to the reorganisation, seventeen holding companies, each in turn owning a vessel - owning company (altogether the Contributed Companies), were wholly-owned by Captain Paris Dragnis. The reorganisation that took place on 30 March 2006 as well, involved the following steps: (a) (b) Captain Paris Dragnis contributed all of the shares held by him in the seventeen intermediate holding companies to Goldenport, in exchange for shares of common stock in Goldenport, fulfilling his obligation for the Company s share capital, in accordance with the share for share agreement exchange dated 30 March 2006; and Captain Paris Dragnis transfered all of the shares of common stock in Goldenport to Starla Shipholding Corporation (Starla), a company wholly owned by Captain Paris Dragnis; as a result Starla was, prior to the admission to the Official List of the London Stock Exchange, the sole shareholder of the Company.

16 7. Share capital and Share premium (continued) Following completion of the reorganisation, the Contributed Companies were wholly-owned subsidiaries of Goldenport. On 5 April 2006 the Company was admitted to the Official List of the London Stock Exchange, issuing 25,531,915 shares of U.S.$0.01 each. On 11 April 2006 the over allotment option was exercised for 2,553,191 shares at GBP 2.35 per share bringing the total offer to GBP66 million. The analysis of the Share premium is as follows: U.S. $ 000 Initial public offering 115,465 Issuance costs (8,193) Proceeds from initial public offering, net 107,272 Paid share capital (281) Share premium 106, Earnings per share Basic earnings per share "EPS" are calculated by dividing the profit for the period attributable to Goldenport Holdings Inc. shareholders by the weighted average number of shares outstanding. No dilution in EPS exists as at 30 June 2006 and 2005.

17 9. Long-term Debt The amounts in the accompanying balance sheets are analysed as follows: Bank Loan a. Issued 1 November 2000, maturing 30 August 2006 Vessel(s) 30 June 2006 U.S. $ 000 Rate % Amount 31 Dec 2005 U.S.$ 000 Rate % Amount Tuas Express Msc Himalaya Glory D % 1, % b.issued 12 July 2002, maturing 18 July 2007 Samos 2, % 2, % c.issued 31 October 2002, maturing 4 February 2007 Ios, Athos 2, % 3, % d.issued 13 February 2003, maturing 30 May 2009 Lindos 3, % 3, % e.issued 31 March 2004, maturing 30 September 2010 Tilos, Limnos 9, % 18, % f. Issued 17 May 2005, maturing 17 May 2009 Vana, Beauty, Achim Gianni D, Socotra, AlexD, Howrah Bridge, Msc Emirates 20, % 46, % g. Issued 26 June 2006, maturing 26 September 2011 Bengal Sea 17, % - - Total 56,845 75,875 Less: current portion 16,305 23,150 Less: debt discount Long-term portion 40,325 52,538 The repayment terms of loans with balances outstanding at 30 June 2006 are: Loan a: This loan is repayable in one quarterly instalment of U.S.$0.36 million by 30 August Loan b: This loan is repayable in four quarterly instalments of U.S.$0.12million each, the first one paid on 18 July 2006 and the final one being due on 18 April 2007 plus a balloon payment of U.S.$2.22 million, being due on 18 July Loan c: This loan is repayable in two quarterly instalments of U.S.$0.135million each, the first one paid on 4 August 2006 and the final one being due on 4 November 2006 plus a balloon payment of U.S.$2.615 million, being due on 4 February 2007.

18 9. Long-term Debt (Continued) Loan d: This loan is repayable in six, six-monthly instalments of U.S.$0.35 million each, the first one paid on 30 November 2006 and the final one being due on 30 November 2008 plus a balloon payment of U.S.$1.4 million, being due on 30 May Loan e: This loan is repayable in one six-monthly instalment of U.S.$2.1 million, to be paid on 30 September 2006 and the eight six-monthly instalments of U.S.$0.7 million each, the first one being due on 31 March 2007 and the final one being due on 31 March 2010, plus a balloon payment of U.S.$1.8 million being due on 30 September Loan f: This loan is repayable by one quarterly instalments of U.S.$2.1 million, to be paid on 17 August 2006, twelve quarterly instalments of U.S.$ 1.3 million each, the first one being due on 17 November 2006 and the final one being due on 17 August 2009,along with a balloon payment of U.S.$2.7 million. Loan g: On 26 June 2006 the Company signed an agreement for a secured term loan facility of up to U.S.$17.5 million in order to acquire the new vessel M/V Bengal Sea. This loan is repayable by: twelve quarterly instalments of U.S$0.8 million each, the first one paid on 26 September 2006 and the twelfth on 26 September 2009, eight quarterly instalments of U.S.$0.6 million each, the first one being due on 26 September 2009 and the final one being due on 26 September 2011 along with a balloon payment of U.S$3.1million. All loans are denominated in U.S. dollars, and bear interest at LIBOR plus a margin payable quarterly. The loan agreements contain covenants including restrictions as to changes in management and ownership of the vessels, additional indebtedness and mortgaging of vessels without the bank's prior consent as well as minimum requirements regarding hull cover ratio and corporate guarantees of the Holdings. The restricted net assets of the vessel-owning subsidiary companies at 31 December 2005 and 30 June 2006 consisted of restricted cash and amounted to U.S.$1.4 million U.S.$ 0.8 million respectively. 10. Accrued liabilities and other payables The amounts in the accompanying balance sheets at are analysed as follows: 30 June 31 December Accrued interest Other accrued expenses Other payables 2,274 1,951 2,902 2,310

19 11. Related party transactions Transactions with related parties consist of the following: Period ended Period ended June 30 June Voyage expenses related Party Goldenport Shipmanagement Ltd Management fees related party Goldenport Shipmanagement Ltd 1,607 1,530 Total 2,403 2,386 Balances due from related parties comprise the following: 30 June 31 December Due from related parties -Current Goldenport Shipmanagement Ltd 3,705 9,860 Total 3,705 9, Commitments As stated in Note 6, the Company acquired in June 2006 the M/V Fortune which was damaged in a fire in March The vessel will become operational in a period of 14 to 18 months after undergoing major reconstruction for which the Company has obtained from a bank in August 2006 a letter of intent for a loan of U.S.$30 million. The Company intends to utilise U.S. $5 million out of this loan to refinance existing debt (in order for the vessels involved in the refinancing to be used as collateral on the loan) and the remaining U.S. $25 million will cover the reconstruction cost of M/V Fortune. 13. Events after the balance sheet date Vessel acquisition: On 19 July 2006, the Company acquired the M/V Vasos (ex. Orient Alliance), a 152,200 DWT cape size bulk carrier built in 1990 for a purchase price of U.S.$27.3 million. The acquisition of the vessel is partially financed by a loan facility amounting to U.S.$17.5 million. This loan will be repaid by ten semi-annual instalments. First instalment is of U.S.$0.95 million followed by nine instalments of U.S.$1.45 million each, plus a balloon instalment of U.S.$3.5 million payable simultaneously with the final instalment. Dividends declared: On 3 September 2006, the Company declared an interim dividend of 5.6 pence per share.

20 1. Fleet Employment Profile: Currently Goldenport s fleet is employed as follows: APPENDICES Vessel Type Capacity Rate (US$) per day Charter Expiration Containers TEU Earliest Latest (1) Fortune Bengal Sea / MSC Scotland (2) MSC Socotra Howrah Bridge MSC Himalaya Post Panamax 5,551 Under repairs Sub Panamax 3,007 22,500 Sep-06 Sep-06 20,770 Sep-09 Nov-09 Sub Panamax 2,258 8,000 Jan-08 Mar-08 Sub Panamax 2,257 14,400 Jan-07 Mar-07 Sub Panamax 2,108 12,700 Dec-08 Jan-09 Achim Handy ,450 Feb-09 Apr-09 Beauty Handy 962 7,300 Feb-07 Apr-07 MSC Emirates Handy 934 9,000 Jan-07 Jan-07 Glory D Handy ,450 Feb-09 Apr-09 Tuas Express Feeder 485 8,900 Dec-07 Dec-08 Dry Bulk DWT Vasos (ex. Orient Alliance) (3) Capesize 152,065 16,000 Feb-07 May-07 23,950 Dec-10 Jun-12 Samos Capesize 136,638 15,750 Apr-07 Jun-07 Ios Panamax 69,737 12,500 Feb-07 Jun-07 Gianni D Panamax 69,100 16,500 Sep-06 Sep-06 26,000 Sep-07 Nov-07 Athos Panamax 67,515 16,750 Jun-07 Sep-07 Vana (4) Handymax 53,522 12,700 Sep-06 Oct-06 Alex D (4) Handymax 52,315 21,250 Oct-06 Oct-06 Limnos Handymax 52,266 19,200 Nov-06 Dec-06 Lindos Handymax 52,266 14,500 Jul-09 Nov-09 Tilos (4) Handymax 52,266 26,000 Sep-06 Sep-06

21 (1) Represents last day on which the charter may redeliver the vessel assuming exercise of all additional hire periods under charter (2) Bengal Sea upon expiry of the remaining time charter in September 2006 will be renamed to MSC Scotland (3) Charterer has an option to extent for another 12 months after the initial period of 45 to 51 months (4) Goldenport is in advanced negotiations to extend or re-charter the vessels Vana, Alex D and Tilos Forward Charter Coverage: The percentage of available days of the fleet already fixed under contracts (assuming latest charter expiration and exercise of all additional hire periods under charter) is as follows: Total Fleet 96% 63% 43% Containers 100% 74% 60% Bulk Carriers 92% 52% 24% 2. Notes on Summary of Selected Financial and Operating Data: (1) Average number of vessels is the number of vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in the period. (2) Ownership days are the aggregate number of days in a period during which each vessel in our fleet has been owned by us. Ownership days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during a period. (3) Available days are the number of our ownership days less the aggregate number of days that our vessels are off-hire due to scheduled repairs or repairs under guarantee, vessel upgrades or special surveys and the aggregate amount of time that we spend positioning our vessels. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenues. (4) Operating days are the number of available days in a period less the aggregate number of days that our vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues. (5) We calculate fleet utilisation by dividing the number of our operating days during a period by the number of our available days during the period. The shipping industry uses fleet utilisation to measure a company s efficiency in finding suitable employment for its vessels and minimising the amount of days that its vessels are off-hire for reasons other than scheduled repairs or repairs under guarantee, vessel upgrades, special surveys or vessel positioning. (6) Daily vessel operating expenses, which include crew wages and related costs, the cost of insurance, expenses relating to repairs and maintenance, the costs of spares and consumable stores, tonnage taxes and other miscellaneous expenses, are calculated by dividing vessel operating expenses by ownership days for the relevant period. (7) TCE rates are defined as our time and voyage charter revenues less voyage expenses during a period divided by the number of our available days during the period, which is consistent with industry standards. Voyage expenses include port charges, bunker (fuel oil and diesel oil) expenses, canal charges and commissions. TCE rate is a standard shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charter hire rates for vessels on voyage charters are generally not expressed in per day amounts while charter hire rates for vessels on time charters are generally expressed in such amounts. - ENDS -