Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN) Q2 2020 Earnings Conference Call - Final Transcript
Aug 28, 2020 • 08:00 am ET
Thank you for standing by, ladies and gentlemen, and welcome to the Grindrod Shipping Conference Call on the First Half 2020 Financial Results. We have with us Martyn Wade, Chief Executive Officer and Mr. Stephen Griffiths, Chief Financial Officer of the company. [Operator Instructions] I must advise you that this conference is being recorded today.
And we will now pass the floor over to your first speaker today, Martyn Wade. Please go ahead, sir.
Thank you, operator. Welcome everyone, and thank you for joining our call for the first half 2020 ended June 30.
Let me refer you to Slide Number 2 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 and tanker markets and other operating issues. These statements are based on the beliefs and expectations of management as of today. Actual results may differ materially from our expectations.
Investors should read carefully the risks and uncertainties described in the slide presentation and in today's press release as well as the risk factors included in our annual reports and our other filings with the SEC. We assume no obligation to revise or update forward-looking statements, whether as a result 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, please see yesterday's press release in Pages 28 and 29 of the slide deck, which is posted on our website and our filings with the SEC.
Please turn to Slide 4 for first half 2020 financial highlights. Financial results for the first half of 2020 were stronger than the first half of 2019 across the majority of income metrics. While revenue in the first half of 2020 was flat year-over-year, gross profit increased to $8.9 million and adjusted EBITDA nearly doubled to $28.8 million, compared to $14.7 million in the first half of 2019. This led to reduction in net loss and loss per share of $10.5 million and $0.55 respectively in the first half of 2020 compared to the first half of 2019.
The results for the first half include the consolidation of the results of IVS Bulk effective February 14, 2020 as a result of our acquisition of Regiment's 33.25% interest in IVS Bulk, increasing our ownership to 66.75% along with control of the entity.
The effects of the COVID-19 pandemic were felt in both positive and negative ways during the period. The product tanker market temporary enjoy a strong earnings as a result of changes in refined product flows and demand for floating storage worldwide.
And firstly, the drybulk market weakened significantly during the first half of the year due to global lockdowns with cut into raw material demand, particularly in China. Historically, weak drybulk spot charter rates