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Grindrod Shipping Holdings Ltd. 2020 Second Half and Full Year Financial Results

Grindrod Shipping Holdings Ltd., a global provider of maritime transportation services in the drybulk and product tanker sectors, today announced its second half and full year 2020 earnings results for the period ended December 31, 2020.

Financial Highlights for the Second Half of the Year Ended December 31, 2020(1)

• Revenue of $112.1 million

• Gross profit of $6.2 million

• Adjusted EBITDA of $18.5 million(2)

• Loss for the period attributable to owners of the Company of ($28.3 million) or ($1.49) per ordinary share including ($12.6 million) impairment losses on ships

• Handysize and supramax/ultramax TCE per day of $7,535 and $10,887 respectively.

• Supramax/ultramax outperformed the Baltic Supramax-58 TC Index (the “BSI-58”)(3) benchmark by approximately 11.0% in the second half of 2020(2)(4)

• Medium range tanker TCE per day of $7,960, and small tanker TCE per day of $13,680 in the second half of 2020(2)

• Period end cash and bank balances of $50.6 million, including restricted cash of $12.6 million.

Financial Highlights for the Full Year Ended December 31, 2020(1)

• Revenue of $279.2 million

• Gross profit of $15.1 million

• Adjusted EBITDA of $47.3 million(2)

• Loss for the period attributable to owners of the Company of ($38.8 million) or ($2.05) per ordinary share including ($16.3 million) impairment losses on ships

• Handysize and supramax/ultramax TCE per day of $6,629 and $10,072 respectively. Supramax/ultramax outperformed the BSI-58(3) benchmark by approximately 29.5%(2)(4)

• Medium range tanker TCE per day of $16,339, and small tanker TCE per day of $12,374(2).

(1) Our segment results include the proportionate share of our joint ventures, which differs from the consolidated statements of profit or loss in our unaudited condensed consolidated financial statements which account for our investments in joint ventures under the equity method.
(2) Adjusted EBITDA and TCE per day are non-GAAP financial measures. For the definitions of these non-GAAP financial measures and the reconciliation of these measures to the most directly comparable financial measures calculated and presented in accordance with GAAP, please refer to the definitions and reconciliations in “Non-GAAP Financial Measures” at the end of this press release.
(3) The BSI-58 is adjusted for 5% commissions to be comparable to Grindrod Shipping’s TCE per day.
(4) As of January 1, 2020 the Baltic Exchange discontinued publishing the Baltic Handysize-28 TC Index and replaced it with the Baltic Handysize-38 TC Index. The new Baltic Handysize-38 TC Index does not reflect the ship types comparable to our handysize fleet and we do not believe it is an appropriate benchmark going forward.

Operational Highlights for the second half of the year ended December 31, 2020

• On July 9, 2020, we redelivered the 2013-built long-term chartered-in medium range tanker Doric Breeze.

• On September 2, 2020, we sold the 2004-built handysize drybulk vessel IVS Nightjar for a gross price of $5.1 million.

• On September 15, 2020, we took delivery of a Japanese-built eco ultramax drybulk carrier IVS Pebble Beach on a long-term charter for a minimum period of two years. We have an option to extend for up to two additional years and options to purchase the vessel in the future.

• On November 2, 2020, we sold the 2009-built handysize drybulk vessel IVS Triview for a gross price of $7.9 million. The vessel was owned by a joint venture in which we held a 51% share.

• On November 15, 2020, we agreed to extend the IVS Pinehurst long-term charter for a period of 11 to 13 months commencing November 15, 2020. We retain the option to purchase this vessel at a fixed price in the future and have a further option to extend the period of the charter for an additional 11 to 13 months.

• On December 1, 2020, a loan of $4.0 million provided by us to IVS Bulk Pte. Ltd. (“IVS Bulk”) was converted to equity in the form of “A Class” shares in line with the shareholders agreement dated February 14, 2020. The loan was initially provided on September 30, 2020 with interest calculated at LIBOR plus 3.1% The transaction increased our shareholding by 2.11% in IVS Bulk from 66.75% to 68.86%.

• On December 22, 2020, we completed a financing arrangement with two Japanese shipowners relating to the 2016-built medium range tanker Matuku from which we received cash proceeds of $26.8 million (before commissions but net of charter pre-payments). The transaction generated net proceeds of $9.3 million after settling the debt associated with the vessel. The net proceeds, together with cash on hand, were used to repay $10 million of the $35.8 million senior secured credit facility. The Matuku continues to be considered part of our owned fleet.

• On December 23, 2020, we took delivery of a Japanese-built eco ultramax drybulk carrier IVS Atsugi on a long-term charter for a minimum period of two years. We have an option to extend for up to two additional years and options to purchase the vessel in the future.

• On December 30, 2020, the parties to the relevant agreements entered into amendments to our $100.0 million senior secured credit facility, our $29.9 million senior secured credit facility, and our $114.1 million senior secured credit facility, respectively. The covenants were amended to (1) reduce the book value net worth covenant to be tested as of December 31, 2020 from $240 million to $225 million; (2) increase the debt to market adjusted tangible fixed assets covenant from not more than 75% to not more than 80% as of December 31, 2020; and (3) exclude from the determination of current liabilities in the covenant that requires our current assets to exceed our current liabilities the amount owed to Sankaty under the $35.8 million senior secured credit facility for purposes of testing as of December 31, 2020.

Recent Developments

• We agreed to extend the charter-in of the 2014-built Japanese eco supramax vessel IVS Crimson Creek for a period of 11 to 13 months commencing April 1, 2021.

• As of February 22, 2021, we have contracted the following TCE per day(1)(2)(3):
o Handysize: approximately 1,425 operating days at an average TCE per day of approximately $10,545;

o Supramax/ultramax: approximately 2,241 operating days at an average TCE per day of approximately $12,540; and

o Tankers: approximately 165 operating days at an average TCE per day of approximately $11,757(4).

(1) Our segment results include the proportionate share of our joint ventures, which differs from the consolidated statements of profit or loss in our unaudited condensed consolidated financial statements, which account for our investments in joint ventures under the equity method.
(2) TCE per day is a non-GAAP financial measure. For the definition of this non-GAAP financial measure and the reconciliation of this measure to the most directly comparable financial measure calculated and presented in accordance with GAAP, please refer to the definitions and reconciliations in “Non-GAAP Financial Measures” at the end of this press release.
(3) Operating days are the number of available days in the relevant period a vessel is controlled by us after subtracting the aggregate number of days that the vessel is off-hire due to a reason other than scheduled drydocking and special surveys, including unforeseen circumstances. We use operating days to measure the aggregate number of days in a relevant period during which vessels are actually available to generate revenue.
(4) Excludes Matuku. We have combined the guidance for our tanker segment as we have only two medium range tankers (excluding Matuku) and one small tanker trading spot.

CEO Commentary

Martyn Wade, the Chief Executive Officer of Grindrod Shipping, commented:

“During the second half of 2020, our focus has been on navigating the continued market effects of the COVID-19 pandemic while completing the streamlining of our corporate structure and taking advantage of favorable refinancing opportunities. Despite the extensive operational challenges caused by the pandemic and the exceptionally weak drybulk markets, we managed to continue our commercial outperformance.

“With the consummation of the IVS Bulk transaction during the first half of 2020 and the disposal of the IVS Triview in November 2020, we completed the streamlining of our corporate structure. All owned vessels are currently consolidated compared to 19 vessels held in unconsolidated joint ventures in June 2018 when we initially went public.

“We further modernized our drybulk fleet with the delivery of two Japanese newbuild ultramax eco vessels, the IVS Pebble Beach and the IVS Atsugi under long-term charters-in with purchase options while disposing of two older handysize vessels.

“Leveraging our long-standing relationships with leading Japanese industry participants, in December 2020 we concluded a sale and lease back transaction under attractive terms for one of our product tankers. This transaction enabled us to refinance an impending maturity and repay early $10 million on one of our senior secured credit facilities, thereby reducing our average interest rate and materially reducing our remaining scheduled maturities in 2021.

“Overall, despite the negative market impact of COVID-19 on our markets and the shipping industry broadly, 2020 has been a transformational year for our company and positions us to look ahead with cautious optimism. The first quarter of 2021 has started in a positive way and we expect dry bulk fundamentals to continue improving. As the world transitions out of the pandemic, demand is increasing and is being further aided by stimulus packages around the world. At the same time, the historically low orderbook and the expected impact of new environmental regulations limit ship supply, creating the potential for a tighter balance with demand. In this environment, we believe that Grindrod Shipping is well positioned to benefit, leveraging our competitive advantages including our modern, high quality Japanese-built eco fleet and our ability to maximize revenue through in-house commercial pools and cargo contracts.”

Results for the Six Months Ended December 31, 2020 and 2019

In comparison to the results for the second half of 2019, the results for the second half of 2020 were impacted by the additional acquisition and subsequent consolidation of IVS Bulk, the sale of vessels and the effect of the pandemic on the drybulk and tanker spot market.

Revenue was $112.1 million for the six months ended December 31, 2020 and $163.8 million for the six months ended December 31, 2019. Vessel revenue was $106.0 million for the six months ended December 31, 2020 and $160.8 million for the six months ended December 31, 2019.

In the drybulk business, handysize total revenue and supramax/ultramax total revenue was $45.9 million and $60.9 million, respectively, for the six months ended December 31, 2020 and $53.2 million and $83.2 million, respectively, for the six months ended December 31, 2019. Handysize vessel revenue and supramax/ultramax vessel revenue was $36.4 million and $60.8 million, respectively, for the six months ended December 31, 2020 and $52.6 million, and $82.5 million, respectively, for the six months ended December 31, 2019. The decrease in revenue was primarily due to a decrease in spot rates in the drybulk market affected by the declining demand for drybulk from the pandemic.

In the tankers business, our medium range tankers and small tankers total revenue was $3.0 million and $3.1 million, respectively, for the six months ended December 31, 2020, and $17.5 million and $6.0 million, respectively, for the six months ended December 31, 2019. Medium range tankers and small tankers vessel revenue was $3.0 million and $3.1 million, respectively, for the six months ended December 31, 2020, and $17.5 million and $6.0 million, respectively for the six months ended December 31, 2019. The decrease in total revenue was primarily a result of the decrease in operating days due to ship sales and the reduction in the medium range tanker spot market rates.

In the drybulk business, our combined handysize and supramax/ultramax operating days increased to 7,170 days for the six months ended December 31, 2020 from 6,420 days for the six months ended December 31, 2019. Comparability of the operating days for the six months ended December 31, 2020 and 2019 was affected by the consolidation of the IVS Bulk vessels from February 2020. In the tankers business our medium range tankers and small tankers operating days decreased to 556 days for the six months ended December 31, 2020 from 1,471 days for the six months ended December 31, 2019. A significant portion of both our drybulk and tankers fleets continued to be exposed to the spot markets in the second half of 2020.

Handysize TCE per day was $7,535 per day for the six months ended December 31, 2020 and $8,551 per day for the six months ended December 31, 2019. Supramax/ultramax TCE per day was $10,887 per day for the six months ended December 31, 2020 and $13,624 per day for the six months ended December 31, 2019.

Medium range tankers TCE per day was $7,960 per day for the six months ended December 31, 2020 and $14,409 per day for the six months ended December 31, 2019. Small tankers TCE per day was $13,680 per day for the six months ended December 31, 2020 and $12,441 per day for the six months ended December 31, 2019.

Cost of sales was $105.9 million for the six months ended December 31, 2020 and $149.2 million for the six months ended December 31, 2019.

In the drybulk business, handysize segment and supramax/ultramax segment cost of sales was $47.3 million and $58.0 million, respectively, for the six months ended December 31, 2020, and $51.0 million and $76.1 million, respectively, for the six months ended December 31, 2019. Handysize voyage expenses and supramax/ultramax voyage expenses were $12.3 million and $17.6 million, respectively, for the six months ended December 31, 2020, and $26.2 million and $37.2 million, respectively, for the six months ended December 31, 2019. Handysize vessel operating costs and supramax/ultramax vessel operating costs were $15.1 million and $8.0 million, respectively, for the six months ended December 31, 2020, and $11.8 million and $2.8 million, respectively, for the six months ended December 31, 2019. Comparability of the cost of sales for the six months ended December 31, 2020 and 2019 was affected by the consolidation of the IVS Bulk vessels from February 2020. Handysize vessel operating costs per day were $5,242 per day for the six months ended December 31, 2020 and $5,101 per day for the six months ended December 31, 2019. Supramax/ultramax vessel operating costs per day were $5,414 per day for the six months ended December 31, 2020 and $4,616 per day for the six months ended December 31, 2019.

The long-term charter-in costs for our supramax/ultramax fleet was $12,003 per day during the second six months of 2020. During this period, out of 3,971 operating days in the supramax/ultramax segment, 63.2% of operating days were fulfilled with owned/long-term chartered-in vessels and the remaining 36.8% with short-term chartered-in vessels.

In the tankers business, medium range tankers and small tankers cost of sales were $2.8 million and $2.1 million, respectively, for the six months ended December 31, 2020 and $15.4 million and $4.5 million, respectively, for the six months ended December 31, 2019. Medium range tankers voyage expenses and small tankers voyage expenses were $0 and $0.7 million, respectively, for the six months ended December 31, 2020 and $1.6 million and $1.4 million, respectively, for the six months ended December 31, 2019. Medium range tankers vessel operating costs and small tankers vessel operating costs were $2.5 million and $1.2 million, respectively, for the six months ended December 31, 2020 and $5.0 million and $2.2 million, respectively, for the six months ended December 31, 2019. Medium range tankers vessel operating costs per day were $6,834 per day for the six months ended December 31, 2020 and $6,815 per day for the six months ended December 31, 2019. Small tankers vessel operating costs per day were $6,391 per day for the six months ended December 31, 2020 and $6,036 per day for the six months ended December 31, 2019.

During this period, 368 of the 378 operating days in the medium range segment were fulfilled with owned vessels. We did not have any long-term or short-term chartered-in small tanker vessels during this period.

Gross profit was $6.2 million for the six months ended December 31, 2020 and $14.6 million for the six months ended December 31, 2019.

Other operating expense was $13.9 million for the six months ended December 31, 2020 and $18.8 million for the six months ended December 31, 2019. The other operating expense for the six months ended December 31, 2020 was primarily impairment losses on vessels of $12.6 million and foreign exchange losses of $1.3 million. The other operating expense for the six months ended December 31, 2019 was primarily impairment losses on vessels of $12.7 million, impairment losses on goodwill and intangibles of $3.2 million and impairment losses on right of use assets of $2.3 million.

Administrative expense was $12.4 million for the six months ended December 31, 2020 and $15.1 million for the six months ended December 31, 2019.

Share of income of joint ventures was $1.6 million for the six months ended December 31, 2020 and $0.1 million for the six months ended December 31, 2019.

Impairment loss recognized on financial assets was $1.8 million for the six months ended December 31, 2020 and $0 for the six months ended December 31, 2019.

Interest income was $0.1 million for the six months ended December 31, 2020 and $0.8 million for the six months ended December 31, 2019.

Interest expense was $8.3 million for the six months ended December 31, 2020 and $6.1 million for the six months ended December 31, 2019. The increase in the six months ended December 31, 2020 was primarily due to the consolidation of IVS Bulk from February 2020.

Income tax for the six months ended December 31, 2020 was $0.3 million and for the six months ended December 31, 2019 was $0.1 million.

Loss for the six months ended December 31, 2020 was $28.8 million and for the six months ended December 31, 2019 was $24.5 million.

Loss attributable to the owners of the Company for the six months ended December 31, 2020 was $28.3 million and for the six months ended December 31, 2019 was $24.5 million.

Results for the Full Years Ended December 31, 2020 and 2019

Our results for the 12 months ended December 31, 2020 relative to the 12 months ended December 31, 2019 were impacted by the additional acquisition and subsequent consolidation of IVS Bulk, the sale of vessels and the effect of the pandemic on the drybulk and tanker spot market.

Revenue was $279.2 million for the 12 months ended December 31, 2020 and $331.0 million for the 12 months ended December 31, 2019. Vessel revenues were $234.0 million for the 12 months ended December 31, 2020 and $308.5 million for the 12 months ended December 31, 2019.

In the drybulk business, handysize total revenues and supramax/ultramax total revenues were $84.5 million and $124.7 million, respectively, for the 12 months ended December 31, 2020, and $112.2 million and $155.2 million, respectively, for the 12 months ended December 31, 2019. Handysize vessel revenues and supramax/ultramax vessel revenues were $74.6 million and $124.4 million, respectively, for the 12 months ended December 31, 2020, and $102.8 million, and $153.9 million, respectively, for the 12 months ended December 31, 2019. The decrease in revenue was primarily due to a decrease in spot rates in the drybulk market affected by the declining demand for drybulk tonnage from the pandemic.

In the tankers business, our medium range tankers and small tankers total revenues were $52.2 million and $15.7 million, respectively, for the 12 months ended December 31, 2020, and $45.2 million and $21.9 million, respectively, for the 12 months ended December 31, 2019. Medium range tankers and small tankers vessel revenues were $23.4 million and $6.6 million, respectively, for the 12 months ended December 31, 2020, and $37.8 million and $13.4 million, respectively, for the 12 months ended December 31, 2019. The decrease in total revenue was primarily a result of the decrease in operating days due to ship sales partially offset by an increase in ship sale revenue and an increase in tanker spot market rates for the tanker business.

In the drybulk business, our combined handysize and supramax/ultramax operating days increased to 14,110 days in the 12 months ended December 31, 2020 from 12,953 days for the 12 months ended December 31, 2019. Comparability of the operating days for the 12 months ended December 31, 2020 and 2019 was affected by the consolidation of the IVS Bulk vessels from February 2020. In the tankers business our medium range tankers and small tankers operating days decreased to 1,841 days for the 12 months ended December 31, 2020 from 3,149 days for the 12 months ended December 31, 2019. Handysize and supramax/ultramax drybulk spot market rates were generally weaker in fiscal 2020 than fiscal 2019. On the other hand, overall the medium range tanker market was generally stronger in fiscal 2020 than fiscal 2019.

Handysize TCE per day was $6,629 per day for the 12 months ended December 31, 2020 and $7,770 per day for the 12 months ended December 31, 2019. Supramax/ultramax TCE per day was $10,072 per day for the 12 months ended December 31, 2020 and $12,067 per day for the 12 months ended December 31, 2019.

Medium range tankers TCE per day was $16,339 per day for the 12 months ended December 31, 2020 and $14,341 per day for the 12 months ended December 31, 2019. Small tankers TCE per day was $12,374 per day for the 12 months ended December 31, 2020 and $12,190 per day for the 12 months ended December 31, 2019.

Cost of sales was $264.1 million for the 12 months ended December 31, 2020 and $310.5 million for the 12 months ended December 31, 2019.

In the drybulk business, handysize segment and supramax/ultramax segment cost of sales was $90.5 million and $121.3 million, respectively, for the 12 months ended December 31, 2020 and $111.5 million and $148.7 million, respectively, for the 12 months ended December 31, 2019. Handysize voyage expenses and supramax/ultramax voyage expenses were $31.0 million and $48.5 million, respectively, for the 12 months ended December 31, 2020 and $53.4 million, and $74.3 million, respectively, for the 12 months ended December 31, 2019. Handysize vessel operating costs and supramax/ultramax vessel operating costs were $28.4 million and $13.6 million, respectively, for the 12 months ended December 31, 2020, and $23.6 million and $4.4 million, respectively for the 12 months ended December 31, 2019. Comparability of the cost of sales for the 12 months ended December 31, 2020 and 2019 was affected by the consolidation of the IVS Bulk vessels from February 2020. Handysize vessel operating costs per day were $5,030 per day for the 12 months ended December 31, 2020 and $5,040 per day for the 12 months ended December 31, 2019. Supramax/ultramax vessel operating costs per day were $5,073 per day for the 12 months ended December 31, 2020 and $4,545 per day for the 12 months ended December 31, 2019.

The long-term charter-in costs for our supramax/ultramax fleet was $12,005 per day for the 12 months ended December 31, 2020 and $12,650 per day for the 12 months ended December 31, 2019.

In the tankers business, medium range tankers and small tankers cost of sales were $43.9 million and $14.1 million, respectively, for the 12 months ended December 31, 2020, and $39.9 million and $18.8 million, respectively, for the 12 months ended December 31, 2019. Medium range tankers voyage expenses and small tankers voyage expenses were $0 and $1.6 million, respectively, for the 12 months ended December 31, 2020, and $5.5 million and $2.5 million, respectively, for the 12 months ended December 31, 2019. Medium range tankers vessel operating costs and small tankers vessel operating costs were $7.2 million and $2.7 million, respectively, for the 12 months ended December 31, 2020, and $10.2 million and $5.7 million, respectively, for the 12 months ended December 31, 2019. Medium range tankers vessel operating costs per day were $6,723 per day for the 12 months ended December 31, 2020 and $6,691 per day for the 12 months ended December 31, 2019. Small tankers vessel operating costs per day were $6,384 per day for the 12 months ended December 31, 2020 and $6,321 per day for the 12 months ended December 31, 2019.

The long-term charter-in costs for our long-term medium range tanker fleet was $15,300 per day for the 12 months ended December 31, 2020 and $15,300 per day for the 12 months ended December 31, 2019.

Gross profit was $15.1 million for the 12 months ended December 31, 2020 and $20.5 million for the 12 months ended December 31, 2019.

Other operating expense was $11.7 million recorded for the 12 months ended December 31, 2020 and $23.6 million for the 12 months ended December 31, 2019. Impairment losses on vessels of $16.3 million and an impairment loss on the assets classified as held for sale of $0.6 million offset by a foreign exchange gain of $5.2 million contributed to the other operating expenses for the 12 months ended December 31, 2020. Impairment losses on vessels of $17.0 million, impairment losses on goodwill and intangibles of $3.2 million and impairment losses on right of use assets of $2.3 million contributed to the other operating expenses for the 12 months ended December 31, 2019.

Administrative expense was $24.6 million for the 12 months ended December 31, 2020, and $28.4 million for the 12 months ended December 31, 2019.

Share of losses of joint ventures was $0.9 million for the 12 months ended December 31, 2020 and $1.4 million for the 12 months ended December 31, 2019.

Impairment loss recognized on financial assets was $1.8 million for the 12 months ended December 31, 2020 and $0 for the 12 months ended December 31, 2019.

Interest income was $0.6 million for the 12 months ended December 31, 2020 and $2.0 million for the 12 months ended December 31, 2019. Interest on loans to our joint ventures decreased for the 12 months ended December 31, 2020 due to loan repayments by joint ventures.

Interest expense for the 12 months ended December 31, 2020 was $16.9 million and for the 12 months to December 31, 2019 was $11.9 million. The increase in the 12 months ended December 31, 2020 was primarily due to the consolidation of IVS Bulk from February 2020.

Income tax for the 12 months ended December 31, 2020 was $0.7 million and for the 12 months ended December 31, 2019 was $0.7 million.

Loss for the 12 months ended December 31, 2020 was $41.1 million and for the 12 months ended December 31, 2019 was $43.5 million.

Loss attributable to the owners of the Company for the 12 months ended December 31, 2020 was $38.8 million and for the 12 months ended December 31, 2019 was $43.5 million.

Net cash flows generated from operating activities was $70.4 million for the 12 months ended December 31, 2020 and net cash flows used in operating activities was $55.6 million for the 12 months ended December 31, 2019. Net cash flows generated from operating activities for the 12 months ended December 31, 2020 includes capital expenditure on vessels of $9.0 million and proceeds from vessel sales of $40.4 million. For the 12 months ended December 31, 2019, net cash flows used in operating activities includes capital expenditure on vessels of $106.1 million and proceeds from vessel sales of $15.7 million.

Net cash used in investing activities was $22.6 million for the 12 months ended December 31, 2020 and net cash generated from investing activities was $35.0 million for the 12 months ended December 31, 2019. Net cash used in investing activities was impacted by the payment for the acquisition of a subsidiary (net of cash acquired) of $28.3 million, payments to related parties of $2.1 million and purchase of intangibles of $0.4 million, offset by the repayment of loans by joint ventures of $5.1 million and distributions received from joint ventures of $3.1 million in the 12 months ended December 31, 2020. Net cash generated from investing activities in the 12 months ended December 31, 2019 was impacted by the repayment of loans from joint ventures of $20.3 million, repayments by related parties of $7.6 million, dividends received from joint ventures of $5.0 million and repayment of an investment of $2.5 million.

Net cash flows used in financing activities was $42.0 million for the 12 months ended December 31, 2020 and net cash flows generated from financing activities was $19.4 million for the 12 months ended December 31, 2019. Net cash flows used in financing activities in the 12 months ended December 31, 2020 was primarily impacted by $74.9 million repayment of existing debt and $28.0 million repayment of lease liabilities offset by a net inflow of $60.7 million from the incurrence of new debt. Net cash flows generated from financing activities in the 12 months ended December 31, 2019 was primarily impacted by a net inflow of $95.8 million from the incurrence of new debt, $45.5 million repayment of existing debt and $29.9 million repayment of lease liabilities.

The above cash flow figures are reflected in the summarized cash flow information shown in tabular form in a subsequent section of this announcement under the heading “Unaudited Summary Statement of Cash Flows”, which reflects $38.0 million of cash and cash equivalents as of December 31, 2020, which is after deducting $12.6 million of restricted cash pledged to certain banks to secure loans and other credit facilities. As of December 31, 2020, we had cash and bank balances $50.6 million including the $12.6 million of restricted cash.
Source: Grindrod Shipping Holdings Ltd.

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