Gearbulk IntegratedReport 2024 Paperturn - Flipbook - Page 84
GEARBULK
FINANCIAL CAPITAL
YEAR
IN REVIEW
Strengthening Our Financial Position
Maintaining our liquidity ratio
Shipping remains a unique asset class, and our goal is to
Amid recent organizational restructuring and challenging
secure 昀椀nancing from lenders who understand the industry’s
market conditions, preserving a strong liquidity ratio is a
risk pro昀椀le. As part of our 2024 re昀椀nancing e昀昀orts, we success-
top priority. The Group has introduced measures to ensure
fully expanded our lending consortium to include an addi-
compliance with covenant requirements while securing short-
tional external 昀椀nancier and two related parties. These e昀昀orts
term funding to sustain operations. These include proactive
were driven by our commitment to reducing 昀椀nancing costs
cash management strategies, maintaining su昀케cient cash
and securing long-term funding for our future, in alignment
reserves, optimising short-term money market deposits, and
with the GB Strategy. Building on our progress in 2023, we
ensuring access to 昀氀exible credit lines. Working capital needs
continued transitioning several vessels from leases to owned/
remain stable and predictable, but liquidity risk manage-
bank-昀椀nanced structures, leveraging the facility established
ment is being strengthened through continuous forecasting
last year. This initiative has not only optimized our capital
of short-, medium-, and long-term 昀椀nancial requirements.
structure but also extended debt maturities, ensuring 昀椀nancial
Despite market volatility, particularly in vessel valuations, the
stability and 昀氀exibility for sustainable growth.
Group remains con昀椀dent in managing potential 昀氀uctuations in
loan-to-value ratios without signi昀椀cant disruption, leveraging
昀椀nancial 昀氀exibility and available credit facilities.
Maturing Balloons
300
Navigating Equity Ratio Amidst Restructuring
250
millions
Amid ongoing restructuring and changes in ownership, the
200
Group’s equity ratio will be impacted, requiring targeted
150
interventions to safeguard 昀椀nancial stability. Maintaining an
optimal equity ratio is essential for strengthening the balance
100
sheet, ensuring compliance with 昀椀nancial covenants, and
supporting long-term growth. To address these challenges,
50
various strategic measures are currently being explored and
0
agreed upon to restore and enhance the Group’s equity posi2025
2026
2027
2028
2029
2030
tion. By proactively managing its capital structure, the Group
remains committed to reinforcing investor and lender con昀椀-
Sustainability linked 昀椀nancing
dence while positioning itself for sustainable growth in the
Two loan facilities are Sustainability-Linked (since inception)
maritime industry.
which links loan pricing (or margin) to performance against
speci昀椀c Key Performance Indicators (KPIs). These KPIs primarily
focus on emissions (AER), compliance with MARPOL and the
frequency of total recordable injury cases excluding 昀椀rst aid
incidents (TRCF). By aligning our 昀椀nancing structure with sustainability objectives, we reinforce our commitment to driving
improvements in these critical areas. At the time of writing, only
unaudited KPI 昀椀gures for 2023 are available. Based on these,
Gearbulk met its AER targets and compliance with MARPOL
requirement however miss its TRCF target. This resulted in the
company to achieve a 0.02% reduction in premium from a target
of 0.05%, mainly due to not meeting the TRCF KPI. We remain
fully committed to reaching our target through various ongoing
initiatives aimed at enhancing safety across our operations.
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PART 4 – HOW WE CREATE VALUE
