KDM boosts EBIT 2.5x yoy in 1Q13, schedules SPO

KDM Shipping (KDM PW) reported a 2.1x increase in 1Q13 revenue to USD 5.7 mln. Its operating profit (EBIT) grew 2.5x yoy to USD 2.1 mln, and net profit jumped 2.6x yoy to USD 1.99 mln. Additionally, the company disclosed that it has placed one vessel, the Danapris, under the Russian flag and is planning to transfer two additional vessels by the end of 3Q13. One vessel, Neva, had been operating under the Russian flag, before being acquired by KDM in December 2012. The company reiterated plans to conduct a two-stage second offering, issuing 2.7 mln of additional shares in order to finance the acquisition of the new vessels.

Roman Topolyuk: KDM Shipping generated a steep yoy increase in 1Q13 revenue on a 110% yoy surge in cargo shipped (to 165.1 kt). It was prompted by weather conditions better than 1Q12. With four vessels under the Russian flag, 36% of the company’s capacity will operate in the Russian jurisdiction, which will provide for 20-30% higher margins than the company had generated previously, according to KDM Shipping. Additional equity financing, once completed, could speed up its planned increase in the number of acquired vessels, as well as enhance the stock’s liquidity.