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GRINDROD SHIPPING HOLDINGS LIMITED - 2018 second half and full year financial results

Release Date: 28/02/2019 07:15
Code(s): GSH     PDF:  
 
Wrap Text
2018 second half and full year financial results

GRINDROD SHIPPING HOLDINGS LTD.

ABBREVIATED NAME: GRINSHIP

Registered in Singapore with registration number 201731497H

JSE Share code: GSH

ISIN: SG9999019087

Primary listing on NASDAQ Global Select Market

Secondary listing on the JSE Main Board


2018 SECOND HALF AND FULL YEAR FINANCIAL RESULTS

Grindrod Shipping Holdings Ltd.(“Grindrod Shipping” or "Company" or “we” or “us”), presents its
unaudited second half and full year 2018 earnings results for the period ended December 31, 2018.

Financial Highlights for the second half of the year ended December 31, 2018(1)

   -   Revenues of $168.2 million.
   -   Gross profit of $8.7 million.
   -   Adjusted EBITDA of $1.6 million(2).
   -   Loss for the period of ($7.2 million) or ($0.38) per ordinary share.
   -   Handysize and supramax/ultramax TCE per day of $9,066 and $12,795, respectively,
       outperformed the Baltic Handysize TC Index (“BHSI”) and Baltic Supramax-58 TC Index (“BSI-
       58”) benchmarks by approximately 8.8% and 13.6% respectively(2).
   -   Handysize and supramax/ultramax fleet utilization of 99.5% and 99.7% respectively.
   -   Medium Range (“MR”) product tanker TCE per day of $10,950 outperformed Clarksons’
       Average MR Clean Earnings per day assessment of $8,573 by approximately 27.7%, and small
       tanker TCE per day of $11,453(2).
   -   MR product tanker and small tanker fleet utilization of 98.1% and 99.8%, respectively.
   -   Period end cash and cash equivalents of $47.3 million.

Financial Highlights for the full year ended December 31, 2018(1)

   -   Revenues of $319.0 million.
   -   Gross profit of $11.1 million.
   -   Adjusted EBITDA of ($0.1 million)(2).
   -   Loss for the period of ($20.6 million) or ($1.08) per ordinary share.
   -   Handysize and supramax/ultramax TCE per day of $9,032 and $11,878 outperformed the BHSI
       and BSI-58 TC benchmarks by approximately 9.3% and 8.8%(2), respectively.
   -   Handysize and supramax/ultramax fleet utilization of 98.9% and 99.5% respectively.
   -   MR product tanker TCE per day of $11,258 outperformed Clarksons’ Average MR Clean
       Earnings per day assessment of $8,750 by approximately 28.7%, and small tanker TCE per day
       of $11,392(2).
   -   MR product tanker and small tanker fleet utilization of 97.8% and 99.1%, respectively.
(1)
    The proportionate share of our joint ventures is not reflected in our condensed consolidated and
combined statement of profit and loss, but is reflected in our segment results.
(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 measure to the most directly comparable
financial measure calculated and presented in accordance with GAAP, please refer to the definitions
and reconciliations at the end of this press release.

Operational Highlights for the second half of the year ended December 31, 2018

      -   We entered into agreements to charter-in three Japanese newbuilding ultramax “eco” drybulk
          vessels upon delivery. IVS Phoenix is expected to be delivered in Q2 2019 and chartered-in for
          a minimum of three years with extension options. IVS Pebble Beach and IVS Atsugi are
          expected to be delivered in Q3 2020 and chartered-in for a minimum of two years with extension
          options and include purchase options in favor of the Company.
      -   We sold IVS Kanda, a non-“eco” handysize drybulk vessel, aged 14 years, in line with our
          strategy to maintain a young fleet, for gross proceeds of $8.7 million.
      -   In August 2018, upon the completion of a 10 year charter, we redelivered the handysize drybulk
          vessel IVS Shikra.
      -   We sold Berg, a 10 year old Chinese-built small tanker that we owned in a joint venture with
          Engen Petroleum to a third party, for gross proceeds of $7.6 million.
      -   We redelivered Coral Stars, a 14 year old chartered-in medium range tanker on expiry of the
          charter in December 2018.

Latest Developments

      -   We extended the termination date of the IVS Bulk joint venture from December 31, 2018 to April
          30, 2019, and are continuing to discuss alternatives to termination with our joint venture
          partners.
      -   We have commenced the wind up of the Leopard Tankers joint venture with Vitol, our joint
          venture partner, whereby we acquired and Vitol acquired or will acquire two medium range “eco”
          tankers from the joint venture. Accordingly we acquired Leopard Moon and Leopard Sun for a
          total purchase price of $54.0 million. Proceeds from the sale by Leopard Tankers of its vessels
          have been or will be applied to fully repay the joint venture’s $138.5 million credit facility, of
          which $70.2 million remained outstanding as of December 31, 2018, and our guaranty
          thereunder will be released upon full repayment. The financial results of Leopard Moon and
          Leopard Sun will be consolidated into our financial statements following delivery of these
          vessels to us.
      -   In January and February 2019, we drew down $14.9 million on each vessel, on a new $29.9
          million credit facility with NIBC Bank N.V. bearing interest at LIBOR plus a margin of 3.20% per
          annum to finance in part the acquisition of the two vessels from Leopard Tankers.
      -   In February 2019, we agreed to sell to a third party the one remaining vessel in our joint venture
          with Engen, the nine year old, non-“eco” medium range tanker Lavela at a gross price of $14.8
          million, with delivery to the new owners expected to occur in March 2019. The joint venture will
          be terminated following the delivery of Lavela.

CEO Commentary

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

“Our results in the second half of 2018 showed a marked improvement reflecting the stronger dry bulk
markets but also our continued ability to outperform the relevant industry benchmarks in our dry bulk
fleet. Specifically, for the second half of 2018, our TCE per day in the handysize segment was $9,066
compared to the BHSI of $8,329 (adjusted for 5.0% commissions), an outperformance of approximately
8.8%, whereas in the ultramax/supramax segment our TCE per day was $12,795 compared to the BSI-
58 of $11,267 (adjusted for 5.0% commissions), an outperformance of approximately 13.6%. We should
note that in the first half of 2018 we had outperformed the BHSI and BSI-58, by approximately 9.7%
and 5.1% respectively. On the tanker side, the markets remained weak for most of the second half of
2018 with a resurgence as of November 2018 which carried into 2019 but has recently declined from
the highs in late 2018. Still, we achieved an MR tanker TCE per day of $10,950 during the second half
of 2018 compared to $8,573 for the Clarksons MR Clean Average Earnings assessment, an
outperformance of approximately 27.7%.

The dry bulk market in 2019 to date shows signs of weakness reflecting trade wars, the Chinese New
Year’s seasonal impact, a slowdown in Chinese imports and other external market disruptions. Yet we
believe that the long term fundamentals appear positive reflecting the reduced supply outlook combined
with steady demand especially for minor bulks, which are typically carried by Grindrod Shipping’s
vessels. We also expect the product tanker market to improve given the increase in refining capacity
and dislocation between refiners and end users combined with the low orderbook for MR tankers.
Furthermore, the implementation of the IMO 2020 regulations may have a positive impact on the overall
market further limiting supply as the result of higher scrapping rates, increased off hires and slow
steaming.

In this environment, we expect to continue to leverage our competitive advantages which include the
modernity and high quality of our Japanese built fleet, our ability to maximize revenue through the use
of in-house commercial pools and cargoes, and our close commercial relationships with global and
regional industry players. We believe that the current market weakness may present attractive growth
opportunities and we believe that Grindrod Shipping is well positioned to take advantage of these
opportunities. Our company continues to operate a diversified fleet of dry bulk and product tanker
vessels which affords management the opportunity to pursue potential consolidation and growth
opportunities in both sectors.”

Results for the Six Months Ended December 31, 2018 and 2017
In comparison to the results for the second half of 2017, the results for the second half of 2018 were
impacted by the sale of two non-core businesses on January 1, 2018. In the drybulk business, our
handysize and supramax/ultramax operating days declined to 6,279 days for the six months ended
December 31, 2018 from 7,676 days for the six months ended December 31, 2017, primarily as a result
of a reduction of short-term chartered-in days. A significant portion of both our drybulk and tankers fleet
continued to be exposed to the spot markets in the second half of 2018. Handysize and
supramax/ultramax drybulk spot markets were generally stronger in the second half of 2018 than they
were in the second half of 2017. On the other hand, while there was an improvement in the MR tanker
market from November 2018, the second half of 2018 in this sector was generally weaker than the
second half of 2017.

Revenues were $168.2 million for the six months ended December 31, 2018 and $215.5 million for the
six months ended December 31, 2017. Vessel revenues were $156.4 million for the six months ended
December 31, 2018 and $194.4 million for the six months ended December 31, 2017.

In the drybulk business, handysize total revenues and supramax/ultramax total revenues were
$72.9 million and $73.6 million, respectively, for the six months ended December 31, 2018 and $72.3
                                                 
million and $78.7, respectively, for the six months ended December 31, 2017. Handysize vessel
revenues and supramax/ultramax vessel revenues were $63.4 million and $73.0 million, respectively,
for the six months ended December 31, 2018 and $64.5 million, and $78.2 million, respectively, for the
six months ended December 31, 2017.

In the tankers business, our medium range tankers and small tankers total revenues were $19.0 million
and $12.2 million, respectively, for the six months ended December 31, 2018 and $29.7 million and
$10.9 million, respectively, for the six months ended December 31, 2017. Medium range tankers and
small tankers vessel revenues were $19.0 million and $8.4 million, respectively, for the six months
ended December 31, 2018 and $18.8 million and $10.9 million, respectively for the six months ended
December 31, 2017.

Handysize TCE per day was $9,066 per day for the six months ended December 31, 2018 and $8,422
per day for the six months ended December 31, 2017. Supramax/ultramax TCE per day was $12,795
per day for the six months ended December 31, 2018 and $10,639 per day for the six months ended
December 31, 2017.

Medium range tankers TCE per day was $10,950 per day for the six months ended December 31, 2018
and $10,592 per day for the six months ended December 31, 2017. Small tankers TCE per day was
$11,453 per day for the six months ended December 31, 2018 and $13,458 per day for the six months
ended December 31, 2017.

Cost of sales was $159.5 million for the six months ended December 31, 2018 and $203.1 million for
the six months ended December 31, 2017. In the drybulk business, handysize segment and
supramax/ultramax segment cost of sales was $67.0 million and $71.9 million, respectively, for the six
months ended December 31, 2018 and $68.3 million and $79.2 million, respectively, for the six months
ended December 31, 2017.

Handysize voyage expenses and supramax/ultramax voyage expenses were $32.9 million and
$35.7 million, respectively, for the six months ended December 31, 2018 and $31.8 million, and $37.9
million, respectively, for the six months ended December 31, 2017. Handysize vessel operating costs
and supramax/ultramax vessel operating costs were $13.5 million and $1.7 million for the six months
ended December 31, 2018, respectively, and $13.5 million and $1.7 million, respectively for the six
months ended December 31, 2017. Handysize vessel operating costs per day were $5,167 per day for
the six months ended December 31, 2018 and $5,124 per day for the six months ended December 31,
2017. Supramax/ultramax vessel operating costs per day were $4,667 per day for the six months ended
December 31, 2018 and $4,592 per day for the six months ended December 31, 2017.

The average daily charter-in costs for our long-term supramax/ultramax fleet was $12,668 per day
during the second six months of 2018. During this period, out of 2,913 operating days in the
supramax/ultramax segment, 50.3% were fulfilled with owned/long-term chartered-in vessels and the
remaining 49.7% with short-term chartered-in vessels. As noted above, the IVS Shikra was redelivered
in August 2018 (which was our only long-term chartered-in Handysize vessel).

In the tankers business, medium range tankers and small tankers cost of sales were $20.1 million and
$10.3 million, respectively, for the six months ended December 31, 2018 and $33.0 million and $8.1
million, respectively, for the six months ended December 31, 2017. Medium range tankers voyage
expenses and small tankers voyage expenses were $4.2 million and $1.3 million, respectively, for the
six months ended December 31, 2018 and $3.4 million and $2.2 million, respectively, for the six months
ended December 31, 2017. Medium range tankers vessel operating costs and small tankers vessel
operating costs were $5.4 million and $4.1 million, respectively, for the six months ended December
31, 2018 and $6.4 million and $4.7 million, respectively, for the six months ended December 31, 2017.
Medium range tankers vessel operating costs per day were $6,502 per day for the six months ended
December 31, 2018 and $6,806 per day for the six months ended December 31, 2017. Small tankers

                                               
vessel operating costs per day were $6,390 per day for the six months ended December 31, 2018 and
$7,286 per day for the six months ended December 31, 2017.

The average daily charter-in costs for our long-term medium range tanker fleet was $14,972 per day
during the second six months of 2018 and during this period all of the operating days in the medium
range segment, were fulfilled with owned/long-term chartered-in vessels. The Company did not have
any long-term or short-term chartered-in small tanker vessels during this period.

Gross profit was $8.7 million for the six months ended December 31, 2018 and $12.4 million for the six
months ended December 31, 2017.

Other operating income was $3.4 million for the six months ended December 31, 2018 and $2.8 million
for the six months ended December 31, 2017 primarily due to the increase in foreign exchange gains
for the six months ended December 31, 2018.

Administrative expenses were $14.3 million for the six months ended December 31, 2018 and
$19.3 million for the six months ended December 31, 2017. The higher level of administrative expenses
in the period ended December 31, 2017 was primarily due to $2.4 million of costs in the six months
ended December 31, 2017 relating to our spin-off from Grindrod Limited, as well as other administrative
costs relating to the two non-core businesses sold on January 1, 2018.

Other operating expenses were $3.4 million and $37.0 million in the six months ended
December 31, 2018 and 2017, respectively. The decrease in operating expenses for the six months
ended December 31, 2018 was primarily due to impairment losses on vessels of $16.5 million,
impairment loss on goodwill and intangibles of $12.1 million and impairment on assets of the two non-
core businesses sold on January 1, 2018 of $5.1 million recorded in the six months ended December
31, 2017.

Share of results of joint ventures was a profit of $0.9 million for the six months ended
December 31, 2018 and a loss of $11.8 million for the six months ended December 31, 2017. The
improvement for the six months ended December 31, 2018 was primarily due to the recognition of
impairment losses on vessels in our joint ventures for the six months ended December 31, 2017.

We recorded an impairment loss on financial assets of $1.6 million in the second half of 2018 and no
impairment loss on financial assets in the second half of 2017.

Interest income was $1.8 million for the six months ended December 31, 2018 and $3.9 million for the
six months ended December 31, 2017. The decrease in interest income for the six months ended
December 31, 2018 was primarily due to repayment of certain loans to our joint ventures.

Interest expense was $3.6 million for the six months ended December 31, 2018 and $3.5 million for the
six months ended December 31, 2017.

Income tax expense for the six months ended December 31, 2018 was a credit of $0.8 million and for
the six months ended December 31, 2017 was an expense of $1.3 million. The reduction of income tax
expense for the six months ended December 31, 2018 was primarily due to the exclusion of the two
non-core businesses sold on January 1, 2018 from our results since that date.

Loss for the six months ended December 31, 2018 was $7.2 million and loss for the six months ended
December 31, 2017 was $53.9 million.

Results for the Full Years Ended December 31, 2018 and 2017
Our results for the full year ended December 31, 2018 relative to the full year ended December 31,
2017 were impacted by the sale of two non-core businesses on January 1, 2018, which had combined
revenues of $54.9 million, combined cost of sales of $39.3 million and a combined profit of $6.9 million
for the full year ended 2017. In the drybulk business, our handysize and supramax/ultramax operating
days declined from 15,304 days in the 12 months ended December 31, 2017 to 12,810 days for the 12
months ended December 31, 2018, primarily as a result of a reduction of short-term chartered-in days.
Handysize and supramax/ultramax drybulk spot market rates were generally stronger in fiscal 2018
than fiscal 2017, and particularly so in the first half of 2018 compared to the first half of 2017. On the
other hand, while there was an improvement in the medium range tanker market since November 2018,
overall this tanker market was generally weaker in fiscal 2018 than compared to fiscal 2017.

Revenues were $319.0 million for the 12 months ended December 31, 2018 and $409.5 million for the
12 months ended December 31, 2017. Vessel revenues were $303.9 million for the 12 months ended
December 31, 2018 and $386.0 million for the 12 months ended December 31, 2017.

In the drybulk business, handysize total revenues and supramax/ultramax total revenues were
$126.7 million and $147.3 million, respectively, for the 12 months ended December 31, 2018 and
$126.7 million and $157.4 million, respectively, for the 12 months ended December 31, 2017.
Handysize vessel revenues and supramax/ultramax vessel revenues were $116.4 million and $146.1
million, respectively, for the 12 months ended December 31, 2018 and $118.3 million, and $156.5
million, respectively, for the 12 months ended December 31, 2017.

In the tankers business, our medium range tankers and small tankers total revenues were $37.9 million
and $21.2 million, respectively, for the 12 months ended December 31, 2018 and $53.3 million and
$22.7 million, respectively, for the 12 months ended December 31, 2017. Medium range tankers and
small tankers vessel revenues were $37.9 million and $17.4 million, respectively, for the 12 months
ended December 31, 2018 and $42.6 million and $22.7 million, respectively for the 12 months ended
December 31, 2017.

Handysize TCE per day was $9,032 per day for the 12 months ended December 31, 2018 and $7,675
per day for the 12 months ended December 31, 2017. Supramax/ultramax TCE per day was $11,878
per day for the 12 months ended December 31, 2018 and $10,551 per day for the 12 months ended
December 31, 2017.

Medium range tankers TCE per day was $11,258 per day for the 12 months ended December 31, 2018
and $11,691 per day for the 12 months ended December 31, 2017. Small tankers TCE per day was
$11,392 per day for the 12 months ended December 31, 2018 and $13,014 per day for the 12 months
ended December 31, 2017.

Cost of sales was $307.9 million for the 12 months ended December 31, 2018 and $387.4 million for
the 12 months ended December 31, 2017.

In the drybulk business, handysize segment and supramax/ultramax segment cost of sales was
$117.6 million and $146.6 million, respectively, for the 12 months ended December 31, 2018 and
$124.0 million and $155.9 million, respectively, for the 12 months ended December 31, 2017.
Handysize voyage expenses and supramax/ultramax voyage expenses were $57.7 million and $71.1
million, respectively, for the 12 months ended December 31, 2018 and $59.0 million, and $76.5 million,
respectively, for the 12 months ended December 31, 2017. Handysize vessel operating costs and
supramax/ultramax vessel operating costs were $26.5 million and $3.4 million for the 12 months ended
December 31, 2018, respectively, and $26.5 million and $3.3 million, respectively for the 12 months
ended December 31, 2017. Handysize vessel operating costs per day were $5,201 per day for the 12
months ended December 31, 2018 and $5,034 per day for the 12 months ended December 31, 2017.


                                                 
Supramax/ultramax vessel operating costs per day were $4,641 per day for the 12 months ended
December 31, 2018 and $4,519 per day for the 12 months ended December 31, 2017.

The average daily charter-in costs for our long-term supramax/ultramax fleet was $12,886 per day for
the year ended December 31, 2018, and $13,092 per day for the year ended December 31, 2017.

In the tankers business, medium range tankers and small tankers cost of sales were $39.8 million and
$18.6 million, respectively, for the 12 months ended December 31, 2018 and $56.5 million and $18.5
million, respectively, for the 12 months ended December 31, 2017. Medium range tankers voyage
expenses and small tankers voyage expenses were $8.0 million and $3.5 million, respectively, for the
12 months ended December 31, 2018 and $7.6 million and $3.7 million, respectively, for the 12 months
ended December 31, 2017. Medium range tankers vessel operating costs and small tankers vessel
operating costs were $11.3 million and $9.0 million, respectively, for the 12 months ended December
31, 2018 and $13.3 million and $9.5 million, respectively, for the 12 months ended December 31, 2017.
Medium range tankers vessel operating costs per day were $6,888 per day for the 12 months ended
December 31, 2018 and $6,869 per day for the 12 months ended December 31, 2017. Small tankers
vessel operating costs per day were $7,069 per day for the 12 months ended December 31, 2018 and
$7,427 per day for the 12 months ended December 31, 2017.

The average daily charter-in costs for our long-term medium range tanker fleet was $14,995 per day
for the year ended December 31, 2018 and $14,756 per day for the year ended December 31, 2017.

Gross profit was $11.1 million for the 12 months ended December 31, 2018 and $22.1 million for the
12 months ended December 31, 2017. Gross profit for the 12 months ended December 31, 2017
included $15.7 million of gross profit of the two non-core businesses that were sold on January 1, 2018.

Other operating income was $11.5 million for the 12 months ended December 31, 2018 and $4.7 million
for the 12 months ended December 31, 2017. Profit on sale of the two non-core businesses of $3.8
million were recorded in the 12 months ended December 31, 2018 and foreign exchange gains were
$3.5 million higher for the same period.

For the year to December 31, 2018 administrative expenses were $31.6 million, and they were
$32.9 million for the year to December 31, 2017.

Other operating expenses were $5.4 million and $39.2 million in the 12 months ended
December 31, 2018 and 2017, respectively. The decrease in other operating expenses for the six
months ended December 31, 2018 was primarily due to impairment losses on vessels of $16.5 million,
impairment loss on goodwill and intangibles of $12.1 million and impairment loss on assets of disposal
group of $5.1 million for the 12 months ended December 31, 2017.

Share of losses of joint ventures was $0.5 million for the 12 months ended December 31, 2018 and
$12.9 million for the 12 months ended December 31, 2017. The decrease was primarily due to
impairment losses on vessels recorded in the 12 months ended December 31, 2017.

We recorded an impairment loss on financial assets of $1.6 million for the year ended
December 31, 2018 and no impairment loss on financial assets in 2017.

Interest income was $3.8 million for the 12 months ended December 31, 2018 and $7.2 million for the
12 months ended December 31, 2017. Interest on loans to our joint ventures decreased for the 12
months ended December 31, 2018 due to partial repayments of certain borrowings.

For each of the year to December 31, 2018 and the year to December 31, 2017, interest expense was
$6.5 million.
                                               
Income tax expense for the 12 months ended December 31, 2018 was $1.4 million and for the 12
months ended December 31, 2017 was $3.2 million. Income tax expense decreased in 2018 due to the
exclusion of the non-core businesses sold on January 1, 2018 from our results since that date.

Loss for the 12 months ended December 31, 2018 was $20.6 million and loss for the 12 months ended
December 31, 2017 was $60.8 million.

Cash from operating activities was an outflow of $37.4 million for the 12 months ended
December 31, 2018 and an inflow of $3.4 million for the 12 months ended December 31, 2017. Cash
from operating activities for the 12 months ended December 31, 2018 includes capital expenditure on
vessels of $21.4 million, proceeds from vessel sales of $8.3 million and payments to related parties of
$6.0 million. For the 12 months ended December 31, 2017, cash from operating activities includes
capital expenditure on vessels of $5.2 million, proceeds from vessel sales of $17.7 million and
payments to related parties of $5.0 million.

Cash generated from (used in) investing activities was an inflow of $40.0 million for the 12 months
ended December 31, 2018 and an outflow of $2.1 million for the 12 months ended December 31, 2017.
Cash generated from (used in) investing activities was impacted by the proceeds from the sales of the
two non-core businesses in the 12 months ended December 31, 2018 of $25.3 million and payments
received from related parties of $14.1 million.

Cash used in financing activities was an outflow of $11.9 million for the 12 months ended December
31, 2018 and an outflow of $19.8 million for the 12 months ended December 31, 2017. Cash used in
financing activities in the 12 months ended December 31, 2018 was primarily impacted by the
repayment of loans from related parties of $8.4 million, movement of cash to restricted cash of $8.6
million and a net inflow of $6.8 million from the incurrence of new debt and the repayment of existing
debt. Cash used in financing activities in the 12 months ended December 31, 2017 was primarily
impacted by the issuance of equity to Grindrod Limited of $15.0 million and repayment of loans from
related parties of $42.0 million.

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 $33.5 million of cash and cash equivalents as at December 31, 2018,
which is after deducting $13.8 million of restricted cash which is pledged to certain banks to secure
loans and other credit facilities. As of December 31, 2018, we had cash and cash equivalents of $47.3
million including the $13.8 million of restricted cash.


Conference Call Details

On Thursday, February 28, 2019 at 8:00 a.m. Eastern Savings Time / 3:00 p.m. South African Standard
Time / 9:00 p.m. Singapore Time, the Company's management will host a conference call and webcast
to discuss the earnings results.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers:
+866 966 1396 (US Toll Free Dial In), +0800 376 7922 (UK Toll Free Dial In), +800 852 6250 (Singapore
Toll Free Dial In), or +0800 014 553 (South Africa Toll Free Dial In), +44 (0)2071 928000 (International
Standard Dial In). Please enter code: 9069683.
                                              
An audio replay of the conference call will be available until Thursday, March 7, 2019, by dialing +866
331 1332 (US Toll Free Dial In), +65 3158 3995 (Singapore Dial In), +44 (0)3333 009785 (International
Standard Dial In). Access code: 9069683.

Audio Webcast - Slides Presentation

There will be concurrent live and then archived slides and audio webcast of the conference call,
accessible via the internet through the Grindrod Shipping website www.grinshipping.com. Participants
to the live webcast should register on the website approximately 10 minutes prior to the start of the
webcast.

The slide presentation of the results for the second half and full year ended December 31, 2018 will be
accessible in PDF format 10 minutes prior to the conference call and webcast on the Investor Relations
section of our website located at www.grinshipping.com. Participants to the webcast can download the
PDF presentation. The conference call will take participants through the slide presentation on the
website.

About Grindrod Shipping Holdings Ltd.

Grindrod Shipping owns and operates a diversified fleet of owned and long-term and short-term
chartered-in drybulk vessels and product tankers. The drybulk business, which operates under the
brand “Island View Shipping” (“IVS”) includes a fleet of 18 handysize drybulk carriers and 12
supramax/ultramax drybulk carriers on the water with five ultramax drybulk carriers under construction
in Japan due be delivered in 2019 and 2020. The tanker business, which operates under the brand
“Unicorn Shipping” (“Unicorn”) includes a fleet of eight medium range tankers and three small tankers.
The Company is based in Singapore, with offices in London, Durban, Tokyo, Cape Town and
Rotterdam. Grindrod Shipping is listed on NASDAQ under the ticker “GRIN” and on the JSE under the
ticker “GSH”.
                                              
Fleet Table

The following table sets forth certain summary information regarding our fleet as of the date of
this press release:
Drybulk Carriers – Owned Fleet (24 Vessels)
                                                                  Ownership
 Vessel Name                 Built     Country of Build   DWT     Percentage    Type of Employment
 Handysize – Eco
 IVS Tembe(3)                 2016      Japan           37,740      33.5%       IVS Commercial(8)
 IVS Sunbird(3)               2015      Japan           33,400      33.5%       IVS Handysize Pool
 IVS Thanda(3)                2015      Japan           37,720      33.5%       IVS Commercial(8)
 IVS Kestrel(3)               2014      Japan           32,770      33.5%       IVS Handysize Pool
 IVS Phinda(3)                2014      Japan           37,720      33.5%       IVS Commercial(8)
 IVS Sparrowhawk(3)           2014      Japan           33,420      33.5%       IVS Handysize Pool
 Handysize
 IVS Merlion                  2013      China           32,070      100%        IVS Handysize Pool
 IVS Raffles                  2013      China           32,050      100%        IVS Handysize Pool
 IVS Ibis                     2012      Japan           28,240      100%        IVS Handysize Pool
 IVS Kinglet                  2011      Japan           33,130      100%        IVS Handysize Pool
 IVS Magpie                   2011      Japan           28,240      100%        IVS Handysize Pool
 IVS Orchard                  2011      China           32,530      100%        IVS Handysize Pool
 IVS Knot                     2010      Japan           33,140      100%        IVS Handysize Pool
 IVS Sentosa                  2010      China           32,700      100%        IVS Handysize Pool
 IVS Triview(1)               2009      Japan           32,280       51%        IVS Handysize Pool
 IVS Kingbird                 2007      Japan           32,560      100%        IVS Handysize Pool
 IVS Kawana                   2005      Japan           32,640      100%        IVS Handysize Pool
 IVS Nightjar                 2004      Japan           32,320      100%        IVS Handysize Pool
 Supramax/Ultramax – Eco
 IVS Swinley Forest(3)        2017      Japan           60,490      33.5%       IVS Supramax Pool
 IVS Gleneagles(3)            2016      Japan           58,070      33.5%       IVS Supramax Pool
 IVS North Berwick(3)         2016      Japan           60,480      33.5%       IVS Supramax Pool
 IVS Bosch Hoek(3)            2015      Japan           60,270      33.5%       IVS Supramax Pool
 IVS Hirono(3)                2015      Japan           60,280      33.5%       IVS Supramax Pool
 IVS Wentworth(3)             2015      Japan           58,090      33.5%       IVS Supramax Pool

 Drybulk Carriers – Long Term Charter-In Fleet (6 Vessels)
                                                                  Charter-In
 Vessel Name                 Built     Country of Build   DWT      Period       Type of Employment
             (7)
 IVS Hayakita                 2016      Japan           60,400      2023-26(2)  IVS Supramax Pool
 IVS Windsor                  2016      Japan           60,280      2023-26(2)  IVS Supramax Pool
 IVS Augusta(7)               2015      Philippines(4)  57,800      2020-22(2)  IVS Supramax Pool
 IVS Pinehurst(7)             2015      Philippines(4)  57,810      2020-22(2)  IVS Supramax Pool
 IVS Crimson Creek            2014      Japan           57,950      2019-21(2)  IVS Supramax Pool
 IVS Naruo(7)                 2014      Japan           60,030      2021-24(2)  IVS Supramax Pool

Drybulk Carriers Under Construction – Owned Fleet (2 Vessels)
                                                                     
 Vessel Name                  Expected   Country of Build    DWT    Ownership
                              Delivery                              Percentage
 Supramax/Ultramax - Eco
 IVS Okudogo                   3Q 2019   Japan             61,000        100%
 IVS Prestwick                 3Q 2019   Japan             61,000        100%

 Drybulk Carriers Under Construction – Long Term Charter-In Fleet (3 Vessels)
                               
 Vessel Name                   Expected   Country of Build   DWT   Charter-In Period
                               Delivery
 Supramax/Ultramax-Eco
 IVS Phoenix                    2Q 2019   Japan             60,000     2022-24(2)
 IVS Pebble Beach(7)            3Q 2020   Japan             62,000     2022-24(2)
 IVS Atsugi(7)                  3Q 2020   Japan             62,000     2022-24(2)

Tankers – Owned Fleet (11 Vessels)(9)

                                                                       
 Vessel Name          Built   Country of       DWT      IMO           Ownership     Type of Employment
                               Build                    Designation   Percentage

 Medium Range Tankers – Eco
 Matuku                2016    South Korea     50,140    II,III        100%        Bareboat Charter (Expires 2020-
                                                                                   22) (2)
 Leopard Moon          2013    South Korea     50,000    III           100%        Vitol Commercial(6)
 Leopard Sun           2013    South Korea     50,000    III           100%        Vitol Commercial(6)
 Medium Range Tankers
 Lavela(5)             2010    South Korea     40,100    III            50%        Handy Tanker Pool
 Rhino                 2010    South Korea     39,710    II, III       100%        Handy Tanker Pool
 Inyala                2008    South Korea     40,040    III           100%        Handy Tanker Pool
 Small Product Tankers
 Umgeni                2011    China           16,480    II, III       100%        Brostrom Tanker Pool
 Kowie                 2010    China           16,890    II, III       100%        Brostrom Tanker Pool
 Breede                2009    China           16,900    II, III       100%        Spot Market and COA

 Tankers – Long Term Charter-in Fleet (2 Vessels)
                              Country of                              
 Vessel Name          Built    Build           DWT        IMO          Charter-In  Type of Employment
                                                        Designation    Period
 Medium Range Tankers – Eco
 Doric Breeze         2013     South Korea     51,570    II, III      2Q 2020      Vitol Commercial(6)
 Doric Pioneer        2013     South Korea     51,570    II, III      1Q 2020      Vitol Commercial(6)



     (1)
           Owned through a joint venture with Mitsui & Co Ltd. in which we have a 51% interest.
     (2)
           Expiration date range represents the earliest and latest redelivery periods due to extension options.
     (3)
           Owned through a joint venture with Regiment Capital Ltd. and Sankaty European Investments III, S.a.r.l. in which we have a 33.5%
           interest.
     (4)
           Constructed at Tsuneishi Cebu Shipyard, a subsidiary of Tsuneishi Shipbuilding of Japan.
     (5)
           In February 2019 the joint venture with Engen Petroleum Limited, in which we have a 50% interest, entered into an agreement to
           sell the medium range tanker Lavela to a third party. The vessel is scheduled to deliver to her new owners during March 2019.
     (6)
           Our eco Medium Range product tankers, other than Matuku, are commercially managed by Mansel Limited. Mansel, an affiliate
           of Vitol, procures shipping for various oil cargoes traded by Vitol.
     (7)
           Includes purchase options for Grindrod Shipping. For IVS Augusta and IVS Pinehurst, we have the option to purchase either, but
           not both, of these vessels of our choice.
     (8)
           Commercially managed by us alongside the IVS Handysize Pool.
     (9)
           Fleet table does not include the remaining vessel owned by the Leopard Tankers joint venture, which is expected to be delivered
           to Vitol imminently.

Selected Historical and Statistical Data of Our Operating Fleet(1)

Set forth below are selected historical and statistical data of our operating fleet for the six months ended
December 31, 2018 and 2017, and the 12 months ended December 31, 2018 and 2017, that we believe
may be useful in better understanding our operating fleet's financial position and results of operations.
This table contains certain information regarding TCE per day, which is a non-GAAP measure. For a
discussion and reconciliation of these measures, see "Non-GAAP Financial Measures" at the end of
this press release.

                                          Six months ended December 31,    Year ended December 31,
(In U.S. dollars where indicated)            2018             2017          2018          2017

Drybulk Carriers Business
Handysize Segment ............
Calendar days(2) .............              3,411             4,010        6,704          7,942
Available days(3) ............              3,382             3,977        6,565          7,840
Operating days(4) .............             3,366             3,887        6,495          7,720
  Owned fleet operating days(5)             2,576             2,556        4,915          5,114
   Long-term charter-in days(6)                40               184          221            365
   Short-term charter-in days(7)              750             1,147        1,359          2,241
Fleet Utilization(8)...........                99.5%             97.7%        98.9%          98.5%
Handysize Segment Average Daily Results
TCE per day (9) .....................   $   9,066      $      8,422   $    9,032      $   7,675
Vessel operating costs per day(10)....  $   5,167      $      5,124   $    5,201      $   5,034
Long-term charter-in costs per day(11)  $   8,600      $      8,600   $    8,600      $   8,600
Supramax/Ultramax Segment
Calendar days(2) ..................         2,930             3,864        6,401          7,702
Available days(3) .................         2,922             3,864        6,345          7,702
Operating days(4) .................         2,913             3,789        6,315          7,584
   Owned fleet operating days(5)              361               349          704            692
   Long-term charter-in days(6)             1,103             1,257        2,299          2,524
   Short-term charter-in days(7) ..         1,449             2,183        3,312          4,368
Fleet Utilization(8)...............            99.7%            98.1%         99.5%          98.5%
Supramax/Ultramax Segment Average Daily
   Results
TCE per day (9) .....................   $  12,795      $     10,639   $   11,878      $  10,551
Vessel operating costs per day(10)..... $   4,667      $      4,592   $    4,641      $  4, 519
Long-term charter-in costs per day(11)  $  12,668      $     13,095   $   12,866      $  13,092

Tankers Business
Medium Range Tankers Segment
Calendar days(2) .......................... 1,375             1,505        2,733          3,055
Available days(3) ......................... 1,375             1,460        2,721          2,999
Operating days(4) ......................... 1,349             1,460        2,660          2,994
  Owned fleet operating days(5) ...........   808               907        1,587          1,893
   Long-term charter-in days(6) ...........   541               553        1,073          1,101
   Short-term charter-in days(7) .............. -                 -            -              -
Fleet Utilization(8)...........................98.1%            100%          97.8%         100%
Medium Range Tanker Segment Average Daily
   Results
TCE per day (9) ........................ $ 10,950      $     10,592    $  11,258      $  11,691
Vessel operating costs per day(10)...... $  6,502      $      6,806    $   6,888      $   6,869
Long-term charter-in costs per day(11) . $ 14,972      $     14,358    $  14,995      $  14,756

                                        Six months ended December 31,    Year ended December 31,
(In U.S. dollars where indicated)          2018                 2017    2018               2017

Small Tanker Segment
Calendar days(2) ...................         634                654        1,268          1,469
Available days(3) .......................    624                646        1,234          1,461
Operating days(4)                            623                646        1,223          1,461                         
  Owned fleet operating days(5) ............ 623                630        1,223          1,264
    Long-term charter-in days(6) ............  -                 16            -            197
    Short-term charter-in days(7) .........    -                  -            -              -
Fleet Utilization(8)......................... 99.8%             100%          99.1%          99.0%
Small Tanker Segment Average Daily Results
TCE per day (9) .......................$  11,453        $    13,458     $ 11,392       $ 13,014
Vessel operating costs per day(10)...  $   6,390        $     7,286     $  7,069       $  7,427
Long-term charter-in costs per day(11) $       -        $    10,938     $      -       $ 10,905

       (1)
              Segment historical and statistical data of our operating fleet include the proportionate share of joint ventures which is not reflected
              in our combined results of operations.
       (2)
              Calendar days: total calendar days the vessels were in our possession for the relevant period.
       (3)
              Available days: total number of calendar days a vessel is in our possession for the relevant period after subtracting off-hire days for
              scheduled drydocking and special surveys. We use available days to measure the number of days in a relevant period during which
              vessels should be available for generating revenues.
       (4)
              Operating days: 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 revenues.
       (5)
              Owned fleet operating days: the number of operating days in which our owned fleet is operating for the relevant period.
       (6)
              Long-term charter-in days: the number of operating days in which our long-term charter-in fleet is operating for the relevant period.
              We regard chartered-in vessels as long-term charters if the period of the charter that we initially commit to is 12 months or more.
              Once we have included such chartered-in vessels in our Fleet, we will continue to regard them as part of our Fleet until the end of
              their chartered-in period, including any period that the charter has been extended under an option, even if at a given time the
              remaining period of their charter may be less than 12 months.
       (7)
              Short-term charter-in days: the number of operating days for which we have chartered-in third party vessels for durations of less
              than one year for the relevant period.
       (8)
              Fleet utilization: the percentage of time that vessels are available for generating revenue, determined by dividing the number of
              operating days during a relevant period by the number of available days during that period. We use fleet utilization to measure a
              company’s efficiency in technically managing its vessels.
       (9)
              TCE per day: vessel revenues less voyage expenses during a relevant period divided by the number of operating days during the
              period. The number of operating days used to calculate TCE revenue per day includes the proportionate share of our joint ventures’
              operating days and includes charter-in days. See “Non-GAAP Financial Measures” at the end of this press release.
       (10)
              Vessel operating costs per day: Vessel operating costs per day represents vessel operating costs divided by the number of calendar
              days for owned vessels. The vessel operating costs and the number of calendar days used to calculate vessel operating costs per
              day includes the proportionate share of our joint ventures’ calendar day and excludes charter-in costs and charter-in days.
       (11)
              Long-term charter-in costs per day: Charter hire expenses associated with long-term charter-in vessels divided by long-term charter-
              in days for the relevant period.

The tables below presents the breakdown of charter hire expense into long-term charter hire
expense and short-term charter hire expense for the six months to December 31, 2018 and 2017, and
for the 12 months to December 31, 2018 and 2017:
                                                 Six months ended December 31,

                                                   2018                              2017

                                                             Charter                            Charter
                                                  Short-      Hire                   Short-      Hire
(In thousands of U.S. dollars)       Long-term     term      Expense    Long-term    term       Expense


Handysize ............................. 348       7,325       7,673       1,583     11,053      12,636
Supramax/ultramax ...................13,973      18,775      32,748      16,461     21,266      37,727
Medium Range Tankers .............    8,100           -       8,100       7,940          -       7,940
Small Tankers ........................... -           -           -         175          -         175
Other ................................                            -                              5,487
Adjustments(1) .............................                 (2,153)                              (465)
                                                             46,368                             63,500


                                                       Year ended December 31,

                                                   2018                               2017

                                                             Charter                             Charter
                                                   Short-     Hire                    Short-      Hire
(In thousands of U.S. dollars)        Long-term    term     Expense      Long-term    term       Expense


Handysize ...........................  1,904     14,187      16,091        3,139     19,634           22,773
Supramax/ultramax .................   29,580     39,848      69,428       33,038     40,298           73,336
Medium Range Tankers .............    16,090          -      16,090       16,257          -           16,257
Small Tankers ...........................  -          -           -        2,148          -            2,148
Other ..........................................              1,468                                   14,054
Adjustments(1) .............................                 (2,429)                                    (820)
                                                            100,648                                  127,748


              (1)
                      Charter hire cost incurred by the joint ventures are included within the operating segment information on a proportionate
                      consolidation basis. Accordingly, joint ventures’ proportionate financial information are adjusted out to reconcile to the
                      unaudited interim condensed consolidated and combined financial statements.

Unaudited Condensed Consolidated and Combined Statement of Financial Position


                                  December 31, 2018        December 31, 2017

                                       US$’000                  US$’000

ASSETS

Current assets

Cash and cash equivalents               47,263                   46,522

 Trade receivables                      12,034                   13,399

 Contract assets                         1,959                        -

 Other receivables and prepayments      17,902                   17,187

 Due from related parties               13,516                   26,998

 Loans to joint ventures                23,803                   18,180

 Derivative financial instruments            -                      123

 Inventories                            10,841                    9,078

 Current tax asset                           -                      761

                                       127,318                  132,248

 Assets classified as held for sale      7,258                   54,954

 Total current assets                  134,576                  187,202

 Non-current assets

 Other receivables and prepayments           -                       72

 Loans to joint ventures                     -                    7,301

 Ships, property, plant and equipment  249,602                  238,592

 Interest in joint ventures             54,560                   64,296

 Intangible assets                          41                       61

 Goodwill                                7,351                    8,419

 Deferred tax assets                     1,497                    1,179

 Total non-current assets              313,051                  319,920

 Total assets                          447,627                  507,122


                                December 31, 2018         December 31, 2017

                                      US$’000                   US$’000

LIABILITIES AND EQUITY

Current liabilities

Bank loans                              18,323                    87,964

Trade and other payables                22,364                    28,354

Contract liability                       4,223                         -

Provisions                               1,578                     1,270

Due to related parties                   6,238                    16,930

Derivative financial instruments           867                       138

Bank overdrafts                              -                     4,028

Income tax payable                       3,073                     3,551

                                        56,666                   142,235

Liabilities associated with assets

  held for sale                              -                    21,014

Total current liabilities               56,666                   163,249




                                     
                                December 31, 2018       December 31, 2017

                                       US$’000                 US$’000

Non-current liabilities

Bank loans                              96,133                  20,790

Retirement benefit obligation            1,922                   2,180

Trade and other payables                   403                   1,167

Total non-current liabilities           98,458                  24,137



Capital and reserves

Share capital                          320,683                        *
Parent invested capital                      -                  313,978

Other reserves                         (21,140)                   5,758

Accumulated losses                      (7,040)                       -

Equity attributable to owners of the

 company                               292,503                  319,736



Total equity and liabilities           447,627                  507,122



      * Amount is less than US$1.00


Unaudited Condensed Consolidated and Combined Statement of Profit or Loss


                                           For the six months ended        For the twelve months ended
                                                  December 31,                  December 31,

                                               2018           2017              2018            2017

                                              US$’000        US$’000            US$’000        US$’000



Revenue                                        168,177            215,469      319,018        409,522

Voyage expenses                                (80,192)           (84,463)    (151,705)      (166,924)

Vessel operating costs                         (16,313)           (20,844)     (32,657)       (40,837)

Charter hire                                   (46,368)           (63,500)    (100,648)      (127,748)

Depreciation and amortization                   (7,445)            (8,343)     (14,094)       (17,975)

Other expenses                                  (1,500)            (8,391)      (1,146)       (16,364)

Cost of ship sale                               (7,675)           (17,560)      (7,675)       (17,560)

Gross profit                                     8,684             12,368       11,093         22,114



Other operating income                            3,427             2,794         11,459        4,696

Administrative expenses                         (14,307)           (19,333)      (31,599)     (32,868)

Other operating expenses                         (3,370)           (37,036)       (5,437)     (39,198)

Share of income/(losses) of joint ventures          918            (11,758)         (454)     (12,946)

Impairment loss recognized on financial assets   (1,583)                 -        (1,583)           -

Interest income                                   1,842              3,902         3,787        7,164

Interest expense                                 (3,556)            (3,469)       (6,517)      (6,548)

Loss before taxation                             (7,945)           (52,532)      (19,251)     (57,586)



Income tax                                          758             (1,328)       (1,389)      (3,226)

Loss for the period                              (7,187)           (53,860)      (20,640)     (60,812)




                                                    
 Loss per share:                                    US$               US$          US$           US$

 Basic and diluted, loss for the period attributable to
 ordinary equity holders of the company(1)
                                                  (0.38)             (2.83)       (1.08)       (3.19)
 Diluted loss per share for the period attributable to
 ordinary equity holders of the company(2)
                                                  (0.36)             (2.83)        (1.04)      (3.19)


(1)
    For comparative purposes, the calculations of basic and diluted loss per share for the periods ending December 31, 2017 are based on
19,063,833 ordinary shares issued and outstanding as at June 18, 2018.
(2)
    Diluted loss per share for the periods ended December 31, 2018 was calculated based on 19,806,833 ordinary shares taking into account
the 743,000 ordinary shares that, as at the date of this press release, may at various future dates be issued under our Forfeitable Share Plan
(“FSP”). The award of the shares under our FSP is subject to vesting conditions and, at the Company’s discretion, new shares or treasury
shares may be used for the FSP.
                                                             
Unaudited Summary Statement of Cash Flows

The following table presents an unaudited summary statement of cash flows for each of the years
ended December 31, 2018 and 2017:
                                                                          Year ended December 31,
(In thousands of U.S. dollars)                                               2018          2017

Cash (used in) generated from operating activities ............. $        (37,360)   $     3,375
Cash generated from (used in) investing activities ..............          40,024         (2,062)
Cash used in financing activities ........................                (11,887)       (19,840)
Decrease in cash and cash equivalents .................................... (9,223)       (18,527)
Cash and cash equivalents, beginning of period ......................      45,245         62,470
Differences in translation ............................................... (2,524)         1,302
Cash and cash equivalents, end of period.................................. 33,498         45,245



The cash and cash equivalents at the end of period reflected in the unaudited summary statement of
cash flows above is reconciled in the table below to the cash and cash equivalents reflected on our
unaudited condensed consolidated and combined statement of financial position set out in the section
of this press release headed “Unaudited Condensed Consolidated and Combined Statement of
Financial Position”.

                                                                           Year ended December 31,
(In thousands of U.S. dollars)                                               2018          2017

Restricted cash(1) ................................................ $      13,765           5,183
Cash on hand ....................................................             438             347
Cash at bank ..............................................................33,060          40,992
Cash and cash equivalents ................................................ 47,263          46,522
Less
Bank overdrafts ............................................................    -          (4,028)
Restricted cash(1) ...................................................... (13,765)         (5,183)
                                                                           33,498          37,311
Add: Cash and cash equivalents included in disposal group held for sale ..      -           7,934

Cash and cash equivalents in the unaudited summary statement of cash flows 33,498          45,245

(1)
      Restricted cash is bank balances pledged to certain banks to secure loans and other banking facilities of the Company and its subsidiaries.


Certain Unaudited Financial Information of Our Joint Ventures

The table below sets out certain unaudited financial information of our joint ventures as at and for the
year ended December 31, 2018. Our ownership interest in each of the joint ventures is set out at the
bottom of the table.

                                                                        As at / For the Year ended December 31, 2018
                                                                         Leopard        Petrochemica     Tri-View      Island Bulk
(In thousands of U.S. dollars)                          IVS Bulk(1)     Tankers(2)       l Shipping(3)  Shipping(4)     Carriers(5)


Financial position items as at
   December 31, 2018
   Non-current assets .........................             268,247          108,000          14,484         11,284              403
   Non-current liabilities ......................          (116,314)               -               -              -                -
   Current liabilities.............................         (21,602)        (116,456)         (7,050)        (8,040)          (3,499)
   Cash and cash equivalents ............                    26,232            3,899           5,623          2,143               56


Summary EBITDA(6) reconciliation

Profit / (Loss) for the year ................                 1,111            5,079          (6,872)           920           (1,003)
Adjusted for:
  Income tax credit ............................                  -                -               -            (11)               -
  Interest income ..............................                (24)               -             (76)             -                -
  Interest expense.............................               9,666            4,765             519            328                -
  Depreciation and amortization ........                     12,894                3             957              -                -
EBITDA ..............................................        23,647            9,847          (5,472)         1,237          (1,003)


Company’s ownership interest ............                     33.5%           50.0%           50.0%          51.0%            65.0%
(1)
    A joint venture with Regiment Capital Ltd. and Sankaty European Investments III, S.a.r.l.
(2)
    A joint venture with Vitol Shipping Singapore Pte. Ltd.
(3)
    A joint venture with Engen Petroleum Limited
(4)
    A joint venture with Mitsui & Co. Ltd.
(5)
    A joint venture with Rogers Shipping Pte. Ltd.
(6)
    EBITDA is a non-GAAP financial measure. For a discussion of non-GAAP financial measures, including EBITDA, refer to the section of this
press release headed “Non-GAAP Financial Measures”.


Segment Results of Operations(1)
                                                                                 Six month ended December 31,          Year ended December 31,
(In thousands of U.S. dollars)                                                      2018              2017             2018              2017

Drybulk Carriers Business
Handysize Segment
Revenue ..................................................................   $    72,881    $        72,323    $     126,709    $       126,731
Cost of sales............................................................        (66,953)           (68,317)        (117,554)          (123,963)
Supramax/Ultramax Segment
Revenue ..................................................................   $    73,647    $        78,739    $     147,322    $       157,428
Cost of sales............................................................        (71,857)           (79,153)        (146,612)          (155,907)

Tanker Business
Medium Range Tanker Segment
Revenue ..................................................................   $   18,990     $        29,722    $      37,911    $        53,307
Cost of sales............................................................       (20,086)            (33,032)         (39,795)           (56,532)
Small Tanker Segment
Revenue ..................................................................   $   12,209     $        10,927    $      21,175    $        22,740
Cost of sales............................................................       (10,263)            (8,142)          (18,641)           (18,549)
 
(1) 
  Segment results of operations include the impact of the proportionate share of joint ventures which is not reflected in our condensed
consolidated and combined results of operations.



Non-GAAP Financial Measures
The financial information included in this press release includes certain ‘‘non-GAAP financial
measures’’ as such term is defined in SEC regulations governing the use of non-GAAP financial
measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s operating
performance, financial position or cash flows that excludes or includes amounts that are included in, or
excluded from, the most directly comparable measure calculated and presented in accordance with
IFRS. For example, non-GAAP financial measures may exclude the impact of certain unique and/or
non-operating items such as acquisitions, divestitures, restructuring charges, large write-offs or items
outside of management’s control. Management believes that the non-GAAP financial measures
described below provide investors and analysts useful insight into our financial position and operating
performance.


TCE Revenue and TCE per day.

TCE revenue is defined as vessel revenues less voyage expenses. Such TCE revenue, divided by the
number of operating days during the period, is TCE per day. Vessel revenues and voyage expenses
as reported for our operating segments include a proportionate share of vessel revenues and voyage
expenses attributable to our joint ventures based on our proportionate ownership of the joint ventures.
The number of operating days used to calculate TCE per day also includes the proportionate share of
our joint ventures’ operating days and also includes charter-in days.

TCE per day is a common 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 have to cover voyage costs and
are generally not expressed in per-day amounts while charter hire rates for vessels on time charters do
not cover voyage costs and generally are expressed in per day amounts.

                                                                                     
Below is a reconciliation from TCE revenue to revenue for the six month periods to December 31, 2018
and 2017:

                                                                                 Six months ended December 31,
                                                                      2018                                         2017
                                                                     Voyage           TCE                         Voyage             TCE
(In thousands of U.S. dollars)                         Revenue      Expenses        Revenue       Revenue        Expenses          Revenue
Vessel Revenue
   Handysize .....................................     63,417      (32,902)          30,515        64,528         (31,793)          32,735
   Supramax/ultramax .......................           73,015      (35,743)          37,272        78,214         (37,902)          40,312
   Medium Range Tankers ................               18,965       (4,193)          14,772        18,843          (3,378)          15,465
   Small Tankers ...............................        8,429       (1,294)           7,135        10,927          (2,233)           8,694
   Other drybulk carriers ....................              3                                      27,285
   Other tankers ................................       2,613                                       7,287
Other revenue ...................................      11,739                                      21,098
Adjustments(1) ....................................   (10,004)                                    (12,713)

Revenue ............................................  168,177                                    215,469

(1)
  Vessel revenue earned and voyage expenses incurred by the joint ventures are included within the operating segment information on a
proportionate consolidated basis. Accordingly, joint ventures proportionate financial information are adjusted out to reconcile to the unaudited
condensed consolidated and combined financial statements.


Below is a reconciliation from TCE revenue to revenue for the 12 month periods to December 31, 2018
and 2017:

                                                                                    Year ended December 31,
                                                                      2018                                         2017
                                                                     Voyage           TCE                         Voyage             TCE
(In thousands of U.S. dollars)                         Revenue      Expenses        Revenue       Revenue        Expenses          Revenue
Vessel Revenue
   Handysize .....................................       116,372      (57,707)        58,665      118,262       (59,004)          59,258
   Supramax/ultramax .......................             146,097      (71,087)        75,010      156,517       (76,497)          80,020
   Medium Range Tankers ................                  37,911       (7,966)        29,945       42,561        (7,555)          35,006
   Small Tankers ...............................          17,395       (3,463)        13,932       22,740        (3,725)          19,015
   Other drybulk carriers ....................             1,218                                   56,644
   Other tankers ................................          5,183                                   14,186
Other revenue ...................................         15,163                                   23,553
Adjustments(1) ....................................      (20,321)                                 (24,941)

Revenue ............................................   319,018                                    409,522

(1)
  Vessel revenue earned and voyage expenses incurred by the joint ventures are included within the operating segment information on a
proportionate consolidated basis. Accordingly, joint ventures proportionate financial information are adjusted out to reconcile to the unaudited
condensed consolidated and combined financial statements.



EBITDA and Adjusted EBITDA.

EBITDA is defined as earnings before income tax expense or credit, interest income, interest expense,
share of loss in joint ventures and depreciation and amortization. Adjusted EBITDA is EBITDA adjusted
to exclude the items set forth in the table below, which represent certain non-recurring, non-operating
or other items that we believe are not indicative of the ongoing performance of our core operations.

EBITDA and Adjusted EBITDA are used by analysts in the shipping industry as common performance
measures to compare results across peers. EBITDA and Adjusted EBITDA are not items recognized
by IFRS, and should not be considered in isolation or used as alternatives to loss for the period or any
other indicator of our operating performance.

Our presentation of EBITDA and Adjusted EBITDA is intended to supplement investors' understanding
of our operating performance by providing information regarding our ongoing performance that exclude
items we believe do not directly affect our core operations and enhancing the comparability of our

                                                                     
ongoing performance across periods. Our management considers EBITDA and Adjusted EBITDA to
be useful to investors because such performance measures provide information regarding the
profitability of our core operations and facilitate comparison of our operating performance to the
operating performance of our peers. Additionally, our management uses EBITDA and Adjusted EBITDA
as measures when reviewing our operating performance. While we believe these measures are useful
to investors, the definitions of EBITDA and Adjusted EBITDA used by us may not be comparable to
similar measures used by other companies.



       The table below presents the reconciliation between loss for the period to EBITDA and Adjusted
EBITDA for the six month period ended December 31, 2018 and the comparative period ended
December 31, 2017; and for the 12 month period ended December 31, 2018 and the comparative
period ended December 31, 2017:
                                                         Six month
                                                       ended December 31,           Year ended December 31,

(In thousands of U.S. dollars)                        2018           2017            2018            2017


Loss for the Period .......................... $    (7,187)   $    (53,860)   $    (20,640)   $     (60,812)
Adjusted for:
  Income tax expense ...........................      (758)          1,328           1,389            3,226
  Interest income ..................................(1,842)         (3,902)         (3,787)          (7,164)
  Interest expense...................................3,556           3,469           6,517            6,548
  Impairment loss recognized on financial assets ....1,583               -           1,583                -
  Share of (profit)/losses of joint ventures .........(918)         11,758             454           12,946
  Depreciation and amortization .....................7,529           9,494          14,292           19,680

EBITDA ............................................. 1,963         (31,713)           (192)         (25,576)

Adjusted for ......................................
  Listing costs ............................... $     (497)    $         -     $      3,582    $         -
  Impairment loss on ships ............................. -          16,503                -         16,503
  Impairment loss on goodwill and intangibles............-          12,119                -         12,119
  Impairment loss on assets of disposal group ........   -           5,092                -          5,092
  Gain on disposals of business .......................  -               -           (3,255)             -
  Gain on deemed disposal of previously held joint 
venture ........                                       111               -             (213)             -



ADJUSTED EBITDA ...................................  1,577           2,001             (78)          8,138




Headline Loss and Headline Loss Per Share.

The Johannesburg Stock Exchange (“JSE”) requires that we calculate and publicly disclose Headline
Loss Per Share and Diluted Headline Loss Per Share. Headline Loss Per Share is calculated using net
income which has been determined based on IFRS. Accordingly, this may differ to the Headline Loss
Per Share calculation of other companies listed on the JSE because these companies may report their
financial results under a different financial reporting framework such as U.S. GAAP.
Headline Loss for the period represents Loss for the period adjusted for the re-measurements that are
more closely aligned to the operating or trading results as set forth below, and Headline Loss Per Share
represents this figure divided by the weighted average number of ordinary shares outstanding for the
period. The table below presents a reconciliation between Loss for the period to Headline Loss for the

                                                                                             24
six month period ended December 31, 2018 and 2017, and the 12 month period ended December 31,
2018 and 2017:


                                                                             Six
                                                                          months ended December 31,        Year ended December 31,
(In thousands of U.S. dollars, other than per share data which is
in U.S. dollars)                                                          2018              2017            2018           2017
Reconciliation between loss for the period and headline earnings:
Loss for the period .............................................$      (7,187)   $      (53,860)    $   (20,640) $      (60,812)
Adjusted for:
- Impairment loss on joint venture’s ships ............................  1,439                 -           2,862               -
- Impairment loss on ships ..............................................    -            16,503               -          16,503
- Impairment loss on goodwill and intangibles .............................. -            12,119               -          12,119
- Impairment loss on assets of disposal group .............................. -             5,092               -           5,092
- Gain/loss on disposals of plant and equipment ...........................  -                 -             (63)              2
- Gain on disposals of business ...........................................  -                 -          (3,255)              -
- Gain on deemed disposal of previously held joint venture.................111                 -            (213)              -
- Capital gains tax on sale of businesses ................................ (12)                -           1, 797              -
Headline Loss.......................................................... (5,649)         (20,146)         (19,512)        (27,096)

Number of shares on which the per share figures have been
  calculated....................................................... 19,063,833        19,063,833      19,063,833      19,063,833
  Loss per share ............................................. $         (0.38) $          (2.83) $        (1.08) $        (3.19)
  Headline loss per share....................................  $         (0.30) $          (1.06) $        (1.02) $        (1.42)
Number of shares on which the diluted per share figures have been
  calculated......................................................  19,806,833        19,063,833      19,806,833      19,063,833
  Diluted loss per share ......................................$         (0.36)   $        (2.83) $        (1.04) $        (3.19)
  Diluted headline loss per share ...........................  $         (0.29)   $        (1.06) $        (0.99) $        (1.42)




Forward-Looking Statements

This press release contains forward-looking statements with respect to Grindrod Shipping’s financial
condition, results of operations, cash flows, business strategies, operating efficiencies, competitive
position, growth opportunities, plans and objectives of management, and other matters. These forward
looking statements, including, among others, those relating to our future business prospects, revenues
and income, are necessarily estimates and involve a number of risks and uncertainties that could cause
actual results to differ materially from those suggested by the forward-looking statements. Accordingly,
these forward-looking statements should be considered in light of various important factors, including
those set forth below. Words such as “may,” “expects,” “intends,” “plans,” “believes,” “anticipates,”
“hopes,” “estimates,” and variations of such words and similar expressions are intended to identify
forward-looking statements. These forward-looking statements are based on the information available
to, and the expectations and assumptions deemed reasonable by Grindrod Shipping at the time these
statements were made. Although Grindrod Shipping believes that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be given that such expectations will
prove to have been correct. These statements involve known and unknown risks and are based upon
a number of assumptions and estimates which are inherently subject to significant uncertainties and
contingencies, many of which are beyond the control of Grindrod Shipping. Actual results may differ
materially from those expressed or implied by such forward-looking statements. Important factors that
could cause actual results to differ materially from estimates or projections contained in the forward-
looking statements include, without limitation, Grindrod Shipping’s future operating or financial results;
the strength of world economies, including, in particular, in China and the rest of the Asia-Pacific region;
cyclicality of the drybulk and tanker markets, including general drybulk and tanker shipping market
conditions and trends, including fluctuations in charter hire rates and vessel values; changes in supply
and demand in the drybulk and tanker shipping industries, including the market for Grindrod Shipping’s

                                                                                           
vessels; changes in the value of Grindrod Shipping’s vessels; statements about business strategy and
expected capital spending or operating expenses, including drydocking, surveys, upgrades and
insurance costs; competition within the drybulk and tanker industries; seasonal fluctuations within the
drybulk and tanker industries; Grindrod Shipping’s ability to employ its vessels in the spot market and
its ability to enter into time charters after its current charters expire; general economic conditions and
conditions in the oil and coal industries; Grindrod Shipping’s ability to satisfy the technical, health, safety
and compliance standards of its customers, especially major oil companies and oil producers; the failure
of counterparties to our contracts to fully perform their obligations with Grindrod Shipping; Grindrod
Shipping’s ability to execute its growth strategy; international political and economic condition including
additional tariffs imposed by the United States and China on their respective imports; potential
disruption of shipping routes due to weather, accidents, political events, natural disasters or other
catastrophic events; vessel breakdowns; corruption, piracy, military conflicts, political instability and
terrorism in locations where we may operate; fluctuations in interest rates and foreign exchange rates
including the uncertainty of the continued existence of LIBOR in the future; changes in the costs
associated with owning and operating Grindrod Shipping’s vessels; changes in, and Grindrod
Shipping’s compliance with, governmental, tax, environmental, health and safety regulations; potential
liability from pending or future litigation; Grindrod Shipping’s ability to procure or have access to
financing, its liquidity and the adequacy of cash flows for its operation; the continued borrowing
availability under Grindrod Shipping’s debt agreements and compliance with the covenants contained
therein; Grindrod Shipping’s ability to fund future capital expenditures and investments in the
construction, acquisition and refurbishment of its vessels; Grindrod Shipping’s dependence on key
personnel; Grindrod Shipping’s expectations regarding the availability of vessel acquisitions and its
ability to complete acquisitions as planned; adequacy of Grindrod Shipping’s insurance coverage;
effects of new technological innovation and advances in vessel design; Grindrod Shipping’s ability to
realize the benefits of the separation from Grindrod Limited; Grindrod Shipping’s ability to operate as
an independent entity; and the other factors set out in in Item 3. Key Information-Risk Factors” in our
Registration Statement on Form 20-F filed with the Securities and Exchange Commission. Except as
required by law, Grindrod Shipping undertakes no obligation to update publicly or release any revisions
to these forward-looking statements to reflect events or circumstances after the date of this press
release or to reflect the occurrence of unanticipated events.


 Company Contact:                                       Investor Relations / Media Contact:
 Martyn Wade / Stephen Griffiths                        Nicolas Bornozis / Judit Csepregi
 CEO / CFO                                              Capital Link, Inc.
 Grindrod Shipping Holdings Ltd.                        230 Park Avenue, Suite 1536
 200 Cantonment Road, #03-01 Southpoint                 New York, N.Y. 10169
 Singapore, 089763                                      Tel.: (212) 661-7566
 Email: ir@grindrodshipping.com                         Fax: (212) 661-7526
 Website: www.grinshipping.com                          Email: grindrod@capitallink.com


By order of the Board

28 February 2019

Sponsor: Grindrod Bank Limited




                                                  

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