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Fluor and Sargent & Lundy Agree to Collaborate on New Carbon-Free Small Modular Nuclear Reactor Projects

IRVING, Texas–(BUSINESS WIRE)–Fluor Corporation (NYSE: FLR) announced today that the company has reached an agreement with Sargent & Lundy to collaborate with joint marketing and design services for the execution of new NuScale Power small modular nuclear reactor plants in North America.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201116005104/en/

“Fluor has been a leader in serving the nuclear industry for more than 70 years including the design and construction support for more than 25 units, plus nearly 100 million hours of operations and maintenance work,” said Alan Boeckmann, Fluor’s executive chairman. “This collaboration agreement with one of the most respected companies serving the nuclear power industry brings nearly 150 years of combined experience and further solidifies the opportunity to bring new carbon-free energy to the U.S. and North America.”

“The opportunity to team with NuScale and Fluor for the design and construction of small modular reactor plants further extends Sargent & Lundy’s history of being at the forefront of nuclear new generation design,” said Sargent & Lundy Chairman, President and Chief Executive Officer Thomas R. White. “We’re excited to support NuScale’s groundbreaking technology – a simplified, scalable, resilient design that is poised to support global demand.”

Under the new agreement with Sargent & Lundy, Fluor will design the turbine island and balance-of-plant facilities with Sargent & Lundy providing the design for the nuclear island.

NuScale’s groundbreaking Nuclear Regulatory Commission-certified technology is the world’s first and only small modular reactor to gain design certification approval by the U.S. Nuclear Regulatory Commission. Sargent & Lundy and NuScale agreed to work together in late July 2019 with Sargent & Lundy providing standard plant design services as well as architect-engineering support.

In addition to previously announced strategic partners and investors in NuScale, which includes Sargent & Lundy, Fluor and NuScale continue to engage with potential customers, capital investors, manufacturers and other supply chain partners for new small modular reactor development efforts.

About Fluor Corporation

Fluor Corporation (NYSE: FLR) is a global engineering, procurement, fabrication, construction and maintenance company with projects and offices on six continents. Fluor’s 47,000 employees build a better world and provide sustainable solutions by designing, building and maintaining safe, well-executed projects. Fluor is ranked 181 among the Fortune 500 companies. With headquarters in Irving, Texas, Fluor has served its clients for more than 100 years. For more information, please visit www.fluor.com or follow Fluor on Twitter, LinkedIn, Facebook and YouTube.

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Global Media Relations

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Investor Relations

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Fluor and Sargent & Lundy will collaborate on new NuScale Power small modular nuclear reactor plant development in North America. (Photo: Business Wire)

Moderna Announces Longer Shelf Life for its COVID-19 Vaccine Candidate at Refrigerated Temperatures

Vaccine candidate now expected to remain stable at standard refrigerator temperatures of 2° to 8°C (36° to 46°F) for 30 days, up from previous estimate of 7 days

Shipping and long-term storage conditions at standard freezer temperatures of -20°C (-4°F) for 6 months

mRNA-1273 to be distributed using widely available vaccine delivery and storage infrastructure

No dilution required prior to vaccination

CAMBRIDGE, Mass.–(BUSINESS WIRE)–Moderna, Inc. (Nasdaq: MRNA), a biotechnology company pioneering messenger RNA (mRNA) therapeutics and vaccines to create a new generation of transformative medicines for patients, today announced new data showing that mRNA-1273, its COVID-19 vaccine candidate, remains stable at 2° to 8°C (36° to 46°F), the temperature of a standard home or medical refrigerator, for 30 days. Stability testing supports this extension from an earlier estimate of 7 days. mRNA-1273 remains stable at -20° C (-4°F) for up to six months, at refrigerated conditions for up to 30 days and at room temperature for up to 12 hours.

“We believe that our investments in mRNA delivery technology and manufacturing process development will allow us to store and ship our COVID-19 vaccine candidate at temperatures commonly found in readily available pharmaceutical freezers and refrigerators,” said Juan Andres, Chief Technical Operations and Quality Officer at Moderna. “We are pleased to submit these extended stability conditions for mRNA-1273 to regulators for approval. The ability to store our vaccine for up to 6 months at -20° C including up to 30 days at normal refrigerator conditions after thawing is an important development and would enable simpler distribution and more flexibility to facilitate wider-scale vaccination in the United States and other parts of the world.”

Shipping & Long-term Storage: For shipping and longer-term storage, Moderna expects that mRNA-1273 will be maintained at -20°C (-4°F), equal to most home or medical freezer temperatures, for up to 6 months. Using standard freezer temperatures of -20°C (range of -25° to -15°C or -13° to 5°F) is an easier and more established method of distribution and storage than deep freezing and most pharmaceutical distribution companies have the capability to store and ship products at -20°C (-4°F) worldwide.

Refrigeration Storage: After thawing, to facilitate storage at points of administration, Moderna expects that mRNA-1273 will remain stable at standard refrigerated conditions of 2° to 8°C (36° to 46°F) for up to 30 days within the 6-month shelf life. The stability at refrigerated conditions allows for storage at most pharmacies, hospitals, or physicians’ offices.

Room Temperature for Vaccination: Once the vaccine is removed from the refrigerator for administration, it can be kept at room temperature conditions for up to 12 hours.

No Dilution Required at Vaccination Site: The vaccine will not require onsite dilution or special handling, which facilitates vaccination across a range of settings including pharmacies and physicians’ offices.

The Company anticipates that it will continue to gather additional stability information over the coming months to assess whether mRNA-1273 can be shipped and stored under increasingly flexible conditions, which will be described in detail following regulatory approval.

The mRNA-1273 COVID-19 vaccine candidate is Moderna’s tenth mRNA vaccine to enter the clinic. With its experience in prophylactic vaccine development and investments in mRNA platform and delivery technology, Moderna has developed enhanced manufacturing processes, resulting in proprietary lipid nanoparticle technology that Moderna believes will enable the vaccine to be stored at standard pharmaceutical distribution temperatures.

Moderna is working with the U.S. Centers for Disease Control and Prevention (CDC), Operation Warp Speed and McKesson (NYSE: MCK), a COVID-19 vaccine distributor contracted by the U.S. government, as well as global stakeholders to be prepared for distribution of mRNA-1273, in the event that it receives an Emergency Use Authorization and/or similar global authorizations. The Company is also working closely with the U.S. Food and Drug Administration (FDA) to submit data from its ongoing stability testing for approval.

About mRNA-1273

mRNA-1273 is an mRNA vaccine against COVID-19 encoding for a prefusion stabilized form of the Spike (S) protein, which was co-developed by Moderna and investigators from NIAID’s Vaccine Research Center. The first clinical batch, which was funded by the Coalition for Epidemic Preparedness Innovations, was completed on February 7, 2020 and underwent analytical testing; it was shipped to the NIH on February 24, 42 days from sequence selection. The first participant in the NIAID-led Phase 1 study of mRNA-1273 was dosed on March 16, 63 days from sequence selection to Phase 1 study dosing. On May 12, the FDA granted mRNA-1273 Fast Track designation. On May 29, the first participants in each age cohort: adults ages 18-55 years (n=300) and older adults ages 55 years and above (n=300) were dosed in the Phase 2 study of mRNA-1273. On July 8, the Phase 2 study completed enrollment.

Results from the second interim analysis of the NIH-led Phase 1 study of mRNA-1273 in the 56-70 and 71+ age groups were published on September 29 in The New England Journal of Medicine. On July 28, results from a non-human primate preclinical viral challenge study evaluating mRNA-1273 were published in The New England Journal of Medicine. On July 14, an interim analysis of the original cohorts in the NIH-led Phase 1 study of mRNA-1273 was published in The New England Journal of Medicine. mRNA-1273 currently is not approved for use by any regulatory body.

BARDA is supporting the continued research and development of mRNA-1273 with $955 million in federal funding under Contract no. 75A50120C00034. BARDA is reimbursing Moderna for 100 percent of the allowable costs incurred by the Company for conducting the program described in the BARDA contract. The U.S. government has agreed to provide up to $1.525 billion to purchase supply of mRNA-1273 under U.S. Department of Defense Contract No. W911QY-20-C-0100.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including regarding the Company’s development of a potential vaccine (mRNA-1273) against the novel coronavirus, the conditions under which mRNA-1273 can be shipped, stored and administered, and the U.S. government’s potential purchases of mRNA-1273. In some cases, forward-looking statements can be identified by terminology such as “will,” “may,” “should,” “could”, “expects,” “intends,” “plans,” “aims,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. The forward-looking statements in this press release are neither promises nor guarantees, and you should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, many of which are beyond Moderna’s control and which could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These risks, uncertainties, and other factors include, among others: the fact that there has never been a commercial product utilizing mRNA technology approved for use; the fact that the rapid response technology in use by Moderna is still being developed and implemented; the fact that the safety and efficacy of mRNA-1273 has not yet been established; despite having ongoing interactions with the FDA or other regulatory agencies, the FDA or such other regulatory agencies may not agree with the Company’s regulatory approval strategies, components of our filings, such as clinical trial designs, conduct and methodologies, or the sufficiency of data submitted; potential adverse impacts due to the global COVID-19 pandemic such as delays in regulatory review, manufacturing and clinical trials, supply chain interruptions, adverse effects on healthcare systems and disruption of the global economy; and those other risks and uncertainties described under the heading “Risk Factors” in Moderna’s most recent Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission (SEC) and in subsequent filings made by Moderna with the SEC, which are available on the SEC’s website at www.sec.gov. Except as required by law, Moderna disclaims any intention or responsibility for updating or revising any forward-looking statements contained in this press release in the event of new information, future developments or otherwise. These forward-looking statements are based on Moderna’s current expectations and speak only as of the date hereof.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201116005606/en/

Moderna Contacts

Media:

Colleen Hussey

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617-335-1374

[email protected]

Investors:

Lavina Talukdar

Senior Vice President & Head of Investor Relations

617-209-5834

[email protected]

KEYWORDS: Massachusetts United States North America

INDUSTRY KEYWORDS: Health Infectious Diseases Other Health Clinical Trials Pharmaceutical Biotechnology

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Guardant Health, Inc. Announces Proposed Convertible Senior Notes Offering

REDWOOD CITY, Calif.–(BUSINESS WIRE)–
Guardant Health, Inc. (Nasdaq: GH) today announced its intention to offer, subject to market and other conditions, $1,000,000,000 aggregate principal amount of convertible senior notes due 2027 (the “notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). Guardant Health also expects to grant the initial purchasers of the notes an option to purchase, for settlement within a period of 13 days from, and including, the date notes are first issued, up to an additional $150,000,000 principal amount of notes.

The notes will be senior, unsecured obligations of Guardant Health, will accrue interest payable semi-annually in arrears and will mature on November 15, 2027, unless earlier repurchased, redeemed or converted. Noteholders will have the right to convert their notes in certain circumstances and during specified periods. Guardant Health will settle conversions by paying or delivering, as applicable, cash, shares of its common stock or a combination of cash and shares of its common stock, at Guardant Health’s election. The notes will be redeemable, in whole or in part, for cash at Guardant Health’s option at any time, and from time to time, on or after November 20, 2024 and on or before the 25th scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of Guardant Health’s common stock exceeds 130% of the conversion price for a specified period of time. The interest rate, initial conversion rate and other terms of the notes will be determined at the pricing of the offering.

Guardant Health intends to use a portion of the net proceeds from the offering to fund the cost of entering into the capped call transactions described below. Guardant Health intends to use the remainder of the net proceeds from the offering for general corporate purposes and working capital, including increasing investment in research and development and sales and marketing activities to expand its business, as well as general and administrative matters. Guardant Health may also use a portion of the net proceeds to acquire complementary products, technologies, intellectual property or businesses as part of its growth strategy; however, Guardant Health currently does not have any agreements or commitments to complete any such transactions and is not involved in negotiations regarding such transactions. If the initial purchasers exercise their option to purchase additional notes, then Guardant Health intends to use a portion of the additional net proceeds to fund the cost of entering into additional capped call transactions as described below.

In connection with the pricing of the notes, Guardant Health expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers and/or their respective affiliates and/or other financial institutions (the “option counterparties”). The capped call transactions will cover, subject to customary adjustments, the number of shares of common stock initially underlying the notes. The capped call transactions are expected generally to reduce potential dilution to Guardant Health’s common stock upon conversion of the notes or at Guardant Health’s election (subject to certain conditions) offset any cash payments Guardant Health is required to make in excess of the aggregate principal amount of converted notes, as the case may be, with such reduction or offset subject to a cap.

In connection with establishing their initial hedges of the capped call transactions, the option counterparties or their respective affiliates expect to purchase shares of Guardant Health’s common stock and/or enter into various derivative transactions with respect to Guardant Health’s common stock concurrently with or shortly after the pricing of the notes. This activity could increase (or reduce the size of any decrease in) the market price of Guardant Health’s common stock or the notes at that time. In addition, the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to Guardant Health’s common stock and/or purchasing or selling Guardant Health’s common stock or other securities issued by Guardant Health in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and are likely to do so on each exercise date of the capped call transactions, which are expected to occur during the 25 trading day period beginning on the 26th scheduled trading day prior to the maturity date of the notes, or following any termination of any portion of the capped call transactions in connection with any repurchase, redemption or early conversion of the notes). This activity could also cause or avoid an increase or a decrease in the market price of Guardant Health’s common stock or the notes, which could affect a noteholder’s ability to convert the notes and, to the extent the activity occurs during any observation period related to a conversion of the notes, it could affect the number of shares and value of the consideration that a noteholder will receive upon conversion of the notes.

In addition, if any such capped call transaction fails to become effective, whether or not this offering of the notes is completed, the option counterparty party thereto may unwind its hedge positions with respect to Guardant Health’s common stock, which could adversely affect the value of Guardant Health’s common stock and, if the notes have been issued, the value of the notes.

The offer and sale of the notes and any shares of common stock issuable upon conversion of the notes have not been, and will not be, registered under the Securities Act or any other securities laws, and the notes and any such shares cannot be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the notes or any shares of common stock issuable upon conversion of the notes, nor will there be any sale of the notes or any such shares, in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful.

About Guardant Health

Guardant Health is a leading precision oncology company focused on helping conquer cancer globally through use of its proprietary blood tests, vast data sets and advanced analytics. The Guardant Health Oncology Platform leverages capabilities to drive commercial adoption, improve patient clinical outcomes and lower healthcare costs across all stages of the cancer care continuum. Guardant Health has launched liquid biopsy-based Guardant360^®, Guardant360 CDx and GuardantOMNI^® tests for advanced stage cancer patients. These tests fuel development of its LUNAR program, which aims to address the needs of early stage cancer patients with neoadjuvant and adjuvant treatment selection, cancer survivors with surveillance, asymptomatic individuals eligible for cancer screening and individuals at a higher risk for developing cancer with early detection.

Forward-Looking Statements

This press release includes forward-looking statements, including statements regarding the completion, timing and size of the proposed offering, the intended use of the proceeds, the terms of the notes being offered, the anticipated terms of, and the effects of entering into, the capped call transactions described above and the actions of the option counterparties and their respective affiliates. Forward-looking statements represent Guardant Health’s current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Among those risks and uncertainties are market conditions, including market interest rates, the trading price and volatility of Guardant Health’s common stock and risks relating to Guardant Health’s business, including those described in periodic reports that Guardant Health files from time to time with the SEC. Guardant Health may not consummate the proposed offering described in this press release and, if the proposed offering is consummated, cannot provide any assurances regarding the final terms of the offer or the notes or its ability to effectively apply the net proceeds as described above. The forward-looking statements included in this press release speak only as of the date of this press release, and Guardant Health does not undertake to update the statements included in this press release for subsequent developments, except as may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201116005601/en/

Investor Contact:

Carrie Mendivil

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Anna Czene

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KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Biotechnology Health Data Management Technology Oncology

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Liberty Global Announces Executive Leadership in Switzerland

André Krause Named CEO of Combined Sunrise UPC Business

Severina Pascu Returning to Switzerland to Serve as Deputy CEO and COO

DENVER, Colorado–(BUSINESS WIRE)–
Liberty Global (Nasdaq: LBTYA, LBTYB and LBTYK), one of the world’s leading converged video, broadband and communications companies, today announced the appointment of two senior executives to lead its newly combined Swiss operations following the closing of its acquisition of Sunrise Communications AG (SIX Swiss Exchange: SRCG) last week.

Effective immediately, André Krause is Chief Executive Officer of the combined Sunrise UPC business. He joins Liberty Global’s executive team, reporting to CEO Mike Fries. Krause is currently the CEO of Sunrise and served as the mobile operator’s Chief Financial Officer (CFO) for eight years prior. He was critical in leading the transformation of Sunrise’s network, customer service, brand and company culture and instrumental in the successful IPO and listing of the company on the Swiss exchange in 2015.

Additionally, Severina Pascu will return to Switzerland to serve as Deputy CEO and Chief Operating Officer (COO), reporting to Krause. Pascu has been a longtime member of the Liberty Global family, having served most recently as CFO and Deputy CEO of Virgin Media in the United Kingdom. Prior to that she was CEO of UPC Switzerland from September of 2018 to January of 2020, and has spent the last 10 years in leadership positions in Liberty Global’s Central and Eastern European operations. Pascu will lead the combined consumer and business organizations, operations and digital functions.

“This is an exciting time in Switzerland as we bring these two major brands together for the benefit of consumers, businesses and employees,” said Fries. “André is an outstanding executive with a proven track record of growth, innovation and value creation at Sunrise. He is uniquely qualified to lead the integration of these two businesses and deliver on our long-term strategic growth plans in the market. He will also be a great addition to my senior leadership team where his mobile experience will be particularly valuable, and he can benefit from our success in other fixed-mobile markets.”

“I am also thrilled to have Severina back in Switzerland,” Fries added. “She is a world class operator with deep experience in the Swiss market and clear understanding of what it takes to build a converged national champion. She and André are a “dream team” that will provide leadership, continuity and strategic clarity to Sunrise UPC at this critical juncture.”

“By combining UPC’s leading gigabit broadband network and the leading 5G mobile network of Sunrise, we are creating the best connectivity platform for Swiss consumers and businesses for the future,” said Krause. “With Liberty Global’s proven expertise for creating leading fixed-mobile champions across Europe we will set new standards in the Swiss market in the coming years. I am excited and honored to shape this next chapter of the combined Sunrise UPC business together with extraordinary people as one team.”

Pascu added, “I strongly believe that this combined Sunrise UPC business will make a difference in the Swiss market and will create significant benefits for consumers and businesses across Switzerland. Together with our employees we have a unique opportunity to build the future of Switzerland. I am very much looking forward to this new role and being part of this journey together with André, the leadership team and all our employees to become the national converged champion.”

Baptiest Coopmans, who has served as CEO of UPC Switzerland for the last 10 months, will return to a senior operating role at Liberty Global. Fries said, “Baptiest did a fantastic job in his short tenure at UPC. In a difficult year, he accelerated commercial momentum, simplified the operating structure and energized the team.”

ABOUT LIBERTY GLOBAL

Liberty Global (NASDAQ: LBTYA, LBTYB and LBTYK) is one of the world’s leading converged video, broadband and communications companies, with operations in 6 European countries under the consumer brands Virgin Media, Telenet and UPC. We invest in the infrastructure and digital platforms that empower our customers to make the most of the digital revolution.

Our substantial scale and commitment to innovation enable us to develop market-leading products delivered through next-generation networks that connect 11 million customers subscribing to 25 million TV, broadband internet and telephony services. We also serve 6 million mobile subscribers and offer WiFi service through millions of access points across our footprint.

In addition, Liberty Global owns 50% of VodafoneZiggo, a joint venture in the Netherlands with 4 million customers subscribing to 10 million fixed-line and 5 million mobile services, as well as significant investments in ITV, All3Media, ITI Neovision, LionsGate, the Formula E racing series and several regional sports networks.

For more information, please visit www.libertyglobal.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201116005418/en/

Investor Relations:

Max Adkins +44 20 8483 6336

John Rea +1 303 220 4238

Stefan Halters +44 20 8483 6211

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Molly Bruce +1 303 220 4202

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KEYWORDS: United States North America Colorado

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Posted on November 16, 2020 6:48 am

Diamond S Shipping Inc. Reports Third Quarter 2020 Results

Diamond S Shipping Inc. Reports Third Quarter 2020 Results

GREENWICH, Conn.–(BUSINESS WIRE)–
Diamond S Shipping Inc. (NYSE: DSSI) (“Diamond S”, or the “Company”), one of the largest publicly listed owners and operators of crude oil and product tankers, today announced results for the third quarter of 2020.

Highlights for the Third Quarter and Recent Events

— Reported net loss attributable to Diamond S of $9.7 million, or net loss of $0.24 basic and diluted earnings per share, and Adjusted EBITDA (see Non-GAAP Measures section below) of $27.1 million.

— Net debt at September 30, 2020 was $611.1 million, implying a net debt to asset value leverage ratio of 39% based on broker valuations as of June 2020. At quarter end, total free liquidity available to the Company above bank minimum cash requirements was $124.3 million.

— Agreed to sell a 2009-built MR vessel, the Atlantic Mirage, which is expected to be delivered to the buyers in late Q4 2020. The sale of the vessel is expected to generate approximately $7 million in net proceeds before settlement of working capital.

Craig H. Stevenson Jr., President and CEO of Diamond S, commented: “In these challenging market conditions, we are focused on maintaining safe operations and generating the highest possible cash flow in the spot market. To that end, we are pleased with the performance of our new commercial manager, the Norient Product Pool, who absorbed 28 of our MR vessels during the third quarter and outperformed industry benchmarks. Another priority in this environment is ensuring liquidity and maintaining the strong position of our balance sheet. Our recent agreement to sell one of our MR vessels reinforces our view of the underlying value of our enterprise. We are selling a 2009-built MR tanker for $16.4 million. This asset sale is a tangible marker of the value of our fleet, which is well in excess of our current market capitalization. We will continue to prove out the inherent value of DSSI and, especially given the positive long term outlook for our market, we expect to see the disconnect between our intrinsic value and our share price diminish.”

Third Quarter 2020 Results

Reported net loss attributable to Diamond S for the third quarter of 2020 was $9.7 million, or net loss of $0.24 basic and diluted earnings per share, compared to a net loss of $25.9 million, or $0.65 per basic and diluted share, for the third quarter of 2019, which included the impact of a loss on vessel sales of $18.3 million, or $0.46 per share. The decrease in net income for the third quarter of 2020 compared to the adjusted net income for the third quarter of 2019 is primarily related to weaker tanker market conditions.

The Company groups its business primarily by commodity transported and segments its fleet into a 16-vessel crude oil transportation fleet (the “Crude Fleet”) and a 50-vessel refined petroleum product transportation fleet (the “Product Fleet”). The Crude Fleet consists of 15 Suezmax vessels and one Aframax vessel. The Product Fleet consists of 44 medium range (“MR2”) vessels and 6 Handysize (“MR1”) vessels.

Net revenues for the Company, which represents voyage revenues less voyage expenses, were $79.7 million for the third quarter of 2020 compared to $81.6 million for the third quarter of 2019. Net revenues from the Crude Fleet were $29.4 million in the third quarter of 2020 compared to $23.3 million for the third quarter of 2019. The increase in net revenues for the Crude Fleet were primarily due to a solid start to the quarter as a result of the carryover of strong rates from the first half of 2020. Net revenues from the Product Fleet were $50.3 million in the third quarter of 2020 compared to $58.3 million for the third quarter of 2019. The decrease in net revenues in the Product Fleet was principally driven by weaker market conditions. The weak market conditions were driven by demand destruction caused by the global pandemic, and the unwinding of the floating storage cycle, which effectively increased the supply of available ships.

Vessel expenses were $44.8 million for the third quarter of 2020 compared to $41.8 million for the third quarter of 2019. Vessel expenses, which include crew costs, insurance, repairs and maintenance, lubricants and spare parts, technical management fees and other miscellaneous expenses, increased by $3.0 million primarily due to additional expenses incurred for crew bonuses, increased costs of crew reliefs, testing, quarantine and logistics for delivery of services and materials to the vessels as a result of the global pandemic.

Depreciation and amortization expense was $29.1 million in the third quarter of 2020 compared to $28.8 million for the third quarter of 2019.

General and administrative expenses were $7.7 million in the third quarter of 2020 compared to $7.6 million for the third quarter of 2019.

Interest expense was $7.0 million in the third quarter of 2020 compared to $13.0 million for the third quarter of 2019. Interest expense decreased in the third quarter of 2020 due to a lower average debt balance as a result of debt repayments and a decrease in the effective interest rate. Total gross debt outstanding as of September 30, 2020 was $748.5 million, or 16% lower compared to September 30, 2019.

Other income, which consists primarily of interest income, was less than $0.1 million in the third quarter of 2020, compared to $0.5 million for the third quarter of 2019.

Liquidity

As of September 30, 2020, the Company had $120.3 million in cash and restricted cash and $60.0 million available under its revolving credit facility. Available liquidity as of September 30, 2020 was $124.3 million, net of $56.0 million in restricted cash and minimum cash required by debt covenants.

Outlook

Tanker market conditions are expected to remain under pressure during the fourth quarter of 2020, driven by weak demand for crude oil and refined products as a result of the global pandemic. The typical seasonal market strength is expected to be muted as oil inventories continue to draw from onshore storage and demand has not materially recovered. Tanker supply remains balanced based on pre-pandemic demand levels, and the number of vessels on order nearly matches the number of vessels that might be expected to be scrapped, based on the average useful life of a vessel.

As of November 12, 2020, approximately 58% of Crude Fleet revenue days operating in the spot market in the fourth quarter have been fixed at an average rate of approximately $6,800 per day. In the Product Fleet, 59% of revenue days operating in the spot market have been fixed at an average rate of approximately $9,000 per day in the fourth quarter of 2020. The Product Fleet includes a weighted average blend of MR2 vessels, fixed on 60% of revenue days at an average rate of $9,400 per day, and MR1 vessels, fixed on 53% of fourth quarter revenue days at an average rate of $6,000 per day.

Conference Call

The Company will hold a conference call on November 16, 2020 at 8:00 a.m. Eastern Time to discuss its results for the third quarter of 2020.

To access the call, participants should dial +1 866 211-4137 for domestic callers and +1 647 689-6723 for international callers. Participants are encouraged to dial in ten minutes prior to the call. Please enter passcode 6646328.

A live webcast of the conference call will be available from the Company’s website at www.diamondsshipping.com.

An audio replay of the conference call will be available starting at 11 a.m. ET on Monday November 16, 2020 through Monday, November 23, 2020 by dialing in +1 800 585-8367 or +1 416 621-4642 and entering the passcode 6646328.

About Diamond S Shipping Inc.

Diamond S Shipping Inc. (NYSE: DSSI) owns and operates 66 vessels on the water, including 15 Suezmax vessels, one Aframax and 50 medium-range (MR) product tankers. Diamond S is one of the largest energy shipping companies providing seaborne transportation of crude oil, refined petroleum and other petroleum products. The Company is headquartered in Greenwich, CT. More information about Diamond S can be found at www.diamondsshipping.com.

Disclosure Regarding Forward-Looking Statements

Matters discussed in this press release may constitute forward‐looking statements including statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions. Although management believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company’s control, there can be no assurance that the Company will achieve or accomplish these expectations, beliefs or projections. Some of the factors that could cause our actual results or conditions to differ materially include unforeseen liabilities; future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies for the management, expansion and growth of the Company’s operations; risks relating to the integration of assets or operations of entities that it has or may in the future acquire and the possibility that the anticipated synergies and other benefits of such acquisitions may not be realized within expected timeframes or at all; the failure of counterparties to fully perform their contracts with the Company; the strength of world economies and currencies; the duration and impact of the COVID-19 (coronavirus) outbreak; general market conditions, including fluctuations in charter rates and vessel values; changes in demand for tanker vessel capacity; changes in the Company’s operating expenses, including bunker prices; drydocking and insurance costs; the market for the Company’s vessels; availability of financing and refinancing; charter counterparty performance; ability to obtain financing and comply with covenants in such financing arrangements; changes in governmental rules and regulations or actions taken by regulatory authorities; potential liability from pending or future litigation; general domestic and international political conditions; potential disruption of shipping routes due to accidents or political events; vessels breakdowns and instances of off‐hires; and other factors. Please see the Company’s filings with the SEC for a more complete discussion of certain of these and other risks and uncertainties. The Company undertakes no obligation, and specifically declines any obligation, except as required by law, to publicly update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise.

DIAMOND S SHIPPING INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
as of September 30, 2020 and December 31, 2019
(In Thousands, except for share and per share data)
(Unaudited)
		September 30, 2020				December 31, 2019
Assets
Current assets:
Cash and cash equivalents		$	114,335			$	83,609
Due from charterers – Net of provision for doubtful accounts of $2,037 and $1,415, respectively			56,948				80,691
Inventories			20,518				32,071
Prepaid expenses and other current assets			14,611				13,179
Total current assets			206,412				209,550
Noncurrent assets:
Vessels – Net of accumulated depreciation of $631,438 and $553,483, respectively			1,799,835				1,865,738
Other property – Net of accumulated depreciation of $813 and $584, respectively			433				642
Deferred drydocking costs – Net of accumulated amortization of $24,406 and $17,975, respectively			34,016				37,256
Restricted cash			6,014				5,610
Advances to Norient pool			8,001				—
Time charter contracts acquired – Net of accumulated amortization of $4,290 and $2,296, respectively			2,809				5,004
Other noncurrent assets			2,593				4,582
Total noncurrent assets			1,853,701				1,918,832
Total		$	2,060,113			$	2,128,382
Liabilities and Equity
Current liabilities:
Current portion of long-term debt		$	134,389			$	134,389
Accounts payable and accrued expenses			35,336				44,062
Deferred charter hire revenue			3,245				1,934
Derivative liability			557				—
Total current liabilities			173,527				180,385
Long-term debt – Net of deferred financing costs of $13,426 and $15,866, respectively			600,703				744,055
Derivative liability			620				—
Total liabilities			774,850				924,440
Equity:
Common stock, par value $0.001; 100,000,000 shares authorized; issued and outstanding 39,924,892 and 39,890,699 shares at September 30, 2020 and December 31, 2019, respectively			40				40
Treasury stock – at cost; 137,289 shares at September 30, 2020			(1,418	)			—
Additional paid-in capital			1,240,521				1,237,658
Accumulated other comprehensive loss			(1,177	)			—
Retained earnings (accumulated deficit)			12,525				(68,567	)
Total Diamond S Shipping Inc. equity			1,250,491				1,169,131
Noncontrolling interests			34,772				34,811
Total equity			1,285,263				1,203,942
Total		$	2,060,113			$	2,128,382

DIAMOND S SHIPPING INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
for the Three and Nine Months Ended September 30, 2020 and 2019
(In Thousands, except for share and per share data)
(Unaudited)
		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
			2020				2019				2020				2019
Revenue:
Voyage revenue		$	69,098			$	120,954			$	419,169			$	348,747
Time charter revenue			20,408				20,572				63,296				44,730
Pool revenue			23,091				—				23,410				—
Total revenue			112,597				141,526				505,875				393,477
Operating expenses:
Voyage expenses			32,896				59,968				156,926				167,441
Vessel expenses			44,758				41,799				128,032				108,976
Depreciation and amortization expense			29,067				28,763				86,598				79,962
Loss on sale of vessels			—				18,344				—				18,344
General and administrative expenses			7,685				7,566				23,294				21,174
Total operating expenses			114,406				156,440				394,850				395,897
Operating income			(1,809	)			(14,914	)			111,025				(2,420	)
Other (expense) income:
Interest expense			(7,019	)			(13,021	)			(28,106	)			(35,813	)
Other income			3				492				339				1,393
Total other expense – Net			(7,016	)			(12,529	)			(27,767	)			(34,420	)
Net (loss) income			(8,825	)			(27,443	)			83,258				(36,840	)
Less: Net income (loss) attributable to noncontrolling interest (1)			839				(1,548	)			2,166				(1,416	)
Net (loss) income attributable to Diamond S Shipping Inc.		$	(9,664	)		$	(25,895	)		$	81,092			$	(35,424	)
Net (loss) earnings per share – basic		$	(0.24	)		$	(0.65	)		$	2.03			$	(0.99	)
Net (loss) earnings per share – diluted		$	(0.24	)		$	(0.65	)		$	2.02			$	(0.99	)
Weighted average common shares outstanding – basic			39,918,427				39,890,698				39,879,976				35,835,477
Weighted average common shares outstanding – diluted			39,918,427				39,890,698				40,106,157				35,835,477

(1)

The Company is a 51% owner in NT Suez Holdco LLC (“NT Suez”), a joint venture that owns two Suezmax vessels. The Company also performs commercial, technical and administrative services for this joint venture.

DIAMOND S SHIPPING INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
for the Nine Months Ended September 30, 2020 and 2019
(In Thousands)
(Unaudited)
		For the Nine Months Ended September 30,
			2020				2019
Cash flows from Operating Activities:
Net income (loss)		$	83,258			$	(36,840	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization expense			86,598				79,962
Loss on sale of vessels			—				18,344
Amortization of deferred financing costs			2,663				3,106
Amortization of time charter hire contracts acquired			2,194				1,632
Amortization of the realized gain from recouponing swaps			—				(2,045	)
Stock-based compensation expense			3,607				2,162
Changes in assets and liabilities			20,692				(11,723	)
Payments for drydocking			(5,120	)			(12,685	)
Net cash provided by operating activities			193,892				41,913
Cash flows from Investing Activities:
Acquisition costs, net of cash acquired of $16,568			—				(292,683	)
Transaction costs			—				(18,930	)
Proceeds from sale of vessels			—				31,800
Payments for vessel additions and other property			(11,958	)			(11,238	)
Net cash used in investing activities			(11,958	)			(291,051	)
Cash flows from Financing Activities:
Borrowings on long-term debt			—				300,000
Principal payments on long-term debt			(100,792	)			(86,604	)
Borrowings on revolving credit facilities			—				61,000
Repayments on revolving credit facilities			(45,000	)			(26,323	)
NT Suez Holdco LLC distribution			(2,205	)			—
Shares repurchased			(1,418	)			—
Cash paid to net settle employee withholding taxes on equity awards			(745	)			—
Proceeds from partners’ contributions in subsidiaries			—				980
Payments for deferred financing costs			(644	)			(6,970	)
Net cash (used in) provided by financing activities			(150,804	)			242,083
Net increase (decrease) in cash, cash equivalents and restricted cash			31,130				(7,055	)
Cash, cash equivalents and restricted cash – Beginning of period			89,219				88,158
Cash, cash equivalents and restricted cash – End of period		$	120,349			$	81,103
Supplemental disclosures:
Cash paid for interest		$	26,480			$	35,206
Common stock issued to CPLP		$	—			$	236,848
Unpaid transaction costs in Accounts payable and accrued expenses at the end of the period		$	—			$	154
Unpaid vessel additions in Accounts payable and accrued expenses at the end of the period		$	1,326			$	4,604

DIAMOND S SHIPPING INC. AND SUBSIDIARIES
Crude & Product Operating Data
(Unaudited)
		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2020				2019				2020				2019
		Crude Fleet		Product Fleet(A)		Crude Fleet		Product Fleet(A)		Crude Fleet		Product Fleet(A)		Crude Fleet		Product Fleet(A)
Time Charter TCE per day(1)		$26,073		$14,407		$26,134		$14,409		$26,277		$14,369		$26,127		$14,510
Spot TCE per day(1),(2)		20,224		10,374		18,174		12,714		37,120		15,176		17,966		13,356
Total TCE per day(1),(2)		$21,386		$11,113		$18,938		$13,139		$34,988		$15,016		$18,439		$13,610
Vessel operating expenses per day(3)		$7,995		$7,191		$7,139		$6,503		$7,578		$6,755		$6,889		$6,537
Revenue days(4)		1,389		4,539		1,337		4,445		4,175		13,476		3,854		11,706
Operating days(4)		1,472		4,600		1,472		4,751		4,384		13,700		4,024		12,719

(A) Product Fleet Operating Data		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2020				2019				2020				2019
		MR Fleet		Handy Fleet		MR Fleet		Handy Fleet		MR Fleet		Handy Fleet		MR Fleet		Handy Fleet
Time Charter TCE per day(1)		$14,372		$14,686		$15,149		$12,164		$14,612		$13,073		$15,137		$12,231
Spot TCE per day(1),(2)		11,023		5,797		12,943		9,947		15,626		11,639		13,508		10,941
Total TCE per day(1),(2)		$11,643		$7,279		$13,415		$11,100		$15,433		$12,009		$13,818		$11,595
Vessel operating expenses per day(3)		$7,174		$7,317		$6,502		$6,935		$6,728		$6,954		$6,517		$7,155
Revenue days(4)		3,987		552		3,915		530		11,836		1,640		10,610		1,095
Operating days(4)		4,048		552		4,199		552		12,056		1,644		11,597		1,122

(1)		Time charter equivalent (“TCE”) revenue represents voyage revenues, which commence at the time a vessel departs its last discharge port and end at the time the discharge of cargo at the next discharge port is complete, less voyage expenses incurred over such time. TCE rates are a non-GAAP measure, generally used in the shipping industry, used to compare revenue generated from voyage charters to revenue generated from time charters. TCE rates assist the Company’s management in making decisions regarding the deployment and use of its vessels and in evaluating the financial performance of vessels under commercial management. See Non-GAAP Measures below.
(2)		Revenues are derived on a discharge-to-discharge basis less voyage expenses which primarily consist of fuel costs and port charges incurred over the same period. Voyage revenues, as presented in the income statement, are reported under a load-to-discharge basis under U.S. GAAP. A reconciliation is provided in the Non-GAAP Measures section of the press release.
(3)		The vessel operating expenses primarily consist of crew wages and associated costs, insurance premiums, lubricants and spare parts, technical management fees and repair and maintenance costs and excludes nonrecurring items.
(4)		Operating days include the calendar days in the period of owned vessels. Revenue days represent operating days less technical off-hire and drydocking.

Non-GAAP Measures

To supplement the Company’s financial information presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”), management uses certain “non-GAAP financial measures” as such term is defined in Regulation G promulgated by the Securities and Exchange Commission (the “SEC”). 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 GAAP. Management believes the presentation of these measures provides investors with greater transparency and supplemental data relating to the Company’s financial condition and results of operations, and therefore a more complete understanding of factors affecting its business than GAAP measures alone.

TCE revenue, TCE per day, earnings before interest, taxes, depreciation and amortization (“EBITDA”), and EBITDA adjusted for the impact of certain items that we do not consider indicative of our ongoing operating performance (“Adjusted EBITDA”) are non-GAAP financial measures that are presented in this press release and that the Company believes provide investors with a means of evaluating and understanding how the Company’s management evaluates the Company’s operating performance. These non-GAAP financial measures should not be considered in isolation from, as substitutes for, nor superior to financial measures prepared in accordance with GAAP. Please see below for reconciliations of TCE revenue, TCE per day, EBITDA and Adjusted EBITDA.

Reconciliation of Voyage Revenue to TCE per Day

(in thousands of U.S. dollars, except fleet data)		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2020				2019				2020				2019
		Crude Fleet		Product Fleet		Crude Fleet		Product Fleet		Crude Fleet		Product Fleet		Crude Fleet		Product Fleet
Voyage revenue		$42,293		$70,304		$46,222		$95,304		$202,795		$303,080		$133,105		$260,372
Voyage expense		(12,891)		(20,005)		(22,919)		(37,049)		(55,900)		(101,026)		(64,383)		(103,058)
Amortization of time charter contracts acquired		581		96		581		179		1,743		452		1,181		449
Off-hire bunkers in voyage expenses		212		33		408		622		493		334		619		1,278
Commercial management pool fees		–		1,024		–		–		–		1,033		–		–
Load-to-discharge/Discharge-to-discharge		(492)		(1,014)		1,037		(648)		(3,054)		(1,509)		536		295
Revenue from sold vessels		–		1		–		(5)		–		(10)		–		(25)
TCE Revenue		$29,703		$50,439		$25,329		$58,403		$146,077		$202,354		$71,058		$159,310
Operating days		1,472		4,600		1,472		4,751		4,384		13,700		4,024		12,719
Off-hire/Dry Docking days		83		61		135		306		209		224		170		1,014
Revenue days		1,389		4,539		1,337		4,445		4,175		13,476		3,854		11,706
TCE per day		$21,386		$11,113		$18,938		$13,139		$34,988		$15,016		$18,439		$13,610

Reconciliation of Net Income/(Loss) to EBITDA and Adjusted EBITDA

EBITDA represents net income (loss) before interest expense, income taxes and depreciation and amortization expense. Adjusted EBITDA consists of EBITDA adjusted for the impact of certain items that we do not consider indicative of our ongoing operating performance. EBITDA and Adjusted EBITDA are presented to provide investors with meaningful additional information that management uses to monitor ongoing operating results and evaluate trends over comparative periods. EBITDA and Adjusted EBITDA do not represent, and should not be considered a substitute for, net income (loss) or cash flows from operations determined in accordance with GAAP. EBITDA and Adjusted EBITDA have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of our results reported under GAAP. Some limitations are:

• EBITDA and Adjusted EBITDA do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments;
• EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs; and
• EBITDA and Adjusted EBITDA do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our debt.

While EBITDA and Adjusted EBITDA are frequently used by companies as a measure of operating results and performance, neither of those items as prepared by the Company is necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. The following table reconciles net income/(loss), as reflected in the consolidated statements of operations, to EBITDA and Adjusted EBITDA:

(in thousands of U.S. dollars)		For the Three Months Ended September 30,				For the Nine Months Ended September 30,
		2020		2019		2020		2019
Net income (loss)		$(8,825)		$(27,443)		$83,258		$(36,840)
Total other expense, net		7,016		12,529		27,767		34,420
Operating income		(1,809)		(14,914)		111,025		(2,420)
Depreciation and amortization		29,067		28,763		86,598		79,962
Noncontrolling interest		(1,644)		631		(4,781)		(1,395)
EBITDA		$25,614		$14,480		$192,842		$76,147
Fair value of TC amortization		676		760		2,194		1,632
Nonrecurring corporate expenses		846		387		846		2,057
Gain/Loss on Sale of Assets		–		18,344		–		18,344
Adjusted EBITDA		$27,136		$33,971		$195,882		$98,180

 

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Investor Relations Inquiries:

Robert Brinberg

Tel: +1-212-517-0810

E-mail: [email protected]

KEYWORDS: United States North America Connecticut

INDUSTRY KEYWORDS: Maritime Energy Transport Oil/Gas

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