Vessel Delivery and Trading Update

Hellenic Carriers Limited, ("Hellenic" or the "Company") (AIM: HCL), an international provider of marine transportation services, which owns through its subsidiaries a fleet of dry bulk vessels that transport iron ore, grain, steel products and minor bulk cargoes, announces today the delivery of the 2004 built M/V OCEAN ALLIANCE which was renamed PISTIS (the word "PISTIS" means faith in English). 
 
M/V PISTIS, which was delivered on 7 January 2014, is a geared 52,388 dwt Supramax vessel built at 
Tsuneishi Shipbuilding Corporation, Japan in 2004 and was acquired on 23 August 2013 at the price of 
US$ 16.16 million.  
 
The acquisition was funded partly by cash reserves of US $8.3 million and partly by one of Hellenic's 
existing bank facilities. The bank facilities included the proceeds from the sale of M/V HELLENIC SEA 
amounting to US$ 5.3 million, which were transferred as bank financing towards the acquisition price of the new vessel, coupled with new debt of US$2.5 million. 
 
  
Fotini Karamanli, Chief Executive Officer commented: 
 
"We are pleased to announce the delivery of M/V PISTIS, a 2004 built Supramax acquired in late August 2013 at a price of US$16.16 million. Since August 2013 both the freight market and asset values have appreciated, hence we consider that the decision to invest enhances shareholder value.. 
 
M/V PISTIS is the latest addition to the fleet, following the deliveries of the new Kamsarmaxes in August and September 2013. Within a year the fleet has more than doubled in dwt capacity and improved in terms of age profile. Most importantly, these recent additions were concluded at levels which are well below the 10 year average prices for similar assets and have come at a time when the signs of recovery  are apparent. This makes us believe that these ships have the potential for significant profit generation capacity. Even more so, since the fleet has no previous long term employment commitments and may fully capitalize on the eventual market recovery as freight rates have been improving since Q4 2013. 
 
After almost two years of consistently depressed rates, close to the historical lows, we believe that the 
fundamentals are now positive: the massive order book inherited from the years of the shipping super 
cycle has now to a great degree been absorbed, many older vessels have been scrapped, forward orders 
are increasing but not threatening and demand not only from the developing countries but also from 
mature economies is strengthening. We consider that these factors combined herald the recovery of the shipping market, which started earlier than most anticipated in H2 2013. Although seasonal volatility will persist, interrupting at times the upward trajectory, the trend is positive.  

Hellenic is well positioned to benefit from this trend, with a larger, younger and uncommitted fleet. The
timing of the recent additions was favorable and, since we believe that the prospects remain strong, the 
Company will endeavor to further enhance shareholder value through timely and accretive acquisitions 
as market opportunities arise". 
 
Fleet Profile 
 
Following the delivery of M/V PISTIS, Hellenic, through its subsidiaries, owns and trades a fleet of six dry bulk vessels with an aggregate carrying capacity of 384,864 dwt and an average age of 9.9 years.  

Hellenic acquired three vessels from the end of 2012 to date, doubling the number of vessels currently 
trading in worldwide maritime routes and increasing the fleet carrying capacity by 127% to 384,864dwt from 169,116dwt on 31 December 2012. At the same time the average age has reduced by 36.1% to 9.9 years from 15.5 years on 31 December 2012.

Fleet Deployment 

From the beginning of 2012 until the end of H1 2013 the dry bulk freight market dropped to its lowest 
levels of the last 27 years, since inception of the Baltic Dry Index (BDI). During this period the Company decided to avoid committing the vessels at low hire rates and focused on a combination of employment in the spot market and short term period fixtures. 

In H2 2013 and especially during Q4 2013 the first signs of a market recovery became apparent. The BDI increased by 86% from an average of 842 points in H1 to 1,564 points in H2 2013. The sharpest rise was witnessed  in  the  cape size sector,  however  the sub  cape size segments  also  benefited  from the improvement in the freight market.  

The two Kamsarmaxes, ordered in 2010, were delivered in August and September 2013, thusincreasing the fleet to 5 vessels. Furthermore, the agreement for the acquisition of M/V OCEAN ALLIANCE, as described above, was reached in H2 2013. 

The chartering strategy during Q4 2013 remained the same, employment in the spot market or short 
period fixtures.  

Prior to her current employment the vessel performed a similar time charter trip at a gross daily rate of US $ 9,400 for a period of 28 days. 

As of the date of this announcement the vessels' (with the exclusion of M/V PISTIS) estimated average daily gross earnings amount to US$ 11,518.

Debt / Financing Activities  

In 2012 two of the older vessels of the fleet, the HELLENIC SKY and the HELLENIC SEA, were sold in light of the expected depreciation of asset values and the tightening of credit availability.  It was agreed with their  respective  Lenders  to  transfer  the  proceeds  of  these  sales  as  bank  financing  towards  the acquisition of modern vessels. The sale proceeds amounted to US$ 10.1 million and US$ 5.3 million respectively and were pledged until the replacement of the sold ships. Earnings recapture clauses were also agreed with these lenders, providing that part of the excess earnings (meaning part of EBITDA after payment of interest and debt) generated by the vessels incorporated in the respective loan facilities, will be paid to the Banks.

Following the renegotiation of the new building contacts which resulted in the reduction of the contract price of each hull to US$26.28 million from US$34.2 million, the Kamsarmax M/V KONSTANTINOS II was incorporated into the first loan facility replacing the sold M/V HELLENIC  SKY. Consequently the sale proceeds of M/V HELLENIC SKY plus interest accrued thereon amounting in total to US$10.4 million, coupled  with  US$2.2  million  of  additional  debt  was  used  to  finance  the  acquisition  of  M/V KONSTANTINOS II. This loan facility (incorporating M/V KONSTANTINOS II and M/V HELLENIC HORIZON) has now been extended to May 2023 (from an initial maturity in May 2015) and the repayment schedule has been adjusted accordingly.  

The other Kamsarmax vessel, M/V ODYSSEAS, was financed by a new Lender with a debt of US$17.1 
million. Furthermore, the proceeds from the sale of M/V HELLENIC SEA and interest accrued thereon (in total amounting to US$5.3 million) together with new debt of US$2.5 million have been used towards the financing of M/V PISTIS. Following the incorporation of the M/V PISTIS into the respective loan facility (together with M/V HELLENIC WIND and M/V KONSTANTINOS D) the maturity has been extended to May  2020  (from  an  initial maturity  in  May  2016)  and the repayment schedule  has  been  adjusted accordingly.  

Following delivery of M/V PISTIS, the total gross outstanding debt is US$100.8 million.  The gross debt repayment schedule, without taking into account any payments under the earning recapture clauses, for the next three years is US$3.4 million per year for 2014 and 2015 and US$5.5 million for 2016.