CORPORATE STATEMENT
Hellenic Carriers Limited was incorporated in Jersey in 2007
and has been trading on AIM of the London Stock Exchange
since 30 November 2007. The Company operates through its
subsidiaries a fleet of dry bulk vessels that transport dry bulk
cargoes such as iron ore, coal, grain, steel products, alumina
and other commodities along worldwide shipping routes. 
The fleet currently consists of three vessels, comprising one
Panamax, one Handymax and one Supramax and has an
aggregate carrying capacity of 169,116 dwt. The average
fleet age as at 31 December 2012 is 15.5 years. 
In addition to the current operating fleet, two new building
Kamsarmax vessels of approximately 164,000 dwt on order
are expected to be delivered during 2013. Following the
delivery of the two Kamsarmax vessels, the fleet’s
aggregate carrying capacity will increase to approximately
333,116 dwt and the average age will be 9.8 years.
The Company is committed to growing its activities in the
shipping sector and to providing high quality shipping services
worldwide. The Company will maintain its strategy to grow the
fleet in a manner that enhances shareholder value. CONTENTS
Financial and Operational highlights 5
Chairman’s Statement 6
Chief Executive Officer’s Statement 7
Hellenic Carriers Fleet 8
Board of Directors and senior management team 12
Directors’ Report for 2012 16
Corporate Governance 21
Statement of Directors’ Responsibilities in respect of 
Financial Statements 23
Independent Auditor’s Report 24
Consolidated Income Statement 26
Consolidated Statement of Comprehensive Income 27
Consolidated Statement of Financial Position 28
Consolidated Statement of Changes in Equity 29
Consolidated Statement of Cash Flows 30
Notes to the Consolidated Financial Statements 32
Corporate Information 55 FINANCIAL AND OPERATIONAL HIGHLIGHTS 
2012 HIGHLIGHTS
FINANCIAL
• Revenue U.S.$13.2 million (2011: U.S.$33.2 million)
• EBITDA
1
negative U.S.$0.2  million (2011: U.S.$16.9 million EBITDA positive)
• Operating Loss U.S.$9.4 million before non-cash items (2011: U.S.$3.6 million Operating Profit)
• Net Loss U.S.$14.2 million before non-cash items (2011: U.S.$1.1 million)
• Non-cash impairment charge U.S.$8.6 million (2011: U.S.$29.3 million)
• Non-cash gain on sale of vessels U.S.$2.1 million (2011: U.S.$ nil)
• Net Loss U.S.$20.7 million (2011: U.S.$30.4 million)
• Gearing ratio
2
at 31.9% as of 31 December 2012 (30.2% as of 31 December 2011)
• Total cash including restricted cash U.S.$47.7 million as of 31 December 2012 
(U.S.$48.0 million as of 31 December 2011)
• Reduction of Gross debt from U.S.$88.2 million on 31 December 2011 to U.S.$82.3 million on 
31 December 2012 resulting in a net debt position of U.S.$34.6 million from U.S.$40.1 million on 
31 December 2011
OPERATIONAL
• Operation of a fleet of 4.0 vessels on average compared to 5.0 vessels in 2011
• Time Charter Equivalent rate of U.S.$7,414 (2011: U.S.$17,369)
1
EBITDA has been calculated as follows: Operating profit + Depreciation + Depreciation of dry-docking costs + Impairment 
charge - Gain on  sale of vessels - Other operating income
2
Gearing ratio is defined as Net Debt to total capitalisation (debt, net of deferred financing fees less cash and cash equivalents 
to net debt and stockholders’ equity)
5 CHAIRMAN’S STATEMENT
This was another challenging year for the global shipping markets and
for dry bulk shipping markets in particular. Demand for seaborne freight
continued to grow in 2012, supported mainly by the need for raw
materials in the developing countries, but the oversupply of vessels
continued to negatively affect freight rates. As a result the Baltic Dry
Index decreased by 40% compared to 2011 and this has had a negative
impact upon our financial performance.
While waiting for the market conditions to improve we have used our
fleet mainly in the spot market and this has allowed us to take advantage
of some seasonal market swings. We continue to focus upon cost and
cash control, which has enabled us to maintain a strong balance sheet
and continue our fleet renewal programme.
Hellenic Carriers enjoys a long standing relationship with its lenders and
in 2012 we concluded an agreement to restructure our debt and
decrease repayments due in the next few years. In addition, we sold two
of our older vessels in 2012 and secured the option to use these sale
proceeds towards the future acquisitions. The Board of Directors has
recommended that the dividend payment for 2012 be suspended in
order to further reinforce our liquidity. These measures will allow the
company to take advantage of opportunities to acquire further vessels,
at attractive prices, in the current and future markets.
We expect delivery of two new Kamsarmax vessels in 2013, which will
support the fleet renewal programme and increase the revenue
generation capacity.
Looking ahead, we expect 2013 to be another challenging year but
remain cautiously optimistic on the medium term prospects of the dry
bulk market. Demand from the developing economies is expected to
remain robust and freight rates should improve as the supply of new
vessels diminishes in 2013 and furthermore in 2014.
With a modern, well run fleet, experienced management, strong relations
with our customers, trading partners and lenders, and a strong balance
sheet, we believe that Hellenic Carriers is well positioned to take
advantage of improved market conditions and provide shareholder value
for the longer term.
Graham Roberts 
Chairman
12 March 2013
6 CHIEF EXECUTIVE OFFICER’S
STATEMENT
Our objective during 2012 has been to steer through a very challenging
market and position our Company to benefit from the eventual market
turnaround. 
The decrease in revenues for the year was attributed to the reduced
number of vessels in the fleet and the depressed dry bulk freight rates.
Although seaborne trade demand continued to grow in 2012, supported
mainly by the need for raw materials by the developing countries,
oversupply negatively affected rates in all dry bulk segments.
In 2012 the fleet renewal program continued: two of the older Panamax
vessels were sold, while the option to use the sale proceeds within 2013
as debt financing towards the acquisition of modern second hand ships
was secured from the lenders. The vessels were employed
predominantly under short period time charters, avoiding commitment
at low rates for the longer term. Tight cost control resulted in a reduction
of both the daily vessel operating expenses as well as the general and
administrative expenses. Preservation of cash was achieved, following
agreements with the existing lenders to reduce the principal installments
due in 2012 and 2013 and to extend the maturity of one of the facilities,
whilst also extending the maturity of the second facility in case of
replacement of one of the ships sold.
Looking ahead, urbanization in the developing economies is an
irreversible trend and this translates into continued demand for core raw
materials which are the backbone of the dry bulk trade. At the same time,
net fleet growth is expected to slow down in 2013 and especially in 2014
as the result of a diminished order book and higher scrapping levels, since
about 13% of the global dry bulk fleet is over 20 years of age.  Therefore,
even though we expect overall a challenging market for 2013, we remain
cautiously optimistic on the medium term prospects of our industry.
Since the market downturn in the end of 2008, we have taken steps ensuring
that the Company is well prepared to endure difficult market conditions. We
expect that such conditions will continue to prevail during 2013. However,
thereafter with the bulk of the order book delivered and the growth
prospects of the developing countries robust, we envisage a gradual
improvement in earnings. Our aim is that at that point in time the Company
will be well positioned, with a bigger and more modern fleet, to capitalise
on the improved market, building long term value for our shareholders. 
Fotini Karamanli
Chief Executive Officer
12 March 2013
7 HELLENIC CARRIERS FLEET 
Operating Fleet
As of 31 December 2012, the Company owns and operates, through its
wholly owned subsidiaries, a fleet of three dry bulk carriers with a weighted
average age of 15.5 years and a total carrying capacity of 169,116 dwt. The
fleet includes one Panamax, one Supramax, and one Handymax vessel, and
the cargo-carrying capacities range from 44,809 to 73,981 dwt depending
on the type of vessel. The dry bulk carriers transport major bulk cargoes
(such as grain, coal and iron ore) and minor bulk cargoes (such as bauxite,
phosphate, steel products and alumina) along worldwide shipping routes.
Operating Fleet details as at 31 December 2012:
  Vessels under Construction
Two new building Kamsarmax bulk carriers which are currently under
construction are expected to be delivered in 2013. 
Vessels under construction as at 31 December 2012:
8 Following the delivery of the two Kamsarmax vessels, the fleet will
comprise two Kamsarmaxes, one Panamax, one Supramax and one
Handymax with an aggregate carrying capacity of about 333,116 dwt
and a weighted average age of about 9.8 years. 
Fleet Developments
In 2012 two Panamax vessels were sold and an agreement was reached
with the vessels’ lenders to transfer the proceeds from these sales as
bank financing towards the acquisition of modern second hand bulk
carriers. The sale of these two older vessels was decided in the context
of the fleet renewal program, following on from the shipbuilding
contracts entered into with Zhejiang Ouhua Shipbuilding Co. Ltd. for the
construction of two Kamsarmax bulk carriers in June 2010.
On 16 May 2012, Thasos Shipping Co. Ltd., the ship owning company
of the M/V Hellenic Sky completed the sale of the 68,591 dwt Panamax
vessel built in 1994 at Sasebo Heavy Industries in Japan. The vessel was
sold to an unaffiliated third party for a total cash consideration of
U.S.$10.5 million.
The M/V Hellenic Sky was acquired in July 2003 at a price of U.S.$13.2
million. During the past nine years of its operation, the vessel contributed
approximately U.S.$19.4 million of net profit. Taking into account the net
book value of the vessel and the sale related expenses, the Company
realised a net book gain of U.S.$2.3 million on this sale.
On 23 August 2012, the ship owning company of the 1991 built Panamax
vessel, M/V Hellenic Sea, Patmos Shipping Co. Ltd., completed the sale
of its vessel to an unaffiliated third party for a total cash consideration
of U.S.$5.3 million.
The M/V Hellenic Sea was acquired in March 2002 at a price of U.S.$9.6
million and during the past ten years of its operation, the vessel
contributed approximately U.S.$40.6 million of net profit. Taking into
account the vessel’s net book value and expenses related to the sale,
the Company realised a net book loss of U.S.$0.2 million on this sale.
9 Fleet Employment
The dry bulk freight market deteriorated in 2012 with the BDI moving
between 647 points and 1,624 points, averaging at 920 points, marking
a 40.6% reduction from the 2011 average of 1,549 points. This was
mainly the result of a weak global economic growth and a 10% net
increase in the world fleet tonnage supply, following a 14% net increase
in 2011. Although seaborne trade demand continued to grow in 2012,
supported mainly by the need for raw materials by the developing
countries, tonnage oversupply continued to negatively affect the rates
in all the dry bulk carrier subsectors.
In this environment, and considering the unfavourable rates prevailing
during the period in review, Hellenic’s strategy was to employ the vessels
on the spot market for the performance of single or consecutive laden
legs or under short term time charter agreements, avoiding longer term
commitments at low levels.
Towards the end of the year, taking advantage of a temporary upturn of
the BDI, two of the vessels, namely the M/V Konstantinos D and M/V
Hellenic Wind were fixed under medium term time charters.
The M/V Konstantinos D was fixed for a period of 4-6 months at a daily
gross hire rate of U.S.$7,600. The charter commenced on 29 September
2012. After the charter’s termination on 29 January 2013, the vessel
performed a short time charter trip until end February 2013 and is
currently undergoing her Intermediate Survey.
The M/V Hellenic Wind was fixed for a period of 5-9 months at a daily
gross hire rate of U.S.$7,350. The charter commenced on 5 October
2012. Its earliest expiration date is on 5 March 2013 and its latest
expiration is 5 July 2013. 
Taking into consideration the operating fleet, the estimated time charter
coverage currently stands at 42.2% for the first half of 2013 and at
20.9% until year end 2013.
The current Fleet Employment is summarised below:
10  BOARD OF DIRECTORS AND
SENIOR MANAGEMENT TEAM
Our Board of Directors    
The Board currently comprises two Executive Directors and three Non-
executive Directors. Details of the Directors, their roles and their
backgrounds are as follows:
12 Graham Roberts, 
Chairman and Non-executive Director
Graham Roberts was appointed as our Chairman
on Admission. Between 2002 and 2006 Mr.
Roberts was chief executive and main board
director of PD Ports Plc. From that position he
successfully directed PD Ports flotation in 2004
on AIM and subsequent sale to Babcock & Brown
Infrastructure Limited in 2005. Prior to that, Mr.
Roberts held chief executive posts at London Luton Airport, MTL
(Merseyside Transport Limited) and Servisair plc. Mr. Roberts was also a
senior executive at NFC plc (later renamed Exel plc) for over 25 years, and
was a member of its board from 1989 until he left the company in 1997.
In total he has over 41 years of experience in the transportation sector.
Mr. Roberts is a non-executive director of the Freight Transport
Association Limited.
Fotini Karamanli, 
Chief Executive Officer
Ms. Karamanli is Chief Executive Officer of the
Company. She is responsible for strategy, vessel
acquisitions, chartering and financing.
Ms. Karamanli has more than 17 years shipping
experience and has been with companies
associated with HCL since 1999. From 1998 to
1999, Ms. Karamanli worked on the sale and purchase desk of Galbraiths
Shipbrokers in London and before that was a shipping lawyer with
Norton Rose in London and Greece.
Ms. Karamanli qualified as a solicitor of the High Court of England and
Wales in 1997. Ms. Karamanli served from 2006 until early 2012 as an
independent non-executive member of the board of directors of Piraeus
Bank S.A., a company listed on the Athens Stock Exchange and is currently
a member of the board of directors of the Karamanlis Foundation.
Ms. Karamanli holds a law degree from the University of Athens and a
Master’s Degree (LLM) from the University of Cambridge.
Elpida Kyriakopoulou, 
Chief Financial Officer
Ms. Kyriakopoulou has been acting as Financial
Reporting Manager of the Company since
January 2008. In November 2009 Ms.
Kyriakopoulou was appointed Chief Financial
Officer of the Company. Prior to joining the
Company Ms. Kyriakopoulou worked as Senior
Auditor and then as Manager at Ernst & Young
Hellas, where she signed six years audit experience in the Shipping
Sector. For the period 1997 to 2001 Ms. Kyriakopoulou worked as an
accountant at Goldenport Shipmanagement Ltd.
She holds a degree in Maritime Studies from the University of Piraeus,
Greece and is a member of the Greek Association of Certified Accountants.
Charlotte Stratos, 
Non-executive Director
Ms. Stratos is a Senior Advisor to Morgan
Stanley's Investment Banking Division-Global
Transportation team. From 1987 to 2007, Ms.
Stratos served as managing director and head of
Global Greek Shipping for Calyon Corporate and
Investment Bank of the Credit Agricole Group.
From 1976 to 1987, Ms. Stratos served in various
roles with Bankers Trust Company including, advisor to the Shipping
Department and vice president of Greek shipping finance.
In addition to serving as a Director for Hellenic Carriers Limited, Ms.
Stratos also currently serves as an independent director for Costamare
Inc., a containership company listed in the NY Stock Exchange and of
Gyroscopic Fund (a fund of hedge funds).
13 Dimos Kapouniaridis, 
Non-executive Director
Mr. Kapouniaridis is a Senior Director and Co-
Head of M&A in Eurobank Equities in Athens.
Mr. Kapouniaridis obtained a BA (major in
Economics and minor in Mathematics) from
Hamilton College in Clinton, NY , in 1996. He has
approximately sixteen years of investment
banking experience with focus on Mergers and Acquisitions in Greece
and the USA. Prior to joining Eurobank Equities in 2002, he had worked
for the industrial and the M&A groups of Salomon Brothers and Salomon
Smith Barney in New York and Los Angeles as well as for the M&A group
of Dresdner Kleinwort Benson in New York. 
Our Fleet Management 
The day-to-day commercial and financial management of the fleet is the
responsibility of the wholly-owned subsidiary, Hellenic Shipmanagement
Corp., which has ship management agreements in place with each ship
owning company. Under these ship management agreements, Hellenic
Shipmanagement provides the relevant wholly-owned subsidiary with
the following specific services:
• Commercial management services including the negotiation 
of charter parties;
• Accounting services;
• Supervising the sale and purchase of vessels in accordance 
with the ship owning Company´s instructions;
• Implementation, monitoring and audit of the safety management 
system in connection with the ISM certification.
Our Management Team
Yiannis Karagiannis, 
Commercial Manager
Mr. Karagiannis joined Hellenic Shipmanagement in
2011 in the capacity of commercial manager with
responsibility for business developments and
overseeing the Company’s chartering and sale and
purchase activities. He has more than fifteen years
of experience in the chartering and commercial
sector of the shipping industry, and was previously employed as
chartering and commercial manager of Paralos Maritime Corp. S.A. and
prior to that as chartering manager of Lyras Shipping Ltd.
Mr. Karagiannis is a graduate of the Merchant Marine Academy of Hydra,
and has 4 years shipboard experience serving up to the rank of Second
Officer on board bulk carriers and tankers. 
14 Helen Walsh, 
Commercial/ Legal Department Officer
Prior to joining Hellenic Shipmanagement Corp. in
January 2010, Ms. Walsh worked as a claims
handler for a ship advisory firm in Piraeus, and was
appointed Registrar for the Barbados Maritime
Authority in Greece. 
Ms. Walsh holds a BSc (Hons) in Transport & Shipping from London
Guildhall University and a Master of Laws (LLM) in Maritime &
Commercial Law from the University of Wales, Swansea.
Panagiotis Konstantopoulos, 
Designated Person Ashore
Mr. Konstantopoulos joined Hellenic Shipmanagement
Corp. in 2011 in the capacity of the Designated
Person Ashore (DPA) and Company Security Officer
(CSO) and is responsible for the implementation,
monitoring and audit of the safety management
procedures for the fleet, as well as the ISM
(International Safety Management) and ISPS (International Ship and Port
Facility Security) certification.
Mr. Konstantopoulos is a graduate of University of Piraeus on Maritime
Studies (BSc), obtained also a BSc from the Technological Educational
Institute of Athens (TEI) in Shipbuilding, and is qualified as a Naval Architect.
Prior to joining Hellenic Shipmanagement Corp. he had sea service
experience as an Engineer and worked as marine consultant and
surveyor, conducting training sessions and following up on various ISM
projects for a Marine Consultancy Company in Piraeus.
Anastasia Delidimitriou, 
Senior Accounting Officer
Before joining Hellenic Shipmanagement Corp. on 1
November 2007, Ms. Delidimitriou worked for
Mantinia Shipping Co. S.A. as an Accounting Officer,
since 2006. Ms. Delidimitriou started her career in
shipping working as an accountant at John Giavridis
Inc. She holds a degree in Business Administration
from the University of Piraeus, Greece.
Dimitris Babousis, 
Senior Accounting Officer
Before joining Hellenic Shipmanagement Corp. on 1
November 2007, Mr. Babousis worked for Mantinia
Shipping Co. S.A. as a Senior Accounting Officer,
since 2004. Mr. Babousis started his career with
Universe Maritime in 1998 before joining chartered
accountants Moore Stephens in 2000.
Fleet Technical Management
The day-to-day technical and operational management of the fleet is
sub-contracted by Hellenic Shipmanagement to Mantinia, a Company
which is ultimately controlled by the controlling shareholders. Under the
Mantinia Management Agreements, Mantinia provides Hellenic
Shipmanagement with the following specific services:
• Attending to the maintenance, repairs, modifications, supply and
classification requirements of the vessels;
• Attending to the regular operation and performance of the vessels
and the handling of claims;
• Attending to all matters with regard to supply of bunkers, lubricants
and other kind of materials, stores and provisions;
• Negotiating and executing contracts for the repairs or
conversions/modifications in shipyards worldwide subject to the
previous consent of the vessel-owning Company and generally
performing all actions necessary for the accomplishment of the
above;
• Arranging of insurance for all the vessels;
• Recruiting and employing seamen, arranging for the execution of
the contracts of employment and attending to all relevant social
security matters.
15 DIRECTORS’ REPORT FOR 2012
Principal activity
The principal activity of Hellenic Carriers Limited (the “Company”) during
the period in review was that of an owner, through its wholly owned ship
owning subsidiaries, and operator, through its wholly owned manager,
Hellenic Shipmanagement Corp., of a fleet of dry bulk vessels that
transport iron ore, coal, grain, steel products, alumina and other dry bulk
cargoes worldwide. The operating fleet at the end of the period under
review included one Panamax vessel, one Supramax vessel and one
Handymax vessel. 
The Company, which was incorporated under the laws of Jersey on 26
September 2007, has an authorised share capital of U.S.$100,000
consisting 100,000,000 ordinary shares of U.S.$0.001 each. Immediately
prior to Admission on AIM the Company issued 13,684,970 ordinary
shares with par value U.S.$0.001 (in addition to the 31,931,881 ordinary
shares with par value of U.S.$0.001 issued on 27 November 2007).
On 30 November 2007, the Company commenced trading on AIM at a
price of GBP 2.12 per share. Through the IPO, a total amount of U.S.$58.9
million was raised with the intention to mainly fund fleet expansion. 
The address of the registered office of the Company is 28-30 The Parade,
St. Helier, Jersey JE1 1EQ, Channel Islands.
Outlook/Future prospects
Shipping markets are by nature cyclical and prone to volatility and as a
consequence charter rates, vessel values and in turn operational results
are directly affected by the prevailing changes in the ship demand and
supply balance.
Overall, the conditions for dry bulk carrier operators were challenging in
2012. Weak dry bulk fundamentals mainly due to the oversupply of tonnage,
while on the demand side anaemic growth in the developed nations, namely
in the U.S. and Europe, contributed towards poor freight earnings. Despite
the weak economic growth of developed economies, seaborne dry bulk
tonnage demand increased by about 5% driven mainly by the developing
16 economies in the Far East which continued importing raw materials in order
to keep up with their industrial production and urbanization projects.
As we enter into 2013, market conditions are likely to remain challenging
as the effect of several years of rapid fleet expansion will continue
exerting downward pressure on charter rates. However, the majority of
the order book has already been delivered during 2011 and 2012, new
building orders remain subdued due to limited financing and assuming
continued high levels of vessel demolition, fleet growth is expected to
slow down considerably going forward.
Although economic growth in the U.S. and Europe remains fragile for
2013, the Far East will continue to play an integral part for demand in
dry bulk commodities, just as it has for the past decade. During this past
decade we have seen China’s urbanization rate rise from 38% to 52%,
which means that every year about 20 million people are becoming new
urban residents. With the urbanization rate only at 52% we consider that
this trend will continue for the foreseeable future, bringing along further
infrastructure projects. Hence the increased demand for dry bulk
commodities supporting the steel industry, the power generation and
the food and animal consumption.
We therefore remain optimistic for the long term prospects of dry bulk
shipping, which is a vital link to the world economy. Shipping has
retained its cyclicality and a more conservative fleet growth combined
with the continued expansion of world seaborne trade will bring the
supply and demand balance closer to equilibrium. 
2012 Operational & Financial Review 
Going concern
The Directors believe it is appropriate to adopt the going concern basis
in preparing the financial statements since, after due consideration, the
Directors consider that the Company and its subsidiaries have adequate
resources to continue in operational existence for the foreseeable future.
Full Year 2012 Results
For the year ended 31 December 2012, Hellenic reported total revenues
of U.S.$13.2 million compared to U.S.$33.2 million for the same period
of 2011. The decrease in revenues is mainly attributed to the reduction
in the number of vessels operated during the period following the sale
of the M/V Hellenic Sky and the M/V Hellenic Sea in May 2012 and
August 2012, respectively and the prolonged depression of the dry bulk
freight rates. We note that for the twelve months of 2012 the Baltic Dry
Index (BDI) averaged at 920 points compared to 1,549 points during the
same period of 2011, a decrease of 40.6%. 
Earnings before Tax, Interest, Depreciation and Amortisation (EBITDA)
was reported negative at U.S.$0.2 million for the twelve months ended
31 December 2012 compared to positive U.S.$16.9 million for the same
period in 2011.
Operating loss amounted to U.S.$15.9 million for the year ended 31
December 2012 compared to U.S.$25.7 million for the same period of
2011. The year ended 31 December 2012 operating loss figure included
non-cash impairment charge of U.S.$8.6 million and non-cash gain
resulting from the sale of M/V Hellenic Sky and M/V Hellenic Sea in the
amount of U.S.$2.1 million.
As a result of the significant drop in asset values an impairment
indication was identified and the relevant tests were performed in order
to determine the vessels’ recoverable amounts. As a conclusion the book
values of three vessels were adjusted to their recoverable amounts and
an impairment charge was reported for the year ended 31 December
2012 and 31 December 2011 in the amount of U.S.$8.6 million and
U.S.$29.3 million, respectively.
Excluding the above mentioned non-cash items, Hellenic reported
for the year ended 31 December 2012 an operating loss of U.S.$9.4
million compared to an operating profit of U.S.$3.6 million for the
year ended 31 December 2011.
Net loss for the year ended 31 December 2012 amounted to U.S.$20.7
million representing a loss per share of U.S.$0.45 calculated on 45,616,851
weighted average number of shares. Net loss for the year ended 31
December 2011 amounted to U.S.$30.4 million representing a loss per share
of U.S.$0.67 calculated on 45,616,851 weighted average number of shares. 
During 2012 the Company, through its subsidiaries, operated 4.0 vessels
which earned on average U.S.$7,414 per day compared to 5.0 vessels
and average earnings of U.S.$17,369 per day in 2011. 
As a result of the decrease in ownership days, vessel operating expenses
dropped by U.S.$2.3 million to a total of U.S.$7.7 million for the twelve
months ended 31 December 2012. The daily operating expenses for the
17 year ended 31 December 2012 were reported at U.S.$5,234 from
U.S.$5,456 for the same period of 2011 demonstrating the
management’s efficient cost control over the fleet.
The Company’s general and administrative expenses for the twelve
months of 2012 decreased by 19.7% from the same period of 2011 to
U.S.$1.5 million.
18 Debt as of 31 December 2012 amounted to U.S.$82.3 million compared
to U.S.$88.2 million as of 31 December 2011.
In view of the prolonged market downturn affecting the fleet’s cash
generation from operating activities, the Company and its subsidiaries
came into an agreement with their lenders to restructure the debt
obligation and lighten up the repayments falling due in 2012 and 2013.
In relation to one of the loan facility agreements the lender has agreed
to restructure the loan repayment schedule effective from 1 January
2012. The term of the loan was extended for three years, the new
maturity date being May 2018. In addition, the option to transfer the
proceeds from the sale of the M/V Hellenic Sky towards the acquisition
of a modern second hand bulk carrier, within a period of eighteen months
from the vessel’s delivery to its buyers, has been granted. 
In relation to the second loan facility agreement the lender provided the
option to transfer the proceeds from the sale of the M/V Hellenic Sea as
bank financing towards the acquisition of a modern second hand bulk
carrier, to be acquired within a period of twelve months. Further to this
agreement, if a new vessel is acquired during the twelve month period,
the tenor of the loan shall be extended for four years with the new
maturity being May 2020.
The gross principal debt repayment falling due within the year 2013
amounts to U.S.$4.7 million. In case the options are not exercised a
prepayment in the amount of U.S.$15.6 million is due to be made to the
Banks in late 2013. This amount is held pledged with the lenders and is
included in restricted cash as of 31 December 2012.
An earnings recapture clause has been agreed under both loan facilities
based on which part of any excess earnings generated by the vessels
will be paid to the lending banks commencing from financial year 2012.
As of 31 December 2012, Hellenic and its subsidiaries have obtained the
appropriate waivers from their lenders.
Debt (debt, net of deferred financing fees) to total capitalisation (debt
and stockholders’ equity) as of 31 December 2012 amounted to 52.7%
compared to 48.7% on 31 December 2011. Net debt (debt less cash and
19 cash equivalents) to total capitalisation amounted to 31.9% on 31
December 2012 compared to 30.2% on 31 December 2011.
Total cash, including restricted cash amounted to U.S.$47.7 million and
U.S.$48.0 million as of 31 December 2012 and 31 December 2011,
respectively.
Restricted cash reported at 31 December 2012 amounted to U.S.$19.2
million consisting of: a) U.S.$0.2 million being funds held in a retention
account for the repayment of the next debt instalment and interest due
under one of the existing loan agreements, b) U.S.$3.4 million
representing cash retained against issuance of a Bank Guarantee of
U.S.$3.1 million provided as security to Setsea SpA, the former
charterers of the M/V Hellenic Sea, pending the outcome of the
arbitration proceedings in London between Owners and Charterers on
the occasion of the vessel’s grounding in the Amazon River in July 2010,
and c) U.S.$15.6 million being the aggregate of the proceeds from the
sale of the M/V Hellenic Sky and M/V Hellenic Sea which are pledged
with the vessels’ lenders for the purpose of being transferred as
financing towards future acquisitions as described above.
Litigation
The Company is not engaged directly in any litigation of material
importance, nor, so far as the Directors are aware, is any litigation
pending or threatened, which would have a material adverse effect on
the financial position of the Company. The arbitration proceedings with
respect to M/V Hellenic Sea’s hull damage in July 2010 continue, and,
accordingly, the vessel owning company of M/V Hellenic Sea, is directly
engaged in such proceedings but, on the basis of legal advice received
to date, a material adverse effect on the financial position of the
Company is not expected.
Taxation
As from 1 January 2009, the exempt company regime in Jersey no
longer applied, and the Company is now subject to a 0% tax in Jersey.
Under the laws of the respective jurisdictions of the consolidated
companies, the Company, and its subsidiaries, currently are not subject
to tax on international shipping income.
Dividends
In order to reinforce the Company’s liquidity and optimise the use of cash
when market opportunities arise, the Directors of the Company
recommended that dividend payment for the year 2012 be suspended. 
Company’s Nominated Advisors
Panmure Gordon & Co has been acting as the Company’s Nominated
Advisor and broker since 14 June 2010.
Directors
The Directors of the Company who served during the year were:
Graham Roberts (Chairman and Non-executive Director) 
Fotini Karamanli (Chief Executive Officer)  
Elpida Kyriakopoulou (Chief Financial Officer) 
Charlotte Stratos (Non-executive Director) 
Dimos Kapouniaridis (Non-executive Director) 
The Directors’ interests in the share capital of the Company at 31
December 2012 (held directly or indirectly by the Director) were:
Fotini Karamanli is deemed to be interested in all the Ordinary Shares
held by: (a) Faith Holdings Inc., a company owned 100% by her and (b)
Bedat Holding Limited, a company owned 50% by her. 
Auditors
Ernst & Young LLP has been appointed as auditor of the Company and
has expressed willingness to continue in office.
20 CORPORATE GOVERNANCE
The Company is managed by the Board of Directors which has overall
responsibility for the corporate governance of the Company. The directors
are committed to ensuring that high standards of corporate governance
are maintained insofar as the Directors believe that such standards are
relevant and appropriate for the Company and notwithstanding the fact
that as an AIM listed company, which is incorporated in Jersey, Hellenic
Carriers has no legal obligation to comply with the Corporate Governance
Code, (CGC), (i.e. the Code of Best Practice published by the Committee
on the Financial Aspects of Corporate Governance).
The CGC is the Code on Corporate Governance published by the UK
Financial Reporting Council. The CGC applies only to companies which
are admitted to the Official List and it is therefore up to the Directors of
an AIM listed company to decide the extent to which the AIM listed entity
complies with the CGC. From Admission the Company broadly complies
with the principal requirements of the CGC.
The Quoted Companies Alliance (QCA) has also published corporate
governance guidelines for AIM listed companies. The QCA Guidelines
recommend that there be a formal schedule of matters specifically
reserved for the Board’s decision and that the Board be supplied with
information in a timely manner so as to enable it to discharge its duties.
The Company has adopted a schedule of matters reserved for the Board
in a form similar to that recommended by the QCA Guidelines. The QCA
Guidelines also recommend that the roles of Chairman and chief executive
should not be exercised by the same individual and that a company has at
least two independent non-executive Directors (one of whom should be
the chairman). The QCA Guidelines also recommend the establishment of
Audit, Remuneration and Nomination Committees and that the Audit and
Remuneration Committees should comprise of at least two members, all
of whom should be independent non-executive Directors.
Board Effectiveness
The Company is managed by the Board of Directors in accordance with
its Memorandum and Articles of Association. The Board of Directors
consists of five Directors, three of which are independent non-
executives. Executive Directors have responsibility for the day-to-day
management and control of the Company, whereas non-executive
Directors are responsible for the overall promotion and safeguarding of
the Company’s interests. The Company’s Chairman, CEO and CFO along
with the Company’s broker and Nominated Advisor maintain a regular
dialogue with institutional shareholders. Panmure Gordon & Co has been
acting as the Company’s Nominated Advisor and broker since 14 June
2010. Furthermore, Board members will be available to respond to
shareholders’ questions at the Annual General Meeting. 
Committees  
The Company has established an Audit Committee, a Remuneration
Committee and a Nomination Committee.
The Audit Committee is headed by Ms. Ch. Stratos and its members are
our two independent Non-executive Directors and our Non-executive
Chairman. The Committee is responsible for the proper reporting and
monitoring of our financial performance and the review of the internal
control systems and the auditors’ reports relating to our accounts. The
Audit Committee will also recommend the appointment of the external
auditors and will review the audit fees. The Combined Code
recommends that all members of the Audit Committee be Non-executive
Directors, independent in character and judgement and free from any
relationship or circumstances which may, could, or would be likely to, or
which appear to affect their judgment. The Board considers that the
Company complies with the Combined Code in this respect.
The Remuneration Committee is headed by Mr. D. Kapouniaridis and its
members are our two independent Non-executive Directors and our Non-
executive Chairman. This Committee is responsible for determining and
agreeing with the Board the framework for the remuneration of the Chief
Executive Officer, all other executive Directors, the Company Secretary
and such other members of the executive management as it is
designated to consider. Furthermore, the Committee is responsible for
determining the total individual remuneration packages of each Director
including, where appropriate, bonuses, incentive payments and share
options. The Remuneration Committee also liaises with the Nomination
Committee to ensure that the remuneration of newly appointed
executives is within the Company’s overall policy.
21 22
The Nomination Committee is headed by our Non-executive Chairman,
Mr. Gr. Roberts and comprises one independent Non-executive Director
(Dimos Kapouniaridis), and our Chief Executive Officer (Fotini Karamanli).
This Committee is responsible for reviewing the structure, size and
composition of the Board, preparing a description of the role and
capabilities required for a particular appointment and identifying and
nominating candidates to fill Board positions as and when they arise.
Below is a summary of our committees’ structure as at 31 December
2012:
Meetings
The number of the regular meetings by the Board, the Audit,
Remuneration and Nomination Committees and individual attendance
by members within 2012 is shown below:
Fotini Karamanli
Chief Executive Officer
Graham Roberts
Chairman STATEMENT OF DIRECTORS’
RESPONSIBILITIES
The Directors are responsible for preparing the consolidated financial
statements of the Company and its subsidiaries in accordance with
applicable law and regulations.
Jersey Company law requires the Directors to prepare financial
statements for each financial period in accordance with generally
accepted accounting principles. The financial statements are required
by law to give a true and fair view of the state of affairs of the company
and of the profit or loss of the company for that period. In preparing these
financial statements, the Directors should:
• select suitable accounting policies and then apply them consistently;
• make judgments and estimates that are reasonable and appropriate; 
and
• specify which generally accepted accounting principles have been 
adopted in their preparation 
The Directors are responsible for keeping accounting records which are
sufficient to show and explain the transactions of the Company and its
subsidiaries and are such as to disclose with reasonable accuracy, at any
time, the financial position of the Company and its subsidiaries and
enable them to ensure that the financial statements prepared by the
Company comply with the requirements of the Companies (Jersey) Law
1991. They are also responsible for safeguarding the assets of the
Company and its subsidiaries and hence for taking reasonable steps for
the prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company’s website.
Legislation in Jersey governing the preparation and dissemination of
financial statements may differ from legislation in other jurisdictions.
Approved by the Board of Directors and signed on its behalf on 12
March 2013.
23
Fotini Karamanli
Chief Executive Officer
Graham Roberts
Chairman 24
INDEPENDENT AUDITOR’S
REPORT TO THE MEMBERS OF
HELLENIC CARRIERS LIMITED
We have audited the financial statements of Hellenic Carriers Limited
for the year ended 31 December 2012 which comprise the Consolidated
Income Statement, the Consolidated Statement of Comprehensive
Income, the Consolidated Statement of Financial Position, the
Consolidated Statement of Changes in Equity, the Consolidated
Statement of Cash Flows and the related notes 1 to 19. The financial
reporting framework that has been applied in their preparation is
applicable law and International Financial Reporting Standards as
adopted by the European Union.
This report is made solely to the company’s members, as a body, in
accordance with Article 113A of the Companies (Jersey) Law 1991. Our
audit work has been undertaken so that we might state to the company’s
members those matters we are required to state to them in an auditor’s
report and for no other purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the
company and the company’s members as a body, for our audit work, for
this report, or for the opinions we have formed.
Respective responsibilities of directors
and auditors
As explained more fully in the Directors’ Responsibilities Statement on
page 23, the directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view.
Our responsibility is to audit and express an opinion on the financial
statements in accordance with applicable law and International
Standards on Auditing. Those standards require us to comply with
applicable Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures
in the financial statements sufficient to give reasonable assurance that
the financial statements are free from material misstatement, whether
caused by fraud or error.  This includes an assessment of: whether the
accounting policies are appropriate to the company’s circumstances and
have been consistently applied and adequately disclosed; the
reasonableness of significant accounting estimates made by the
directors; and the overall presentation of the financial statements.
In addition, we read all the financial and non-financial information in the
Financial and Operational Highlights, Chairman’s Statement, Chief
Executive Officer’s Statement, Hellenic Carriers Fleet, Board of Directors
and Senior Management Team, Directors’ Report for 2012 and Corporate
Governance to identify material inconsistencies with the audited financial
statements. If we become aware of any apparent material misstatements
or inconsistencies we consider the implications for our report.
Opinion on financial statements
In our opinion the financial statements:
• give a true and fair view of the state of the company’s affairs as at 31 
December 2012 and of its loss for the year then ended; 
• have been properly prepared in accordance with International Financial 
Reporting Standards as adopted by the European Union; and
• have been prepared in accordance with the requirements of the Companies
(Jersey) Law 1991. 25
Matters on which we are required to
report by exception
We have nothing to report in respect of the following matters where the
Companies (Jersey) Law 1991 requires us to report to you if, in our opinion:
• proper accounting records have not been kept, or proper returns adequate
for our audit have not been received from branches not visited by us; or
• the financial statements are not in agreement with the accounting records
and returns; or
• we have not received all the information and explanations we require for
our audit.
Michael Bane
For and on behalf of Ernst & Young LLP
Jersey, Channel Islands
Date: 19 March 2013
Notes:
1. The maintenance and integrity of the Hellenic Carriers Limited web site is the
responsibility of the directors; the work carried out by the auditors does not
involve consideration of these matters and, accordingly, the auditors accept no
responsibility for any changes that may have occurred to the financial statements
since they were initially presented on the web site.
2. Legislation in Jersey governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions. CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2012
26
Revenue
Expenses and other income
Voyage expenses
Vessel operating expenses
Management fees - related party
Depreciation
Depreciation of dry-docking costs 
Impairment loss
Gain on sale of vessels
General and administrative expenses
Other operating income
Operating loss
Finance expense
Finance income
Foreign currency gain, net
Loss for the year 
Loss per share (U.S.$):
Basic and diluted LPS for the year
Weighted average number of shares 
Notes
3
3
11
7
7
7
7
4
17
5
9
2012
U.S.$’000
13,168
(3,121)
(7,699)
(1,062)
(8,086)
(1,454)
(8,580)
2,072
(1,452)
267
(15,947)
(5,397)
613
-
(4,784)
(20,731)
(0.45)
45,616,851
2011
U.S.$’000
33,186
(3,258)
(9,957)
(1,278)
(11,873)
(1,927)
(29,282)
-
(1,809)
534
(25,664)
(5,194)
480
11
(4,703)
(30,367)
(0.67)
45,616,851
31 December
The accompanying notes 1 to 19 are an integral part of these consolidated financial statements. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2012
27
Loss for the year
Net gain on cash flow hedges
Total comprehensive loss for the year
Notes
13
2012
U.S.$’000
(20,731)
1,801
(18,930)
2011
U.S.$’000
(30,367)
1,637
(28,730)
31 December
The accompanying notes 1 to 19 are an integral part of these consolidated financial statements. Fotini Karamanli
Chief Executive Officer
Elpida Kyriakopoulou
Chief Financial Officer
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
As at 31 December 2012
28
ASSETS
Non-current assets
Vessels, net
Vessels under construction
Deferred charges
Office furniture and equipment
Current assets
Inventories
Trade receivables, net
Claims receivable
Available for sale investments, net of impairment
Due from related parties
Prepaid expenses and other assets
Restricted cash
Cash and cash equivalents
TOTAL ASSETS
EQUITY AND LIABILITIES
Shareholders’ equity
Issued share capital
Share premium
Capital contributions
Cash flow hedging reserves
Retained earnings
Total equity
Non-current liabilities
Long-term debt
Other non-current financial liabilities
Current liabilities
Trade payables 
Current portion of long-term debt
Current portion of other non-current financial liabilities
Accrued liabilities and other payables
Deferred revenue
Total Liabilities
TOTAL EQUITY AND LIABILITIES 
Notes
7
8
12
17
11
10
9
14
14
12
13
12
13
15
2012
U.S.$’000
77,028
28,877
714
3
106,622
264
878
251
-
3,711
355
19,232
28,468
53,159
159,781
46
54,355
10,826
(1,158)
9,847
73,916
62,331
-
62,331
1,055
19,993
1,158
1,328
-
23,534
85,865
159,781
2011
U.S.$’000
105,014
27,842
714
6
133,576
2,237
945
239
-
2,964
420
3,974
44,064
54,843
188,419
46
54,355
10,826
(2,959)
30,578
92,846
79,150
1,265
80,415
2,593
9,002
1,694
1,790
79
15,158
95,573
188,419
31 December
The accompanying notes 1 to 19 are an integral part of these consolidated financial statements.
The financial statements on pages 26 to 54 were approved by the Board of Directors on 12 March 2013 and were signed on its behalf by:  CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
For the year ended 31 December 2012
29
As at 1 January 2011
Loss for the year
Other comprehensive income
Total comprehensive loss
Dividends to equity shareholders (note 16)
At  31 December 2011
Loss for the year 
Other comprehensive income
Total comprehensive loss
At 31 December 2012
Issued
share capital
U.S.$'000
(Note 14)
46
-
-
-
-
46
-
-
-
46
Share
premium
U.S.$'000
(Note 14)
54,355
-
-
-
-
54,355
-
-
-
54,355
Capital
Contributions
U.S.$'000
10,826
-
-
-
-
10,826
-
-
-
10,826
Cash flow
hedging
reserves
U.S.$'000
(4,596)
-
1,637
1,637
-
(2,959)
-
1,801
1,801
(1,158)
Retained
earnings
U.S.$'000
64,963
(30,367)
-
(30,367)
(4,018)
30,578
(20,731)
-
(20,731)
9,847
Total equity
U.S.$'000
125,594
(30,367)
1,637
(28,730)
(4,018)
92,846
(20,731)
1,801
(18,930)
73,916
Number of shares
45,616,851
-
-
-
-
45,616,851
-
-
-
45,616,851
Par value
U.S.$
0.001
-
-
-
-
0.001
-
-
-
0.001
The accompanying notes 1 to 19 are an integral part of these consolidated financial statements. 30
CONSOLIDATED STATEMENT OF CASH FLOWS 
For the year ended 31 December 2012
Operating activities
Loss for the year
Adjustments to reconcile loss to net cash flows:
Depreciation
Depreciation of dry-docking costs
Impairment loss
Gain on sale of vessels
Finance expense
Finance income
Decrease/ (Increase) in inventories
Decrease in trade receivables, claims receivable, prepaid expenses and other assets
Increase in due from related parties
(Decrease)/ Increase in trade payables, accrued liabilities and other payables 
Decrease in deferred revenue
Net cash flows (used in)/ provided by operating activities 
Investing activities
Acquisition/ improvement of vessels
Advances for vessels under construction
Dry-docking costs
Proceeds from sale of vessels
Office furniture and equipment
Interest received
Net cash flows provided by/ (used in) investing activities 
Financing activities
Repayment of long-term debt
Borrowing cost for vessels under construction
Restricted cash
Interest paid
Dividends paid to equity shareholders
Net cash flows used in financing activities 
Net decrease in cash and cash equivalents
Cash and cash equivalents at 1 January 
Cash and cash equivalents at 31 December
Notes
7
7
7
7
5
9
7
8
7
7
12
12
10
12
16
9
9
2012
U.S.$’000
(20,731)
8,086
1,454
8,580
(2,072)
5,397
(613)
101
1,973
176
(747)
(2,020)
(79)
(596)
(504)
(1,035)
(1,207)
13,653
(1)
557
11,463
(5,655)
-
(15,258)
(5,550)
-
(26,463)
(15,596)
44,064
28,468
2011
U.S.$’000
(30,367)
11,873
1,927
29,282
-
5,194
(480)
17,429
(1,603)
3,054
(468)
203
(1,926)
16,689
-
(446)
(1,601)
-
(2)
517
(1,532)
(17,170)
(714)
(2,941)
(5,243)
(4,018)
(30,086)
(14,929)
58,993
44,064
31 December
The accompanying notes 1 to 19 are an integral part of these consolidated financial statements.  Notes to the Consolidated
Financial Statements
1. Formation, Basis of Presentation 
and General Information
Hellenic Carriers Limited (“HCL”, “Hellenic” or the “Company”) was
incorporated under the laws of Jersey on 26 September 2007. On 30
November 2007, Hellenic Carriers Limited was admitted and started
trading on AIM at a price of GBP 2.12 per share. In total, the Company
received from its listing on AIM an amount of U.S.$58.9 million with the
intention to fund further fleet expansion.
The principal business of the Company is the ownership and operation,
through its subsidiaries, of a fleet of dry bulk carriers providing maritime
services in relation to the transportation of dry cargo products on a
worldwide basis. The address of the registered office of the Company is
28-30 The Parade, St. Helier, Jersey JE1 1EQ, Channel Islands.
The fleet is managed by Hellenic Shipmanagement Corp. (“HSC”), a
wholly-owned subsidiary incorporated under the laws of Marshall Islands
on 17 September 2007 with a branch in Greece. The address of the
management company’s branch is 51 Akti Miaouli, Piraeus, Greece.
The annual consolidated financial statements for the year ended 31
December 2012 include the financial statements of HCL and the financial
statements of its wholly owned subsidiaries listed below.
The annual consolidated financial statements were authorised for issue
in accordance with a resolution of the Board of Directors on 12 March
2013 and are expected to be approved by the Annual General Meeting
of the shareholders.
32 2. Summary of significant 
accounting policies
(a) Basis of Preparation: 
The financial statements of the Company and its subsidiaries have
been prepared on a historical cost basis, except for derivative
financial instruments that are measured at fair value. The
consolidated financial statements are presented in U.S. dollars and
all financial values are rounded to the nearest thousand ($000) except
the per share information.
(b) Statement of Compliance:
The consolidated financial statements as at 31 December 2012 have
been prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union.
(c) Basis of Consolidation: 
The consolidated financial statements comprise the financial statements
of the Company and its subsidiaries as listed in note 1. The financial
statements of the subsidiaries are prepared for the same reporting date
as the Company, using consistent accounting policies. All material inter-
company balances and transactions have been eliminated upon
consolidation. Subsidiaries are consolidated from the date on which
control is transferred to the Group and cease to be consolidated from
the date on which control is transferred out of the Group.
(d) Significant accounting judgements, estimates and assumptions:
The preparation of consolidated financial statements requires
management to make judgements, estimates and assumptions that
affect the reported amounts of revenues, expenses, assets and
liabilities and disclosure of contingent liabilities at the reporting date.
However, uncertainty about these assumptions and estimates could
result in outcomes that require a material adjustment to the carrying
amount of the asset or liability affected in the future. In the process of
applying the Company’s and its subsidiaries accounting policies,
management has not made any judgement with significant effect on
the amounts recognised in the consolidated financial statements,
except for judgements made in connection to impairment assessment.
The key assumptions concerning the future and other key sources of
estimation uncertainty at the financial position date that have a
significant risk of causing a significant adjustment to the carrying amount
of assets and liabilities within the next financial year are the following:
Vessels: Management makes estimates in relation to useful lives of
vessels and their residual value considering industry practices.
(Vessels have a carrying amount of U.S.$77,028 and U.S.$105,014
as at 31 December 2012 and 2011, respectively).
The key estimates and assumptions (related to the vessel’s useful life
and scrap value rates) relating to the carrying values and impairment
of vessels are discussed in paragraphs (l) and (m), respectively.
Provisions for doubtful trade receivables: Provision for doubtful
trade receivables are recorded based on management’s expected
future collectability of the receivables. (Trade receivables, have a
carrying amount of U.S.$878 and U.S.$945 as at 31 December 2012
and 2011, respectively). 
Insurance Claims: Amounts for insurance claims are provided when
amounts are almost certain to be received, based on the Company’s
judgement and estimates of independent adjusters as to the amount
of the claims. (Insurance claims have a carrying amount of U.S.$251
and U.S.$239 as at 31 December 2012 and 2011, respectively).
Contingent Liabilities: Contingent liabilities are provided when
amounts are almost certain to be paid, based on the Company’s
judgement and the opinion of legal advisors. 
(e) Revenues and Related Expenses:
The Company through its subsidiaries generates revenues from the
charter hires and/or freights earned by the vessels. Vessels are chartered
using either time charters, where a contract is entered into for the use
of a vessel for a specific period of time and a specified daily charter hire
rate; or voyage charters, where a contract is made in the spot market
for the use of a vessel for a specific voyage against a specified freight
calculated on the basis of the quantity of cargo carried on board.
If a time charter agreement exists and collection of the related
revenue is reasonably assured, revenue is recognised on a straight
line basis over the period of the time charter. Such revenues are
treated in accordance with IAS 17 as lease income as explained in
paragraph (t) below.
33 Associated voyage expenses, which primarily consist of charterers’
address commissions and brokers’ commissions, are recognised on a
pro-rata basis over the duration of the period of the time-charter. If a
voyage charter exists, the voyage is deemed to commence upon the
completion of discharge of the vessel's previous cargo and is deemed
to end upon the completion of discharge of the cargo carried under the
specific voyage charter. Vessel voyage expenses primarily consisting of
port, canal and bunker expenses that are unique to a particular charter
are paid for by the charterer under time charter arrangements or by the
vessel owning companies under voyage charter arrangements. The
vessel owning companies defer bunker expenses under voyage charter
agreements and charge them to the consolidated income statement
over the related voyage charter period to the extent revenue is
recognised. Port and canal costs are accounted for on an actual basis.
Operating expenses are accounted for on an accrual basis.
Deferred revenue represents cash received prior to the financial
position date which relates to revenue earned after such date. When
a vessel is time chartered, the charterer as per industry practice pays
the revenue related to the specific agreement in advance (usually 15
days in advance). Therefore, as of financial position date, the amount
of revenue relating to the next financial year that was paid by the
charterer is presented in deferred revenue.
Deferred revenue also includes the value ascribed to time charter
agreements assumed upon the purchase of a vessel, if any. This
ascribed amount is amortised over the remaining term of the time
charter and the amortised portion for the period is included in
revenue for the period.
(f) Foreign Currency Translation: 
The functional and presentation currency of the Company and its
subsidiaries is the U.S. dollar because the vessels operate in
international shipping markets which utilise the U.S. dollar as the
functional currency. Transactions involving other currencies during
the year are converted into U.S. dollars using the exchange rates in
effect at the time of the transactions. At the financial position dates,
monetary assets and liabilities, which are denominated in currencies
other than the U.S. dollar, are translated into the functional currency
using the year-end exchange rate. Gains or losses resulting from
foreign currency transactions are included in foreign currency gain or
loss in the consolidated income statement.
(g) Cash and Cash Equivalents: 
The Company and its subsidiaries consider highly liquid investments
such as time deposits and certificates of deposit with an original
maturity of three months or less to be cash equivalents. 
For the purpose of the consolidated statement of cash flows, cash
and cash equivalents consist of cash and short-term deposits as
defined above.
(h) Restricted Cash: 
Certain of the Company’s and its subsidiaries’ loan agreements
require them to deposit funds into a loan retention account in the
name of the borrower and/or to establish earnings recapture
accounts. The amount deposited in retention accounts is equivalent
to the monthly portion of the next capital and interest payment. The
amounts deposited in earnings recapture account represents part of
the excess earnings derived from the operation of the vessels.
Restricted cash also include cash deposited to a bank as security for
the provision of a bank guarantee and cash deposited in pledged
accounts with the lenders for the purpose of being transferred as
bank financing towards new acquisitions (note 10).
(i) Inventories: 
Inventories consist of lubricants, victualling and bunkers, the latter
for vessels that are not trading under time charter agreements on the
cut-off date. Inventories are stated at the lower of cost or net
realisable value and cost is determined by the first-in first-out method.
Inventory of bunkers included therein amounted to U.S.$ nil and
U.S.$1,822 at 31 December 2012 and 2011, respectively.
(j) Trade Receivables, net: 
The amount shown as trade receivables at each financial position date
includes estimated recoveries from charterers for hire, freight and
demurrage billings, net of an allowance for impairment. Subsequent to
initial recognition, trade receivables are recognised and carried at the
lower of their original invoiced value and recoverable amount. At each
financial position date, all potentially uncollectible accounts are
assessed individually for the purpose of determining the appropriate
allowance for impairment. Impaired debts are derecognized when they
are assessed as uncollectible. Allowance for doubtful receivables
amounted to U.S.$ nil at 31 December 2012 and 2011.
34 (k) Claims Receivable: 
The Company and its subsidiaries recognise insurance claim
recoveries for damages to vessels in relation to insured risks.
Insurance claim recoveries are recorded net of any deductible
amounts, at the time the vessels suffer such damages. They include
the recoveries from the insurance companies for the claims, provided
it is almost certain that these amounts will be recovered. Claims are
submitted to the insurance company, which may alter recovery
amount. Such adjustments are recorded in the year they become
known. Insurance claims receivable amounted to U.S.$251 and
U.S.$239 at 31 December 2012 and 2011, respectively.
(l) Vessels, net: 
The vessels (including dry-docking costs and component attributable
to favourable or unfavourable lease terms relative to market terms)
are stated at cost, net of accumulated depreciation and any
accumulated impairment loss. Vessel cost consists of the contract
price for the vessel and any material direct costs incurred upon
acquisition of the vessel (initial repairs, improvements, delivery costs
and other expenditures) to prepare the vessel for its initial voyage.
Subsequent expenditures for major improvements are also
capitalised when it is probable that future economic benefits
associated with the improvement will flow to the entity and the cost
of the improvement can be measured reliably.
When the Company and its subsidiaries acquire a vessel subject to
an operating lease, the amount reflected in the cost that is
attributable to favourable or unfavourable lease terms relative to
market terms, is amortised over the remaining term of the lease. The
Company and its subsidiaries determine the fair value of any
component related to time charters assumed, by reference to the
market value of the time charters at the time the vessel is acquired. 
Prior to the change in the accounting policy, the amount ascribed to
the favourable or unfavourable lease terms relative to market terms
was amortised over the remaining term of the time charter and the
amortised portion for the period was included in revenue for the
period.  Therefore, whenever the Company and its subsidiaries
acquired a vessel with a time charter agreement assumed, the cost
of acquisition was allocated between the individual assets and / or
liabilities assumed based on their relative fair values at the time of
acquisition. Although the presentation of the components of the
underlying assets in the consolidated statement of financial position
differ, the total carrying amount of the assets recognised in the
consolidated statement of financial position as well as the amount
of amortisation expense recognised in the income statement
component of the consolidated statement of comprehensive income
would be the same as that prior to the change. 
The change in the accounting policy is applied retrospectively. No
separate assets and/or liabilities had been recognised prior to the
change. There was no effect on prior periods due to the change in
the accounting policy.
The cost of each vessel is depreciated beginning when the vessel is
ready for its intended use, on a straight-line basis over the vessels'
remaining economic useful life, after considering the estimated
residual value based on the assumed scrap value of steel. The
assumed scrap price used in the depreciation calculation has
increased from U.S.$200 to U.S.$350 per lightweight ton effective 1
July 2012. The change in the accounting estimate of the scrap value
was applied prospectively, and has reduced depreciation expense by
U.S.$200 for the year ended 31 December 2012.
Management estimates the useful life of the vessels at 25 years,
which is consistent with industry practice. Acquired second-hand
vessels are depreciated from the date of their acquisition over their
remaining estimated useful life. The remaining useful lives of the
vessels are between 7 and 12 years. The useful lives and residual
values are re-assessed at least on annual basis. A vessel is
derecognised upon disposal or when no future economic benefits
are expected from its use. Any gain or loss arising on de-recognition
of the vessel (calculated as the difference between the net disposal
proceeds and the carrying amount of the vessel including any
unamortised portion of dry-docking) is included in the consolidated
income statement in the year the vessel is derecognised.
From time to time the vessels are required to be dry-docked for
inspection and re-licensing at which time major repairs and
maintenance that cannot be performed while the vessels are in
operation are generally performed. The costs associated with dry-
docking are capitalised and added to the cost of vessel as occurred.
They are amortised on a straight-line basis over the year until the
next scheduled dry-docking, generally 2.5 years. In cases where, the
35 dry-docking takes place earlier than 2.5 years since the previous one,
the carrying amount of the previous dry-docking is derecognised. In
the event of a vessel sale, the respective carrying values of dry-
docking costs are derecognised together with the vessel’s carrying
amount at the time of sale.
At the date of acquisition of a second-hand vessel, management
estimates the component of the cost that corresponds to the economic
benefit to be derived until the next scheduled dry-docking of the vessel
and this component is depreciated on a straight-line basis over the
remaining period until the next estimated dry-docking date.
(m) Impairment of Vessels: 
The vessels are reviewed for impairment in accordance with IAS 36,
"Impairment of Assets." Under IAS 36, the Company and its
subsidiaries assess at each reporting date whether there is an
indication that a vessel may be impaired. If such an indication exists,
the Company and its subsidiaries make an estimate of the vessel’s
recoverable amount. Any impairment loss of the vessel is assessed
by comparison between the carrying amount of the asset and its
recoverable amount. Recoverable amount is the higher of the vessel’s
fair value less costs to sell and its value in use.
If the recoverable amount is less than the carrying amount of the
vessel, the asset is considered impaired and an expense is recognised
equal to the amount required to reduce the carrying amount of the
vessel to its then recoverable amount. Fair value of vessels is
determined by independent marine appraisers. If the valuation from
the appraiser indicates possible impairment, the Company and its
subsidiaries proceed to calculate the vessel’s value in use.
The calculation of value in use is made at the individual vessel level
since separately identifiable cash flow information is available for
each vessel. In developing estimates of future cash flows, the
relevant vessel owning companies make assumptions about future
charter rates, vessel operating expenses and the estimated
remaining useful lives of the vessels.
The projected net operating cash flows are determined by
considering:
• i) for the fiscal years 2013 and 2014: time charter rates achievable 
for vessels of similar type and age in the current freight market; ii)
for the period 2015 onwards: the average rate for 1 year timer
charter period of the previous decade, applying thereon a revenue
growth rate of 2.0%. 
• the cash outflows which comprise of operating expenses on which 
an inflation rate of 3.5% is applied and future dry-docking costs for
which budgeted amounts are used.
• the estimated remaining useful lives of the vessels, in line with the 
assumptions used for the depreciation calculation of the vessels. 
The net operating cash flows are discounted to their present value
as at the date of the financial statements using the weighted average
cost of capital as adjusted to reflect the risks specific to the assets’
cash flows. The discount rate calculation is based on the specific
circumstances of the Company and its subsidiaries and derived from
its weighted average cost of capital (WACC). The impairment loss
recognised by the Company and its subsidiaries was U.S.$8,580 and
U.S.$29,282 for the years ended 31 December 2012 and 2011,
respectively (note 7).
(n) Vessels under construction: 
The vessels under construction are recognised at cost which includes
the progress payments made to the shipyards and any costs (interest,
commitment fees and on-site supervision costs incurred during the
construction periods) directly attributable to bringing the vessels to
the location and condition necessary for operation in the intended
manner. Vessels under construction remain at cost until they become
operative upon delivery.
(o) Borrowing costs:  
Borrowing costs directly attributable to the acquisition or
construction of an asset that necessarily takes a substantial period
of time to get ready for its intended use are capitalised as part of the
cost of the respective assets. All other borrowing costs are expensed
in the period they occur. Borrowing costs consist of interest and other
costs incurred in connection with the borrowing of funds.
(p) Long-Term Debt: 
Long-term debt is initially recognised at the fair value of the
consideration received net of issue costs directly attributable to the
36 borrowing. After initial recognition, long-term debt is subsequently
measured at amortised cost using the effective interest rate method.
Amortised cost is calculated by taking into account any issue costs
and any discount or premium on settlement.
A financial liability is derecognised when the obligation under the
liability is discharged or cancelled or expired.
The Company and its subsidiaries capitalise borrowing costs that are
directly attributable to acquisition or construction of the asset. Please
refer to paragraph (o).
(q) Derivative Financial Instruments and Hedging: 
The Company and its subsidiaries use derivative financial instruments
such as interest rate swaps to hedge risks associated with interest rate
fluctuations. Such derivative financial instruments are initially recognised
at fair value on the date on which a derivative contract is entered into
and are subsequently re-measured at fair value using bid-market prices
on each reporting date. Derivatives are carried as assets when the fair
value is positive and as liabilities when the fair value is negative.
Any gains or losses arising from changes in fair value on derivatives
during the year that do not qualify for hedge accounting are taken
directly to profit or loss.
For the purpose of hedge accounting, hedges are classified as: 
• Fair value hedges when hedging the exposure to changes in the 
fair value of a recognised asset or liability or an unrecognised firm
commitment (except for foreign currency risk); or
• Cash flow hedges when hedging exposure to variability in cash 
flows that is either attributable to a particular risk associated with a
recognised asset or liability or a highly probable forecast transaction
or the foreign currency risk in an unrecognised firm commitment; or
• Hedges of a net investment in a foreign operation.
At the inception of a hedge relationship, the Company and its
subsidiaries formally designate and document the hedge relationship
to which they wish to apply hedge accounting and the risk
management objective and strategy for undertaking the hedge. The
documentation includes identification of the hedging instrument, the
hedged item or transaction, the nature of the risk being hedged and
how the entity will assess the hedging instrument’s effectiveness in
offsetting the exposure to changes in the hedged item’s fair value or
cash flows attributable to hedged risk. 
Such hedges are expected to be highly effective in achieving
offsetting changes in fair value or cash flows and are assessed on
an on-going basis to determine that they actually have been highly
effective throughout the financial reporting periods for which they
were designated.
Hedges which meet the strict criteria for hedge accounting are
accounted for as Cash Flow Hedges. 
The effective portion of the gain or loss on the hedging instrument is
recognised directly in equity, while any ineffective portion is
recognised immediately in the consolidated income statement.
Amounts taken to equity are transferred to the consolidated income
statement when the hedged transaction affects profit or loss, such
as when the hedged financial income or financial expense is
recognised or when a forecast sale occurs. Where the hedged item
is the cost of a non-financial asset or non-financial liability, the
amounts taken to equity are transferred to the initial carrying amount
of the non-financial asset or liability.
If the forecast transaction or firm commitment is no longer expected
to occur, amounts previously recognised in equity are transferred to
the consolidated income statement. If the hedging instrument
expires or is sold, terminated or exercised without replacement or
rollover, or if its designation as a hedge is revoked, amounts
previously recognised in equity remain in equity until the forecast
transaction or firm commitment occurs.
The Company and its subsidiaries use interest rate swaps as hedges
of their exposure to hedge risks associated with interest rate
fluctuations (note 13).
(r) Segment Reporting: 
The Company and its subsidiaries report financial information and
evaluate their operations by charter revenues and not, for example,
by (i) the length of ship employment for their customers, i.e. spot or
37 time charters; or (ii) type of vessel. Management reviews operating
results solely by revenue per day and operating results of the fleet
and thus the Company and its subsidiaries have determined that they
operate in one reportable segment. Furthermore, when the vessel
owning companies charter out a vessel to a charterer, the charterer
is free to trade the vessel worldwide and, as a result, the disclosure
of geographic information is impracticable.
(s) Finance Income: 
Finance income is earned from the short-term deposits of the
Company and its subsidiaries and is recognised on the accrual basis.
(t) Leases: 
Leases of vessels where the vessel owning companies do not transfer
substantially all the risks and benefits of ownership of the vessel are
accounted for as operating leases. Lease income on operating leases
is recognised on a straight line basis over the lease term. Contingent
rents are recognised as revenue in the period in which they are earned.
(u) Share Capital: 
Ordinary shares are classified as equity. Incremental costs directly
attributable to the issue of new shares are recognised in equity as a
deduction from the proceeds.
(v) Provisions and Contingencies: 
Provisions are recognised when the Company and its subsidiaries
have a present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources embodying
economic resources will be required to settle the obligation and a
reliable estimate of the amount of the obligation can be made.
Provisions are reviewed at each financial position date and adjusted
to reflect the present value of the expenditure expected to be required
to settle the obligation. Contingent liabilities are not recognised in the
financial statements but are disclosed unless the possibility of an
outflow of resources embodying economic benefits is remote.
Contingent assets are not recognised in the financial statements but
are disclosed when an inflow of economic benefits is probable.
(w) Offsetting of Financial Assets and Liabilities: 
Financial assets and liabilities are offset and the net amount is
presented in the consolidated statement of financial position only
when the Company and/or its subsidiaries have a legally enforceable
right to set off the recognised amounts and intend either to settle
such asset and liability on a net basis or to realise the asset and settle
the liability simultaneously.
(x) De-recognition of Financial Assets and Liabilities:
(i) Financial assets
A financial asset (or, where applicable a part of a financial asset or
part of similar financial assets) is derecognised where:
• the rights to receive cash flows from the asset have expired;
• the Company and/or its subsidiaries retain the right to receive cash 
flows from the asset, but have assumed an obligation to pay them
in full without material delay to a third party under a “pass-through”
arrangement; or
• the Company and/or its subsidiaries have transferred their rights 
to receive cash flows from the asset and either (a) have transferred
substantially all the risks and rewards of the assets, or (b) have
neither transferred nor retained substantially all the risks and
rewards of the asset, but have transferred control of the asset.
Where the Company and/or its subsidiaries have transferred their
rights to receive cash flows from an asset and have neither
transferred nor retained substantially all the risks and rewards of the
asset nor transferred control of the asset, the asset is recognised to
the extent of the Company and/or its subsidiaries continuing
involvement in the asset. Continuing involvement that takes the form
of a guarantee over the transferred asset is measured at the lower
of the original carrying amount of the asset and the maximum
amount of consideration that the Company and/or its subsidiaries
could be required to repay.
(ii) Financial liabilities
A financial liability is derecognised when the obligation under the
liability is discharged or cancelled or expires. Where an existing
financial liability is replaced by another from the same on
substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated
as a de-recognition of the original liability and the recognition of a
new liability and the difference in the respective carrying amounts is
recognised in the consolidated income statement.
38 (y) IFRS and IFRIC Interpretations that became effective in the year 
ended 31 December 2012: 
The following Standards and Interpretations became effective within
the year ended 31 December 2012. None of the Standards and
Interpretations had an impact in the consolidated financial
statements of the Company and its subsidiaries.
• IFRS 7, “Financial Instruments: Disclosures” (Amended). Enhanced 
Derecognition Disclosure Requirements. This amendment requires
additional disclosure about financial assets that have been
transferred but not derecognised to enable the user of the financial
statements to understand the relationship with their associated
liabilities. In addition, the amendment requires disclosures about
continuing involvement in derecognised assets to enable the user to
evaluate the nature of, and risks associated with such involvement. 
• IAS 12, “Income Taxes” (Amended). Recovery of Underlying Assets. 
This amendment clarifies the determination of deferred tax on
investment property measured at fair value. The amendment
introduces a rebuttable presumption that deferred tax on
investment property measured using the fair value model in IAS 40
should be determined on the basis that its carrying amount will be
recovered through sale. Furthermore, it introduces the requirement
that deferred tax on non-depreciable assets that are measured
using the revaluation model in IAS 16 always be measured on a
sale basis of the asset. 
(z) IFRS and IFRIC Interpretations not yet effective: 
The Company and its subsidiaries have not applied the following IFRS
and IFRIC Interpretations that have been issued but are not yet
effective and not early adopted:
• IAS 1, “Financial Statement Presentation” (Amended). Presentation 
of Items of Other Comprehensive Income (“OCI”). This amendment is
effective for annual periods beginning on or after 1 July 2012. The
amendments to IAS 1 change the grouping of items presented in OCI.
Items that could be reclassified (or ‘recycled’) to profit or loss at a future
point in time (for example, upon derecognition or settlement would be
presented separately from items that will never be reclassified. This
amendment affects presentation only and has no impact on financial
position or performance of the Company and its subsidiaries. 
• IAS 19, “Employee Benefits” (Amended). This amendment is effective
for annual periods beginning on or after 1 January 2013. The IASB
has issued numerous amendments to IAS 19. These range from
fundamental changes such as removing the corridor mechanism
and the concept of expected returns on plan assets to simple
clarifications and re-wording. The Company and its subsidiaries do
not expect that this amendment will have an impact on their
financial position or performance.
• IAS 28, “Investments in Associates and Joint Ventures” (as revised 
in 2011). This Standard is effective for annual periods beginning on
or after 1 January 2013. As a consequence of the new IFRS 11 and
IFRS 12,  IAS 28 has been renamed IAS 28 Investments in Associates
and Joint Ventures, and describes the application of the equity
method to investments in joint ventures in addition to associates.
The Company and its subsidiaries do not expect that this amendment
will have an impact on their financial position or performance.
• IAS 32, “Financial Instruments: Presentation” (Amended). Offsetting
Financial Assets and Financial Liabilities This amendment is
effective for annual periods beginning on or after 1 January 2014.
The amendment clarifies the meaning of “currently has a legally
enforceable right to set-off”. This amendment also clarifies the
application of the IAS 32 offsetting criteria to settlement systems
(such as central clearing house systems) which apply gross
settlement mechanisms that are not simultaneous. This amendment
affects presentation only and has no impact on financial position or
performance of the Company and its subsidiaries. 
• IFRS 7, “Financial Instruments: Disclosures” (Amended). Offsetting 
Financial Assets and Financial Liabilities This amendment is effective
for annual periods beginning on or after 1 January 2013. The
39 amendment requires an entity to disclose information about rights
to set-off and related arrangements (e.g. collateral agreements). The
disclosures would provide users with information that is useful in
evaluating the effect of netting arrangements on an entity’s financial
position. The new disclosures are required for all recognized financial
instruments that are set off in accordance with IAS 32 Financial
Instruments: Presentation. The disclosures also apply to recognized
financial instruments that are subject to an enforceable master
netting arrangement or similar agreement, irrespective of whether
they are set off in accordance with IAS 32. This amendment affects
presentation only and has no impact on financial position or
performance of the Company and its subsidiaries.
• IFRS 9, “Financial Instruments: Classification and Measurement”.
The new standard is effective for annual periods beginning on or
after 1 January 2015. IFRS 9, as issued, reflects the first phase of
the IASBs work on the replacement of IAS 39 and applies to
classification and measurement of financial assets and financial
liabilities as defined in IAS 39. The standard was initially effective
for annual periods beginning on or after 1 January 2013, but
amendments to IFRS 9 Mandatory Effective Date of IFRS 9 and
Transition Disclosures, issued in December 2011, moved the
mandatory effective date to 1 January 2015. In subsequent phases,
the IASB will address hedge accounting and impairment of financial
assets. The adoption of the first phase of IFRS 9 will have an effect
on the classification and measurement of financial assets, but will
not have an impact on classification and measurements of financial
liabilities. This standard has not yet been endorsed by the European
Union (“EU”). The Company and its subsidiaries will quantify the
impact of the amendment on their financial position or performance
in conjunction with the other phases, when the final standard
including all phases is issued.
• IFRS 10, “Consolidated Financial Statements”. The new standard 
is effective for annual periods beginning on or after 1 January 2013.
IFRS 10 replaces the portion of IAS 27 Consolidated and Separate
Financial Statements that addresses the accounting for
consolidated financial statements. It also addresses the issues
raised in SIC-12 Consolidation - Special Purpose Entities. IFRS 10
establishes a single control model that applies to all entities
including special purpose entities. 
The changes introduced by IFRS 10 will require management to
exercise significant judgment to determine which entities are
controlled and therefore are required to be consolidated by a
parent, compared with the requirements that were in IAS 27. The
Company and its subsidiaries do not expect that this amendment
will have an impact on their financial position or performance.
• IFRS 11, “Joint Arrangements”. The new standard is effective for 
annual periods beginning on or after 1 January 2013. IFRS 11
replaces IAS 31 Interests in Joint Ventures and SIC-13 Jointly-
controlled Entities - Non-monetary Contributions by Venturers. IFRS
11 removes the option to account for jointly controlled entities
(JCEs) using proportionate consolidation. Instead, JCEs that meet
the definition of a joint venture must be accounted for using the
equity method. The Company and its subsidiaries do not expect
that this amendment will have an impact on their financial position
or performance.
• IFRS 12, “Disclosures of Interests in Other Entities”. The new standard
is effective for annual periods beginning on or after 1 January 2013.
IFRS 12 includes all of the disclosures that were previously in IAS
27 related to consolidated financial statements, as well as all of the
disclosures that were previously included in IAS 31 and IAS 28.
These disclosures relate to an entity’s interests in subsidiaries, joint
arrangements, associates and structured entities. The Company
and its subsidiaries do not expect that this amendment will have
an impact on their financial position or performance.
• IFRS 13, “Fair Value Measurement”. The new standard is effective 
for annual periods beginning on or after 1 January 2013. IFRS 13
establishes a single source of guidance under IFRS for all fair value
measurements. IFRS 13 does not change when an entity is required
to use fair value, but rather provides guidance on how to measure
fair value under IFRS when fair value is required or permitted. The
Company and its subsidiaries are in progress of assessing the
impact of the amendment on their financial position or performance.
• IFRIC 20, “Stripping Costs in the Production Phase of a Surface Mine”. 
The interpretation is effective for annual periods beginning on or
after 1 January 2013. This interpretation applies to waste removal
(stripping costs) incurred in surface mining activity, during the
production phase of the mine. The interpretation addresses the
40 accounting for the benefit from the stripping activity. The Company
and its subsidiaries do not expect that this amendment will have
an impact on their financial position or performance.
• Improvements to IFRSs. The IASB issued the Annual Improvements 
to IFRSs 2009-2011 Cycle, which contains amendments to its
standards and the related Basis for Conclusions. The annual
improvements project provides a mechanism for making
necessary, but non-urgent, amendments to IFRS. The effective
date for the amendments is for annual periods beginning on or
after 1 January 2013. The Company and its subsidiaries do not
expect that these amendments will have an impact on their
financial position or performance.
- IAS 1 Presentation of Financial Statements: 
This improvement clarifies the difference between voluntary
additional comparative information and the minimum required
comparative information. Generally, the minimum required
comparative period is the previous period. 
- IAS 16 Property, Plant and Equipment: 
This improvement clarifies that major spare parts and servicing
equipment that meet the definition of property, plant and
equipment are not inventory.
- IAS 32 Financial Instruments, Presentation: 
This improvement clarifies that income taxes arising from
distributions to equity holders are accounted for in accordance
with IAS 12 Income Taxes. 
- IAS 34 Interim Financial Reporting: 
The amendment aligns the disclosure requirements for total
segment assets with total segment liabilities in interim financial
statements. This clarification also ensures that interim disclosures
are aligned with annual disclosures. 
• “Transition Guidance” (Amendments to IFRS 10, IFRS 11 and IFRS 12).
The guidance is effective for annual periods beginning on or after
1 January 2013. The IASB issued amendments to IFRS 10
Consolidated Financial Statements, IFRS 11 Joint Arrangements
and IFRS 12 Disclosure of Interests in Other Entities. The
amendments change the transition guidance to provide further
relief from full retrospective application. The date of initial
application’ in IFRS 10 is defined as ‘the beginning of the annual
reporting period in which IFRS 10 is applied for the first time’.
The assessment of whether control exists is made at ‘the date of
initial application’ rather than at the beginning of the comparative
period. If the control assessment is different between IFRS 10 and
IAS 27/SIC-12, retrospective adjustments should be determined.
However, if the control assessment is the same, no retrospective
application is required. If more than one comparative period is
presented, additional relief is given to require only one period to be
restated. For the same reasons IASB has also amended IFRS 11
Joint Arrangements and IFRS 12 Disclosure of Interests in Other
Entities to provide transition relief. This guidance has not yet been
endorsed by the EU. The Company and its subsidiaries do not
expect that these amendments will have an impact on their
financial position or performance.
• “Investment Entities” (Amendments to IFRS 10, IFRS 12 and IAS 27). 
The amendment is effective for annual periods beginning on or
after 1 January 2014. The amendment applies to a particular class
of business that qualify as investment entities. The IASB uses the
term ‘investment entity’ to refer to an entity whose business
purpose is to invest funds solely for returns from capital
appreciation, investment income or both. An investment entity
must also evaluate the performance of its investments on a fair
value basis. Such entities could include private equity organisations,
venture capital organisations, pension funds, sovereign wealth
funds and other investment funds. Under IFRS 10 Consolidated
Financial Statements, reporting entities were required to
consolidate all investees that they control (i.e. all subsidiaries). The
Investment Entities amendment provides an exception to the
consolidation requirements in IFRS 10 and requires investment
entities to measure particular subsidiaries at fair value through
profit or loss, rather than consolidate them.  The amendment also
sets out disclosure requirements for investment entities. This
amendment has not yet been endorsed by the EU. The Company
and its subsidiaries do not expect that these amendments will have
an impact on their financial position or performance.
41 3. Voyage & Vessel Operating Expenses
The amounts in the accompanying consolidated income statement are
analysed as follows:
4. General and Administrative Expenses
The amounts in the accompanying consolidated income statement are
analysed as follows:
5. Finance Expense
The amounts in the accompanying consolidated income statement are
analysed as follows:
6. Earnings / (Loss) per Share 
Basic loss per share ("LPS") are calculated by dividing loss for the year
attributable to shareholders of Hellenic Carriers Limited of U.S.$20,731
and U.S.$30,367 for the years ended 31 December 2012 and 2011,
respectively, by the weighted average number of shares outstanding
45,616,851 for the years ended 31 December 2012 and 2011.
Diluted LPS reflects the potential dilution that could occur if share
options or other contracts to issue shares were exercised or converted
into shares. Since no such options or contracts existed as at 31
December 2012 and 2011, the numerators and denominators used to
calculate diluted LPS are the same as those used to calculate basic LPS
as disclosed above.
42 7. Vessels, net
Vessels consisted of the following at 31 December:
The Company’s long-term loans are secured by a first preferred mortgage
on the respective vessels, as well as general assignment of the earnings,
insurances and requisition compensation of the respective vessel.
Depreciation charge for the year in the accompanying consolidated income
statement includes U.S.$4 depreciation on office furniture and equipment
for the year ended 31 December 2012 (31 December 2011: U.S.$4).
Additions
In July 2012, one vessel namely the M/V Hellenic Horizon performed her
intermediate survey and while being at the yard proceeded with several
additions to her equipment. The capitalised dry docking cost for the
above survey amounted to U.S.$1,207 and the cost of the respective
additions amounted to U.S.$504. Both amounts were included in the
vessels cost as at 31 December 2012. The deferred dry-docking cost
and vessel additions for the year ended 31 December 2011, amounted
to U.S.$1,601 and U.S.$ nil, respectively.
Disposals 
On 16 May 2012, Thasos Shipping Co. Ltd., owner of the vessel Hellenic
Sky completed the sale of the 68,591 dwt Panamax vessel built in 1994
at Sasebo Heavy Industries in Japan to an unaffiliated third party for a
net consideration of U.S.$9,401 in cash. As of the delivery date the
vessel had a carrying value of U.S.$7,102 inclusive of the unamortised
balance of her latest dry-docking. The gain resulting from the sale of the
vessel, after deducting all expenses directly related to the sale was
U.S.$2,299.
On 23 August 2012, Patmos Shipping Co. Ltd., owner of the 1991-built,
65,434 dwt Panamax vessel Hellenic Sea completed the sale of the
vessel to an unaffiliated third party for a net consideration of U.S.$4,252
in cash. As of the delivery date the vessel had a carrying value of
U.S.$4,479 inclusive of the unamortised balance of her latest dry-
docking. The loss resulting from the sale of the vessel, after deducting
all expenses directly related to the sale was U.S.$227.
The net gain from the sale of the two Panamax vessels amounting to
U.S.$2,072 is included in the consolidated statement of income for the
year ended 31 December 2012.
Following an agreement with the lenders of the two sold vessels, the
proceeds from the sales were pledged with the lenders for the purpose
of being transferred as bank financing towards the acquisition of modern
second hand bulk carriers (note 10).
43 Impairment
Further to the receipt of valuations of the fair market value of the fleet
as of 31 December 2012 issued by independent third party valuators, an
indication of impairment was identified for three vessels and vessels’
value in use was calculated at the individual vessel level, through
assessment of each vessel’s future cash flows.
In developing estimates of future cash flows, the Company and its
subsidiaries make assumptions about future charter rates using a) for
the fiscal years 2013 and 2014 time charter rates achievable for vessels
of similar type and age in the currently freight market and b) for the
period 2015 onwards, the average rate for 1 year time charter period of
the previous decade applying thereon a revenue growth rate of 2.0%.
The cash inflows are calculated based on actual fleet utilisation of the
period ended and the cash outflows comprise of operating expenses on
which an inflation rate of 3.5% is applied and future dry-docking costs
for which budgeted amounts are used. 
The estimated remaining useful lives of the vessels are in line with the
assumptions used for the depreciation calculation of the vessels. In order
to discount the future cash flows the Company uses as discount rate the
weighted average cost of capital. The impairment exercise is highly
sensitive to potential variances in the time charter rates and the fleet
effective utilization. Consequently, a sensitivity analysis was performed
by assigning possible alternative values to these two significant inputs.
The impairment test and sensitivity analysis performed resulted in an
adjustment of the book values for the three vessels to their value in use.
Therefore, an impairment loss of U.S.$8,580 was recognised by the
Company and its subsidiaries for the year ended 31 December 2012. The
impairment loss, calculated on a comparable basis, for 2011 was
U.S.$29,282.
8. Vessels under construction
On 28 June 2010, “Symi Shipping Corp” (“Symi”), entered into a
shipbuilding contract with Zhejiang Ouhua Shipbuilding Co. Ltd. for the
construction of a 82,000 dwt vessel for a total consideration of
U.S.$34,200. The vessel is expected to be delivered in 2013. In terms of
financing, an amount of U.S.$13,600 was paid to the yard as advance
payment in 2010 and Symi has secured financing of up to 65% of the
vessel’s market value upon delivery for the purpose of covering the
remaining balance due to the yard upon delivery (note 12).
On the same date, “Ithaca Maritime Ltd” (“Ithaca”) entered into a
shipbuilding contract with the above mentioned yard for the construction
of a second Kamsarmax vessel of 82,000 dwt under similar terms and
conditions. In terms of financing, an amount of U.S.$13,600 was paid to
the yard as advance payment in 2010 and Ithaca has also secured financing
of up to 65% of the vessel’s market value upon delivery for the purpose of
covering the remaining balance due to the yard upon delivery (note 12).
In addition to the advance payments to the yard, other expenses
capitalised as of 31 December 2012 amounted to U.S.$1,677 (2011:
U.S.$642) and consisted of: a) supervision cost and services provided in
relation to the placement of the orders U.S.$880 (2011: U.S.$278) of
which U.S.$759 (2011: U.S.$230) was charged by Mantinia Shipping Co
S.A. (note 11), b) capitalised borrowing costs of U.S.$694 (2011:
U.S.$288), c) legal expenses of U.S.$61 (2011: U.S.$51) and, e) Freight
Demurrage Defence Insurance of U.S.$42 (2011: U.S.$25).
9. Cash and Cash Equivalents
The amounts in the accompanying consolidated statement of financial
position are analysed as follows:
Cash at banks earns interest at floating rates based on daily bank deposit
rates. Short-term deposits are made for varying periods of between one
day and three months, depending on the immediate cash requirements of
the Company and its subsidiaries and earn interest at the respective short-
term deposit rates. Interest earned during the years ended 31 December
2012 and 2011, amounted to U.S.$613 and U.S.$480, respectively and is
included in the accompanying consolidated income statement.
44 10. Restricted Cash
The amounts in the accompanying consolidated statement of financial
position are analysed as follows:
Restricted cash reported at 31 December 2012 amounted to U.S.$19,232
(2011: U.S.$3,974). This amount consists of a) U.S.$15,567 being the
aggregate of the proceeds from the sale of the vessels Hellenic Sky and
Hellenic Sea which are held pledged with the vessels’ lenders for the
purpose described in note 12 (2011: U.S.$ nil), b) U.S.$3,400 being cash
retained with a bank against issuance of a bank guarantee in the amount
of U.S.$3,100 for the purpose described in note 17 (2011: U.S.$3,400)
and c) U.S.$265 respectively being cash held in bank accounts of the
vessel owning companies that are retained for the payment of future
instalments (2011: U.S.$574).
11. Related party transactions
Transactions with related parties consisted of the following for the year
ended 31 December:
The vessel-owning companies of the operating vessels included in the
consolidated financial statements have entered into management
agreements with HSC to provide, in the normal course of business, a
wide range of shipping managerial and administrative services, such as
commercial operations, chartering, technical support and maintenance,
engagement and provision of crew, financial and accounting services
and cash handling in exchange for a monthly management fee of
U.S.$34.1 per vessel (U.S.$33.0 per month during fiscal year 2011).
These transactions are eliminated in the consolidation.
Additionally, HSC has subcontracted to Mantinia Shipping Company S.A.
(“Mantinia”), a related party, under common control, the technical
management of the operating vessels. Out of the monthly fee of U.S.$34.1
payable to HSC, the amount of U.S.$22.0 per vessel (U.S.$21.3 per month
during fiscal year 2011) is payable to Mantinia on a monthly basis for the
services provided. For the year ended 31 December 2012 and 2011, sub-
management fees charged by Mantinia amounted to U.S.$1,062 and
U.S.$1,278, respectively and were included in Management fees - related
party in the consolidated statement of income.
Furthermore Mantinia provides several services to Symi and to Ithaca in
relation to the shipbuilding contracts (note 8). The fees for the above
services capitalised to vessels under construction as of 31 December 2012
and 31 December 2011 amounted to U.S.$759 and U.S.$230, respectively.
Balances due from related parties as at 31 December comprise the
following:
The balance due from Hellenic Carriers Corporation S.A., a related party
under common control, was created upon the Group’s restructuring
during the Company’s preparation for admission to AIM and is expected
to be settled.
45 The fixed Directors’ remuneration amounts for the year ended 31
December 2012 remain unchanged. However, Ms Fotini Karamanli
voluntarily reduced her fixed remuneration to Euro 140,000 for the year
ended 31 December 2012 from Euro 200,000. Remuneration amounts
are agreed in currencies other than the U.S. dollar (namely GBP and Euro),
therefore, the remaining variation between the fixed amounts of 2012
and 2011 reflect foreign exchange differences. No pension contributions
were made during the years ended 31 December 2012 and 2011.
12. Long-Term Debt
The amounts in the accompanying consolidated statement of financial
position are analysed as follows:
46
Directors’ remuneration for the year ended 31 December is analysed
as follows:  Loan a: On 6 November 2007, two vessel-owning subsidiaries of HCL
entered into a loan facility agreement for U.S.$57,850. The loan facility was
made available for the purposes of (i) refinancing in full the existing
indebtness of M/V Hellenic Sky (ii) financing part of the acquisition of M/V
Hellenic Horizon and, (iii) providing corporate liquidity. An amount of
U.S.$6,200 was repaid immediately after the Company’s Admission on AIM.
Further to the latest supplemental agreement signed in June 2012, the
repayment schedule of the loan facility was amended effective 1 January
2012 and the tenor of the loan was extended for three years, the new
maturity date being 8 May 2018. In relation to the sale of the M/V Hellenic
Sky in May 2012, the supplemental agreement provided for the proceeds
from the sale of the vessel to be retained in a pledged account with the
lender giving the borrowers the option to transfer such proceeds towards
the acquisition of a modern second hand bulk carrier, within a period of
eighteen months from the vessel’s delivery to its buyers, expiring on 16
November 2013. The future repayment schedule of the loan facility depends
on the date of the exercise of this option in case a new vessel is acquired.
As of 31 December 2012, the Company and its subsidiaries have not entered
into an agreement for a vessel acquisition, therefore, if such acquisition is
not concluded by 16 November 2013, the Company and its subsidiaries will
make a prepayment equal to the balance standing to the credit of the
pledged account with the lender on 16 November 2013, currently amounting
to U.S.$10,255. This amount was included in the current portion of the long
term debt in the statement of financial position as of 31 December 2012.
The outstanding balance as of 31 December 2012, is repayable in four
quarterly instalments of U.S.$500 each, followed by the prepayment of
the pledged cash balance and eighteen quarterly instalments of
U.S.$1,000. The first instalment was due on 8 February 2013 and the final
instalment is due on 8 May 2018, along with a reduced balloon payment
of U.S.$1,045. 
Loan b: On 17 March 2008, the Company entered into a loan facility
agreement for up to U.S.$190,000. The loan facility was made available
for the purposes of (i) refinancing in full the existing indebtness of M/V
Hellenic Sea and M/V Hellenic Breeze, (ii) financing part of the acquisition
cost of M/V Konstantinos D., (iii) financing part of the acquisition cost of
M/V Hellenic Wind, (iv) providing working capital and (v) providing
financing for future dry-bulk vessel acquisition(s). The amount of
U.S.$110,000 was drawn during 2008 and in December 2008, the
Company agreed with the lender full cancellation of the undrawn amount
of U.S.$80,000. In addition, following the sale of the M/V Hellenic Breeze
in August 2010, an amount of U.S.$21,000 was prepaid to the lender.
Further to a supplemental agreement signed in December 2011, the
repayment schedule of the loan facility was amended effective 7 February
2012. Following the sale of the M/V Hellenic Sea, in August 2012, the
Company entered into the latest supplemental agreement, providing that
the total proceeds from the sale of the vessel to be retained in a pledged
account with the lender giving the borrowers the option to transfer such
proceeds towards the acquisition of a modern second hand bulk carrier,
within a period of twelve months from the vessel’s delivery to its buyers,
expiring on 23 August 2013. In addition, in case that the option is
exercised, the supplemental agreement provides that the tenor of the
loan be extended for four years, the new maturity date being 9 May 2020.
The future repayment schedule of the loan will depend on the date of the
exercise of this option in case a new vessel is acquired.
As of 31 December 2012, the Company and its subsidiaries have not
entered into an agreement for a vessel acquisition and if such acquisition
is not concluded by 23 August 2013, the Company and its subsidiaries will
make a prepayment equal to the balance standing to the credit of the
pledged account with the lender on 23 August 2013, currently amounting
to U.S.$5,312. This amount was included in the current portion of the long
term debt in the statement of financial position as of 31 December 2012. 
The outstanding balance as of 31 December 2012, is repayable in three
quarterly instalments of U.S.$650 each, followed by the prepayment of
U.S.$5,312 equal to the pledge cash, one quarterly instalment of
U.S.$750, and ten quarterly instalments of U.S.$1,500. The first
instalment was due on 7 February 2013 and the final instalment is due
on 9 May 2016, along with a partly reduced balloon payment of
U.S.$28,603. 
Further to the supplemental agreements, part of the annual excess
earnings generated by the vessels financed under loans a and b,
commencing from the financial year 2012, will be paid to the lending
banks at the beginning of the next fiscal year. The payment due under
this clause for the fiscal year 2012 is U.S.$ nil.
The bank loans denominated in U.S. dollars bear interest at LIBOR plus a
margin payable quarterly. 
Loans a and b are secured by first preferred mortgages on the respective
vessels as well as general assignment of the earnings, insurances and 
47 requisition compensation of the vessels. The loan agreements contain
covenants including restrictions as to changes in management and
ownership of the vessels, additional indebtedness and mortgaging of
vessels without the bank's prior consent as well as minimum
requirements regarding hull cover ratio and security amount. The main
financial covenants for loan a and loan b are waived until 1 January 2014.
The Company and its subsidiaries are obliged under certain loan
agreements to hold free cash liquidity of U.S.$400 per vessel on a
consolidated basis. As at 31 December 2012 and 2011, restricted cash
relating to financing arrangements of the Company and its subsidiaries
amounted to U.S.$265 and U.S.$574 (note 10).
HCL has issued corporate guarantee in favour of the bank of loan a, as a
further security.
The weighted average interest rate for the year ended 31 December 2012
and 2011 was 5.95% and 5.25%, respectively including of the effect of
the related interest rate swaps. Total interest paid was U.S.$5,550 and
U.S.$5,243 for the years ended 31 December 2012 and 2011,
respectively.
Loan facilities with a European financial institution for the financing of
the new buildings under construction have been signed. The lender
offered a term-loan facility of up to 65% of each vessel’s market value
upon delivery but not more than U.S.$22,100 per vessel. Each loan is
repayable in twelve semi-annual instalments of U.S.$600 each and a
balloon payment of U.S.$14,900. The first instalment is payable six
months after drawdown and the final instalment is due and payable on
maturity of the loan, six years after drawdown. HCL has issued corporate
guarantee as a further security. Borrowing costs for the arrangement of
the financing as of 31 December 2012 amounted to U.S.$714 (2011:
U.S.$714) and were classified as non-current assets in the accompanying
consolidated statement of financial position. 
13. Other non-current financial liabilities
The amounts in the accompanying consolidated statement of financial
position are analysed as follows:
At 31 December 2012, the Company had two interest rate swaps
designated as hedges of expected future libor payments in connection
to the loans described under note 12. The critical terms of the interest
rate swaps have been negotiated upon designation to match the terms
of the respective loans. Under both contracts, the Company exchanges
variable to fixed interest rates at 3.99%. At 31 December 2012, the
notional amounts of the swaps were U.S.$25,650 and U.S.$28,900
representing 81.9% and 56.0% of the outstanding balance of loans a
and b, respectively (see note 12). The maturity dates of the swap
agreements are 8 and 7 August 2013, respectively.
The cash flow hedges of the expected future libor payments were
assessed to be highly effective throughout the financial period, therefore,
a net unrealised gain on cash flow hedges amounting to U.S.$1,801 has
been credited to the consolidated statement of comprehensive income
for the year ended 31 December 2012. For the year ended 31 December
2011, the Company recognised a net unrealised gain of U.S.$1,637 which
was charged to the consolidated statement of comprehensive income.
The fair value of the derivative financial instruments at 31 December
2012 and 2011, was a liability of U.S.$1,158 and U.S.$2,959, respectively
and was included in other non-current financial liabilities and current
portion of other non-current financial liabilities in the accompanying
consolidated statement of financial position.
48 14. Share Capital and Share Premium
Share capital consisted of the following 
at 31 December:
The Company was incorporated under the laws of Jersey on 26
September 2007, with an authorised share capital of GBP 10 divided into
10,000 ordinary shares of GBP 1.00 each. By a special resolution dated
20 November 2007, the Company converted its authorised share capital
from pounds sterling to U.S. dollars at an exchange rate of GBP
1=U.S.$2.070 so that the existing share capital was converted to
U.S.$20.7 divided into 10,000 ordinary shares of U.S.$2.070 each. By a
special resolution also dated 20 November 2007, the authorised share
capital of U.S.$20.7 was subdivided into 20,700,000 ordinary shares of
U.S.$0.001 each. By a special resolution also dated 20 November 2007,
the Company increased its authorised share capital by the creation of
an additional 79,300,000 ordinary shares in the share capital of the
Company, following which, the Company’s authorised share capital was
U.S.$100 divided into 100,000,000 ordinary shares of U.S.$0.001 each.    
On 30 November 2007, the Company was admitted to the AIM, issuing
13,684,970 ordinary shares with par value U.S.$0.001 (in addition to the
31,931,881 Ordinary Shares with par value of U.S.$0.001 issued on 27
November 2007) at a premium of U.S.$4.30 per ordinary share thereby
increasing the share capital by U.S.$0.046 million and increasing share
premium by U.S.$58.9 million. Issuance costs directly attributable to the
listing on AIM amounted to U.S.$4.5 million.
The analysis of the share premium is as follows:
15. Accrued Liabilities and Other Payables
The amounts in the accompanying statement of financial position at 31
December are as follows:
16. Dividends Declared
Dividend rights: Under the Company’s Articles of Incorporation, each
ordinary share is entitled to dividends if and when dividends are declared
by the Board of Directors. There are no restrictions on the Company’s ability
to approve dividends, provided that the Directors are able to sign a statement
of solvency. The payment of final dividends is subject to the approval of the
Annual General Meeting of Shareholders (“AGM”), while the payment of
interim dividends is subject to the approval of the Board of Directors.
In order to reinforce the Company’s liquidity and optimize the use of cash
when market opportunities arise, the Directors of the Company
recommended that dividend payment for the year 2012 be suspended. 
The AGM held in May 2011 approved a final dividend for 2010 of GBP
2,486,118 (5.45 pence per share) or U.S.$4,018 which was paid on 20
May 2011 to shareholders on record as of 26 April 2011.
17. Commitments and contingencies
Further to the repudiation of a two year time charter contract between
Arkadia Maritime Corp. (“Arkadia”), the vessel owning company of the
M/V Hellenic Horizon and Samsun Logix Corporation (“Samsun”) as
charterers in February 2009, Arkadia was registered as unsecured
creditor in the Rehabilitation proceedings that were commenced by
49 Samsun in Korea with respect to its claim for unpaid hire and damages
amounting to U.S.$17,500. Following a dispute before the Korean Courts
between Arkadia and Samsun on the damages claim the competent
courts of Seoul ruled in favour of Arkadia on 14 December 2009.
On 19 January 2010, a settlement agreement was reached between
Arkadia and Samsun, whereby: a) Samsun acknowledged the total
amount of the claim and waived its rights to appeal against the above
mentioned decision of the Korean Court and b) Arkadia consented to
approve the Rehabilitation Plan, prepared by Samsun, at the meeting of
the Samsun creditors of 5 February 2010. According to the plan, Arkadia
may recover the acknowledged claim as follows: (i) 34% of the claim in
cash over 10 years (2010-2019) which will be non-interest bearing and
(ii) 66% in Samsun’s shares bearing no voting rights, to be issued after
the court’s approval. The first two non-interest cash payments of
U.S.$593 and U.S.$534, being 10% and 9% respectively of the
recoverable claim as described in sub-paragraph (i) above, were received
on 30 December 2010 and 29 December 2011, respectively. Out of the
total amount of U.S.$534, being the third instalment due on 30
December 2012, the Company received only U.S.$267 and Arkadia has
taken legal steps against Samsun in this regard in Korea. The respective
amounts were credited to other operating income in the accompanying
consolidated income statement. The outcome of the implementation of
the rehabilitation plan remains difficult to forecast and, therefore, future
inflows are uncertain. Accordingly, the Company has not recognised
future cash receipts under this settlement and will make further
assessments in 2013. 
In addition, in July 2010 Arkadia received 212,018 Samsun shares in
respect of the remaining portion (66%) of the claim stated under (ii)
above. These shares have been classified as “available for sale”. As there
is no trading of these non-voting shares and as the outcome of the
rehabilitation plan remains difficult to forecast, the Company has
assigned U.S.$ nil value to them. The Company will make further
assessments in 2013.
Further to the hull damage of M/V Hellenic Sea during her passage
through the Amazon River in July 2010, arbitration proceedings have
commenced in London in August 2011 between Patmos Shipping Co.
Ltd., the vessel owning company of M/V Hellenic Sea (“Owners”) and
the charterers Setsea S.p.A. (“Charterers”). 
The Owners have already provided to the Charterers a bank letter of
guarantee for U.S.$3,100 (note 10) as security for Charterers’ alleged
claim against the Owners for alleged loss of profit during vessel’s off
hire. Owners’ legal consultants and appointed experts have advised the
Owners that, on the basis of available information and evidence to date,
the prospects of success of the Charterers’ claim against the Owners
are remote, hence no respective provision was taken by the Company. 
The Owners are also maintaining a claim against the Charterers for all
their damages caused by the incident (including the cost of salvage and
repairs which were covered by vessel’s hull insurers and the off-hire
cost), basis and prospects of which are currently being reviewed, hence
no provision for future cash receipts has been made by the Company in
this respect.
Operating lease commitments - vessel owning companies as lessor:
Some of the vessels owning companies have entered into time charter
arrangements for their respective vessels. These arrangements have
remaining terms between 1 to 2 months as of 31 December 2012 and
31 December 2011.
Future minimum gross charter revenues receivable upon time charter
arrangements as at 31 December 2012 and 2011, are as follows: 
It is noted that minimum gross charter revenues are calculated up to the
earliest charter expiration date which represents the first date on which
the charterer may redeliver the vessel to the shipowning company.
Additionally, the vessel’s off-hire and dry-docking days that could occur
but are not currently known are not taken into consideration.
Commitments for vessels under construction:
The scheduled commitments towards the shipbuilding yard amount to
U.S.$20,600 for the first hull   and U.S.$20,600 for the second hull. Such
payments fall due upon delivery of the vessels in 2013 and are expected
to be covered by the two loan facilities mentioned above (note 12).
50 18. Income taxes
As from 1 January 2009, the exempt company regime in Jersey no
longer applied, and the Company is now subject to a 0% tax in Jersey.
Under the laws of the respective jurisdictions of the consolidated
companies, such companies are not subject to tax on international shipping
income; however, the consolidated companies are subject to registration
and tonnage taxes, which have been included in vessel operating expenses
in the accompanying consolidated income statement. Pursuant to the
United States Internal Revenue Code of 1986, as amended (the ''Code''),
U.S. source income derived by a foreign corporation from the international
operation of ships generally is exempt from U.S. tax if the company
operating the ships meets both of the following requirements: (a) the
company is organised in a foreign country that grants an equivalent
exemption to corporations organised in the United States and (b) either (i)
more than 50% of the value of the company's shares is owned, directly or
indirectly, by individuals who are ''residents'' of the company's country of
organisation or of another foreign country that grants an ''equivalent
exemption'' to corporations organised in the United States (50% Ownership
Test) or (ii) the company's shares  are ''primarily and regularly traded on an
established securities market'' in its country of organisation, in another
country that grants an ''equivalent exemption'' to United States
corporations, or in the United States (Publicly-Traded Test). Under the
regulations, company's shares will be considered to be ''regularly traded''
on an established securities market if (i) one or more classes of its shares
representing more than 50% of its outstanding shares, by voting power
and value, are listed on the market and traded on the market, other than in
minimal quantities, on at least 60 days during the taxable year; and (ii) the
aggregate number of shares traded during the taxable year is at least 10%
of the average number of shares outstanding during the taxable year.
Notwithstanding the foregoing, the regulations provide, in pertinent part, that
each class of the company's shares will not be considered to be ''regularly
traded'' on an established securities market for any taxable year in which
50% or more of the vote and value of the outstanding shares of such class
are owned, actually or constructively under specified stock attribution rules,
on more than half the days during the taxable year by persons who each own
5% or more of the value of such class of the company's outstanding shares,
(''5 Percent Override Rule''). Management believes that the Company and its
subsidiaries currently comply with the above mentioned criteria; however, in
the future, the Company and its subsidiaries may not continue to satisfy
certain criteria in the U.S. tax laws and as such, may become subject to the
U.S. federal income tax on U.S. source shipping income.
19. Financial Risk management 
objectives and policies
The Company’s and its subsidiaries’ principal financial liabilities, other
than derivatives, are bank loans. The main purpose of these financial
liabilities is to finance the operations of its subsidiaries. The Company
and its subsidiaries have various other financial instruments such as
cash and cash equivalents, restricted cash, trade receivables and trade
payables, which arise directly from their operations. The Company also
enters into derivative transactions, primarily interest rate swaps, the
purpose of which is to manage the interest rate risk arising from the
Company’s and its subsidiaries’ sources of finance. The main risks
arising from the Company’s and its subsidiaries’ financial instruments
are interest rate risk and credit risk.
Interest rate risk
The Company’s exposure to the risk of changes in market interest rates
relates primarily to the Company’s and its subsidiaries’ long-term debt
obligations at floating interest rates. The Company’s policy is to manage
its interest cost using a mix of fixed and variable rate debts. The
Company’s policy to date has been to keep between 40% and 70% of
its borrowings at fixed rates of interest. To manage this, the Company
enters into interest rate swaps, in which the Company agrees to
exchange variable to fixed interest rate. These swaps are designated to
hedge underlying debt obligations. 
At 31 December 2012, 65.8% of the Company’s and its subsidiaries’
long-term borrowings are at fixed rate of interest (2011: 71.1%). Due to
the prevailing uncertainty with regard to the global macro-economics
and its effect on interest rates, the Company will re-evaluate its policy
upon termination of the existing swap agreements in 2013.
The table below demonstrates the sensitivity of the profit or loss
(through the impact on floating rate borrowings) and of equity (through
the valuation of the interest rate swap), to a reasonably possible change
in interest rates (libor), with all other variables held constant:
51 Foreign currency risk 
The majority of the Company’s and its subsidiaries’ transactions are
denominated in U.S. dollars. The Company has transactional currency
exposure in GBP currency. Such exposure arises from cash outflows
representing the payment of interim and annual dividends. The Company
mitigates its foreign exchange risk related to dividends by converting
the U.S. dollar amount in the respective amount of GBP at the date of
dividends declaration by the Board of Directors rather than the actual
date of payment.
Furthermore, part of the operating expenses of the vessels and the
administrative costs are denominated in Euro currency. The vessel
owning companies and the management company mitigate their
exposure to Euro currency by converting U.S. dollars amounts into Euro
within the year at rates that are deemed as reasonable, in order to cover
part of their operating and administrative foreseeable expenses payable
in Euro. For the years ended 31 December 2012 and 2011, there is no
significant balance or transaction in foreign currency.
Credit risk
The Company’s and its subsidiaries’ maximum exposure to credit risk in
the event the counterparties fail to perform their obligations as of 31
December 2012, in relation to each class of recognised financial assets,
other than derivatives and investments, is the carrying amount of those
assets as indicated in the consolidated statement of financial position.
Financial instruments, which potentially subject the Company and its
subsidiaries to significant concentrations of credit risk, consist principally
of cash and cash equivalents and trade accounts receivable. The
Company and its subsidiaries place their cash and cash equivalents,
consisting mostly of deposits, with reputable financial institutions.
Credit risk with respect to trade accounts receivable is generally monitored
on an on-going basis with the result that the exposure to impairment on
trade receivables is insignificant. Moreover, the vessels are normally
chartered under time charter agreements where, as per the industry
practice, the charterer pays for the transportation service in advance,
supporting the management of trade receivables. The vessel owning
companies intend to operate with third parties, with which they have either
co-operated in the past to their full satisfaction, or which have been
introduced through established independent third party broking channels.
Concentration of credit risk 
The following table provides information with respect to charterers who
individually, accounted for more than 10% of the Company’s and its
subsidiaries’ revenue for the year ended 31 December:
Fair Values
Derivatives are recorded at fair value, while all other financial assets and
financial liabilities are recorded at amortised cost which approximates
fair value at 31 December 2012.
Fair value hierarchy
The Company and its subsidiaries use the following hierarchy for
determining and disclosing the fair value of financial instruments by
valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets
or liabilities.
52 Level 2: other techniques for which all inputs which have a significant
effect on the recorded fair value are observable, either directly or indirectly.
Level 3: techniques which use inputs which have a significant effect on
the recorded fair value that are not based on observable market data.
As at 31 December 2012, the Company and its subsidiaries held the
following financial instruments (note 13) measured at fair value in the
consolidated statement of financial position:
Liquidity risk
The Company aims to mitigate liquidity risk by managing cash generation
by operations, applying cash collection targets throughout its subsidiaries.
The vessels are normally chartered under time charter agreements where,
as per the industry practice, the charterer pays for the transportation service
in advance, supporting the management of cash generation. Investment is
carefully controlled, with authorisation limits operating up to board level and
cash payback periods applied as part of the investment appraisal process. 
In its funding strategy, the Company’s objective is to maintain a balance
between continuity of funding and flexibility through the use of bank
loans. The policy in new investments for second-hand vessels is that
not more than 65% of the value of each investment will be funded
through borrowings. 
Excess cash used in managing liquidity is mainly invested in financial
instruments exposed to insignificant risk of changes in market value,
being placed on interest-bearing deposit with maturities fixed at no more
than 3 months. 
The table below summarises the maturity profile of the financial liabilities
at 31 December 2012 and 2011, based on contractual undiscounted
payments (including interest to be paid, which is calculated using the
last applicable rate for each loan, as of 31 December 2012 and 2011):
53 Capital Management
The primary objective of the Company’s capital management is to ensure
that it maintains a strong financial position and healthy capital ratios in
order to support its business and maximise shareholder value.
The Company manages its capital structure and makes adjustments to it,
in light of changes in economic conditions. To maintain or adjust the capital
structure, the Company may adjust or suspend the dividend payment to
shareholders, return capital to shareholders, or issue new shares. 
In this context and in order to more accurately reflect the gearing ratio
and monitoring of capital management, the Company defines leverage
as the ratio of the net debt (net of deferred financing fees) to book
capitalisation. Book capitalisation is defined as total equity plus net debt. 
The Company’s policy is to keep its gearing ratio below 80% on average.
Total equity includes issued share capital, share premium, capital
contributions, retained earnings and cash flow hedging reserves.
54 55
Directors
Graham Roberts, 
Non-Executive Chairman
Fotini Karamanli, 
Chief Executive Officer
Elpida Kyriakopoulou, 
Chief Financial Officer
Charlotte Stratos, 
Non-Executive Director
Dimos Kapouniaridis, 
Non-Executive Director
Secretary
TMF Channel Islands Limited 
28-30 The Parade, St Helier 
Jersey, JE1 1EQ
Auditors
Ernst & Young LLP
Liberation House 
Castle Street, St. Helier  
Jersey JE1 1EY
Bankers
National Bank of Greece S.A.
Piraeus Bank S.A.
EFG Eurobank S.A.
Solicitors 
Norton Rose
1 Posidonos Avenue & 3 Moraitini
175 64 P . Faliro
Greece
Norton Rose LLP
3 More London Riverside 
London SE1 2AQ
United Kingdom
Holman Fenwick Willan
International
83 Akti Miaouli
185 38 Piraeus
Greece
Rea Mitropoulou
53-55 Akti Miaouli
185 36 Pireaus
Greece
Registrars
Capita Registrars (Jersey) Limited
PO Box 532
St. Helier
Jersey JE4 5UW
Registered Office
28-30 The Parade, St Helier 
Jersey, JE1 1EQ
CORPORATE INFORMATION