3
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 owns and trades 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 six vessels, comprising two
Kamsarmax, one Panamax, one Handymax and two Supramax
with an aggregate carrying capacity of 384,864 dwt and average
fleet age of 10.1 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 10
Fleet Management 12
Directors’ Report for 2013 14
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 Other 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 59 5
FINANCIAL AND OPERATIONAL HIGHLIGHTS 
2013 HIGHLIGHTS
FINANCIAL
• Revenue U.S.$10.9 million (2012: U.S.$13.2 million)
• EBITDA
1
positive U.S.$0.3 million (2012: U.S.$0.2 million EBITDA negative)
• Operating loss U.S.$9.2 million (2012: U.S.$15.9 million or U.S.$9.4 million operating loss 
before non-cash items)
• Net loss U.S.$14.2 million (2012: U.S.$20.7 million net loss or U.S.$14.2 million net loss before 
non-cash items)
• Gearing ratio
2
at 53.4% as of 31 December 2013 (31.9% as of 31 December 2012)
• Total cash including restricted cash U.S.$27.7 million as of 31 December 2013 
(U.S.$47.7 million as of 31 December 2012)
• Gross debt U.S.$97.3 million as of 31 December 2013 from U.S.$82.3 million as of 31 December 2012
resulting in a net debt position of U.S.$69.6 million from U.S.$34.6 million on 31 December 2012
OPERATIONAL
• Delivery of the two newbuilding Kamsarmax vessels M/V Odysseas and M/V Konstantinos II in 
August and September 2013 respectively 
• Operation of a fleet of 3.7 vessels on average for the full year 2013 compared to 4.0 vessels in 2012
• Time Charter Equivalent  (“TCE”) rate of U.S.$7,614 (2012: U.S.$7,414)
• Daily Operating expenses reduction to U.S.$5,088 from U.S.$5,234 (a decrease of 2.8%)
• Agreement reached in August 2013 for the acquisition of M/V Pistis, a geared 52,388 dwt 
Supramax vessel built at Tsuneishi Shipbuilding Corporation, Japan in 2004, at the price of
U.S.$16.16 million in cash 
SUBSEQUENT
Delivery of the 2004-built Supramax M/V Pistis on 7 January 2014
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)  CHAIRMAN’S STATEMENT
The past year, 2013, has been a tale of two halves in the dry bulk shipping
markets. The first half saw a further 11% average reduction in the BDI
from the first half of 2012, which had been the weakest year for the BDI
in the last 26 years. In the second half of 2013 the market improved
significantly and the BDI hit a peak of 2,337 in December. This recovery
was led by the Capesize sector, but daily rates for Handymaxes,
Supramaxes and Panamaxes all showed substantial improvements.
Encouragingly the initial trade data for 2013 indicates that world
seaborne dry bulk trade rose by over 5% and this was driven by sizable
growth in iron ore, coal and grain cargoes. This growth figure surpassed
even the yearly increases experienced during the strong markets of 2003
to 2008 and further endorses our view that the market will enjoy
continued growth.
Forward orders for new dry bulk vessels indicate a marked reduction
from 2016 and this may have encouraged the market to take a more
favourable view of the supply/demand balance.
As a result of these improved market conditions we have, during the past
six months, increased our fleet from three to six vessels and more than
doubled our size in terms of dwt capacity. In the second half of 2013 we
took delivery of two new Kamsarmax vessels, which we contracted in
2010, and acquired a modern Supramax vessel that was delivered in
January 2014. These actions will expand our revenue generation capacity
and improve the average age and cost efficiency of our fleet. Capitalizing
on the strong and long standing relationships with our lenders, we have
utilized the sale proceeds from the older vessels we sold to acquire
younger tonnage at very attractive values. This will enable us to maintain
our strong balance sheet and enhance shareholder value.
As we enter 2014 the dry bulk market continues to remain volatile and
therefore we have chosen to continue an opportunistic chartering
strategy for our fleet, utilizing short term time charters in the spot market.
By doing this, we are able to take advantage of any future improvements
in rates. In addition, we remain fully committed towards our stringent
focus on cost and cash controls.
Looking ahead, we expect to see a gradual improvement in the
underlying dry bulk market fundamentals in 2014. Analysts forecast
global dry bulk trade to continue to grow at a rate of approximately 5%
in 2014 which put together with the continuing reduction of the rate of
expansion in the dry bulk fleet, will lead in our opinion to a more robust
freight rate environment in the years ahead.
With a modern, well run fleet, experienced management, good 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
26 February 2014
6 CHIEF EXECUTIVE OFFICER’S STATEMENT
7
2013 was a transformative year for Hellenic Carriers. Within a year, the
fleet grew from three to six vessels and its profile improved in terms of
average age and overall carrying capacity. Importantly, the new vessels
were acquired at levels which are well below the 10-year average prices
for similar assets, and have come at a time when the signs of recovery
are apparent. We are confident that these acquisitions are accretive, and
will yield significant profit generation capacity going forward. 
Furthermore, as we avoided long term employment commitments at
previously prevailing low rates, the vessels can fully capitalize upon the
gradually improving freight market. 
After almost three years of a shipping crisis which led rates close to
historical lows, we believe that the supply/demand fundamentals are
now turning positive. The crisis was not caused by lackluster demand,
on the contrary demand continued to steadily grow, but rather by the
oversupply of ships. The unprecedented numbers of new vessels ordered
during the peak of the last shipping cycle have now been significantly
absorbed, while many older vessels have been scrapped. Newbuilding
orders are continuing to grow, but not, as things stand today, at levels
that would threaten industry fundamentals. Dry bulk commodity
demand, both from the developing world, as well as from mature
economies continues to strengthen. Considering all these factors
together, we believe that 2014 will be the turning point towards a
recovery cycle.
It is not surprising, therefore, that investor interest for shipping has
resumed. After all, shipping offers a solid investment proposal backed
by hard assets at prices which are attractive, as well as the growing trade
amongst the mature and the developing economies. However, shipping
remains a highly cyclical market and timing plays a crucial role. The
recent downturn is an example of the importance of making the right
employment and investment decisions at the right time.
Hellenic’s track record proves the point: when the market was at or close
to its peak, long term charter contracts were agreed which helped build
significant cash reserves. Then as the market deteriorated, older assets
were disposed of and through these sales funding for the new
acquisitions was secured. As a result, the company managed to
overcome challenging conditions and to emerge stronger. 
Today with a larger, younger and uncommitted fleet Hellenic, a pure dry
bulk shipping company, is well positioned to benefit from the positive
trend and shall consider further timely and accretive acquisitions, which
will continue to enhance shareholder value.
Fotini Karamanli
Chief Executive Officer
26 February 2014 HELLENIC CARRIERS FLEET 
From 31 December 2012 to the date of this report, Hellenic acquired three vessels, doubling the number of vessels currently trading in worldwide
maritime routes and increasing the fleet carrying capacity by 127.6% to 384,864 dwt from 169,116 dwt on 31 December 2012. The average age of
the fleet has been reduced by 34.8% to 10.1 years from 15.5 years on 31 December 2012. 
As of the date of this report, the Company owns and trades, through its wholly owned subsidiaries, a fleet of six dry bulk carriers with a weighted
average age of 10.1 years and a total carrying capacity of 384,864 dwt. The fleet includes two Kamsarmax vessels one Panamax, two Supramax,
and one Handymax 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.
Fleet details as of the date of this report:
8
Fleet Developments
In H2 2013, two sister Kamsarmax vessels were added to the operating
fleet increasing the carrying capacity to 332,476 dwt. The two
Kamsarmaxes were ordered at Zhejiang Ouhua Shipbuilding Co. Ltd.,
China in June 2010 at a contract price of U.S.$34.2 million each for a
scheduled delivery in H1 2013. In H1 2013 the contract price of the
vessels was renegotiated and reduced to U.S.$26.3 million each and their
delivery dates extended. Consequently, M/V Odysseas, a 81,662 dwt
Kamsarmax vessel was delivered on 12 August 2013 and M/V
Konstantinos II, a 81,698 dwt Kamsarmax vessel, was delivered on 25
September 2013.
In August 2013, one of the Company's subsidiaries agreed to purchase
from an unaffiliated third party the M/V Ocean Alliance, a geared 52,388
dwt Supramax vessel built at Tsuneishi Shipbuilding Corporation, Japan
in 2004, at the price of U.S.$16.16 million in cash. The vessel was
delivered on 7 January 2014 and was renamed to Pistis. Fleet Employment
From the beginning of 2012 until the end of H1 2013 the dry bulk freight
market dropped to its lowest levels of the last 27 years, since inception of
the Baltic Dry Index (BDI). During this period the Company decided to avoid
committing the vessels at low hire rates and focused on a combination of
employment in the spot market and short term period fixtures.
In H2 2013 and especially during Q4 2013 the first signs of a market
recovery became apparent. The BDI increased by 86% from an average
of 842 points in H1 to 1,564 points in H2 2013. The sharpest rise was
witnessed in the cape size sector; however the sub cape size segments
also benefited from the improvement in the freight market. The
chartering strategy during Q4 2013 remained the same; employment in
the spot market or short period fixtures. 
M/V Konstantinos II is currently employed under a time charter
agreement for a period of about 6 to 8 months at a daily floating hire rate
linked to the average of the four routes of the Baltic Exchange Panamax
Index (BPI) plus a 12% premium and with a guaranteed minimum floor
rate of U.S.$9,000 gross. The charter commenced on 19 November 2013,
with the earliest expiration date on 4 May 2014 and the latest on 3
August 2014. The average gross daily rate from 19 November 2013 until
the date of this announcement is U.S.$14,328.
M/V Odysseas is currently performing a time charter trip with an
estimated duration of approximately 90 days at a gross daily rate of
U.S.$13,900. This trip commenced on 11 December 2013 and is
expected to expire on 10 March 2014.
M/V Hellenic Wind is currently performing a time charter trip with an
estimated duration of 65 days at a gross daily rate of U.S.$11,100. The
trip commenced on 19 December and is expected to expire at the earliest
on 28 February 2014.
M/V Konstantinos D is currently performing a time charter trip with an
estimated duration of 25 days at a gross daily rate of U.S.$14,000. The
trip commenced on 2 February and is expected to expire at the earliest
on 28 February 2014.
M/V Hellenic Horizon is currently performing a time charter trip with an
estimated duration of 25 days at a gross daily rate of U.S.$5,000. This
charter commenced on 24 February  2014 and is expected to expire on
about 21 March 2014.
M/V Pistis is currently under repairs.
The fleet deployment profile as of the date of this announcement is
outlined below:
9 10
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:
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
42 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 18 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 and is a
member of the DNV (Norwegian Classification
Society) Council. 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).
Dimos Kapouniaridis, 
Non-executive
Director
Mr. Kapouniaridis is Assistant General Manager
and Head of Investment Banking & Principal
Capital Strategies of Eurobank.
Mr. Kapouniaridis obtained a BA (major in
Economics and minor in Mathematics) from
Hamilton College in Clinton, NY , in 1996. He has
approximately seventeen years of Investment
Banking experience in Greece and the USA.
Prior to joining the organization of Eurobank 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.
11 FLEET MANAGEMENT  
For the period commencing September 2007 until August 2013, the day-
to-day commercial and financial management of the fleet was the
responsibility of the wholly-owned subsidiary, Hellenic Shipmanagement
Corp. (“HSC”), which had shipmanagement agreements in place with
each ship owning company. Under those shipmanagement agreements,
HSC provided 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.
The day-to-day technical and operational management of the fleet was
sub-contracted by HSC to Mantinia Shipping Co. S.A. (“Mantinia”), a
company ultimately controlled by the controlling shareholders. Under the
Mantinia Management Agreements, Mantinia provided HSC 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 the insurance cover 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;
In August 2013, the vessel owning companies of the operating vessels
M/V Hellenic Wind, M/V Hellenic Horizon and M/V Konstantinos D
terminated (at no cost/ without compensation) the management
agreements entered into with HSC and appointed Hellenic Carriers
Corporation S.A., (“HC Corp”), a related party company ultimately
controlled by the controlling shareholders of Hellenic Carriers Limited,
as Manager of the aforementioned vessels. Accordingly the sub-
management agreements with Mantinia were also terminated on the
same basis. The shipowning companies of vessels acquired thereafter
entered into management agreements with HC Corp as well. 
Under the management agreements, HC Corp provides the relevant
wholly-owned subsidiaries with the following services:
• Commercial management services including the negotiation of charter 
parties;
• Supervising the sale and purchase of vessels in accordance with the 
ship owning Companies’ instructions;
• Implementation, monitoring and audit of the safety management 
system in connection with the ISM certification;
• Arranging the insurance cover for all 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;
• Recruiting and employing seamen and arranging for the execution 
of the contracts of employment; 
• Attending to the maintenance, repairs, modifications and classification
requirements of the vessels; 
• 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;
• Accounting services;
In accordance with the management agreement, HC Corp charges
management fees in the amount of U.S.$1,000 per day per vessel as well
as 1% brokerage commission on revenue earned and 1% on each Sale
& Purchase transaction concluded.
12  DIRECTORS’ REPORT FOR 2013  
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, 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 two Kamsarmax, one Panamax vessel, one Supramax 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 2013.
The effect of several years of unprecedented fleet expansion led to freight
earnings close to historical lows in the first semester. However, from the
second half of the year and, especially during the fourth quarter, the first signs
of recovery became apparent. This coincided with a period of increased
demand for raw materials prior to year end and, most importantly, with
contraction in the supply of new vessels. As a result the BDI rose by 86% from
H1 to H2 2013 and the year ended very differently from its opening, amidst
optimism for the future.  At the same time the renewed interest for vessel
acquisitions drove the values of second hand ships and new buildings higher.
As we enter into 2014, seasonal volatility, which was anticipated for the
first quarter of the year, has halted the upward trend. However, we consider
that the fundamentals are positive, since vessel supply over the next few
years remains subdued, due to the fact that few orders were placed during
the market downturn. At the same time, demand is projected to continue
to grow supported by the steel industry, the power generation and the food
consumption both in the developing and the mature economies. The
expectation of a rising market is reflected both in the forward freight
agreements and in the rates achieved by vessels chartered for longer
periods, which are now higher compared to the current spot market rates.
In light of the above, we consider that the medium term prospects of the
market are positive. 2014 will mark the beginning of a recovery cycle, while
the prospects for 2015 are even stronger, given the de-escalation of supply
over the next two years. The possibility of increasing new building orders
against an improving freight market over the next few years exists, however
we consider that the restricted access to ship financing will effectively limit
the danger of oversupply.  Overall, on the basis of a more conservative fleet
growth combined with the continued expansion of world seaborne trade
the supply and demand balance will come closer to equilibrium, and we
consider that this will in turn translate into healthy returns for ship operators. 2013 Operational & Financial Review 
Going concern
The Directors having reviewed the cash flow projections of the Company
and its subsidiaries consider that following the delivery of the two new
building Kamsarmaxes during H2 2013 and the 2004 built Supramax in
early January 2014 the fleet profile has improved considerably and these
vessels are expected to enhance the earnings generating capacity of the
Company. 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 2013 Results
Operating and Financial highlights
The following tables summarise the operating and financial results for
full year 2013.
15 During 2013 the Company, through its subsidiaries, operated 3.7 vessels
which earned on average U.S.$7,614 per day compared to 4.0 vessels
and average earnings of U.S.$7,414 per day in 2012, an increase of 2.7%.
For the year ended 31 December 2013, Hellenic reported total revenues
of U.S.$10.9 million compared to U.S.$13.2 million for the same period of
2012, a decrease of U.S.$2.3 million. The decrease in revenues is attributed
to the reduction in the number of vessels operated during the period, in
conjunction with the prolonged weakness of the dry bulk freight rates. The
fleet utilisation during the period was reported at 95.6% compared to
91.6% in the same period of 2012 as result of the decrease in vessels’
ballast days for repositioning purposes.
Voyage expenses decreased by 64.5% to U.S.$1.1 million compared to
U.S.$3.1 million for the same period of 2012. The decrease in voyage
expenses is mainly attributable to the increased fleet utilization during
the year 2013 which translates to reduced days in ballast and therefore
reduced fuel oil expenses. 
16 Vessel operating expenses dropped by U.S.$0.9 million to a total of
U.S.$6.8 million for the year ended 31 December 2013. The decrease is
mainly due to cost control and fleet renewal after delivery of the new
building Kamsarmax vessels in Q3 and Q4 2013. The daily operating
expenses for the year ended 31 December 2013 were reported at
U.S.$5,088 from U.S.$5,234 for the same period of 2012, a decrease of
2.8% demonstrating the effect of an efficiently run younger fleet. 
The Company’s general and administrative expenses for the year ended
31 December 2013 amounted to U.S.$1.6 million compared to U.S.$1.5
million reported for the same period of 2012. 
Earnings before Tax, Interest, Depreciation and Amortisation (EBITDA)
was reported positive at U.S.$0.3 million for the year ended 31 December
2013 compared to negative U.S.$0.2 million for the same period in 2012.
Operating loss amounted to U.S.$9.2 million for the year ended 31
December 2013 compared to U.S.$15.9 million for the same period of
2012. For the year ended 31 December 2012, the 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.
The total finance expense comprising of i) interest payable on bank debt,
ii) amortization of deferred loan fees and iii) other finance costs, was
reported at U.S.$5.4 million for the year ended 31 December 2013, in line
with the amount reported for the same period of 2012. Interest payable
on bank debt decreased considerably by U.S.$0.9 million due to the
termination of the swap agreements in August 2013, but an almost equal
increase was realized in amortization of deferred loan fees due to the fact
that borrowing costs and commitment fees paid under a loan commitment
were written off upon its full cancellation in September 2013.
The weighted average interest rate for the year ended 31 December 2013
was 4.90% decreasing considerably from 5.95% reported in 2012.
Net loss for the year ended 31 December 2013 amounted to U.S.$14.2
million or U.S.$0.31 basic loss per share calculated on 45,616,851
weighted average number of shares. Net loss for the year ended 31
December 2012 amounted U.S.$20.7 million or U.S.$0.45 basic loss per
share calculated on 45,616,851 weighted average number of shares.  18
Financial Position and Cash Flow highlights Debt / Financing Activities & Capitalisation 
As of 31 December 2013, total Bank Debt was reported at U.S.$97.3
million compared to U.S.$82.3 million at 31 December 2012.
With respect to a loan facility issued in November 2007 and maturing 8
May 2015 for the financing of the vessels M/V Hellenic Sky (sold in 2012)
and Hellenic Horizon, following the sale of M/V Hellenic Sky the sale
proceeds in the amount of U.S.$10.3 million were transferred in
September 2013 as bank financing towards the acquisition cost of the
Kamsarmax M/V Konstantinos II. Additional new debt in the amount of
U.S.$2.2 million was drawn upon the vessel’s delivery. The loan tenor
was extended, the new maturity date being 8 May 2023 and the loan
repayment schedule was amended accordingly. The loan outstanding
balance as of 31 December 2013 amounted to U.S.$31.8 million.
With respect to a loan facility issued in March 2008 and maturing 9 May
2016 for the financing of the vessels M/V Hellenic Sea (sold in 2012),
Hellenic Breeze (sold in 2010), Konstantinos D and Hellenic Wind,
following the sale of the vessel M/V Hellenic Sea the sale proceeds in
the amount of U.S.$5.4 million together with additional debt of U.S.$2.5
million were transferred as bank financing towards the acquisition of
M/V Pistis, which was delivered on 7 January 2014. The maturity of the
loan has now been extended to 7 May 2020 and the loan repayment
schedule is amended accordingly. The loan outstanding balance as of 31
December 2013 amounted to U.S.$49.5 million.
An earnings recapture clause has been agreed under the above loan
facilities, based on which part of any excess earnings generated by the
vessels after payment of their debt service (principal and interest) will
be paid to the lending banks. The payment due under this clause for the
fiscal year 2013 is U.S.$ nil.
Under a loan facility agreement dated 30 March 2011, Ithaca Maritime
Ltd, the owner of the Kamsarmax vessel under construction M/V
Odysseas, secured financing of up to 65% of the vessel’s market value
to be drawn upon vessel’s delivery. Further to the reduction in the
vessel’s contract price (at U.S.$26.3 million from U.S.$34.2 million), the
amount of U.S.$17.1 million was drawn down in August 2013. The loan
outstanding balance as of 31 December 2013 amounted to U.S.$17.1
million with maturing date on 9 August 2019. 
The gross debt repayments (without taking into account any payments
under the earning recapture clauses as described above) amount to
U.S.$3.4 million per year for the years 2014 and 2015. 
As of 31 December 2013, Hellenic and its subsidiaries are in compliance
with their debt covenants.
Cash and cash equivalents including restricted cash were reported at
U.S.$27.7 million compared to U.S.$47.7 million at 31 December 2012.
Restricted cash reported at 31 December 2013 amounted to U.S.$9.5
million compared to U.S.$19.2 million at 31 December 2012. The
decrease represents mainly the utilization of the proceeds from the sale
of M/V Hellenic Sky (U.S.$10.3 million) which were pledged with the
respective lender until September 2013 and were then transferred as
bank debt towards the acquisition of M/V Konstantinos II. 
As of 31 December 2013 net debt amounted to U.S.$69.6 million
compared to U.S.$34.6 million as of 31 December 2012. This increase
in net debt is attributable to additional debt drawn down upon delivery
of the two Kamsarmax vessels in the amount of U.S.$19.3 million and
utilization of the pledged amount of U.S.$10.3 million (included in
restricted cash as at 31 December 2012) for the same purpose.
Consequently, the gearing ratio being defined as net debt (debt less cash
and cash equivalents) to total capitalisation amounted to 53.4% on 31
December 2013 compared to 31.9% on 31 December 2012.
In relation to cash flows used in investing activities, the amount of
U.S.$29.7 million consists mainly of the following items:
• The amount of U.S.$26.8 million paid during the year ended 31 
December 2013 in relation to the construction of the two new
building Kamsarmax vessels delivered in H2 2013. This amount
included the last instalment payable to the yard (U.S.$12.7 million
per vessel) and other related costs.
• The amount of U.S.$1.7 million represents i) dry-docking cost for the 
M/V Hellenic Wind and M/V Konstantinos D which performed their
intermediate surveys at a total cost of U.S.$1.3 and ii) the estimated
dry-docking component of the new building vessels upon their
delivery in H2 2013 amounting to U.S.$0.2 million per vessel.
(Deferred dry-docking cost for the year ended 31 December 2012
amounted to U.S.$1.2 million). 
• The amount of U.S.$1.6 million being 10% advance payment made 
in October 2013 for the acquisition of the 2004 built Supramax
vessel M/V Pistis under the terms of the MOA dated August 2013. 
19 Subsequent Events
The vessel M/V Pistis, a geared 52,388 dwt Supramax vessel built at
Tsuneishi Shipbuilding Corporation, Japan in 2004 was delivered on 7
January 2014 under the terms of the acquisition agreement dated August
2013. The acquisition price of U.S.$16.16 million was funded partly by cash
reserves of U.S.$8.3 million and partly by the proceeds from the sale of
M/V Hellenic Sea in the amount of U.S.$5.4 million coupled with new debt
in the amount of U.S.$2.5 million. The vessel is currently under repairs.
Further to Samsun’s Rehabilitation Plan and the settlement agreement
dated 19 January 2010 between Arkadia and Samsun, Arkadia
Maritime Corp, the owner of M/V Hellenic Horizon assigned the
outstanding net admitted cash rehabilitation claim against Samsum
Logix Corp. to unaffiliated third party interests and received a
consideration of U.S.$1.1 million.
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 2013 be suspended. 
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 2013 (held directly or indirectly by the Director) were:
Fotini Karamanli is deemed to be interested in the Ordinary Shares held
by Faith Holdings Inc., a company owned 100% by her. In July 2013 Fotini
Karamanli disposed her 50% shareholding in Bedat Holdings Inc and
therefore is no longer interested in the 10,643,960 shares of Bedat
Holdings Inc.
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 judgment 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 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
2013:
22
Meetings
The number of the regular meetings by the Board, the Audit,
Remuneration and Nomination Committees and individual attendance
by members within 2013 is shown below:
Fotini Karamanli
Chief Executive Officer
Graham Roberts
Chairman 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 26 February 2014.
Fotini Karamanli Graham Roberts
Chief Executive Officer Chairman
STATEMENT OF DIRECTORS’ RESPONSIBILITIES   24
We have audited the financial statements of Hellenic Carriers Limited for
the year ended 31 December 2013 which comprise the Consolidated
Income Statement, the Consolidated Statement of Other 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
Annual Report to identify material inconsistencies with the audited
financial statements and to identify any information that is apparently
materially incorrect based on, or materially inconsistent with, the
knowledge acquired by us in the course of performing the audit. 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 2013 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.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF HELLENIC CARRIERS LIMITED 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: February 26th 2014
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.
25 CONSOLIDATED INCOME STATEMENT
26
Revenue
Expenses and other income
Voyage expenses
Voyage expenses - related parties
Vessel operating expenses
Management fees - related parties
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 loss, net
Loss for the year 
Loss per share (U.S.$):
Basic and diluted LPS for the year
Weighted average number of shares 
   
3
3,10
3
10
7
7
7
7
4
16
5
8
6
U.S.$’000
10,923
(1,087)
(60)
(6,793)
(1,153)
(7,516)
(1,917)
-
-
(1,558)
-
(9,161)
(5,413)
403
(26)
(5,036)
(14,197)
(0.31)
45,616,851
U.S.$’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
31 December
Notes 2013 2012
For the year ended 31 December 2013
The accompanying notes 1 to 19 are an integral part of these consolidated financial statements 27
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
Loss for the year
Other comprehensive income
Other comprehensive income to be reclassified to profit
and loss in subsequent periods: 
Reclassification during the year to profit or loss 
Net gain on cash flow hedges
Net other comprehensive income reclassified to
profit and loss
Total comprehensive loss for the year
12
12
U.S.$’000
(14,197)
1,158
-
1,158
(13,039)
U.S.$’000
(20,731)
-
1,801
1,801
(18,930)
31 December
Notes 2013 2012
For the year ended 31 December 2013
The accompanying notes 1 to 19 are an integral part of these consolidated financial statements 28
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
ASSETS
Non-current assets
Vessels, net
Advances for vessel acquisition
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
(Accumulated deficit)/Retained earnings
Total equity
Non-current liabilities
Long-term debt
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 
7
7
7
11
16
10
9
8
13
13
11
11
12
14
U.S.$’000
124,701
1,616
-
-
1
126,318
458
1,701
238
-
3,845
852
9,525
18,179
34,798
161,116
46
54,355
10,826
-
(4,350)
60,877
94,081
94,081
1,320
3,245
-
1,325
268
6,158
100,239
161,116
U.S.$’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
31 December
Notes 2013 2012
As at 31 December 2013
The accompanying notes 1 to 19 are an integral part of these consolidated financial statements
The financial statements on pages 26 to 58 were approved by the Board of Directors on 26 February 2014 and were signed on its behalf by: 
Fotini Karamanli
Chief Executive Officer
Elpida Kyriakopoulou
Chief Financial Officer 29
As at 1 January 2012
Loss for the year
Other comprehensive income
Total comprehensive loss
As at  31 December 2012
Loss for the year 
Other comprehensive income
Total comprehensive loss
As at 31 December 2013
Issued
share capital
U.S.$'000
(Note 13)
46
-
-
-
46
-
-
-
46
Share
premium
U.S.$'000
(Note 13)
54,355
-
-
-
54,355
-
-
-
54,355
Capital
Contributions
U.S.$'000
10,826
-
-
-
10,826
-
-
-
10,826
Cash flow
hedging
reserves
U.S.$'000
(2,959)
-
1,801
1,801
(1,158)
-
1,158
1,158
-
(Accumulated
deficit)
Retained
earnings
U.S.$'000
30,578
(20,731)
-
(20,731)
9,847
(14,197)
-
(14,197)
(4,350)
Total equity
U.S.$'000
92,846
(20,731)
1,801
(18,930)
73,916
(14,197)
1,158
(13,039)
60,877
Number of shares
45,616,851
-
-
-
45,616,851
-
-
-
45,616,851
Par value
U.S.$
0.001
-
-
-
0.001
-
-
-
0.001
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2013
The accompanying notes 1 to 19 are an integral part of these consolidated financial statements 30
CONSOLIDATED STATEMENT OF CASH FLOWS
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
(Increase) / Decrease in inventories
(Increase) / Decrease in trade receivables, claims receivable, prepaid expenses
and other assets
Increase in due from related parties
Increase / (Decrease) in trade payables, accrued liabilities and other payables 
Increase/ (Decrease) in deferred revenue
Net cash flows used in operating activities 
Investing activities
Acquisition/ improvement of vessels
Advance payments for vessels under construction
Advance payments for vessel acquisition
Dry-docking costs
Proceeds from sale of vessels
Office furniture and equipment
Interest received
Net cash flows (used in)/ provided by investing activities 
Financing activities
Proceeds from issue of long-term debt
Repayment of long-term debt
Restricted cash
Finance expenses paid
Net cash flows provided by/ (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
7
7
7
7
5
8
7
7
7
7
7
11
11
9
11
8
8
U.S.$’000
(14,197)
7,516
1,917
-
-
5,413
(403)
246
(194)
(1,367)
(134)
564
268
(617)
(103)
(26,798)
(1,616)
(1,673)
-
-
463
(29,727)
19,300
(3,885)
9,707
(5,067)
20,055
(10,289)
28,468
18,179
U.S.$’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
31 December
Notes 2013 2012
For the year ended 31 December 2013
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 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.
Hellenic Shipmanagement Corp. (“HSC”) served as Manager of the fleet
for the period from September 2007 until August 2013 (note 10). Since
August 2013, the fleet has been managed by Hellenic Carriers
Corporation S.A. (“HC Corp”), a related party company ultimately
controlled by the controlling shareholders of HCL. HC Corp was
incorporated under the laws of Liberia on 22 April 2003 and has
established a branch in Greece at 51 Akti Miaouli, Piraeus, Greece.
The annual consolidated financial statements for the year ended 31
December 2013 include the financial statements of HCL and the financial
statements of its wholly owned subsidiaries listed below.
32
The annual consolidated financial statements were authorised for issue
in accordance with a resolution of the Board of Directors on 26 February
2014 and are recommended to be approved at the next Annual General
Meeting of the shareholders. 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 2013 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) Fair value measurement: 
The Company and its subsidiaries measure financial instruments,
such as, derivatives, and available for sale investments at fair value
at each reporting date. Fair value is the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell
the asset or transfer the liability takes place either: 
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous 
market for the asset or liability.
The principal or the most advantageous market must be accessible
to the Company and its subsidiaries.
The fair value of an asset or a liability is measured using the
assumptions that market participants would use when pricing the
asset or liability, assuming that market participants act in their
economic best interest.
The Company and its subsidiaries use valuation techniques that are
appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant
observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed
in the financial statements are categorised within the fair value
hierarchy, described as follows, based on the lowest level input that
is significant to the fair value measurement as a whole: 
Level 1 - Quoted (unadjusted) market prices in active markets for
identical assets or liabilities,
Level 2 - Valuation techniques for which the lowest level input that is
significant to the fair value measurement is directly or indirectly
observable,
Level 3 - Valuation techniques for which the lowest level input that is
significant to the fair value measurement is unobservable.
For assets and liabilities that are recognised in the financial
statements on a recurring basis, the Company and its subsidiaries
determine whether transfers have occurred between Levels in the
hierarchy by re-assessing categorisation (based on the lowest level
input that is significant to the fair value measurement as a whole) at
the end of each reporting period.
External valuers are involved for valuation of significant assets, such
as financial assets, and significant liabilities, such as contingent
obligations. Involvement of external valuers is decided by
33 management on a case by case basis. Selection criteria include
market knowledge, reputation, independence and whether
professional standards are maintained.
At each reporting date, management analyses the movements in the
values of assets and liabilities which are required to be re-measured
or re-assessed as per the Company’s and its subsidiaries accounting
policies. For this analysis, management verifies the major inputs
applied in the latest valuation by agreeing the information in the
valuation computation to contracts and other relevant documents.
Management, in conjunction with the input of external valuers, compares
the changes in the fair value of each asset and liability with relevant
external sources to determine whether the change is reasonable.
For the purpose of fair value disclosures, the Company and its
subsidiaries have determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset or liability
and the level of the fair value hierarchy as explained above.
(e) 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 and
estimates 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.$124,701 and U.S.$77,028 as
at 31 December 2013 and 2012, 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 (m) and (n), 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.$1,701 and U.S.$878 as at 31 December 2013 and
2012, 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.$238
and U.S.$251 as at 31 December 2013 and 2012, 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. 
(f) 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 (u) below.
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
34 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.
(g) 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.
(h) 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.
(i) 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, maintain minimum cash liquidity 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 9).
(j) 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.
(k) 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 2013 and 2012.
(l) 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 the recovery
amount. Such adjustments are recorded in the year they become
known. Insurance claims receivable amounted to U.S.$238 and
U.S.$251 at 31 December 2013 and 2012, respectively.
35 (m) 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, the related construction cost, borrowings cost
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. 
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 is U.S.$350
per lightweight ton effective since 1 July 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 6 and 25 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 incurred. 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 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 vessel or upon completion of
construction of a new built 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.
(n) 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:
36 • i) for the fiscal year 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 is 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.$ nil and U.S.$8,580 for the years ended 31
December 2013 and 2012, respectively (note 7).
(o) 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 (note 2p) 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.
(p) 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.
(q) 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
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, 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 (p).
(r) 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
37 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 12). 
(s) 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
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.
(t) Finance Income: 
Finance income is earned from the short-term deposits of the
Company and its subsidiaries and is recognised on the accrual basis.
(u) 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.
(v) 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.
(w) 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.
(x) 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.
38 (y) 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.
(z) The accounting policies adopted are consistent with those of the 
previous financial year except for the following amended IFRSs
which have been adopted by the Company and its subsidiaries
as of 1 January 2013:
- IAS 1 Financial Statement Presentation (Amended) - Presentation of
Items of Other Comprehensive Income. 
- IAS 19 Employee Benefits (Revised) 
- IFRS 7 Financial Instruments: Disclosures (Amended) - Offsetting 
Financial Assets and Financial Liabilities
- IFRS 13 Fair Value Measurement
- IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine
- Annual Improvements to IFRSs - 2009 - 2011 Cycle
When the adoption of the standard or interpretation is deemed to
have an impact on the financial statements or performance of the
Company, its impact is described below:
• IAS 1 Financial Statement Presentation (Amended) - Presentation 
of Items of Other Comprehensive Income. 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, net gain on hedge of net investment, exchange
differences on translation of foreign operations, net movement on
cash flow hedges and net loss or gain on available-for-sale financial
assets) would be presented separately from items that will never be
reclassified (for example, actuarial gains and losses on defined
benefit plans and revaluation of land and buildings). The amendment
affects presentation only and has no impact on the financial position
or performance of the Company and its subsidiaries.
• IAS 19 Employee Benefits (Revised). IAS 19 initiates a number of 
amendments to the accounting for defined benefit plans, including
actuarial gains and losses that are now recognised in other
comprehensive income (OCI) and permanently excluded from profit
and loss; expected returns on plan assets that are no longer
recognised in profit or loss, instead, there is a requirement to
recognise interest on the net defined benefit liability (asset) in profit
or loss, calculated using the discount rate used to measure the
defined benefit obligation, and; unvested past service costs are now
recognised in profit or loss at the earlier of when the amendment
occurs or when the related restructuring or termination costs are
39 40
recognised. Other amendments include new disclosures, such as,
quantitative sensitivity disclosures. The effect of this amendment
is not significant for the Company and its subsidiaries.
• IFRS 7 Financial Instruments: Disclosures (Amended) - Offsetting 
Financial Assets and Financial Liabilities. These amendments require
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. These amendments have no impact
on disclosure requirements of the Company and its subsidiaries.
• IFRS 13 Fair Value Measurement. 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 application of IFRS 13
has not materially impacted the fair value measurements carried
out by the Company and its subsidiaries. IFRS 13 also requires
specific disclosures on fair values, some of which replace existing
disclosure requirements in other standards, including IFRS 7
Financial Instruments: Disclosures. The application of this standard
has not materially impacted the fair value measurements carried
out, where necessary, by the Company and its subsidiaries.
• The IASB has 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. These improvements have no impact on the financial
position or performance of the Company and its subsidiaries.
- 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. 
(aa) IFRS and IFRIC Interpretations issued but 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 28 Investments in Associates and Joint Ventures (Revised). As 
a consequence of the new IFRS 11 Joint arrangements and IFRS 12
Disclosure of Interests in Other Entities,  IAS 28 Investments in
Associates, 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.
• IFRS 10 Consolidated Financial Statements, IAS 27 Separate Financial
Statements. The new standard is effective for annual periods
beginning on or after 1 January 2014. 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 standard 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 2014. 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.
This standard will not have an impact on the financial statements
of the Company and its subsidiaries. 
• IFRS 12 Disclosures of Interests in Other Entities. The new standard 
is effective for annual periods beginning on or after 1 January 2014.
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. A number of new
disclosures are also required. The Company and its subsidiaries are
in the process of assessing the impact that the standard will have
on their disclosure requirements.
• Transition Guidance (Amendments to IFRS 10, IFRS 11 and IFRS 
12). The guidance is effective for annual periods beginning on or after
1 January 2014. 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. The Company and its subsidiaries do not
expect that this transition guidance 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. 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. The amendment is
effective for annual periods beginning on or after 1 January 2014.
These amendments clarify the meaning of “currently has a legally
enforceable right to set-off”. The amendments also clarify 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. The Company
and its subsidiaries do not expect that this amendment will have
an impact on their financial position or performance.
• IFRS 9 Financial Instruments: Classification and Measurement and 
subsequent amendments to IFRS 9 and IFRS 7-Mandatory Effective
Date and Transition Disclosures; Hedge Accounting and
amendments to IFRS 9, IFRS 7 and IAS 39. 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 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. In
41 subsequent phases, the IASB will address hedge accounting and
impairment of financial assets. The subsequent package of
amendments issued in November 2013 initiate further accounting
requirements for financial instruments. These amendments a) bring
into effect a substantial overhaul of hedge accounting that will allow
entities to better reflect their risk management activities in the
financial statements; b) allow the changes to address the so-called
‘own credit’ issue that were already included in IFRS 9 Financial
Instruments to be applied in isolation without the need to change
any other accounting for financial instruments; and c) remove the
1 January 2015 mandatory effective date of IFRS 9, to provide
sufficient time for preparers of financial statements to make the
transition to the new requirements. These standard and subsequent
amendments have not yet been endorsed by the EU. The Company
and its subsidiaries will quantify the effect in conjunction with the
other phases, when the final standard including all phases is issued. 
• IAS 36 Impairment of Assets (Amended) - Recoverable Amount 
Disclosures for Non-Financial Assets. This amendment is effective for
annual periods beginning on or after 1 January 2014. These
amendments remove the unintended consequences of IFRS 13 on the
disclosures required under IAS 36. In addition, these amendments
require disclosure of the recoverable amounts for the assets or CGUs
for which impairment loss has been recognised or reversed during
the period. The Company and its subsidiaries are in the process of
assessing the impact from the adoption of this amendment. 
• IAS 39 Financial Instruments (Amended): Recognition and Measurement
- Novation of Derivatives and Continuation of Hedge Accounting. This
amendment is effective for annual periods beginning on or after 1
January 2014. Under the amendment there would be no need to
discontinue hedge accounting if a hedging derivative was novated,
provided certain criteria are met. The IASB made a narrow-scope
amendment to IAS 39 to permit the continuation of hedge accounting
in certain circumstances in which the counterparty to a hedging
instrument changes in order to achieve clearing for that instrument.
The Company and its subsidiaries do not expect that this amendment
will have an impact on their financial position or performance.
• IAS 19 Defined Benefit Plans (Amended): Employee Contributions. 
The amendment is effective from 1 July 2014. The amendment
applies to contributions from employees or third parties to defined
benefit plans. The objective of the amendment is to simplify the
accounting for contributions that are independent of the number of
years of employee service, for example, employee contributions
that are calculated according to a fixed percentage of salary. This
amendment has not yet been endorsed by the EU. The Company
and its subsidiaries do not expect that this amendment will have a
significant impact on their financial position or performance.
• IFRIC Interpretation 21: Levies. The interpretation is effective for annual 
periods beginning on or after 1 January 2014. The Interpretations
Committee was asked to consider how an entity should account for
liabilities to pay levies imposed by governments, other than income
taxes, in its financial statements. This Interpretation is an
interpretation of IAS 37 Provisions, Contingent Liabilities and
Contingent Assets. IAS 37 sets out criteria for the recognition of a
liability, one of which is the requirement for the entity to have a
present obligation as a result of a past event (known as an obligating
event).  The Interpretation clarifies that the obligating event that gives
rise to a liability to pay a levy is the activity described in the relevant
legislation that triggers the payment of the levy. This interpretation
has not yet been endorsed by the EU. The Company and its
subsidiaries do not expect that this amendment will have an impact
on their financial position or performance.
• The IASB has issued the Annual Improvements to IFRSs 2010 - 2012 
Cycle, which is a collection of amendments to IFRSs. The amendments
are effective for annual periods beginning on or after 1 July 2014. These
annual improvements have 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.
- IFRS 2 Share-based Payment: This improvement amends the 
definitions of 'vesting condition' and 'market condition' and adds
definitions for 'performance condition' and 'service condition'
(which were previously part of the definition of 'vesting condition'). 
- IFRS 3 Business combinations: This improvement clarifies that 
contingent consideration in a business acquisition that is not
classified as equity is subsequently measured at fair value through
profit or loss whether or not it falls within the scope of IFRS 9
Financial Instruments.
42 - IFRS 8 Operating Segments: This improvement requires an entity 
to disclose the judgments made by management in applying the
aggregation criteria to operating segments and clarifies that an
entity shall only provide reconciliations of the total of the
reportable segments' assets to the entity's assets if the segment
assets are reported regularly. 
- IFRS 13 Fair Value Measurement: This improvement in the Basis 
of Conclusion of IFRS 13 clarifies that issuing IFRS 13 and
amending IFRS 9 and IAS 39 did not remove the ability to measure
short-term receivables and payables with no stated interest rate
at their invoice amounts without discounting if the effect of not
discounting is immaterial. 
- IAS 16 Property Plant & Equipment: The amendment clarifies that 
when an item of property, plant and equipment is revalued, the
gross carrying amount is adjusted in a manner that is consistent
with the revaluation of the carrying amount. 
- IAS 24 Related Party Disclosures: The amendment clarifies that an 
entity providing key management personnel services to the
reporting entity or to the parent of the reporting entity is a related
party of the reporting entity. 
- IAS 38 Intangible Assets: The amendment clarifies that when an 
intangible asset is revalued the gross carrying amount is adjusted in a
manner that is consistent with the revaluation of the carrying amount. 
• The IASB has issued the Annual Improvements to IFRSs 2011 - 2013
Cycle, which is a collection of amendments to IFRSs. The
amendments are effective for annual periods beginning on or after
1 July 2014. These annual improvements have not yet been
endorsed by the EU. The Company and its subsidiaries are in
process of evaluating the effect of these amendments to their
financial position and performance.
- IFRS 3 Business Combinations: This improvement clarifies that 
IFRS 3 excludes from its scope the accounting for the formation
of a joint arrangement in the financial statements of the joint
arrangement itself. 
- IFRS 13 Fair Value Measurement: This improvement clarifies  that 
the scope of the portfolio exception defined in paragraph 52 of
IFRS 13 includes all contracts accounted for within the scope of
IAS 39 Financial Instruments: Recognition and Measurement or
IFRS 9 Financial Instruments, regardless of whether they meet the
definition of financial assets or financial liabilities as defined in IAS
32 Financial Instruments: Presentation. 
- IAS 40 Investment Properties: This improvement clarifies that 
determining whether a specific transaction meets the definition
of both a business combination as defined in IFRS 3 Business
Combinations and investment property as defined in IAS 40
Investment Property requires the separate application of both
standards independently of each other.   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:
There are no non-audit fees included in the general and administrative
expenses for the years ended 31 December 2013 and 2012.
5. Finance Expense
The amounts in the accompanying consolidated income statement are
analysed as follows:
44 6. Loss per Share 
Basic loss per share ("LPS") is calculated by dividing loss for the year
attributable to shareholders of Hellenic Carriers Limited of U.S.$14,197
and U.S.$20,731 for the years ended 31 December 2013 and 2012,
respectively, by the weighted average number of shares outstanding
45,616,851 for the years ended 31 December 2013 and 2012. 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 2013 and
2012, the numerators and denominators used to calculate diluted LPS
are the same as those used to calculate basic LPS as disclosed above.
7. Vessels, net
Vessels consisted of the following at 31 December:
45 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.$2 depreciation on office furniture and equipment
for the year ended 31 December 2013 (31 December 2012: U.S.$4).
Additions
On 12 August 2013, “Ithaca Maritime Ltd” (“Ithaca”) took delivery of M/V
Odysseas, a 81,662 dwt Kamsarmax new building. Additionally, on 25
September 2013, “Symi Shipping Corp” (“Symi”), took delivery of M/V
Konstantinos II, a 81,698 dwt Kamsarmax new building. Both vessels
were built at Zhejiang Ouhua Shipbuilding Co. Ltd. (“the yard”) under the
terms of the shipbuilding contracts entered into in June 2010 for a total
consideration of U.S.$34,200 per vessel and expected delivery in the first
quarter in 2013. The contract price of the vessels was renegotiated and
reduced to U.S.$26,280 per vessel or U.S.$52,560 in aggregate and their
delivery dates were extended. An amount of U.S.$13,600 per contract
or U.S.$27,200 in aggregate was remitted to the yard in 2010 as advance
payment and the remaining balance due to the yard was covered by bank
financing upon delivery (note 11).
The dry-docking component of the new building vessels was estimated
at U.S.$200 per vessel or U.S.$400 in aggregate and was transferred to
dry-docking cost upon vessels’ delivery equally reducing the vessel cost. 
The capitalised expenses from the date of contract signing until vessels’
delivery amounted to U.S.$2,437 (2012: U.S.$1,677) and consisted of:
a) supervision cost and services provided in relation to the placement of
the orders of U.S.$1,784 (2012: U.S.$880) of which, U.S.$1,599 (2012:
U.S.$759) was charged by Mantinia Shipping Co S.A. (note 10), b)
capitalised borrowing costs of U.S.$462 (2012: U.S.$694) (note 11), c)
legal expenses of U.S.$136 (2012: U.S.$61) and, e) Freight Demurrage
Defence Insurance of U.S.$55 (2012: U.S.$42). In addition, the total direct
costs incurred upon vessels’ delivery (initial supplies of consumables
necessary for trading) amounted to U.S.$731 in aggregate. 
The total transfer from vessels under construction to vessel cost for the
year ended 31 December 2013, amounted to U.S.$55,328 (2012:U.S.$ nil).
In March 2013, additions in the amount of U.S.$103 (2012: U.S.$504) to the equipment of M/V Konstantinos D were effected, improving the
vessel’s operation and trading capacity. 
Dry-docking 
In 2013, the vessels M/V Konstantinos D and M/V Hellenic Wind performed
their intermediate surveys. The capitalised dry docking cost for the above
surveys amounted to U.S.$1,273 in aggregate. In addition upon delivery
of the new building vessels the estimated dry-docking component until
the next scheduled surveys amounted to U.S.$200 per vessel. 
The total deferred dry-docking cost for the year ended 31 December
2013, amounted to U.S.$1,673 (U.S.$1,207 as at 31 December 2012) and
was included in the vessels cost as at 31 December 2013.
Advances for vessel acquisition
In August 2013, one of the Company's subsidiaries agreed to purchase
from an unaffiliated third party the M/V Ocean Alliance, a geared 52,388
dwt Supramax vessel, built in 2004 at Tsuneishi Shipbuilding Corporation
in Japan, at the price of U.S.$16,160 in cash. As per the terms of the
Memorandum of Agreement, a 10% advance payment was made in the
amount of U.S.$1,616. This amount was included in the advances for
vessel acquisitions as at 31 December 2013. The vessel was delivered
on 7 January 2014 and was renamed M/V Pistis (note 19).  
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, 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
in 2012, 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 in 2012, 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 income statement for the year
ended 31 December 2012.
Impairment
Further to the receipt fair market valuations of the fleet as of 31
December 2013, 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 year 2014 time charter rates achievable for vessels of similar
type and age in the current freight market and, b) for 2015 the average
1 year time charter rate of the previous decade and thereafter a revenue
growth rate of 2.0% on the average 1 year rate of the previous decade.
The cash inflows are calculated based on actual fleet utilisation of the
period ended and the cash outflows comprise of actual 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 utilisation. Consequently, a
sensitivity analysis was performed by assigning possible alternative
values to these two significant inputs. The impairment test and sensitivity
analysis performed did not result in any adjustment of the book values.
Therefore, no impairment loss was recognised by the Company and its
subsidiaries for the year ended 31 December 2013. The impairment loss,
calculated on a comparable basis, for 2012 was U.S.$8,580.
8. Cash and Cash Equivalents
The amounts in the accompanying consolidated statement of financial
position are analysed as follows:
47 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
2013 and 2012, amounted to U.S.$403 and U.S.$613, respectively and is
included in the accompanying consolidated income statement.
9. Restricted Cash
The amounts in the accompanying consolidated statement of financial
position are analysed as follows:
Restricted cash reported at 31 December 2013 amounted to U.S.$9,525
(2012: U.S.$19,232). This amount consists of a) U.S.$5,346 being the
aggregate of the proceeds from the sale of the vessel Hellenic Sea which
are held pledged with the vessel’s lender for the purpose described in
note 11 (2012: U.S.$15,567 representing proceeds from the sale of the
above mentioned vessel and of the M/V Hellenic Sky) and in addition
U.S.$200 being the minimum cash requirement under one of the loan
facilities, 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 16 (2012: U.S.$3,400) and c) U.S.$579 being cash held
in bank accounts of the vessel owning companies that are retained for
the payment of future instalments (2012: U.S.$265).
10. Related parties transactions
Transactions with related parties consisted of the following for the year
ended 31 December:
Balances due from related parties as at 31 December comprise the
following:
Until August 2013, the vessel-owning companies of the operating vessels
included in the consolidated financial statements had 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,
48 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 for fiscal year 2013 and 2012. These transactions
are eliminated in the consolidation. 
Additionally, HSC had subcontracted to Mantinia Shipping Company S.A.
(“Mantinia”), a related party, under common control, the technical
management of the vessels. Out of the monthly fee of U.S.$34.1 payable
to HSC, the amount of U.S.$22.0 per vessel was payable to Mantinia on
a monthly basis for the services provided for the period up to August 2013
and for the fiscal year 2012. For the year ended 31 December 2013 and
2012, sub-management fees charged by Mantinia amounted to U.S.$475
and U.S.$1,062, respectively and were included in Management fees -
related parties in the consolidated statement of income.
In August 2013, the vessel-owning companies of the operating vessels
included in the consolidated financial statements entered into
management agreements with HC Corp, a related party, under common
control to provide, in the normal course of business, full managerial and
administrative services, such as commercial management services,
supervision of the sale and purchase of vessels, chartering, technical
support and maintenance, implementation, monitoring and audit of
safety management system in connection with the ISM certification,
engagement and provision of crew, financial and accounting services  for
a daily management fee of U.S.$1.0 per vessel for fiscal year 2013 as
well as 1% brokerage commission on revenue earned and 1% on each
Sale and Purchase transaction concluded. 
For the period from August until 31 December 2013 and for the fiscal
year 2012, management fees charged by HC Corp amounted to U.S.$678
and U.S.$ nil, respectively and were included in Management fees –
related parties in the consolidated statement of income. Additionally,
chartering commission charged for the year ended 31 December 2013
and 2012 by HC Corp amounted to U.S.$60 and U.S.$ nil, respectively
and were included in Voyage expenses - related parties in the
consolidated statement of income.
Furthermore Mantinia provided supervision services to Symi and to
Ithaca in relation to the shipbuilding contracts. The fees for the above
services capitalised to vessels under construction as of 31 December
2013 and 31 December 2012 amounted to U.S.$1,599 and U.S.$759,
respectively (note 7).
Directors’ remuneration for the year ended 31 December is analysed as
follows: 
The fixed Directors’ remuneration amounts for the year ended 31
December 2013 remain unchanged. 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 2013 and 2012
reflect foreign exchange differences. No pension contributions were
made during the years ended 31 December 2013 and 2012. 50
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 sale of the vessel M/V Hellenic Sky in May 2012 and the latest
supplemental agreement dated 19 September 2013, the proceeds from the
sale of the vessel in the amount of U.S.$10,340 (note 9) were transferred
as bank financing towards the acquisition cost of the Kamsarmax M/V
Konstantinos II coupled with new debt in the amount of U.S.$2,220. The
amount was drawn upon vessel’s delivery. The loan tenor was extended
and the new maturity date is 8 May 2023. The outstanding balance as of
31 December 2013, is repayable in eight quarterly instalments of
U.S.$215 each, followed by thirty quarterly instalments of U.S.$430. The
first instalment was due on 10 February 2014 and the final instalment is
due on 8 May 2023, along with a balloon payment of U.S.$12,340. An
interim balloon in the amount of U.S.$4,805 is payable in February 2018. 
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, (ii)
financing part of the acquisition cost of M/V Konstantinos D. and M/V
Hellenic Wind, (iv) providing working capital and, (v) providing financing
for future dry-bulk vessel acquisition(s). Further to the sale of the vessel
11. Long-Term Debt
The amounts in the accompanying consolidated statement of financial position are analysed as follows: M/V Hellenic Sea in August 2012 and the option provided to the
borrowers to transfer the proceeds from the sale of the vessel in the
amount of U.S.$5,346 (note 9) as bank financing towards the acquisition
of a younger vessel, a new facility agreement was entered into with the
lender on 7 August 2013 for the purpose of refinancing in full the existing
indebtness and providing additional debt in the amount of U.S.$2,500
for the purpose of financing part of the above acquisition (note 19).
These amounts were applied towards the acquisition cost of the
Supramax M/V Pistis which was delivered on 7 January 2014 (note 19).
The maturity date of the loan is 7 May 2020. The outstanding balance as
of 31 December 2013 amounting to U.S.$49,485 along with the new debt
of U.S.$2,500 drawn on 7 January 2014 is repayable in eight quarterly
instalments of U.S.$415 each, followed by four quarterly instalments of
U.S.$700 each, four quarterly instalments of U.S.$750 each, an interim
balloon of U.S.$1,400 payable in November 2017, four quarterly
instalments of U.S.$1,120 each, a second interim balloon of U.S.$1,250
payable in November 2018, four quarterly instalments of U.S.$1,120
each, a third interim balloon of U.S.$1,250 payable in November 2019,
and two quarterly instalments of U.S.$2,000, the last one being payable
on maturity 7 May 2020 along with a balloon payment of U.S.$26,005. 
Loan c: On 30 March 2011, Ithaca Maritime Ltd, the owning company of
the Kamsarmax vessel under construction M/V Odysseas, entered into a
term-loan facility for the financing of up to 65% of the vessel’s market
value upon delivery. Further to the reduction in the vessel’s contract price
(note 7), and following a supplemental loan agreement dated 6 August
2013, the amount of U.S.$17,080 was drawn down upon vessel’s delivery
in August 2013. The loan outstanding balance as of 31 December 2013,
is repayable in twelve semi-annual instalments of U.S.$460 each. The first
instalment was due on 10 February 2014 and the final instalment is due
on 9 August 2019, along with a balloon payment of U.S.$11,560. 
Borrowing costs for the arrangement of the financing as of 31 December
2012 amounted to U.S.$356 and were classified as non-current assets in
the accompanying consolidated statement of financial position. Upon
vessel’s delivery this amount was reclassified to debt discount against long-
term debt in the accompanying consolidated statement of financial position.
On 30 March 2011, Symi Shipping Corp, the owning company of the
Kamsarmax vessel under construction M/V Konstantinos II, entered into
a similar term-loan facility as the one described above (loan c) for the
financing of the vessel upon delivery. Following the reduction in the
vessel’s contract price, a decision was made to cancel this undrawn
commitment and incorporate M/V Konstantinos II into loan a. 
Consequently the borrowing costs (U.S.$358) for the initial financing
arrangement along with the commitment fees (U.S.$484) paid on the
undrawn loan in respect of M/V Konstantinos II, which were initially
capitalised under vessels under construction, were written off and are
included in finance expense in the accompanying consolidated income
statement. 
Part of the annual excess earnings generated by the vessels financed
under loans a and b after payment of their debt service (principal and
interest) will be paid to the lending banks. The payment due under this
clause for the fiscal year 2013 is U.S.$ nil.
The bank loans denominated in U.S. dollars bear interest at LIBOR plus
the applicable margin per loan agreement. 
The fair value of long term debt amounts to U.S.$79,365. 
The loans are secured by first preferred mortgages on the respective
vessels as well as general assignment of the earnings, insurances and
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. Necessary
waivers have been provided for loans a, b and c in respect of specific
covenants waived until 1 January 2015 at the earliest. Corporate
guarantees in favour of the lenders are provided as further security.
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 2013 and 2012, restricted cash
relating to financing arrangements of the Company and its subsidiaries
amounted to U.S.$579 and U.S.$265, respectively (note 9).
As of 31 December 2013, Hellenic and its subsidiaries are in compliance
with their debt covenants.
The weighted average interest rate for the year ended 31 December 2013
and 2012 was 4.90% and 5.95%, respectively including of the effect of
the related interest rate swaps until their termination in August 2013.
51 Total interest paid was U.S.$5,067 and U.S.$5,550 for the years ended
31 December 2013 and 2012, respectively.
12. Other non-current ﬁnancial liabilities
The Company had two interest rate swaps which, until their maturity in
August 2013 were designated as hedges of expected future Libor
payments in connection with the loans described under note 11. The
critical terms of the interest rate swaps were negotiated upon
designation to match the terms of the respective loans. Under both
contracts, the Company exchanged 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 11). 
As of the maturity of the two interest rate swaps in August 2013, a net
unrealised gain on cash flow hedges amounting to U.S.$1,158 has been
credited to the consolidated statement of other comprehensive income for
the year ended 31 December 2013, while an equal amount has been included
in interest payable on long-term borrowings under finance expense (note 5)
in the consolidated income statement. For the year ended 31 December 2012,
the Company recognised a net unrealised gain of U.S.$1,801 which was
charged to the consolidated statement of comprehensive income.
The fair value of the derivative financial instruments at 31 December
2012, was a liability of U.S.$1,158 and was included in current portion
of other non-current financial liabilities in the accompanying consolidated
statements of financial position.
13. 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.$4.5 million.
The analysis of the share premium is as follows:
14. Accrued Liabilities and Other Payables
The amounts in the accompanying statement of financial position at 31
December are as follows:
52 15. Dividends Declared
Dividend rights: Under the Company’s Articles of Incorporation, each
ordinary share is entitled to dividends if and when dividends are declared
by the Board of Directors. There are no restrictions on the Company’s
ability to approve dividends, provided that the Directors are able to sign
a statement of solvency. The payment of final dividends is subject to the
approval of the Annual General Meeting of Shareholders (“AGM”), while
the payment of interim dividends is subject to the approval of the Board
of Directors.
In order to reinforce the Company’s liquidity and optimize the use of cash
when market opportunities arise, the Directors of the Company
recommended that dividend payment for the year 2013 be suspended
(2012: U.S.$nil). 
16. Commitments and contingencies
Further to Samsun’s Rehabilitation Plan and the settlement agreement
dated 19 January 2010 between Arkadia and Samsun, the acknowledged
claim amount is recoverable 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. The outstanding balance of
the acknowledged claim under (i) above amounted to U.S.$4,542 as of
31 December 2013. 
In relation to (i) above, Arkadia received to date the amount of U.S.$1,394
and is already engaged in legal proceedings in Korea for the amount of
U.S.$267 (50% of the 2012 instalment), while the amount of U.S.$476
representing the 2013 instalment due remains unsettled. Due to
Samsun’s failure to effect scheduled payment of instalments in 2012 and
2013 Arkadia assigned the balance of the claim under (i) above in respect
of the period 2013 - 2019 to an unaffiliated third party for a consideration
of U.S.$1,100 in cash (refer to note 19).
The amount of U.S.$267 received for 2012 was credited to other
operating income in the accompanying 2012 consolidated income
statement. The outcome of the implementation of the rehabilitation plan
remains difficult to forecast and, therefore, future inflows are uncertain.
Accordingly, the Company has not recognised future cash receipts under
this settlement and will make further assessments in 2014. 
In relation to (ii) above in July 2010 Arkadia received 212,018 Samsun
shares in respect of the remaining portion (66%) of the claim. These
shares have been classified as “available for sale”. As there is no trading
of these non-voting shares and as the outcome of the rehabilitation plan
remains difficult to forecast, the Company has assigned U.S.$ nil value
to them. The Company will make further assessments in 2014.
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 9) as security for Charterers’ claim
against the Owners for alleged loss of profit during the vessel’s off hire.
The 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 raised 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 the vessel’s hull insurers and the off-hire
cost), although the Charterers are not currently active in the market
hence no asset has been recorded by the Company for future cash
receipts 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
53 remaining terms between 1 to 4 months as of 31 December 2013 and 1
to 2 months as of 31 December 2012. Future minimum gross charter
revenues receivable upon time charter arrangements as at 31 December
2013 and 2012, 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.
17. Income taxes
The Company is subject to a 0% tax in Jersey.
Under the laws of the respective jurisdictions of the Company’s
subsidiaries, 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.
18. 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, available for sale investments,
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
54 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 designed to
hedge underlying debt obligations. Considering the prevailing uncertainty
with regard to the global macro-economics and their effect on interest
rates and in view of the increase of the fleet and the amendments made
to the financing profile of the Company and its subsidiaries it was
decided not to proceed with swap arrangements in 2013 and to re-
evaluate the hedging profile in 2014. At 31 December 2013, following
the maturity of the swap agreements stated in note 12, none of the
Company’s and its subsidiaries’ long-term borrowings bear interest at
fixed rate (2012: 65.8%). 
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:
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 2013 and 2012, 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 2013, 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.
55 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 2013 (note 11).
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.
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 2013, the Company and its subsidiaries held the
following financial instruments (note 12) 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 2013 and 2012, 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 2013 and 2012):
56 57
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. 19. Subsequent Events
The vessel M/V Pistis, a geared 52,388 dwt Supramax vessel built in
2004 at Tsuneishi Shipbuilding Corporation in Japan was delivered on 7
January 2014 under the terms of the acquisition agreement dated August
2013 for a total consideration of U.S.$16,160 in cash. 
Following assignment of Arkadia’s claim against Samsun (note 16) the
amount of U.S.$1,100 was received.
58 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.
Credit Agricole Corporate &
Investment Bank
 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