Courage Marine sails off with top spot in Marine Money rankings

􀂄 Takes 1st place in prestigious award that ranked the financial performance of 99 shipping groups worldwide in 2007

􀂄 Also finishes top in ROA, Debt to Capitalisation and Debt Coverage Ratio

􀂄 Award validates its tested, asset-light business model of deploying older, well-maintained ships while imposing stringent cost controls

Courage Marine Group Limited, a dry bulk shipper focused on infrastructure and energy related commodities, has once again demonstrated just how tightly and effectively it runs its ship by finishing first in Marine Money’s industry-acclaimed annual rankings.

Triumphing over 98 other companies, Courage Marine has been named the world’s bestshipping company for 2007 by Marine Money International, a highly respected provider ofmaritime company analysis that tracks the financial performance of the world’s most noteworthy shipping groups.

Courage Marine has surprised many by beating out far larger groups such as Cosco Holdings, STX Pan Ocean and AP Moller-Maersk. Runner-up D/S Norden A/S has a fleet of 216 vessels to Courage Marine’s eight. Size is clearly not everything, however, as Courage Marine has proved by coming out topsin the overall performance rankings, which assess candidates based on measures such as total return to shareholders, profit margin, return on assets (ROA) and return on equity(ROE).

In the individual categories, the Group placed first in ROA as well, with a figure of 52.6%. For ROE, it clinched the ninth place, with a figure of 64.2%. Courage Marine also won kudos in the financial strength rankings, nabbing second place. In the individual categories, the Group topped the rankings in terms of credit rating, interest coverage and debt to capitalisation.

This superb showing is a testament to how successfully the Group has managed its operations, securing contracts at the best dry bulk shipping rates available and maintaining excellent fleet utilisation rates of over 90%. In addition, its tight rein on costs and gearingl evels has helped Courage Marine rake in enviable profits.

For FY07, the Group’s eight vessels brought in revenues of US$90.4 million and net profits of US$60.4 million. Without a doubt, Courage Marine’s triumph in the credit rankings can be attributed to its low gearing, high profitability and ample liquidity.

Said Chairman Hsu Chih-Chien: “All in all, the results were extremely gratifying as they clearly validate our business model. Even though our fleet is made up of older ships, they are well-maintained and efficiently deployed. At today’s prices, it is certainly feasible to extend the life of our vessels to maximise on the current boom in commodities, as long as the payback is swift and the debt burden is light.

Currently, we are riding the boom by focusing on the spot market, with some COAs (contracts of affreightment) thrown into the mix as well for longer-term revenue. We have been securing excellent spot rates for coal and iron ore. Even our COA rates have beenfavourable too”Mr Hsu added: “Courage Marine’s ability to maintain top-notch profits over the past few years proves that we have one of the better business models in the industry and that our long-standing relationships across the region have stood us well.

After all, this award is not the first time that Money Marine has recognised our achievements. It ranked us 10th inoverall performance, third in financial strength and fifth in dividend yield for 2006, when the rankings covered only 86 companies.

“Money Market publisher George Weltman was openly taken aback when we clinched the top place this year, but he acknowledged that our win is certainly no fluke given our solid track record and that Wall Street clearly finds merit in our tested business model, especially now, when commodity markets are soaring and charterers need to move cargoes.”

To make the most of the current boom, Courage Marine is looking to increase its fleet, with both new and secondhand vessels, depending on price and availability. The Group’s healthy balance sheet, which boasts cash reserves of about US$77 million, will facilitate these acquisitions.

Courage Marine recently posted sterling results for the first quarter ended 31 March 2008, with a 32% year-on-year (yoy) rise in net attributable profit to US$12.6 million. grew by 29% yoy to US$21.5 million. Tight cost controls helped push up the Group’s net profit margin, to 58.3% from 57.1%.