Earnings Release • Sep 6, 2018
Earnings Release
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06/09/2018 – 5.45 pm Regulated information
The Board of Directors of EXMAR has approved the accounts for the period ending 30 June 2018.
| CONSOLIDATED KEY FIGURES | International Financial Reporting Standards (IFRS) (Note 1) |
Management reporting based on proportionate consolidation (Note 2) |
|||
|---|---|---|---|---|---|
| Consolidated statement of profit or loss | |||||
| (in million USD) | 30/06/2018 | 30/06/2017 | 30/06/2018 | 30/06/2017 | |
| Turnover | 47.6 | 44.6 | 88.3 | 117.6 | |
| EBITDA | 23.3 | $-17.8$ | 43.3 | 30.0 | |
| Depreciations and impairment losses | $-9.4$ | $-4.2$ | $-21.8$ | $-46.3$ | |
| Operating result (EBIT) | 13.8 | $-22.0$ | 21.5 | $-16.3$ | |
| Net finance result (*) | $-10.2$ | 1.3 | $-17.4$ | $-16.6$ | |
| Share in the result of equity accounted investees (net of income ${$ ax $}$ |
0.7 | $-12.8$ | 0.4 | $-0.5$ | |
| Result before tax | 4.4 | $-33.5$ | 4.5 | $-33.4$ | |
| Tax | $-0.9$ | $-0.6$ | $-1.0$ | $-0.7$ | |
| Consolidated result after tax | 3.5 | $-34.1$ | 3.5 | $-34.1$ | |
| of which group share | 3.4 | $-34.1$ | 3.4 | $-34.1$ | |
| Information per share | |||||
| in USD per share | |||||
| Weighted average number of shares of the period | 57,017,761 | 56,832,799 | 57,017,761 | 56,832,799 | |
| EBITDA | 0.41 | $-0.31$ | 0.76 | 0.53 | |
| EBIT (operating result) | 0.24 | $-0.39$ | 0.38 | $-0.29$ | |
| Consolidated result after tax | 0.06 | $-0.60$ | 0.06 | $-0.60$ | |
| Information per share | |||||
| in EUR per share | |||||
| Exchange rate | 1.2127 | 1.0789 | 1.2127 | 1.0789 | |
| EBITDA | 0.34 | $-0.29$ | 0.63 | 0.49 | |
| EBIT (operating result) | 0.20 | $-0.36$ | 0.31 | $-0.27$ | |
| Consolidated result after tax | 0.05 | $-0.56$ | 0.05 | $-0.56$ |
Note1: The figures in these columns have been prepared in accordance with IFRS as adopted by the EU.
Note2: The figures in these columns show joint ventures applying the proportionate consolidation method instead of applying the equity method.
The amounts in these columns correspond with the amounts in the 'Total' column of Note 4 Segment Reporting in the Financial Report per 30 June 2018.
A reconciliation between the amounts applying the proportionate method and the equity method is shown in Note 5 in the Half Year Report per 30 June 2018.
Half year report 2018 available on website: today September 6th 2018
The operating result (EBIT) of the LPG fleet in the first half of 2018 was USD 1.9 million (as compared to USD 7.4 million for the same period in 2017).
| Time-Charter Equivalent (in USD per day) | First Semester 2018 |
First Semester 2017 |
||
|---|---|---|---|---|
| Midsize (38,115 m³) | 18,603 | 21,652 | ||
| VLGC (83,300 m³) | 8,392 | 16,871 | ||
| Pressurized (3,500 m³) | 6,803 | 5,604 | ||
| Pressurized (5,000 m³) | 8,761 | 6,712 |
Spot market returns for VLGCs were at the lowest levels since 2015 but have almost doubled since early June to around USD 23.000/day on a modern 84,000 m³ and are expected to stay stable going forward. EXMAR's only VLGC position basis BW TOKYO is currently committed on a time charter with a contract that runs until mid-2019 in accordance with the Baltic Index. The two LPG-fuelled 80,200 m³ newbuild gas carriers under construction at Hanjin Heavy Industries shipyard in Philippines are secured by a long-term charter commitment with Equinor (previously Statoil ASA). The vessels will be delivered by 2020.
EXMAR has one of the most fuel-efficient Midsize fleets in the sector following a modernisation programme commenced in 2014 that came to the end with the delivery of the final vessel WEPION on 31 July 2018. The renewal of EXMAR LPG's fleet has now been completed.
In this segment EXMAR steadily continues to secure forward employment. For the rest of 2018 cover stands at 83% for its fleet of 20 midsize vessels and at 48 % for 2019 (which excludes options to extend existing time charters).
Rates in the pressurized segment have continued their trend upwards. Additional volumes have been generated in the Far East and trades to the West of Suez also experienced a positive evolution in earnings as a result of tight availability of vessels and continuous demand for smaller LPG and petrochemical cargoes.
With a limited order book for Pressurized vessels and an ageing world fleet, EXMAR is well positioned with its ten vessels to benefit further from these solid rates. EXMAR's pressurized fleet is 100 % covered for the rest of 2018.
On the back of these strong rates, a refinancing of the pressurised fleet is currently being contemplated at better terms.
The operating result (EBIT) was USD 23.8 million for the first half 2018 including USD 30.9 million capital gain on the sale of FSRU EXCELSIOR (compared to USD -20.4 million for the first half 2017).
LNG Shipping: LNG shipping EBIT is generated by the one LNG carrier EXCALIBUR in ownership under her long-term time charter contract beyond 2022, fully performing in line with expectations.
Floating Regasification: In January 2018 the sale of EXMAR's FSRU EXCELSIOR has been concluded. The sale of EXMAR's share in the other three FSRU's took place already in 2017.
The FSRU barge, contracted to Gunvor last year and delivered from the yard in December 2017, is currently at Keppel Shipyard undergoing site specific modifications prior to deployment under its 10-year charter in Bangladesh. This long-term contract will start generating cash flow as from October 2018.
Floating Liquefaction: The CFLNG, ready at the yard, is being prospected for several LNG export opportunities. Commercial discussions have intensified with various parties.
The operating result (EBIT) for the first half of 2018 is USD -2.0 million (compared to USD -3.9 million in the first half of 2017).
The Offshore division continues to focus its efforts on securing further partnerships with oil majors and deep water oil exploration companies with scalable OPTI® and FPSO solutions that enable low cost, high yielding exploration and production.
The NUNCE accommodation work barge will remain under firm employment with Sonangol P&P, offshore Angola, until the end of the second quarter 2022. The WARIBOKO accommodation work barge continues to be employed by Total E&P, offshore Nigeria, and will be employed until the end of the third quarter 2018. EXMAR is currently working on employment opportunities beyond that period.
The contribution of the Services activities (EXMAR SHIP MANAGEMENT and TRAVEL PLUS) to the operating result (EBIT) for the first half of 2018 is USD 1.4 million (compared to USD 1.8 million in 2017 for the same period).
The contribution of the Holding activities to the operating result (EBIT) for the first half 2018 was USD -3.5 million (compared to USD -1.2 million in the first semester 2017).
EXMAR Ship Management has diversified its fleet under management, which now totals 88 assets.
Travel PLUS had a good first semester for 2018 with a 2% year-on-year increase in overall earnings.
The condensed consolidated interim financial information as of and for the six months period ended 30 June 2018 included in this document, have not been subject to an audit or a review by our statutory auditor.
The Board of Directors, represented by Nicolas Saverys and JALCOS NV represented by Ludwig Criel, and the executive committee, represented by Patrick De Brabandere and Miguel de Potter, hereby certifies, on behalf and for the account of the company, that, to their knowledge,
the condensed consolidated interim financial information which has been prepared in accordance with IAS 34, "Interim Financial Reporting" as adopted by the European Union, give a true and fair view of the equity, financial position and financial performance of the company, and the entities included in the consolidation as a whole,
the interim management report includes a fair overview of the information required under Article 13, §§ 5 and 6 of the Royal Decree of November 14, 2007 on the obligations of issuers of financial instruments admitted to trading on a regulated market.
EXMAR's mission is to serve customers with innovations in the field of offshore extraction, transformation, production, storage and transportation by sea of liquefied natural gases, petrochemical gases and liquid hydrocarbons. EXMAR designs, builds, certifies, owns, leases and operates specialized floating maritime infrastructure for this purpose. EXMAR also aims for the highest standards in performing commercial, technical, quality assurance and administrative management for the entire maritime industry.
(In thousands of USD)
| 30 June 2018 |
31 December 2017 |
|
|---|---|---|
| ASSETS | ||
| NON-CURRENT ASSETS | 738,014 | 729,266 |
| Vessels | 575,274 | 563,021 |
| Vessels | 561,687 | 563,021 |
| Vessels under construction - advance payments | 13,587 | 0 |
| Other property, plant and equipment | 2,277 | 2,323 |
| Intangible assets | 347 | 612 |
| Investments in equity accounted investees | 103,911 | 104,416 |
| Borrowings to equity accounted investees | 56,205 | 58,894 |
| CURRENT ASSETS | 161,845 | 189,329 |
| Equity accounted investee held for sale | 0 | 23,004 |
| Other investments | 5,756 | 4,577 |
| Trade receivables and other receivables | 38,176 | 50,772 |
| Current tax assets | 568 | 653 |
| Derivative financial instruments | 758 | 1,065 |
| Restricted cash | 67,438 | 67,434 |
| Cash and cash equivalents | 49,149 | 41,825 |
| TOTAL ASSETS | 899,859 | 918,595 |
| EQUITY AND LIABILITIES | ||
| TOTAL EQUITY | 482,731 | 477,542 |
| Equity attributable to owners of the Company | 482,561 | 477,407 |
| Share capital | 88,812 | 88,812 |
| Share premium | 209,902 | 209,902 |
| Reserves | 180,398 | 150,662 |
| Result for the period | 3,449 | 28,031 |
| Non-controlling interest | 170 | 135 |
| NON-CURRENT LIABILITIES | 328,411 | 350,757 |
| Borrowings | 321,356 | 343,571 |
| Employee benefits | 4,695 | 4,826 |
| Provisions | 2,360 | 2,360 |
| Deferred tax liabilities | 0 | 0 |
| CURRENT LIABILITIES | 88,717 | 90,296 |
| Borrowings | 40,731 | 29,136 |
| Trade debts and other payables | 46,185 | 60,001 |
| Current tax liability | 1,801 | 1,159 |
| Derivative financial instruments | 0 | 0 |
| TOTAL EQUITY AND LIABILITIES | 899,859 | 918,595 |
(In thousands of USD)
| 6 months ended | 6 months ended | ||
|---|---|---|---|
| 30 June 2018 |
30 June 2017 |
||
| CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS | |||
| Revenue | 47,569 | 44,631 | |
| Gain on disposal | 30,922 | 1,504 | |
| Other operating income | 416 | 710 | |
| Operating income | 78,906 | 46,845 | |
| Raw materials and consumables used | 0 | 0 | |
| Goods and services (*) | -32,583 | -42,277 | |
| Personnel expenses | -21,524 | -22,153 | |
| Depreciations, amortisations & impairment losses | -9,438 | -4,192 | |
| Provisions | 0 | 0 | |
| Loss on disposal | -1,288 | 0 | |
| Other operating expenses | -227 | -203 | |
| Result from operating activities | 13,846 | -21,980 | |
| Interest income (**) | 1,571 | 12,907 | |
| Interest expenses | -8,752 | -7,558 | |
| Other finance income | 1,952 | 788 | |
| Other finance expenses | -4,950 | -4,808 | |
| Net finance result | -10,179 | 1,329 | |
| Result before income tax and share of result of equity accounted investees | 3,667 | -20,651 | |
| Share of result of equity accounted investees (net of income tax) | 709 | -12,836 | |
| Result before income tax | 4,376 | -33,487 | |
| Income tax expense | -887 | -619 | |
| Result for the period | 3,489 | -34,106 | |
| Attributable to: | |||
| Non-controlling interest | 40 | 27 | |
| Owners of the Company | 3,449 | -34,133 | |
| Result for the period | 3,489 | -34,106 | |
| Basic earnings per share (in USD) | 0.06 | -0.60 | |
| Diluted earnings per share (in USD) | 0.06 | -0.60 | |
| CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | |||
| Result for the period | 3,489 | -34,106 | |
| Items that are or may be reclassified subsequently to profit or loss: | |||
| Equity accounted investees - share in other comprehensive income | 1,835 | 239 | |
| Foreign currency translation differences | -602 | 1,235 | |
| Net change in fair value of cash flow hedges - hedge accounting | 0 | -100 | |
| Available-for-sale financial assets - net change in fair value | 0 | 0 | |
| Total other comprehensive income for the period (net of income tax) | 1,233 | 1,374 | |
| Total comprehensive income for the period | 4,722 | -32,732 | |
| Total comprehensive income attributable to: | |||
| Non-controlling interest | 35 | -24 | |
| Owners of the Company | 4,687 | -32,708 | |
| Total comprehensive income for the period | 4,722 | -32,732 |
(*) Goods and services decrease compared to 2017, this higher cost in 2017 was mainly caused by the fees paid to Wison Shipyard in respect of the Caribbean FLNG.
(**) Interest income decrease compared to 2017, is mainly caused by the 2017 sale of EXMAR's interest in three equity accounted investees (EXPLORER, EXPRESS, and EXCELERATE) for which EXMAR provided borrowings.
(In thousands of USD)
| 6 months ended 30 June 2018 |
6 months ended 30 June 2017 |
|
|---|---|---|
| OPERATING ACTIVITIES | ||
| Result for the period | 3,489 | -34,106 |
| Share of result of equity accounted investees (net of income tax) | -709 | 12,836 |
| Depreciations, amortisations & impairment loss | 9,438 | 4,192 |
| Profit or loss effect equity securities measured at FVTPL | 760 | -137 |
| Net interest expenses/ (income) | 7,180 | -5,349 |
| Income tax expense | 887 | 619 |
| Net gain on sale of assets | -29,634 | -1,504 |
| Unrealized exchange differences | 2,895 | 1,310 |
| Dividend income | 60 | -42 |
| Equity settled share-based payment expenses (option plan) | 347 | 399 |
| Gross cash flow from operating activities | -5,285 | -21,782 |
| (Increase)/decrease of trade and other receivables | 12,299 | -12,288 |
| Increase/(decrease) of trade and other payables | -7,971 | -1,107 |
| Increase/(decrease) in provisions and employee benefits | 132 | 0 |
| Cash generated from operating activities | -825 | -35,177 |
| Interest paid | -6,971 | -9,360 |
| Interest received | 2,929 | 11,529 |
| Income taxes paid | -1,438 | -1,024 |
| NET CASH FROM OPERATING ACTIVITIES | -6,305 | -34,032 |
| INVESTING ACTIVITIES | ||
| Acquisition of vessels and vessels under construction | -22,339 | -33,586 |
| Acquisition of other property plant and equipment | -129 | -175 |
| Acquisition of intangible assets | -29 | -219 |
| Proceeds from the sale of vessels and other property, plant and equipment | 0 | 1,528 |
| Disposal of an equity accounted investee | 44,438 | 0 |
| Dividends from equity accounted investees | 2,000 | -2,558 |
| Borrowings to equity accounted investees | 0 | 0 |
| Repayments from equity accounted investees | 2,115 | 18,730 |
| NET CASH FROM INVESTING ACTIVITIES | 26,056 | -16,280 |
| FINANCING ACTIVITIES | ||
| Dividends paid | 0 | 0 |
| Dividends received | 60 | 42 |
| Proceeds from treasury shares and share options excercised | 120 | 125 |
| Proceeds from new borrowings | 0 | 0 |
| Repayment of borrowings | -12,888 | -12,286 |
| Increase in restricted cash | 0 | -47 |
| Decrease in restricted cash | 0 | 4,740 |
| NET CASH FROM FINANCING ACTIVITIES | -12,708 | -7,426 |
| NET INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENTS | 7,043 | -57,738 |
| RECONCILIATION OF NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | ||
| Net cash and cash equivalents at 1 January | 41,825 | 121,096 |
| Net increase/(decrease) in cash and cash equivalents | 7,043 | -57,738 |
| Exchange rate fluctuations on cash and cash equivalents | 281 | 1,768 |
| NET CASH AND CASH EQUIVALENTS AT 30 JUNE | 49,149 | 65,126 |
| (In thousands of USD) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Share Share |
Reserve for | Share-based | Non | ||||||||
| Retained earnings |
treasury shares |
Translation reserve |
Fair value | Hedging | payments | controlling | Total | ||||
| capital | premium | reserve | reserve | reserve | Total | interest | equity | ||||
| CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS PER 30 JUNE 2017 | |||||||||||
| Opening equity as previously reported per 1 January 2017 (*) | 88,812 | 209,902 | 183,435 | -52,236 | -9,777 | 0 | 822 | 11,511 | 432,469 | 215 | 432,684 |
| Correction of the non application of IAS 23 in prior periods (*) | 9,234 | 9,234 | 9,234 | ||||||||
| Opening equity as previously reported per 1 January 2017 | 88,812 | 209,902 | 192,669 | -52,236 | -9,777 | 0 | 822 | 11,511 | 441,703 | 215 | 441,918 |
| Comprehensive result for the period | |||||||||||
| Result for the period | -34,133 | -34,133 | 27 | -34,106 | |||||||
| Foreign currency translation differences | 1,286 | 1,286 | -51 | 1,235 | |||||||
| Foreign currency translation differences - share equity accounted investees | 558 | 558 | 558 | ||||||||
| Net change in fair value of cash flow hedges - hedge accounting | -100 | -100 | -100 | ||||||||
| Net change in fair value of cash flow hedges - hedge accounting - share | |||||||||||
| equity accounted investees | -319 | -319 | -319 | ||||||||
| Total other comprensive result | 0 | 0 | 0 | ||||||||
| Total comprehensive result for the period | 0 | 0 | -34,133 | 0 | 1,844 | 0 | -419 | 0 | -32,708 | -24 | -32,732 |
| Transactions with owners of the Company | |||||||||||
| Dividends paid | 0 | 0 | |||||||||
| Share-based payments | |||||||||||
| - Share options exercised | -85 | 449 | -65 | 299 | 299 | ||||||
| - Share based payments transactions | 399 | 399 | 399 | ||||||||
| Total transactions with owners of the Company | 0 | 0 | -85 | 449 | 0 | 0 | 0 | 334 | 698 | 0 | 698 |
| 30 June 2017 | 88,812 | 209,902 | 158,451 | -51,787 | -7,933 | 0 | 403 | 11,845 | 409,693 | 191 | 409,884 |
| CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS PER 30 JUNE 2018 | |||||||||||
| Opening equity as previously reported per 1 January 2018 | 88,812 | 209,902 | 218,373 | -48,486 | -5,666 | 0 | 2,901 | 11,571 | 477,407 | 135 | 477,542 |
| Comprehensive result for the period | |||||||||||
| Result for the period | 3,449 | 3,449 | 40 | 3,489 | |||||||
| Foreign currency translation differences | -597 | -597 | -5 | -602 | |||||||
| Foreign currency translation differences - share equity accounted investees | -248 | -248 | -248 | ||||||||
| Net change in fair value of cash flow hedges - hedge accounting | 0 | 0 | 0 | ||||||||
| Net change in fair value of cash flow hedges - hedge accounting - share | |||||||||||
| equity accounted investees | 2,083 | 2,083 | 2,083 | ||||||||
| Total other comprensive result | 0 | 0 | 0 | ||||||||
| Total comprehensive result for the period | 0 | 0 | 3,449 | 0 | -845 | 0 | 2,083 | 0 | 4,687 | 35 | 4,722 |
| Transactions with owners of the Company | |||||||||||
| Dividends paid | 0 | 0 | |||||||||
| Share-based payments | |||||||||||
| - Share options exercised | -265 | 425 | -40 | 120 | 120 | ||||||
| - Share based payments transactions | 347 | 347 | 347 | ||||||||
| Total transactions with owners of the Company | 0 | 0 | -265 | 425 | 0 | 0 | 0 | 307 | 467 | 0 | 467 |
| 221,557 | -48,061 | -6,511 | 0 | 4,984 | 170 | ||||||
| 30 June 2018 | 88,812 | 209,902 | 11,878 | 482,561 | 482,731 |
(*) IAS 23 requires that borrowing costs which are attributable to the construction of vessels are to be capitalized as part of the asset. As a consequence of the nonapplication of IAS 23 in prior periods, the prior period financial statements have been restated. We refer to note 11 of the Annual report 2017 for more information in this respect.
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