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Euronav NV — Earnings Release 2018
Mar 23, 2018
3946_ffr_2018-03-23_b5b25969-1e4f-4359-b753-b6e45dd849ac.zip
Earnings Release
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6-K 1 d7850160_6-k.htm Licensed to: Seward & Kissel LLP Document created using EDGARfilings PROfile 4.3.3.3 Copyright 1995 - 2018 Broadridge
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2018
Commission File Number: 001-36810
EURONAV NV
De Gerlachekaai 20
2000 Antwerpen
Belgium
011-32-3-247-4411
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ].
Note : Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ].
Note : Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Attached hereto as Exhibit 99.1 is a copy of the press release of Euronav NV (the "Company"), dated March 21, 2018, announcing the Company's financial results for the fourth quarter and full year ended December 31, 2017.
The information contained in this Report on Form 6-K, except for the commentary of the Company's Chief Executive Officer contained in Exhibit 99.1, is hereby incorporated by reference into the Company's registration statement on Form F-3 (File No. 333-210849) that was filed with the U.S. Securities and Exchange Commission effective April 21, 2016.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| (Registrant) | |
| Dated: March 23, 2018 | |
| By: | /s/ Hugo De Stoop |
| Hugo De Stoop | |
| Chief Financial Officer |
EXHIBIT 99.1
PRESS RELEASE Regulated information Wednesday 21 March – 8 a.m. CET _________
EURONAV ANNOUNCES FINAL YEAR RESULTS 2017
HIGHLIGHTS
· Challenging freight market driven by ship oversupply & OPEC restrictions
· Medium term drivers for tanker market remain positive
· Established returns to shareholder policy with minimum USD 0.12 per annum
· Balance sheet strength retained with substantial liquidity to navigate the cycle
· Proposed merger with Gener8 Maritime creates leading independent crude tanker company with 75 tankers - scheduled to close Q2 2018
ANTWERP, Belgium, 21 March 2018 – Euronav NV (NYSE: EURN & Euronext: EURN ) ("Euronav" or the "Company") today reported its final financial results for the full year to 31 December 2017.
Paddy Rodgers, CEO of Euronav said: "From an operational perspective, 2017 was a challenging year for Euronav. The concentrated delivery schedule of new tonnage coupled with restricted crude supply from extended OPEC production cuts maintained freight rates at low levels throughout the year. Despite these headwinds, demand for oil continued to remain robust and above long-term trend boosted by rising global economic growth and a supportive oil price structure.
Elsewhere, we were active with the confirmation of a five-year FSO contract extension and additional two seven-year time charters (four in total), providing Euronav with additional fixed income profile; a strength reflected in an upgraded return to shareholders policy to a minimum fixed annual dividend of USD 0.12 per share. Our balance sheet was further enhanced with a USD 150 million unsecured bond offering during May and augmented further with sales of older tonnage in the fourth quarter.
However, the key challenge for the tanker market remains the concentration of deliveries of newbuildings in both the VLCC and Suezmax sectors. If the illness is low freight rates then the cure is low freight rates as that should drive more ships to be removed from the active global fleet. Euronav notes an encouraging recent rise in recycling activity but it needs to be sustained before an inflection point in the cycle can be reached.
A dynamic year for Euronav culminated in the proposed merger with Gener8 Maritime. The merger will create the leading independent large crude tanker operator with 75 crude tankers representing over 18 million dwt and balance sheet assets of over USD 4 billion. The combined entity retains Euronav's capital discipline with leverage of less than 50% and a liquidity position estimated at more than USD 750 million.
Medium- and longer-term prospects for the tanker market remain constructive, underpinned by a solid recurring demand for crude, structural change in financing likely to constrain future vessel supply growth and a likely acceleration in the retirement of older ships from 2017 onward encouraged by environmental legislation on ballast water treatment and particularly from sulfur emissions in 2020.
PRESS RELEASE Regulated information Wednesday 21 March – 8 a.m. CET _________
| (in thousands of USD) | Fourth Quarter 2017 | Fourth Quarter 2016 | Full Year 2017 | Full Year 2016 |
|---|---|---|---|---|
| Revenue | 117,978 | 146,280 | 513,368 | 684,265 |
| Other operating income | 1,020 | 1,463 | 4,902 | 6,996 |
| Voyage expenses and commissions | (14,257) | (16,480) | (62,035) | (59,560) |
| Vessel operating expenses | (33,952) | (37,361) | (150,427) | (160,199) |
| Charter hire expenses | (7,844) | (2,920) | (31,173) | (17,713) |
| General and administrative expenses | (13,736) | (11,418) | (46,868) | (44,051) |
| Net gain (loss) on disposal of tangible assets | 36,518 | 36,576 | 15,511 | 50,395 |
| Net gain (loss) on disposal of investments in equity accounted investees | − | − | − | (24,150) |
| Depreciation | (56,427) | (59,180) | (229,872) | (227,763) |
| Net finance expenses | (12,059) | (16,086) | (43,463) | (44,840) |
| Share of profit (loss) of equity accounted investees | 2,053 | 8,938 | 30,082 | 40,495 |
| Result before taxation | 19,294 | 49,812 | 25 | 203,875 |
| Tax benefit (expense) | 61 | 475 | 1,358 | 174 |
| Profit (loss) for the period | 19,355 | 50,287 | 1,383 | 204,049 |
| Attributable to: Owners of the company | 19,355 | 50,287 | 1,383 | 204,049 |
| The contribution to the result is as follows: | ||||
| (in thousands of USD) | Fourth Quarter 2017 | Fourth Quarter 2016 | Full Year 2017 | Full Year 2016 |
| Tankers | 17,499 | 41,920 | (28,485) | 169,614 |
| FSO | 1,856 | 8,367 | 29,868 | 34,435 |
| Result after taxation | 19,355 | 50,287 | 1,383 | 204,049 |
| Information per share: | ||||
| (in USD per share) | Fourth Quarter 2017 | Fourth Quarter 2016 | Full Year 2017 | Full Year 2016 |
| Weighted average number of shares (basic) * | 158,166,534 | 158,166,534 | 158,166,534 | 158,262,268 |
| Result after taxation | 0.12 | 0.32 | 0.01 | 1.29 |
| * The number of shares issued on 31 December 2017 is 159,208,949. |
The duration of the current challenging freight rate environment will be entirely dependent on the number of additional removals of older ships that are not needed by the market and the number of newbuildings added to the current order book. Until this inflection point is reached, Euronav retains substantial balance sheet capacity and fixed income visibility to navigate through such a period of lower freight rates and/or to take advantage of expansion opportunities."
PRESS RELEASE Regulated information Wednesday 21 March – 8 a.m. CET _________
| (in thousands of USD) | Fourth Quarter 2017 | Fourth Quarter 2016 | Full Year 2017 | Full Year 2016 |
|---|---|---|---|---|
| Profit (loss) for the period | 19,355 | 50,287 | 1,383 | 204,049 |
| + Depreciation | 56,427 | 59,180 | 229,872 | 227,763 |
| + Net finance expenses | 12,059 | 16,086 | 43,463 | 44,840 |
| + Tax expense (benefit) | (61) | (475) | (1,358) | (174) |
| EBITDA | 87,780 | 125,078 | 273,360 | 476,478 |
| + Depreciation equity accounted investees | 4,555 | 4,776 | 18,071 | 23,774 |
| + Net finance expenses equity accounted investees | (14) | 521 | 829 | 3,212 |
| + Tax expense (benefit) equity accounted investees | 3,365 | 99 | 1,488 | 215 |
| Proportionate EBITDA | 95,686 | 130,474 | 293,748 | 503,679 |
| Proportionate EBITDA per share: | ||||
| (in USD per share) | Fourth Quarter 2017 | Fourth Quarter 2016 | Full Year 2017 | Full Year 2016 |
| Weighted average number of shares (basic) | 158,166,534 | 158,166,534 | 158,166,534 | 158,262,268 |
| Proportionate EBITDA | 0.60 | 0.82 | 1.86 | 3.18 |
| All figures have been prepared under IFRS as adopted by the EU (International Financial Reporting Standards). |
Procedures of the independent auditor:
The statutory auditor, KPMG Bedrijfsrevisoren - Réviseurs d'Entreprises, represented by Götwin Jackers, has confirmed that the audit procedures, which have been substantially completed, have not revealed any material misstatement in the accounting information included in the Company's annual announcement.
PRESS RELEASE Regulated information Wednesday 21 March – 8 a.m. CET _________
PROPOSED MERGER BETWEEN EURONAV AND GENER8 MARITIME
On 21 December 2017 the boards of Euronav and Gener8 Maritime announced agreement on a stock-for-stock merger for the entire issued and outstanding share capital of Gener8 pursuant to which Gener8 would become a wholly-owned subsidiary of Euronav (the "Combined Entity"). The merger will create the leading independent large crude tanker operator with 75 crude tankers, of which 44 VLCCs and 28 Suezmax crude tankers representing over 18 million dwt in the aggregate.
The Combined Entity balance sheet assets of over USD 4 billion will have marked-to-market leverage of less than 50% and a liquidity position estimated at more than USD 750 million, including cash on hand and undrawn amounts available under existing credit facilities.
Work on the transaction is proceeding as planned with an anticipated closing in the second quarter of 2018. Full details on the proposed transaction can be found on our website: www.euronav.com.
2017 Dividend
A full year gross dividend of USD 0.12 per share has been recommended by management and proposed by the Board of Directors for approval at the AGM on 9 May 2018. Taking into account the interim dividend paid as of 5 October 2017, and subject to shareholders' approval, a final dividend of USD 0.06 per share will be paid after the Annual General Meeting of Shareholders.
In August 2017 we announced an upgraded new return to shareholders policy. Going forward Euronav intends to (1) pay a fixed minimum dividend of USD 0.12 per share every year (equivalent of USD 0.06 for each half year) and; (2) if the results per share are positive and exceed the amount of the fixed dividend, that additional income, as adjusted for exceptional gains (excluded) and losses (included), will be allocated to additional dividends, debt repayment or buying back shares or, of course, accretive vessel or fleet acquisitions, as the Board at that time deems most valuable for the shareholders in the long term.
PRESS RELEASE Regulated information Wednesday 21 March – 8 a.m. CET _________
Highlights 2017
January
On January 12 and 20, 2017 Euronav took delivery of two VLCCs (acquired as resales of contract), the Ardeche (2017 – 298,642 dwt) and the Aquitaine (2017 – 298,767 dwt), from Hyundai Heavy Industries - Samho yard, South Korea.
April
On April 20, 2017 Euronav signed an additional two long-term time charter contracts of seven years each with Valero Energy, Inc. for Suezmax vessels with specialized Ice Class 1C capability starting in late 2018. This brings to four the number of long-term (seven years) Suezmax time charter contracts the Company has within its portfolio. In order to fulfil these contracts, Euronav ordered an additional two high specification Ice Class Suezmax vessels from Hyundai Heavy Industries shipyard in South Korea.
On April 25, 2017, Euronav signed a 12-year USD 110 million Export Credit Agency (ECA) financing with commercial banks and Ksure for the financing of the two VLCC newbuildings the Aquitaine (2017 – 298,767 dwt) and the Ardeche (2017 – 298,642 dwt) the Company took delivery of in January.
May
On May 11, 2017 the General Meeting of Shareholders approved the annual accounts for the year ended December 31, 2016, as well as a gross dividend of USD 0.22 per share.
On May 14, 2017 Euronav and its joint venture partner, International Seaways, signed a contract for five years for the FSO Africa (2002 – 442,000 dwt) and FSO Asia (2002 – 442,000 dwt) in direct continuation of the current contractual service. The contract was signed with North Oil Company, the new operator of the Al Shaheen oil field, whose shareholders are Qatar Petroleum Oil & Gas Limited and Total E&P Golfe Limited.
On May 16, 2017 Euronav Luxembourg SA, a wholly owned subsidiary of the Euronav group, announced the successful launch of a USD 150 million unsecured bond with a coupon of 7.50% and maturity in May 2022. This was Euronav's first entry into the debt capital markets.
June
On June 1, 2017 Euronav announced the sale of the VLCC TI Topaz (2002 – 319,430 dwt) for USD 21 million recording a loss of USD 21 million. The TI Topaz joined the Euronav fleet in the first quarter of 2005 and contributed positively over the years to the results of Euronav, especially during strong freight rate years such as 2005, 2006, 2008, 2010, 2015 and 2016.
PRESS RELEASE Regulated information Wednesday 21 March – 8 a.m. CET _________
In June, 2017 the Company started a treasury note program (Commercial Paper) and placed approximately EUR 50 million in the market for various short-term maturities at a pricing of 60 bps over Euribor. This was not additional debt but rather an opportunity to decrease the cost of borrowing by systematically using the proceeds to repay part of the Company's revolving loan facilities.
August
On August 23, 2017, Euronav received a transparency notification, dated August 22, 2017, pursuant to which M&G Investment Management Limited, following the acquisition of voting securities or voting rights on August 21, 2017 held 5.04% of the voting rights in the Company and thus crossed the 5% threshold.
September
On September 8, 2017 the Global Maritime Forum of which Euronav is a founding partner was launched. The Global Maritime Forum is a global platform for high-level leaders from the entire maritime spectrum and aims to effect positive long-term change for the industry and for society.
October
Euronav paid an interim dividend of USD 0.06 per share for the first half of 2017. This was the first payment under the new dividend policy as announced on August 10, 2017. The dividend was payable as from October 5, 2017.
On October 23, 2017 the USD 150 million senior unsecured bonds issued by Euronav Luxembourg SA and guaranteed by Euronav NV were admitted to listing on the Oslo Stock Exchange.
November
On November 8, 2017 the Company received a transparency notification from Châteauban SA, a holding company part of the CLdN-Cobelfret group whose main activities are in bulk shipments, ro-ro shipments and port companies. Following the acquisition of voting securities or voting rights on November 7, 2017, Châteauban SA held 5.15% of the voting rights in the Company and thus crossed the 5% threshold.
On November 10, 2017 Euronav sold the VLCC Flandre (2004 – 305,688 dwt) for USD 45 million to a global supplier and operator of offshore floating platforms. A gain of USD 20 million on the sale was recorded. The vessel was delivered in December 2017 for conversion into an FPSO by her new owner and would therefore leave the worldwide VLCC trading fleet.
PRESS RELEASE Regulated information Wednesday 21 March – 8 a.m. CET _________
On November 16, 2017 the Suezmax Cap Georges (1998 – 146,652 dwt) was sold to its new owners. The vessel was sold for USD 9 million and was delivered on November 29, 2017. The Company recorded a gain of USD 9 million. The sale of the Cap Georges came in anticipation of the delivery of the first of four Suezmax vessels early in 2018 currently under construction at the Hyundai yard in South Korea (HHI). Those vessels are part of a seven-year contract for four vessels with a leading global refinery player.
On November 17, 2017 Euronav sold the VLCC Artois (2001 – 298,330 dwt) for USD 22 million. The Artois was the oldest vessel in the Company's VLCC fleet. The Company recorded a gain of USD 8 million on the sale. The vessel was delivered to its new owners in early December.
December
On December 21, 2017 Euronav and Gener8 Maritime, Inc. (NYSE: GNRT) ("Gener8")announced that they reached an agreement on a stock-for-stock merger for the entire issued and outstanding share capital of Gener8 pursuant to which Gener8 would become a wholly-owned subsidiary of Euronav.
Events occurred after the end of the financial year ending 31 December 2017
On January 23, 2018 Euronav was included in the Bloomberg Gender-Equality Index ("GEI"). The reference index measures gender equality across internal company statistics, employee policies, external community support and engagement, and gender-conscious product offerings. Euronav is the first Belgian HQ Company and only transportation or shipping company in the index.
On February 1, 2018 the Company received a transparency notification from Châteauban SA, a holding company part of the CLdN-Cobelfret group whose main activities are in bulk shipments, ro-ro shipments and port companies. Following the acquisition of voting securities or voting rights on January 31, 2018, Châteauban SA held 10% of the voting rights in the Company.
PRESS RELEASE Regulated information Wednesday 21 March – 8 a.m. CET _________
Financial calendar 2018
Tuesday 3 April 2018 (or before)
Annual report 2017 available on website
Wednesday 25 April 2018
Announcement of first quarter results 2018
Wednesday 9 May 2018
Annual General Meeting of Shareholders 2018
Thursday 9 August 2018
Announcement of final half year results 2018
Thursday 16 August 2018
Half year report 2018 available on website
Tuesday 30 October 2018
Announcement of third quarter results 2018
Thursday 24 January 2019
Announcement of fourth quarter results 2018
The Board of Directors, represented by Carl Steen, its Chairman, and the Executive Committee, represented by Paddy Rodgers, Chief Executive Officer, and Hugo De Stoop, Chief Financial Officer, hereby confirm, in the name and for account of Euronav that, to the best of their knowledge the consolidated financial statements as of and for the year ended 31 December 2017 presented herein were established in accordance with applicable accounting standards (IFRS as adopted by the EU) and give a true and fair view, as defined by these standards, of the assets, liabilities, financial position and results of Euronav NV.
On behalf of the Board of Directors:
| Paddy Rodgers | Carl Steen |
|---|---|
| Chief Executive Officer | Chairman of the Board of Directors |
PRESS RELEASE Regulated information Wednesday 21 March – 8 a.m. CET _________
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe", "anticipate", "intends", "estimate", "forecast", "project", "plan", "potential", "may", "should", "expect", "pending" and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of counterparties to fully perform their contracts with us, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for tanker vessel capacity, changes in our operating expenses, including bunker prices, dry-docking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see our filings with the United States Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.
PRESS RELEASE Regulated information Wednesday 21 March – 8 a.m. CET _________
*
- *
Contact:
Mr. Brian Gallagher – Euronav Investor Relations
Tel: +44 20 7870 0436
Email: [email protected]
Annual report 2017 available on website: Tuesday, 3 April 2018
About Euronav
Euronav is an independent tanker company engaged in the ocean transportation and storage of crude oil. The Company is headquartered in Antwerp, Belgium, and has offices throughout Europe and Asia. Euronav is listed on Euronext Brussels and on the NYSE under the symbol EURN. Euronav employs its fleet both on the spot and period market. VLCCs on the spot market are traded in the Tankers International pool of which Euronav is one of the major partners. Euronav's owned and operated fleet consists of 53 double hulled vessels being 1 V-Plus vessel, 28 VLCCs, 18 Suezmaxes, four Suezmaxes under construction and two FSO vessels (both owned in 50%-50% joint venture). The Company's vessels mainly fly Belgian, Greek, French and Marshall Island flags.
Regulated information within the meaning of the Royal Decree of 14 November 2007.
Consolidated statement of financial position
(in thousands of USD)
| December 31, 2017 | December 31, 2016 | |
|---|---|---|
| ASSETS | ||
| Non-current assets | ||
| Vessels | 2,271,500 | 2,383,163 |
| Assets under construction | 63,668 | 86,136 |
| Other tangible assets | 1,663 | 777 |
| Intangible assets | 72 | 156 |
| Receivables | 160,352 | 183,914 |
| Investments in equity accounted investees | 30,595 | 18,413 |
| Deferred tax assets | 2,487 | 964 |
| Total non-current assets | 2,530,337 | 2,673,523 |
| Current assets | ||
| Trade and other receivables | 136,797 | 166,342 |
| Current tax assets | 191 | 357 |
| Cash and cash equivalents | 143,648 | 206,689 |
| Total current assets | 280,636 | 373,388 |
| TOTAL ASSETS | 2,810,973 | 3,046,911 |
| EQUITY and LIABILITIES | ||
| Equity | ||
| Share capital | 173,046 | 173,046 |
| Share premium | 1,215,227 | 1,215,227 |
| Translation reserve | 568 | 120 |
| Treasury shares | (16,102) | (16,102) |
| Retained earnings | 473,622 | 515,665 |
| Equity attributable to owners of the Company | 1,846,361 | 1,887,956 |
| Non-current liabilities | ||
| Bank loans | 653,730 | 966,443 |
| Other notes | 147,619 | − |
| Other payables | 539 | 533 |
| Employee benefits | 3,984 | 2,846 |
| Provisions | − | 38 |
| Total non-current liabilities | 805,872 | 969,860 |
| Current liabilities | ||
| Trade and other payables | 61,355 | 69,859 |
| Current tax liabilities | 11 | − |
| Bank loans | 47,361 | 119,119 |
| Other borrowings | 50,010 | − |
| Provisions | 3 | 117 |
| Total current liabilities | 158,740 | 189,095 |
| TOTAL EQUITY and LIABILITIES | 2,810,973 | 3,046,911 |
Consolidated statement of profit or loss
(in thousands of USD except per share amounts)
| 2017 | 2016 | |
|---|---|---|
| Jan. 1 - Dec 31, 2017 | Jan. 1 - Dec 31, 2016 | |
| Shipping income | ||
| Revenue | 513,368 | 684,265 |
| Gains on disposal of vessels/other tangible assets | 36,538 | 50,397 |
| Other operating income | 4,902 | 6,996 |
| Total shipping income | 554,808 | 741,658 |
| Operating expenses | ||
| Voyage expenses and commissions | (62,035) | (59,560) |
| Vessel operating expenses | (150,427) | (160,199) |
| Charter hire expenses | (31,173) | (17,713) |
| Loss on disposal of vessels/other tangible assets | (21,027) | (2) |
| Loss on disposal of investments in equity accounted investees | − | (24,150) |
| Depreciation tangible assets | (229,777) | (227,664) |
| Depreciation intangible assets | (95) | (99) |
| General and administrative expenses | (46,868) | (44,051) |
| Total operating expenses | (541,402) | (533,438) |
| RESULT FROM OPERATING ACTIVITIES | 13,406 | 208,220 |
| Finance income | 7,266 | 6,855 |
| Finance expenses | (50,729) | (51,695) |
| Net finance expenses | (43,463) | (44,840) |
| Share of profit(loss) of equity accounted investees (net of income tax) | 30,082 | 40,495 |
| PROFIT (LOSS) BEFORE INCOME TAX | 25 | 203,875 |
| Income tax benefit (expense) | 1,358 | 174 |
| PROFIT (LOSS) FOR THE PERIOD | 1,383 | 204,049 |
| Attributable to: | ||
| Owners of the company | 1,383 | 204,049 |
| Basic earnings per share | 0.01 | 1.29 |
| Diluted earnings per share | 0.01 | 1.29 |
| Weighted average number of shares (basic) | 158,166,534 | 158,262,268 |
| Weighted average number of shares (diluted) | 158,297,057 | 158,429,057 |
Consolidated statement of comprehensive income
(in thousands of USD)
| 2017 | 2016 | |
|---|---|---|
| Jan. 1 - Dec 31, 2017 | Jan. 1 - Dec 31, 2016 | |
| Profit/(loss) for the period | 1,383 | 204,049 |
| Other comprehensive income, net of tax | ||
| Items that will never be reclassified to profit or loss: | ||
| Remeasurements of the defined benefit liability (asset) | 64 | (646) |
| Items that are or may be reclassified to profit or loss: | ||
| Foreign currency translation differences | 448 | 170 |
| Equity-accounted investees - share of other comprehensive income | 483 | 1,224 |
| Other comprehensive income, net of tax | 995 | 748 |
| Total comprehensive income for the period | 2,378 | 204,797 |
| Attributable to: | ||
| Owners of the company | 2,378 | 204,797 |
Consolidated statement of changes in equity
(in thousands of USD)
| Share capital | Share premium | Translation reserve | Treasury shares | Retained earnings | Capital and reserves | Total equity | |
|---|---|---|---|---|---|---|---|
| Balance at January 1, 2016 | 173,046 | 1,215,227 | (50) | (12,283) | 529,809 | 1,905,749 | 1,905,749 |
| Profit (loss) for the period | − | − | − | − | 204,049 | 204,049 | 204,049 |
| Total other comprehensive income | − | − | 170 | − | 578 | 748 | 748 |
| Total comprehensive income | − | − | 170 | − | 204,627 | 204,797 | 204,797 |
| Transactions with owners of the company | |||||||
| Dividends to equity holders | − | − | − | − | (216,838) | (216,838) | (216,838) |
| Treasury shares acquired | − | − | − | (6,889) | − | (6,889) | (6,889) |
| Treasury shares sold | − | − | − | 3,070 | (2,339) | 731 | 731 |
| Equity-settled share-based payment | − | − | − | − | 406 | 406 | 406 |
| Total transactions with owners | − | − | − | (3,819) | (218,771) | (222,590) | (222,590) |
| Balance at December 31, 2016 | 173,046 | 1,215,227 | 120 | (16,102) | 515,665 | 1,887,956 | 1,887,956 |
| Share capital | Share premium | Translation reserve | Treasury shares | Retained earnings | Capital and reserves | Total equity | |
| Balance at January 1, 2017 | 173,046 | 1,215,227 | 120 | (16,102) | 515,665 | 1,887,956 | 1,887,956 |
| Profit (loss) for the period | − | − | − | − | 1,383 | 1,383 | 1,383 |
| Total other comprehensive income | − | − | 448 | − | 547 | 995 | 995 |
| Total comprehensive income | − | − | 448 | − | 1,930 | 2,378 | 2,378 |
| Transactions with owners of the company | |||||||
| Dividends to equity holders | − | − | − | − | (44,286) | (44,286) | (44,286) |
| Equity-settled share-based payment | − | − | − | − | 313 | 313 | 313 |
| Total transactions with owners | − | − | − | − | (43,973) | (43,973) | (43,973) |
| Balance at December 31, 2017 | 173,046 | 1,215,227 | 568 | (16,102) | 473,622 | 1,846,361 | 1,846,361 |
Consolidated statement of cash flows
(in thousands of USD)
| Jan. 1 - Dec 31, 2017 | 2016 — Jan. 1 - Dec 31, 2016 | |
|---|---|---|
| Cash flows from operating activities | ||
| Profit (loss) for the period | 1,383 | 204,049 |
| Adjustments for: | 225,527 | 205,457 |
| Depreciation of tangible assets | 229,777 | 227,664 |
| Depreciation of intangible assets | 95 | 99 |
| Loss (gain) on disposal of investments in equity accounted investees | − | 24,150 |
| Provisions | (160) | (603) |
| Tax (benefits)/expenses | (1,358) | (174) |
| Share of profit of equity-accounted investees, net of tax | (30,082) | (40,495) |
| Net finance expense | 43,463 | 44,839 |
| (Gain)/loss on disposal of assets | (15,511) | (50,395) |
| Equity-settled share-based payment transactions | 313 | 406 |
| Amortization of deferred capital gain | (1,010) | (34) |
| Changes in working capital requirements | 22,083 | 38,487 |
| Change in cash guarantees | (52) | 107 |
| Change in trade receivables | 5,938 | (755) |
| Change in accrued income | (1,499) | 21,049 |
| Change in deferred charges | (3,648) | 239 |
| Change in other receivables | 28,773 | 35,905 |
| Change in trade payables | 1,165 | (6,817) |
| Change in accrued payroll | 1,014 | (138) |
| Change in accrued expenses | (6,727) | (7,547) |
| Change in deferred income | (3,726) | (3,591) |
| Change in other payables | 18 | (226) |
| Change in provisions for employee benefits | 827 | 261 |
| Income taxes paid during the period | 11 | (100) |
| Interest paid | (39,595) | (33,378) |
| Interest received | 636 | 209 |
| Dividends received from equity-accounted investees | 1,250 | 23,478 |
| Net cash from (used in) operating activities | 211,295 | 438,202 |
| Acquisition of vessels | (176,687) | (342,502) |
| Proceeds from the sale of vessels | 96,880 | 223,016 |
| Acquisition of other tangible assets | (1,203) | (178) |
| Acquisition of intangible assets | (11) | (18) |
| Proceeds from the sale of other (in)tangible assets | 29 | 38 |
| Loans from (to) related parties | 40,750 | 22,047 |
| Proceeds from capital decreases in joint ventures | − | 3,737 |
| Acquisition of subsidiaries, net of cash acquired | − | (6,755) |
| Net cash from (used in) investing activities | (40,242) | (100,615) |
| (Purchase of) Proceeds from sale of treasury shares | − | (6,157) |
| Proceeds from new borrowings | 526,024 | 740,286 |
| Repayment of borrowings | (710,993) | (774,015) |
| Transaction costs related to issue of loans and borrowings | (5,874) | (4,436) |
| Dividends paid | (44,133) | (216,838) |
| Net cash from (used in) financing activities | (234,976) | (261,160) |
| Net increase (decrease) in cash and cash equivalents | (63,923) | 76,427 |
| Net cash and cash equivalents at the beginning of the period | 206,689 | 131,663 |
| Effect of changes in exchange rates | 882 | (1,401) |
| Net cash and cash equivalents at the end of the period | 143,648 | 206,689 |