Earnings Release • Sep 2, 2016
Earnings Release
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2/09/2016 – 7.00 PM Regulated information
The Board of Directors of EXMAR has approved the accounts for the period ending 30th June 2016. This press release also refers to the one distributed on 28th July 2016 (provisional results).
Key figures
| CONSOLIDATED KEY FIGURES | |||||
|---|---|---|---|---|---|
| International Financial Reporting Standards (IFRS 11) |
Management reporting based on proportional consolidation |
||||
| Consolidated statement of profit or loss | |||||
| (in million USD) | 30/06/2016 | 30/06/2015 | 30/06/2016 | 30/06/2015 | |
| Turnover | 55.2 | 58.9 | 150.7 | 158.0 | |
| EBITDA | 14.6 | -3.5 | 72.3 | 54.8 | |
| Depreciations and impairment losses | -2.3 | -2.5 | -22.1 | -22.0 | |
| Operating result (EBIT) | 12.3 | -6.0 | 50.2 | 32.8 | |
| Net financial result | -1.2 | 6.9 | -19.0 | -9.6 | |
| Share in the result of equity accounted investees | 19.8 | 22.5 | -0.2 | 0.3 | |
| Result before tax | 30.9 | 23.4 | 31.0 | 23.5 | |
| Tax | 0.5 | -1.6 | 0.4 | -1.7 | |
| Consolidated result after tax | 31.4 | 21.8 | 31.4 | 21.8 | |
| of which group share | 31.4 | 21.8 | 31.4 | 21.8 | |
| Informations per share | |||||
| in USD per share | |||||
| Weighted average number of shares of the period | 56,741,655 | 56,775,877 | 56,741,655 | 56,775,877 | |
| EBITDA | 0.257 | -0.062 | 1.274 | 0.965 | |
| EBIT (operating result) | 0.217 | -0.106 | 0.885 | 0.578 | |
| Consolidated result after tax | 0.553 | 0.384 | 0.553 | 0.384 | |
| Informations per share | |||||
| in EUR per share |
| in EUR per share | ||||
|---|---|---|---|---|
| Exchange rate | 1.1106 | 1.1272 | 1.1106 | 1.1272 |
| EBITDA | 0.232 | -0.055 | 1.147 | 0.856 |
| EBIT (operating result) | 0.195 | -0.094 | 0.797 | 0.513 |
| Consolidated result after tax | 0.498 | 0.341 | 0.498 | 0.341 |
Cash Flow from operations (EBITDA) as per proportionate consolidation method for the first semester 2016 was USD 72.3 million (USD 54.8 million for first semester 2015) and the Operating result (EBIT) was USD 50.2 million, (2015 USD 32.8 million) including a USD 14.3 million non cash profit on the acquisition of 50% shares of Wah Kwong in the pressurized fleet
The net result amounts to USD 31.4 million (USD 21.8 million for first semester 2015).
The half year report including a full version of the condensed consolidated interim financial statements for the six months ended 30 June 2016, prepared in accordance with IAS 34 is available on www.exmar.be as from today.
The operating result (EBIT) was USD 24.7 million for the first half 2016 (compared to USD 15.8 million for the first half 2015). This figure includes a payment of part of the termination fee payable by PACIFIC EXPLORATION and PRODUCTION (PEP) as well as costs related to the commissioning of Caribbean FLNG.
All Floating Storage and Regasification Units (FSRU) and LNG carriers (with the exception of the EXCEL) remain committed to long-term charter, and are therefore not directly impacted by the freightrate fluctuations on the worldwide market. EXCEL is currently employed on the spot market and continues to benefit from the minimum revenue undertaking. It is expected however that this minimum revenue undertaking will be fully utilized by the end of the year.
The commissioning of the Caribbean FLNG commenced on 14th June 2016 and is progressing well. Delivery is expected once the unit has been successfully performance-tested at the shipyard. Several employment opportunities for the unit are currently under active discussions.
A termination Fee was agreed with PEP for the cancellation of the Caribbean FLNG tolling agreement, however, under the restructuring procedure of PEP the court has ordered a suspension of the outstanding USD 11.0 million.
The FSRU under construction at Wison is progressing as planned and the unit is expected to be delivered by mid-2017.
Several Joint Development Agreements and Exclusivity Agreements have been signed for the development of the FSRU barge and FSRU Newbuildings around the world.
Final Investment Decision has not yet been declared for the SWAN LNG project in India. Discussions are still ongoing for the leasing of a FSRU.
As announced earlier today, EXMAR and VOPAK are currently discussing the possibility of an acquisition by Vopak of EXMAR's current Floating LNG Regasification business.
The operating result (EBIT) for the first half of 2016 was USD 1.2 million (compared to USD 4.6 million in the first half of 2015).
Exploration activity in deepwater remains low with most drilling activity supporting development of existing fields resulting in few opportunities for new floating production facilities in the near term, however, drilling permits for new exploration wells in the Gulf of Mexico granted since 1 July exceed the total new permits granted for the previous six months. While we expect increased activity in exploration any new projects will be driven by proven low cost solutions and EXMAR's OPTI® production semisubmersible remains high on the list of development options worldwide where EXMAR has been actively engaged by oil companies in the Gulf of Mexico and the Far East.
The accommodation barges WARIBOKO and NUNCE are operating in West Africa under their respective contracts and will be fully employed for the balance of 2016. The contract of the KISSAMA has been extended until end of October with 3 options for an additional 1 month each of employment. KISSAMA has been offered for employment contracts commencing late 2016 early 2017. WARIBOKO has been sold for 60% to our Nigerian partner under a purchase option mechanism at the end of May 2016. This accommodation barge remains employed until the middle of 2017 and is currently being marketed beyond that period in the region.
The engineering services of EXMAR OFFSHORE (Houston) has been negatively impacted by the lack of activity in the market but has been active in the development of the next series of OPTI® production facilities. Most recently, EXMAR OFFSHORE has completed the early design of the OPTI-micro™ which is an even lower cost Floating Production Solution specifically targeted at fields less than 100 million barrels of oil equivalent. Pricing indications for this facility are in-line with expectations to enable the commercial development of these sized fields.
The operating result (EBIT) of the LPG fleet in the first half of 2016 was USD 26.2 million (as compared to USD 13.9 million for the same period in 2015).
| Time-Charter Equivalent (in USD per day) | FirstSemester 2016 |
First Semester 2015 |
|---|---|---|
| Midsize (38,115 m³) | 28,739 | 28,966 |
| VLGC (83,300 m³) | 37,106 | 53,486 |
| Pressurized (3,500 m³) | 5,209 | 5,633 |
| Pressurized (5,000 m³) | 6,771 | 7,886 |
The average Baltic VLGC Freight Index further decreased during the summer months resulting in earnings close to OPEX levels. Still, freight rates have seemingly bottomed out and rumours about potential market consolidation are surfacing.
EXMAR-controlled BW Tokyo (83,000m³) has been redelivered from her Time-Charter but currently remains operating on behalf of the same Charterer on spot basis. Long term opportunities are still being pursued.
Facing more competition from both the smaller and larger segments (Handysize/LGC /VLGC) earnings for spot and short-term commitments for MGC have come under further pressure.
EXMAR's contract portfolio remains healthy for the balance of the year with 81 % employment already secured.
EXMAR's second scrubber-equipped vessel, KONTICH has been delivered to Statoil on 21st August for trading in Northwest Europe to support Statoil's LPG platform on long-term basis.
Overall trading activity in Europe lacked vitality which led to shipping length in the region with small and larger Pressurized units competing for the same cargoes. No fundamental changes were observed in the East with mainly traders influencing the market.
A marked upturn for the 2,500 – 5,000 m³ segment somehow remains remote without either market consolidation taking place and / or elderly tonnage being scrapped. At present EXMAR's fleet is entirely covered on Time-Charter whereas cover for the balance of 2016 stands at 90 %.
EXMAR has reached an agreement with Wah Kwong to acquire their 50% shares in the 10 pressurized vessels jointly owned. This transaction has generated USD 14.3 million of non-cash profit
The contribution of the Services activities (EXMAR SHIPMANAGEMENT, BELGIBO, TRAVEL PLUS) to the operating result (EBIT) for the first half of 2016 was USD 1.5 million (compared to USD 1.7 million in 2015 for the same period).
The contribution of the Holding activities to the operating result (EBIT) for the first half 2016 was USD -3.4 million (compared to USD -3.2 million in 2015).
The Board of Directors approved the distribution of a gross interim dividend of EUR 0.10 per share (EUR 0.070 net per share). The net interim dividend will be payable to the holders of registered shares and to the holders of dematerialized shares (through their financial institution) on 9th September 2016. (ex-date 7th September 2016 – record-date 8th September 2016).
The condensed consolidated interim financial information as of and for the 6-month period ended 30 June 2016 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 Patrick De Brabandere, and the Executive Committee, represented by Nicolas Saverys 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 have 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.
Consolidated statement of financial position
Consolidated statement of profit or loss
| 30 June | 31 December 2015 |
||
|---|---|---|---|
| 2016 | |||
| ASSETS | |||
| NON-CURRENT ASSETS | 790.626 | 684.687 | |
| Vessels | 275.060 | 168.991 | |
| Vessels | 118.500 | 17.194 | |
| Vessels under construction | 156.560 | 151.797 | |
| Other property, plant and equipment | 3.628 | 4.104 | |
| Intangible assets | 1.668 | 2.368 | |
| Investments in equity accounted investees | 167.029 | 132.816 | |
| Borrowings to equity accounted investees | 343.241 | 376.408 | |
| CURRENT ASSETS | 221.551 | 241.425 | |
| Available-for-sale financial assets | 3.049 | 3.487 | |
| Trade receivables and other receivables | 65.755 | 64.669 | |
| Current tax assets | 970 | 968 | |
| Restricted cash | 32.527 | 42.332 | |
| Cash and cash equivalents | 119.250 | 129.969 | |
| TOTAL ASSETS | 1.012.177 | 926.112 | |
| EQUITY AND LIABILITIES | |||
| TOTAL EQUITY | 423.172 | 404.804 | |
| Equity attributable to owners of the Company | 422.961 | 404.614 | |
| Share capital | 88.812 | 88.812 | |
| Share premium | 209.902 | 209.902 | |
| Reserves | 92.829 | 94.689 | |
| Result for the period | 31.418 | 11.211 | |
| Non-controlling interest | 211 | 190 | |
| NON-CURRENT LIABILITIES | 501.667 | 445.621 | |
| Borrowings | 460.380 | 397.425 | |
| Employee benefits | 4.320 | 4.445 | |
| Provisions | 2.405 | 2.522 | |
| Derivative financial instruments | 34.562 | 41.229 | |
| CURRENT LIABILITIES | 87.338 | 75.687 | |
| Borrowings | 26.376 | 15.161 | |
| Trade debts and other payables | 58.222 | 55.815 | |
| Current tax liability | 2.740 | 4.711 | |
| TOTAL EQUITY AND LIABILITIES | 1.012.177 | 926.112 |
| 6 months ended 30 June 2016 |
6 months ended 30 June 2015 |
|
|---|---|---|
| CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS Revenue |
55.240 | 58.932 |
| Capital gain on sale of assets | 601 | 55 |
| Other operating income | 15.146 | 1.425 |
| Operating income | 70.987 | 60.412 |
| Goods and services | -29.172 | -33.887 |
| Personnel expenses | -26.025 | -26.281 |
| Depreciations, amortisations & impairment losses | -2.248 | -2.537 |
| Provisions | 131 | 33 |
| Other operating expenses | -1.379 | -3.117 |
| Capital loss on disposal of assets | 0 | -582 |
| Result from operating activities | 12.294 | -5.959 |
| Interest income | 11.800 | 11.906 |
| Interest expenses | -7.310 | -6.361 |
| Other finance income | 373 | 4.680 |
| Other finance expenses | -6.046 | -3.304 |
| Net finance result Result before income tax and share of result of equity accounted investees |
-1.183 11.111 |
6.921 962 |
| Share of result of equity accounted investees (net of income tax) Result before income tax |
19.843 30.954 |
22.448 23.410 |
| Income tax expense/ income | 482 | -1.620 |
| Result for the period | 31.436 | 21.790 |
| Attributable to: | ||
| Non-controlling interest | 18 | 24 |
| Owners of the Company | 31.418 | 21.766 |
| Result for the period | 31.436 | 21.790 |
| Basic earnings per share (in USD) | 0,55 | 0,38 |
| Diluted earnings per share (in USD) | 0,55 | 0,38 |
| CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ||
| Result for the period | 31.436 | 21.790 |
| Items that are or may be reclassified subsequently to profit or loss: | ||
| Equity accounted investees- share in other comprehensive income | -5.019 | -409 |
| Foreign currency translation differences | 380 | -1.840 |
| Net change in fair value of cash flow hedges - effective portion (hedge accounting) | 672 | -2.338 |
| Net change in fair value of available-for-sale financial assets | -144 | -1.803 |
| Available-for-sale financial assets-reclassified to profit or loss | 3.021 | 0 |
| Total other comprehensive income for the period (net of income tax) | -1.090 | -6.390 |
| Total comprehensive income for the period | 30.346 | 15.400 |
| Total comprehensive income attributable to: | ||
| Non-controlling interest | 21 | 10 |
| Owners of the Company | 30.325 | 15.390 |
| Total comprehensive income for the period | 30.346 | 15.400 |
| 6 months ended 30 June 2016 |
6 months ended 30 June 2015 |
|
|---|---|---|
| OPERATING ACTIVITIES | ||
| Result for the period | 31.436 | 21.790 |
| Share of result of equity accounted investees (net of income tax) | -19.843 | -22.448 |
| Depreciations, amortisations & impairment loss | 2.248 | 2.537 |
| Impairment loss available-for-sale financial assets | 3.306 | 0 |
| Badwill pressurized fleet transaction | -14.343 | 0 |
| Net interest income/expenses | -4.490 | -5.545 |
| Income tax expense | -482 | 1.620 |
| Net gain on sale of assets | -601 | 527 |
| Unrealized exchange differences | -179 | -2.101 |
| Dividend income | -42 | -209 |
| Equity settled share-based payment expenses (option plan) | 782 | 590 |
| Gross cash flow from operating activities | -2.208 | -3.239 |
| Increase/decrease of trade and other receivables | 783 | -2.586 |
| Increase/decrease of trade and other payables | -5.758 | 3.939 |
| Increase/decrease in provisions and employee benefits | -131 | -82 |
| Cash generated from operating activities | -7.314 | -1.968 |
| Interest paid | -6.624 | -5.931 |
| Interest received | 11.467 | 11.957 |
| Income taxes received | 66 -2.405 |
-157 3.901 |
| NET CASH FRO M O PERATING ACTIVITIES | ||
| INVESTING ACTIVITIES | ||
| Acquisition of intangible assets | -192 | -51 |
| Acquisition of operational assets and operational assets under construction | -4.763 | -56.776 |
| Acquisition of other property plant and equipment | -156 | -409 |
| Proceeds from the sale of operational assets and other property, plant and eq | 84 | 180 |
| Change in consolidation scope | -1.884 | 0 |
| Dividends from equity accounted investees | 0 | 45.000 |
| New borrowings to equity accounted investees | -1.245 | -363 |
| Repayments from equity accounted investees | 9.213 | 23.260 |
| NET CASH FRO M INVESTING ACTIVITIES | 1.057 | 10.841 |
| FINANCING ACTIVITIES | ||
| Dividends paid | -12.942 | -19.083 |
| Dividends received | 42 | 209 |
| Acquisition from treasury shares | 0 | -2.659 |
| Proceeds from treasury shares and share options excercised | 139 | 140 |
| Proceeds from new borrowings | 100 | 39.820 |
| Repayment of borrowings | -7.528 | -7.406 |
| Increase/ decrease in restricted cash | 9.805 | -5.163 |
| NET CASH FRO M FINANCING ACTIVITIES | -10.384 | 5.858 |
| NET INCREASE/ DECREASE IN CASH AND CASH EQ UIVALENTS | -11.732 | 20.600 |
| RECONCILIATION OF NET INCREASE/DECREASE IN CASH AND CASH EQUIVALENTS | ||
| Net cash and cash equivalents at 1 January | 129.969 | 88.554 |
| Net increase/decrease in cash and cash equivalents | -11.732 | 20.600 |
| Exchange rate fluctuations on cash and cash equivalents NET CASH AND CASH EQ UIVALENTS AT 30 JUNE |
1.013 119.250 |
-1.327 107.827 |
| Reserve for | Share-based | Non | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Share | Retained | treasury | Translation | Fair value | Hedging | payments | controlling | Total | |||
| Share capital | premium | earnings | shares | reserve | reserve | reserve | reserve | Total | interest | equity | |
| CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS PER 30 JUNE 2016 | |||||||||||
| 1 January 2016 | 88.812 | 209.902 | 167.916 | -54.123 | -10.301 | -3.973 | -3.823 | 10.204 | 404.614 | 190 | 404.804 |
| Comprehensive result for the period | |||||||||||
| Result for the period | 31.418 | 0 | 0 | 0 | 31.418 | 18 | 31.436 | ||||
| Total other comprensive result for the period | 0 | 1.579 | 2.877 | -5.549 | -1.093 | 3 | -1.090 | ||||
| Total comprehensive result for the period | 0 | 0 | 31.418 | 0 | 1.579 | 2.877 | -5.549 | 0 | 30.325 | 21 | 30.346 |
| Transactions with owners of the Company | |||||||||||
| Dividends paid | -12.942 | -12.942 | -12.942 | ||||||||
| Share-based payments | 0 | 0 | |||||||||
| - Share options exercised | -257 | 464 | -25 | 182 | 182 | ||||||
| - Share based payments transactions | 0 | 0 | 782 | 782 | 782 | ||||||
| Total transactions with owners of the Company | 0 | 0 | -13.199 | 464 | 0 | 0 | 0 | 757 | -11.978 | 0 | -11.978 |
| 30 June 2016 | 88.812 | 209.902 | 186.135 | -53.659 | -8.722 | -1.096 | -9.372 | 10.961 | 422.961 | 211 | 423.172 |
| CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS PER 30 JUNE 2015 | |||||||||||
| 1 January 2015 | 88.812 | 209.902 | 184.110 | -53.769 | -8.845 | 881 | -1.329 | 9.825 | 429.587 | 175 | 429.762 |
| Comprehensive result for the period | |||||||||||
| Result for the period | 21.766 | 0 | 0 | 0 | 21.766 | 24 | 21.790 | ||||
| Total other comprensive result for the period | 0 | -2.374 | -1.803 | -2.199 | -6.376 | -14 | -6.390 | ||||
| Total comprehensive result for the period | 0 | 0 | 21.766 | 0 | -2.374 | -1.803 | -2.199 | 0 | 15.390 | 10 | 15.400 |
| Transactions with owners of the Company | |||||||||||
| Dividends paid | -19.083 | -19.083 | -19.083 | ||||||||
| Share-based payments | 0 | 0 | |||||||||
| - Share options exercised | -261 | 460 | -58 | 141 | 141 | ||||||
| - Treasury shares purchased (*) | 35 | -2.660 | 0 | -2.625 | -2.625 | ||||||
| - Share based payments transactions | 0 | 0 | 590 | 590 | 590 | ||||||
| Total transactions with owners of the Company | 0 | 0 | -19.309 | -2.200 | 0 | 0 | 0 | 532 | -20.977 | 0 | -20.977 |
| 30 June 2015 | 88.812 | 209.902 | 186.567 | -55.969 | -11.219 | -922 | -3.528 | 10.357 | 424.000 | 185 | 424.185 |
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