Annual Report -
- Group Performance Review
- Consolidated Balance Sheet
- Consolidated Income Statement
- Consolidated Statement of Comprehensive Income
- Consolidated Statement of Changes in Equity
- Consolidated Cash Flow Statement
- Notes to the Financial Statements
- Independent Auditor' s Report
- Group Financial Summary
- Corporate Information
Key Performance Indicators
Group KPIs
Dry Bulk KPIs
Profitability
- We generated Handysize daily earnings of US$6,630 with daily costs of US$7,320 on 47,590 revenue days. Our Handysize earnings were under pressure in the historically weak market resulting in a negative Handysize contribution despite our strong premium.
- Our Supramax business generated a smaller loss than Handysize, benefitting in the weak market from its larger proportion of short-term inward chartered ships.
As part of our business model, we charter in vessels for short periods for combination with cargoes with the aim of making a margin irrespective of whether the market is high or low. In low markets as in 2016, these short-term positions generally lower our reported TCE earnings while in fact making a valuable positive contribution. If we exclude the vessel days attributable to these short-term operated ships and factor their positive margin into the TCE results of our core owned and long-term fleet, then our restated 2016 Handysize and Supramax daily earnings would improve to US$6,720 on 41,220 days and US$7,940 on 14,230 days respectively.
- We operated an average of 130 Handysize and 81 Supramax ships resulting in an 8% reduction and 27% increase in our Handysize and Supramax revenue days respectively.
- Our Handysize capacity has reduced as we redelivered expiring medium and long-term chartered vessels to gradually lower our charter-in costs, relying instead on our growing fleet of owned ships and low-cost shorter-term and index-linked charters.
Future Earnings and Cargo Cover
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We have covered 44% and 71% of our 39,950 Handysize and 15,970 Supramax revenue days currently contracted for
2017 at US$8,200 and US$8,680 per day net respectively.
(Cargo cover excludes revenue days related to inward-chartered vessels on variable, index-linked rates) - While ship operators such as ourselves typically face significant exposure to the spot market, our contract cover provides a degree of earnings visibility.
Corporate Social Responsibility KPIsHealth & Safety Performance in 2016We have steadily reduced our Total Recordable Case Frequency by an average of 6% per year since 2004. In 2016, we recorded near record low total injuries and injury frequency on our ships, most arising from relatively minor slips, trips and falls. Our total recordable case frequency (TRCF) reduced 18% to 1.32 in 2016, and we have steadily reduced our TRCF by an average of 6% per year since 2004. Our lost time injuries frequency (LTIF) improved marginally year on year, having registered 15 such injuries in 2016. Our aim is to substantially eliminate our personal injury incidents and to improve on our best ever LTIF result of 0.85. Our safety performance is driven by effective policies and procedures in our Pacific Basin Management System and a comprehensive programme of seafarer training and development at sea and ashore. We have responded by reinforcing our established safety programme with a campaign to target “Zero Lost Time Injuries” which includes enhanced pre-joining and on-board training, and monthly alerts to the fleet with reminders of injuries sustained on our ships. Our “Make Complacency History” campaign now reaches out to our seafarers’ families for a more holistic and effective approach. Very sadly, one of our deck cadets died in February 2016 from a fall overboard while assisting with the lashing of deck cargo in the port of Tauranga. The main lesson learned from this fatal accident was that crew must attach their safety harness to a fall arrestor while working close to the edge of the cargo stack in accordance with our company requirement to do so. The lessons were well noted and steps were taken to mitigate the risk of a repeat of such accident and to ensure that the Company’s Safety Management System and our safe working procedures are strictly adhered to on all our vessels. In its report on the accident, the Transport Accident Investigation Commission of New Zealand (TAIC) endorsed our follow-up safety actions which they said negated their need to make any recommendations. We sincerely regret and were deeply saddened by the accident, and our thoughts continue to be with the family of the deceased cadet. |
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We aim to achieve an inspection deficiency rate of less than 1.0 by maintaining our ships to a high standard, as assessed by external Port State Control (PSC) inspections. In 2016, our average deficiencies per inspection improved by 19% to 0.74. 72% of our Port State Control inspections found zero regulatory deficiencies (2015:70%) These results are among the best in the industry, especially considering the scale of our activity in the Far East where defects are typically raised in larger numbers. |
CO2 Emissions Performance in 2016
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Due to the above technological and operational measures and the overall efficiency of our large, modern fleet, our carbon intensity remains among the lowest in our segment.
Our aim is to maximise cargo carried
per tonne of energy consumed.
Our fleet’s carbon emissions in 2016
increased 3% to 11.02 grams of CO2
per tonne-mile, as calculated using
the industry-standard ship Energy
Efficiency Operational Indicator (EEOI)
method. The increase was due to our
faster average operating speeds as
optimised by our proprietary Right
Speed Programme based on prevailing freight rates and fuel prices.
The
increase was positively partly offset by
the increased efficiency of our fleet as
our newbuilding programme delivers.
We continued to apply technologies
and practices that we implemented
in earlier years to minimise our fuel
consumption and emissions, and
benefitted from the delivery into our
fleet of new ships of efficient design.
In 2016, we added six modern ships to
our fleet on the water, and the average
age of our owned ships was 8.5 years
as at 31 December 2016. Four more
have delivered in early 2017 and
three further ships remain contracted
to deliver into our owned fleet by
mid-2017 – all efficient and of the best
design for our trades. |
Marine Discharge, Pollution and Waste Performance in 2016We aim to not have any pollution incidents. In 31,700 ship days in 2016, our owned fleet committed no marine pollution violations (2015: no pollution violations). This MARPOL performance is indicative of the effectiveness of our Pacific Basin Management System and the high standard of professionalism of our seafarers. |
Investor Relations KPIs
KPIs MEASURING INVESTOR RELATIONS PERFORMANCE
Investor Engagement – Our share capital is held by a diverse range of institutional, private and corporate investors, so we consider it important to make ourselves accessible to a wide spectrum of shareholders and members of the investment community to enhance their understanding of our business. The number of investor contacts during a year is the key measure of our engagement with investors.
Sell-Side Analyst Engagement – Analyst coverage (as measured by the number of active research reports covering Pacific Basin) in the period is a key measure of our profile in the shipping sector.
Investor Perception Studies – We gauge feedback on our Annual Report, Investor Relations programme, corporate governance and group strategy through an annual written, online and verbal investor study.
Our 2016 Investor Perception Study shows that 87% of respondents consider Pacific Basin management to be good at articulating strategy, and 92% say we have a very high transparency in our disclosures.
Number of Investors We Met
11 analysts covered Pacific Basin in 2016 (2015: 13)
42 research reports on Pacific Basin in 2016 (2015: 84)
2016 Investor Perception Feedback
Compelling Factors for Investing in Pacific Basin
