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
Group Performance Review
| US$ Million | 2016 | 2015 | Change |
| Revenue | 1,087.4 | 1,260.3 | -14% |
| Bunker & port disbursement | (555.1) | (611.5) | +9% |
| Time charter equivalent earnings ("TCE") |
532.3 | 648.8 | -18% |
| Other direct costs | (586.6) | (652.9) | +10% |
| Gross loss | (54.3) | (4.1) | >-100% |
| Dry Bulk | (87.6) | (34.7) | >-100% |
| Towage | (0.1) | 6.2 | >-100% |
| Others | 0.0 | 0.7 | >-100% |
| Underlying loss | (87.7) | (27.8) | >-100% |
| Unrealised derivative income | 23.6 | 8.8 | |
| Sale of properties | 1.7 | - | |
| Vessel impairments | (15.2) | - | |
| Sale of towage assets | (4.9) | 2.8 | |
| Towage exchange charge | (2.8) | (1.5) | |
| Other impairments | (1.2) | (0.8) | |
| Loss attributable to shareholders |
(86.5) | (18.5) | >-100% |
| EBITDA | 22.8 | 93.2 | -76% |
| Net profit margin | (8%) | (1%) | -7% |
| Return on average equity employed |
(9%) | (2%) | -7% |
| +/- Note: In our tabulated figures, positive changes represent an improving result and negative changes represent a worsening result. | |||
EBITDA (earnings before interest, tax, depreciation and amortisation) is our gross profit less general and administration expenses, excluding: depreciation and amortisation; exchange differences; share-based compensation; net unrealised bunker swap contract income and expenses; utilised onerous contract provisions; and net of Charter Hire Reduction adjustments.
The main drivers of our results in 2016 were as follows:
- Revenue decreased by 14% and cost of services reduced
by 9%, mainly due to:
- one of the weakest ever years for the dry bulk market; and
- replacing expiring long-term chartered-in vessels with more lower cost short-term chartered-in vessels.
- Loss attributable to shareholders was mainly affected by:
- an unrealised derivative accounting gain of US$23.6 million mainly from accounting reversal of completed prior year bunker swap contracts;
- gains of US$1.7 million from disposal of all the China properties; offset by
- non-cash impairments of US$15.2 million for the remaining towage vessels and one Supramax vessel that was sold after the year end; and
- losses of US$4.9 million from disposals of towage assets and their related non-cash exchange loss of US$2.8 million. The Group maintains a foreign exchange reserve for the translation of net asset value of the Australian Dollar-denominated subsidiaries to US Dollars. At 31 December 2016, the foreign exchange reserve balance amounted to a charge of US$1.4 million. The release of this reserve to the consolidated income statement will be triggered by the sales of the remaining assets and closing down of the subsidiaries denominated in Australian Dollars.
- EBITDA was US$22.8 million (2015: US$93.2 million) contributing to a positive operating cash flow. Our cash and deposits at the year end stood at US$269.2 million (2015: US$358.4 million) with net gearing of 34% (2015: 35%).
