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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%


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%).


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