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%).