First Quarter 2013 Financial Statements Announcement
Financials Archive
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Income Statement
Statement of Comprehensive Income
Balance Sheet
Review of Group Performance
Q1 2013 versus Q1 2012
Revenue
External revenue increased by US$14.6 million contributed primarily by the shipbuilding, chartering and subsea services segment partially offset by the leasing and geophysical segment.
Shipbuilding, ship repair and conversion - The external revenue for the segment increased US$6.9 million primarily due to sale of a vessel which is near completion in Q1 2013.
Chartering - The rise in revenue (US$16.9 million) was contributed primarily by better utilisation rates and higher charter rates.
Leasing - The decrease in revenue (US$2.7 million) is due to the decrease in four vessels - sale of two vessels in Q4 2012 and the transfer of two vessels to the chartering segment in Q2 2012.
Geophysical - The decrease in revenue (US$8.2 million) is primarily due to the seismic vessel not working in Q1 2013 (in Q1 2012, there were two vessels).
Subsea services - The increase in revenue (US$1.6 million) is due to higher utilisation rate of the vessel.
Gross profit (loss)
The improvement in gross profit amounting to US$6.8 million was primarily contributed by (1) the shipbuilding segment and subsea services, and (2) lower gross loss in the geophysical segment. This increase is partially offset by the decrease in gross profit in the chartering and leasing segment.
The gross profit in the shipbuilding segment in Q1 2013 is primarily contributed by the sale of a vessel, while the increase in gross profit in the subsea services segment is contributed by higher utilization of its vessel.
The decrease in the gross loss in the geophysical segment is due to reduced fleet size.
The decrease in gross profit in the chartering segment is primarily due to lower utilization of some vessels which were being repaired.
The decrease in gross profit in the leasing segment is due to reduced number of vessels.
Other income
Other income increased by US$1.7 million primarily as a result of gain arising from changes in the fair value of foreign exchange forward contracts (US$3.2 million), negated by a decrease in gain on disposal of property, plant and equipment (US$1.5 million).
Other expenses
Other expenses decreased by US$2.1 million primarily as a result of decrease in foreign exchange loss (US$1.2 million), and absence of loss arising from changes in the fair value of foreign exchange forward contracts (US$0.9 million).
Finance cost
The finance costs increased by US$0.9 million mainly due to increased interest incurred on additional loan facilities drawn down on the enlarged fleet.
Share of (loss) profit of associates and joint venture
Share of profit of associates and joint venture decreased by US$0.1 million primarily due to lower utilization of the associate's vessels, partially offset by incremental profit from joint venture of US$0.4 million.
Review of Balance Sheet &/or Cash Flow
ASSETS
The material contributing factors to the increase in total assets of US$1,177.8 million as at 31 December 2012 to US$1,220.4 million as at 31 March 2013 was due to increase in (1) cash and bank balance, (2) trade receivables, (3) vessels under construction, (4) other receivables, (5) property, plant and equipment and (6) share of profit of joint venture, partially offset by decrease in fixed deposits, finance lease receivables, and costs incurred for vessels under inventories.
LIABILITIES
The material contributing factors to the increase in total liabilities of US$955.0 million as at 31 December 2012 to US$996.7 million as at 31 March 2013 was from the increase in trade and other payables, partially offset by decrease in borrowings and finance lease payables.
Commentary
Global economic conditions as well as the general environment of the shipbuilding industry remain challenging. Although, the shipyard is under-utilized, the Group is selectively increasing its order intake of shipbuilding repair and fabrication project.
On the chartering front, the Group will explore opportunities and continue to grow its chartering fleet.
As announced on 30 April 2013 and 6 May 2013, the hearing date for the winding up adjudication by two of Reflect Geophysical Pte. Ltd.'s creditors has been fixed on 14 May 2013. As announced on 10 May 2013, full provision has been made in FY2012 for the effect of the liquidation of Reflect.
As previously announced, following a default by one of the Group's bareboat-chartering customers, the Group took action to, and did recover the vessels involved. In the process of an ongoing litigation with the counter party, letters of undertaking amounting to AUD14.0 million were issued as financial security. A ruling by the Federal Court of Australia had since been obtained, which resulted in the return forthwith of a letter of undertaking amounting to A$3.5m for the vessel wholly owned by the Group. The parties are currently proceeding to litigate on the quantum claimed in respect of 3 other vessels that were each, 49% owned indirectly by the Group. The Group had at the same time commenced arbitration in Australia to recover from the customer and /or the end-user of the vessels.