Financial statements
Consolidated statement of comprehensive income
For the financial year ended 31 December 2021
| Note | 2021 USD’000 |
2020 USD’000 |
|
| Revenue | 3 | 811,217 | 874,099 |
| Voyage expenses | 4 | (408,282) | (250,885) |
| TCE income # | 402,935 | 623,214 | |
| Other operating income | 23,177 | 22,974 | |
| Vessel operating expenses | 4 | (192,459) | (200,666) |
| Technical management expenses | (16,014) | (16,686) | |
| Charter hire expenses | (22,903) | (26,980) | |
| Other expenses | 4 | (42,979) | (39,007) |
| Operating profit before depreciation and amortisation charges | 151,757 | 362,849 | |
| Loss on disposal of vessel | (4,935) | (1,447) | |
| Depreciation charge of property, plant and equipment | 8 | (150,460) | (155,430) |
| Amortisation charge of intangible assets | 9 | (1,219) | (1,014) |
| Write-down on reclassification to assets held for sale | – | (11,389) | |
| Operating (loss)/profit | (4,857) | 193,569 | |
| Interest income | 2,355 | 2,014 | |
| Interest expense | (39,004) | (46,945) | |
| Capitalised financing fees written off | (4,496) | – | |
| Other finance expense | (3,333) | (2,238) | |
| Finance expense – net | (44,478) | (47,169) | |
| Share of (loss)/profit of equity-accounted investees, net of tax | 14 | (1,768) | 5,030 |
| (Loss)/profit before income tax | (51,103) | 151,430 | |
| Income tax expense | 6 | (4,390) | (2,654) |
| (Loss)/profit for the financial year | (55,493) | 148,776 | |
| Other comprehensive income: | |||
|---|---|---|---|
| Item that may be subsequently reclassified to income statement | |||
| Foreign operations – foreign currency translation differences | (1) | – | |
| Fair value gains/(losses) on cash flow hedges | 9,693 | (22,103) | |
| Reclassification to profit or loss | 6,628 | 12,644 | |
| Other comprehensive income/(loss) | 16,320 | (9,459) | |
| Total comprehensive (loss)/income for the year, net of tax | (39,173) | 139,317 | |
| Earnings per share attributable to the equity holders of the Company (expressed in USD per share) |
|||
| Basic (loss)/earnings per share | 7 | (0.15) | 0.41 |
| Diluted (loss)/earnings per share | 7 | (0.15) | 0.41 |
#“TCE income” denotes “time charter equivalent income” which represents revenue from time charters and voyage charters less voyage expenses comprising primarily brokers’ commission, fuel oil and port charges. TCE is a standard measure used in the shipping industry for reporting of income, providing improved comparability across different types of charters.
Consolidated balance sheet
As at 31 December 2021
| Note | 2021 USD’000 |
2020 USD’000 |
|
| Vessels | 8 | 1,909,534 | 2,029,138 |
| Dry docking and scrubbers | 8 | 63,414 | 69,901 |
| Right-of-use assets | 8 | 111,529 | 107,376 |
| Other property, plant and equipment | 8 | 266 | 25 |
| Total property, plant and equipment | 2,084,743 | 2,206,440 | |
| Intangible assets | 9 | 3,572 | 4,424 |
| Total intangible assets | 3,572 | 4,424 | |
| Other investments | 3,501 | – | |
| Derivative financial instruments | 20 | 675 | 26 |
| Deferred tax assets | 36 | 36 | |
| Loans receivable from joint venture | 13 | 60,229 | 45,430 |
| Associated companies and joint venture | 14 | 15,218 | 6,773 |
| Total other non-current assets | 79,659 | 52,265 | |
| Total non-current assets | 2,167,974 | 2,263,129 | |
| Loans receivable from pool participants | 13 | 34,865 | – |
| Assets held for sale | 10 | – | 11,000 |
| Inventories | 11 | 6,661 | 5,228 |
| Trade and other receivables | 12 | 201,123 | 163,639 |
| Derivative financial instruments | 20 | 252 | 245 |
| Cash and cash equivalents | 15 | 100,075 | 100,671 |
| Total current assets | 342,976 | 280,783 | |
| Total assets | 2,510,950 | 2,543,912 | |
| Share capital | 16 | 3,703 | 3,703 |
| Share premium | 16 | 704,834 | 704,834 |
| Contributed surplus | 16 | 537,112 | 537,112 |
| Other reserves | 17 | 5,150 | (14,148) |
| Treasury shares | (12,832) | (13,001) | |
| Accumulated losses | (125,955) | (70,462) | |
| Total shareholders’ equity | 1,112,012 | 1,148,038 | |
| Borrowings | 19 | 1,082,829 | 1,128,210 |
| Derivative financial instruments | 20 | 306 | 15,973 |
| Total non-current liabilities | 1,083,135 | 1,144,183 | |
| Borrowings | 19 | 248,374 | 179,084 |
| Derivative financial instruments | 20 | 21 | 18 |
| Current income tax liabilities | 2,018 | 2,071 | |
| Trade and other payables | 21 | 65,390 | 70,518 |
| Total current liabilities | 315,803 | 251,691 | |
| Total liabilities | 1,398,938 | 1,395,874 | |
| Total equity and liabilities | 2,510,950 | 2,543,912 | |
Consolidated statement of changes in equity
For the financial year ended 31 December 2021
| Note | Share capital USD’000 | Share premium USD’000 | Contributed surplus USD’000 | Translation reserve USD’000 | Hedging reserve USD’000 | Treasury shares USD’000 | Share-based payment reserve USD’000 | Accumulated losses USD’000 | Total USD’000 | |
| Balance at 1 January 2021 | 3,703 | 704,834 | 537,112 | (34) | (15,973) | (13,001) | (1,859) | (70,462) | 1,148,038 | |
| Transactions with owners | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Equity-settled share-based payment | – | – | – | – | – | 169 | 2,978 | – | 3,147 | |
| Total comprehensive income/(loss) | ||||||||||
| Loss for the financial year | – | – | – | – | – | – | – | (55,493) | (55,493) | |
| Other comprehensive (loss)/income | – | – | – | (1) | 16,321 | – | – | – | 16,320 | |
| Balance at 31 December 2021 | 3,703 | 704,834 | 537,112 | (35) | 348 | (12,832) | 4,837 | (125,955) | 1,112,012 | |
| Note | Share capital USD’000 | Share premium USD’000 | Contributed surplus USD’000 | Translation reserve USD’000 | Hedging reserve USD’000 | Treasury shares USD’000 | Share-based payment reserve USD’000 | Accumulated losses USD’000 | Total USD’000 | |
| Balance at 1 January 2020 | 3,703 | 704,834 | 537,112 | (34) | (6,514) | (500) | 823 | (120,920) | 1,118,504 | |
| Transactions with owners | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Treasury shares acquired | – | – | – | – | – | (12,614) | – | – | (12,641) | |
| Equity-settled share-based payment | – | – | – | – | – | 140 | 1,036 | – | 1,176 | |
| Dividends paid | 29 | – | – | – | – | – | _ | _ | (98,318) | (98,318) |
| Total comprehensive income/(loss) | ||||||||||
| Profit for the financial year | – | – | – | – | – | – | – | 148,776 | 148,776 | |
| Other comprehensive loss | – | – | – | – | (9,459) | – | – | – | (9,459) | |
| Balance at 31 December 2020 | 3,703 | 704,834 | 537,112 | (34) | (15,973) | (13,001) | 1,859 | (70,462) | 1,148,038 | |
Consolidated statement of cash flows
For the financial year ended 31 December 2021
| Note | 2021 USD’000 |
2020 USD’000 |
|
| Cash flows from operating activities | |||
|---|---|---|---|
| (Loss)/profit for the financial year | (55,493) | 148,776 | |
| Adjustments for: | |||
| – income tax expense | 4,390 | 2,654 | |
| – depreciation and amortisation charges | 151,679 | 156,444 | |
| – write-down on reclassification to assets held for sale | – | 11,389 | |
| – loss on disposal of vessel | 4,935 | 1,447 | |
| – interest income | (2,355) | (2,014) | |
| – interest expense | 39,004 | 46,945 | |
| – capitalised financing fees written off | 4,496 | – | |
| – other finance expense | 3,333 | 2,238 | |
| – share of loss/(profit) of equity-accounted investees, net of tax | 1,768 | (5,030) | |
| – equity-settled share-based payment transactions | 3,147 | 1,176 | |
| Operating cash flow before working capital changes | 154,904 | 364,025 | |
| Changes in working capital: | |||
| – inventories | (1,433) | 1,758 | |
| – trade and other receivables | (37,462) | 70,733 | |
| – trade and other payables | (5,128) | (36,043) | |
| Cash generated from operations | 110,881 | 400,473 | |
| Income tax paid | (4,443) | (1,999) | |
| Net cash provided by operating activities | 106,438 | 398,474 | |
| Cash flows from investing activities | |||
| Interest income received | 877 | 822 | |
| Loan to joint venture company | 13 | (13,500) | (14,680) |
| Loan to pool participants | 13 | (34,704) | – |
| Acquisition of other investments | (3,501) | – | |
| Equity investment in joint venture | 14 | (10,213) | – |
| Purchase of intangible assets | 9 | (367) | (1,019) |
| Proceeds from disposal of assets held for sale | 11,000 | – | |
| Proceeds from disposal of property, plant and equipment | 29,191 | 11,899 | |
| Purchase of property, plant and equipment | 8 | (26,663) | (47,578) |
| Net cash used in investing activities | (47,880) | (50,556) | |
| Cash flows from financing activities | |||
| Proceeds from borrowings from external financial institutions | 622,685 | 118,939 | |
| Proceeds from borrowings from a related corporation | 18,750 | – | |
| Repayment of borrowings to external financial institutions | (622,085) | (221,700) | |
| Repayment of borrowings to a related corporation | – | (8,729) | |
| Repayment of borrowings to non-related parties | (390) | (437) | |
| Repayment of lease liabilities | (39,771) | (78,746) | |
| Payment of financing fees | (5,106) | (196) | |
| Interest paid to external financial institutions | (29,869) | (35,087) | |
| Interest paid to a third party | (33) | – | |
| Repurchase of treasury shares | – | (12,641) | |
| Dividends paid | 29 | – | (98,318) |
| Other finance expense paid | (3,335) | (1,944) | |
| Net cash used in financing activities | (59,154) | (338,859) | |
| Net (decrease)/increase in cash and cash equivalents | (596) | 9,059 | |
| Cash and cash equivalents at beginning of the financial year | 100,671 | 91,612 | |
| Cash and cash equivalents at end of the financial year | 15 | 100,075 | 100,671 |
Reconciliation of liabilities arising from financing activities
| Non-cash changes – USD’000 | ||||||||
| 1 January 2021 USD’00 |
Financial cash flows (i) USD’000 |
Additional leases capitalised during the year | Interest expense | Capitalised financing fees written off | Fair value changes on cash flow hedges | Other finance expense | 31 December 2021 USD’000 |
|
| Bank borrowings | 1,110,527 | (24,389) | – | 22,278 | 4,496 | – | – | 1,112,912 |
| Loan from a related corporation | – | 18,489 | – | 261 | – | – | – | 18,750 |
| Loan from non-related parties | 4,781 | (423) | – | 33 | – | – | – | 4,391 |
| Finance and other lease liabilities | 191,986 | (42,863) | 36,226 | 9,801 | – | – | – | 195,150 |
| Derivative financial instruments | 15,991 | (6,633) | – | 6,631 | – | (16,321) | 5 | (327) |
| Non-cash changes – USD’000 | |||||||
| 1 January 2020 USD’00 |
Financial cash flows (i) USD ’000 | Additional leases capitalised during the year | Interest expense | Fair value changes on cash flow hedges | Other finance expense/(income) | 31 December 2020 USD’000 |
|
| Bank borrowings | 1,211,048 | (134,608) | – | 33,941 | – | 146 | 1,110,527 |
| Loan from a related corporation | 8,500 | (8,729) | – | 229 | – | – | – |
| Loan from non-related parties | 5,172 | (437) | – | 46 | – | – | 4,781 |
| Finance and other lease liabilities | 223,406 | (78,746) | 38,076 | 9,250 | – | – | 191,986 |
| Derivative financial instruments | 6,514 | (3,436) | – | 3,479 | 9,459 | (25) | 15,991 |
(i) The cash flows make up the net amount of proceeds from borrowings, repayments of borrowings, interest expense and financing fees paid as reported in the statement of cash flows.