Euronav NV Announces Final Results 2014 and New Dividend Policy
USD 0.25 per share gross dividend proposed for annual shareholders' meeting on13 May 2015 - Dividend policy going forward to distribute at least 80% of net results
- Confirmation of the preliminary results published on
11 February 2015
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Consolidated financial results 2014 summary The most important key figures are: fourth Full fourth quarter Year Full Year in thousands of USD quarter 2013 2014 2014 2013 Restated* Restated* turnover 80,295 144,866 473,985 304,622 EBITDA 20,860 67,588 172,481 82,244 depreciation -34,510 -47,894 -160,954 -136,958 EBIT (operating result) -13,651 19,694 11,527 -54,714 financial result -13,512 -37,458 -93,353 -52,644 share of profit(loss) of Equity Accounted investees 3,967 7,992 30,286 17,853 result before taxation -23,196 -9,772 -51,540 -89,505 Tax Expense -79 5,837 5,743 -178 result after taxation -23,275 -3,935 -45,797 -89,683 Attributable to: owners of the company -23,275 -3,935 -45,797 -89,683 non-controlling intrests 0 0 0 0
The contribution to the result is as follows fourth fourth Full Full quarter quarter Year Year in thousands of USD 2013 2014 2014 2013 Tankers -29,457 -11,243 -75,250 -117,867 FSO 6,182 7,308 29,453 28,184 result after taxation -23,275 -3,935 -45,797 -89,683
Information per share: fourth fourth quarter quarter Full Year Full Year in USD per share 2013 2014 2014 2013 number of shares** 50,914,237 129,300,666 116,539,018 50,230,438 EBITDA 0.41 0.52 1.48 1.64 EBIT (operating result) -0.27 0.15 0.10 -1.09 result after taxation -0.46 -0.03 -0.39 -1.79
* All figures have been prepared under IFRS as adopted by EU (International Financial Reporting Standards) and have been audited by the statutory auditor. The comparative figures for 2013 have been restated following the application of IFRS 10 & 11 on Joint Arrangements.
** The number of shares outstanding on
2014 Dividend
It will be proposed to the annual shareholders' meeting of
The proposal put before the annual shareholders' meeting for the dividend over the financial year 2014 from profits carried forward is justified in view of the stronger tanker markets since the end of 2014 which have continued in 2015. The gross dividend of
Dividend policy
The final dividend is proposed by the Board of Directors (and is subject to approval by the shareholders). It is announced in March, together with the group full year results and is paid after the approval of shareholders at the annual shareholders meeting which takes place the second Thursday of the month of May and will be paid within the month of May.
Highlights 2014
CHANGE IN ACCOUNTING POLICY: FIRST-YEAR ADOPTION OF IFRS 10 & IFRS 11
The Company is applying the new accounting standards IFRS 10 and IFRS 11 as of
CORPORATE
After reaching an agreement with private investors in
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TANKER
The VLCC Ardenne Venture (2004 - 318,658 dwt) was delivered to its new owners under the sale for
The Company agreed to extend the period of the purchase option on the
The owners of the Cap Isabella (2013 - 157,258 dwt), which
OFFSHORE
Euronav Ship Management Antwerp (ESMA) successfully took over the ship management of the vessel FSO Africa (2002 - 442,000 dwt), owned by
Events occurred after the end of the financial year ending
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Prospects for 2015
The fundamental drivers for the tanker market, supply and demand for seaborne transport, are constructive and support the view of a robust market in both the short and medium term. Management believes that
There are several supportive factors.
Firstly, demand for oil has remained robust over the past three years. The fall in the oil price since October should stimulate additional demand as the reduction in the oil price should act as a direct stimulus to the global economy. The benefit of lower oil prices also implies a reduction in one of our key operational costs - namely bunker fuel.
Secondly, the tanker fleet order book is at his lowest since 1997 and vessel supply should remain restricted for at least the next two years.
Thirdly, the financial crisis has changed the landscape for shipping finance as many previous providers of capital, particularly European Banks, have withdrawn and those left are increasingly constrained by capital adequacy rules. This development provides a clear advantage for transparent, well capitalised platforms such as
Fourthly, ton-miles, which have structurally increased in the last 3 years, should continue to have a significant impact on the demand dynamics of the tanker markets. The Atlantic is effectively long oil and this oil supply is feeding demand from non-OECD and especially from
Other factors provide an encouraging background: short term, the oil price contango may continue to drive support for floating storage and reduce capacity. Lower bunker costs may make speed less of a cost issue BUT ship owners should not waste fuel so speeds in ballast will vary as to whether the ship is sailing to a cargo or not. No rational ship owner will want to speed up just to wait. The industry has learnt over the past five years how to manage variable voyage costs and speed is the key factor.
Financial calendar 2015
Thursday
Annual report 2014 available on website
Thursday30
Announcement of first quarter results 2015
Wednesday
Annual Shareholders' meeting 2015
Thursday
Announcement of second quarter results 2015
Thursday
Announcement of final half year results 2015
Monday
Half year report 2015 available on website
Tuesday
Announcement of third quarter results 2015
The Board of Directors, represented by
On behalf of the Board of Directors:
Paddy Rodgers Peter G. Livanos
Chief Executive Officer Chairman of the Board of Directors
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe", "anticipate", "intends", "estimate", "forecast", "project", "plan", "potential", "may", "should", "expect", "pending" and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of counterparties to fully perform their contracts with us, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for tanker vessel capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see our filings with the
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About
Regulated information within the meaning of the Royal Decree of
Consolidated statement of financial position (in thousands of USD except per share amounts) December 31, December 31, January 1, 2014 2013 2013 Restated * Restated * ASSETS Current assets Trade and other receivables 194,733 95,913 81,426 Current tax assets 36 36 27 Cash and cash equivalents 254,086 74,309 113,051 Non-current assets held for sale 89,000 21,510 52,920 Total current assets 537,855 191,768 247,424 Non-current assets Vessels 2,258,334 1,434,800 1,592,837 Other tangible assets 1,226 633 666 Prepayments 16,601 10,000 - Intangible assets 29 31 79 Receivables 258,447 259,535 226,161 Investments in equity-accounted investees 17,332 23,114 21,074 Deferred tax assets 6,536 880 963 Total non-current assets 2,558,505 1,728,993 1,841,780 TOTAL ASSETS 3,096,360 1,920,761 2,089,204 EQUITY and LIABILITIES Equity Share capital 142,441 58,937 56,248 Share premium 941,770 365,574 353,063 Translation reserve 379 946 730 Hedging reserve - (1,291) (6,721) Treasury shares (46,062) (46,062) (46,062) Other equity interest 75,000 - - Retained earnings 359,180 422,886 509,712 Equity attributable to owners of the Company 1,472,708 800,990 866,970 Current Liabilities Trade and other payables 125,555 107,094 133,146 Tax liabilities 1 21 - Bank loans 146,303 137,677 110,621 Convertible and other Notes 23,124 - - Provisions 412 - - Total current liabilities 295,395 244,792 243,767 Non-current liabilities Bank loans 1,088,026 710,086 800,853 Convertible and other Notes 231,373 125,822 132,694 Other payables 489 31,291 36,874 Deferred tax liabilities - - - Employee benefits 2,108 1,900 2,166 Amounts due to equity-accounted joint ventures 5,880 5,880 5,880 Provisions 381 - - Total non-current liabilities 1,328,257 874,979 978,467 TOTAL EQUITY and LIABILITIES 3,096,360 1,920,761 2,089,204 * The comparative figures for 2013 have been restated following the application of IFRS 10 & IFRS 11 on Joint Arrangements.
Consolidated statement of profit or loss (in thousands of USD except per share amounts) 2014 2013 Jan.1 - Dec 31, 2014 Jan.1 - Dec 31, 2013 Restated * Shipping revenue Revenue 473,985 304,622 Gains on disposal of vessels/other tangible assets 13,122 8 Other operating income 11,411 11,520 Total shipping revenue 498,518 316,150 Operating expenses Voyage expenses and commissions (118,303) (79,584) Vessel operating expenses (124,089) (105,911) Charter hire expenses (35,664) (21,031) Losses on disposal of vessels/other tangible assets - (215) Impairment on non-current assets held for sale (7,416) - Depreciation tangible assets (160,934) (136,882) Depreciation intangible assets (20) (76) General and administrative expenses (40,565) (27,165) Total operating expenses (486,991) (370,864) RESULT FROM OPERATING ACTIVITIES 11,527 (54,714) Finance income 2,617 1,993 Finance expenses (95,970) (54,637) Net finance expenses (93,353) (52,644) Share of profit (loss) of equity accounted investees (net of income tax) 30,286 17,853 PROFIT (LOSS) BEFORE INCOME TAX (51,540) (89,505) Income tax benefit (expense) 5,743 (178) PROFIT (LOSS) FOR THE PERIOD (45,797) (89,683) Attributable to: Owners of the company (45,797) (89,683) Basic net income/(loss) per share (0.39) (1.79) Diluted net income/(loss) per share (0.39) (1.79) Weighted average number of shares (basic) 116,539,018 50,230,438 Weighted average number of shares (diluted) 116,539,018 50,230,438 Consolidated statement of comprehensive income (in thousands of USD except per share amounts) Profit/(loss) for the period (45,797) (89,683) Other comprehensive income, net of tax Items that will never be reclassified to profit or loss: Remeasurements of the defined benefit liability(asset) (393) = 263 Items that are or may be reclassified to profit or loss: Foreign currency translation differences (567) 216 Cash flow hedges - effective portion of changes in fair value 1,291 5,430 Equity-accounted investees - share of other comprehensive income 2,106 3,077 Other comprehensive income, net of tax 2,437 8,986 Total comprehensive income for the period (43,360) (80,697) Attributable to: Owners of the company (43,360) (80,697) * The comparative figures for 2013 have been restated following the application of IFRS 10 & IFRS 11 on Joint Arrangements. Consolidated statement of changes in equity (in thousands of USD except per share amounts) Capital Other Transl- Trea- Trea- Capital Other Total Share ation sury Hedging sury Retained and equity capital premium reserve reserve shares earnings reserves interest equity Balance at January 1, 2013 as reported 56,248 353,063 730 (15,221) (46,062) 518,212 866,970 - 866,970 Impact of changes in accounting policies - - - 8,500 - (8,500) - - - Balance a January 1, 2013 restated * 56,248 353,063 730 (6,721) (46,062) 509,712 866,970 - 866,970 Profit (loss) for the period - - - - - (89,683) (89,683) - (89,683) Total other comprehen- sive income - - 216 5,430 - 3,340 8,986 - 8,986 Total comprehen- sive income, restated * - - 216 5,430 - (86,343) (80,697) - (80,697) Transactions with owners of the company Issue and conversion convertible Notes 2,689 12,511 - - - (666) 14,534 - 14,534 Equity- settled share-based payment - - - - - 183 183 - 183 Total trans- actions with owners 2,689 12,511 - - - (483) 14,717 - 14,717 Balance at December 31, 2013 restated * 58,937 365,574 946 (1,291) (46,062) 422,886 800,990 - 800,990 Transl- Trea- Trea- Capital Other Share ation sury Hedging sury Retained and equity Total capital premium reserve reserve shares earnings Reserves interest equity Balance at January 1, 2014 58,937 365,574 946 (1,291) (46,062) 422,886 800,990 - 800,990 Profit (loss) for the period - - - - - (45,797) (45,797) - (45,797) Total other comprehen- sive income - - (567) 1,291 - 1,713 2,437 - 2,437 Total comprehen- sive income - - (567) 1,291 - (44,084) (43,360) - (43,360) Transaction with owners of the company Issue of ordinary shares 53,119 421,881 - - - (12,694) 462,306 - 462,306 Issue and conversion convertible Notes 20,103 89,597 - - - (7,422) 102,278 - 102,278 Issue and conversion perpetual convertible preferred equity 10,282 64,718 - - - (3,500) 71,500 75,000 146,500 Equity- settled share- based payment - - - - - 3,994 3,994 - 3,994 Total trans- actions with owners 83,504 576,196 - - - (19,622) 640,078 75,000 715,078 Balance at December 31, 2014 142,441 941,770 379 - (46,062) 359,180 1,397,708 75,000 1,472,708 * The comparative figures for 2013 have been restated following the application of IFRS 10 & IFRS 11 on Joint Arrangements. Consolidated statement of cash flows (in thousands of USD except per share amounts) 2014 2013 Jan.1 - Dec 31, 2014 Jan.1 - Dec 31, 2013 Restated * Cash flows from operating activities Profit (loss) for the period (45,797) (89,683) Adjustments for: 217,410 172,095 Depreciation of tangible assets 160,934 136,882 Depreciation of intangible assets 20 76 Impairment on non-current assets held for sale 7,416 - Provisions 840 - Tax benefits (expenses) (5,743) 178 Share of profit of equity-accounted investees, net of tax (30,286) (17,853) Net finance expense 93,353 52,644 Capital gain(loss) on disposal of assets (13,118) (15) Equity-settled share-based payment transactions 3,994 183 Changes in working capital requirements (112,280) (43,442) Change in cash guarantees (658) (1) Change in trade receivables (23,755) (79) Change in accrued income (8,577) (1,706) Change in deferred charges (2,124) (8,664) Change in other receivables (64,299) (4,036) Change in trade payables (10,512) 19,899 Change in accrued payroll 166 (28) Change in accrued expenses 9,581 8,342 Change in deferred income (2,016) (1,065) Change in other payables (10,171) (56,018) Change in provisions for employee benefits 85 (86) Income taxes paid during the period 67 (82) Interest paid (54,449) (47,895) Interest received 421 90 Dividends received from equity- accounted investees 9,410 - Net cash from (used in) operating activities 14,782 (8,917) Acquisition of vessels (1,053,939) - Proceeds from the sale of vessels 123,609 52,920 Acquisition of other tangible assets (123,188) (10,325) Acquisition of intangible assets (19) (30) Proceeds from the sale of other (in)tangible assets 22 24 Loans from (to) related parties 29,508 (11,475) Proceeds of disposals of joint ventures, net of cash disposed 1,000 - Purchase of joint ventures, net of cash acquired - (3,000) Net cash from (used in) investing activities (1,023,007) 28,114 Proceeds from issue of share capital 475,000 - Transaction costs related to issue of share capital (12,694) - Proceeds from issue of perpetual convertible preferred equity 150,000 - Transaction costs related to issue perpetual convertible preferred equity (3,500) - Proceeds from new long-term borrowings 1,395,392 61,390 Repayment of long-term borrowings (799,891) (118,770) Transaction costs related to issue of loans and borrowings (15,284) - Dividends paid (2) (4) Net cash from (used in) financing activities 1,189,021 (57,384) Net increase (decrease) in cash and cash equivalents 180,796 (38,187) Net cash and cash equivalents at the beginning of the period 74,309 113,051 Effect of changes in exchange rates (1,019) (555) Net cash and cash equivalents at the end of the period 254,086 74,309 * The comparative figures for 2013 have been restated following the application of IFRS 10 & IFRS 11 on Joint Arrangements.
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