|Bunker, port disbursement &|
other voyage costs
|Time-charter equivalent |
|Owned vessel costs|
|Net finance costs||4||(32.4)||(32.3)||_|
|Operating performance before |
|Total G&A overheads||6||(59.8)||(54.4)||-10%|
|Taxation and others||(1.3)||0.3||>-100%|
|Write-back of onerous|
|Distribution from Muchalat|
|Write-off of loan|
|Impairments and sales of|
|Office relocation costs||-||(1.4)|
|Towage exchange loss||-||(1.3)|
|Profit attributable to|
|Net profit margin||5%||1%||+4%|
|Return on average|
|* In our tabulated figures, positive changes represent an improving result and negative changes represent a worsening result.|
- Total time-charter equivalent (“TCE”) earnings increased by 12%, reflecting a continued market recovery.
- Total operating expenses of our owned vessels increased by 7% as our owned fleet expanded, but our daily vessel costs remained substantially unchanged at very competitive level as a result of scale benefits and continued cost control.
- Depreciation of our owned vessels increased by 6% as our owned fleet expanded, but with slightly reduced daily cost principally due to the addition of lower cost acquisitions.
- Net finance costs were substantially unchanged.
- Charter costs net of the release of onerous contract provisions were substantially unchanged.
- The increase in total G&A overheads was attributable primarily to an increase in staff-related costs as our owned fleet expanded.
- An unrealised derivative expense from bunker swap contracts as at the year end was a result of a significant drop in oil and bunker prices.
- Due to the improved market outlook, the balance of onerous contracts provisions for future years was fully written-back.
- A distribution was received from our associate Muchalat relating to its disposal of assets before liquidation. Our investment in this associate had previously been fully impaired.
- Loan arrangement fees were written off upon termination of loans refinanced by a new revolving credit facility.
- The impairment relates to the disposal of one of our older Handysize vessels which will be delivered to her new owner in 2019.
- EBITDA increased substantially as a result of the stronger freight market in 2018. Our cash and deposits at the year end stood at US$341.8 million (2017: US$244.7 million) with net gearing of 34% (2017: 35%).
EBITDA (earnings before interest, tax, depreciation and amortisation) is gross profit less indirect general and administrative overheads, excluding: depreciation and amortisation; exchange differences; share-based compensation; net unrealised bunker swap contract income and expenses; net unrealised forward freight agreements income and expenses; utilisation and write-back of onerous contract provisions; and Charter Hire Reduction adjustments.