Financials
Consolidated Statement of Comprehensive Income
For the financial year ended 31 December 2020
| Note | 2020 USD’000 |
2019 USD’000 |
|
| Revenue | 3 | 874,099 | 827,855 |
| Voyage expenses | 4 | (250,885) | (313,425) |
| TCE Income # | 623,214 | 514,430 | |
| Other operating income | 22,974 | 12,335 | |
| Vessel operating expenses | 4 | (200,666) | (184,746) |
| Technical management expenses | (16,686) | (15,433) | |
| Charter hire expenses | (26,980) | (16,867) | |
| Other expenses | 4 | (39,007) | (31,879) |
| Operating profit before depreciation and amortisation charges | 362,849 | 277,840 | |
| Loss on disposal of vessel | (1,447) | (732) | |
| Depreciation charge of property, plant and equipment | 8 | (155,430) | (131,145) |
| Amortisation charge of intangible assets | 9 | (1,014) | (360) |
| Write-down on reclassification to assets held for sale | (11,389) | – | |
| Operating profit | 193,569 | 145,603 | |
| Interest income | 2,014 | 3,689 | |
| Interest expense | (46,945) | (67,007) | |
| Capitalised financing fees written off | – | (9,314) | |
| Other finance expense | (2,238) | (1,078) | |
| Finance expense – net | (47,169) | (73,710) | |
| Share of profit of equity-accounted investees, net of tax | 15 | 5,030 | 856 |
| Profit before income tax | 151,430 | 72,749 | |
| Income tax expense | 6 | (2,654) | (1,015) |
| Profit for the financial year | 148,776 | 71,734 | |
| Other comprehensive loss: | |||
|---|---|---|---|
| Items that may be subsequently reclassified to profit or loss: | |||
| Fair value losses on cash flow hedges | (22,103) | (7,266) | |
| Reclassification to profit or loss | 12,644 | 410 | |
| Other comprehensive loss, net of tax | (9,459) | (6,856) | |
| Total comprehensive income for the year | 139,317 | 64,878 | |
| Earnings per share attributable to the equity holders of the Company (expressed in USD per share) |
|||
| Basic earnings per share | 7 | 0.41 | 0.21 |
| Diluted earnings per share | 7 | 0.41 | 0.21 |
# “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 2020
| Note | 2020 USD’000 |
2019 USD’000 |
|
| Vessels | 8 | 2,029,138 | 2,123,179 |
| Dry docking and scrubbers | 8 | 69,901 | 59,306 |
| Right-of-use assets | 8 | 107,376 | 129,366 |
| Other property, plant and equipment | 8 | 25 | 100 |
| Total property, plant and equipment | 2,206,440 | 2,311,951 | |
| Intangible assets | 9 | 4,424 | 3,159 |
| Total intangible assets | 4,424 | 3,159 | |
| Derivative financial instruments | 21 | 26 | – |
| Deferred tax assets | 36 | 36 | |
| Loans receivable from joint venture | 14 | 45,430 | 29,584 |
| Associated companies and joint venture | 15 | 6,773 | 1,718 |
| Total other non-current assets | 52,265 | 31,338 | |
| Total non-current assets | 2,263,129 | 2,346,448 | |
| Assets held for sale | 11 | 11,000 | – |
| Inventories | 12 | 5,228 | 6,986 |
| Trade and other receivables | 13 | 163,639 | 233,489 |
| Derivative financial instruments | 21 | 245 | 2,737 |
| Cash and cash equivalents | 16 | 100,671 | 91,612 |
| Total current assets | 280,783 | 334,824 | |
| Total assets | 2,543,912 | 2,681,272 | |
| Share capital | 17 | 3,703 | 3,703 |
| Share premium | 17 | 704,834 | 704,834 |
| Contributed surplus | 17 | 537,112 | 537,112 |
| Other reserves | 18 | (14,148) | (5,725) |
| Treasury shares | (13,001) | (500) | |
| Accumulated losses | (70,462) | (120,920) | |
| Total shareholders’ equity | 1,148,038 | 1,118,504 | |
| Borrowings | 20 | 1,128,210 | 1,234,796 |
| Other payables | 22 | – | 1,238 |
| Derivative financial instruments | 21 | 15,973 | 6,514 |
| Total non-current liabilities | 1,144,183 | 1,242,548 | |
| Borrowings | 20 | 179,084 | 213,330 |
| Derivative financial instruments | 21 | 18 | – |
| Current income tax liabilities | 2,071 | 1,416 | |
| Trade and other payables | 22 | 70,518 | 105,474 |
| Total current liabilities | 251,691 | 320,220 | |
| Total liabilities | 1,395,874 | 1,562,768 | |
| Total equity and liabilities | 2,543,912 | 2,681,272 | |
Consolidated statement of changes in equity
| 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 | – | – | – | – | – | (12,641) | – | – | (12,641) | ||
| Equity-settled share-based payment | – | – | – | – | – | 140 | 1,036 | – | 1,176 | ||
| Dividends paid | 30 | – | – | – | – | – | – | – | (98,318) | (98,318) | |
| Total comprehensive income | |||||||||||
| 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 | ||
| Note | Share capital USD’000 | Share premium USD’000 | Contributed surplus USD’000 | Capital reserve 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 2019 | 1,962 | 221,220 | 537,112 | 50,011 | – | 3,158 | – | – | (242,384) | 571,079 | |
| Alignment of accounting policies on merger | 2.2 | – | – | – | – | – | – | – | – | 2,097 | 2,097 |
| Transactions with owners | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Issue of shares to former shareholders of Hafnia Tankers | 2.2 | 1,470 | 411,872 | – | – | – | – | – | – | – | 413,342 |
| Acquisition of Hafnia Tankers’s reserves | 2.2 | – | – | – | – | (34) | (1,874) | (14,038) | – | (75,892) | (91,838) |
| Merger accounting adjustments | 2.2 | ||||||||||
| – Merger deficit on combination | – | – | – | – | – | – | – | – | (72,571) | (72,571) | |
| – Acquisition of NCI of former Hafnia Tankers | – | – | – | – | – | (942) | – | – | 146,085 | 145,143 | |
| – Cancellation of treasury shares of former Hafnia Tankers | – | – | – | – | – | – | 14,038 | – | – | 14,038 | |
| Treasury shares acquired | – | – | – | – | – | – | (500) | – | – | (500) | |
| Equity-settled share-based payment | – | – | – | – | – | – | – | 823 | – | 823 | |
| Issue of common shares (net of capitalised listing fees) | 17 | 271 | 71,742 | – | – | – | – | – | – | – | 72,013 |
| Transfer of reserve | |||||||||||
| Transfer of reserve | – | – | – | (50,011) | – | – | – | – | 50,011 | – | |
| Total comprehensive income | |||||||||||
| Profit for the financial year | – | – | – | – | – | – | – | – | 71,734 | 71,734 | |
| Other comprehensive loss | – | – | – | – | – | (6,856) | – | – | – | (6,856) | |
| Balance at 31 December 2019 | 3,703 | 704,834 | 537,112 | – | (34) | (6,514) | (500) | 823 | (120,920) | 1,118,504 | |
Consolidated Statement of Cash Flows
For the financial year ended 31 December 2020
| Note | 2020 USD’000 |
2019 USD’000 |
|
| Cash flows from operating activities | |||
|---|---|---|---|
| Profit for the financial year | 148,776 | 71,734 | |
| Adjustments for: | |||
| – income tax expense | 2,654 | 1,015 | |
| – depreciation and amortisation charges | 156,444 | 131,505 | |
| – write-down on reclassification to assets held for sale | 11,389 | – | |
| – loss on disposal of vessel | 1,447 | 732 | |
| – interest income | (2,014) | (3,689) | |
| – interest expense | 46,945 | 67,007 | |
| – capitalised financing fees written off | – | 9,314 | |
| – other finance expense | 2,238 | 1,078 | |
| – share of profit of equity-accounted investees, net of tax | (5,030) | (856) | |
| – equity-settled share-based payment transactions | 1,176 | 823 | |
| Operating cash flow before working capital changes | 364,025 | 278,663 | |
| Changes in working capital: | |||
| – inventories | 1,758 | 21,108 | |
| – trade and other receivables | 70,733 | (82,901) | |
| – trade and other payables | (36,043) | 26,288 | |
| Cash generated from operations | 400,473 | 243,158 | |
| Income tax paid | (1,999) | (330) | |
| Net cash provided by operating activities | 398,474 | 242,828 | |
| Cash flows from investing activities | |||
| Interest income received | 822 | 1,717 | |
| Loan to joint venture company | 14 | (14,680) | (53,150) |
| Repayment of loan by joint venture company | 14 | – | 39,900 |
| Dividend received from equity-accounted investees | – | 1,748 | |
| Acquisition of businesses, net of cash acquired | – | 3,279 | |
| Acquisition of subsidiaries, net of cash acquired | – | (155) | |
| Purchase of intangible assets | 9 | (1,019) | (439) |
| Proceeds from disposal of property, plant and equipment | 11,899 | 9,799 | |
| Purchase of property, plant and equipment | 8 | (47,578) | (278,574) |
| Net cash used in investing activities | (50,556) | (282,433) | |
| Cash flows from financing activities | |||
| Proceeds from borrowings from external financial institutions | 118,939 | 718,300 | |
| Proceeds from borrowings from non-related parties | – | 3,117 | |
| Repayment of borrowings to external financial institutions | (221,700) | (598,293) | |
| Repayment of borrowings to a related corporation | (8,729) | (44,525) | |
| Repayment of borrowings to non-related parties | (437) | (375) | |
| Repayment of lease liabilities | (78,746) | (39,010) | |
| Payment of financing fees | (196) | (6,629) | |
| Interest paid to external financial institutions | (35,087) | (55,208) | |
| Interest paid to a related corporation | – | (1,901) | |
| Repurchase of treasury shares | (12,641) | (500) | |
| Dividends paid | 30 | (98,318) | – |
| Proceeds from issuance of common shares (net of capitalised listing fees) | 17 | – | 72,013 |
| Other finance expense paid | (1,944) | (1,771) | |
| Net cash (used in)/provided by financing activities | (338,859) | 45,218 | |
| Net increase in cash and cash equivalents | 9,059 | 5,613 | |
| Cash and cash equivalents at beginning of the financial year | 91,612 | 52,463 | |
| Acquisition of Hafnia Tankers’ cash and cash equivalents on merger | – | 33,536 | |
| Cash and cash equivalents at end of the financial year | 16 | 100,671 | 91,612 |
Reconciliation of liabilities arising from financing activities
| 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 form a related corporation | 8,500 | (8,729) | – | 229 | – | – | – |
| Loan from non-related parties | 5,172 | (437) | – | 46 | – | – | 4,781 |
| 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 |
| Non-cash changes (USD’000) | ||||||||
| 1 January 2019 USD’00 |
Borrowings/derivatives acquired on merger USD’000 |
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 2019 USD’000 |
|
| Bank borrowings | 645,453 | 441,854 | 58,575 | – | 65,166 | – | – | 1,211,048 |
| Loan form a related corporation | 44,531 | 8,530 | (46,426) | – | 1,865 | – | – | 8,500 |
| Loan from non-related parties | – | 2,402 | 2,742 | – | 28 | – | – | 5,172 |
| Lease liabilities | 25,019 | 137,223 | (39,010) | 90,921 | 8,852 | – | 401 | 223,406 |
| Derivative financial instruments | (3,128) | 2,816 | (405) | – | 410 | 6,856 | (35) | 6,514 |
(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.