Financials
Consolidated Statement of Comprehensive Income
For the financial year ended 31 December 2019
| Note | 2019 USD’000 |
2018 USD’000 |
|
| Revenue | 3 | 827,855 | 368,390 |
| Voyage expenses | 4 | (313,425) | (167,119) |
| TCE Income # | 514,430 | 201,271 | |
| Other operating income | 11,883 | 1,581 | |
| Vessel operating expenses | 4 | (253,051) | (126,395) |
| Technical management expenses | (15,433) | (10,910) | |
| Charter hire expenses | (16.867) | (8,659) | |
| Other expenses | 4 | (31,879) | (13,337) |
| Operating profit before depreciation and impairment on vessels | 277,840 | 76,457 | |
| Loss on disposal of vessels | (732) | – | |
| Depreciation and amortisation charges | 8 | (131,505) | (56,865) |
| Impairment charge on vessels – net | 8 | – | (7,400) |
| Operating profit | 131,505 | 12,192 | |
| Interest income | 3,689 | 257 | |
| Interest expense | (67,007) | (31,503) | |
| Capitalised financing fees written off | (9,314) | – | |
| Other finance expense | (1,078) | (703) | |
| Finance expense – net | (73,710) | (31,949) | |
| Share of profit of equity-accounted investees, net of tax | 12 | 856 | – |
| Profit/(loss) before income tax | 72,749 | (19,757) | |
| Income tax expense | 6 | (1,015) | (24) |
| Profit/(loss) for the financial year | 71,734 | (19,781) | |
| Other comprehensive income: | |||
|---|---|---|---|
| Item that may be subsequently reclassified to income statement | |||
| Fair value (losses)/gains on cash flow hedges – interest rate swaps and caps | (7,266) | 2,815 | |
| Reclassification to profit or loss | 410 | (162) | |
| (6,856) | 2,653 | ||
| Total comprehensive income/(loss) | 64,878 | (17,128) | |
| Earnings/(loss) per share attributable to the equity holders of the Company (expressed in USD per share) |
|||
| Basic and diluted earnings/(loss) per share | 7 | 0.21 | (0.16) |
| Diluted earnings/(loss) per share | 7 | 0.21 | (0.16) |
# “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 2019
| Note | 2019 USD’000 |
2018 USD’000 |
|
| Vessels | 8 | 2,123,179 | 1,027,877 |
| Dry docking and scrubbers | 8 | 59,306 | 26,465 |
| Vessels under construction | 8 | – | 117,495 |
| Right-of-use assets | 8 | 129,366 | – |
| Other property, plant and equipment | 100 | – | |
| Total property, plant and equipment | 2,311,951 | 1,171,837 | |
| Intangible assets | 3,519 | – | |
| Total intangible assets | 3,519 | – | |
| Derivative financial instruments | 19 | – | 3,158 |
| Deferred tax assets | 36 | – | |
| Loans receivable from joint venture | 11 | 29,584 | – |
| Associated companies and joint venture | 12 | 1,718 | – |
| Total other non-current assets | 31,338 | 3,158 | |
| Total non-current assets | 2,346,448 | 1,174,995 | |
| Inventories | 9 | 6,986 | 22,660 |
| Trade and other receivables | 10 | 233,489 | 63,957 |
| Derivative financial instruments | 19 | 2,737 | 4 |
| Cash and cash equivalents | 13 | 91,612 | 52,463 |
| Total current assets | 334,824 | 139,084 | |
| Total assets | 2,681,272 | 1,314,079 | |
| Share capital | 15 | 3,703 | 1,962 |
| Share premium | 15 | 704,834 | 221,220 |
| Contributed surplus | 15 | 537,112 | 537,112 |
| Other reserves | 16 | (5,725) | 53,169 |
| Treasury shares | (500) | – | |
| Accumulated losses | (120,920) | (242,384) | |
| Total shareholders’ equity | 1,118,548 | 571,079 | |
| Borrowings | 18 | 1,234,796 | 613,044 |
| Other payables | 19 | 1,238 | 4,436 |
| Derivative financial instruments | 20 | 6,514 | – |
| Total non-current liabilities | 1,242,548 | 617,480 | |
| Borrowings | 18 | 213,330 | 76,940 |
| Derivative financial instruments | 19 | – | 34 |
| Current income tax liabilities | 1,416 | 27 | |
| Trade and other payables | 20 | 105,474 | 48,519 |
| Total current liabilities | 320,220 | 125,520 | |
| Total liabilities | 1,562,768 | 743,000 | |
| Total equity and liabilities | 2,661,272 | 1,314,079 | |
Consolidated Statement of Changes in Equity
For the financial year ended 31 December 2019
| 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 31 December 2018 | 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 ordinary shares | 15 | 271 | 71,742 | – | – | – | – | – | – | – | 72,013 |
| Transfer of reserve | |||||||||||
| Transfer of reserve | – | – | – | (50,011) | – | – | – | – | 50,011 | – | |
| Total comprehensive income | |||||||||||
| Total comprehensive income for the financial period | – | – | – | – | – | (6,856) | – | – | 65,936 | 59,080 | |
| Balance at 30 June 2019 | 75,445 | 633,092 | 537,112 | – | (34) | (6,514) | (500) | 823 | (126,718) | 1,112,706 | |
| Balance at 1 January 2018 | 1,165 | 26,761 | 537,112 | 50,011 | – | 505 | – | – | (217,735) | 397,819 | |
| Adjustment on initial application of IFRS 15. net of tax | – | – | – | – | – | – | – | – | (4,868) | (4,868) | |
| Related balance at 1 January 2018 | 1,165 | 26,761 | 537,112 | 50,011 | – | 505 | – | (222,603) | 392,951 | ||
| Issuance of new shares | 15 | 797 | 164,459 | – | – | – | – | – | – | – | 195,256 |
| Total comprehensive loss for the financial year | – | – | – | – | – | 2,653 | – | – | (19,781) | (17,128) | |
| Balance at 31 December 2018 | 1,962 | 221,220 | 537,112 | 50,011 | – | 3,158 | – | – | (242,384) | 571,079 | |
Consolidated Statement of Cash Flows
For the financial year ended 31 December 2019
| Note | 2019 USD’000 |
2018 USD’000 |
|
| Cash flows from operating activities | |||
|---|---|---|---|
| Profit/(loss) for the financial year | 71,734 | (19,781) | |
| Adjustments for: | |||
| – income tax expense | 1,015 | 24 | |
| – depreciation and amortisation charges | 131,505 | 56,865 | |
| – impairment charge on vessels – net | – | 7,400 | |
| – loss on disposal of vessel | 732 | – | |
| – amortisation of deferred income | – | (1,399) | |
| – amortisation of prepaid finance lease expenses | 407 | – | |
| – interest income | (3,689) | (257) | |
| – interest expense | 67,007 | 31,503 | |
| – capitalised financing fees written off | 9,314 | – | |
| – other finance expense | 1,078 | 703 | |
| – share of profit of equity-accounted investees, net of tax | (856) | – | |
| – equity-settled share-based payment transactions | 823 | – | |
| Operating cash flow before working capital changes | 279,070 | 75,058 | |
| Changes in working capital: | |||
| – inventories | 21,108 | (8,100) | |
| – trade and other receivables | (83,308) | (11,530) | |
| – trade and other payables | 25,849 | 4,254 | |
| Cash generated from operations | 242,719 | 59,682 | |
| Income tax paid | (330) | (12) | |
| Net cash provided by operating activities | 242,389 | 59,670 | |
| Cash flows from investing activities | |||
| Interest income received | 1,717 | 257 | |
| Loan to joint venture company | (53,150) | – | |
| Repayment of loan by joint venture company | 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) | – | |
| Proceeds from disposal of vessel | 9,799 | – | |
| Purchase of property, plant and equipment | (278,574) | (17,249) | |
| Net cash used in investing activities | (281,994) | (16,992) | |
| Cash flows from financing activities | |||
| Proceeds from borrowings from external financial institutions | 718,300 | 36,000 | |
| Proceeds from borrowings from a related corporation | – | 81,000 | |
| Proceeds from borrowings from non-related parties | 3,117 | – | |
| Repayment of borrowings to external financial institutions | (598,293) | (164,014) | |
| Repayment of borrowings to a related corporation | (44,525) | – | |
| Repayment of borrowings to non-related parties | (375) | – | |
| Repayment of finance lease liabilities | (11,727) | – | |
| Repayment of other lease liabilities | (27,283) | – | |
| Payment of financing fees | (6,629) | – | |
| Interest paid to external financial institutions | (55,208) | (27,868) | |
| Interest paid to a related corporation | (1,901) | (2,045) | |
| Repurchase of treasury shares | (500) | – | |
|
Proceeds from issuance of common shares (net of capitalised listing fees) |
15 | 72,013 | |
| Other finance expense paid | (1,771) | (660) | |
| Net cash provided by/(used in) financing activities | 45,218 | (31,587) | |
| Net increase in cash and cash equivalents | 5,613 | 11,091 | |
| Cash and cash equivalents at beginning of the financial year | 52,463 | 41,372 | |
| Additional cash and cash equivalents from merger | 33,536 | – | |
| Cash and cash equivalents at end of the financial year | 13 | 91,612 | 52,463 |
Reconciliation of liabilities arising from financing activities
| Non-cash changes (USD’000) | ||||||||
| 1 January 2019 USD’00 |
Borrowings/derivatives acquired on merger USD’000 |
Financial cash flows1 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 |
| Finance lease liabilities | – | 96,425 | (11,727) | – | 4,273 | – | 401 | 89,372 |
| Other lease liabilities (Note 2.3 and 21(a)) | 25,019 | 40,798 | (27,283) | 90,921 | 4,579 | – | – | 134,034 |
| Derivative financial instruments | (3,128) | 2,816 | (405) | – | 410 | 6,856 | (35) | 6,514 |
| Non-cash changes (USD’000) | |||||||
| 1 January 2018 USD’000 |
Financial cash flows (i) USD’000 |
Borrowings capitalised via issuance of shares | Interest expense | Fair value changes on cash flow hedges | Other finance expense | 31 December 2018 USD’000 |
|
| Bank borrowings | 771,874 | (156,034) | – | 29,613 | – | – | 645,456 |
| Loan from a related corporation | 78,955 | (36,476) | 2,052 | – | – | 44,531 | |
| Derivative financial instrument | (508) | 152 | – | (162) | (2,653) | 43 | (3,128) |
(i) The cash flows make up the net amount of proceeds from borrowings, repayments of borrowings, interest expense and financing fees paid in the statement of cash flows.