MICLYN EXPRESS OFFSHORE LIMITED (Registration number 42388) · 2014. 2. 28. · MICLYN EXPRESS...

MICLYN EXPRESS OFFSHORE LIMITED (Registration number 42388)

REPORT AND FINANCIAL STATEMENTS HALF YEAR ENDED 31 DECEMBER 2013

MICLYN EXPRESS OFFSHORE LIMITED REPORT AND FINANCIAL STATEMENTS C O N T E N T S PAGE Directors’ Report 1

Statement of Directors 2

Independent auditors’ review report 3

Condensed consolidated statement of comprehensive income 4

Condensed consolidated statement of financial position 5

Condensed consolidated statement of changes in equity 6 - 7

Condensed consolidated statement of cash flows 8 - 9

Notes to condensed consolidated financial statements 10 – 21

DIRECTORS’ REPORT

The directors of Miclyn Express Offshore Limited (the “Company”) submit herewith the Directors’ Report for the half-year ended 31 December 2013. The Directors’ Report is as follows: - DIRECTORS

The names of the directors of the Company during and as at the end of the half year are:

• Paul Kang – Co-Chairman, Non-Independent, Non-Executive Director • Nathaniel Childres – Co-Chairman, Non-Independent, Non -Executive Director • Diederik Christiaan de Boer – Chief Executive Officer, Executive Director • Shane Gong – Non-Independent Director • Jessica Lau – Non-Independent Director

Signed in accordance with a resolution of the Directors. .................................................................

Nathaniel Childres

.................................................................

Diederik Christiaan de Boer 27 February 2014

MICLYN EXPRESS OFFSHORE LIMITED

STATEMENT OF DIRECTORS

In the opinion of the directors, the condensed consolidated financial statements of the Group as set out on pages 4 to 21 are drawn up so as to give a true and fair view of the state of affairs of the Group for the half-year ended 31 December 2013 and of the results, changes in equity and cash flows of the Group for the half-year then ended and at the date of this statement, there are reasonable grounds to believe that the Group will be able to pay its debts as and when they fall due.

ON BEHALF OF THE BOARD OF DIRECTORS

.................................................................

Nathaniel Childres

.................................................................

Diederik Christiaan de Boer 27 February 2014

INDEPENDENT AUDITORS’ REVIEW REPORT

TO THE MEMBER OF MICLYN EXPRESS OFFSHORE LIMITED

Introduction

We have reviewed the accompanying half-year condensed consolidated financial statements of Miclyn

Express Offshore Limited and its subsidiaries (the “Group”), which comprise the condensed consolidated

statement of financial position of the Group as at 31 December 2013, the condensed consolidated statement

of comprehensive income, condensed consolidated statement of changes in equity, and condensed

consolidated statement of cash flows of the Group for the half-year ended 31 December 2013 and selected

explanatory notes, as set out on pages 4 to 21.

Management is responsible for the preparation and presentation of these half-year condensed consolidated

financial statements in accordance with International Accounting Standard 34, Interim Financial Reporting

(“IAS 34”). Our responsibility is to express a conclusion on these condensed consolidated interim financial

statements based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, Review

of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of half-year

financial statements consists of making inquiries, primarily of persons responsible for financial and accounting

matters, and applying analytical and other review procedures. A review is substantially less in scope than an

audit conducted in accordance with International Standards on Auditing and consequently does not enable us

to obtain assurance that we would become aware of all significant matters that might be identified in an

audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying half-

year condensed consolidated financial statements are not prepared, in all material respects, in accordance

with IAS 34.

Public Accountants and Chartered Accountants

Singapore

27 February 2014

Financial report

for the half-year ended 31 December 2013

Page 4

Condensed consolidated statement of comprehensive income

(Restated)

Note

Half-year ended

31 December 2013

Half-year ended

31 December 2012

US$’000 US$’000

Revenue 113,812 121,728 Cost of sales (69,213) (73,948) Gross profit 44,599 47,780 Other gains and losses 2,166 1,844 Administration expenses 3 (17,544) (21,153) Finance costs (9,334) (3,551) Share of profit from joint ventures 4 4,616 2,614 Profit before tax 5 24,503 27,534 Income tax expense (1,718) (1,814) NET PROFIT FOR THE HALF-YEAR 22,785 25,720

Other comprehensive income Item that may be reclassified subsequently to profit or loss: Exchange differences arising on translation of foreign operations (2,564) 596 Other comprehensive income for the half-year, net of tax (2,564) 596 TOTAL COMPREHENSIVE INCOME FOR THE HALF-YEAR 20,221 26,316

Net profit attributable to: Owners of the Company 21,423 25,162 Non-controlling interests 1,362 558 22,785 25,720

Total comprehensive income attributable to: Owners of the Company 18,859 25,758 Non-controlling interests 1,362 558 20,221 26,316

Financial report


Page 5

Condensed consolidated statement of financial position

(Restated) (Restated)

Note 31 December

2013 30 June

2013 30 June

2012 US$’000 US$’000 US$’000 Assets Current assets Cash and cash equivalents 29,764 14,567 14,469 Trade and other receivables 6 75,995 81,511 78,541 Loan to immediate holding company 7 137,613 - - Inventories and work in progress 6,362 5,771 5,911

249,734 101,849 98,921 Assets classified as held for sale 8 12,273 1,782 - Total current assets 262,007 103,631 98,921 Non-current assets Property, plant and equipment 463,746 451,889 397,294 Deferred tax assets 452 441 728 Intangible assets 9 58,932 59,740 63,274 Investment in joint ventures 4 56,125 32,715 27,043 Total non-current assets 579,255 544,785 488,339 Total assets 841,262 648,416 587,260 Liabilities Current liabilities Trade and other payables 55,389 48,155 48,312 Borrowings 10 13,950 15,347 19,511 Current tax liabilities 2,337 1,604 6,044 Provisions 331 331 373

Total current liabilities 72,007 65,437 74,240 Non-current liabilities Borrowings 10 219,978 198,644 162,367 Senior secured guaranteed bonds 11 145,768 - - Deferred tax liabilities 165 169 247 Provisions 575 741 1,051 Total non-current liabilities 366,486 199,554 163,665 Total liabilities 438,493 264,991 237,905 Net assets 402,769 383,425 349,355 Equity Capital and reserves Share capital -* 27,786 27,470 Share premium - 162,613 156,524 Reserves 140,109 (46,849) (41,544) Retained earnings 259,770 238,347 206,423 Equity attributable to owners of the Company 399,879 381,897 348,873 Non-controlling interests 2,890 1,528 482 Total equity 402,769 383,425 349,355

* Amount is less than US$1,000

Financial report


Page 6

Condensed consolidated statement of changes in equity

Note Share capital

Share premium

Other equity

reserves Translation

reserve

Share-based payments reserve

Retained earnings

Attributable to owners

of the Company

Non-controlling interests Total

US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 Balance at 1 July 2012 27,470 156,524 (45,143) 1,875 1,724 206,423 348,873 482 349,355 Profit for the period - - - - - 25,162 25,162 558 25,720 Other comprehensive income for the period, net of tax

-

-

-

596

-

- 596 - 596

Total comprehensive income for the period - - - 596 - 25,162 25,758 558 26,316 Payment of dividends to shareholders - - - - - (8,355) (8,355) - (8,355) Issue of share capital

(1) 12 175 - - (187) - - - -

Recognition of share-based payment - - - - 592 - 592 - 592 Balance at 31 December 2012 27,482 156,699 (45,143) 2,471 2,129 223,230 366,868 1,040 367,908

Financial report


Page 7

Condensed consolidated statement of changes in equity (continued)

Note Share capital

Share premium

Other equity

reserves Translation

reserve

Share-based payments reserve

Retained earnings

Attributable to owners

of the Company

Non-controlling interests Total

US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 Balance at 1 July 2013 27,786 162,613 (45,143) (4,059) 2,353 238,347 381,897 1,528 383,425 Profit for the period - - - - - 21,423 21,423 1,362 22,785 Other comprehensive income for the period, net of tax

-

-

-

(2,564)

-

- (2,564) - (2,564)

Total comprehensive income for the period - - - (2,564) - 21,423 18,859 1,362 20,221

Issue of share capital (2)

21 409 - - (430) - - - -

Adjustment for amalgamation (Note 2) (27,807) (163,022) 190,829 - - - - - - Transfer to other equity reserve - - 1,046 - (1,046) - - - - Settlement of share based payments - - - - (1,236) - (1,236) - (1,236) Recognition of share-based payment - - - - 359 - 359 - 359 Balance at 31 December 2013 - - 146,732 (6,623) - 259,770 399,879 2,890 402,769

(1)

On 26 September 2012, there was an issue of 123,000 ordinary shares with par value of US$0.09 (A$0.10) of the Company for settlement of consideration relating to share-based payments

(2) On 26 September 2013, there was an issue of 216,000 ordinary shares with par value of US$0.09 (A$0.10) of the Company for settlement of consideration relating to share-based

payments.

Financial report


Page 8

Condensed consolidated statement of cash flows

(Restated)

Note

Half-year ended 31 December

2013


2012 US$’000 US$’000 Cash flows from operating activities Profit for the half-year 22,785 25,720 Adjustments for: Income tax expense recognised in profit 1,718 1,814 Share of profit of joint ventures (4,616) (2,614) Amortisation of provisions (166) (186) Amortisation of intangible assets 111 148 Amortisation of drydocking expenditure 2,208 1,734 Depreciation of property, plant and equipment 11,101 8,884 Allowance for doubtful debts 392 4,896 Gain on disposal of property, plant and equipment (net) (334) (1,388) Property, plant and equipment written off 9 - Interest expense 8,974 3,699 Interest income (50) (16) Expense recognised in respect of share-based payments 359 405 Unrealised currency translation gain (17) (809)

42,474 42,287 Movements in working capital Decrease/(increase) in trade and other receivables 4,560 (4,814) (Increase)/decrease in inventories (632) 294 Increase/(decrease) in trade and other payables 5,003 (5,640)

Cash generated from operations 51,405 32,127 Income tax paid (451) (3,163) Interest paid (2,925) (3,286)

Net cash generated from operating activities 48,029 25,678

Cash flows from investing activities Interest received 50 16 Proceeds from disposal of property, plant and equipment 2,539 5,823 Payments for property, plant and equipment (38,701) (39,621) Loan to immediate holding company (137,613) - Acquisition of investment in joint ventures (18,900) -

Net cash used in investing activities (192,625) (33,782)

Financial report


Page 9

Condensed consolidated statement of cash flows (continued)

(Restated)

Note


2013


2012 US$’000 US$’000 Cash flows from financing activities Dividends paid to shareholders - (8,355) Net proceeds from issue of bond 159,350 - Net proceeds of borrowings 264,634 67,848 Upfront expenses due to bonds and borrowings (21,459) - Settlement of share based payments (1,236) - Repayment of borrowings (241,214) (52,406) Net cash generated from financing activities 160,075 7,087 Net increase/(decrease) in cash and cash equivalents 15,479 (1,017) Cash and cash equivalents at the beginning of the half-year 14,567 14,469 Effects of exchange rate changes on the balance of cash held in foreign currencies

(282) 58

Cash and cash equivalents at the end of the half-year 29,764 13,510

Financial report


Page 10

Notes to the Condensed Consolidated Financial Statements 1. Significant accounting policies Statement of compliance The half-year financial report is a general purpose financial report prepared in accordance with International Accounting Standard (“IAS”) IAS 34 Interim Financial Reporting. The half-year financial report does not include notes of the type normally included in an annual financial report and should be read in conjunction with the most recent annual financial report. Adoption of new and revised accounting standards The accounting policies and methods of computation adopted in the preparation of the half-year financial report are consistent with those adopted and disclosed in the Company’s 2013 annual financial report for the financial year ended 30 June 2013. The new or revised International Financial Reporting Standards (“IFRS”) and Interpretations of International Financial Reporting Standards, which became mandatory as of 1 July 2013, do not result in substantial changes to the Group’s accounting policies except as disclosed below. . IFRS 11 Joint Arrangements and IAS 28 Investments in Associates and Joint Ventures IFRS 11 supersedes IAS 31 Interests in Joint Ventures. IFRS 11 classifies a joint arrangement as either a joint operation or a joint venture based on the parties’ rights and obligations under the arrangement. The existence of a separate legal vehicle is no longer the key factor. A joint operation is a joint arrangement whereby the parties that have joint control have rights to the assets and obligations for the liabilities. A joint venture is a joint arrangement whereby the parties that have joint control have rights to the net assets. The joint venturer should use the equity method under the revised IAS 28 Investments in Associates and Joint Ventures to account for a joint venture. The option to use proportionate consolidation method has been removed. IFRS 11 takes effect from financial years beginning on or after 1 January 2013, with retrospective application subject to transitional provisions. On adoption, a jointly controlled entity may be classified as a joint operation or joint venture, depending on the rights and obligations of the parties to the joint arrangement. For arrangements that are joint ventures and were previously proportionately consolidated as jointly controlled entities, the group will have to adopt equity accounting. The application of IFRS 11 has changed the accounting of the group’s investments in joint ventures, which were classified a jointly controlled entities under IAS 31 and had been accounted for using the proportionate consolidation method. Under IFRS 11, the joint ventures are accounted for using the equity method, resulting in aggregation of the group’s proportionate share of the joint ventures net assets and items of profit or loss and other comprehensive income into a single line item which are presented in the interim condensed consolidated statement of financial position and interim condensed consolidated statement of comprehensive income as ‘investment in joint venture’ and ‘share of profits(loss) of joint venture’ respectively. The adoption of IFRS 11 results in a decrease in total assets and total liabilities, and reclassifications of certain profit or loss line items. The change in accounting for the group’s investments in joint ventures has been applied in accordance with the relevant transitional provisions set out in IFRS 11. Comparative amounts have been restated accordingly. The initial investment as at 1 July 2012 for the purposes of applying the equity method is measured as the aggregate of the carrying amounts of the assets and liabilities that the group had previously consolidated. The impact of the changes to comparative figures is disclosed in Note 14.

Financial report


Page 11

1. Significant accounting policies (continued) IFRS 11 Joint Arrangements and IAS 28 Investments in Associates and Joint Ventures (continued) The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these half-year condensed consolidated financial statements. Basis of preparation The condensed consolidated financial statements have been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in United States dollars, rounded to the nearest thousand, unless otherwise noted. 2. Accounting for Amalgamation On 16 December 2013, Miclyn Express Offshore Limited (“MEOL”) announced an amalgamation with Manta 2 Holdings Limited (a wholly-owned subsidiary of Manta Holding Limited, an entity jointly owned by two existing significant shareholders of MEOL), in accordance with the Companies Act 1981 of Bermuda and the Amalgamation Agreement dated 13 November 2013 entered into amongst MEOL, Manta 2 Holdings Limited and Manta Holdings Limited. Subsequently, Manta Holdings Limited became the parent of MEOL. In substance, the transaction was an administrative restructuring of MEOL Group to facilitate MEOL Group’s delisting from the Australian Securities Exchange (“ASX”) and the raising of debt financing.

The major implications of the accounting for the Amalagamation are that condensed consolidated financial statements are prepared in the name of the amalgamated company, MEOL, however comparatives are provided as though the transaction represents a continuation of the financial statements of MEOL Group and accordingly:

1. the assets and liabilities are recognised and measured in these condensed consolidated financial statements at

the carrying amounts of the existing MEOL Group;

2. the retained earnings and other equity balances recognised in these consolidated financial statements are the existing retained earnings and other equity balances of MEOL Group;

3. the amount recognised as issued equity instruments in these consolidated financial statements is that of Manta 2

Holdings Limited and the previous issued equity recorded in the MEOL Group financial statements immediately before the Amalagamation are transferred to other equity reserves; and

4. comparative information presented in these consolidated financial statements is that of MEOL Group.

The significant transactions arising from the Amalagamation and recorded by the Group during this financial period are summarised as follows:

Financial report


Page 12

2. Accounting for Amalgamation (continued)

(i) Financing activities comprise of total funds raised from: • the total proceeds raised from Senior Secured Guaranteed Bonds issued on completion of delisting on the

ASX was US$159.4 million (S$200.0 million); • draw down of new bank loan amounting to US$241.3 million , Offset by funds used for the following financing activities: • loan to immediate holding company for repayment to minority shareholders on completion of delisting on

the ASX amounting to US$137.6 million; • full repayment of Standard Chartered Bank loan of US$241.2 million; and • total expenses incurred relating to the delisting, amalgamation, bond issue and new bank finance facilities

amounting to US$21.5 million.

3. Administration expenses (Restated) Half-year ended

31 December 2013


2012 US$’000 US$’000 Staff and related costs 11,532 13,006 Allowance for doubtful debts 392 4,896 Professional fees 931 1,067 Office rental 811 685 Depreciation & amortisation 564 559 Other admin operating expense 3,314 940 17,544 21,153

During the half year ended 31 December 2012, the company made a provision for doubtful debts of

US$4,554,000 for receivables and deposits in full which are unlikely to be recovered as a result of the company’s cessation of operations in Iran.

4. Joint ventures

(Restated) 31 December

2013 30 June

2013 US$’000 US$’000 Investment in joint ventures 51,509 27,043 Share of post-acquisition profit,

net of dividend received 4,616 5,672

56,125 32,715

Financial report


Page 13

4. Joint ventures (continued)

The details of joint ventures are as follows:

Effective equity interest held

Name of joint ventures and country of incorporation and operation

Principal activities

31 December

2013

30 June

2013 % % Uniwise Holdings Limited

Thailand Investment holding

37.5

37.5

Uniwise Offshore Limited Thailand Offshore support

vessel business

50.0

50.0 Alliance Offshore Service Limited

Hong Kong Ship owner and charterer

50.0

50.0

Alliance Offshore Services Pte Ltd

Singapore Owner and charterer of vessels and barges

50.0

50.0

Uniwise Marine Services Holdings Limited Thailand *

Investment holding 37.5

-

Uniwise Towage Limited Thailand *

Offshore support vessel business

50.0

-

* Acquired during the half-year for a total consideration of US$ 18,900,000.

Summarised financial information in respect of the Group’s joint ventures is set out below:

31 December

2013 30 June

2013 US$’000 US$’000 Total assets 140,068 108,144 Total liabilities (40,524) (42,714) Net assets 99,544 65,430

Group’s share of joint ventures net assets 49,772 32,715

31 December 2013

31 December 2012

US$’000 US$’000 Revenue 21,386 12,466

Profit for the year 9,232 5,228

Group’s share of joint ventures’ profit 4,616 2,614

Financial report


Page 14

5. Profit before tax (Restated)


2013


2012

US$’000 US$’000

Profit before tax for the half-year includes:

a) Revenue from operations Charter revenue 87,457 97,881

Mobilisation/demobilisation income 1,509 252

Ship management income 1,145 3,473

Ship repair income 3,228 4,400

Radio and communication income 103 -

Moorings income 131 -

Project pipes transportation 20,239 15,722

113,812 121,728

b) Other gains and losses

Gain on disposal of property, plant and equipment 341 1,238

Amortisation of provisions * 166 186

Interest income 50 9

Sundry income 204 359

Equipment rental income 15 406

Net foreign exchange losses/(gains) 1,390 (354)

2,166 1,844

c) Depreciation and amortisation

Depreciation of property, plant and equipment 11,101 8,884 Amortisation of drydocking expenditure 2,208 1,734

13,309 10,618 Amortisation of intangible assets 111 148

13,420 10,766

* Provisions represent the fair value of existing fixed rate contracts with customers at date of acquisition of

subsidiaries. Amortisation is provided based on the remaining contract lease period of the off market contracts, ranging from 5 to 9.5 years.

6. Trade and other receivables


2013 30 June

2013 US$’000 US$’000 Trade receivables, net 68,378 71,590 Advances 1,289 1,693 Other receivables 2,715 2,887 Prepayments 2,354 3,345 Deposits 893 751 Insurance claims 366 840 Non trade receivables due from related parties - 405 75,995 81,511

Financial report


Page 15

7. Loan to immediate holding company The Group entered into an agreement to provide a 10 years loan facility in the aggregate principal amount up to US$150 million to Manta Holdings Limited, the immediate holding Company of the Group. The loan is unsecured, interest-free and repayable on demand. 8. Assets classified as held for sale On 24 January 2014, the Group signed an agreement with a 3rd party for the sale of all assets held at the Group’s shipyard in Batam for a total consideration of US$20 million. The assets to be sold have been classified as assets held for sale and are classified as current assets on the statement of financial position. In 2013, the Group entered into an agreement to sell a crew/utility vessel to an external party for a consideration of US$2,200,000. The vessel to be sold was classified as vessels held for sale and classified as a current asset on the statement of financial position. 9. Intangible assets


2013 30 June

2013 US$’000 US$’000 Composition:

Goodwill (Note (a)) 58,536 59,233 Licences 396 507 58,932 59,740

(a) Goodwill (Restated) 31 December

2013 30 June

2013 US$’000 US$’000 Cost and carrying amount:

Balance at beginning of financial year 59,233 62,598 Effect of foreign currency exchange differences (697) (3,365) Balance at end of the financial period 58,536 59,233

10. Borrowings


2013 30 June

2013 US$’000 US$’000 Secured - at amortised cost Current Bank loans 13,950 15,347 Non Current Bank loans 219,978 198,644 233,928 213,991

Financial report


Page 16

10. Borrowings (continued) Terms of outstanding loans were as follows:

(Restated)

Interest rate

Year of Maturity

31 December 2013

30 June 2013

US$’000 US$’000 Secured bank loans - USD syndicated revolving

credit facility LIBOR + 2.45% 2015 - 32,991

- USD syndicated term credit facility

LIBOR + 2.45% 2015 - 181,000

- USD syndicated term credit facility

LIBOR + 2.60% 2018 146,320 -

- USD syndicated revolving credit facility

LIBOR + 2.60% 2018 87,608 -

233,928 213,991

All outstanding bank loans as at 30 June 2013 were fully paid during the half-year.

11. Senior secured guaranteed bonds On 12 December 2013, MEOL issued senior secured guaranteed bonds which mature on 12 December 2016 for SGD 200.0 million (US$159.4 million). The bonds bear interest at a fixed rate of 8.5% per annum and are payable semi-annually in arrears on 12 June and 12 December in each year. Payments on the bonds will be made without withholding or deduction for any taxes of Bermuda. 12. Commitments The Group had the following outstanding commitments:

31 December 2013

30 June 2013

US$’000 US$’000 Capital commitments contracted but not provided for in respect of: Expenditure for vessels, contracted for 56,400 72,066

Financial report


Page 17

13. Segmental information

The Group’s reportable segments under IFRS 8 are offshore support vessels, crew / utility vessels, tugs, barges, coastal survey vessels, third party vessels,

shipyard services and project pipe transportation. (i) Segment revenue and results

The following is an analysis of the Group’s revenue and results by reportable segment:

Segment revenue Elimination Revenue from external customers

Segment profit (loss)

(Restated) (Restated) (Restated) (Restated)

Half-year ended

31 December 2013

Half-year ended

31 December 2012

Half-year ended

31 December 2013

Half-year ended

31 December 2012

Half-year ended

31 December 2013

Half-year ended

31 December 2012

Half-year ended

31 December 2013

Half-year ended

31 December 2012

US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 Offshore support vessels 43,879 38,561 (1,452) (939) 42,427 37,622 18,914 18,999 Crew / utility vessels 23,586 22,611 - (75) 23,586 22,536 11,157 9,021 Tugs 15,669 16,491 (771) (1,902) 14,898 14,589 4,662 5,231 Barges 5,182 7,542 (2,508) (1,424) 2,674 6,118 2,522 6,174 Coastal survey vessels 1,559 1,998 - - 1,559 1,998 152 (192) Third party vessels 4,444 18,795 - - 4,444 18,795 1,294 4,992 Shipyard 26,096 66,547 (22,869) (62,199) 3,227 4,348 568 957 Project pipe transportation 21,214 15,797 (217) (75) 20,997 15,722 5,330 2,598 Total 141,629 188,342 (27,817) (66,614) 113,812 121,728 44,599 47,780 Other gains and losses 2,166 1,844 Central administration costs (17,544) (21,153) Finance costs (9,334) (3,551) Share of profit from joint ventures 4,616 2,614 Profit before tax 24,503 27,534 Income tax expense (1,718) (1,814) Consolidated profit for the half-

year

22,785

25,720

Financial report


Page 18

13. Segmental information (continued)

(ii) Segment assets and liabilities

(Restated)

31 December 2013

30 June 2013

Segment assets US$’000 US$’000

Offshore support vessels 298,883 271,727

Crew / utility vessels 171,708 178,475

Tugs 53,565 45,482

Barges 55,952 38,600

Coastal survey vessels 4,125 4,410

Shipyard 12,908 47,673


Total segment assets 601,293 592,344

Unallocated 239,969 56,072

Consolidated assets 841,262 648,416

Segment liabilities

Offshore support vessels 23,330 14,941

Crew / utility vessels 12,589 12,774

Tugs 12,763 11,865

Coastal survey vessels - 3,219

Shipyard 1,082 5,886


Total segment liabilities 56,663 51,241

Unallocated 381,830 213,750

Consolidated liabilities 438,493 264,991

For the purposes of monitoring segment performance and allocating resources between segments:

• all assets are allocated to reportable segments other than “cash and cash equivalents”, “other receivables and

prepayments”, “intangible assets”, “loan to immediate holding company”, “deferred tax assets” and certain “property, plant and equipment” used for administrative purposes. Goodwill has been allocated to reportable

segments. Assets used jointly by reportable segments are allocated on the basis of the revenues earned by individual reportable segments; and

• all liabilities are allocated to reportable segments other than “borrowings (drawn by a subsidiary of the Group)”,

“senior secured guaranteed bonds”, “other financial liabilities”, “current and deferred taxation”. Liabilities for which reportable segments are jointly liable are allocated in proportion to the cost of sales incurred.

Financial report


Page 19


(iii) Other segment information

Depreciation and Additions to amortisation non-current assets (Restated) (Restated) Half-year

ended 31 December

2013

Half-year ended

31 December 2012

31 December 2013

30 June 2013

US$’000 US$’000 US$’000 US$’000 Offshore support vessels 6,898 4,661 6,283 52,321 Crew / utility vessels 3,179 2,984 14,461 11,899 Tugs 847 643 460 6,192 Barges 1,282 1,307 16,507 10,690 Coastal survey vessels 157 210 13 727 Third party vessels 6 7 - - Shipyard 447 356 232 2,932 Project pipes transportation 40 6 182 81 Unallocated 564 592 563 1,139 13,420 10,766 38,701 85,981 (iv) Geographical information

The Group’s vessels carried out work in four principal geographical areas – Asia, Australia, Middle East, and Other inter-regional.

The Group’s revenue from external customers and information about its segment assets by geographical location are detailed below:

Revenue from external customers Non-current assets (Restated) (Restated) Half-year

ended 31 December

2013

Half-year ended

31 December 2012

31 December 2013

30 June 2013

US$’000 US$’000 US$’000 US$’000 Asia: Indonesia 9,110 6,777 191 11,836 Malaysia 13,629 18,614 42 - Singapore 1,969 49 89,845 65,009 Thailand 15,720 14,429 - - Rest of Asia 3,491 3,956 - - Other inter-regional 12,052 18,472 - - Australia 32,290 33,420 27,232 28,433 Middle East 22,509 23,775 242 270 Others 3,042 2,236 - - 113,812 121,728 117,552 105,548

Vessels (1)

- - 437,985 388,645

Vessels in construction/ work in progress

(1)

-

-

4,953

36,151

Drydocking costs (1)

- - 16,925 10,108

Vessel plant and equipment (1)

- - 1,840 4,333

113,812 121,728 579,255 544,785

Financial report


Page 20


(iv) Geographical information (continued) (1)

The management consider that the nature of the Group’s business precludes a meaningful allocation of vessels and related assets to specific geographical segments as defined under IFRS 8. These vessels, together with the related drydocking costs and vessel equipment are primarily chartered across geographic markets.

(v) Information about major customers

Included in Group’s revenue are:

• Revenue from Offshore Support Vessels and Crew/utility Vessels of US$ 14,862,000 (2012: US$12,267,000) derived from a customer;

• Revenue from Offshore Support Vessels, Tugs, Barges, Third party Vessels and Shipyard services of US$ nil (2012: US$18,033,000) derived from another customer; and

• Revenue from Offshore Support Vessels, Crewboats, Barges, Project Pipes Transportation and Shipyard services of US$ 16,712,000 (2012: US$11,689,000l) derived from another customer.

14. Impact of adoption of IFRS 11 Joint Arrangements

Certain adjustments have been made to the previous years’ financial statements to conform to the current year’s presentation in connection with the adoption of IFRS 11 Joint Arrangements.

As a result, certain line items have been restated as follows:-

Previously

reported

As restated 30 June 2013 30 June 2013 US$’000 US$’000 Condensed consolidated statement of financial position Non-current assets 561,751 544,785 Current assets 111,245 103,631 Non-current liabilities (214,370) (199,554) Current liabilities (75,201) (65,437) Net assets 383,425 383,425

Financial report


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14. Impact of adoption of IFRS 11 Joint Arrangements (continued)

Previously reported

As restated

31 December 2012

31 December 2012

US$’000 US$’000 Condensed consolidated statement of comprehensive income

Revenue 127,961 121,728 Gross profit 51,394 47,780 Profit before tax 27,685 27,534 Income tax expense (1,965) (1,814) Profit for the period 25,720 25,720 Other comprehensive income 596 596 Total comprehensive income for the period 26,316 26,316

Condensed consolidated statement of cash flows Net cash generated from operating activities 30,756 25,678 Net cash used in investing activities (43,883) (33,782) Net cash generated from financing activities 10,936 7,087 Net decrease in cash and cash equivalents (2,191) (1,017)

If the Group had continued to account on a proportionate consolidation basis, revenue and gross profit for the half-year ended 31 December 2013 would have amounted to US$124,505,000 and US$50,600,000 respectively (31 December

2012: US$127,961,000 and US$51,394,000 respectively).

The following amounts are the details of joint ventures which have been aggregated into cost of investment in joint ventures as a result of the adoption of IFRS 11 Joint Arrangement.

30 June 2012 US$’000 Non-current assets 34,264 Current assets 8,218 Non-current liabilities (9,895) Current liabilities (5,544) Investment in joint ventures 27,043

15. Subsequent events

(a) On 24 January 2014, the Group signed an agreement with a 3rd party for the sale of all assets held at the Group’s shipyard in Batam for a total consideration of US$20 million. The sale is subject to certain conditions,

which are yet to be completed.

(b) On 29 January 2014, the Group signed an agreement with the minority shareholders of its pipe transportation subsidiary, Express Offshore Solutions Pte Ltd (“EOS”) for the purchase of the remaining 30% shareholding in

the company for a total consideration of US$6.9 million.

MICLYN EXPRESS OFFSHORE LIMITED (Registration number 42388) · 2014. 2. 28. · MICLYN EXPRESS...

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