OLYMPIC SHIP AS
CONSOLIDATED FINANCIAL STATEMENT
31.08.2013
OLYMPIC SHIP CONSOLIDATED FINANCIAL STATEMENT 31.08.2013
Olympic Ship AS reports operating revenues of NOK 788 m as per the second tertial of 2013. Operating profit before depreciation
(EBITDA) was NOK 362 m and net profit after tax was NOK 77 m.
In the second tertial, operating revenues were NOK 431 m, operating profit before depreciation (EBITDA) NOK 221 m and earnings
before tax were NOK 68 m.
GENERAL INFORMATION
The interim financial statement is prepared in accordance with the IFRS rules and is audited. Comparison numbers for 2012 are also prepared in
accordance with IFRS. The report should be read in conjunction with the annual report for 2012 as the accounting principles used in the annual
report are also applied to the interim report. Figures in parentheses are from the corresponding period in 2012.
EVENTS IN THE SECOND TERTIAL:
• In May the MPSV vessel Olympic Orion was awarded a medium term contract with BP UK. The contract started in May.
PROFIT AND LOSS STATEMENT PER SECOND TERTIAL 2013
The group had operating income of NOK 787,9 m (NOK 660,5 m) in the period. The operating costs amounted to NOK 528,7 m (NOK 494,3 m).
Operating profit before depreciation (EBITDA) was NOK 425,8 m (NOK 408,6 m). Operating profit after depreciations was NOK 259,1 m (NOK
166,2).
Net financial items was NOK -187,5 m (NOK -100,2). Net profit after tax was NOK 77,0 m (NOK 48,9 m).
The group operated 2 more vessels in the period per second tertial of 2013 compared with the same period in 2012. The This increased activity,
increased both revenues and operational costs. Six vessels had yard stays with dockings in the period and influenced on the operating profit. The
financial costs are higher due to the increase in interesting bearing debt. In the period for 2012, the group also had currency gains not achieved
in 2013.
BALANCE SHEET PER SECOND TERTIAL OF 2013
Total assets for the group amounted to NOK 7,4 bn (6,9 bn). Fixed assets were NOK 6,2 bn (NOK 5,7 bn) of which vessels amounted to NOK 6,0
bn (NOK 5,6 bn). Advances to yards related to vessels under construction amounted to NOK 145,2 m (NOK 93,2 m). Current Assets amounted to
NOK 1,2 bn (NOK 1,2 bn) of which NOK 605,6 m (NOK 803,8 m) was Cash.
Total Equity amounted to NOK 2,8 bn (NOK 2,7 bn), corresponding to an equity ratio of 37% (38%).
Based on the market value of the fleet (average broker estimates) the group has substantially higher Value Adjusted Equity. The interest-bearing
debt related to the long-term financing of the fleet amounts to NOK 4,4 bn (NOK 4,0 bn). Short-term debt, excluding Current Liability of LongTerm Debt, amounted to NOK 259,4 m (NOK 212,3 m). Working Capital of the company was NOK 594,8 m (NOK 620,6 m) at end of the period.
The new-building programme of the Olympic Ship group consists of 7 vessels, (including 1 vessel with minority interests) of which 5 vessels have been
delivered. The remaining new-buildings are 1 subsea/construction vessel which was delivered in October 2013 and a second vessel to be delivered in
March 2014. After the completion of the new-building programme, will 13 of a total of 21 vessels be classified as subsea or construction vessels.
As a result, Olympic will then be one of the largest ship-owners in these classifications.
At end of the period, the Company has a strong balance sheet with good liquidity, good working capital and a solid equity position.
EVENTS AFTER THE FIRST TERTIAL
• Building nr 362 (christened “Olympic Ares”) was delivered from Kleven in October.
• The MPSV vessel Olympic Electra has signed a long-term contract with Centrica with operations starting in October.
FLEET, CONTRACT COVERAGE AND WORKING RATE
By end of the period the fleet consisted of the following vessels:
Type
In operation
NB
Total
PSV
2
-
2
MPSV
5
-
5
AHTS
4
-
4
Subsea
4
2
6
OCV
2
-
2
Sum
17
2
19
The group also owns minority shares in 2 more PSV vessels.
The contract coverage for the remaining part of 2013 is about 65%. The work / utilization rate for the whole fleet in the period was 83%.
MARKET
The market in the North Sea was weak in the beginning part of 2013. Following the initial period, the market balance improved resulting in higher
rate levels. Some PSV vessels have been awarded term contracts and thus improved the spot market for the remaining vessels. We see improved
conditions in the subsea market. Increasing rig-activity has also contributed positively to the AHTS-market. The outlook is positive and overall demand
is expected to increase, especially for the subsea and construction fleet.
FINANCIAL RISK
The Company`s revenues are earned in NOK, USD, GBP and EUR, thus the group is exposed to currency fluctuations. This exposure is hedged partly
by costs in the same currencies, and by using hedging instruments in the currency markets. The Company is also exposed to fluctuations in interest
rates. This risk is well covered through fixed interest rates for part of the long-term debt in the group.
The group has made prepayments to shipyards for vessels under construction. These deposits are secured by bank guarantees or parent company
guarantees.
CONSOLIDATED INCOME STATEMENT
Olympic Ship AS
Note
31.08.2013
31.08.2012
Charter hire
787 851 320
660 489 414
Operating Income
787 851 320
660 489 414
OPERATING INCOME AND -EXPENSES
259 875 888
246 805 261
Operating expenses ship
Crew costs
3
129 673 060
126 066 028
Other operating expenses
36 235 942
35 695 023
425 784 890
408 566 313
102 930 353
85 750 266
Operating expenses
528 715 244
494 316 579
Operating profit
259 136 076
166 172 835
Income from associated companies
-387 045
-6 727 658
Other financial income
83 892 511
76 737 696
271 043 768
170 238 821
-187 538 303
-100 228 783
Operating profit before tax
71 597 773
65 944 053
Tax on ordinary result
-5 354 555
17 061 799
Net profit for the period
76 952 328
48 882 254
Total operating expenses before depreciation
Depreciation
4
Financial income and expenses
Other financial expenses
Net financial income and expenses
Brought forward
13 391 377
4 022 608
To other equity
Net profit minority interests
63 560 951
44 859 646
Net brought forward
76 952 328
48 882 254
CONSOLIDATET BALANCE SHEET
Olympic Ship AS
Note
31.08.2013
31.08.2012
5 952 635 000
5 561 434 000
55 433 361
62 619 867
28 000 000
0
145 233 920
93 245 493
15 575 382
18 204 721
6 196 877 664
5 735 504 081
26 330 023
25 032 826
257 029 375
137 702 719
Operating income not yet invoiced
16 628 687
19 569 859
Other short term receivables
184 913 368
146 627 452
138 844 921
83 413 761
ASSETS
Fixed assets
Tangible fixed assets
Vessels
4
Financial fixed assets
Investments in associated companies
Loans to associated companies
Contract newbuilding
5
Other long term receivables
Total fixed assets
Current assets
Stocks
Stocks
6
Receivables
Trade receivables
Investments
Shares and other investments
Cash and bank deposits
Cash and bank deposits
605 580 246
803 831 663
Total current assets
1 229 326 618
1 216 178 279
7 426 204 282
6 951 682 360
Total assets
Note
31.08.2013
31.08.2012
941 097
941 097
226 246 237
226 246 237
2 170 890 093
2 084 103 591
363 483 675
335 835 397
2 761 561 102
2 647 126 322
5 535 512
13 706 355
550 000 000
250 000 000
3 474 607 849
3 376 328 802
LIABILITIES AND EQUITY
Equity
Share capital
8
Share premium reserve
Other equity
Minority interests
Total equity
7
Liabilities
Provisions
Deffered tax
Other long-term liabilities
Bonds
Secured loans
Other long term liabilities
0
68 942 813
Total long term liabilities
4 030 143 361
3 708 977 970
375 070 665
383 293 081
76 374 961
81 114 814
162 770
4 652 344
Current liabilities
Secured loans
Trade creditors
Tax payable
Public duties payable
66 750
3 926
5 000 000
0
Other short term liabilities
177 824 674
126 513 903
Total short term liabilities
634 499 819
595 578 068
Total liabilities
4 664 643 180
4 304 556 038
Total equity and liabilities
7 426 204 282
6 951 682 360
Advances from customers
Fosnavåg
October 28th. 2013
Board of Directors Olympic Ship AS
Stig Remøy
Chairman of the Board of Directors
Ragnvald Nærø
Board member
Svein Tømmerdal
Board member
Bjørn Inge Kvalsund
Managing director
Runar Larsen
Board member
STATEMENT OF CASH FLOWS
Olympic Ship AS
31.08.13
31.08.12
71 597 773
65 944 053
Taxes paid in the period
-23 416 544
-59 327 500
Depreciation
102 930 353
85 750 266
Changes in net financial items and associated companies
176 085 726
111 228 070
-597 535
-3 602 749
Cash flows from operating activities
Profit before income taxes
Change in inventory
-110 776 489
33 102 721
Change in trade creditors
Change in trade debtors\operating income not yet invoiced
-26 921 234
12 638 043
Change in other provisions
-96 237 509
-26 907 302
92 664 541
218 825 602
-79 674 353
-831 458 598
Net cash flow from operating activities
Cash flows from investing activities
Purchase of fixed assets
Contribution received
Proceeds from sale of shares and investments in other companies
Purchase of shares and investments in other companies
Change in contract newbuilding
Net cash flow from investing activities
1 650 000
0
0
57 992 255
-3 133 206
0
-103 095 170
204 321 539
-184 252 729
-569 144 804
Cash flows from financing activities
Proceeds from long term loans
275 000 000
827 500 000
Repayment of long term loans
-380 517 350
-279 900 195
-133 117 489
-109 924 760
12 650 000
44 297 500
Paid interest and costs long term loans
New equity received
Changes of ownership
Net cash flow from financing activities
Net increase/decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
0
-123 113 581
-225 984 839
358 858 964
-317 573 027
8 539 762
923 153 273
795 291 901
605 580 246
803 831 663
NOTES TO THE FINANCIAL STATEMENT 31.08.2013 - OLYMPIC SHIP AS GROUP
NOTE 1
ACCOUNTING PRINCIPLES
The accounting principles and valuation of assets and liabilities are otherwise the same as for the annual report 2012. The consolidated financial statement
is prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed by the EU, with the additional requirements in accordance with
the Norwegian accounting act.
NOTE 2
GENERAL ISSUES ABOUT THE GROUP
The purchase method is applied when accounting for business combinations.
Transactions between group companies have been eliminated in the consolidated financial statement.
Other owners share of profits and equity are recorded as minority interests.
Shares in subsidiaries are eliminated against the equity in subsidiaries.
Associated companies are entities in which the Group has a significant influence but does not exercise control the management of its finances and operations.
This influence occurs when the Group owns 20%-50% of the company.
NOTE 3
SALARY AND PERSONELL COSTS
The operating crew are employed by Olympic Crewing AS and other staffing company.
NOTE 4
FIXED ASSETS
Vessels
Periodic maintenance
Total
6 308 114 698
205 351 624
6 513 466 322
Additions
21 256 332
56 768 021
78 024 353
Disposals
-
-
-
6 329 371 030
262 119 645
6 591 490 675
13 698 000
-
13 698 000
Accumulated depresiations
-529 436 730
-123 116 945
-652 553 675
Book value 31.08
5 813 632 300
139 002 700
5 952 635 000
69 016 032
33 914 321
102 930 353
27 - 30 years
3 - 5 years
Acquisition cost at 01.01.
Acquisition cost at 31.08
Revaluation before 01.01.
Depreciation for the year
Economical life is estimated
NOTE 5
CONTRACT NEWBULDING
The group has entered into contracts for delivery of two new vessels. The vessels are expected to be delivered in Q3 2013 and Q1 2014. Net paid as per
31.08.2013 on these contracts is NOK 145.233.920,-.
NOTE 6
STOCKS
Inventories consist of bunkers, supplies and spare parts recognized at the lowest of cost and net selling price.
NOTE 7
EQUITY
Share capital
Share premium
reserve
Other Equity
Minority interest
Total
941 097
226 246 237
2 107 329 142
337 442 298
2 671 958 774
Paid equity
-
-
-
12 650 000
12 650 000
This period netprofit
-
-
63 560 951
13 391 377
76 952 328
941 097
226 246 237
2 170 890 093
363 483 675
2 761 561 102
Equity 01.01.
This year change
Equity 31.08.
NOTE 8
SHARE CAPITAL AND SHAREHOLDER INFORMATION
The company’s share capital is NOK 941.097,20 divided on 9.410.972 shares each with a nominal value of NOK 0,10.
Ownership structure
The company’s shareholders 31.08. :
Shareholder
Number of shares
Ownership (%)
8 659 442
92,01 %
Larsen Invest AS
258 092
2,74 %
Hallvar Remøy
145 044
1,54 %
Olympic Holding AS
Bård Remøy
136 326
1,45 %
Even Remøy
91 938
0,98 %
Omega Maritime AS
72 616
0,77 %
Tuja Invest AS
47 514
0,50 %
9 410 972
100,00 %
Total
NOTE 9
FINANCIAL MARKET RISK
The company group use derivate instruments to manage financial market risk.
Interest risk
The company is exposed to interest risk in short and medium term as part of the company’s debt has floating interest rate.
Exchange rate risk
The company is both directly and indirectly exposed to financial risk due to changes in exchange rates. The company has entered into agreements to reduce
the risk.