Group Performance Review


US$ Million 2015 2014 Change
Revenue 1,260.3 1,718.5 -27%
Cost of services (1,264.4) (1,758.1) +28%
Gross loss (4.1) (39.6) +90%
Pacific Basin Dry Bulk (33.8) (39.4) +14%
PB Towage 6.2 (15.1) >100%
Others (0.2) (1.0) +80%
Underlying loss 27.8 (55.5) +50%
Unrealised derivative
8.8 (28.9)  
Sale of towage assets 2.8 (7.6)  
RoRo and towage exchange
(15) (17.7)  
Provision for onerous
_ (100.9)  
Towage impairments and
_ (70.5)  
Other impairments and
(0.8) (3.9)  
Loss attributable
   to shareholders
(18.5) (285.0) +94%
EBITDA 87.7 82.2 +7%
Net profit margin -1% -17% +16%
Return on average equity
-2% -23% +21%
Financial Statements Note 4

Segment Information

Management analyses the Group’s performance with reference to Pacific Basin Dry Bulk and the remaining elements of PB Towage.

The main drivers of our results in 2015 were as follows:

  • Revenue and cost of services decreased by 27% and 28% respectively mainly due to:

    • one of the weakest ever years for the dry bulk market;
    • an 8% decrease in our Handysize revenue days;
    • redelivery of expensive chartered-in vessels and the use of lower cost short-term chartered-in vessels; and
    • the elimination of revenue and costs through the disposal of our Australian towage operation in 2014.
  • Underlying loss reduced mainly due to an improvement in our Supramax dry bulk performance and the sales of our Australian towage operation and OMSA towage joint venture.
  • Loss attributable to shareholders was affected by:

    • an unrealised derivative accounting gain of US $8.8 million mainly from completed prior year bunker fuel swap contracts;
    • a net gain of US$2.8 million from the disposal of tugs and our interest in the bunker tanker joint venture in New Zealand; and partly offset by
    • the release of a US$1.5 million foreign exchange reserve charge triggered mainly by the disposal of towage related assets. The Group maintains a foreign exchange reserve for the translation of net asset value of the Australian Dollars-denominated subsidiaries to US Dollars. At 31 December 2015, the foreign exchange reserve balance for PB Towage amounted to a charge of US$4.8 million. The release of this reserve to the consolidated incomestatement will be triggered by the sales of the remaining assets and closing down of the subsidiaries denominated in Australian Dollars.

EBITDA was US$87.7 million (2014: US$82.2 million) contributing to a positive operating cash flow and cash and deposits at the year end of US$358.4 million (2014: US$363.4 million).

My Annual Report

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