Group Performance Review

US$ Million 2014 2013 Change
Revenue 1,718.5 1,708.8 +1%
Cost of services (1,758.1) (1,653.7) -6%
Gross (loss)/profit (39.6) 55.1 -172%
Segment net (loss)/profit (45.9) 36.0 -228%
Treasury - (4.4) +100%
Discontinued operations
     - RoRo (0.2) (0.5) +60%
Indirect general and
     administrative expenses (9.4) (15.5) +40%
Underlying (loss)/profit (55.5) 15.6 -456%
Sale of harbour towage and
     OMSA JV (7.6) -
Towage exchange (loss)/
gain
(12.7) 5.1
Provision for onerous
     contracts (100.9) (0.7)
Towage impairments and
provisions (70.5) -
Unrealised derivative
     (expenses)/income (28.9) 1.8
RoRo exchange loss (5.0) (7.8)
Other impairments and
     provisions (3.9) 2.8
Expenses relating to
     exercising 10 finance
     lease purchase options - (15.3)
(Loss)/profit attributable
     to shareholders (285.0) 1.5 >-100%
EBITDA 82.2 118.2 -30%
Net profit margin -17% 0% -17%
Return on average equity
     employed
-23% 0% -23%

The main drivers of our results in 2014 were as follows:

  • Revenue grew by 1% mainly due to 7% and 9% increases in our total Handysize and Handymax revenue days respectively, offset by decreases in our daily charter rates
  • Cost of services grew 6% mainly due to increases in vessel operating costs attributable to the growth of our dry bulk fleet
  • Indirect general and administrative expenses decreased mainly due to one-off wind-down costs of certain non-core operations in 2013
  • Segment and underlying results turned to net losses mainly due to both a weak dry bulk market and weak towage results
  • losses of US$7.6 million from the disposals of both our harbour towage business and OMSA and their related non-cash exchange losses of US$12.7 million
  • a non-cash provision of US$100.9 million for inward chartered vessels contracts
  • non-cash Towage vessel impairments and provisions of US$70.5 million
  • an unrealised derivative charge of US$28.9 million from a reduction in average oil prices affecting our bunker fuel swap contracts

EBITDA amounted to US$82.2 million (2013: US$118.2 million) contributing to a positive operating cash flow

Cash and deposits at the year end of US$363.4 million (2013: US$486.1 million)


Segment Net Profit

US$ Million 2014 2013
Pacific Basin Dry Bulk (30.0) 26.1
PB Towage (15.1) 10.5
All other segments (0.8) (0.6)
Segment net (loss)/profit (45.9) 36.0

Segments

Management analyses the Group’s performance in two reporting segments

  • Pacific Basin Dry Bulk
  • PB Towage

Non-segment activities mainly comprise:

  • Treasury
  • PB RoRo, discontinued in September 2012

Underlying Profit

Includes:

  • Segment results
  • Treasury results
  • Discontinued operations
  • Indirect general and administrative expenses

Non-segment activities mainly comprise:

  • Disposal gains and losses, and impairments
  • Unrealised non-cash portion of results from derivative instruments relating to future periods


Financial Statements Note 4

Segment Information
 

Financial Statements Note 5

General and administrative expenses and other expenses

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