Annual Report

Notes – Marine Subsea Consolidated
purchase option. The terms of the bareboat agreement will reflect the
cost of the unit and payments made to date. Marine Subsea is highly
positive to this solution as it means the JV no longer requires financing,
Yantai has an increased exposure and the organisational model is
simplified.
i) Trade receivables
The company’s three offshore support barges – African Caribe, African
Fjord and African Installer all generated income in 2009. The Company
has however had to make a provision in the amount of USD 7,4 million
on bad debt, as the charterer of African Installer defaulted on its payment
obligations. The Company is in the process of pursuing a claim
of USD 9,1 million against the previous charterer. African Installer is
now being towed to Malta, where it will go on a 6 month contract with
Geocean.
Trade receivables
(all amounts in USD 1 000) December 2009
Note due 13 462 USD
Overdue 1–30 days 3 661 USD
Overdue 30–60 days 223 USD
Overdue 60–90 days 32 USD
Overdue over 90 days 57 USD
Total 17 436 USD
ii) Liquidity risk
On 16th December 2009, Marine Subsea raised vessel financing, took
delivery of the deepwater multipurpose/intervention vessel Sarah and
completed its financial restructuring. Marine Subsea is now fully financed
with a debt maturity profile that matches the long-term nature of its
contracts. Standard Bank Plc and Eksportfinans ASA underwrote a loan
of USD 222 million, of which USD 111 million was drawn-down in connection
with the delivery payment for Sarah and USD 111 million was
committed for October 2010 for the delivery of the second multipurpose/intervention
vessel, Karianne. At the same time, Marine Subsea’s
three outstanding bonds were converted to two new bonds with a total
value USD 314 million. The new bonds have a 10-year maturity date
and interest may be accrued in the first 2 years. The bond loans are
structured with cash sweep repayments.
The table below summaries the maturity profile of the Group’s financial
liabilities at 31. December 2009 based on contractual undiscounted
payments:
2009 Less
than one
year
Between
1 and 2
years
Between
3 and 5
years
Over 5
years
Total
Trade- and
other payables 36 162 0 0 0 36 162
Interest-bearing
loans and
borrowings 98 879 63 450 248 299 273 157 683 785
2008 Less
than one
year
Between
1 and 2
years
Between
3 and 5
years
Over 5
years
Total
Trade- and
other payables 14 519 0 0 0 14 519
Interest-bearing
loans and
borrowings 23 657 23 652 337 012 0 384 321
The short term interest-bearing debt in 2009 constitute the following:
• The remaining take-out payment on African Worker to Jaya
Shipbuilding of USD 17,2 million, where USD 250 thousand is due
in equal amounts each month from February 2010 until Karianne
delivery with a bullet at delivery of USD 15,2 million. USD 15,2 is
to be paid at the latest 31.12.2010.
• Debt to Ulstein of USD 35 million with regards to Sarah- and
Karianne delivery. Due on delivery of Karianne in October 2010.
• Installment of USD 11,1 million under the Sarah facility, and interest
on the Sarah facility and the 2 bond loans.
The table below summaries the maturity profile of the Group’s capital
commitments contracted for at the balance sheet date, but not recognized
in the financial statements. The USD 85.7 million represents the
final payment on Karianne.
2009 Less
than one
year
Between
1 and 2
years
Between
3 and 5
years
Over 5
years
Total
Investments 85 739 0 0 0 85 739
2008 Less
than one
year
Between
1 and 2
years
Between
3 and 5
years
Over 5
years
Total
Investments 117 280 32 051 0 0 149 331
Capital Management
The primary objective of the group’s capital management is to ensure
the service and repayment of debt, in order to support its business and
maximize shareholder value.
Annual Report 2009 Marine Subsea 31