Page 31 - ar2013.pdf

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Annual Report 2013
together with interests thereon, damages and
interest thereon, indemnity for future losses, further
or other relief and costs. Given the current stage
of arbitration proceedings, it is difficult to quantify
the eventual financial impact of the arbitration at
this point in time. Notwithstanding the arbitration
proceedings, the first instalment of US$110 million
was refunded to the shipowner together with
payment of interest thereon amounting to US$8.1
million on 13 January 2014.
Net profit attributable to equity holders of the
Company decreased 71.0% from $105.7 million in
2012 to $30.6 million in 2013.
BALANCE SHEET AND CASH FLOW
(31 December 2013 vs 31 December 2012)
Cash and cash equivalents increased from $1.7
billion to $2.0 billion mainly due to increase in bank
borrowings procured to finance shipyard operating
activities.
Trade and other receivables increased $165.7 million
to $2.9 billion mainly due to higher construction
contracts due from customers in the offshore marine
engineering segment. Advances paid to suppliers
decreased from $672.8 million to $595.6 million.
Trade and other payables increased $451.5 million
to $2.7 billion mainly due to higher accruals for
operating expenses and an increase in advances
received from customers (from $391.7 million to
$558.8 million).
Total borrowings increased by $756.1 million to
$3.8 billion due to additional funding procured for
shipyard operations.
SHARE CAPITAL
COSCO’s share capital remained unchanged at
$270.6 million.There was no new issue and allotment
of shares under the COSCO Corporation Employees’
Share Option Scheme 2002.
EQUITY
Shareholder’s equity increased marginally by
$54.3 million mainly due to an increase in currency
translation reserve and the transfer of 2013 profits
to retained earnings. This was partially offset by the
payment of dividends in May 2013.
NET GEARING
Total bank borrowings increased from $3.0 billion to
$3.8 billion due to additional funding procured for
business operations. The Group had a gearing ratio
(net of cash) of 1.3 at the end of FY2013.
EARNINGS PER SHARE
On a fully diluted basis, net earnings per share
decreased from 4.7 cents in FY2012 to 1.4 cents in
FY2013.
DIVIDENDS PER SHARE
The Board of Directors has proposed a first and
final tax exempt one-tier dividend of 1.0 cent.
The dividend payout will amount to $22.4 million
(FY2012: $44.8 million) while dividend cover was 1.4.
NET ASSET VALUE PER SHARE
The net asset value per share of COSCO Corporation
increased by 4.3% from 57.2 cents per share at
31 December 2012 to 59.7 cents per share at 31
December 2013.
Operat i ons and F i nanc i a l Rev i ew