Note 12 - Borrowings

CONSOLIDATED

Drawn amount - excluding CIRR

(Amounts in USD 1,000)

2017

2016

 

Secured

Current

Non-current

Total

Current

Non-current

Total

Bank Loans

92,442

1,047,958

1,140,400

177,834

1,091,784

1,269,618

Loans from related parties

-

12,747

12,747

-

60,000

60,000

Total secured borrowings

92,442

1,060,705

1,153,147

177,834

1,151,784

1,329,618

 

Unsecured

Current

Non-current

Total

Current

Non-current

Total

Floating rate notes / Bonds

-

158,440

158,440

-

150,812

150,812

Total unsecured borrowings

-

158,440

158,440

-

150,812

150,812

Total borrowings

92,442

1,219,145

1,311,587

177,834

1,302,596

1,480,430

Fees and expenses

-

-8,588

-8,588

-

-9,537

-9,537

Total borrowings incl. fees

92,442

1,210,557

1,302,999

177,834

1,293,059

1,470,893

 

CONSOLIDATED

Fair value - excluding CIRR

(Amounts in USD 1,000)

2017

2016

 

Secured

Current

Non-current

Total

Current

Non-current

Total

Bank Loans

92,442

1,069,254

1,161,696

177,834

1,108,433

1,286,267

Loans from related parties

-

12,747

12,747

-

60,000

60,000

Total secured borrowings

92,442

1,082,001

1,174,443

177,834

1,168,433

1,346,267

 

Unsecured

Current

Non-current

Total

Current

Non-current

Total

Floating rate notes / Bonds

-

158,440

158,440

-

150,812

150,812

Total unsecured borrowings

-

158,440

158,440

-

150,812

150,812

Total borrowings

92,442

1,240,441

1,332,883

177,834

1,319,245

1,497,079

Fees and expenses

-

-8,588

-8,588

-

-9,537

-9,537

Total

92,442

1,231,853

1,324,295

177,834

1,309,708

1,487,542

PARENT COMPANY

Drawn amount - excluding CIRR

(Amounts in USD 1,000)

2017

2016

Secured

Current

Non-current

Total

Current

Non-current

Total

Loans from related parties(1)

-

12,747

12,747

-

60,000

60,000

Total secured borrowings

-

12,747

12,747

-

60,000

60,000

 

Unsecured

Current

Non-current

Total

Current

Non-current

Total

Floating rate notes / Bonds

-

158,440

158,440

-

150,807

150,807

Total unsecured borrowings

-

158,440

158,440

-

150,807

150,807

Total borrowings

-

171,187

171,187

-

210,807

210,807

Fees and expenses

-

-92

-92

-

-

-

Total borrowings incl. fees

-

171,095

171,095

-

210,807

210,807

 

PARENT COMPANY

Fair value - excluding CIRR

(Amounts in USD 1,000)

2017

2016

 

Secured

Current

Non-current

Total

Current

Non-current

Total

Loans from related parties(1)

-

12,747

12,747

-

60,000

60,000

Total secured borrowings

-

12,747

12,747

-

60,000

60,000

 

Unsecured

Current

Non-current

Total

Current

Non-current

Total

Floating rate notes / Bonds

-

158,445

158,445

-

150,812

150,812

Total unsecured borrowings

-

158,445

158,445

-

150,812

150,812

Total borrowings

-

171,192

171,192

-

210,812

210,812

Fees and expenses

-

-92

-92

-

-

-

Total

-

171,100

171,100

-

210,812

210,812

The Company has a portfolio of bank loans secured with mortgage in vessels. The creditor and guarantors are in general first class commercial banks ,and state owned financial institutions with ratings on or above BBB- and AAA.
As of year end, the Company had issued two high yield unsecured bonds of NOK 600 million and NOK 700 million respectively. The high yield unsecured bonds are listed on Oslo Stock Exchange, have no amortization and matures in 2020 and 2021.

(1) At year-end the Company held a secured revolving credit facility with Siem Industries Inc. at USD60 million. As part of the sale transaction for Siem Offshore Contractors GmbH (SOC), the the terms of the facility was amended. The facility is secured and at USD12 million with effect from the transaction date of the sale of SOC. See the Note 26 Subsequent Events.

CONSOLIDATED

Instalments falling due over the next 5 years - excluding CIRR

(Amounts in USD 1,000)

Mortgage debt

Other interest bearing debt

Total

2018

93,523

-

93,523

2019

146,874

-

146,874

2020

148,308

73,126

221,435

2021

331,563

85,314

416,877

2022

121,860

-

121,860

Thereafter

311,017

-

311,017

Total

1,153,147

158,440

1,311,587

 

PARENT COMPANY

Instalments falling due over the next 5 years - excluding CIRR

(Amounts in USD 1,000)

Mortgage debt

Other interest bearing debt

Total

2020

-

73,126

73,126

2021

12,747

85,314

98,061

Total

12,747

158,440

171,187

The book value of mortgaged assets consist of non-current tangible assets and portion of the accounts receivables and amounts to USD 1.8 bllion at year end.

There are various financial covenants related to the Company’s debt agreements. The main prevailing covenants are:

  • Value adjusted book equity ratio in excess of 20%
  • USD50 million of freely available cash, bank deposit balance and undrawn credit facilities.
  • Leverage and credit ratios

The Company and Parent are in compliance with the financial covenants as per December 31, 2017.

PARENT COMPANY

CONSOLIDATED

12/31/2017

12/31/2016

(Amounts in USD 1,000)

12/31/2017

12/31/2016

10,311

14,300

Total CIRR loan commitment

65,346

76,215

10,311

14,300

CIRR loan drawn

65,346

76,215

-

-

Commitment

-

-

Prior to ordering vessels from Norwegian yards, the Company applied for fixed 12-year interest rate options related to the long-term financing of such vessels. The Company was granted such options for each of the relevant vessel by the Norwegian Export Credit Agency. The Company made certain sale of the right to exercise such options to a first class international bank (the “Bank”). Long-term loans drawn from the Norwegian Export Credit Agency are placed as corresponding deposits in the Bank as financial security for the loans drawn. Recognition of the gain, related to each option, is recorded over the term of any drawn loans. In relation to sale of a vessel in 2015 which had a fixed 12-year USD interest rate associated with its mortgage debt financing, the receipt from the sale equivalent to the amount of the outstanding long-term loan from the Norwegian Export Credit Agency were placed on deposit in the Bank as financial security for the drawn loan at the date when the sale was concluded.

Unearned CIRR

2017

2016

Beginning of the year

1,050

1,418

Recognized in the profit and loss account

-368

-368

Paid-back CIRR

-

-

Net Unearned CIRR as of December 31

682

1,050

MOVEMENTS IN NET DEBT

 

(CONSOLIDATED)

2017

2016

(Amounts in USD 1,000)

Cash and cash equivalents

63,511

101,323

Borrowings, repayable wihtin one year

-92,442

-177,834

Borrowings, repayable after one year

-1,210,558

-1,293,059

Net debt

-1,239,489

-1,369,569

 

Cash and cash equivalents

63,511

101,323

Gross debt - fixed interest rates

-424,233

-471,187

Gross debt - floating interest rates

-878,766

-999,706

Net debt

-1,239,489

-1,369,569

 

(Amounts in USD 1,000)

Cash and equivalents

Borrowings due within one year

Borrowings due after one year

Total

Net debt as at January 1, 2017

101,323

-177,834

-1,293,059

-1,369,569

Cash flows

-48,009

85,978

103,603

141,573

Foreign exchange adjustments

10,197

-586

-21,102

-11,491

Oher non-cash movements

-

-

-

-

Net debt as at December 31, 2017

63,511

-92,442

-1,210,558

-1,239,489

 

PARENT COMPANY

(Amounts in USD 1,000)

2017

2016

Cash and cash equivalents

203,832

195,433

Borrowings, repayable wihtin one year

-

-

Borrowings, repayable after one year

-171,095

-210,807

Net debt

32,737

-15,373

 

Cash and cash equivalents

203,832

195,433

Borrowings, repayable wihtin one year

-55,705

-67,530

Gross debt - floating interest rates

-115,389

-143,277

Net debt

32,737

-15,373

 

(Amounts in USD 1,000)

Cash and equivalents

Borrowings due within one year

Borrowings due after one year

Total

Net debt as at January 1, 2017

195,433

-

-210,807

-15,373

Cash flows

2,813

-

47,253

50,066

Foreign exchange adjustments

5,586

-

-7,541

-1,955

Oher non-cash movements

-

-

-

-

Net debt as at December 31, 2017

203,832

-

-171,095

32,737

Siem Offshore Reports 2017

Board Of Directors

Financial Statements

Notes