Veritas Petroleum P. a Services B.V. Quarterly report. i IT31 December 2015

Transcription

1 Veritas Petroleum P. a Services B.V. Quarterly report i IT31 December 2015

2 Ops Q Update from the board of directors Financial performance Veritas Petroleum Services B.V. and its subsidiaries, hereafter the Group experienced a good performance in Q Markets wherein the Group operates are tough and competition is increasing. The Group however managed to maintain volumes and focused on cost saving projects resulting in an improved EBITDA in comparison to prior year. The Q4 sales of the group showed a decrease of 2.3% vs Q however on YTD basis sales increased by 0.1%. Total testing volumes and surveys have increased in Q4 in comparison to prior year. Price pressure on testing and FX impact resulted in lower sales in Q Overall YTD 2015 sales increase is mainly impacted by a positive volume development. Costs (adjusted for one-off / non-recurring items) of the Group in Q were 7.5% lower than Q (YTD 3.8%) reflecting amongst others the favorable FX results. As a result the Group s Q EBITDA increased to USD 3,951 thousand (2014: USD 3,541 thousand). The Group closed Q financials with a net loss of USD 40 thousand (Q4 2014: net loss of USD 445 thousand) which is mainly driven by the tax charge for the year and lower operating expenses. Both exceptional items and capital expenditures are significantly lower than last year reflecting the ending of carve out activities. Organizational changes No changes have occurred within the board of director s of the Group up and till the date of this quarterly report. The supervisory board of VPS announced that as effective 1 October 2015 that John Notman-Watt is replaced by Thomas Klitbo as chairman in the Supervisory Board. John Notman-Watt remains a member of the Supervisory Board. Gerard Rohaan Stan Peeters CEO VPS Group CFO VPS Group 2 1Q /02/16

3 OPS Condensed consolidated interim statement of profit or loss and other comprehensive income For the quarter ended 31 December In thousands of USD (Unaudited) Q (Unaudited) ) YTD 2015 (Unaudited) YTD 2014 (Audited) *)** *) Revenues 12,823 13,132 52,107 52,049 Payroll expenses (5,045) (5,397) (22,230) (22,423) Other operating expenses (3,827) (4,193) (15,426) (16,712) (8,872) (9,590) (37,656) (39,140) EBITDA 3,951 3,541 14,451 12,909 Depreciation 8t amortisation (1,414) (1,233) (5,587) (5,323) Known exceptional items (492) (561) (1,445) (2,353) Operating profit 2,044 1,692 7,419 4,728 Interest income Interest expense (1,464) (1,440) (5,751) (6,066) Other financial expenses **) 25 (751) (609) (393) Net Finance Costs (1,387) (2,079) (6,305) (6,346) Result before tax 658 (337) 1,114 (2,113) Tax expenses (697) (53) (604) (53) Result after tax (40) (445) 510 (2,176) *) See note 4 for details on restatement of 2014 results **) The 2014 YTD figure includes the financing related foreign currency results ***) See note 4 for details on restatement between Q reporting and audited figures 2014 The explanatory notes on pages 8 till 13 are integral part of these (unaudited) condensed consolidated interim financial statements. H 3 1Q /02/16

4 Ops Condensed consolidated interim statement of financial position Balance Sheet - Assets In thousands o f USD 31 December 2015 (Unaudited) 31 December 2014 (Audited) *) Intangible Assets Goodwill 47,500 64,258 49,301 64,253 TotaL Intangible Assets 111, ,559 Tangible Fixed Assets 12,839 14,173 Financial Fixed assets Total Fixed Assets 124, ,356 Trade Debtors Services to be invoiced 4,919 3,451 7,477 3,102 Other Current Assets 578 1,453 Cash & Banks 12,614 11,543 TotaL Current Assets 21,562 23,535 TotaL Assets 146, ,941 *) See note 4 for details on restatement between Q reporting and audited figures 2014 The explanatory notes on pages 8 till 13 are integral part of these (unaudited) condensed consolidated interim financial statements. 4 1Q /02/16

5 Ops Condensed consolidated interim statement of financial position Balance Sheet - Equity ft Liabilities 31 December 31 December In thousands of USD (Unaudited) (Audited) *) Share Capital 6,300 6,300 Share Premium 56,700 56,700 Free reserves/unrecovered loss (11,647) (9,443) Current year result 510 (2,176) TotaL Equity 51,363 51,376 Shareholder Loan 8,719 7,926 Bond 64,797 63,514 Employee Benefits Deferred Tax 12,180 12,751 Non-current Liabilities 06,101 90,014 Trade Creditors 1,597 2,006 Tax payable 921 1,358 Other Short Term Liabilities 6,022 7,137 Current Liabilities 8,540 10,551 Total Liabilities 94, ,565 Total Equity & Liabilities 146, ,941 *) See note 4 for details on restatement between Q reporting and audited figures 2014 The explanatory notes on pages 8 till 13 are integral part of these (unaudited) condensed consolidated interim financial statements. 5 1Q /02/16

6 OPS Condensed consolidated interim statement of changes in equity For the quarter ended 31 December in thousands of USD Equity Balance at 31 December 2014 (audited) 51,376 Result for the year 510 Other Comprehensive Income (23) Balance at 31 December 2015 (unaudited) 51,863 Balance at 31 December 2013 (audited) 53,361 Result for the year (2,176) Other Comprehensive Income (309) Balance at 31 December 2014 (audited) 51,376 The explanatory notes on pages 8 till 13 are integral part of these (unaudited) condensed consolidated interim financial statements. 6 1Q /02/16

7 OPS Condensed consolidated interim statement of cash flows For the quarter ended 31 December Ytd 2015 Ytd 2014 In thousands of USD (U n a u d ited) (Au dited) * *) Cash flow from operating activities Profit before tax 1,114- (2,118) Cash generated from operating activities 5,811 7,224- Net cash from operating activities 6,925 5,106 Net cash used in investing activities (2,173) (3,924) Net cash used in financing activities ) (3,686) (1,676) Change in cash and cash equivalents 1,066 (494) Cash and cash equivalents at 31 December prior year 11,548 12,042 Cash and cash equivalents at 31 [Jecember 12,614 11,543 *) See note 4 for details on restatement between Q reporting and audited figures 2014 **) The net cash used in financing activities reflects the bond buy-back in In 2014the balance reflects the finance costs forthe bond placement The explanatory notes on pages 8 till 13 are integral part of these (unaudited) condensed consolidated interim financial statements. 7 1Q /02/16

8 OPS Explanatory notes to condensed consolidated interim financial statements 1. Reporting entity 3. Use of judgments and estimates Veritas Petroleum Services B.V. is a company domiciled in The In preparing these condensed consolidated interim financial Netherlands. The condensed consolidated interim financial statements, management has made judgements, estimates statements of the Company as at and for the twelve months and assumptions that affect the application of accounting ended 31 December 2015 comprise the Company and its policies and the reported amounts of assets and liabilities, subsidiaries (together referred to as the Group). The Group income and expense. Actual results may differ from these primarily provides testing and survey services to the Maritime estimates. The significant judgements made by management industry. in applying the group s accounting policies and the key sources of estimation uncertainty were the same as those 2. Basis of accounting This condensed consolidated interim financial report has been prepared in accordance with IAS 34 Interim financial reporting. It does not include all the information required for a complete set of IFRS financials statements. However, selected explanatory notes are included to explain events and transactions that are significant for an understanding of the changes in the Group s financial position and performance since the last annual consolidated financial statements as at and for the year ended 31 December This condensed consolidated interim financial statement was authorised for issue by the Company s Board of Management on 29 February that applied to the consolidated financial statements as at and for the year ended 31 December Restatement of 2014 quarterly reports The results presented here for the period ending 31 December 2014 are different from what was published last year. The 2014 quarterly results were prepared with the best knowledge available at that time but in the course of 2014 better insight has developed as a result of amongst others PPA valuation, set up of IFRS reporting and annual closing The 2014 quarterly results have been changed accordingly for comparison purposes. An overview of the differences is presented below. 8 1Q /02/16

9 Ops Explanatory notes to condensed consolidated interim financial statements Income statement balance updaten YTD Dec 31, 2014 Restatements YTD Dec 31, In thousands of USD as reported Feb (Unaudited) / Adjustments (Unaudited) 2014 Restated (Audited) Comments Revenues 52,049 52,049 Payroll expenses Other operating expenses (22,561) (17,118) (22,423) (16,712) (39,679) 539 (39,140) Corrected monthly distribution of costs Corrected monthly distribution of costs EBITDA 12, ,909 Depreciation ft amortisation (5.335) 62 (5,323) Known exceptional items (2.335) (23) (2,353) Operating profit 4, ,723 Reclass arising from 2014 audit Corrected monthly distribution of costs Interest income Interest expense Other financial expenses 252 (6,235) (121) (134) 219 (777) 113 (6,066) (393) Net Finance Costs (6,154) (692) (6,346) Reclass arising from 2014 audit Reclass arising from 2014 audit Effect of valuation of bond against amortised cost arising from 2014 audit / IFRS Result before tax (2,004) (114) (2,113) Tax expenses 1,003 (1,061) (53) No tax asset build up. Arising from 2014 audit / IFRS Result after tax (1,001) (1,175) (2,1 76) 9 1Q /02/16

10 Ops Explanatory notes to condensed consolidated interim financial statements 31 December /tofaouf & M tfgfllsp 2014 as reported Feb-2015 (Unaudited) Restatements / Adjustments (Unaudited) 31 December 2014 (Audited) Comments Intangible Assets 47,573 1,728 49,301 Goodwill 64,258 64,258 Total Intangible Assets 111,831 1, ,559 Reclass of capitalized bond issue fees and reclass between tangible and intangible assets. As of 2015 the bond including issue fees is accounted for at amortized cost Tangible Fixed Assets 17,566 (3,388) 14,178 Reclass arising from 2014 audit / IFRS Financial Fixed assets 787 ( ) 619 Reclass arising from 2014 audit / IFRS Total Fixed Assets 130, ,356 Trade Debtors 7,477 7,477 Work in Progress 3,102 3,102 Other Current Assets 445 1,013 1,458 Corrected monthly accounting Cash & Banks 11,656 (108) 11,548 Monthly f/x revaluations arising from 2014 audit / IFRS Total Current Assets 22, ,585 Total Assets 152,864 (923) 151, Q /02/16

11 Ops Explanatory notes to condensed consolidated interim financial statements 31 December 2014 as reported Restatements / Feb-2015 /Adjustments 31 December In thousands of USD (Unaudited) (Unaudited) 2014 (Audited) Share Capital 6,300 6,300 Share Premium 56,700 56,700 Free reserves/unrecovered loss (10,290) 342 (9,445) Current year result (1,001) (1,175) (2,176) Total Equity 51,709 (333) 51,376 Reclass arising from 2014 audit / IFRS Comments Reclass arising from 2014 audit. Mainly corporate income tax position incorporated at first Shareholder Loan 7,926 7,926 Send 71,225 (2,711) 65,514 Reclass of capitalized bond issue fees and fair value bond. As of 2015 the bond including issue fees is accounted for at amortized cost. Employee Benefits Deferred Tax 12,965 (214) 12,751 Non-current Liabilities 92,439 (2,425) 90,014 corrected monthly accounting arising from 2014 audit / IFRS corrected monthly accounting arising from 2014 audit / IFRS Trade Creditors 1, ,006 Tax payable ,353 Other Short Term Liabilities 5,991 1,196 7,137 Current Liabilities 3,716 1,835 10,551 corrected monthly accounting arising from 2014 audit / IFRS corrected monthly accounting arising from 2014 audit / IFRS corrected monthly accounting arising from 2014 audit / IFRS Total Liabilities 101,155 (590) 100,565 Total Equity & Liabilities 152,364 (923) 151, Q /02/16

12 Ops Explanatory notes to condensed consolidated interim financial statements 5. Significant accounting policies The accounting policies applied in these condensed consolidated interim financial statements are the same as those applied in the Group's consolidated financial statements as at and for the year ended 31 December In addition, the Group has adopted the following new standards and amendments to standards with an effective date for annual periods beginning after or on 1 January IFRS 7 Financial Instruments - Disclosures (2005) IFRS 7 (2005) requires disclosure of information about the significance of financial instruments to an entity, and the nature and extent of risks arising from those financial instruments, both in qualitative and quantitative terms. Where relevant, the Group has applied the new standards and interpretations that became effective in The adoption of this standards and interpretations did not have a material impact on the Company s financial performance or disclosures. 6. Operating segments The Group considers its activities as one segment in relation to the disclosure requirements of IFRS 8 Segment reporting. 7. Tax Expense Tax expense is recognised based on management s best estimate of the weighted-average annual income tax rate expected for the full financial year multiplied by the pre-tax income of the interim reporting period. The Group s consolidated average tax rate is in respect of continuing operations for the twelve months ended 31 December % (twelve months ended 31 December 2015: 23%). 8. Loan Covenants The Group needs to be compliant with the stipulations in the loan covenant requirements of the bond agreement. As per 31 December 2015 the Group meets the requirements of the loan covenant as stipulated in the bond agreement. 12 Q /02/16

13 OPS Explanatory notes to condensed consolidated interim financial statements 9. Net finance costs The change in net finance costs is mainly caused by the borrowing structure of the Group, partly offset by an increase of currency exchange results, amortised costs for the bond loan and gains resulted from the bond buy-back. Starting 2015 the financing related foreign currency results and effect of valuation of the bond against amortised cost are recorded in net finance cost. The net finance costs of the Group is as 10. Subsequent events The company bought back bonds YTD February 2016 amounting to USD 1.2 million. The total of bond buy-back amounts to USD 5.0 million. Besides this matter no subsequent events occurred between the period ending 31 December 2015 and the release for publication of these consolidated interim financial statements on 29 February follows. Q Q YTD YTD 2014 In thousands o f USD {Unaudited) {Unaudited) * *) {Unaudited) (Audited) ***) Interest costs shareholdersloan 1056 {207) {215) {793) (2,391) Interest cost bond loan 7 % {1,200) {1,225) {4,875) {3,675) Currency exchange effects 8 [1) {25) (65) Other financial expenses ) 12 (&39) {612) {715) Net finance costs {1,387) {2,079) {6,305) {6,346) *) See note 4 for details on restatement of 2014 results **) The 2014 YTD figure includes the financing related foreign currency results ***) See note 4 for details on restatement between Q reporting and audited figures Q /02/16

14 About the Group Previously known as DNV Petroleum Services, Veritas Petroleum Services (VPS) delivers testing, inspection and advisory solutions that help customers achieve measurable improvements to fuel management, fuel cost, operational efficiency and compliance with marine fuel regulatory requirements. In close collaboration with the industry, the company introduced the first commercial bunker fuel testing and bunker quantity surveys for ships in 1981 and 1987, respectively. VPS operates a global network of customer service offices supported round-the-clock by technical experts and four specialized and wholly-owned ISO accredited fuel testing laboratories strategically located in Rotterdam, Singapore, Houston and Fujairah. Its bunker quantity surveys are available at more than 200 key bunkering ports worldwide. Company contact Investor relations For further information about the VPS group, see our website or contact Stan Peeters at +31(0) or at Stan.Peeters@v-p-s.com. Company s visiting adress Veritas Petroleum Services BV Zwolseweg LB Barendrecht Company s postal adress Veritas Petroleum Services BV P.O. Box AN Rotterdam 2015 Veritas Petroleum Services BV All rights reserved 14 Q /02/16