XML 212 R32.htm IDEA: XBRL DOCUMENT v3.20.1
Equity-accounted investees
12 Months Ended
Dec. 31, 2019
Interests in Other Entities [Abstract]  
Equity-accounted investees
Equity-accounted investees
(in thousands of USD)
 
December 31, 2019
 
December 31, 2018
Assets
 
 
 
 
Interest in joint ventures
 
50,322

 
43,182

Interest in associates
 

 

TOTAL ASSETS
 
50,322

 
43,182

 
 
 
 
 
Liabilities
 
 
 
 
Interest in joint ventures
 

 

Interest in associates
 

 

TOTAL LIABILITIES
 

 




Joint Ventures
The following table contains a roll forward of the balance sheet amounts with respect to the Group's joint ventures:
 
 
ASSET
(in thousands of USD)
 
Investments in equity accounted investees
 
Shareholders loans
Gross balance
 
(3,298
)
 
203,512

Offset investment with shareholders loan
 
20,165

 
(20,165
)
Balance at January 1, 2017
 
16,867

 
183,348

 
 
 
 
 
Group's share of profit (loss) for the period
 
29,933

 

Group's share of other comprehensive income
 
483

 

Dividends received from joint ventures
 
(1,250
)
 

Dividend in kind (shares TUKA) received from associate (Note 23)
 
1,559

 

Reclassification of associate to joint venture
 
136

 

Movement shareholders loans to joint ventures
 

 
(40,750
)
 
 
 
 
 
Gross balance
 
27,565

 
162,763

Offset investment with shareholders loan
 
3,030

 
(3,030
)
Balance at December 31, 2017
 
30,595

 
159,733

 
 
 
 
 
Group's share of profit (loss) for the period
 
16,076

 

Group's share of other comprehensive income
 
(459
)
 

Movement shareholders loans to joint ventures
 

 
(134,097
)
 
 
 
 
 
Gross balance
 
43,182

 
28,666

Offset investment with shareholders loan
 

 

Balance at December 31, 2018
 
43,182

 
28,666

 
 
ASSET
(in thousands of USD)
 
Investments in equity accounted investees
 
Shareholders loans
Group's share of profit (loss) for the period
 
16,460

 

Group's share of other comprehensive income
 
(720
)
 

Dividends received from joint ventures
 
(12,600
)
 

Movement shareholders loans to joint ventures
 

 
31,713

Initial capital provided to joint ventures
 
4,000

 

 
 
 
 
 
Gross balance
 
50,322

 
60,379

Offset investment with shareholders loan
 

 

Balance at December 31, 2019
 
50,322

 
60,379



The decrease in the balance of shareholders’ loans to joint ventures in 2018 is primarily due to the $220.0 million senior secured credit facility which TI Asia Ltd. and TI Africa Ltd. entered into March 29, 2018. The shareholders loans were partially repaid by using a part of the proceeds of this new borrowing. In this context, the Company provided a guarantee for the revolving tranche of the above credit facility.

The increase in the balance of the shareholders' loan to joint ventures in 2019 is attributable to the shareholders loans to newly set-up joint ventures Bari Shipholding Ltd and Bastia Shipholding Ltd (see Note 10).

Joint venture
Segment
Description
Kingswood Co. Ltd
Tankers
Holding company; parent of Seven Seas Shipping Ltd. and to be liquidated in 2020
Seven Seas Shipping Ltd
Tankers
Formerly owner of 1 VLCC bought in 2016 by Euronav. Wholly owned subsidiary of Kingswood Co. Ltd. and to be liquidated in 2020
Tankers Agencies (UK) Ltd
Tankers
Parent company of Tankers International Ltd
Tankers International LLC
Tankers
The manager of the Tankers International Pool who commercially manages the majority of the Group's VLCCs

Bari Shipholding Ltd
Tankers
Single ship company, owner of 1 Suezmax
Bastia Shipholding Ltd
Tankers
Single ship company, owner of 1 Suezmax
TI Africa Ltd
FSO
Operator and owner of a single floating storage and offloading facility (FSO Africa) *
TI Asia Ltd
FSO
Operator and owner of a single floating storage and offloading facility (FSO Asia) *
* FSO Asia and FSO Africa are on a time charter contract to North Oil Company (NOC), the new operator of Al Shaheen field, until mid 2022.
The following table contains summarized financial information for all of the Group's joint ventures:
 
 
Asset
(in thousands of USD)
 
Kingswood Co. Ltd

 
Seven Seas Shipping Ltd

 
TI Africa Ltd

 
TI Asia Ltd

 
Tankers Agencies (UK) Ltd (see Note 24)

 
TI LLC (see Note 24)

 
Total

At December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage ownership interest
 
50
%
 
50
%
 
50
%
 
50
%
 
50
%
 
50
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Current assets
 
629

 

 
182,298

 
175,826

 
363

 
98

 
359,214

of which Vessel
 

 

 
171,612

 
164,587

 

 

 
336,199

Current Assets
 

 
993

 
12,639

 
10,521

 
149,650

 
1,108

 
174,912

of which cash and cash equivalents
 

 
689

 
4,062

 
1,968

 
1,889

 

 
8,608

Non-Current Liabilities
 

 
629

 
200,231

 
128,653

 

 

 
329,514

Of which bank loans
 

 

 

 

 

 

 

Current Liabilities
 
111

 
91

 
766

 
687

 
147,453

 
975

 
150,083

Of which bank loans
 

 

 

 

 
43,000

 

 
43,000

Net assets (100%)
 
518

 
273

 
(6,060
)
 
57,007

 
2,560

 
232

 
54,530

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Group's share of net assets
 
259

 
137

 
(3,030
)
 
28,503

 
1,559

 
136

 
27,565

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shareholders loans to joint venture
 

 

 
100,115

 
62,647

 

 

 
162,762

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Carrying amount of interest in joint venture
 
259

 
137

 

 
28,503

 
1,559

 
136

 
30,595

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Remaining shareholders loan to joint venture
 



 
97,085

 
62,647

 

 

 
159,732

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 

 
61

 
61,015

 
58,011

 

 

 
119,087

Depreciations and amortization
 

 

 
(18,209
)
 
(17,933
)
 

 

 
(36,142
)
Interest Expense
 

 

 
(90
)
 
(1,961
)
 

 

 
(2,052
)
Income tax expense
 

 

 
383

 
(3,359
)
 

 

 
(2,976
)
Profit (loss) for the period (100%)
 
(2
)
 
130

 
34,269

 
25,467

 

 

 
59,865

Other comprehensive income (100%)
 

 

 

 
966

 

 

 
966

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Group's share of profit (loss) for the period
 
(1
)
 
65

 
17,135

 
12,734

 

 

 
29,932

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Group's share of other comprehensive income
 

 

 

 
483

 

 

 
483

 
 
 
(in thousands of USD)
 
Kingswood Co. Ltd

 
Seven Seas Shipping Ltd

 
TI Africa Ltd

 
TI Asia Ltd

 
Tankers Agencies (UK) Ltd (see Note 24)

 
TI LLC (see Note 24)

 
Total

At December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage ownership interest
 
50
%
 
50
%
 
50
%
 
50
%
 
50
%

50
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Current assets
 
522

 

 
154,553

 
147,962

 
306



 
303,343

of which Vessel
 

 

 
153,404

 
146,654

 



 
300,058

Current Assets
 

 
792

 
9,119

 
22,450

 
351,702


288

 
384,351

of which cash and cash equivalents
 

 
696

 
484

 
2,561

 
2,487



 
6,227

Non-Current Liabilities
 

 
522

 
130,068

 
74,171

 



 
204,760

Of which bank loans
 

 

 
70,080

 
67,551

 



 
137,630

Current Liabilities
 
6

 
1

 
24,400

 
23,699

 
349,096


48

 
397,250

Of which bank loans
 

 

 
23,867

 
23,015

 
64,500



 
111,382

Net assets (100%)
 
516

 
269

 
9,205

 
72,542

 
2,912


240

 
85,685

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Group's share of net assets
 
258

 
134

 
4,603

 
36,271

 
1,774


141

 
43,182

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shareholders loans to joint venture
 

 

 
28,665

 

 



 
28,665

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Carrying amount of interest in joint venture
 
258

 
134

 
4,603

 
36,271

 
1,774


141

 
43,182

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Remaining shareholders loan to joint venture
 

 

 
28,665

 

 



 
28,665

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 

 
1

 
49,129

 
49,180

 
749,229



 
847,540

Depreciations and amortization
 

 

 
(18,209
)
 
(17,933
)
 
(71
)


 
(36,213
)
Interest expense
 

 

 
(3,857
)
 
(3,733
)
 
(2,571
)


 
(10,161
)
Income tax expense
 

 

 
(1,585
)
 
(1,611
)
 
(216
)


 
(3,412
)
Profit (loss) for the period (100%)
 
(2
)
 
(5
)
 
15,742

 
15,977

 
352


10

 
32,074

Other comprehensive income (100%)
 

 

 
(477
)
 
(441
)
 



 
(918
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Group's share of profit (loss) for the period
 
(1
)
 
(2
)
 
7,871

 
7,989

 
214


6

 
16,076

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Group's share of other comprehensive income
 

 

 
(239
)
 
(220
)
 



 
(459
)


 
 
 
 
(in thousands of USD)
 
Kingswood Co. Ltd

 
Seven Seas Shipping Ltd

 
TI Africa Ltd

 
TI Asia Ltd

 
Tankers Agencies (UK) Ltd (see Note 24)

 
TI LLC (see Note 24)

 
Bari Shipholding Ltd

 
Bastia Shipholding Ltd

 
Total

 
At December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage ownership interest
 
50
%
 
50
%
 
50
%
 
50
%
 
50
%
 
50
%
 
50
%
 
50
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Current assets
 
530

 

 
137,426

 
128,722

 
944

 

 
21,833

 
21,628

 
311,083

 
of which Vessel
 

 

 
135,195

 
128,722

 

 

 
21,833

 
21,628

 
307,377

 
Current Assets
 

 
800

 
10,809

 
10,001

 
418,505

 
267

 
1,573

 
5,577

 
447,531

 
of which cash and cash equivalents
 

 
800

 
1,701

 
917

 
3,246

 

 

 
250

 
6,913

 
Non Current Liabilities
 

 
525

 
97,514

 
49,026

 
490

 

 
18,390

 
18,773

 
184,718

 
Of which bank loans
 

 

 
45,567

 
43,927

 

 

 

 

 
89,495

 
Current Liabilities
 
10

 
1

 
26,370

 
27,318

 
415,301

 
51

 
705

 
4,328

 
474,085

 
Of which bank loans
 

 

 
24,856

 
23,968

 
135,000

 

 

 

 
183,824

 
Net assets (100%)
 
520

 
274

 
24,351

 
62,379

 
3,658

 
216

 
4,310

 
4,104

 
99,811

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Group's share of net assets
 
260

 
137

 
12,175

 
31,189

 
2,227

 
127

 
2,155

 
2,052

 
50,322

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shareholders loans to joint venture
 

 

 
23,215

 

 

 

 
18,390

 
18,773

 
60,379

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Carrying amount of interest in joint venture
 
260

 
137

 
12,175

 
31,189

 
2,227

 
127

 
2,155

 
2,052

 
50,322

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Remaining shareholders loan to joint venture
 

 

 
23,215

 

 

 

 
18,390

 
18,773

 
60,379

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 

 
8

 
49,434

 
49,487

 
1,307,523

 

 
938

 
1,970

 
1,409,360

 
Depreciations and amortization
 

 

 
(18,209
)
 
(17,933
)
 
(67
)
 

 
(273
)
 
(507
)
 
(36,988
)
 
Interest expense
 

 

 
(4,633
)
 
(4,482
)
 
(3,292
)
 

 
(155
)
 
(202
)
 
(12,764
)
 
Income tax expense
 

 

 
(1,588
)
 
(1,573
)
 
(243
)
 

 

 

 
(3,405
)
 
Profit (loss) for the period (100%)
 
(3
)
 
6

 
15,881

 
15,743

 
746

 
(24
)
 
310

 
104

 
32,763

 
Other comprehensive income (100%)
 

 

 
(735
)
 
(706
)
 

 

 

 

 
(1,441
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Group's share of profit (loss) for the period
 
(1
)
 
3

 
7,941

 
7,871

 
454

 
(14
)
 
155

 
52

 
16,460

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Group's share of other comprehensive income
 

 

 
(367
)
 
(353
)
 

 

 

 

 
(720
)
 

Loans and borrowings
On March 29, 2018, TI Asia Ltd. and TI Africa Ltd. entered into a $220.0 million senior secured credit facility. The facility consists of a term loan of $110.0 million and a revolving loan of $110.0 million for the purpose of refinancing the two FSOs as well as for general corporate purposes. The Company provided a guarantee for the revolving credit facility tranche. The fair value of this guarantee is not significant given the long term contract both FSOs have with North Oil Company until mid 2022, which results in sufficient repayment capacity under these facilities. Transaction costs for a total amount of $2.2 million are amortized over the lifetime of the instrument using the effective interest rate method. As of December 31, 2019 the outstanding balance on this facility was $139.2 million in aggregate.
All bank loans in the joint ventures are secured by the underlying FSO and subject to specific covenants.
The following table summarizes the terms and debt repayment profile of the bank loans held by the joint ventures:
(in thousands of USD)
 
 
 
 
 
 
 
December 31, 2019
 
December 31, 2018
 
 
Curr.
 
Nominal interest rate
 
Year of mat.
 
Facility size
 
Drawn
 
Carrying value
 
Facility size
 
Drawn
 
Carrying value
TI Asia Ltd revolving loan 54M*
 
USD
 
libor +2.0%
 
2022

 
34,163

 
34,163

 
33,948

 
45,671

 
45,671

 
45,283

TI Asia Ltd loan 54M*
 
USD
 
libor +2.0%
 
2022

 
34,163

 
34,163

 
33,948

 
45,671

 
45,671

 
45,283

TI Africa Ltd revolving loan 56M*
 
USD
 
libor +2.0%
 
2022

 
35,429

 
35,429

 
35,212

 
47,362

 
47,362

 
46,974

TI Africa Ltd loan 56M*
 
USD
 
libor +2.0%
 
2022

 
35,429

 
35,429

 
35,212

 
47,362

 
47,362

 
46,974

Total interest-bearing bank loans
 
 
 
139,183

 
139,183

 
138,319

 
186,067

 
186,067

 
184,513

* The mentioned secured bank loans are subject to loan covenants.
Loan covenant
As of December 31, 2019, all joint ventures were in compliance with the covenants, as applicable, of their respective loans.

Interest rate swaps
In 2018, TI Asia and TI Africa entered in several Interest Rate Swap (IRSs) instruments for a combined notional value of $208.8 million (Euronav’s share amounts to 50%) in connection to the $220.0 million facility. These IRSs are used to hedge the risk related to the fluctuation of the Libor rate and qualify as hedging instruments in a cash flow hedge relationship under IFRS 9. These instruments are measured at their fair value; effective changes in fair value have been recognized in OCI and the ineffective portion has been recognized in profit or loss. These IRSs have a remaining duration between two and three years matching the repayment profile of that facility and mature on July 21, 2022 and September 22, 2022 for FSO Asia and FSO Africa respectively (see Note 14).
Vessels
On November 19, 2019, the group entered into a joint venture together with affiliates of Ridgebury Tankers and clients of Tufton Oceanic. Each 50%-50% joint venture company has acquired one Suezmax vessel. The joint ventures have acquired two Suezmax tankers (Bari & Bastia) for a total consideration of $40.6 million.

There were no capital commitments as of December 31, 2019, December 31, 2018 and December 31, 2017.
Cash and cash equivalents
(in thousands of USD)
 
2019
 
2018
 
 
 
 
 
Cash and cash equivalents of the joint ventures
 
6,913

 
6,227

Group's share of cash and cash equivalents
 
3,814

 
3,385

of which restricted cash
 

 


Services
The Group entered into an agreement with its joint venture to manage commercially both vessels by the Group's chartering desk. Furthermore the Group also entered into an agreement to render accounting, assistance and administrative services. In 2019 the Group invoiced a total amount of $18,222. Furthermore, the joint venture entered into an agreement with the Group to invoice us management fees to do the follow up of the external shipmanagement. In 2019, Ridgebury invoiced the Group $40,050.