TIDMDPW
RNS Number : 7347C
DP World Limited
20 March 2014
DP WORLD ANNOUNCES STRONG FINANCIAL RESULTS
Like-for-like profit grows 27% in 2013
Dubai, United Arab Emirates, 20 March, 2014: Global marine
terminal operator DP World today announces strong financial results
from its global portfolio of marine terminals for the twelve months
to 31 December 2013, delivering profit attributable to owners of
the Company before separately disclosed items of $604 million,
26.6% ahead of last year on a like-for-like basis.
Results before separately 2013 2012 As like
disclosed items(1) unless Reported for
otherwise stated % change like
at constant
currency
% change(2)
USD million
Consolidated throughput(3)
(TEU '000) 26,077 27,097 (3.8%) (0.5%)
Revenue 3,073 3,121 (1.5%) 3.6%
Share of profit from equity-accounted
investees 84 134 (37.0%) 3.8%
Adjusted EBITDA(4) 1,414 1,404 0.7% 9.0%
Adjusted EBITDA margin 46.0% 45.0% 47.6%(5)
Profit for the period 674 625 7.9% 23.9%
Profit for the period attributable
to owners of the Company 604 545 10.9% 26.6%
Profit for the period attributable
to owners of the Company
after separately disclosed
items 640 738 (13.4%) -
Earnings per share attributable
to owners of the Company
(US cents) 72.8 65.7 10.9% 26.6%
Ordinary Dividend per share
(US Cents) 23.0 21.0 9.5%
--------------------------------------- ------- ------- ---------- -------------
Our results reflect a very strong performance from those
terminals which were operational within our portfolio for the
duration of the year. Excluding acquisitions, disposals and
monetisations, new capacity and currency fluctuations, revenue
growth was 3.6%; adjusted EBITDA growth was 9.0%, our adjusted
EBITDA margin rose to 47.6% and EPS was 26.6% ahead of last
year.
Ø Revenue of $3,073 million
-- Like-for-like revenue increased 3.6% driven by a 4.6%
increase in container revenue per TEU (twenty-foot equivalent
units)
-- Like-for-like non-container revenue increased 1.7%
Ø Adjusted EBITDA of $1,414 million; adjusted EBITDA margin of
46.0%
-- A focus on higher margin business coupled with continued cost
control improved adjusted EBITDA margin
Ø Profit for the period attributable to owners of the Company of
$604 million
-- Strong adjusted EBITDA growth resulted in a 26.6% increase in
like-for-like profit attributable to owners of the Company before
separately disclosed items
Ø Active management of portfolio to recycle capital into faster
growing markets
-- Proceeds of $659 million from monetisation of assets during
the year
-- Profit attributable to owners of the Company after separately
disclosed items of $640 million
Ø Strong cash generation and balance sheet remains robust
-- Cash from operating activities amounted to $1,299 million.
Cash conversion remained high at approximately 92% of EBTIDA
-- Free cash flow (post maintenance capital expenditure and pre
dividends) amounted to $1,034 million
-- Leverage (Net Debt to adjusted EBITDA) reduced from 2.0 to
1.7 times assisted by proceeds from monetisation of assets during
the year
Ø Continued investment in quality long-term assets to drive
long-term profitable growth
-- $1,063 million invested across the portfolio
-- Jebel Ali (UAE) added 1 million TEU capacity, new projects
Embraport (Brazil) and London Gateway (UK) opened during the
year
Ø Total dividend per share of 23 US cents
-- Ordinary dividend of 23 US cents per share, 10% ahead of the
prior year
DP World Chairman, Sultan Ahmed Bin Sulayem commented;
"DP World is pleased to announce another set of strong financial
results, with like-for-like attributable earnings growing by 26.6%.
This performance has been achieved despite the Group facing some
challenging market conditions, particularly in the first half of
the year, and being capacity constrained within a number of our key
locations. Overall, we believe this robust set of results
illustrates the resilient nature of our portfolio."
"Our portfolio remains well positioned to capitalise on the
significant medium to long-term growth potential of this industry
due to our continued focus on the faster growing markets and stable
origin and destination cargo. This positioning combined with our
ability to add new capacity will enable us to deliver both earnings
growth and shareholder value over the long term.
"Following the strong financial performance, combined with the
realisation of profit from the monetisation of assets during the
year, the Board of DP World is recommending a total dividend of
$190.9 million, or 23 US cents per share. This comprises a 10%
increase in the ordinary dividend. The Board is confident of the
Company's ability to continue to generate cash and support our
future growth whilst maintaining a consistent dividend payout."
DP World Group Chief Executive, Mohammed Sharaf commented;
"We have reported another set of robust financial results for
2013. We believe like-for-like revenue growth above 3.5%, 9.0%
like-for-like EBITDA growth, 26.6% like-for-like EPS growth and a
47.6% like-for-like adjusted EBITDA margin is a resilient
performance given some of the challenges that we have faced.
"We remain on track and on budget with respect to our 2012-2014
$3.7 billion capital expenditure programme. During 2013, we opened
our new state of the art facility at London Gateway (UK) and
Embraport (Brazil), while adding 1 million TEU of much needed new
capacity in the UAE. We are encouraged by the performance of our
new operations and in 2014 we look forward to adding further
capacity at Jebel Ali (UAE) and Rotterdam (Netherlands). The
opening of Jebel Ali's Terminal 3 will add another 4 million TEU
and take total capacity to 19 million TEU.
"We continue to manage our portfolio actively, having monetised
some of our assets in Hong Kong this year and we expect to recycle
this cash into projects that will return higher growth on our
capital employed. Crucially our balance sheet remains strong, which
provides us with the flexibility to invest in the future growth of
our current portfolio, and to make new investments should the right
opportunities arise, enhancing returns to shareholders over the
medium term.
"Looking ahead, while the outlook in some regions remains
challenging, we have demonstrated our ability to remain profitable
despite these headwinds. We have made an encouraging start to 2014
and, for the year as a whole and beyond, we expect to see a return
to normalised volume growth driven by the addition of new capacity
in our portfolio and a gradually improving macro environment. We
continue to focus on delivering efficiencies, containing costs and
handling higher margin containers to drive profitability. Our
business is well positioned for growth and we believe we are well
placed to continue to outperform the market."
Chairman, CEO and CFO Statements are provided from page 5
- END -
Investor Enquiries
Redwan Ahmed Jasmine Lindsay
DP World Limited DP World Limited
Mobile: +971505541557 Mobile:+97150422045
Direct: +97148080842 Direct: +97148080812
redwan.ahmed@dpworld.com jasmine.lindsay@dpworld.com
12 Noon Conference Call and Analyst / Investor Meeting in Dubai,
UAE
1) Meeting for analysts and investors hosted by CEO Mohammed
Sharaf and CFO Yuvraj Narayan in Dubai, UAE at 1200 noon on
Thursday 20 March at DIFC Centre of Excellence, DIFC Gate Village
Building 2, Level 1. Those unable to attend in person can join the
meeting by conference call (0800 London).
2) An additional conference Call will be hosted at 1600 Dubai
time (1200 London, 0800 New York) on Thursday 20 March 2013.
3) A playback of the call will be available shortly after the 12
noon conference call concludes. For the dial in details and
playback details please contact investor.relations@dpworld.com.
The presentation accompanying these conference calls will be
available on DP World's website within the investor centre.
www.dpworld.com from 0900 UAE time this morning.
Forward-Looking Statements
This document contains certain "forward-looking" statements
reflecting, among other things, current views on our markets,
activities and prospects. By their nature, forward-looking
statements involve risk and uncertainty because they relate to
future events and circumstances that may or may not occur and which
may be beyond DP World's ability to control or predict (such as
changing political, economic or market circumstances). Actual
outcomes and results may differ materially from any outcomes or
results expressed or implied by such forward-looking statements.
Any forward-looking statements made by or on behalf of DP World
speak only as of the date they are made and no representation or
warranty is given in relation to them, including as to their
completeness or accuracy or the basis on which they were prepared.
Except to the extent required by law, DP World does not undertake
to update or revise forward-looking statements to reflect any
changes in DP World's expectations with regard thereto or any
changes in information, events, conditions or circumstances on
which any such statement is based.
Chairman's Statement
I am pleased to report another successful year for DP World.
Despite the on-going challenges affecting the world's economies, DP
World delivered profit for the year of $674 million. This robust
performance reflects our continued focus on higher margin revenue
and minimising costs, on maintaining a strong balance sheet, and on
making the most of opportunities to free up capital to re-invest
where it will bring the greatest returns.
Excluding profit from divestments and monetisations during the
year, the profit attributable to the owners of the Company was $604
million.
Delivering our strategy
Our strategy is centred on four priorities: driving sustained
long-term shareholder value; creating a satisfied and profitable
customer experience; ensuring our operations are efficient, safe
and secure; and creating a learning and growth environment for our
people. We believe we continue to make excellent progress in each
of these areas.
Value for shareholders, value for customers
With an average concession life of around 40 years, sustaining
value is a key driver. We remain confident of achieving our target
of a 15% return on capital employed (ROCE)(6) on our existing
portfolio and an adjusted EBITDA margin(7) of 50% by 2020.
Our investments are focused on ensuring that we have the right
capacity in the right locations and the right services to meet our
customers' needs today and tomorrow. During 2013, this included
opening for business nearly four million TEU of new capacity across
Jebel Ali (UAE), the DP World London Gateway port (UK) and
Embraport (Brazil). The opening of additional capacity was
supported by the implementation of the latest technology across our
portfolio, to speed up our customers' supply chains and bring goods
more swiftly to market.
EXPO 2020
We were delighted to be a premier partner of Dubai's Expo2020
bid. Our entire team was behind the bid and we are excited and
proud that it was successful. Our attention now turns to making
sure we have the infrastructure in place to support this event, and
we will be working very closely with our customers to achieve this
goal.
We look forward to working with Dubai and the UAE to host this
unique event. This event will not only create opportunities for the
UAE, it will also create new opportunities for other countries in
the region and people across the world.
Board Changes
The close of 2013 saw long standing Board member Cho Ying Davy
Ho step down from his role as an Independent Non-Executive
Director. On behalf of the Board, I would like to thank Davy for
his valuable contribution to the successful strategic development
of our business during his time on the Board. I am pleased to
welcome Robert Woods, CBE, to the Board from 1 January 2014 as an
Independent Non-Executive Director.
As a former Chief Executive Officer of the Peninsular &
Oriental Steam Navigation Company, Robert's considerable experience
in our industry will be of great value to our organisation as we
continue to drive our business forward with strong governance and
sound counsel, focused on delivering shareholder value.
Dividend
Following the strong performance this year, the Board is
recommending an annual dividend of 23 US cents per share. This
comprises a 10% increase in the ordinary dividend to 23 US cents.
There is no special dividend given the relatively lower reported
gain on separately disclosed items. The growth in the ordinary
dividend reflects the Board's confidence in our ability to generate
continued earnings growth and strong cash flows. Subject to
approval by shareholders, the dividend will be paid on 6 May 2014
to shareholders on the relevant register as at close of business on
1 April 2014.
Outlook
While the outlook in some regions remains challenging, we have
demonstrated our ability to remain profitable despite these
headwinds. We have made an encouraging start to 2014 and, for the
year as a whole and beyond, we expect to see a return to normalised
volume growth driven by the addition of new capacity in our
portfolio and a gradually improving macro environment. We continue
to focus on delivering efficiencies, containing costs and handling
higher margin containers to drive profitability. Our business is
well positioned for medium to long-term growth underpinning our
confidence in meeting our 2020 target of an adjusted EBITDA margin
of 50% and ROCE of 15% on our existing portfolio.
Finally, I am encouraged by and grateful for the ongoing
commitment of all our partners. As we continue our exciting journey
as a leading global terminal operator, I look forward to delivering
another year of sustained growth and success with our
shareholders.
Group Chief Executive Officer's Review
In 2013, we continued to steer the business through a difficult
macro economic environment, remaining focused on higher margin
revenues while containing costs and improving efficiencies across
our portfolio. Driving this strategy with relentless focus over the
course of 2013 has resulted in this excellent set of financial
results.
We are pleased to report adjusted EBITDA(8) of $1,414 million
and Earnings Per Share (EPS)(9) of 72.8 cents, which represents
like-for-like growth of 9% and 27% respectively. We also increased
our adjusted EBITDA margin to 46% as we focused on higher margin
cargo during the year.
Our strong financial performance came despite muted volume
growth. Economic headwinds combined with a highly utilised
portfolio with limited spare capacity at key locations constrained
our ability to significantly grow volumes in 2013. However, the
addition of new capacity in 2014 combined with a projected
improvement in global trade sets a promising tone for the year
ahead.
Efficiency
We continue our relentless drive to deliver increased
productivity and 2013 was another successful year. Berth moves per
hour (BMPH), which measures the turn-around time for a vessel,
increased further during the year and has now improved by 18% in
the last four years. Our gross moves per hour (GMPH), which
measures the productivity of our cranes, has delivered a similar
trend improving 8% during the same period.
Capital Expenditure
We continue to invest in our portfolio for future growth. Over
the course of 2013 we spent $1,063 million in capital expenditure,
predominately at our greenfield DP World London Gateway port and
logistics park project in the UK, Embraport (Brazil) and the
expansion of our flagship Jebel Ali facility in the UAE.
These projects, consistent with the overall nature of our
portfolio, are long-term investments, with the life of our
concessions averaging approximately 40 years. Our strong cash flows
and solid balance sheet mean we are well placed to invest today to
meet the long-term needs of our customers whether it is in
developed markets requiring increased efficiencies or the
capability to handle the increasing size of vessels or in
developing markets requiring increased port capacity to meet demand
or dated infrastructure.
In the developed markets we have invested in the DP World London
Gateway port, which offers a state-of-the art facility to meet the
future demands of the industry. In short, our port provides the
most efficient link between deep-sea shipping and the largest
consumer markets in the UK. We are seeing an increasing number of
shipping lines calling at our facility and since the turn of the
year we have had eight unscheduled calls at DP World London Gateway
port, including an Asia-Europe service, as our port was less
impacted by adverse weather due to its sheltered location.
In faster growing markets, we have invested in the largest
multi-modal terminal in Brazil (Embraport), which is in the port of
Santos,80 kilometres away from Sao Paulo, the country's most
populous city. Our terminal has seen encouraging demand since
opening as the growth of the middle class population in Brazil and
wider region continues to drive demand for containerised goods.
In 2014, we look forward to adding further capacity at Jebel Ali
(UAE) and Rotterdam (Netherlands). We are making good progress with
Terminal 3 Jebel Ali and it remains on track to deliver four
million TEU of additional capacity. Rotterdam is on schedule to
open in the second half 2014.
Alongside investing for the sustainable growth of our business,
we also continually review our portfolio, disposing of or
monetising assets where it makes strategic sense to do so. In 2013,
we monetised some of our Hong Kong assets at attractive multiples
which subsequently reduced leverage and enabled the recycling of
capital into markets that offer the potential to generate higher
returns.
Strong Balance Sheet
Our balance sheet remains strong with leverage (net debt to
adjusted EBITDA) at a relatively low 1.7 times. This provides us
with the headroom and flexibility to invest further should the
right opportunities become available. However, we continue to
implement strict financial discipline across our business units,
and will only deploy shareholder funds if investment opportunities
meet our internal rate-of-return requirements.
Chief Financial Officer's Review
DP World has delivered another set of strong financial result in
2013 with profit attributable to owners of the Company growing
10.9% to $604 million. Our adjusted EBITDA was $1,414 million,
while adjusted EBITDA margins reached a new high of 46%. On a
like-for-like basis the growth was solid with adjusted EBITDA and
EPS growing by 9% and 27% respectively driven by margin growth in
our Middle East, Europe and Africa region.
2013 revenues grew by 3.6% on a like-for-like basis, despite
reporting a 0.5% decline in like-for-like consolidated volumes,
which illustrates our ability to target higher margin cargo. Our
2013 like-for-like gross volumes grew marginally by 0.7%, due to a
combination of being capacity constrained at key locations
including Jebel Ali (UAE) and tougher operating environments in the
Asia Pacific and Indian Subcontinent region, particularly in the
first half of 2013. After a difficult start to 2013, we were
encouraged by our volume improvement and a strong second half of
the year resulted in marginal full year volume growth.
Middle East, Europe and Africa
Results before separately 2013 2012 % change Like-for-like
disclosed items at constant
currency
% change
USD million
Consolidated throughput
(TEU '000) 18,993 19,202 (1.1%) 0.4%
Revenue 2,124 2,112 0.6% 4.4%
Share of profit from equity-accounted
investees 8 24 (65.2%) 2.6%
Adjusted EBITDA 1,095 1021 7.3% 10.1%
Adjusted EBITDA margin 51.6% 48.3% - 52.7%(10)
--------------------------------------- ------- ------- --------- --------------
Market conditions in the Middle East, Europe and Africa region
were mixed. Resilience in our UAE and Africa portfolio mitigated
the weaker markets elsewhere. In fact, the UAE delivered another
record year with throughput reaching 13.6 million TEU despite being
capacity constrained at the start of the year. Consolidated
throughput for the region was down 1.1% for the year but our
revenue grew 4.4% on a like-for-like basis as our cargo mix
favoured higher margin origin and destination and non-container
traffic, particularly in the UAE. This translated into a strong
financial performance with adjusted EBITDA improving by 7.3% to
$1,095 million, while the adjusted EBITDA margin expanded to
51.6%.
Asia Pacific and Indian Subcontinent
Results before separately 2013 2012 % change Like-for-like
disclosed items at constant
currency
% change
USD million
Consolidated throughput
(TEU '000) 4,604 5,401 (14.8%) (3.9%)
Revenue 355 457 (22.2%) (7.6%)
Share of profit from equity-accounted
investees 90 111 (18.7%) (4.5%)
Adjusted EBITDA 220 299 (26.6%) (13.4%)
Adjusted EBITDA margin 61.8% 65.6% - 59.8%(11)
--------------------------------------- ------ ------ --------- --------------
It has been well documented that market conditions in the Asia
Pacific and Indian Subcontinent region were challenging,
particularly in the first half of 2013. Weaker than expected GDP
growth in Asia combined with a depreciating currency and
divestments and monetisations impacted reported volumes, which were
down 15% for the year. However on a like-for-like basis the decline
was a more modest 4.0%. Reported revenues declined to $355 million
while adjusted EBITDA fell to $220 million. However our focus on
higher margin cargo and cost efficiencies meant that our margin was
protected with an adjusted EBITDA margin of 61.8%. On a more
positive note, we witnessed improved market conditions in the
second half of 2013 in the region.
Australia and Americas
Reported results before 2013 2012 % change Like-for-like
separately disclosed items at constant
currency
% change
USD million
Consolidated throughput
(TEU '000) 2,480 2,494 (0.6%) (0.6%)
Revenue 594 553 7.5% 8.9%
Share of profit from equity-accounted
investees (14.0) (1.0) - -
Adjusted EBITDA 195 166 17.7% 31.7%
Adjusted EBITDA margin 32.9% 30.0% - 34.7%(12)
--------------------------------------- ------- ------ --------- --------------
The Australia and Americas region delivered a resilient
performance with consolidated volumes down marginally by 0.6% in
2013. The Americas delivered a softer performance in the second
half of the year due to tough prior year comparables. Overall our
revenues in the Australia and Americas region grew by 7.5% to 594
million for the year and our focus on higher margin cargo meant
that our adjusted EBITDA of $195 million was up by a pleasing 18%
on the prior period, while adjusted EBITDA margins also grew to
32.9%.
Cash Flow and Balance Sheet
Cash generation remained strong with cash from operations
standing at $1,299 million for 2013. Our capex reached $1,063
million as we delivered some key projects including the DP World
London Gateway port (UK) and the expansion at Jebel Ali (UAE).
Gross debt rose marginally to $5,035 million while net debt
declined to $2,464 million. Our gearing remains relatively low with
net debt to adjusted EBITDA standing at 1.7 times.
Capital Expenditure
We maintain our 2012-2014 $3.7 billion dollar capital
expenditure guidance as our projects remain on schedule and on
budget. We look forward to adding further capacity at Jebel Ali
(UAE) and Rotterdam (Netherlands). The lower than expected reported
capital expenditure in 2013 is due to timing differences and we
expect that to unwind in 2014.
2020 Targets
In summary, we continue to work towards achieving our 2020
targets of 50% adjusted EBITDA margins and 15% ROCE on our existing
portfolio. While reported adjusted EBITDA margin stood at 46%, the
margin on a like-for-like basis was 47.6%. Our ROCE for our
portfolio of assets reached 6.7% in 2013, up from 4.4% in 2010. We
expect further ROCE improvement in the coming years as we continue
to grow and increase utilisation levels across the portfolio.
Mohammed Sharaf Yuvraj Narayan
Group Chief Executive Chief Financial Officer
Officer
----------------------- -------------------------
DP World Limited
and its subsidiaries
Consolidated financial statements
31 December 2013
DP World Limited and its subsidiaries
Consolidated financial statements
31 December 2013
Contents Page
Independent auditors' report 1 - 2
Consolidated income statement 3
Consolidated statement of comprehensive income 4
Consolidated statement of financial position 5 - 6
Consolidated statement of changes in equity 7 - 8
Consolidated statement of cash flows 9 - 10
Notes to consolidated financial statements 11 - 94
Independent auditors' report
The Shareholders
DP World Limited
Report on the consolidated financial statements
We have audited the accompanying consolidated financial
statements of DP World ("the Company") and its subsidiaries
(collectively referred to as "the Group"), which comprise the
consolidated statement of financial position as at 31 December
2013, the consolidated statements of comprehensive income
(comprising a separate consolidated income statement and a
consolidated statement of comprehensive income), consolidated
statements of changes in equity and cash flows for the year then
ended, and notes, comprising a summary of significant accounting
policies and other explanatory information.
Management's responsibility for the consolidated financial
statements
Management is responsible for the preparation and fair
presentation of these consolidated financial statements in
accordance with International Financial Reporting Standards, and
for such internal control as management determines is necessary to
enable the preparation of consolidated financial statements that
are free from material misstatement, whether due to fraud or
error.
Auditors' responsibility
Our responsibility is to express an opinion on these
consolidated financial statements based on our audit. We conducted
our audit in accordance with International Standards on Auditing.
Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about
whether the consolidated financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the consolidated financial
statements. The procedures selected depend on our judgement,
including the assessment of the risks of material misstatement of
the consolidated financial statements, whether due to fraud or
error. In making those risk assessments, we consider internal
control relevant to the entity's preparation and fair presentation
of the consolidated financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the
entity's internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness
of accounting estimates made by management, as well as evaluating
the overall presentation of the consolidated financial
statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the consolidated financial statements give a
true and fair view of the consolidated financial position of the
Group as at 31 December 2013, and of its consolidated financial
performance and its consolidated cash flows for the year then ended
in accordance with International Financial Reporting Standards.
Independent auditors' report (continued)
Matters on which we are required to report by exception
We have nothing to report in respect of the following:
Under the Listing Rules, we are required to review:
-- the director's statement, set out on page [--], in relation to going concern;
-- the part of the corporate governance statement on page [--]
relating to the Company's compliance with the nine provisions of
the UK Corporate Governance Code specified for our review; and
-- certain elements of the report to shareholders by the Board on Directors' remuneration.
On behalf of KPMG LLP
DP World Limited and its subsidiaries
Consolidated income statement
for the year ended 31 December 2013
Year ended 31 December Year ended 31 December
2013 2012 (Restated *)
------------------ ------- ------------------------------------------------ -------------------------------------------
Separately Separately
Before disclosed Before disclosed
Notes separately items Total separately items Total
disclosed (Note disclosed (Note
items 12) items 12)
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
Revenue 8 3,073,248 - 3,073,248 3,121,017 - 3,121,017
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
Cost of sales (1,849,087) - (1,849,087) (2,003,318) - (2,003,318)
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
------------ ---------- ------------- ------------ ----------- -------------
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
Gross profit 1,224,161 - 1,224,161 1,117,699 - 1,117,699
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
General and
administrative
expenses (311,243) (101,433) (412,676) (279,459) (55,850) (335,309)
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
Other income 21,458 - 21,458 21,643 - 21,643
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
Profit on sale
and termination
of businesses 12 - 158,188 158,188 - 237,204 237,204
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
Share of profit/
(loss)
from
equity-accounted
investees (net
of tax) 16 84,366 (4,305) 80,061 133,897 20,710 154,607
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
------------- --------- ------------ ---------- ---------- ------------
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
Results from
operating
activities 1,018,742 52,450 1,071,192 993,780 202,064 1,195,844
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
------------- --------- ------------ --------- ---------- ------------
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
Finance income 10 84,493 - 84,493 75,211 - 75,211
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
Finance costs 10 (369,439) - (369,439) (371,229) (10,373) (381,602)
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
---------- --------- ---------- ---------- --------- ----------
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
Net finance costs (284,946) - (284,946) (296,018) (10,373) (306,391)
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
---------- --------- ---------- ---------- --------- ----------
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
Profit before tax 733,796 52,450 786,246 697,762 191,691 889,453
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
Income tax
expense 11 (59,558) (4,900) (64,458) (72,954) - (72,954)
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
---------- --------- ---------- --------- ---------- -----------
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
Profit for the
year 9 674,238 47,550 721,788 624,808 191,691 816,499
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
====== ===== ====== ====== ====== ======
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
Profit
attributable
to:
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
Owners of the
Company 604,421 35,215 639,636 545,182 193,216 738,398
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
Non-controlling
interests 69,817 12,335 82,152 79,626 (1,525) 78,101
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
---------- --------- ---------- ---------- ----------- ----------
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
674,238 47,550 721,788 624,808 191,691 816,499
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
====== ===== ====== ====== ====== ======
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
Earnings per
share
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
Basic and diluted
earnings
per share - US
cents 24 77.06 88.96
------------------ ------- -------------- ------------ ------------------ ------------- ------------ --------------
===== =====
------------------------------------------- ------------ ------------------ ------------- ------------ --------------
* Refer to note 3 (f).
The accompanying notes 1 to 34 form an integral part of these
consolidated financial statements.
The independent auditors' report is set out on pages 1 and
2.
DP World Limited and its subsidiaries
Consolidated statement of comprehensive income
for the year ended 31 December 2013
2013 2012
------------------------------------------------ ------ ----------- -----------
Notes USD'000 USD'000
------------------------------------------------ ------ ----------- -----------
(Restated
*)
------------------------------------------------ ------ ----------- -----------
Profit for the year 721,788 816,499
------------------------------------------------ ------ ----------- -----------
---------- ----------
------------------------------------------------ ------ ----------- -----------
Other comprehensive income
------------------------------------------------ ------ ----------- -----------
Items that are or may be reclassified
subsequently to
consolidated income statement:
------------------------------------------------ ------ ----------- -----------
Foreign exchange translation
differences for foreign operations
** (133,211) 104,135
------------------------------------------------ ------ ----------- -----------
Foreign exchange profit recycled
to consolidated
income statement on sale of
businesses (4,316) (2,131)
------------------------------------------------ ------ ----------- -----------
Net change in cash flow hedges
recycled to
consolidated income statement - 10,373
------------------------------------------------ ------ ----------- -----------
Net change in fair value of available-for-sale
financial assets 17 3,160 (132)
------------------------------------------------ ------ ----------- -----------
Share in other comprehensive
income of equity-accounted investees 17,772 (8,686)
------------------------------------------------ ------ ----------- -----------
Effective portion of net changes
in fair value of cash flow hedges 96,743 (24,768)
------------------------------------------------ ------ ----------- -----------
Related tax on fair value of
cash flow hedges (18,863) 10,444
------------------------------------------------ ------ ----------- -----------
Items that will never be reclassified
to consolidated income
statement:
------------------------------------------------ ------ ----------- -----------
Remeasurements of post-employment
benefit obligations 26 38,880 (30,769)
------------------------------------------------ ------ ----------- -----------
Related tax (1,480) 500
------------------------------------------------ ------ ----------- -----------
--------- ---------
------------------------------------------------ ------ ----------- -----------
Other comprehensive income for
the year, net of
income tax (1,315) 58,966
------------------------------------------------ ------ ----------- -----------
---------- ----------
------------------------------------------------ ------ ----------- -----------
Total comprehensive income for
the year 720,473 875,465
------------------------------------------------ ------ ----------- -----------
====== ======
------------------------------------------------ ------ ----------- -----------
Total comprehensive income attributable
to:
------------------------------------------------ ------ ----------- -----------
Owners of the Company 628,586 797,454
------------------------------------------------ ------ ----------- -----------
Non-controlling interests 91,887 78,011
------------------------------------------------ ------ ----------- -----------
---------- ----------
------------------------------------------------ ------ ----------- -----------
720,473 875,465
------------------------------------------------ ------ ----------- -----------
====== ======
------------------------------------------------ ------ ----------- -----------
* Refer to note 3 (f).
** A significant portion of this includes foreign exchange
translation differences arising from the translation of goodwill
and purchase price adjustments which are denominated in foreign
currencies at the Group level. The translation differences arising
on account of translation of the financial statements of foreign
operations whose functional currencies are different from that of
the Group's presentation currency on Group consolidation are also
reflected here. There are no differences on translation from
functional to presentation currency as the Company's functional
currency is currently pegged to the presentation currency (refer to
note 2(d)).
The accompanying notes 1 to 34 form an integral part of these
consolidated financial statements.
The independent auditors' report is set out on pages 1 and
2.
DP World Limited and its subsidiaries
Consolidated statement of financial position
as at 31 December 2013
31 December 31 December 1 January
2013 2012 2012
-------------------------------- ------ -------------- -------------- --------------
Notes USD'000 USD'000 USD'000
-------------------------------- ------ -------------- -------------- --------------
(Restated (Restated
*) *)
-------------------------------- ------ -------------- -------------- --------------
Assets
-------------------------------- ------ -------------- -------------- --------------
Non-current assets
-------------------------------- ------ -------------- -------------- --------------
Property, plant and equipment 13 6,069,785 5,413,262 5,124,120
-------------------------------- ------ -------------- -------------- --------------
Goodwill 14 1,532,238 1,588,918 1,607,655
-------------------------------- ------ -------------- -------------- --------------
Port concession rights 14 2,904,481 3,115,084 3,223,958
-------------------------------- ------ -------------- -------------- --------------
Investment in equity-accounted
investees 16 2,700,703 3,348,317 3,451,264
-------------------------------- ------ -------------- -------------- --------------
Deferred tax assets 11 4,393 2,724 360
-------------------------------- ------ -------------- -------------- --------------
Other investments 17 62,923 60,833 73,193
-------------------------------- ------ -------------- -------------- --------------
Accounts receivable and
prepayments 18 181,110 263,428 260,114
-------------------------------- ------ -------------- -------------- --------------
------------- ------------- -------------
-------------------------------- ------ -------------- -------------- --------------
Total non-current assets 13,455,633 13,792,566 13,740,664
-------------------------------- ------ -------------- -------------- --------------
------------- ------------- -------------
-------------------------------- ------ -------------- -------------- --------------
Current assets
-------------------------------- ------ -------------- -------------- --------------
Inventories 51,717 53,283 54,979
-------------------------------- ------ -------------- -------------- --------------
Accounts receivable and
prepayments 18 680,694 609,422 627,297
-------------------------------- ------ -------------- -------------- --------------
Bank balances and cash 19 2,572,470 1,881,928 4,159,364
-------------------------------- ------ -------------- -------------- --------------
Assets held for sale - - 77,706
-------------------------------- ------ -------------- -------------- --------------
------------- ------------- -------------
-------------------------------- ------ -------------- -------------- --------------
Total current assets 3,304,881 2,544,633 4,919,346
-------------------------------- ------ -------------- -------------- --------------
------------- ------------- -------------
-------------------------------- ------ -------------- -------------- --------------
Total assets 16,760,514 16,337,199 18,660,010
-------------------------------- ------ -------------- -------------- --------------
======== ======== ========
-------------------------------- ------ -------------- -------------- --------------
* Refer to note 3 (f).
DP World Limited and its subsidiaries
Consolidated statement of financial position (continued)
as at 31 December 2013
31 December 31 December 1 January
2013 2012 2012
------------------------------- ------ -------------- -------------- --------------
Notes USD'000 USD'000 USD'000
------------------------------- ------ -------------- -------------- --------------
(Restated (Restated
*) *)
------------------------------- ------ -------------- -------------- --------------
Equity
------------------------------- ------ -------------- -------------- --------------
Share capital 20 1,660,000 1,660,000 1,660,000
------------------------------- ------ -------------- -------------- --------------
Share premium 21 2,472,655 2,472,655 2,472,655
------------------------------- ------ -------------- -------------- --------------
Shareholders' reserve 21 2,000,000 2,000,000 2,000,000
------------------------------- ------ -------------- -------------- --------------
Retained earnings 3,408,504 2,968,068 2,408,803
------------------------------- ------ -------------- -------------- --------------
Hedging and other reserves 21 (31,384) (122,229) (104,408)
------------------------------- ------ -------------- -------------- --------------
Actuarial reserve 21 (343,269) (379,171) (352,402)
------------------------------- ------ -------------- -------------- --------------
Translation reserve 21 (620,706) (482,909) (586,555)
------------------------------- ------ -------------- -------------- --------------
------------ ------------ ------------
------------------------------- ------ -------------- -------------- --------------
Total equity attributable
to equity holders
of the Company 8,545,800 8,116,414 7,498,093
------------------------------- ------ -------------- -------------- --------------
Non-controlling interests 22 475,741 663,993 765,013
------------------------------- ------ -------------- -------------- --------------
------------ ------------ ------------
------------------------------- ------ -------------- -------------- --------------
Total equity 9,021,541 8,780,407 8,263,106
------------------------------- ------ -------------- -------------- --------------
------------ ------------ ------------
------------------------------- ------ -------------- -------------- --------------
Liabilities
------------------------------- ------ -------------- -------------- --------------
Non-current liabilities
------------------------------- ------ -------------- -------------- --------------
Deferred tax liabilities 11 935,586 967,902 977,503
------------------------------- ------ -------------- -------------- --------------
Employees' end of service
benefits 25 61,740 55,747 49,393
------------------------------- ------ -------------- -------------- --------------
Pension and post-employment
benefits 26 169,778 223,234 194,111
------------------------------- ------ -------------- -------------- --------------
Interest bearing loans
and borrowings 27 4,776,690 4,049,621 4,563,309
------------------------------- ------ -------------- -------------- --------------
Accounts payable and
accruals 28 281,246 504,755 467,240
------------------------------- ------ -------------- -------------- --------------
------------- ------------- -------------
------------------------------- ------ -------------- -------------- --------------
Total non-current liabilities 6,225,040 5,801,259 6,251,556
------------------------------- ------ -------------- -------------- --------------
------------- ------------- -------------
------------------------------- ------ -------------- -------------- --------------
Current liabilities
------------------------------- ------ -------------- -------------- --------------
Income tax liabilities 11 210,347 186,586 172,862
------------------------------- ------ -------------- -------------- --------------
Bank overdrafts 19 1,407 195 1,017
------------------------------- ------ -------------- -------------- --------------
Pension and post-employment
benefits 26 10,068 11,845 12,621
------------------------------- ------ -------------- -------------- --------------
Interest bearing loans
and borrowings 27 258,327 702,835 3,178,446
------------------------------- ------ -------------- -------------- --------------
Accounts payable and
accruals 28 1,033,784 854,072 780,402
------------------------------- ------ -------------- -------------- --------------
------------- ------------- -------------
------------------------------- ------ -------------- -------------- --------------
Total current liabilities 1,513,933 1,755,533 4,145,348
------------------------------- ------ -------------- -------------- --------------
------------- ------------- -------------
------------------------------- ------ -------------- -------------- --------------
Total liabilities 7,738,973 7,556,792 10,396,904
------------------------------- ------ -------------- -------------- --------------
------------- ------------- -------------
------------------------------- ------ -------------- -------------- --------------
Total equity and liabilities 16,760,514 16,337,199 18,660,010
------------------------------- ------ -------------- -------------- --------------
======== ======== ========
------------------------------- ------ -------------- -------------- --------------
* Refer to note 3 (f).
The accompanying notes 1 to 34 form an integral part of these
consolidated financial statements. The consolidated financial
statements were authorised for issue on 20 March 2014.
..........................................................
..........................................................
Mohammed Sharaf Yuvraj Narayan
Chief Executive Officer Chief Financial Officer
The independent auditors' report is set out on pages 1 and
2.
DP World Limited and its subsidiaries
Consolidated statement of changes in equity
for the year ended 31 December 2013
Attributable to equity holders of the Company
------------------------------------------------------------------------------------------------------------------------- ---------------------------------
Hedging Non-controlling
Share Share Shareholders' Retained and Actuarial Translation interests Total
capital premium reserve earnings other reserve reserve Total equity
reserves
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Balance as at 1
January
2013 (Restated
*) 1,660,000 2,472,655 2,000,000 2,968,068 (122,229) (379,171) (482,909) 8,116,414 663,993 8,780,407
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
------------ ------------ ------------ ------------ ---------- ---------- ---------- ------------ ---------- ------------
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Total
comprehensive
income for the
year
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Profit for the
year - - - 639,636 - - - 639,636 82,152 721,788
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Total other
comprehensive
income, net of
income
tax - - - - 90,845 35,902 (137,797) (11,050) 9,735 (1,315)
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
---------- ---------- ---------- ---------- --------- --------- ---------- ---------- --------- ----------
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Total
comprehensive
income for the
year - - - 639,636 90,845 35,902 (137,797) 628,586 91,887 720,473
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
---------- ---------- ---------- ---------- --------- --------- ---------- ---------- --------- -----------
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Transactions
with owners,
recorded
directly in
equity
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Dividends paid
(refer
to note 23) - - - (199,200) - - - (199,200) - (199,200)
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
---------- ---------- ---------- ----------- ------- ---------- -------- ----------- ---------- -----------
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Total
transactions
with owners - - - (199,200) - - - (199,200) - (199,200)
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
---------- ---------- ---------- ----------- ------- ---------- -------- ----------- ---------- -----------
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Transactions
with
non-controlling
interests,
recorded
directly
in equity
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Dividends paid - - - - - - - - (64,064) (64,064)
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Derecognition of
non-controlling
interests on
loss of
control in Asia
Pacific
and Indian
subcontinent
region - - - - - - - - (216,075) (216,075)
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
------------ ---------- ---------- ---------- ---------- ---------- ---------- ---------- --------- ------------
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Total
transactions
with
non-controlling
interests - - - - - - - - (280,139) (280,139)
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
------------ ------------ ------------ ------------ ---------- ----------- ----------- ------------ ---------- ------------
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Balance as at 31
December
2013 1,660,000 2,472,655 2,000,000 3,408,504 (31,384) (343,269) (620,706) 8,545,800 475,741 9,021,541
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
======= ======= ======= ======= ====== ====== ====== ======= ====== =======
----------------- ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
* Refer to note 3 (f).
The accompanying notes 1 to 34 form an integral part of these
consolidated financial statements.
The independent auditors' report is set out on pages 1 and
2.
DP World Limited and its subsidiaries
Consolidated statement of changes in equity (continued)
Attributable to equity holders of the Company
-------------------------------------------------------------------------------------------------------------------------- ---------------------------------
Hedging Non-controlling
Share Share Shareholders' Retained and Actuarial Translation interests Total
capital premium reserve earnings other reserve reserve Total equity
reserves
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Balance as at 1
January
2012 (Restated
*) 1,660,000 2,472,655 2,000,000 2,367,164 (104,408) (352,402) (586,555) 7,456,454 765,013 8,221,467
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Impact of IAS 19
amendment
(refer to note
3(f)) - - - 41,639 - - - 41,639 - 41,639
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
------------ ------------ ------------ ------------ ---------- ---------- ---------- ------------ ---------- ------------
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Balance as at 1
January
2012
(Restated -refer
to
note 3(f)) 1,660,000 2,472,655 2,000,000 2,408,803 (104,408) (352,402) (586,555) 7,498,093 765,013 8,263,106
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
======= ======= ======= ======= ====== ====== ====== ======= ====== =======
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Total
comprehensive
income for the
year
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Profit for the
year - - - 738,398 - - - 738,398 78,101 816,499
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Total other
comprehensive
income, net of
income
tax - - - - (17,821) (26,769) 103,646 59,056 (90) 58,966
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
---------- ---------- ---------- ---------- --------- --------- ---------- ---------- --------- ----------
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Total
comprehensive
income for the
year - - - 738,398 (17,821) (26,769) 103,646 797,454 78,011 875,465
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
---------- ---------- ---------- ---------- --------- --------- ---------- ---------- --------- -----------
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Transactions with
owners,
recorded
directly in
equity
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Dividends paid
(refer
to note 23) - - - (199,200) - - - (199,200) - (199,200)
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
---------- ---------- ---------- ----------- ------- ---------- -------- ----------- ---------- -----------
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Total
transactions
with owners - - - (199,200) - - - (199,200) - (199,200)
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
---------- ---------- ---------- ----------- ------- ---------- -------- ----------- ---------- -----------
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Changes in
ownership
interests
in subsidiaries
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Acquisition of
non-controlling
interests
without
change in
control
** - - - 20,067 - - - 20,067 (66,457) (46,390)
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Transactions with
non-controlling
interests,
recorded directly
in equity
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Dividends paid - - - - - - - - (90,050) (90,050)
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Derecognition of
non-controlling
interests
on monetisation
of
investment in
subsidiaries - - - - - - - - (22,524) (22,524)
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
------------ ---------- ---------- ---------- ---------- ---------- ---------- ---------- --------- ------------
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Total
transactions
with
non-controlling
interests - - - 20,067 - - - 20,067 (179,031) (158,964)
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
------------ ------------ ------------ ------------ ---------- ----------- ----------- ------------ ---------- ------------
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
Balance as at 31
December
2012 1,660,000 2,472,655 2,000,000 2,968,068 (122,229) (379,171) (482,909) 8,116,414 663,993 8,780,407
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
======= ======== ======== ======== ====== ====== ======= ======= ====== =======
------------------ ------------- ------------- --------------- ------------- ----------- ------------ ------------- ------------- ---------------- -------------
* Refer to note 3 (f).
** This mainly includes acquisition of remaining 10% interest in
a subsidiary in Middle East, Europe and Africa Region for a
consideration of USD 46,390 thousand resulting in a gain on
acquisition of USD 20,067 thousand.
The accompanying notes 1 to 34 form an integral part of these
consolidated financial statements. The independent auditors' report
is set out on pages 1 and 2.
DP World Limited and its subsidiaries
Consolidated statement of cash flows
for the year ended 31 December 2013
2013 2012
------------------------------------------- ------ ------------- ------------
Notes USD'000 USD'000
------------------------------------------- ------ ------------- ------------
(Restated
*)
------------------------------------------- ------ ------------- ------------
Cash flows from operating activities
------------------------------------------- ------ ------------- ------------
Profit for the year 721,788 816,499
------------------------------------------- ------ ------------- ------------
Adjustments for:
------------------------------------------- ------ ------------- ------------
Depreciation and amortisation 9 395,499 410,632
------------------------------------------- ------ ------------- ------------
Impairment 9 99,153 49,900
------------------------------------------- ------ ------------- ------------
Share of profit from equity-accounted
investees (net of tax) (80,061) (154,607)
------------------------------------------- ------ ------------- ------------
Finance costs 10 369,439 381,602
------------------------------------------- ------ ------------- ------------
(Gain)/ loss on sale of property,
plant and equipment
and port concession rights (6,571) 1,490
------------------------------------------- ------ ------------- ------------
Profit on sale and termination
of businesses (net of tax) (158,188) (237,204)
------------------------------------------- ------ ------------- ------------
Finance income 10 (84,493) (75,211)
------------------------------------------- ------ ------------- ------------
Income tax expense 11 64,458 72,954
------------------------------------------- ------ ------------- ------------
------------ -----------
------------------------------------------- ------ ------------- ------------
Gross cash flows from operations 1,321,024 1,266,055
------------------------------------------- ------ ------------- ------------
Change in inventories 2,110 1,641
------------------------------------------- ------ ------------- ------------
Change in accounts receivable
and prepayments (88,153) 25,036
------------------------------------------- ------ ------------- ------------
Change in accounts payable and
accruals 59,033 47,141
------------------------------------------- ------ ------------- ------------
Change in provisions, pensions
and
post-employment benefits 4,674 (33,672)
------------------------------------------- ------ ------------- ------------
----------- -----------
------------------------------------------- ------ ------------- ------------
Cash generated from operating
activities 1,298,688 1,306,201
------------------------------------------- ------ ------------- ------------
Income taxes paid (86,955) (74,856)
------------------------------------------- ------ ------------- ------------
------------ -----------
------------------------------------------- ------ ------------- ------------
Net cash from operating activities 1,211,733 1,231,345
------------------------------------------- ------ ------------- ------------
------------ -----------
------------------------------------------- ------ ------------- ------------
Cash flows from investing activities
------------------------------------------- ------ ------------- ------------
Additions to property, plant
and equipment 13 (1,025,530) (641,934)
------------------------------------------- ------ ------------- ------------
Additions to port concession
rights 14 (37,892) (43,017)
------------------------------------------- ------ ------------- ------------
Proceeds from disposal of property,
plant and equipment
and port concession rights 10,103 17,744
------------------------------------------- ------ ------------- ------------
Net proceeds from monetisation
of investment in subsidiaries
and
equity-accounted investees 658,685 436,052
------------------------------------------- ------ ------------- ------------
Cash outflow on acquisition of
non-controlling interests
without change in control - (46,390)
------------------------------------------- ------ ------------- ------------
Receipt of deferred consideration
on disposal of equity-accounted 16,140 -
investees
------------------------------------------- ------ ------------- ------------
Interest received 43,103 77,594
------------------------------------------- ------ ------------- ------------
Dividends received from equity-accounted
investees 94,523 197,839
------------------------------------------- ------ ------------- ------------
Additional investment in equity-accounted
investees (38,256) (15,283)
------------------------------------------- ------ ------------- ------------
Net loan repaid by/ (advanced
to) equity-accounted investees 68,323 (500)
------------------------------------------- ------ ------------- ------------
Return of capital from equity-accounted
investees - 28,244
------------------------------------------- ------ ------------- ------------
Return of capital from other
investments - 12,228
------------------------------------------- ------ ------------- ------------
----------- ---------
------------------------------------------- ------ ------------- ------------
Net cash (used in)/ from investing
activities (210,801) 22,577
------------------------------------------- ------ ------------- ------------
----------- ---------
------------------------------------------- ------ ------------- ------------
* Refer to note 3 (f).
DP World Limited and its subsidiaries
Consolidated statement of cash flows (continued)
for the year ended 31 December 2013
2013 2012
--------------------------------------- ------ ------------- -------------
Notes USD'000 USD'000
--------------------------------------- ------ ------------- -------------
(Restated
*)
--------------------------------------- ------ ------------- -------------
Cash flows from financing activities
--------------------------------------- ------ ------------- -------------
Repayment of interest bearing
loans and borrowings (633,090) (3,204,428)
--------------------------------------- ------ ------------- -------------
Drawdown of interest bearing
loans and borrowings 912,987 241,411
--------------------------------------- ------ ------------- -------------
Interest paid (320,947) (292,575)
--------------------------------------- ------ ------------- -------------
Dividend paid to the owners of
the Company (199,200) (199,200)
--------------------------------------- ------ ------------- -------------
Dividends paid to non-controlling
interests (64,064) (90,050)
--------------------------------------- ------ ------------- -------------
----------- ------------
--------------------------------------- ------ ------------- -------------
Net cash used in financing activities (304,314) (3,544,842)
--------------------------------------- ------ ------------- -------------
----------- ------------
--------------------------------------- ------ ------------- -------------
Net increase/ (decrease) in cash
and cash equivalents 696,618 (2,290,920)
--------------------------------------- ------ ------------- -------------
Cash and cash equivalents as
at 1 January 1,881,733 4,158,347
--------------------------------------- ------ ------------- -------------
Effect of exchange rate fluctuations
on cash held (7,288) 14,306
--------------------------------------- ------ ------------- -------------
------------ ------------
--------------------------------------- ------ ------------- -------------
Cash and cash equivalents as
at 31 December 19 2,571,063 1,881,733
--------------------------------------- ------ ------------- -------------
======= =======
--------------------------------------- ------ ------------- -------------
Cash and cash equivalents comprise
the following:
--------------------------------------- ------ ------------- -------------
Bank balances and cash 2,572,470 1,881,928
--------------------------------------- ------ ------------- -------------
Bank overdrafts (1,407) (195)
--------------------------------------- ------ ------------- -------------
------------ ------------
--------------------------------------- ------ ------------- -------------
Cash and cash equivalents 2,571,063 1,881,733
--------------------------------------- ------ ------------- -------------
======= =======
--------------------------------------- ------ ------------- -------------
* Refer to note 3 (f).
The accompanying notes 1 to 34 form an integral part of these
consolidated financial statements.
The independent auditors' report is set out on pages 1 and
2.
DP World Limited and its subsidiaries
Notes to consolidated financial statements
(forming part of the financial statements)
1 Reporting entity
DP World Limited ("the Company") was incorporated on 9 August
2006 as a Company Limited by Shares with the Registrar of Companies
of the Dubai International Financial Centre ("DIFC") under the
Companies Law, DIFC Law No. 3 of 2006. The consolidated financial
statements of the Company for the year ended 31 December 2013
comprise the Company and its subsidiaries (collectively referred to
as "the Group") and the Group's interests in equity-accounted
investees. The Group is engaged in the business of international
marine terminal operations and development, logistics and related
services.
Port & Free Zone World FZE ("the Parent Company"), which
originally held 100% of the Company's issued and outstanding share
capital, made an initial public offer of 19.55% of its share
capital to the public and the Company was listed on the Nasdaq
Dubai with effect from 26 November 2007. The Company was further
admitted to trade on the London Stock Exchange with effect from 1
June 2011.
Port & Free Zone World FZE is a wholly owned subsidiary of
Dubai World Corporation ("the Ultimate Parent Company").
The Company's registered office address is P.O. Box 17000,
Dubai, United Arab Emirates.
2 Basis of preparation
(a) Statement of compliance
These consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards
("IFRS").
The consolidated financial statements were approved by the Board
of Directors on 20 March 2014.
(b) Basis of measurement
The consolidated financial statements have been prepared on the
historical cost basis except for derivative financial instruments
and available-for-sale financial assets which are measured at fair
value.
The methods used to measure fair values are discussed further in
note 5.
(c) Funding and liquidity
The Group's business activities, together with factors likely to
affect its future development, performance and position are set out
in the Chairman's Statement and Operating and Financial Review. In
addition, note 6 sets out the Group's objectives, policies and
processes for managing the Group's financial risk including capital
management and note 30 provides quantitative details of the Group's
exposure to credit risk, liquidity risk and interest rate risk from
financial instruments.
The Board of Directors remain satisfied with the Group's funding
and liquidity position. At 31 December 2013, the Group has a net
debt of USD 2,463,954 thousand (2012: USD 2,870,723 thousand). The
Group's credit facility covenants are currently well within the
covenant limits. The Group generated gross cash of USD 1,321,024
thousand (2012: USD 1,266,055 thousand) from operating activities
and its interest cover for the year is 5 times (2012: 4.7 times)
(calculated using adjusted EBITDA and net finance cost before
separately disclosed items).
Based on the above, the Board of Directors have concluded that
the going concern basis of preparation continues to be
appropriate.
2 Basis of preparation (continued)
(d) Functional and presentation currency
The functional currency of the Company is UAE Dirhams. Each
entity in the Group determines its own functional currency and
items included in the financial statements of each entity are
measured using that functional currency.
These consolidated financial statements are presented in United
States Dollars ("USD"), which in the opinion of management is the
most appropriate presentation currency of the company in view of
the global presence of the Group. All financial information
presented in USD is rounded to the nearest thousand.
UAE Dirham is currently pegged to USD and there are no
differences on translation from functional to presentation
currency.
(e) Use of estimates and judgements
The preparation of consolidated financial statements in
conformity with IFRS requires management to make judgements,
estimates and assumptions that affect the application of accounting
policies and reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an on-going
basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised and in any future periods
affected.
(i) Judgements
Information about critical judgements in applying accounting
policies that have the most significant effect on the amounts
recognised in the consolidated financial statements are as
follows:
(a) Provision for income taxes and deferred tax
The Group is subject to income taxes in numerous jurisdictions.
Significant judgement is required in determining the worldwide
provision for income taxes. There are many transactions and
calculations for which the ultimate tax determination is uncertain
during the ordinary course of business. The Group recognises
liabilities for anticipated tax payments based on estimates of
whether additional taxes will be due. Where the final tax outcome
of these matters is different from the amounts that were initially
recorded, such differences will impact the income tax and deferred
tax provisions in the period in which such determination is
made.
Deferred tax assets are recognised for all unused tax losses to
the extent that it is probable that taxable profit will be
available against which the losses can be utilised. Significant
management judgement is required to determine the amount of
deferred tax assets that can be recognised, based upon the likely
timing and level of future taxable profits together with future tax
planning strategies.
(b) Impairment of available-for-sale financial assets
Available-for-sale financial assets are impaired when objective
evidence of impairment exists. A significant or prolonged decline
in the fair value of an investment is considered as objective
evidence of impairment. The Group considers that generally a
decline of 20% will be considered as significant and a decline of
over 9 months will be considered as prolonged.
2 Basis of preparation (continued)
(e) Use of estimates and judgements (continued)
(i) Judgements (continued)
(c) Fair value of financial instruments
Where the fair value of financial assets and financial
liabilities recorded in the consolidated statement of financial
position cannot be derived from active markets, they are determined
using valuation techniques including the discounted cash flow
model. The inputs to these models are taken from observable markets
where possible, but where this is not feasible, a degree of
judgement is required in establishing fair values. The judgements
include consideration of inputs such as market risk, credit risk
and volatility.
(d) Contingent liabilities
There are various factors that could result in a contingent
liability being disclosed if the probability of any outflow in
settlement is not remote. The assessment of the outcome and
financial effect is based upon management's best knowledge and
judgement of current facts as at the reporting date.
(ii) Estimates
Information about assumptions and estimation uncertainties that
have significant risk of resulting in a material adjustment within
the next financial year are as follows:
(a) Useful life of property, plant and equipment and port concession rights with finite life
The useful life of property, plant and equipment and port
concession rights with finite life is determined by the Group's
management based on their estimate of the period over which an
asset or port concession right is expected to be available for use
by the Group. This estimate is reviewed and adjusted if appropriate
at each financial year end. This may result in a change in the
useful economic lives and therefore depreciation and amortisation
expense in future periods.
(b) Impairment testing of goodwill and port concession rights
The Group determines whether goodwill and port concession rights
with indefinite life are impaired, at least on an annual basis.
This requires an estimation of the value in use of the
cash-generating units to which the goodwill is allocated or in
which the port concession rights with indefinite life exist.
Estimating the value in use requires the Group to make an estimate
of the expected future cash flows from the cash-generating unit and
also to choose a suitable discount rate in order to calculate the
present value of those cash flows.
(c) Impairment of accounts receivable
An estimate of the collectible amount of accounts receivable is
made when collection of the full amount is no longer probable. For
significant amounts, this estimation is performed on an individual
basis. Amounts which are not individually significant, but which
are past due, are assessed collectively and a provision applied
according to the length of time past due, based on historical
recovery rates. Any difference between the amounts actually
collected in future periods and the amounts expected, will be
recognised in the consolidated income statement.
(d) Pension and post-employment benefits
The cost of defined benefit pension plans and other
post-employment benefits is determined using actuarial valuations.
The actuarial valuation involves making assumptions about discount
rates, expected rates of return on assets, future salary increases,
mortality rates and future pension increases. Due to the long-term
nature of these plans, such estimates are subject to significant
uncertainty.
2 Basis of preparation (continued)
(e) Use of estimates and judgements (continued)
(ii) Estimates (continued)
(e) Business combinations
In accounting for business combinations, judgement is required
in identifying whether an identifiable intangible asset is to be
recorded separately from goodwill. Additionally, estimating the
acquisition date fair value of the identifiable assets acquired and
liabilities assumed involves management judgment. These
measurements are based on information available at the acquisition
date and are based on expectations and assumptions that have been
deemed reasonable by the management. Changes in these judgements,
estimates and assumptions can materially affect the results of
operations.
3 Changes in accounting policies
Except for the changes below, the Group has consistently applied
the accounting policies set out in Note 4 to all periods presented
in these consolidated financial statements.
The Group has adopted the following new standards and amendments
to standards, including any consequential amendments to other
standards, with a date of initial application of 1 January
2013.
a. IFRS 10 Consolidated Financial Statements (2011)
b. IFRS 11 Joint Arrangements
c. IFRS 12 Disclosure of Interests in Other Entities
d. IFRS 13 Fair Value Measurement
e. Presentation of Items of Other Comprehensive Income (Amendments to IAS 1)
f. IAS 19 Employee Benefits (2011)
The nature and effects of the changes are explained below:
(a) Subsidiaries
As a result of IFRS 10 (2011), the Group has changed its
accounting policy for determining whether it has control over and
consequently whether it consolidates its investees. IFRS 10 (2011)
introduces a new control model that focuses on whether the Group
has power over an investee, exposure or rights to variable returns
from its involvement with the investee and ability to use its power
to affect those returns.
In accordance with the transitional provisions of IFRS 10
(2011), the Group reassessed the control conclusion for its
investees at 1 January 2013 resulting in no change.
(b) Joint arrangements
As a result of IFRS 11, the Group has changed its accounting
policy for its interests in joint arrangements. Under IFRS 11, the
Group has classified its interests in joint arrangements as either
joint operations (if the Group has rights to assets, and
obligations for liabilities, relating to an arrangement) or joint
ventures (if the Group has rights only to the net assets of an
arrangement). When making this assessment, the Group considered the
structure of the arrangements, the legal form of any separate
vehicles, the contractual terms of the arrangements and other facts
and circumstances. Previously, the structure of the arrangement was
the sole focus of classification.
The Group has concluded that there are no joint operations.
3 Changes in accounting policies (continued)
(c) Disclosure of interests in other entities
As a result of IFRS 12, the Group has expanded its disclosures
about its interests in equity- accounted investees and
non-controlling interests (see Note 16, 22 and 34).
(d) Fair value measurement
IFRS 13 establishes a single framework for measuring fair value
and making disclosures about fair value measurements when such
measurements are required or permitted by other IFRSs. It unifies
the definition of fair value as the price that would be received to
sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. It
replaces and expands the disclosure requirements about fair value
measurements in other IFRSs, including IFRS 7. As a result, the
Group has included additional disclosures in this regard (see Note
30).
Notwithstanding the above, the change had no significant impact
on the measurements of the Group's assets and liabilities.
(e) Presentation of items of Other Comprehensive Income
(OCI)
As a result of the amendments to IAS 1, the Group has modified
the presentation of items of OCI in its consolidated statement of
comprehensive income, to present separately items that would be
reclassified to consolidated income statement from those that would
never be. Comparative information has been re-presented
accordingly.
(f) Post-employment defined benefit plans
IAS 19 Revised (2011) - Employee Benefits - includes a number of
amendments to the accounting for defined benefit plans. The
following changes have had an impact on the Group:
- Expected returns on plan assets are no longer recognised in
profit or loss. Net interest is recognised in profit or loss,
calculated using the discount rate used to measure the net defined
benefit liability. The difference between the actual return on plan
assets and the interest income is recognised as a re-measurement in
other comprehensive income.
- Administration costs are recognised in profit or loss and no
longer being taken into account in measuring the defined benefit
obligation.
- Unvested past service costs can no longer be deferred and
recognised over the future vesting period. Instead, all past
service costs are recognised at the earlier of when the amendment
occurs and when the Group recognises related restructuring or
termination costs. (Until 2012, the Group's past service costs were
recognised as an expense on a straight-line basis over the average
period until the benefits become vested).
Other amendments include new disclosures, such as, quantitative
sensitivity disclosures.
3 Changes in accounting policies (continued)
Post-employment defined benefit plans (continued)
The effect of the adoption of IAS 19R is explained below:
As at As at As at
31 December 31 December 1 January
2013 2012 2012
------------------------------- ------------- ------------- -----------
USD'000 USD'000 USD'000
------------------------------- ------------- ------------- -----------
Impact on statement of
financial position:
------------------------------- ------------- ------------- -----------
Decrease in pension and
post-employment benefits
-refer to note (a) below 49,274 50,562 41,639
------------------------------- ------------- ------------- -----------
Increase in actuarial reserve 25,107 19,131 -
------------------------------- ------------- ------------- -----------
Increase in retained earnings 24,167 31,431 41,639
------------------------------- ------------- ------------- -----------
====== ====== =====
------------------------------- ------------- ------------- -----------
For the For the
year ended year ended
31 December 31 December
2013 2012
------------------------------- ------------- ------------- -----------
USD'000 USD'000
------------------------------- ------------- ------------- -----------
Impact on income statement:
------------------------------- ------------- ------------- -----------
Increase in cost of sales 413 512
------------------------------- ------------- ------------- -----------
Increase in general and
administrative expenses
-refer to note (b) below 2,502 2,559
------------------------------- ------------- ------------- -----------
Increase in finance costs
- see note (c) below 7,017 7,137
------------------------------- ------------- ------------- -----------
--------- ---------
------------------------------- ------------- ------------- -----------
Total impact on income
statement 9,932 10,208
------------------------------- ------------- ------------- -----------
===== =====
------------------------------- ------------- ------------- -----------
Impact on other comprehensive
income 25,107 19,131
------------------------------- ------------- ------------- -----------
====== =====
------------------------------- ------------- ------------- -----------
(a) The transition to revised IAS 19 resulted in a reduction of
net defined benefit plan obligations due to the administration
costs being taken to the consolidated income statement each year
rather than being reserved as part of the discounted
obligation.
(b) Certain pension administration costs are directly recognised
in consolidated income statement as per revised IAS 19.
(c) The interest expense/ (income) under IAS 19R is calculated
as net interest based on the discount rate that is used to measure
the net defined benefit liability. Expected returns on plan assets
are no longer recognised in profit or loss. These changes in the
standard give rise to an adjustment in profit and loss with a
corresponding impact in actuarial reserve.
The segment information has accordingly been adjusted based on
the above restatements (refer to note 7).
4 Significant accounting policies
The accounting policies set out below have been applied
consistently in the year presented in these consolidated financial
statements and have been applied consistently by the Group
entities.
(a) Basis of consolidation
(i) Business combinations
Except for transactions involving entities under common control,
where the provisions of IFRS 3, 'Business Combinations' are not
applicable, business combinations are accounted for using the
acquisition method as at the acquisition date - i.e. when control
is transferred to the Group. Control is the power to govern the
financial and operating policies of an entity so as to obtain
benefits from its activities. In assessing control, the Group takes
into consideration potential voting rights that are currently
exercisable.
The Group measures goodwill at the acquisition date as:
-- the fair value of the consideration transferred; plus
-- the recognised amount of any non-controlling interests in the acquiree; plus
-- if the business combination is achieved in stages, the fair
value of the pre-existing equity interest in the acquiree; less
-- the net recognised amount (generally fair value) of the
identifiable assets (including previously unrecognised port
concession rights) acquired and liabilities (including contingent
liabilities and excluding future restructuring) assumed.
In an acquisition, if the purchase price is lower than the fair
value of the assets acquired, the resulting gain will be recognised
immediately in the statement of consolidated income statement.
The consideration transferred does not include amounts related
to the settlement of pre-existing relationships. Such amounts are
generally recognised in the consolidated income statement.
Transaction costs, other than those associated with the issue of
debt or equity securities, that the Group incurs in connection with
a business combination are expensed as incurred.
Any contingent consideration payable is measured at fair value
at the acquisition date. If the contingent consideration is
classified as equity, then it is not remeasured and settlement is
accounted for within equity. Otherwise, subsequent changes in the
fair value of the contingent consideration are recognised in the
consolidated income statement.
4 Significant accounting policies (continued)
(a) Basis of consolidation (continued)
(ii) Non-controlling interests
For each business combination, the Group elects to measure any
non-controlling interests at their proportionate share of the
acquiree's identifiable net assets, which is generally at fair
value.
Losses applicable to the non-controlling interests in a
subsidiary are allocated to the non-controlling interests even if
doing so, causes the non-controlling interests to have a debit
balance.
Changes in the Group's interests in a subsidiary that do not
result in a loss of control are accounted for as transactions with
owners in their capacity as owners and therefore no goodwill is
recognised as a result of such transactions. The difference between
the fair value of any consideration paid and relevant share
acquired in the carrying value of net assets of the subsidiary is
recorded in equity under retained earnings.
(iii) Subsidiaries
Subsidiaries are entities controlled by the Group. The Group
controls an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has the
ability to affect those returns through its power over the entity.
The financial statements of subsidiaries are included in the
consolidated financial statements from the date that control
commences until the date that control ceases. The accounting
policies of subsidiaries have been changed where necessary to align
them with the policies adopted by the Group.
(iv) Loss of control
On the loss of control, the Group derecognises the assets and
liabilities of a subsidiary, any non-controlling interests and the
other components of equity related to the subsidiary. Any surplus
or deficit arising on the loss of control is recognised in the
consolidated income statement. If the Group retains any interest in
the previous subsidiary, then such interest is re-measured at fair
value at the date that control is lost. Subsequently, that retained
interest is accounted for as an equity-accounted investee or as an
available-for-sale financial asset depending on the level of
influence retained.
(v) Structured entities
The Group has established DP World Sukuk Limited (a limited
liability company incorporated in the Cayman Islands) as a
structured entity ("SE") for the issue of Sukuk Certificates. These
certificates are listed on Nasdaq Dubai and London Stock Exchange.
The Group does not have any direct or indirect shareholding in this
entity.
A SE is consolidated based on an evaluation of the substance of
its relationship with the Group and its risks and rewards. The SE
was established by the Group under the terms that impose strict
limitations on the decision-making powers of the SE's management
thereby resulting into majority of the benefits related to the SE's
operations and net assets being received by the Group.
Consequently, the Group is also exposed to risks incident to the
SE's activities and retains the majority of the residual or
ownership risks related to the SE or its assets. Therefore, Group
concludes that it controls the SE. Refer to accounting policy on
non-derivative financial liabilities in note 4 (c) (ii).
4 Significant accounting policies (continued)
(a) Basis of consolidation (continued)
(vi) Investments in associates and joint ventures (equity-accounted investees)
Associates are those entities in which the Group has significant
influence, but not control or joint control, over the financial and
operating policies. Significant influence is presumed to exist when
the Group holds between 20 percent and 50 percent of the voting
power of another entity.
Joint ventures are those entities over whose activities the
Group has joint control, whereby the Group has rights to the net
assets of the arrangement, rather than rights to its individual
assets and obligations for its individual liabilities.
Investments in equity-accounted investees are accounted for
using the equity method and are initially recorded at cost
including transaction costs. The Group's investment includes fair
value adjustments (including goodwill) net of any accumulated
impairment losses. The consolidated financial statements include
the Group's share of the income and expenses of equity-accounted
investees, after adjustments to align the accounting policies with
those of the Group, from the date that significant influence or
joint control commences until the date that significant influence
or joint control ceases.
When the Group's share of losses exceeds its interest in an
equity-accounted investee, the carrying amount of that interest
(including any long-term investments) is reduced to nil and the
recognition of further losses is discontinued except to the extent
that the Group has an obligation or has made payments on behalf of
the investee. If the equity-accounted investees subsequently
reports profits, the Group resumes recognising its share of those
profits only after its share of the profits equals the share of
losses not recognised.
The financial statements of the equity-accounted investees are
prepared for the same reporting period as the Group. The
transactions between the Group and its equity-accounted investees
are made at normal market prices.
At each reporting date, the Group determines whether there is
any objective evidence that the investment in the equity-accounted
investees are impaired. If this is the case, the Group calculates
the amount of impairment as the difference between the recoverable
amount of the equity-accounted investees and its carrying value and
recognises the same in the consolidated income statement.
Upon loss of joint control or significant influence, the Group
measures and recognises any retained investment at its fair value.
The difference between the carrying amount of the equity-accounted
investees upon loss of joint control or significant influence and
the fair value of the retained investment and proceeds from
disposal is recognised as profit or loss in the consolidated income
statement.
(vii) Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income
and expenses arising from intra-group transactions, are eliminated
in preparing the consolidated financial statements. Unrealised
gains arising from the transactions with equity-accounted investees
are eliminated against the investment to the extent of the Group's
interest in the investee. Unrealised losses are eliminated in the
same way as unrealised gains, but only to the extent that there is
no evidence of impairment.
4 Significant accounting policies (continued)
(b) Foreign currency
(i) Foreign currency transactions
These consolidated financial statements are presented in USD,
which is the Group's presentation currency. Transactions in foreign
currencies are translated to the respective functional currencies
of the Group entities at exchange rates at the date of the
transactions. Monetary assets and liabilities denominated in
foreign currencies at the reporting date are retranslated to the
functional currency at the exchange rate at that date. Non-monetary
assets and liabilities denominated in foreign currencies that are
measured at fair value are retranslated to the functional currency
at the exchange rate at the date that the fair value was
determined. Non-monetary items in a foreign currency that are
measured at historical cost are translated to the functional
currency using the exchange rate at the date of transaction.
Foreign currency differences arising on retranslation of monetary
items are recognised in the consolidated income statement, except
for differences arising on the retranslation of available-for-sale
equity instruments, of a financial liability designated as a hedge
of the net investment in a foreign operation, or qualifying cash
flow hedges, which are recognised directly in consolidated
statement of other comprehensive income (refer to note
4(b)(iii)).
(ii) Foreign operations
The assets and liabilities of foreign operations, including
goodwill and fair value adjustments arising on acquisition, are
translated to USD at exchange rates at the reporting date. The
income and expenses of foreign operations are translated to USD at
rates approximating to the foreign exchange rates ruling at the
date of the transactions. Foreign exchange differences arising on
translation are recognised in the consolidated statement of other
comprehensive income and presented in the translation reserve in
equity. However, if the foreign operation is not a wholly owned
subsidiary, then the relevant proportion of the translation
difference is allocated to non-controlling interests.
When a foreign operation is disposed such that control,
significant influence or joint control is lost, the cumulative
amount in the translation reserve related to that foreign operation
is reclassified to the consolidated income statement as part of the
gain or loss on disposal. When the Group disposes of only part of
its interest in a subsidiary that includes a foreign operation
while retaining control, the relevant proportion of the cumulative
amount is reattributed to non- controlling interests. When the
Group disposes of only part of its investment in an associate or
joint venture that includes a foreign operation while retaining
significant influence or joint control, the relevant proportion of
the cumulative amount is reclassified to the consolidated income
statement.
Foreign exchange gains and losses arising from a monetary item
receivable from or payable to a foreign operation, the settlement
of which is neither planned nor likely in the foreseeable future,
are considered to form part of a net investment in a foreign
operation and are recognised in consolidated statement of other
comprehensive income and presented in the translation reserve in
equity.
4 Significant accounting policies (continued)
(b) Foreign currency (continued)
(iii) Hedge of a net investment in a foreign operation
Foreign currency differences arising on the retranslation of a
financial liability designated as a hedge of a net investment in a
foreign operation are recognised in the consolidated statement of
other comprehensive income, to the extent that the hedge is
effective. To the extent that the hedge is ineffective, such
differences are recognised in the consolidated income statement.
When the hedged net investment is disposed of, the associated
cumulative amount in consolidated statement of other comprehensive
income is transferred to the consolidated income statement as part
of the gain or loss on disposal.
(c) Financial instruments
(i) Non-derivative financial assets
Initial recognition and measurement
The Group classifies non-derivative financial assets into the
following categories: held to maturity financial assets, loans and
receivables and available-for-sale financial assets. The Group
determines the classification of its financial assets at initial
recognition.
All non-derivative financial assets are recognised initially at
fair value, plus, any directly attributable transaction costs.
The Group initially recognises loans and receivables and
deposits on the date that they originated. All other financial
assets are recognised initially on the trade date, which is the
date that the Group becomes a party to the contractual provisions
of the instrument.
The Group's non-derivative financial assets comprise investments
in an unquoted infrastructure fund, debt securities held to
maturity, trade and other receivables, due from related parties and
cash and cash equivalents.
Subsequent measurement
The subsequent measurement of non-derivative financial assets
depends on their classification as follows:
Held to maturity financial assets
If the Group has a positive intent and ability to hold debt
securities to maturity, then these are classified as
held-to-maturity. Subsequent to initial recognition,
held-to-maturity financial assets are measured at amortised cost
using the effective interest method, less any impairment losses.
Amortised cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part
of the effective interest rate. The effective interest rate
amortisation is included in finance cost in the consolidated income
statement. Gains and losses are also recognised in the consolidated
income statement when these financial assets are derecognised.
Loans and receivables
Loans and receivables are financial assets with fixed or
determinable payments that are not quoted in an active market.
Subsequent to initial recognition, loans and receivables are
measured at amortised cost using the effective interest rate
method, less any impairment losses. Loans and receivables comprise
bank balances and cash, due from related parties and, trade and
other receivables.
4 Significant accounting policies (continued)
(c) Financial instruments (continued)
(i) Non-derivative financial assets (continued)
Bank balances and cash
Bank balances and cash in the consolidated statement of
financial position comprise cash in hand, bank balances and
deposits.
For the purpose of consolidated statement of cash flows, cash
and cash equivalents consist of bank balances and cash as defined
above and cash classified as held for sale, net of bank overdrafts.
Bank overdrafts form an integral part of the Group's cash
management and is included as a component of cash and cash
equivalents for the purpose of the consolidated statement of cash
flows.
Available-for-sale investments
Available-for-sale financial assets comprise equity securities.
Available-for-sale financial assets are non-derivative financial
assets that are designated as available-for-sale or are not
classified in any of the above categories of financial assets.
Subsequent to initial recognition, these are measured at fair value
and changes therein, other than impairment losses and foreign
currency differences on debt instruments are recognised in the
consolidated statement of other comprehensive income and presented
in the other reserves in equity. When an investment is
derecognised, the balance accumulated in equity is reclassified to
the consolidated income statement.
De-recognition of non-derivative financial assets
The Group derecognises a financial asset when the contractual
rights to the cash flows from the asset expire, or it transfers the
rights to receive the contractual cash flows on the financial asset
in a transaction in which substantially all the risks and rewards
of ownership of the financial asset are transferred. Any interest
in transferred financial assets that is created or retained by the
Group is recognised as a separate asset or liability.
(ii) Non -derivative financial liabilities
Initial recognition and measurement
The Group's non-derivative financial liabilities consist of
loans and borrowings, bank overdrafts, amounts due to related
parties, and trade and other payables. The Group determines the
classification of its financial liabilities at initial
recognition.
All non-derivative financial liabilities are recognised
initially at fair value and in the case of other financial
liabilities net of directly attributable transaction costs.
The Group initially recognises debt securities issued and
subordinated liabilities on the date they originated. All other
financial liabilities are recognised initially on the trade date,
which is the date that the Group becomes a party to the contractual
provisions of the instrument.
Fees paid on the establishment of loan facilities are recognised
as transaction costs to the extent there is evidence that it is
probable that some or all of the facility will be drawn down, the
fee is capitalised as a prepayment for liquidity services and
amortised over the period of the facility to which it relates.
4 Significant accounting policies (continued)
(c) Financial instruments (continued)
(ii) Non -derivative financial liabilities (continued)
Subsequent measurement
The subsequent measurement of non-derivative financial
liabilities depends on their classification as follows:
Subsequent to initial recognition, these financial liabilities
are measured at amortised cost using effective interest rate
method. Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that are an
integral part of the effective interest rate. The effective
interest rate amortisation is included in finance costs in the
consolidated income statement.
A substantial modification of the terms of an existing financial
liability or a part of it shall be accounted for as an
extinguishment of the original financial liability and the
recognition of a new financial liability. Any gain or loss on
extinguishment is recognised in the consolidated income statement.
If discounted present value of the cash flows (including any fees
paid) under a new term arrangement is at least 10% different from
the discounted present value of the remaining cash flows of the
original liability, this is accounted for as an extinguishment of
the old liability and the recognition of a new liability.
Furthermore, qualitative assessment to assess extinguishment is
also performed. Some of the factors considered in performing a
qualitative assessment include change in interest basis, extension
of debt tenure, change in collateral arrangements and change in
currency of lending.
De-recognition of non-derivative financial liabilities
The Group derecognises a financial liability when its
contractual obligations are discharged or cancelled or expired.
(iii) Derivative financial instruments
The Group holds derivative financial instruments such as forward
currency contracts and interest rate swaps to hedge its foreign
currency and interest rate risk exposures. On initial designation
of the derivatives as the hedging instrument, the Group formally
documents the relationship between the hedging instrument and
hedged item, including the risk management objective and strategy
in undertaking the hedge transaction and hedged risk together with
the methods that will be used to assess the effectiveness of the
hedging relationship. The Group makes an assessment, both at the
inception of the hedge relationship as well as on an ongoing basis,
of whether the hedging instruments are expected to be "highly
effective" in offsetting the changes in the fair value or cash
flows of the respective hedged items attributable to the hedged
risk and whether the actual results of each hedge are within the
acceptable range.
Derivatives are recognised initially at fair value and
attributable transaction costs are recognised in the consolidated
income statement when incurred. Derivatives are carried as
financial assets when the fair value is positive and as financial
liabilities when the fair value is negative.
Derivative instruments that are not designated as hedging
instruments in hedge relationships are classified as financial
liabilities or assets at fair value through profit or loss.
4 Significant accounting policies (continued)
(c) Financial instruments (continued)
(iii) Derivative financial instruments (continued)
Subsequent to initial recognition, derivatives are measured at
fair value, and changes therein are accounted for as described
below:
Cash flow hedges
When a derivative is designated as the hedging instrument in a
hedge of the variability in cash flows attributable to a particular
risk associated with a recognised asset or liability or a highly
probable forecast transaction or the foreign currency risk in an
unrecognised firm commitment that could affect the consolidated
income statement, then such hedges are classified as cash flow
hedges.
Changes in the fair value of the derivative hedging instrument
designated as a cash flow hedge are recognised directly in
consolidated statement of other comprehensive income to the extent
that the hedge is effective and presented in the hedging reserve in
equity. Any ineffective portion of changes in the fair value of the
derivative is recognised immediately in the consolidated income
statement.
When the hedged item is a non-financial asset, the amount
recognised in the consolidated statement of other comprehensive
income is transferred to the carrying amount of the asset when it
is recognised. In other cases, the amount recognised in
consolidated statement of other comprehensive income is transferred
to the consolidated income statement in the same period that the
hedged item affects the consolidated income statement. If the
hedging instrument no longer meets the criteria for hedge
accounting, expires or is sold, terminated or exercised, or the
designation is revoked, then hedge accounting is discontinued
prospectively. The cumulative gain or loss previously recognised in
consolidated statement of other comprehensive income remains there
until the forecast transaction or firm commitment occurs. If the
forecast transaction or firm commitment is no longer expected to
occur, then the balance in equity is reclassified to profit or
loss.
(iv) Offsetting of financial instruments
Financial assets and financial liabilities are offset and the
net amount presented in the consolidated statement of financial
position when, and only when, the Group has a legal right to offset
the amounts and intends either to set off on a net basis, or to
realise the assets and settle the liability simultaneously.
(d) Property, plant and equipment
(i) Recognition and measurement
Items of property, plant and equipment are measured at cost less
accumulated depreciation and impairment losses (refer to note
4(i)).
Cost includes expenditures that are directly attributable to the
acquisition of the asset. The cost of a self-constructed asset
includes the cost of materials and direct labour, any other costs
directly attributable to bringing the asset to a working condition
for its intended use and the cost of dismantling and removing the
items and restoring the site on which they are located.
4 Significant accounting policies (continued)
(d) Property, plant and equipment (continued)
(i) Recognition and measurement (continued)
Borrowing costs that are directly attributable to acquisition
and construction of a qualifying asset are included in the cost of
that asset. Purchased software that is integral to the
functionality of the related equipment is capitalized as part of
that equipment.
When parts of an item of property, plant and equipment have
different useful lives, they are depreciated as separate items
(major components) of property, plant and equipment.
Gains and losses on disposal of an item of property, plant and
equipment are determined by comparing the proceeds from disposal
with the carrying amount of property, plant and equipment and
recognised within 'other income' in the consolidated income
statement.
Capital work-in-progress
Capital work-in-progress is measured at cost less impairment
losses and not depreciated until such time the assets are ready for
intended use and transferred to the respective category under
property, plant and equipment.
Dredging
Dredging expenditure is categorised into capital dredging and
major maintenance dredging. Capital dredging is expenditure which
includes creation of a new harbour, deepening or extension of the
channel berths or waterways in order to allow access to larger
ships which will result in future economic benefits for the Group.
This expenditure is capitalised and amortised over the expected
period of the relevant concession agreement. The expenditure is
also capitalised under port concession rights due to the
application of IFRIC 12 'Service Concession Arrangements'.
Major maintenance dredging is expenditure incurred to restore
the channel to its previous condition and depth. On an average, the
Group incurs such expenditure every 10 years. At the completion of
maintenance dredging, the channel has an average service potential
of 10 years. Any unamortised expense is written-off on the
commencement of any new dredging activities. Maintenance dredging
is regarded as a separate component of the asset and is capitalised
and amortised evenly over 10 years.
(ii) Subsequent costs
The cost of replacing part of an item of property, plant and
equipment is recognised in the carrying amount of the item if it is
probable that the future economic benefits embodied within the part
will flow to the Group and its cost can be measured reliably. The
carrying amounts of the replaced parts are derecognised. The costs
of the day-to-day servicing of property, plant and equipment are
recognised in the consolidated income statement as incurred.
(iii) Depreciation
Depreciation is recognised in the consolidated income statement
on a straight-line basis over the estimated useful lives of each
part of an item of property, plant and equipment and is based on
cost less residual value.
Dredging costs are depreciated on a straight line basis based on
the lives of various components of dredging.
Leased assets are depreciated over the shorter of the lease term
and their useful lives unless it is reasonably certain that the
Group will obtain ownership by the end of the lease term. No
depreciation is provided on freehold land.
4 Significant accounting policies (continued)
(d) Property, plant and equipment (continued)
(iii) Depreciation (continued)
The estimated useful lives of assets are as follows:
Assets Useful life (years)
---------------------------- --------------------
Buildings 5 - 50
---------------------------- --------------------
Plant and equipment 3 - 25
---------------------------- --------------------
Ships 10 - 35
---------------------------- --------------------
Dredging (included in land
and buildings) 10 - 99
---------------------------- --------------------
Depreciation methods, useful lives and residual values are
reviewed at each reporting date and adjusted prospectively, if
required.
(e) Goodwill
Goodwill arises on the acquisition of subsidiaries, associates
and joint ventures. Goodwill represents the excess of the cost of
the acquisition over the Group's interest in the net fair value of
the identifiable assets, liabilities and contingent liabilities of
the acquiree. In an acquisition, if the purchase price is lower
than the fair value of the assets acquired, the resulting gain will
be recognised immediately in the statement of consolidated income
statement.
Subsequent measurement
Goodwill is measured at cost less accumulated impairment losses
(refer to note 4(i)).
In respect of equity-accounted investees, the carrying amount of
goodwill is included in the carrying amount of the investment and
is not tested for impairment separately.
(f) Port concession rights
The Group classifies the port concession rights as intangible
assets as the Group bears demand risk over the infrastructure
assets. Substantially all of the Group's terminal operations are
conducted pursuant to long-term operating concessions or leases
entered into with the owner of a relevant port for terms generally
between 25 and 50 years (excluding the port concession rights
relating to associates and joint ventures). The Group commonly
starts negotiations regarding renewal of concession agreements with
approximately 5-10 years remaining on the term and often obtains
renewals or extensions on the concession agreements in advance of
their expiration in return for a commitment to make certain capital
expenditures in respect of the subject terminal. In addition, such
negotiations may result in the re-basing of rental charges to
reflect prevailing market rates. However, based on the Group's
experience, incumbent operators are typically granted renewal often
because it can be costly for a port owner to switch operators, both
administratively and due to interruptions to port operations and
reduced productivity associated with such transactions. Port
concession rights consist of:
(i) Port concession rights arising on business combinations
The cost of port concession rights acquired in a business
combination is the fair value as at the date of acquisition. Other
port concession rights acquired separately are measured on initial
recognition at cost.
Following initial recognition, port concession rights are
carried at cost less accumulated amortisation and any accumulated
impairment losses (refer to note 4(i)). Internally generated port
concession rights, excluding capitalised development costs, are
recognised in the consolidated income statement as incurred. The
useful lives of port concession rights are assessed to be either
finite or indefinite.
4 Significant accounting policies (continued)
(f) Port concession rights (continued)
(i) Port concession rights arising on business combinations (continued)
Port concession rights with finite lives are amortised on a
straight line basis over the useful economic life and assessed for
impairment whenever there is an indication that the port concession
rights may be impaired. Port concession rights with indefinite
lives (arising where freehold rights are granted) are not amortised
and are tested for impairment at least on an annual basis.
The amortisation period and amortisation method for port
concession rights with finite useful lives are reviewed at least at
each financial year end. Changes in the expected useful life or the
expected pattern of consumption of future economic benefits
embodied in the assets are accounted for by changing the
amortisation period or method, as appropriate, and treated as
changes in accounting estimates. The amortisation expenses on port
concession rights with finite useful lives are recognised in the
consolidated income statement on a straight line basis.
Port concession rights with indefinite useful lives are tested
for impairment annually either individually or at the
cash-generating unit level. Such port concession rights are not
amortised. The useful life of port concession rights with an
indefinite life is reviewed annually to determine whether the
indefinite life assessment continues to be supportable. If not, the
change in the useful life assessment from indefinite to finite is
made on a prospective basis.
(ii) Port concession rights arising from Service Concession Arrangements (IFRIC 12)
The Group recognises port concession rights arising from a
service concession arrangement, in which the grantor controls or
regulates the services provided and the prices charged, and also
controls any significant residual interest in the infrastructure
such as property, plant and equipment, if the infrastructure is
existing infrastructure of the grantor or the infrastructure is
constructed or purchased by the Group as part of the service
concession arrangement.
Port concession rights also include certain property, plant and
equipment which are reclassified as intangible assets in accordance
with IFRIC 12 'Service Concession Arrangements'. These assets are
amortised based on the lower of their useful lives or concession
period.
Gains or losses arising from de-recognition of port concession
rights are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognised in
the consolidated income statement when the asset is
de-recognised.
The estimated useful lives for port concession rights range
within a period of 5 - 50 years (including the concession rights
relating to associates and joint ventures).
(g) Inventories
Inventories mainly consist of spare parts and consumables.
Inventories are measured at the lower of cost and net realisable
value. The cost of inventories is based on weighted average method
and includes expenditure incurred in acquiring inventories and
bringing them to their existing location and condition. Net
realisable value is the estimated selling price in the ordinary
course of business, less the estimated costs of completion and
selling expenses.
4 Significant accounting policies (continued)
(h) Leases
The determination of whether an arrangement is, or contains, a
lease is based on the substance of the arrangement at the inception
date. The arrangement is assessed for whether fulfilment of the
arrangement is dependent on the use of a specific asset or assets
or the arrangement conveys a right to use the asset or assets, even
if that right is not explicitly specified in an arrangement.
(i) Group as a lessee
Assets held by the Group under leases in which a significant
portion of the risks and rewards of ownership are retained by the
lessor are classified as operating leases. Assets held under
operating leases are not recognised in the Group's consolidated
statement of financial position. Payments made under operating
leases are recognised in the consolidated income statement on a
straight-line basis over the term of the lease. Lease incentives
received are recognised as an integral part of the total lease
expense, over the term of the lease.
The Group leases certain property, plant and equipment. Leases
of property, plant and equipment where the Group has substantially
all the risks and rewards of ownership are classified as finance
lease. On initial recognition, the leased assets are measured at an
amount equal to the lower of its fair value and the present value
of the minimum lease payments. Subsequent to initial recognition,
the leased asset is accounted for in accordance with the accounting
policy applicable to that asset. Minimum lease payments made under
finance leases are apportioned between the finance expense and the
reduction of the outstanding liability. The finance expense is
allocated to each period during the lease term so as to produce a
constant periodic rate of interest on the remaining balance of the
liability.
Contingent payments are accounted for by revising the minimum
lease payments over the remaining term of the lease when the lease
adjustment is confirmed.
(ii) Group as a lessor
Leases where the Group retains substantially all the risks and
benefits of ownership of the asset are classified as operating
leases. Initial direct costs incurred in negotiating an operating
lease are added to the carrying amount of the leased asset and
recognised over the lease term on the same basis as rental income.
Contingent rents are recognised as income in the period in which
they are earned.
(iii) Leasing and sub-leasing transactions
A series of leasing and sub-leasing transactions between the
Group and third parties, which are closely interrelated, negotiated
as a single transaction, and which take place concurrently or in a
continuous sequence are considered linked and accounted for as one
transaction when the overall economic effect cannot be understood
without reference to the series of transactions as a whole.
These leasing and sub-leasing transactions are designed to
achieve certain benefits for the third parties in overseas
locations in return for a cash benefit to the Group. Such cash
benefit is accounted in the consolidated income statement based on
its economic substance. Under these leasing and sub-leasing
transactions, current and non-current liabilities have been
decreased by the loan receivable and the placement of deposits.
Those liabilities, receivables and deposits (and income and charges
arising therefrom) are netted off in the consolidated financial
statements, in order to reflect the overall commercial effect of
the arrangement.
4 Significant accounting policies (continued)
(h) Leases (continued)
(iv) Leases of land in port concession
Leases of land have not been classified as finance leases as the
Group believes that the substantial risks and rewards of ownership
of the land have not been transferred. The existence of a
significant exposure of the lessor to performance of the asset
through contingent rentals was a basis of concluding that
substantially all the risks and rewards of ownership have not
passed.
(i) Impairment
(i) Financial assets
(a) Loans and receivables and held to maturity investments
The Group considers evidence of impairment for loans and
receivables and held to maturity investment securities at both a
specific asset level and collective level. All individually
significant receivables and held to maturity investment securities
are assessed for specific impairment.
An impairment loss in respect of a financial asset measured at
amortised cost is calculated as the difference between its carrying
amount and the present value of the estimated future cash flows
discounted at the original effective interest rate. Impairment
losses are recognised in the consolidated income statement and
reflected in an allowance account against loans and receivables or
held to maturity investments. When a subsequent event causes the
amount of impairment loss to decrease, the decrease in impairment
loss is reversed through the consolidated income statement.
(b) Available-for-sale financial assets
For available-for-sale financial investments, the Group assesses
at each reporting date whether there is objective evidence that an
investment or a group of investments is impaired. A significant or
prolonged decline in the fair value of an equity investment is
considered as an objective evidence of impairment. The Group
considers that generally a decline of 20% will be considered as
significant and a decline of over 9 months will be considered as
prolonged.
Impairment losses on available-for-sale financial assets are
recognised by reclassifying the losses accumulated in the other
reserve in equity to the consolidated income statement. The
cumulative loss that is reclassified from equity to the
consolidated income statement is the difference between the
acquisition cost, net of any principal repayment and amortisation,
and the current fair value, less any impairment loss recognised
previously in the consolidated income statement. Any subsequent
recovery in the fair value of an impaired available-for-sale equity
security is recognised in consolidated statement of other
comprehensive income.
(ii) Non-financial assets
The carrying amounts of the Group's non-financial assets, other
than inventories and deferred tax assets are reviewed for
impairment whenever there is an indication of impairment. If any
such indication exists then the asset's recoverable amount is
estimated. The recoverable amount of an asset or cash-generating
unit is the greater of its value in use and its fair value less
costs to sell. In assessing value in use, the estimated future cash
flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset or cash
generating unit. A cash-generating unit is the smallest
identifiable asset group that generates cash flows that largely are
independent from other assets and groups.
4 Significant accounting policies (continued)
(i) Impairment (continued)
(ii) Non-financial assets (continued)
An impairment loss is recognised if the carrying amount of an
asset or its cash-generating unit exceeds its estimated recoverable
amount. Impairment losses are recognised in the consolidated income
statement. Impairment losses recognised in respect of
cash-generating units are allocated first to reduce the carrying
amount of any goodwill allocated to the units and then to reduce
the carrying amount of the other assets in the unit (group of
units) on a pro rata basis.
For goodwill and port concession rights that have indefinite
lives or that are not yet available for use, recoverable amount is
estimated annually and when circumstances indicate that carrying
value may be impaired. Goodwill acquired in business combination is
allocated to groups of cash generating units that are expected to
benefit from the synergies of the combination. An impairment loss
in respect of goodwill is not reversed.
In respect of other assets, impairment losses recognised in
prior periods are assessed at each reporting date for any
indications that the loss has decreased or no longer exists. An
impairment loss is reversed if there has been a change in the
estimates used to determine the recoverable amount. An impairment
loss is reversed only to the extent that the asset's carrying
amount does not exceed the carrying amount, which would have been
determined, net of depreciation or amortisation, if no impairment
loss had been recognised.
(j) Assets held for sale
Assets (or disposal groups comprising assets and liabilities)
which are expected to be recovered primarily through sale rather
than through continuing use are classified as held for sale.
Immediately before classification as held for sale, the assets (or
components of a disposal group) are re-measured in accordance with
the Group's accounting policies. Thereafter, generally the assets
(or disposal group) are measured at the lower of their carrying
amount or fair value less costs to sell. Any impairment loss on a
disposal group is first allocated to goodwill, and then to
remaining assets and liabilities on a pro rata basis, except that
no loss is allocated to inventories, financial assets, deferred tax
assets and employee benefit assets which continue to be measured in
accordance with the Group's accounting policies. Impairment losses
on initial classification as held for sale and subsequent gains or
losses on re-measurement are recognised in the consolidated income
statement. Gains are not recognised in excess of any cumulative
impairment loss.
Port concession rights and property, plant and equipment once
classified as held for sale or distribution are not amortised or
depreciated. In addition, equity accounting of equity-accounted
investees ceases once classified as held for sale.
(k) Share capital
Ordinary shares are classified as equity. Incremental costs
directly attributable to the issue of ordinary shares are
recognised as a deduction from equity. Any excess payment received
over par value is treated as share premium.
4 Significant accounting policies (continued)
(l) Employee benefits
(i) Pension and post-employment benefits
The Group's net obligation in respect of defined benefit pension
plans is calculated separately for each plan by estimating the
amount of future benefit that employees have earned in return for
their service in the current and prior periods. That benefit is
discounted to determine the present value, and the fair value of
any plan assets is deducted. The calculation is performed annually
by a qualified actuary using the projected unit credit method. The
discount rate is the yield at the reporting date on AA credit rated
bonds that have maturity dates approximating to the terms of the
Group's obligations.
When the actuarial calculation results in a benefit to the
Group, the recognised asset is limited to the present value of
economic benefits available in the form of any future refunds from
the plan or reductions in future contributions to the plan. In
order to calculate the present value of economic benefits,
consideration is given to any minimum funding requirements that
apply to any plan in the Group. An economic benefit is available to
the Group if it is realisable during the life of the plan, or on
settlement of the plan liabilities.
Where the present value of the deficit contributions exceeds the
IAS 19 deficit an additional liability is recognised.
Re-measurements of the net defined benefit liability, which
comprise of actuarial gains and losses, the return on plan assets
(excluding interest) and the effect of the asset ceiling (if any,
excluding interest) are recognised directly in consolidated
statement of other comprehensive income. The cost of providing
benefits under the defined benefit plans is determined separately
for each plan using the projected unit credit method, which
attributes entitlement to benefits to the current period (to
determine current service cost) and to the current and prior
periods (to determine the present value of defined benefit
obligation) and is based on actuarial advice. The Group determines
the net interest expense (income) on the net defined benefit
liability (asset) for the period by applying the discount rate used
to measure the defined benefit obligation at the beginning of the
annual period to the then-net defined benefit liability (asset),
taking into account any changes in the net defined benefit
liability (asset) during the period as result of contributions and
benefit payments. Net interest expense and other expenses related
to defined benefit plans are recognised in profit or loss.
When the benefits of a plan are changed or when a plan is
curtailed, the resulting change in benefit that relates to past
service or the gain or loss on curtailment is recognised
immediately in profit or loss. The group recognise gains and losses
on the settlement of a defined benefit plan when the settlement
occurs.
Contributions, including lump sum payments, in respect of
defined contribution pension schemes and multi-employer defined
benefit schemes where it is not possible to identify the Group's
share of the scheme, are charged to the consolidated income
statement as they fall due.
4 Significant accounting policies (continued)
(l) Employee benefits (continued)
(ii) Long-term service benefits
The Group's net obligation in respect of long-term service
benefits, other than pension plans, is the amount of future benefit
that employees have earned in return for their service in the
current and prior periods. The obligation is calculated using the
projected unit credit method and is discounted to its present value
and the fair value of any related assets is deducted. The discount
rate is the yield at the reporting date on AA credit rated bonds
that have maturity dates approximating to the terms of the Group's
obligations.
(iii) Short-term service benefits
Short-term employee benefits are expensed as the related service
is provided. A liability is recognised for the amount expected to
be paid if the Group has a present legal or constructive obligation
to pay this amount as a result of past service provided by the
employee and the obligation can be estimated reliably.
(m) Provisions
A provision is recognised if, as a result of a past event, the
Group has a present legal or constructive obligation that can be
estimated reliably, and it is probable that an outflow of economic
benefits will be required to settle the obligation. Provisions are
determined by discounting the expected future cash flows at a
pre-tax rate that reflects current market assessments of the time
value of money and the risks specific to the liability. The
unwinding of the discount is recognised as a finance cost in the
consolidated income statement.
Provision for an onerous contract is recognised when the
expected benefits to be derived by the Group from a contract are
lower than the unavoidable cost of meeting its obligations under
the contract. The provision is measured at the present value of the
lower of the expected cost of terminating the contract and the
expected net cost of continuing with the contract.
(n) Revenue
Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the Group and the revenue can be
reliably measured, regardless of when the payment is being made.
Revenue is measured at the fair value of the consideration received
or receivable, taking into account contractually defined terms of
payment and excluding taxes or duty.
Revenue mainly consists of containerized stevedoring and other
containerized revenue. Non-containerized revenue mainly includes
logistics and handling of break bulk cargo. The following specific
recognition criteria must also be met before revenue is
recognised:
Rendering of services
Revenue from providing containerized stevedoring, other
containerized services and non-containerized services is recognised
on the delivery and completion of those services.
Service concession arrangements (IFRIC 12)
Revenues relating to construction contracts which are entered
into with local authorities for the construction of the
infrastructure necessary for the provision of services are measured
at the fair value of the consideration received or receivable.
4 Significant accounting policies (continued)
(o) Finance income and expense
Finance income comprises interest income on funds invested and
gains on hedging instruments that are recognised in the
consolidated income statement. Interest income is recognised as it
accrues, using the effective interest method.
Finance costs comprises interest expense on borrowings,
unwinding of the discount on provisions, impairment losses
recognised on financial assets and losses on hedging instruments
that are recognised in the consolidated income statement.
Finance income and expense also include realised and unrealised
exchange gains and losses on monetary assets and liabilities (refer
to note 4(b)(i)).
(p) Income tax
Income tax expense comprises current and deferred tax. Income
tax expense is recognised in the consolidated income statement
except to the extent that it relates to a business combination, or
items recognised directly in consolidated statement of other
comprehensive income.
Current tax is the expected tax payable on the taxable income
for the year, using tax rates enacted or substantively enacted at
the reporting date in the countries where the Group operates and
generates taxable income. It also includes any adjustment to tax
payable in respect of previous years.
Current tax assets and liabilities are offset only if certain
criteria are met.
Deferred tax is recognised using the liability method, providing
for temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the amounts
used for taxation purposes. Deferred tax is not recognised for:
-- the temporary differences arising on the initial recognition
of goodwill and the initial recognition of assets or liabilities in
a transaction that is not a business combination and that affects
neither accounting nor taxable profit or loss; and
-- the temporary differences relating to investments in
subsidiaries and jointly controlled entities to the extent that
they probably will not reverse in the foreseeable future.
The measurement of deferred tax reflects the tax consequences
that would follow the manner in which the Group expects, at the end
of the reporting period, to recover or settle the carrying amount
of its assets and liabilities.
Deferred tax is measured at the tax rates that are expected to
be applied to the temporary differences when they reverse, based on
the laws that have been enacted or substantively enacted by the
reporting date.
A deferred tax asset is recognised for unused tax losses, tax
credits and deductible temporary differences, to the extent that it
is probable that future taxable profits will be available against
which they can be utilized. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no
longer probable that the related tax benefit will be realized.
Deferred tax assets and liabilities are offset only if certain
criteria are met.
4 Significant accounting policies (continued)
(q) Discontinued operation
A discontinued operation is a component of the Group's business
that represents a separate major line of business or geographical
area of operations that has been disposed or is held for sale.
Classification as a discontinued operation occurs upon disposal or
when the operation meets the criteria to be classified as held for
sale, if earlier. When an operation is classified as a discontinued
operation, the comparative consolidated income statement and
consolidated statement of comprehensive income is restated as if
the operation had been discontinued from the start of the
comparative period.
In the consolidated income statement of the reporting period,
and of the comparable period of the previous year, income and
expenses from discontinued operations are reported separately from
income and expenses from continuing operations, down to the level
of profit after taxes, even when the Group retains a
non-controlling interest in the subsidiary after the sale. The
resulting profit or loss (after taxes) is reported separately in
the consolidated income statement and disclosed in the notes to the
consolidated financial statements.
(r) Earnings per share
The Group presents basic earnings per share ("EPS") data for its
ordinary shares. Basic EPS is calculated by dividing the profit or
loss attributable to ordinary shareholders of the Company by the
weighted average number of ordinary shares outstanding during the
year.
(s) Segment reporting
An operating segment is a component of the Group that engages in
business activities from which it may earn revenue and incur
expenses, including revenues and expenses that relate to
transactions with any of the Group's other components. All
operating segments' operating results are reviewed regularly by the
Group's Board of Directors to assess performance.
Segment results that are reported to the Board of Directors
include items directly attributable to a segment as well as those
that can be allocated on a reasonable basis. Unallocated items
mainly comprise corporate assets (primarily Company's head office),
head office expenses and income tax assets and liabilities.
Segment capital expenditure is the total cost incurred during
the year to acquire property, plant and equipment, and port
concession rights other than goodwill.
(t) Separately disclosed items
The Group presents, as separately disclosed items on the face of
the consolidated income statement, those items of income and
expense which, because of the nature and expected infrequency of
the events giving rise to them, merit separate presentation to
allow users to understand better the elements of financial
performance in the period, so as to facilitate a comparison with
prior periods and a better assessment of trends in financial
performance.
(u) New standard and interpretation not yet effective
A number of new standards, amendments to standards and
interpretations are not effective for annual periods beginning 1
January 2013, and have not been applied in preparing these
consolidated financial statements. Those which may be relevant to
the Group are set out below. The Group does not plan to adopt these
standards early.
4 Significant accounting policies (continued)
(u) New standard and interpretation not yet effective (continued)
IFRS 9 Financial Instruments (2010), IFRS 9 Financial
Instruments (2009)
- IFRS 9(2009) introduces new requirements for the
classification and measurement of financial assets. Under IFRS
9(2009), financial assets are classified and measured based on the
business model in which they are held and the characteristics of
their contractual cash flows. IFRS 9(2010) introduces additional
changes relating to financial liabilities. The IASB currently has
an active project to make limited amendments to the classification
and measurement requirements of IFRS 9 and add new requirements to
address the impairment of financial assets and hedge
accounting.
IFRS 9(2010) and (2009) are effective for annual periods
beginning on or after 1 January 2015, with early adoption
permitted. The adoption of these standards is not expected to have
any significant impact on the Group's financial statements.
5 Determination of fair values
A number of the Group's accounting policies and disclosures
require the determination of fair value, for both financial and
non-financial assets and liabilities. Fair values have been
determined for measurement and/ or disclosure purposes based on the
following methods. When applicable, further information about the
assumptions made in determining fair values is disclosed in the
notes specific to that asset or liability.
(i) Property, plant and equipment
The fair value of property, plant and equipment recognised as a
result of a business combination is based on market values. The
market value of property is the estimated amount for which a
property could be exchanged on the date of valuation between a
willing buyer and a willing seller in an arm's length transaction
after proper marketing wherein the parties had each acted
knowledgeably, prudently and without compulsion. The market value
of items of plant, equipment, fixtures and fittings is based on the
quoted market prices for similar items.
(ii) Port concession rights
Port concession rights acquired in a business combination are
accounted at their fair values. The fair value is based on the
discounted cash flows expected to be derived from the use and
eventual sale of the assets.
(iii) Investments in debt securities and available-for-sale financial assets
The fair values of equity and debt securities are determined by
reference to their quoted closing bid price at the reporting date.
The fair value of the unquoted infrastructure investment fund
classified as available-for-sale is based on the independent
valuation of the fund. The fair value of debt securities held to
maturity is determined based on the discounted cash flows at a
market related discount rate. The fair value of debt securities
held to maturity is determined for disclosure purposes only.
(iv) Trade and other receivables/ payables
The fair value of trade and other receivables and trade and
other payables approximates to the carrying values due to the short
term maturity of these instruments.
5 Determination of fair values (continued)
(v) Derivatives
The fair value of forward exchange contracts and interest rate
swaps is based on the bank quotes at the reporting dates. Similar
contracts are traded in an active market and the quotes reflect the
actual transactions in similar instruments.
(vi) Non-derivative financial liabilities
Fair value for quoted bonds is based on their market price as at
the reporting date. Other loans include term loans and finance
leases. These are largely at variable interest rates and therefore,
the carrying value normally equates to the fair value.
The fair value of bank balances and cash and bank overdrafts
approximates to the carrying value due to the short term maturity
of these instruments.
6 Financial risk management
Overview
The Group has exposure to the following risks from its use of
financial instruments:
(a) credit risk
(b) liquidity risk
(c) market risk
This note presents information about the Group's exposure to
each of the above risks, the Group's objectives, policies and
processes for measuring and managing risk. Further quantitative
disclosures are included throughout these consolidated financial
statements. Also refer to note 30 for further details.
Risk management framework
The Board of Directors have overall responsibility for the
establishment and oversight of the Group's risk management
framework.
The Group's risk management policies are established to identify
and analyse the risks faced by the Group, to set appropriate risk
limits and controls, and to monitor risks and adherence to limits.
The Group, through its training and management standards and
procedures, aims to develop a disciplined and constructive control
environment in which all employees understand their roles and
obligations.
The Group Audit Committee oversees how management monitors
compliance with the Group's risk management policies and procedures
and reviews the adequacy of the risk management framework in
relation to the risks faced by the Group. The Group Audit Committee
is assisted in its oversight role by Internal Audit. Internal Audit
undertakes both regular and ad-hoc reviews of risk management
controls and procedures, the results of which are reported to the
Audit Committee.
6 Financial risk management (continued)
Risk management framework (continued)
(a) Credit risk
Credit risk is the risk of financial loss to the Group if a
customer fails to meet its contractual obligations, and arises
principally from the Group's receivables from customers, amounts
due from related parties and investment securities.
Trade and other receivables
The Group trades mainly with recognised and creditworthy third
parties. It is the Group's policy that all customers who wish to
trade on credit terms are subject to credit verification procedures
and are required to submit financial guarantees based on their
creditworthiness. In addition, receivable balances are monitored on
an ongoing
basis with the result that the Group's exposure to bad debts is
not significant.
The Group establishes an allowance for impairment that
represents its estimate of incurred losses in respect of trade and
other receivables. The main components of this allowance are a
specific loss component that relates to individually significant
exposures, and a collective loss component established for groups
of similar assets in respect of losses that have been incurred but
not yet identified. The collective loss allowance is determined
based on historical data of payment statistics for similar
financial assets.
Other financial assets
Credit risk arising from other financial assets of the Group
comprises cash and cash equivalents and certain derivative
instruments. The Group's exposure to credit risk arises from
default of the counterparty, with a maximum exposure equal to the
carrying amount of these instruments.
The Group manages its credit risks with regard to bank deposits,
throughout the Group, through a number of controls, which include
assessing the credit rating of the bank either from public credit
ratings, or internal analysis where public data is not available
and consideration of the support for financial institutions from
their central banks or other regulatory authorities.
Financial guarantees
The Group's policy is to consider the provision of a financial
guarantee to wholly-owned subsidiaries, where there is a commercial
rationale to do so. Guarantees may also be provided to associates
and joint ventures in very limited circumstances and always only
for the Group's share of the obligation. The provision of
guarantees always requires the approval of senior management.
(b) Liquidity risk
Liquidity risk is the risk that the Group will not be able to
meet its financial obligations as they fall due. The Group's
approach to managing liquidity is to ensure, as far as possible,
that it will always have sufficient cash to meet its liabilities
when due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Group's
reputation.
The Group's objective is to maintain a balance between
continuityof funding and flexibility through the use of bank
facilities and by ensuring adequate internally generated funds. The
Group's terms of business require amounts to be paid within 60 days
of the date of provision of the service. Trade payables are
normally settled within 45 days of the date of purchase.
6 Financial risk management (continued)
(c) Market risk
Market risk is the risk that changes in market prices, such as
foreign exchange rates and interest rates will affect the Group's
income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market
risk exposures within acceptable parameters, while optimising the
return.
The Group buys and sells derivatives and also incurs financial
liabilities, in order to manage market risks. All such transactions
are carried out within the guidelines set by the Board of Directors
in the Group Treasury policy. Generally, the Group seeks to apply
hedge accounting in order to manage the volatility in the
consolidated income statement.
(i) Currency risk
The proportion of the Group's net operating assets denominated
in foreign currencies (i.e. other than the functional currency of
the Company, UAE Dirhams) is approximately 69 % (2012: 73%) with
the result that the Group's USD consolidated statement of financial
position, and in particular shareholder's equity, can be affected
by currency movements when it is retranslated at each year end
rate. The Group partially mitigates the effect of such movements by
borrowing in the same currencies as those in which the assets are
denominated and using cross currency swaps. The impact of currency
movements on operating profit is partially mitigated by interest
costs being incurred in foreign currencies. The Group operates in
some locations where the local currency is fixed to the Group's
presentation currency of USD further reducing the risk of currency
movements.
Interest on borrowings is denominated in the currency of the
borrowings. Generally, borrowings are denominated in currencies
that match the cash flows generated by the underlying foreign
operations of the Group. This provides an economic hedge without
derivatives being entered into and therefore hedge accounting is
not applied in these circumstances.
A portion of the Group's activities generate part of their
revenue and incur some costs outside their main functional
currency. Due to the diverse number of locations in which the Group
operates there is some natural hedging that occurs within the
Group. When it is considered that currency volatility could have a
material impact on the results of an operation, hedging using
forward foreign currency contracts is undertaken to reduce the
short-term effect of currency movements.
When the Group's businesses enter into capital expenditure or
lease commitments in currencies other than their main functional
currency, these commitments are hedged in most instances using
forward contracts and currency swaps in order to fix the cost when
converted to the functional currency. The Group classifies its
forward exchange contracts hedging forecast transactions as cash
flow hedges and states them at fair value.
(ii) Interest rate risk
The Group's exposure to the risk of changes in market interest
rates relates primarily to the Group's long-term debt obligations
with a fixed/ floating interest rate and bank deposits. The Group
issued two fixed rate bonds, a 10 year Sukuk with a profit rate of
6.25% and a 30 year Medium Term Note with a coupon of 6.85% which
collectively represents USD 3,231,337 thousand of the Group's
outstanding debt as at the reporting date.
6 Financial risk management (continued)
(c) Market risk (continued)
(ii) Interest rate risk (continued)
The Group's policy is to manage its interest cost by entering
into interest rate swap agreements, in which the Group agrees to
exchange, at specified intervals, the difference between fixed and
variable rate interest amounts calculated by reference to an
agreed-upon notional principal amount. These swaps are designated
to hedge underlying debt obligations.
At 31 December 2013, after taking into account the effect of
interest rate swaps, approximately 90% (2012: 89%) of the Group's
borrowings are at a fixed rate of interest.
Capital management
The Board's policy is to maintain a strong capital base so as to
maintain investor, creditor and market confidence and to sustain
future development of the business. Capital consists of share
capital, share premium, shareholders' reserve, retained earnings,
hedging and other reserves, actuarial reserve and translation
reserve. The primary objective of the Group's capital management is
to ensure that it maintains a strong credit rating and healthy
capital ratios in order to support its business and maximise
shareholder value. The Board seeks to maintain a balance between
the higher returns that might be possible with higher levels of
borrowings and the advantages and security afforded by a sound
capital position.
Neither the Company nor any of its subsidiaries are subject to
externally imposed capital requirements.
The key performance ratios as at 31 December are as follows:
2013 2012
------------------------------------ ------------- -------------
USD'000 USD'000
------------------------------------ ------------- -------------
Total interest bearing loans
and borrowings (refer to note
27) 5,035,017 4,752,456
------------------------------------ ------------- -------------
Less: cash and cash equivalents
(refer to note 19) (2,571,063) (1,881,733)
------------------------------------ ------------- -------------
------------ ------------
------------------------------------ ------------- -------------
Total net debt 2,463,954 2,870,723
------------------------------------ ------------- -------------
======= =======
------------------------------------ ------------- -------------
Total Equity 9,021,541 8,780,407
------------------------------------ ------------- -------------
======= =======
------------------------------------ ------------- -------------
Adjusted EBITDA (restated) (refer
to note 7) 1,414,241 1,404,412
------------------------------------ ------------- -------------
======= =======
------------------------------------ ------------- -------------
Net finance cost before separately
disclosed items 284,946 296,018
------------------------------------ ------------- -------------
====== ======
------------------------------------ ------------- -------------
Net debt/ Equity 0.27 0.33
------------------------------------ ------------- -------------
Net debt/ adjusted EBITDA 1.74 2.04
------------------------------------ ------------- -------------
== ==
------------------------------------ ------------- -------------
Interest cover before separately
disclosed items 5.0 4.7
------------------------------------ ------------- -------------
== ===
------------------------------------ ------------- -------------
7 Segment information
The internal management reports which are prepared under IFRS
are reviewed by the Board of Directors ('Chief Operating Decision
Maker') based on the location of the Group's assets and
liabilities. The Group has identified the following geographic
areas as its basis of segmentation. The Group measures segment
performance based on the earnings before separately disclosed
items, interest, tax, depreciation and amortisation ("Adjusted
EBITDA").
-- Asia Pacific and Indian subcontinent
-- Australia and Americas
-- Middle East, Europe and Africa
Each of these operating segments have an individual appointed as
Segment Director responsible for these segments, who in turn
reports to the Chief Operating Decision Maker.
In addition to the above reportable segments, the Group also
reports unallocated head office costs, finance costs, finance
income and tax expense under the head office segment.
Information regarding the results of each reportable segment is
included below.
DP World Limited and its subsidiaries
Notes to consolidated financial statements (continued)
7 Segment information (continued)
The following table presents certain results, assets and
liabilities information regarding the Group's segments as at the
reporting date.
Asia Pacific Australia Middle East, Head office Inter-segment Total
and Indian and Americas Europe and
subcontinent Africa
------------ ----------------------- ------------------------ ------------------------ -------------------------- ----------------------- --------------------------
2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012
------------ ---------- ----------- ----------- ----------- ----------- ----------- ------------ ------------ ---------- ----------- ------------ ------------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
------------ ---------- ----------- ----------- ----------- ----------- ----------- ------------ ------------ ---------- ----------- ------------ ------------
(Restated) (Restated) (Restated) (Restated) (Restated) (Restated)
------------ ---------- ----------- ----------- ----------- ----------- ----------- ------------ ------------ ---------- ----------- ------------ ------------
(Including separately disclosed items)
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Revenue 355,217 456,578 594,183 552,751 2,123,848 2,111,688 - - - - 3,073,248 3,121,017
------------ ---------- ----------- ----------- ----------- ----------- ----------- ------------ ------------ ---------- ----------- ------------ ------------
====== ====== ====== ====== ======= ======= ===== ===== ===== ===== ======= =======
------------ ---------- ----------- ----------- ----------- ----------- ----------- ------------ ------------ ---------- ----------- ------------ ------------
Segment
results
from
operations
* 267,980 217,755 125,061 109,330 782,004 955,186 (168,311) (159,381) - - 1,006,734 1,122,890
------------ ---------- ----------- ----------- ----------- ----------- ----------- ------------ ------------ ---------- ----------- ------------ ------------
Finance
income - - - - - - 84,493 75,211 - - 84,493 75,211
------------ ---------- ----------- ----------- ----------- ----------- ----------- ------------ ------------ ---------- ----------- ------------ ------------
Finance
costs - - - - - - (369,439) (381,602) - - (369,439) (381,602)
------------ ---------- ----------- ----------- ----------- ----------- ----------- ------------ ------------ ---------- ----------- ------------ ------------
--------- --------- ---------- ---------- ---------- ---------- ---------- ---------- --------- --------- ---------- ----------
------------ ---------- ----------- ----------- ----------- ----------- ----------- ------------ ------------ ---------- ----------- ------------ ------------
Profit/
(loss)
for the
year 267,980 217,755 125,061 109,330 782,004 955,186 (453,257) (465,772) - - 721,788 816,499
------------ ---------- ----------- ----------- ----------- ----------- ----------- ------------ ------------ ---------- ----------- ------------ ------------
====== ====== ====== ====== ====== ====== ====== ====== ===== ===== ====== ======
------------ ---------- ----------- ----------- ----------- ----------- ----------- ------------ ------------ ---------- ----------- ------------ ------------
* Segment results from operations comprise profit for the year before net finance cost.
Net finance cost and tax expense from various geographical
locations and head office have been grouped under head office.
DP World Limited and its subsidiaries
Notes to consolidated financial statements (continued)
7 Segment information (continued)
Asia Pacific Australia Middle East, Head office Inter-segment Total
and Indian and Americas Europe and
subcontinent Africa
--------------- ------------------------ ------------------------ ---------------------------- ---------------------------- -------------------------- ----------------------------
2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012
--------------- ----------- ----------- ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- -------------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
--------------- ----------- ----------- ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- -------------
(Restated) (Restated) (Restated) (Restated) (Restated) (Restated)
--------------- ----------- ----------- ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- -------------
Segment assets 3,827,246 4,993,196 1,737,515 1,804,715 9,654,817 9,448,179 9,371,725 8,765,591 (7,830,789) (8,674,482) 16,760,514 16,337,199
--------------- ----------- ----------- ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- -------------
======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= =======
--------------- ----------- ----------- ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- -------------
Segment
liabilities 237,295 427,202 89,632 140,115 1,586,005 1,538,016 5,605,650 6,128,409 (925,542) (1,831,438) 6,593,040 6,402,304
--------------- ----------- ----------- ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- -------------
Tax
liabilities
* - - - - - - 1,145,933 1,154,488 - - 1,145,933 1,154,488
--------------- ----------- ----------- ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- -------------
---------- ---------- ---------- ---------- ------------ ------------ ------------ ------------ ---------- ----------- ------------ ------------
--------------- ----------- ----------- ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- -------------
Total
liabilities 237,295 427,202 89,632 140,115 1,586,005 1,538,016 6,751,583 7,282,897 (925,542) (1,831,438) 7,738,973 7,556,792
--------------- ----------- ----------- ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- -------------
====== ====== ====== ====== ======= ======= ======= ======= ====== ======= ======= =======
--------------- ----------- ----------- ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- -------------
Capital
expenditure 21,496 7,894 72,986 98,650 965,720 575,034 3,220 3,373 - - 1,063,422 684,951
--------------- ----------- ----------- ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- -------------
===== ===== ====== ====== ====== ====== ==== ==== ===== ===== ====== ======
--------------- ----------- ----------- ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- -------------
Depreciation 27,478 32,848 62,900 64,458 181,481 187,636 4,988 5,069 - - 276,847 290,011
--------------- ----------- ----------- ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- -------------
===== ===== ===== ===== ====== ====== ==== ==== ===== ===== ====== ======
--------------- ----------- ----------- ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- -------------
Amortisation/
impairment 75,365 57,781 11,995 48,675 130,445 64,065 - - - - 217,805 170,521
--------------- ----------- ----------- ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- -------------
===== ===== ===== ===== ====== ====== ==== ==== ===== ===== ====== ======
--------------- ----------- ----------- ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- -------------
Share of
profit
of equity-
accounted
investees
before
separately
disclosed
items 90,107 110,853 (14,105) (973) 8,364 24,017 - - - - 84,366 133,897
--------------- ----------- ----------- ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- -------------
===== ===== ==== ==== ==== ==== ===== ===== === === ===== =====
--------------- ----------- ----------- ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- -------------
Tax expense - - - - - - 64,458 72,954 - - 64,458 72,954
--------------- ----------- ----------- ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- -------------
===== ===== ==== ===== ==== ===== ===== ===== === === ===== =====
--------------- ----------- ----------- ----------- ----------- ------------- ------------- ------------- ------------- ------------ ------------ ------------- -------------
* Tax liabilities and tax expensesfrom various geographical
locations have been grouped under head office.
DP World Limited and its subsidiaries
Notes to consolidated financial statements (continued)
7 Segment information (continued)
Earnings before separately disclosed items, interest, tax,
depreciation and amortisation ("Adjusted EBITDA")
Asia Pacific Australia Middle East, Head office Inter-segment Total
and Indian and Americas Europe and
subcontinent Africa
-------------- ------------------------ ------------------------ -------------------------- -------------------------- ---------------------- --------------------------
2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012
-------------- ----------- ----------- ----------- ----------- ------------ ------------ ------------ ------------ --------- ----------- ------------ ------------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
-------------- ----------- ----------- ----------- ----------- ------------ ------------ ------------ ------------ --------- ----------- ------------ ------------
(Restated) (Restated) (Restated) (Restated) (Restated) (Restated)
-------------- ----------- ----------- ----------- ----------- ------------ ------------ ------------ ------------ --------- ----------- ------------ ------------
Revenue
before
separately
disclosed
items 355,217 456,578 594,183 552,751 2,123,848 2,111,688 - - - - 3,073,248 3,121,017
-------------- ----------- ----------- ----------- ----------- ------------ ------------ ------------ ------------ --------- ----------- ------------ ------------
====== ====== ====== ====== ======= ======= ==== ==== ==== ==== ======= =======
-------------- ----------- ----------- ----------- ----------- ------------ ------------ ------------ ------------ --------- ----------- ------------ ------------
Adjusted
EBITDA 219,700 299,391 195,235 165,845 1,095,171 1,020,534 (95,865) (81,358) - - 1,414,241 1,404,412
-------------- ----------- ----------- ----------- ----------- ------------ ------------ ------------ ------------ --------- ----------- ------------ ------------
Finance
income - - - - - - 84,493 75,211 - - 84,493 75,211
-------------- ----------- ----------- ----------- ----------- ------------ ------------ ------------ ------------ --------- ----------- ------------ ------------
Finance costs - - - - - - (369,439) (371,229) - - (369,439) (371,229)
-------------- ----------- ----------- ----------- ----------- ------------ ------------ ------------ ------------ --------- ----------- ------------ ------------
Tax expense - - - - - - (59,558) (72,954) - - (59,558) (72,954)
-------------- ----------- ----------- ----------- ----------- ------------ ------------ ------------ ------------ --------- ----------- ------------ ------------
Depreciation
and
amortisation (78,843) (90,629) (74,895) (77,333) (236,773) (237,601) (4,988) (5,069) - - (395,499) (410,632)
-------------- ----------- ----------- ----------- ----------- ------------ ------------ ------------ ------------ --------- ----------- ------------ ------------
-------- -------- -------- -------- --------- --------- --------- --------- ------- -------- --------- ---------
-------------- ----------- ----------- ----------- ----------- ------------ ------------ ------------ ------------ --------- ----------- ------------ ------------
Adjusted net
profit/
(loss)
for
the year
before
separately
disclosed
items 140,857 208,762 120,340 88,512 858,398 782,933 (445,357) (455,399) - - 674,238 624,808
-------------- ----------- ----------- ----------- ----------- ------------ ------------ ------------ ------------ --------- ----------- ------------ ------------
Adjusted for
separately
disclosed
items 127,123 8,993 4,721 20,818 (76,394) 172,253 (7,900) (10,373) - - 47,550 191,691
-------------- ----------- ----------- ----------- ----------- ------------ ------------ ------------ ------------ --------- ----------- ------------ ------------
---------- ---------- ---------- ---------- ---------- ---------- --------- --------- -------- -------- ---------- ----------
-------------- ----------- ----------- ----------- ----------- ------------ ------------ ------------ ------------ --------- ----------- ------------ ------------
Profit/
(loss)
for the year 267,980 217,755 125,061 109,330 782,004 955,186 (453,257) (465,772) - - 721,788 816,499
-------------- ----------- ----------- ----------- ----------- ------------ ------------ ------------ ------------ --------- ----------- ------------ ------------
====== ====== ====== ====== ====== ====== ====== ====== ===== ===== ====== ======
-------------- ----------- ----------- ----------- ----------- ------------ ------------ ------------ ------------ --------- ----------- ------------ ------------
8 Revenue
2013 2012
----------------------------------- ------------- -------------
USD'000 USD'000
----------------------------------- ------------- -------------
Revenue consists of:
----------------------------------- ------------- -------------
Containerized stevedoring revenue 1,396,510 1,366,200
----------------------------------- ------------- -------------
Containerized other revenue 1,026,792 1,044,967
----------------------------------- ------------- -------------
Non-containerized revenue 649,946 709,850
----------------------------------- ------------- -------------
------------ ------------
----------------------------------- ------------- -------------
3,073,248 3,121,017
----------------------------------- ------------- -------------
======= =======
----------------------------------- ------------- -------------
The Group does not have any customer which contributes more than
10 per cent of the Group's total revenue.
9 Profit for the year (including separately disclosed items)
2013 2012
------------------------------- -------- --------
USD'000 USD'000
------------------------------- -------- --------
Profit for the year is stated
after charging the following
costs:
------------------------------- -------- --------
Staff costs 610,768 646,846
------------------------------- -------- --------
Depreciation and amortisation 395,499 410,632
------------------------------- -------- --------
Operating lease rentals 352,513 384,521
------------------------------- -------- --------
Impairment 99,153 49,900
------------------------------- -------- --------
====== ======
------------------------------- -------- --------
10 Finance income and costs (including separately disclosed items)
2013 2012
------------------------------------ ----------- -----------
USD'000 USD'000
------------------------------------ ----------- -----------
(Restated)
------------------------------------ ----------- -----------
Finance income
------------------------------------ ----------- -----------
Interest income 54,140 67,295
------------------------------------ ----------- -----------
Exchange gains 30,353 6,688
------------------------------------ ----------- -----------
Other net financing income in
respect of pension plans - 1,228
------------------------------------ ----------- -----------
--------- ---------
------------------------------------ ----------- -----------
84,493 75,211
------------------------------------ ----------- -----------
--------- ---------
------------------------------------ ----------- -----------
Finance costs
------------------------------------ ----------- -----------
Interest expense (320,957) (350,222)
------------------------------------ ----------- -----------
Exchange losses (40,279) (13,067)
------------------------------------ ----------- -----------
Other net financing expense in
respect of pension plans (8,203) (7,940)
------------------------------------ ----------- -----------
---------- ----------
------------------------------------ ----------- -----------
Finance costs before separately
disclosed items (369,439) (371,229)
------------------------------------ ----------- -----------
Adjusted for separately disclosed
items (refer to note 12) - (10,373)
------------------------------------ ----------- -----------
---------- ----------
------------------------------------ ----------- -----------
Finance costs after separately
disclosed items (369,439) (381,602)
------------------------------------ ----------- -----------
====== ======
------------------------------------ ----------- -----------
Net finance costs after separately
disclosed items (284,946) (306,391)
------------------------------------ ----------- -----------
====== ======
------------------------------------ ----------- -----------
11 Income tax
The major components of income tax expense for the year ended
31December:
2013 2012
----------------------------------------- ---------- -----------
USD'000 USD'000
----------------------------------------- ---------- -----------
(Restated)
----------------------------------------- ---------- -----------
Current income tax expense
----------------------------------------- ---------- -----------
Current year 105,500 108,912
----------------------------------------- ---------- -----------
Adjustment for prior periods (7,487) (20,738)
----------------------------------------- ---------- -----------
-------- ---------
----------------------------------------- ---------- -----------
98,013 88,174
----------------------------------------- ---------- -----------
Deferred tax credits (33,555) (15,220)
----------------------------------------- ---------- -----------
--------- ---------
----------------------------------------- ---------- -----------
64,458 72,954
----------------------------------------- ---------- -----------
--------- --------
----------------------------------------- ---------- -----------
Income tax expense 59,558 72,954
----------------------------------------- ---------- -----------
Tax on separately disclosed items 4,900 -
----------------------------------------- ---------- -----------
--------- ---------
----------------------------------------- ---------- -----------
Total tax expenses 64,458 72,954
----------------------------------------- ---------- -----------
Share of income tax of equity-accounted
investees 18,577 38,189
----------------------------------------- ---------- -----------
--------- ---------
----------------------------------------- ---------- -----------
Total tax charge 83,035 111,143
----------------------------------------- ---------- -----------
===== ======
----------------------------------------- ---------- -----------
Current income tax receivable
(included within accounts receivable
and prepayments) 17,806 6,319
----------------------------------------- ---------- -----------
===== =====
----------------------------------------- ---------- -----------
Current income tax liabilities 210,347 186,586
----------------------------------------- ---------- -----------
===== ======
----------------------------------------- ---------- -----------
Current tax liabilities have been offset if certain criteria are
met. Comparatives have been reclassified accordingly.
All tax items included within separately disclosed items are
detailed in note 12.
The Group is not subject to income tax on its UAE operations.
The tax expense relates to the tax payable on the profit earned by
the overseas subsidiaries, associates and joint ventures as
adjusted in accordance with the taxation laws and regulations of
the countries in which they operate. The applicable tax rates in
the regions in which the Group operates are set out below:
Geographical segments Applicable corporate
tax rate
------------------------- ---------------------
Asia Pacific and Indian 16.5% to 34.0%
subcontinent
------------------------- ---------------------
Australia and Americas 26.0% to 36.0%
------------------------- ---------------------
Middle East, Europe and
Africa 0% to 34.0%
------------------------- ---------------------
===========
------------------------------------------------
11 Income tax (continued)
The relationship between the tax expense and the accounting
profit can be explained as follows:
2013 2012
------------------------------------ ------- ----------- -----------
USD'000 USD'000
------------------------------------ ------- ----------- -----------
(Restated)
------------------------------------ ------- ----------- -----------
Net profit before tax 786,246 889,453
--------------------------------------------- ----------- -----------
====== ======
------------------------------------ ------- ----------- -----------
Tax at the Group's domestic - -
tax rate
------------------------------------ ------- ----------- -----------
Higher income tax on foreign
earnings 103,866 182,888
--------------------------------------------- ----------- -----------
Permanent differences including
non-taxable
income and non-deductible
expenses (47,101) (86,530)
--------------------------------------------- ----------- -----------
Tax charge on equity-accounted
investees 18,577 38,189
--------------------------------------------- ----------- -----------
Current year losses not recognised
for deferred tax asset 39,828 31,785
--------------------------------------------- ----------- -----------
Brought forward losses utilised (3,295) (32,691)
--------------------------------------------- ----------- -----------
Deferred tax in respect of
fair value adjustments (46,818) (43,036)
--------------------------------------------- ----------- -----------
Others 20,979 11,933
--------------------------------------------- ----------- -----------
--------- ---------
------------------------------------ ------- ----------- -----------
Tax expense before prior year
adjustments 86,036 102,538
--------------------------------------------- ----------- -----------
Tax (over)/ under provided
in prior periods:
------------------------------------ ------- ----------- -----------
-current tax (7,487) (20,738)
--------------------------------------------- ----------- -----------
-deferred tax (414) 29,343
--------------------------------------------- ----------- -----------
--------- ---------
------------------------------------ ------- ----------- -----------
Total tax expense from operations 78,135 111,143
--------------------------------------------- ----------- -----------
Adjustment for separately 4,900 -
disclosed items
------------------------------------ ------- ----------- -----------
--------- ---------
------------------------------------ ------- ----------- -----------
Total tax expenses (A) 83,035 111,143
------------------------------------ ------- ----------- -----------
===== =====
------------------------------------ ------- ----------- -----------
Net profit before tax 786,246 889,453
--------------------------------------------- ----------- -----------
Adjustment for separately
disclosed items (52,450) (191,691)
--------------------------------------------- ----------- -----------
Adjustment to share of income
tax of equity-accounted investees 18,577 38,189
--------------------------------------------- ----------- -----------
---------- ----------
------------------------------------ ------- ----------- -----------
Adjusted profit before tax
and before separately
------------------------------------ ------- ----------- -----------
disclosed items (B) 752,373 735,951
------------------------------------ ------- ----------- -----------
====== ======
------------------------------------ ------- ----------- -----------
Effective tax rate before
separately disclosed items (A/B) 11.04% 15.10%
------------------------------------ ------- ----------- -----------
===== =====
-------------------------------------------- ----------- -----------
Unrecognised deferred tax assets
Deferred tax is not recognised on trading losses of USD 617,982
thousand (2012: USD 486,771 thousand) where utilisation is
uncertain, either because they have not been agreed with tax
authorities, or because the likelihood of future taxable profits is
not sufficiently certain, or because of the impact of tax holidays
on infrastructure projects. Under current legislation, USD 418,901
thousand (2012: USD 331,196 thousand) of these trading losses can
be carried forward indefinitely.
Deferred tax is also not recognised on capital and other losses
of USD 338,378 thousand (2012: USD 288,722 thousand) due to the
fact that their utilisation is uncertain.
DP World Limited and its subsidiaries
Notes to consolidated financial statements (continued)
11 Income tax (continued)
Movement in temporary differences during the year:
1 January
2013 31 December
Recognised Translation
in consolidated and other
(Restated) income statement movements 2013
-------------------------------- ------------- ------------------ ------------ ------------
USD'000 USD'000 USD'000 USD'000
-------------------------------- ------------- ------------------ ------------ ------------
Deferred tax liabilities
-------------------------------- ------------- ------------------ ------------ ------------
Property, plant and equipment 148,353 (9,385) (13,242) 125,726
-------------------------------- ------------- ------------------ ------------ ------------
Investment in equity-accounted
investees 32,959 2,843 2,944 38,746
-------------------------------- ------------- ------------------ ------------ ------------
Fair value adjustment on
acquisitions 460,186 (44,329) (14,153) 401,704
-------------------------------- ------------- ------------------ ------------ ------------
Others 429,433 4,357 (2,182) 431,608
-------------------------------- ------------- ------------------ ------------ ------------
Total before set off 1,070,931 (46,514) (26,633) 997,784
-------------------------------- ------------- ------------------ ------------ ------------
------------ ---------- ---------- -----------
-------------------------------- ------------- ------------------ ------------ ------------
Set off of tax (103,029) (62,198)
-------------------------------- ------------- ------------------ ------------ ------------
Net deferred tax liabilities 967,902 935,586
-------------------------------- ------------- ------------------ ------------ ------------
======= ======
-------------------------------- ------------- ------------------ ------------ ------------
Deferred tax assets
-------------------------------- ------------- ------------------ ------------ ------------
Property, plant and equipment 3,738 679 144 4,561
-------------------------------- ------------- ------------------ ------------ ------------
Pension and post-employment
benefits 10,103 (908) (2,764) 6,431
-------------------------------- ------------- ------------------ ------------ ------------
Financial instruments 24,696 198 (19,980) 4,914
-------------------------------- ------------- ------------------ ------------ ------------
Provisions 5,282 536 (1,741) 4,077
-------------------------------- ------------- ------------------ ------------ ------------
Tax value of losses carried
forward recognised 48,483 (12,925) (3,389) 32,169
-------------------------------- ------------- ------------------ ------------ ------------
Others 13,451 (539) 1,527 14,439
-------------------------------- ------------- ------------------ ------------ ------------
---------- ---------- ---------- ---------
-------------------------------- ------------- ------------------ ------------ ------------
Total before set off 105,753 (12,959) (26,203) 66,591
-------------------------------- ------------- ------------------ ------------ ------------
---------- ---------- ---------- ---------
-------------------------------- ------------- ------------------ ------------ ------------
Set off of tax (103,029) (62,198)
-------------------------------- ------------- ------------------ ------------ ------------
Net deferred tax assets 2,724 4,393
-------------------------------- ------------- ------------------ ------------ ------------
====== ======
-------------------------------- ------------- ------------------ ------------ ------------
Deferred tax liabilities have been offset if certain criteria
are met. Comparatives have been reclassified accordingly.
12 Separately disclosed items
2013 2012
-------------------------------- --------- -----------
USD'000 USD'000
-------------------------------- --------- -----------
Restructuring costs (2,280) (5,950)
-------------------------------- --------- -----------
Impairment of assets (99,153) (49,900)
-------------------------------- --------- -----------
Share of (loss)/ profit of
equity-accounted investees (4,305) 20,710
-------------------------------- --------- -----------
Profit on sale and termination
of businesses 158,188 237,204
-------------------------------- --------- -----------
Ineffective interest rate
swaps and currency options - (10,373)
-------------------------------- --------- -----------
Income tax expense (4,900) -
-------------------------------- --------- -----------
-------- ----------
-------------------------------- --------- -----------
47,550 191,691
-------------------------------- --------- -----------
===== ======
-------------------------------- --------- -----------
Restructuring costsrelates to the restructuring of subsidiaries
in the 'Middle East, Europe and Africa' region and in the 'Asia
Pacific and Indian subcontinent' region. (2012: relates to the
restructuring costs of a subsidiary in the 'Middle East, Europe and
Africa' region and in the 'Australia and Americas' region).
Impairment of assets relates to the impairment of assets of USD
75,153 thousand in the 'Middle East, Europe and Africa' region and
USD 24,000 thousand in the 'Asia Pacific and Indian subcontinent'
region. The impairments are in the following asset categories:
Property, plant and equipment USD 43,816 thousand (2012: USD
49,900), Goodwill USD 3,268 thousand (2012: Nil), Port concession
rights USD 23,871 thousand (2012: Nil), Investment in
equity-accounted investees USD 24,000 thousand (2012: Nil) and
other assets USD 4,198 thousand (2012: Nil). These impairments were
mainly due to significant adverse effects in the market and
economic conditions which were outside the control of the Group.
(2012: Impairment of property, plant and equipment of USD 14,100
thousand in the 'Middle East, Europe and Africa' region and USD
35,800 thousand in the 'Australia and Americas' region).
Share of (loss)/ profitof equity-accounted investees: USD 1,241
thousand relates to the share of ineffective hedge in an associate
in the 'Middle East, Europe and Africa' region and USD 3,064
thousand relates to the share of restructuring costs in the
'Australia and Americas' region. (2012: includes USD 11,717
thousand share of equity earnings of a joint venture upon sale of
an entity within this group in the 'Australia and Americas' region
and USD 8,993 thousand share of profit on transfer of certain
assets by an associate in the 'Asia Pacific and Indian
subcontinent' region).
Profit on sale and termination of businesses for 2013
represents:
-- USD 152,224 thousand profit on monetisation of investments in
the 'Asia Pacific and Indian subcontinent' region.
-- USD 5,964 thousand profit on monetisation of investments in
an equity-accounted investee in the 'Australia and Americas'
region.
Profit on sale and termination of businesses for 2012
represents:
-- (2012: USD 193,533 thousand profit on monetisation of
investments in equity-accounted investees in the 'Middle East,
Europe and Africa' region.
-- USD 53,288 thousand profit on monetisation of investments in
an equity-accounted investee in the 'Australia and Americas'
region, offset by a tax charge of USD 7,937 thousand.
-- USD 6,312 thousand loss on termination of a concession in the
'Middle East, Europe and Africa' region.
-- USD 4,632 thousand profit on monetisation of a subsidiary in
the 'Middle East, Europe and Africa' region).
Ineffective interest rate swaps and currency options: 2013 : Nil
(2012: USD 10,373 thousand relates to the loss on ineffective
interest rate swaps in the 'Asia Pacific and Indian subcontinent'
region).
Income tax expense relates to the restructuring of subsidiaries
in the 'Asia Pacific and Indian subcontinent' region (2012:
Nil).
13 Property, plant and equipment
Capital
Land Plant work-
and buildings and equipment Ships in-progress Total
-------------------------- --------------- --------------- ----------- ------------- -------------
USD'000 USD'000 USD'000 USD'000 USD'000
-------------------------- --------------- --------------- ----------- ------------- -------------
Cost
-------------------------- --------------- --------------- ----------- ------------- -------------
As at 1 January
2013 3,073,584 2,462,280 240,361 1,316,806 7,093,031
-------------------------- --------------- --------------- ----------- ------------- -------------
Additions during
the year 5,227 52,225 26,340 941,738 1,025,530
-------------------------- --------------- --------------- ----------- ------------- -------------
Transfers from
capital
work-in-progress 353,024 511,749 - (864,773) -
-------------------------- --------------- --------------- ----------- ------------- -------------
Translation adjustment (63,202) 10,088 (13,999) 20,850 (46,263)
-------------------------- --------------- --------------- ----------- ------------- -------------
Disposals (1,264) (40,088) (7,900) - (49,252)
-------------------------- --------------- --------------- ----------- ------------- -------------
Disposal of subsidiaries (59,230) (67,300) - (8,982) (135,512)
-------------------------- --------------- --------------- ----------- ------------- -------------
------------ ------------ ---------- ------------ ------------
-------------------------- --------------- --------------- ----------- ------------- -------------
As at 31 December
2013 3,308,139 2,928,954 244,802 1,405,639 7,887,534
-------------------------- --------------- --------------- ----------- ------------- -------------
------------ ------------ ---------- ------------ ------------
-------------------------- --------------- --------------- ----------- ------------- -------------
Depreciation
and impairment
-------------------------- --------------- --------------- ----------- ------------- -------------
As at 1 January
2013 614,767 961,150 103,852 - 1,679,769
-------------------------- --------------- --------------- ----------- ------------- -------------
Charge for the
year 103,978 152,247 20,622 - 276,847
-------------------------- --------------- --------------- ----------- ------------- -------------
Impairment losses
(refer to note
12) 7,197 36,525 - 94 43,816
-------------------------- --------------- --------------- ----------- ------------- -------------
Translation adjustment 7,038 (37,175) (10,700) - (40,837)
-------------------------- --------------- --------------- ----------- ------------- -------------
On disposals (711) (37,289) (7,900) - (45,900)
-------------------------- --------------- --------------- ----------- ------------- -------------
On disposal of
subsidiaries (38,040) (57,906) - - (95,946)
-------------------------- --------------- --------------- ----------- ------------- -------------
---------- ------------ ---------- --- ------------
-------------------------- --------------- --------------- ----------- ------------- -------------
As at 31 December
2013 694,229 1,017,552 105,874 94 1,817,749
-------------------------- --------------- --------------- ----------- ------------- -------------
---------- ------------ ---------- --- ------------
-------------------------- --------------- --------------- ----------- ------------- -------------
Net book value
-------------------------- --------------- --------------- ----------- ------------- -------------
As at 31 December
2013 2,613,910 1,911,402 138,928 1,405,545 6,069,785
-------------------------- --------------- --------------- ----------- ------------- -------------
======= ======= ====== ======= =======
-------------------------- --------------- --------------- ----------- ------------- -------------
In the prior years, the Group had entered into agreements with
third parties pursuant to which the Group participated in a series
of linked transactions including leasing and sub-leasing of certain
cranes of the Group ("the Crane French Lease Arrangements"). At 31
December 2013, cranes with aggregate net book value amounting to
USD 272,972 thousand (2012: USD 288,710 thousand) were covered by
these Crane French Lease Arrangements. These cranes are accounted
for as property, plant and equipment as the Group retains all the
risks and rewards incidental to the ownership of the underlying
assets.
At 31 December 2013, property, plant and equipment with a
carrying amount of USD 2,451,173 thousand (2012: USD 2,391,298
thousand) are pledged to secure bank loans (refer to note 27). At
31 December 2013, the net carrying value of the leased plant and
equipment and other assets was USD 50,065 thousand (2012: USD
48,796 thousand).
Borrowing costs capitalised to property, plant and equipment
amounted to USD 36,691 thousand (2012: USD 44,900 thousand) with a
capitalisation rate in the range of 4.68% to 5.13%per annum (2012:
4.68% to 5.13% per annum).
13 Property, plant and equipment (continued)
Land Plant
and and Capital work-
buildings equipment Ships in-progress Total
-------------------------- ------------- ------------- ------------ -------------- --------------
USD'000 USD'000 USD'000 USD'000 USD'000
-------------------------- ------------- ------------- ------------ -------------- --------------
Cost
-------------------------- ------------- ------------- ------------ -------------- --------------
As at 1 January
2012 3,069,584 2,486,928 216,479 791,760 6,564,751
-------------------------- ------------- ------------- ------------ -------------- --------------
Additions during
the year 7,530 39,771 48,582 546,051 641,934
-------------------------- ------------- ------------- ------------ -------------- --------------
Transfers from
capital
work-in-progress 27,347 51,097 - (78,444) -
-------------------------- ------------- ------------- ------------ -------------- --------------
Translation adjustment (2,815) (2,667) (9,000) 59,650 45,168
-------------------------- ------------- ------------- ------------ -------------- --------------
Disposals (3,662) (68,093) (15,700) (2,211) (89,666)
-------------------------- ------------- ------------- ------------ -------------- --------------
Disposal of subsidiaries (24,400) (44,756) - - (69,156)
-------------------------- ------------- ------------- ------------ -------------- --------------
------------ ------------ ---------- ------------- -------------
-------------------------- ------------- ------------- ------------ -------------- --------------
As at 31 December
2012 3,073,584 2,462,280 240,361 1,316,806 7,093,031
-------------------------- ------------- ------------- ------------ -------------- --------------
------------ ------------ ---------- ------------- -------------
-------------------------- ------------- ------------- ------------ -------------- --------------
Depreciation and
impairment
-------------------------- ------------- ------------- ------------ -------------- --------------
As at 1 January
2012 482,535 883,323 74,773 - 1,440,631
-------------------------- ------------- ------------- ------------ -------------- --------------
Charge for the
year 137,944 138,964 13,103 - 290,011
-------------------------- ------------- ------------- ------------ -------------- --------------
Impairment losses
(refer to note
12) 4,900 19,000 26,000 - 49,900
-------------------------- ------------- ------------- ------------ -------------- --------------
Translation adjustment 1,640 4,424 276 - 6,340
-------------------------- ------------- ------------- ------------ -------------- --------------
On disposals (2,752) (57,661) (10,300) - (70,713)
-------------------------- ------------- ------------- ------------ -------------- --------------
On disposal of
subsidiaries (9,500) (26,900) - - (36,400)
-------------------------- ------------- ------------- ------------ -------------- --------------
---------- ---------- ---------- ---------- ------------
-------------------------- ------------- ------------- ------------ -------------- --------------
As at 31 December
2012 614,767 961,150 103,852 - 1,679,769
-------------------------- ------------- ------------- ------------ -------------- --------------
---------- ----------- ----------- ---------- ------------
-------------------------- ------------- ------------- ------------ -------------- --------------
Net book value
-------------------------- ------------- ------------- ------------ -------------- --------------
As at 31 December
2012 2,458,817 1,501,130 136,509 1,316,806 5,413,262
-------------------------- ------------- ------------- ------------ -------------- --------------
======= ======= ====== ====== =======
-------------------------- ------------- ------------- ------------ -------------- --------------
14 Goodwill and port concession rights
Total
Port concession Intangible
Goodwill rights Assets
----------------------------- ------------- ---------------- -------------
USD'000 USD'000 USD'000
----------------------------- ------------- ---------------- -------------
Cost
----------------------------- ------------- ---------------- -------------
As at 1 January 2013 1,588,918 3,934,648 5,523,566
----------------------------- ------------- ---------------- -------------
Additions - 37,892 37,892
----------------------------- ------------- ---------------- -------------
Disposals - (790) (790)
----------------------------- ------------- ---------------- -------------
Disposal of subsidiaries (34,880) (27,981) (62,861)
----------------------------- ------------- ---------------- -------------
Impairment losses (refer
to note 12) (3,268) - (3,268)
----------------------------- ------------- ---------------- -------------
Translation adjustment (18,532) (144,116) (162,648)
----------------------------- ------------- ---------------- -------------
------------ ------------ ------------
----------------------------- ------------- ---------------- -------------
As at 31 December 2013 1,532,238 3,799,653 5,331,891
----------------------------- ------------- ---------------- -------------
------------ ------------ ------------
----------------------------- ------------- ---------------- -------------
Amortisation and impairment
----------------------------- ------------- ---------------- -------------
As at 1 January 2013 - 819,564 819,564
----------------------------- ------------- ---------------- -------------
Charge for the year - 118,652 118,652
----------------------------- ------------- ---------------- -------------
Impairment loss (refer note
12) - 23,871 23,871
----------------------------- ------------- ---------------- -------------
On disposals - (610) (610)
----------------------------- ------------- ---------------- -------------
On disposal of subsidiaries - (5,462) (5,462)
----------------------------- ------------- ---------------- -------------
Translation adjustment - (60,843) (60,843)
----------------------------- ------------- ---------------- -------------
----------- ---------- ----------
----------------------------- ------------- ---------------- -------------
As at 31 December 2013 - 895,172 895,172
----------------------------- ------------- ---------------- -------------
----------- ---------- ----------
----------------------------- ------------- ---------------- -------------
Net book value
----------------------------- ------------- ---------------- -------------
As at 31 December 2013 1,532,238 2,904,481 4,436,719
----------------------------- ------------- ---------------- -------------
======= ======= =======
----------------------------- ------------- ---------------- -------------
14 Goodwill and port concession rights (continued)
Port concession rights include concession agreements which are
mainly accounted for as part of business combinations and
acquisitions. These concessions were determined to have finite and
indefinite useful lives based on the terms of the respective
concession agreements and the income approach model was used for
the purpose of determining their fair values.
At 31 December 2013, port concession rights with a carrying
amount of USD 357,785 thousand (2012: USD 502,896 thousand) are
pledged to secure bank loans (refer to note 27).
Port Total
concession Intangible
Goodwill rights Assets
------------------------ -------------- -------------- --------------
USD'000 USD'000 USD'000
------------------------ -------------- -------------- --------------
Cost
------------------------ -------------- -------------- --------------
As at 1 January 2012 1,607,655 3,941,977 5,549,632
------------------------ -------------- -------------- --------------
Additions - 43,017 43,017
------------------------ -------------- -------------- --------------
Re-classification - (37,991) (37,991)
------------------------ -------------- -------------- --------------
Disposals (58,237) (1,613) (59,850)
------------------------ -------------- -------------- --------------
Translation adjustment 39,500 (10,742) 28,758
------------------------ -------------- -------------- --------------
------------- ------------- -------------
------------------------ -------------- -------------- --------------
As at 31 December 2012 1,588,918 3,934,648 5,523,566
------------------------ -------------- -------------- --------------
------------- ------------- -------------
------------------------ -------------- -------------- --------------
Amortisation
------------------------ -------------- -------------- --------------
As at 1 January 2012 - 718,019 718,019
------------------------ -------------- -------------- --------------
Charge for the year - 120,621 120,621
------------------------ -------------- -------------- --------------
On disposals - (1,332) (1,332)
------------------------ -------------- -------------- --------------
Translation adjustment - (17,744) (17,744)
------------------------ -------------- -------------- --------------
----------- ---------- ----------
------------------------ -------------- -------------- --------------
As at 31 December 2012 - 819,564 819,564
------------------------ -------------- -------------- --------------
----------- ---------- ----------
------------------------ -------------- -------------- --------------
Net book value
------------------------ -------------- -------------- --------------
As at 31 December 2012 1,588,918 3,115,084 4,704,002
------------------------ -------------- -------------- --------------
======== ======== ========
------------------------ -------------- -------------- --------------
15 Impairment testing
Goodwill acquired through business combinations and port
concession rights with indefinite useful lives have been allocated
to various cash-generating units ("CGU"), which are reportable
business units, for the purposes of impairment testing.
Impairment testing is done at operating port (or group of ports)
level that represents an individual CGU. Details of the CGUs by
operating segment are shown below:
Carrying Carrying Discount Perpetuity
amount of amount of rates growth
goodwill port concession rate
rights with
indefinite
useful life
----------------- ------------------------------- ------------------------------ ----------- -----------
2013 2012 2013 2012
----------------- -------------- --------------- ------------- --------------- ----------- -----------
USD'000 USD'000 USD'000 USD'000
----------------- -------------- --------------- ------------- --------------- ----------- -----------
Cash-generating
units
aggregated
by operating
segment
----------------- -------------- --------------- ------------- --------------- ----------- -----------
Asia Pacific
and Indian 7.00%
subcontinent 169,905 224,868 - - - 13.50% 2.50%
----------------- -------------- --------------- ------------- --------------- ----------- -----------
Australia 6.00%
and Americas 252,245 271,309 - - - 12.50% 2.50%
----------------- -------------- --------------- ------------- --------------- ----------- -----------
Middle East,
Europe and 6.00% 2.50%
Africa 1,110,088 1,092,741 1,043,125 1,030,134 - 16.50% - 2.60%
----------------- -------------- --------------- ------------- --------------- ----------- -----------
------------- -------------- ------------ --------------
----------------- -------------- --------------- ------------- --------------- ----------- -----------
Total 1,532,238 1,588,918 1,043,125 1,030,134
----------------- -------------- --------------- ------------- --------------- ----------- -----------
======== ======== ======= ========
----------------- -------------- --------------- ------------- --------------- ----------- -----------
The recoverable amount of the CGU has been determined based on
their value in use calculated using cash flow projections based on
the financial budgets approved by management covering a three year
period and a further outlook for five years, which is considered
appropriate in view of the outlook for the industry and the
long-term nature of the concession agreements held i.e. generally
for a period of 25-50 years.
Key assumptions used in value in use calculations
The followingdescribes each key assumption on which management
has based its cash flow projections to undertake impairment testing
of goodwill and port concession rights with indefinite useful
lives.
Budgeted margins - The basis used to determine the value
assigned to the budgeted margin is the average gross margin
achieved in the year immediately before the budgeted year, adjusted
for expected efficiency improvements, price fluctuations and
manpower costs.
Discount rates - These represent the cost of capital adjusted
for the respective location risk factors. The Group uses the
post-tax industry average Weighted Average Cost of Capital which
reflects the country specific risk adjusted discount rate.
Cost inflation - The forecast general price index is used to
determine the cost inflation during the budget year for the
relevant countries where the Group is operating.
Perpetuity growth rate - In management's view, the perpetuity
growth rate is the minimum growth rate expected to be achieved
beyond the eight year period. This is based on the overall regional
economic growth forecasted and the Group's existing internal
capacity changes for a given region. The Group also takes into
account competition and regional capacity growth to provide a
comprehensive growth assumption for the entire portfolio.
The values assigned to key assumptions are consistent with the
past experience of management.
Sensitivity to changes in assumptions
The calculation of value in use for the CGU is sensitive to
future earnings and therefore a sensitivity analysis was performed.
The analysis demonstrated that a 10% decrease in earnings for a
future period of three years from the reporting date would not
result in impairment.
16 Investment in equity-accounted investees
The following table summarises the segment wise financial
information for equity-accounted investees, adjusted for fair value
adjustments at acquisition and reconciled to the carrying amount of
Group's interest in equity-accounted investees as included in
consolidated statement of financial position:
Asia Pacific Australia and Middle East, Total
and Indian subcontinent Americas Europe and Africa
------------- ---------------------------- ----------------------------- ---------------------------- ------------------------------
2013 2012 2013 2012 2013 2012 2013 2012
------------- ------------- ------------- -------------- ------------- ------------- ------------- ------------- ---------------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
------------- ------------- ------------- -------------- ------------- ------------- ------------- ------------- ---------------
Cash and
cash
equivalents 350,997 326,968 105,483 192,294 204,675 153,073 661,155 672,335
------------- ------------- ------------- -------------- ------------- ------------- ------------- ------------- ---------------
Other
current
assets 185,851 188,286 137,905 181,577 176,657 171,652 500,413 541,515
------------- ------------- ------------- -------------- ------------- ------------- ------------- ------------- ---------------
Non-current
assets 9,395,336 8,068,891 2,802,062 2,861,185 2,651,225 2,389,594 14,848,623 13,319,670
------------- ------------- ------------- -------------- ------------- ------------- ------------- ------------- ---------------
------------ ------------ ------------- ------------ ------------ ------------ ------------ --------------
------------- ------------- ------------- -------------- ------------- ------------- ------------- ------------- ---------------
Total assets 9,932,184 8,584,145 3,045,450 3,235,056 3,032,557 2,714,319 16,010,191 14,533,520
------------- ------------- ------------- -------------- ------------- ------------- ------------- ------------- ---------------
======= ======= ======= ======= ======= ======= ======== ========
------------- ------------- ------------- -------------- ------------- ------------- ------------- ------------- ---------------
Current
financial
liabilities 89,567 218,337 31,599 - 38,253 18,349 159,419 236,686
------------- ------------- ------------- -------------- ------------- ------------- ------------- ------------- ---------------
Other
current
liabilities 627,011 448,035 184,462 168,232 197,706 191,073 1,009,179 807,340
------------- ------------- ------------- -------------- ------------- ------------- ------------- ------------- ---------------
Non-current
financial
liabilities 1,432,290 926,318 1,710,022 1,714,456 677,990 647,208 3,820,302 3,287,982
------------- ------------- ------------- -------------- ------------- ------------- ------------- ------------- ---------------
Other
non-current
liabilities 625,330 977,493 111,826 132,525 422,176 375,001 1,159,332 1,485,019
------------- ------------- ------------- -------------- ------------- ------------- ------------- ------------- ---------------
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
------------- ------------- ------------- -------------- ------------- ------------- ------------- ------------- ---------------
Total
liabilities 2,774,198 2,570,183 2,037,909 2,015,213 1,336,125 1,231,631 6,148,232 5,817,027
------------- ------------- ------------- -------------- ------------- ------------- ------------- ------------- ---------------
======= ======= ======= ====== ======= ======= ======= =======
------------- ------------- ------------- -------------- ------------- ------------- ------------- ------------- ---------------
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
------------- ------------- ------------- -------------- ------------- ------------- ------------- ------------- ---------------
Net assets
(100%) 7,157,986 6,013,962 1,007,541 1,219,843 1,696,432 1,482,688 9,861,959 8,716,493
------------- ------------- ------------- -------------- ------------- ------------- ------------- ------------- ---------------
======= ======= ======= ======= ======= ======= ======= =======
------------- ------------- ------------- -------------- ------------- ------------- ------------- ------------- ---------------
Group's share of net assets
in equity accounted investees 2,700,703 3,348,317
------------------------------------------- -------------- ------------- ------------- ------------- ------------- ---------------
======= =======
------------------------------------------- -------------- ------------- ------------- ------------- ------------- ---------------
16 Investment in equity-accounted investees (continued)
Asia Pacific Australia and Middle East, Total
and Indian subcontinent Americas Europe and Africa
-------------------- -------------------------- ------------------------ ------------------------ --------------------------
2013 2012 2013 2012 2013 2012 2013 2012
-------------------- ------------ ------------ ----------- ----------- ----------- ----------- ------------ ------------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
-------------------- ------------ ------------ ----------- ----------- ----------- ----------- ------------ ------------
Revenue 1,317,725 1,268,308 716,099 852,553 519,766 623,095 2,553,590 2,743,956
-------------------- ------------ ------------ ----------- ----------- ----------- ----------- ------------ ------------
Depreciation
and amortisation (335,663) (290,571) (41,044) (20,791) (68,973) (79,292) (445,680) (390,654)
-------------------- ------------ ------------ ----------- ----------- ----------- ----------- ------------ ------------
Other expenses (582,941) (538,756) (727,043) (810,758) (396,628) (409,409) (1,706,612) (1,758,923)
-------------------- ------------ ------------ ----------- ----------- ----------- ----------- ------------ ------------
Interest expense (139,974) (93,841) (88,091) (14,304) (27,183) (35,543) (255,248) (143,688)
-------------------- ------------ ------------ ----------- ----------- ----------- ----------- ------------ ------------
Other finance
income 48,731 31,498 32,911 930 1,752 6,498 83,394 38,926
-------------------- ------------ ------------ ----------- ----------- ----------- ----------- ------------ ------------
Income tax expense (111,840) (87,392) 28,247 (1,123) (6,435) (18,652) (90,028) (107,167)
-------------------- ------------ ------------ ----------- ----------- ----------- ----------- ------------ ------------
---------- ---------- --------- --------- --------- --------- ----------- -----------
-------------------- ------------ ------------ ----------- ----------- ----------- ----------- ------------ ------------
Net profit/ (loss) 196,038 289,246 (78,921) 6,507 22,299 86,697 139,416 382,450
-------------------- ------------ ------------ ----------- ----------- ----------- ----------- ------------ ------------
====== ====== ===== ===== ===== ===== ====== ======
-------------------- ------------ ------------ ----------- ----------- ----------- ----------- ------------ ------------
Group's share
of profit/ (loss)
(before separately
disclosed items) 90,107 110,853 (14,105) (973) 8,364 24,017 84,366 133,897
-------------------- ------------ ------------ ----------- ----------- ----------- ----------- ------------ ------------
===== ====== ===== === ==== ===== ===== ======
-------------------- ------------ ------------ ----------- ----------- ----------- ----------- ------------ ------------
Group's share of other comprehensive
income 17,772 (8,686)
------------------------------------------------ ----------- ----------- ----------- ----------- ------------ ------------
===== =====
------------------------------------------------ ----------- ----------- ----------- ----------- ------------ ------------
17 Other investments
2013 2012
---------------------------------- ---------- ----------
USD'000 USD'000
---------------------------------- ---------- ----------
Debt securities held to maturity
(refer to note a) 10,207 11,277
---------------------------------- ---------- ----------
Available-for-sale financial
assets (refer to note b) 52,716 49,556
---------------------------------- ---------- ----------
--------- ---------
---------------------------------- ---------- ----------
62,923 60,833
---------------------------------- ---------- ----------
===== =====
---------------------------------- ---------- ----------
(a) The movement in debt securities held to maturity mainly
relates to redemption of USD 1,055 thousand (2012: USD 1,538
thousand) during the year.
(b) Available-for-sale financial assets consist of an unquoted
investment in an Infrastructure Fund.
The movement schedule for these investments is as follows:
2013 2012
--------------------------------- ---------- ----------
USD'000 USD'000
--------------------------------- ---------- ----------
As at 1 January 49,556 60,378
--------------------------------- ---------- ----------
Return of capital during the
year - (10,690)
--------------------------------- ---------- ----------
Change in fair value recognised
in consolidated statement of
other comprehensive income 3,160 (132)
--------------------------------- ---------- ----------
--------- ---------
--------------------------------- ---------- ----------
As at 31 December 52,716 49,556
--------------------------------- ---------- ----------
===== =====
--------------------------------- ---------- ----------
18 Accounts receivable and prepayments
2013 2013 2013
---------------------------- --------------- ----------- -----------
Non-current Current Total
---------------------------- --------------- ----------- -----------
USD'000 USD'000 USD'000
---------------------------- --------------- ----------- -----------
Trade receivables (net)
(refer to note 30(a)(i)) - 270,074 270,074
---------------------------- --------------- ----------- -----------
Advances paid to suppliers - 36,483 36,483
---------------------------- --------------- ----------- -----------
Other receivables and
prepayments 65,253 263,067 328,320
---------------------------- --------------- ----------- -----------
Employee benefit assets
(refer to note 26) 372 - 372
---------------------------- --------------- ----------- -----------
Due from related parties
(refer to note 29) 115,485 111,070 226,555
---------------------------- --------------- ----------- -----------
---------- ---------- ----------
---------------------------- --------------- ----------- -----------
181,110 680,694 861,804
---------------------------- --------------- ----------- -----------
====== ====== ======
---------------------------- --------------- ----------- -----------
2012 2012 2012
---------------------------- ------------ ----------- -----------
Non-current Current Total
---------------------------- ------------ ----------- -----------
USD'000 USD'000 USD'000
---------------------------- ------------ ----------- -----------
Trade receivables (net) - 244,534 244,534
---------------------------- ------------ ----------- -----------
Advances paid to suppliers - 53,962 53,962
---------------------------- ------------ ----------- -----------
Other receivables and
prepayments 56,115 204,965 261,080
---------------------------- ------------ ----------- -----------
Employee benefit assets
(refer to note 26) 216 - 216
---------------------------- ------------ ----------- -----------
Due from related parties
(refer to note 29) 207,097 105,961 313,058
---------------------------- ------------ ----------- -----------
---------- ---------- ----------
---------------------------- ------------ ----------- -----------
263,428 609,422 872,850
---------------------------- ------------ ----------- -----------
====== ====== ======
---------------------------- ------------ ----------- -----------
The Group's exposure to credit and currency risks are disclosed
in note 30.
19 Bank balances and cash
2013 2012
--------------------------------- -------------- --------------
USD'000 USD'000
--------------------------------- -------------- --------------
Cash at banks and in hand 368,830 472,409
--------------------------------- -------------- --------------
Short-term deposits 2,151,205 1,362,752
--------------------------------- -------------- --------------
Deposits under lien 52,435 46,767
--------------------------------- -------------- --------------
------------- -------------
--------------------------------- -------------- --------------
Bank balances and cash 2,572,470 1,881,928
--------------------------------- -------------- --------------
Bank overdrafts (1,407) (195)
--------------------------------- -------------- --------------
------------ ------------
--------------------------------- -------------- --------------
Cash and cash equivalents for
consolidated statement of cash
flows 2,571,063 1,881,733
--------------------------------- -------------- --------------
======= =======
--------------------------------- -------------- --------------
Short-term deposits are made for varying periods between one day
and three months depending on the immediate cash requirements of
the Group and earn interest at the respective short-term deposit
market rates. Bank overdrafts are repayable on demand.
The deposits under lien are placed to collateralise some of the
borrowings of the Company's subsidiaries.
20 Share capital
The share capital of the Company as at 31 December was as
follows:
2013 2012
-------------------------------- ---------- ----------
USD'000 USD'000
-------------------------------- ---------- ----------
Authorised
-------------------------------- ---------- ----------
1,250,000,000 of USD 2.00 each 2,500,000 2,500,000
-------------------------------- ---------- ----------
======= ========
-------------------------------- ---------- ----------
Issued and fully paid
-------------------------------- ---------- ----------
830,000,000 of USD 2.00 each 1,660,000 1,660,000
-------------------------------- ---------- ----------
======= =======
-------------------------------- ---------- ----------
21 Reserves
Share premium
Share premium represents surplus received over and above the
nominal cost of the shares issued to the shareholders and forms
part of the shareholder equity. The reserve is not available for
distribution except in circumstances as stipulated by the law.
Shareholders' reserve
Shareholders' reserve forms part of the distributable reserves
of the Group.
Hedging reserve
The hedging reserve comprises the effective portion of the
cumulative net change in the fair value of the cash flow hedging
instruments related to hedge transactions that have not yet
occurred.
21 Reserves (continued)
Other reserves
The other reserves mainly include statutory reserves of
subsidiaries as required by applicable local legislations. This
reserve also includes the unrealised fair value changes on
available-for-sale investments.
Actuarial reserve
The actuarial reserve comprises the cumulative actuarial losses
recognised in consolidated statement of other comprehensive
income.
Translation reserve
The translation reserve comprises all foreign currency
differences arising from the translation of the financial
statements of foreign operations whose functional currencies are
different from that of the Group's presentation currency. It also
includes foreign exchange translation differences arising from
translation of goodwill and purchase price adjustments which are
denominated in foreign currencies at the Group level.
22 Non-controlling interests ('NCI')
The following table summarises the financial information for the
material NCI of the Group:
2013 2013 2013 2012 2012 2012
------------------------ -------------- ------------------- ----------- ------------- -------------- -----------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
------------------------ -------------- ------------------- ----------- ------------- -------------- -----------
Middle Other individually Gross Middle Other Gross
East, Europe immaterial Total East, individually Total
and Africa subsidiaries Europe immaterial
region * and Africa subsidiaries
region *
------------------------ -------------- ------------------- ----------- ------------- -------------- -----------
Balance sheet
information:
------------------------ -------------- ------------------- ----------- ------------- -------------- -----------
Non-current assets 497,259 487,189
------------------------ -------------- ------------------- ----------- ------------- -------------- -----------
Current assets 167,675 185,412
------------------------ -------------- ------------------- ----------- ------------- -------------- -----------
Non-current liabilities (171,342) (226,693)
------------------------ -------------- ------------------- ----------- ------------- -------------- -----------
Current liabilities (124,341) (106,449)
------------------------ -------------- ------------------- ----------- ------------- -------------- -----------
----------- ------------
------------------------ -------------- ------------------- ----------- ------------- -------------- -----------
Net assets (100%) 369,251 339,459
------------------------ -------------- ------------------- ----------- ------------- -------------- -----------
====== =======
------------------------ -------------- ------------------- ----------- ------------- -------------- -----------
Carrying amount of fair
value adjustments 304,490 289,834
------------------------ -------------- ------------------- ----------- ------------- -------------- -----------
------------ ------------
------------------------ -------------- ------------------- ----------- ------------- -------------- -----------
Total 673,741 629,293
------------------------ -------------- ------------------- ----------- ------------- -------------- -----------
------------ ---------- ---------- ------------ ---------- ----------
------------------------ -------------- ------------------- ----------- ------------- -------------- -----------
Carrying amount of NCI
as
at 31 December 372,018 103,723 475,741 346,901 317,092 663,993
------------------------ -------------- ------------------- ----------- ------------- -------------- -----------
======= ====== ====== ======= ====== ======
------------------------ -------------- ------------------- ----------- ------------- -------------- -----------
22 Non-controlling interests ('NCI') (continued)
2013 2013 2013 2012 2012 2012
-------------------------- --------------- ------------------- ---------- ------------ -------------- ----------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
-------------------------- --------------- ------------------- ---------- ------------ -------------- ----------
Other individually Gross Middle Other Gross
Middle immaterial Total East, individually Total
East, Europe subsidiaries Europe immaterial
and Africa * and Africa subsidiaries
region region *
-------------------------- --------------- ------------------- ---------- ------------ -------------- ----------
Income statement
information:
-------------------------- --------------- ------------------- ---------- ------------ -------------- ----------
Revenue 316,073 318,510
-------------------------- --------------- ------------------- ---------- ------------ -------------- ----------
Profit after tax 80,600 76,557
-------------------------- --------------- ------------------- ---------- ------------ -------------- ----------
Other comprehensive
income,
net of tax 12,204 (4,841)
-------------------------- --------------- ------------------- ---------- ------------ -------------- ----------
--------- ---------
-------------------------- --------------- ------------------- ---------- ------------ -------------- ----------
Total comprehensive
income
(100%), net of tax 92,804 71,716
-------------------------- --------------- ------------------- ---------- ------------ -------------- ----------
--------- ---------
-------------------------- --------------- ------------------- ---------- ------------ -------------- ----------
Profit allocated to NCI 51,418 30,734 82,152 50,327 27,774 78,101
-------------------------- --------------- ------------------- ---------- ------------ -------------- ----------
Other comprehensive
income
allocated to NCI 7,566 2,169 9,735 (1,546) 1,456 (90)
-------------------------- --------------- ------------------- ---------- ------------ -------------- ----------
--------- --------- --------- -------- -------- ---------
-------------------------- --------------- ------------------- ---------- ------------ -------------- ----------
Total comprehensive
income
attributable to NCI 58,984 32,903 91,887 48,781 29,230 78,011
-------------------------- --------------- ------------------- ---------- ------------ -------------- ----------
--------- --------- --------- -------- -------- ---------
-------------------------- --------------- ------------------- ---------- ------------ -------------- ----------
Cash flow statement
information:
-------------------------- --------------- ------------------- ---------- ------------ -------------- ----------
Cash flows from operating
activities 129,849 90,504
-------------------------- --------------- ------------------- ---------- ------------ -------------- ----------
Cash flows from investing
activities 42,663 11,895
-------------------------- --------------- ------------------- ---------- ------------ -------------- ----------
Cash flows from financing
activities 113,695 87,029
-------------------------- --------------- ------------------- ---------- ------------ -------------- ----------
Dividends paid to NCI 38,604 25,325
-------------------------- --------------- ------------------- ---------- ------------ -------------- ----------
===== =====
-------------------------- --------------- ------------------- ---------- ------------ -------------- ----------
* There are no material subsidiaries in the other operating
segments of the Group with NCI.
23 Dividends
2013 2012
--------------------------------- ---------- ----------
USD'000 USD'000
--------------------------------- ---------- ----------
Declared and paid during the
year:
--------------------------------- ---------- ----------
Final dividend 24 US cents per
share 199,200 199,200
--------------------------------- ---------- ----------
====== ======
--------------------------------- ---------- ----------
Proposed for approval at the
annual general meeting
--------------------------------- ---------- ----------
(not recognised as a liability
as at 31 December):
--------------------------------- ---------- ----------
Final dividend: 23 US cents per
share/
24 US cents per share 190,900 199,200
--------------------------------- ---------- ----------
====== ======
--------------------------------- ---------- ----------
24 Earnings per share
Basic earnings per share
The calculation of basic earnings per share is based on the
profit attributable to ordinary shareholders and the weighted
average number of ordinary shares outstanding.
2013 2012
--------------------------------------- ------------ -------------
USD'000 USD'000
--------------------------------------- ------------ -------------
(Restated)
--------------------------------------- ------------ -------------
Profit attributable to owners
of the Company
(after separately disclosed
items) - (a) 639,636 738,398
--------------------------------------- ------------ -------------
====== ======
--------------------------------------- ------------ -------------
Profit attributable to owners
of the Company
(before separately disclosed
items) - (b) 604,421 545,182
--------------------------------------- ------------ -------------
====== ======
--------------------------------------- ------------ -------------
Number Number
of shares of shares
--------------------------------------- ------------ -------------
Number of ordinary shares outstanding
as at 31 December - (c) 830,000,000 830,000,000
--------------------------------------- ------------ -------------
========= =========
--------------------------------------- ------------ -------------
24 Earnings per share (continued)
2013 2012
--------------------------------- ------ -----------
USD USD
--------------------------------- ------ -----------
(Restated)
--------------------------------- ------ -----------
Basic earnings per share after
--------------------------------- ------ -----------
separately disclosed items -
(US cents) - (a/c) 77.06 88.96
--------------------------------- ------ -----------
==== ====
--------------------------------- ------ -----------
Basic earnings per share before
--------------------------------- ------ -----------
separately disclosed items -
(US cents) - (b/c) 72.82 65.68
--------------------------------- ------ -----------
==== ====
--------------------------------- ------ -----------
The Company has no share options outstanding at the year end and
therefore the basic and diluted earnings per share are not
different.
25 Employees' end of service benefits
Movements in the provision recognised in the consolidated
statement of financial position are as follows:
2013 2012
-------------------------------- ---------- ----------
USD'000 USD'000
-------------------------------- ---------- ----------
As at 1 January 55,747 49,393
-------------------------------- ---------- ----------
Provision made during the year
* 11,961 11,522
-------------------------------- ---------- ----------
Amounts paid during the year (5,968) (5,168)
-------------------------------- ---------- ----------
--------- ---------
-------------------------------- ---------- ----------
As at 31 December 61,740 55,747
-------------------------------- ---------- ----------
===== =====
-------------------------------- ---------- ----------
* The provision for expatriate staff gratuities, included in
Employees' end of service benefits, is calculated in accordance
with the regulations of the Jebel Ali Free Zone Authority. This is
based on the liability that would arise if employment of all staff
were terminated at the reporting date.
The UAE government had introduced Federal Labour Law No.7 of
1999 for pension and social security. Under this Law, employers are
required to contribute 15% of the 'contribution calculation salary'
of those employees who are UAE nationals. These employees are also
required to contribute 5% of the 'contribution calculation salary'
to the scheme. The Group's contribution is recognised as an expense
in the consolidated income statement as incurred.
26 Pension and post-employment benefits
The Group participates in a number of pension schemes throughout
the world. The principal scheme is located in the UK (the "P&O
UK Scheme"). The P&O UK Scheme is a funded defined benefit
scheme and was closed to routine new members on 1 January 2002. The
pension fund is legally separated from the Group and managed by a
Trustee board. The assets of the scheme are managed on behalf of
the Trustee by independent fund managers.
The Group also operates a number of smaller defined benefit and
defined contribution schemes. In addition, the Group participates
in various industry multi-employer schemes, the most significant of
which is the Merchant Navy Officers' Pension Fund (the "MNOPF
Scheme") and is in the UK. These generally have assets held in
separate trustee administered funds which are legally separated
from the Group.
The board of a pension fund in the UK is required by law to act
in the best interests of the fund participants and is responsible
for setting certain policies (e.g. investment, contributions and
indexation policies) and determining recovery plans if
appropriate.
These defined benefit funds expose the Group to actuarial risks,
such as longevity risk, currency risk, interest rate risk and
market (investment) risk. In addition, certain multi-employer
industry schemes the Group can be exposed to a pro-rata share of
the credit risk of other participating employers.
Reconciliation of assets and liabilities recognised in the
consolidated statement of financial position
2013 2012
----------------------------------------- ----------- -----------
USD'000 USD'000
----------------------------------------- ----------- -----------
(Restated
*)
----------------------------------------- ----------- -----------
Non-current
----------------------------------------- ----------- -----------
Defined benefit schemes net liabilities 168,000 221,634
----------------------------------------- ----------- -----------
Liabilities from defined contribution
schemes 706 784
----------------------------------------- ----------- -----------
Liability in respect of long
service leave 700 600
----------------------------------------- ----------- -----------
---------- ----------
----------------------------------------- ----------- -----------
169,406 223,018
----------------------------------------- ----------- -----------
Current
----------------------------------------- ----------- -----------
Liability for current deferred
compensation 10,068 11,845
----------------------------------------- ----------- -----------
---------- ----------
----------------------------------------- ----------- -----------
Net liabilities 179,474 234,863
----------------------------------------- ----------- -----------
====== ======
----------------------------------------- ----------- -----------
Net liabilities
----------------------------------------- ----------- -----------
Reflected in the consolidated
statement of financial position
as follows:
----------------------------------------- ----------- -----------
Employee benefits assets
(included within non-current
receivables (refer to note 18) (372) (216)
----------------------------------------- ----------- -----------
Employee benefits liabilities:
Non-current 169,778 223,234
----------------------------------------- ----------- -----------
Employee benefits liabilities:
Current 10,068 11,845
----------------------------------------- ----------- -----------
---------- ----------
----------------------------------------- ----------- -----------
179,474 234,863
----------------------------------------- ----------- -----------
====== ======
----------------------------------------- ----------- -----------
* Refer to note 3 (f).
26 Pension and post-employment benefits (continued)
The defined benefit pension schemes net liabilities of USD
168,000 thousand (2012 Restated*: USD 221,634 thousand) is in
respect of the total Group schemes shown on page 66 and 67.
The current portion of employee benefits liabilities includes a
liability of USD 8,400 thousand (2012: USD 10,000 thousand) in
respect of annual leave, USD 1,200 thousand (2012: USD 1,600
thousand) in respect of long service leave, and USD 468 thousand
(2012: USD 245 thousand) in respect of sick leave and other
miscellaneous employee benefit items.
An expense of USD 30,354 thousand (2012 Restated*: USD 33,600
thousand) has been recognised in the consolidated income statement
for the long term employee benefit schemes. USD 7,200 thousand
(2012 Restated*: USD 7,000 thousand) in respect of defined benefit
schemes, USD 9,700 thousand (2012: USD 10,000 thousand) in respect
of defined contribution schemes and USD 13,454 thousand (2012: USD
16,600 thousand) in respect of other employee benefits.
A net finance cost of USD 8,100 thousand (2012 Restated*: USD
8,100 thousand) in respect of defined benefit funds has been
recognised in the consolidated income statement.
Total amount of actuarial losses gross of tax recognised in
consolidated statement of other comprehensive income.
2013 2012
--------------------------------------- ---------- ----------
USD'000 USD'000
--------------------------------------- ---------- ----------
(Restated
*)
--------------------------------------- ---------- ----------
Actuarial (gain)/ loss recognised
in the year (44,080) 36,169
--------------------------------------- ---------- ----------
Movement in minimum funding liability 5,200 (5,400)
--------------------------------------- ---------- ----------
--------- ---------
--------------------------------------- ---------- ----------
(38,880) 30,769
--------------------------------------- ---------- ----------
===== ======
--------------------------------------- ---------- ----------
* Refer to note 3 (f).
Actuarial valuations and assumptions
The latest valuations of the defined benefit schemes have been
updated to 31 December 2013 by qualified independent actuaries. The
principal assumptions are included in the table below.
The assumptions used by the actuaries are the best estimates
chosen from a range of possible actuarial assumptions, which, due
to the timescale covered, may not necessarily be borne out in
practice.
P&O UK MNOPF Other
scheme scheme schemes
-------------------------------------- -------- -------- ---------
2013 2013 2013
-------------------------------------- -------- -------- ---------
Discount rates 4.35% 4.35% 4.50%
-------------------------------------- -------- -------- ---------
Discount rates bulk annuity 4.20% - -
asset
-------------------------------------- -------- -------- ---------
Expected rates of salary
increases 2.50% - 1.90%
-------------------------------------- -------- -------- ---------
Pension increases: deferment 3.00% 2.60% 3.24%
-------------------------------------- -------- -------- ---------
payment 3.00% 3.45% 3.24%
-------------------------------------- -------- -------- ---------
Inflation 3.60% 3.60% 3.60%
-------------------------------------- -------- -------- ---------
===== ===== =====
-------------------------------------- -------- -------- ---------
26 Pension and post-employment benefits (continued)
Actuarial valuations and assumptions (continued)
P&O UK MNOPF Other
scheme scheme schemes
------------------------------------ -------- -------- ---------
2012 2012 2012
------------------------------------ -------- -------- ---------
Discount rates 4.15% 4.15% 4.40%
------------------------------------ -------- -------- ---------
Discount rates bulk annuity 4.00% - -
asset
------------------------------------ -------- -------- ---------
Expected rates of salary
increases 2.50% - 1.90%
------------------------------------ -------- -------- ---------
Pension increases: deferment 2.75% 2.20% 2.90%
------------------------------------ -------- -------- ---------
payment 2.75% 3.00% 2.90%
------------------------------------ -------- -------- ---------
Inflation 3.05% 3.05% 3.10%
------------------------------------ -------- -------- ---------
===== ===== =====
------------------------------------ -------- -------- ---------
From 1 December 2011, changes have been made to the benefits
provided by the P&O UK scheme. These include a restriction to
pay increases equal to the lower of Retail Price Index and 2.5% in
a Scheme Year. This restriction is reflected in the pay increase
assumption above and there is no allowance for promotional
increases.
The assumptions for pensioner longevity under both the P&O
UK scheme and the MNOPF scheme are based on an analysis of
pensioner death trends under the respective schemes over many
years.
For illustration, the life expectancies for the two schemes at
age 65 now and in the future are detailed in the table below.
Male Female
--------------- ----------------------- -----------------------
Age 65 Age 65 Age 65 Age 65
now in 20 years' now in 20 years'
time time
--------------- ------- -------------- ------- --------------
2013
--------------- ------- -------------- ------- --------------
P&O UK scheme 23.1 26.1 25.5 28.6
--------------- ------- -------------- ------- --------------
MNOPF scheme 22.5 25.3 26.1 29.0
--------------- ------- -------------- ------- --------------
=== === === ===
--------------- ------- -------------- ------- --------------
2012
--------------- ------- -------------- ------- --------------
P&O UK scheme 23.8 26.8 25.6 28.7
--------------- ------- -------------- ------- --------------
MNOPF scheme 22.0 24.5 25.9 28.2
--------------- ------- -------------- ------- --------------
=== === === ===
--------------- ------- -------------- ------- --------------
At 31 December 2013 the weighted average duration of the defined
benefit obligation was 16.2 years (2012: 16.4 years).
Reasonably possible changes to one of the actuarial assumptions,
holding other assumptions constant, would have increased the net
defined benefit liability as at 31 December 2013 by the amounts
shown below:
USD'000
--------------------------------------- ----------
0.1% reduction in discount rate 19,500
--------------------------------------- ----------
0.1% increase in inflation assumption
and related assumptions 8,400
--------------------------------------- ----------
0.25% p.a. increase in the long term
rate of mortality improvement 12,600
--------------------------------------- ----------
======
--------------------------------------- ----------
26 Pension and post-employment benefits (continued)
The schemes' strategic asset allocations across the sectors of
the main asset classes are:
Group
schemes
P&O UK MNOPF Other fair
scheme scheme schemes value
---------------------- ------------- ------------ ---------- -------------
USD'000 USD'000 USD'000 USD'000
---------------------- ------------- ------------ ---------- -------------
2013
---------------------- ------------- ------------ ---------- -------------
Equities 403,400 58,200 84,200 545,800
---------------------- ------------- ------------ ---------- -------------
Bonds 216,800 102,500 90,300 409,600
---------------------- ------------- ------------ ---------- -------------
Other 61,200 13,900 33,900 109,000
---------------------- ------------- ------------ ---------- -------------
Value of insured
pensioner liability 1,313,900 - - 1,313,900
---------------------- ------------- ------------ ---------- -------------
------------ ----------- --------- ------------
---------------------- ------------- ------------ ---------- -------------
1,995,300 174,600 208,400 2,378,300
---------------------- ------------- ------------ ---------- -------------
======= ====== ===== =======
---------------------- ------------- ------------ ---------- -------------
2012
---------------------- ------------- ------------ ---------- -------------
Equities 343,500 40,200 84,100 467,800
---------------------- ------------- ------------ ---------- -------------
Bonds 241,800 93,000 79,400 414,200
---------------------- ------------- ------------ ---------- -------------
Other 20,700 34,300 24,500 79,500
---------------------- ------------- ------------ ---------- -------------
Value of insured
pensioner liability 1,361,400 - - 1,361,400
---------------------- ------------- ------------ ---------- -------------
------------ ----------- --------- ------------
---------------------- ------------- ------------ ---------- -------------
1,967,400 167,500 188,000 2,322,900
---------------------- ------------- ------------ ---------- -------------
======= ====== ===== =======
---------------------- ------------- ------------ ---------- -------------
With the exception of the insured pensioner liability all
material investments have quoted prices in active markets.
Reconciliation of the opening and closing present value of
defined benefit obligations and fair value of scheme assets for the
period ended 31 December 2013:
Total
P&O MNOPF Other group
UK scheme schemes schemes
scheme
------------------------------- --------------- ------------ ------------- ---------------
USD'000 USD'000 USD'000 USD'000
------------------------------- --------------- ------------ ------------- ---------------
Present value of obligation
at 1 January 2013 (2,084,534) (217,000) (243,000) (2,544,534)
------------------------------- --------------- ------------ ------------- ---------------
Employer's interest
cost (81,300) (8,400) (10,300) (100,000)
------------------------------- --------------- ------------ ------------- ---------------
Employer's current service
cost (500) - (4,200) (4,700)
------------------------------- --------------- ------------ ------------- ---------------
Contributions by scheme
participants - - (1,100) (1,100)
------------------------------- --------------- ------------ ------------- ---------------
Effect of movement in
exchange rates (39,046) (4,300) (4,800) (48,146)
------------------------------- --------------- ------------ ------------- ---------------
Benefits paid 100,700 8,600 9,100 118,400
------------------------------- --------------- ------------ ------------- ---------------
Experience gains/ (loss)
on scheme liabilities 2,800 6,700 (3,300) 6,200
------------------------------- --------------- ------------ ------------- ---------------
Actuarial gain/ (loss)
on scheme liabilities
due to change in demographic
assumptions 44,880 (3,900) - 40,980
------------------------------- --------------- ------------ ------------- ---------------
Actuarial (loss)/ gains
scheme liabilities
due to change in financial
assumptions (11,600) 2,000 1,700 (7,900)
------------------------------- --------------- ------------ ------------- ---------------
-------------- ----------- ------------ --------------
------------------------------- --------------- ------------ ------------- ---------------
Present value of obligation
at 31 December 2013 (2,068,600) (216,300) (255,900) (2,540,800)
------------------------------- --------------- ------------ ------------- ---------------
======== ======= ======= ========
------------------------------- --------------- ------------ ------------- ---------------
26 Pension and post-employment benefits (continued)
Total
P&O UK MNOPF Other group
scheme scheme schemes schemes
--------------------------- ------------- ------------ ----------- -------------
USD'000 USD'000 USD'000 USD'000
--------------------------- ------------- ------------ ----------- -------------
Fair value of scheme
assets at 1 January
2013 1,967,400 167,500 188,000 2,322,900
--------------------------- ------------- ------------ ----------- -------------
Interest income on assets 76,900 6,700 8,300 91,900
--------------------------- ------------- ------------ ----------- -------------
Return on plan assets
(lesser)/ greater than
the
discount rate (300) (2,500) 7,600 4,800
--------------------------- ------------- ------------ ----------- -------------
Contributions by employer 13,400 8,000 8,600 30,000
--------------------------- ------------- ------------ ----------- -------------
Contributions by scheme
participants - - 1,100 1,100
--------------------------- ------------- ------------ ----------- -------------
Effect of movement in
exchange rates 40,600 3,700 4,200 48,500
--------------------------- ------------- ------------ ----------- -------------
Benefits paid (100,700) (8,600) (9,100) (118,400)
--------------------------- ------------- ------------ ----------- -------------
Administration costs
incurred during the
year (2,000) (200) (300) (2,500)
--------------------------- ------------- ------------ ----------- -------------
------------ ----------- ---------- ------------
--------------------------- ------------- ------------ ----------- -------------
Fair value of scheme
assets at
31 December 2013 1,995,300 174,600 208,400 2,378,300
--------------------------- ------------- ------------ ----------- -------------
======= ====== ====== =======
--------------------------- ------------- ------------ ----------- -------------
Defined benefit schemes
net liabilities (73,300) (41,700) (47,500) (162,500)
--------------------------- ------------- ------------ ----------- -------------
Minimum funding liability - (5,500) - (5,500)
--------------------------- ------------- ------------ ----------- -------------
----------- ----------- ---------- ------------
--------------------------- ------------- ------------ ----------- -------------
Net liability recognised
in the consolidated
statement of financial
position at 31 December
2013 (73,300) (47,200) (47,500) (168,000)
--------------------------- ------------- ------------ ----------- -------------
====== ====== ====== ======
--------------------------- ------------- ------------ ----------- -------------
26 Pension and post-employment benefits (continued)
Reconciliation of the opening and closing present value of
defined benefit obligations and fair value of scheme assets for the
period ended 31 December 2012:
P&O UK MNOPF Other Total
scheme scheme schemes group
schemes
-------------------------------- --------------- ------------ ------------- ---------------
USD'000 USD'000 USD'000 USD'000
-------------------------------- --------------- ------------ ------------- ---------------
(Restated*) (Restated*) (Restated*) (Restated*)
-------------------------------- --------------- ------------ ------------- ---------------
Present value of obligation
at 1 January 2012 (1,851,100) (188,400) (152,300) (2,191,800)
-------------------------------- --------------- ------------ ------------- ---------------
Employer's interest cost (85,400) (8,700) (7,600) (101,700)
-------------------------------- --------------- ------------ ------------- ---------------
Employer's current service
cost (500) - (4,000) (4,500)
-------------------------------- --------------- ------------ ------------- ---------------
Contributions by scheme
participants (200) - (1,300) (1,500)
-------------------------------- --------------- ------------ ------------- ---------------
Effect of movement in
exchange rates (85,165) (8,500) (7,500) (101,165)
-------------------------------- --------------- ------------ ------------- ---------------
Benefits paid 101,800 8,600 7,400 117,800
-------------------------------- --------------- ------------ ------------- ---------------
Amounts re-classified
from defined
contribution schemes - - (65,800) (65,800)
-------------------------------- --------------- ------------ ------------- ---------------
Experience losses on
scheme liabilities (30,000) (4,900) (1,600) (36,500)
-------------------------------- --------------- ------------ ------------- ---------------
Actuarial gain/ (loss)
on scheme liabilities - - - -
due to change in demographic
assumptions
-------------------------------- --------------- ------------ ------------- ---------------
Actuarial losses on scheme
liabilities due to change
in financial assumptions (133,969) (15,100) (10,300) (159,369)
-------------------------------- --------------- ------------ ------------- ---------------
-------------- ----------- ------------ --------------
-------------------------------- --------------- ------------ ------------- ---------------
Present value of obligation
at 31 December 2012 (2,084,534) (217,000) (243,000) (2,544,534)
-------------------------------- --------------- ------------ ------------- ---------------
======== ======= ======= ========
-------------------------------- --------------- ------------ ------------- ---------------
Total
P&O UK MNOPF Other group
scheme scheme schemes schemes
-------------------------------- --------------- ------------ ------------- ---------------
USD'000 USD'000 USD'000 USD'000
-------------------------------- --------------- ------------ ------------- ---------------
Fair value of scheme
assets at 1 January 2012 1,732,800 150,700 120,900 2,004,400
-------------------------------- --------------- ------------ ------------- ---------------
Interest income on assets 80,200 7,100 6,300 93,600
-------------------------------- --------------- ------------ ------------- ---------------
Return on plan assets
greater than the discount
rate 166,900 5,200 4,900 177,000
-------------------------------- --------------- ------------ ------------- ---------------
Contributions by employer 13,500 7,000 7,400 27,900
-------------------------------- --------------- ------------ ------------- ---------------
Contributions by scheme
participants 200 - 1,300 1,500
-------------------------------- --------------- ------------ ------------- ---------------
Effect of movement in
exchange rates 77,500 6,700 6,100 90,300
-------------------------------- --------------- ------------ ------------- ---------------
Benefits paid (101,800) (8,600) (7,400) (117,800)
-------------------------------- --------------- ------------ ------------- ---------------
Amounts reclassified
from defined
contribution schemes - - 48,500 48,500
-------------------------------- --------------- ------------ ------------- ---------------
Administration costs
incurred during the year (1,900) (600) - (2,500)
-------------------------------- --------------- ------------ ------------- ---------------
------------ ----------- ---------- ------------
-------------------------------- --------------- ------------ ------------- ---------------
Fair value of scheme
assets at 31 December
2012 1,967,400 167,500 188,000 2,322,900
-------------------------------- --------------- ------------ ------------- ---------------
======= ====== ====== =======
-------------------------------- --------------- ------------ ------------- ---------------
Defined benefit schemes
net liabilities )117,134( (49,500) (55,000) (221,634)
-------------------------------- --------------- ------------ ------------- ---------------
Minimum funding liability - - - -
-------------------------------- --------------- ------------ ------------- ---------------
----------- ----------- ---------- ------------
-------------------------------- --------------- ------------ ------------- ---------------
Net liability recognised
in the consolidated statement
of financial position
at 31 December 2012 )117,134) (49,500) (55,000) (221,634)
-------------------------------- --------------- ------------ ------------- ---------------
====== ====== ====== ======
-------------------------------- --------------- ------------ ------------- ---------------
* Refer to note 3 (f).
26 Pension and post-employment benefits (continued)
Where a surplus arises on a scheme in accordance with IAS19 and
IFRIC14, the surplus is recognised as an asset only if it
represents an unconditional economic benefit available to the Group
in the future. Any surplus in excess of this benefit is not
recognised in the statement of financial position. A minimum
funding liability arises where the statutory funding requirements
are such that future contributions in respect of past service will
result in a future unrecognisable surplus.
The below table shows the movement in minimum funding liability
on the MNOPF Scheme:-
2013 2012
-------------------------------- ---------- ----------
USD'000 USD'000
-------------------------------- ---------- ----------
(Restated
*)
-------------------------------- ---------- ----------
Minimum funding liability as
on 1 January - (5,400)
-------------------------------- ---------- ----------
Movement during the year (5,200) 5,400
-------------------------------- ---------- ----------
Effect of movement in exchange (300) -
rates
-------------------------------- ---------- ----------
--------- ---------
-------------------------------- ---------- ----------
Minimum funding liability as (5,500) -
on 31 December
-------------------------------- ---------- ----------
===== ======
-------------------------------- ---------- ----------
* Refer to note 3 (f).
It is anticipated that the Group will make the following
contributions to the pension schemes in 2014:
P&O UK MNOPF Other Total
scheme scheme schemes group
schemes
------------------------------ -------- -------- --------- ---------
USD'000 USD'000 USD'000 USD'000
------------------------------ -------- -------- --------- ---------
Pension scheme contributions 14,210 8,555 9,011 31,776
------------------------------ -------- -------- --------- ---------
===== ==== ==== =====
------------------------------ -------- -------- --------- ---------
P&O UK Scheme
Formal actuarial valuations of the P&O UK scheme are
normally carried out triennially by qualified independent
actuaries, the latest completed regular valuation report for the
scheme being at 31 March 2010, using the projected unit credit
method.
As a result of valuation P&O committed to regular monthly
deficit payments from April 2011 of USD 1,060 thousand until
November 2019.
In December 2007, as part of a process developed with the Group
to de-risk the pension scheme, the Trustee transferred USD
1,600,000 thousand of P&O UK Scheme assets to Paternoster (UK)
Ltd, in exchange for a bulk annuity insurance policy to ensure that
the assets (in the Company's statement of financial position and in
the Scheme) will always be equal to the current value of the
liability of the pensions in payment at 30 June 2007, thus removing
the funding risks for these liabilities.
Merchant Navy Officers' Pension Fund ("MNOPF")
The MNOPF Scheme is an industry wide multi-employer defined
benefit scheme in which officers employed by companies within the
Group have participated.
The scheme is divided into two sections, the Old Section and the
New Section, both of which are closed to new members.
26 Pension and post-employment benefits (continued)
Merchant Navy Officers' Pension Fund ("MNOPF") (continued)
The Old Section has been closed to benefit accrual since 1978.
The scheme's independent actuary advised that at 31 March 2012 the
market value of the scheme's assets for the Old Section was USD
2,129,729 thousand, representing approximately 100% of the value of
the benefits accrued to members. The assets of the Old Section were
substantially invested in bonds and a bulk insured annuity
contract.
The Group could not identify its share of the underlying assets
and liabilities of the Old Section on a consistent and reasonable
basis and is therefore accounting for contributions and payments to
the Old Section under IAS 19 as if it were a defined contribution
scheme.
The most recent formal actuarial valuation of the New Section
was carried out as at 31 March 2012.
Following the valuation, the Trustee and employers have agreed
contributions in addition to those arising from the 31 March 2003,
31 March 2006 and 31 March 2009 valuations which will be paid to
the Section by participating employers over the period to 30
September 2023. These contributions include an allowance for the
impact of irrecoverable contributions in respect of companies no
longer in existence or not able to pay their share. The Group's
aggregated outstanding contributions from these valuations are
payable as follows 2014 USD 8,555 thousand, 2015 to 2020 USD 6,752
thousand per annum and 2021 to 2023 USD 1,288 thousand per
annum.
The Trustee set the payment terms for each participating
employer in accordance with the Trustee's Contribution Collection
Policy which includes credit vetting.
The Group's share of the net deficit of the New Section at 31
December 2013 is estimated at 4.807%.
Merchant Navy Ratings' Pension Fund ("MNRPF")
The Merchant Navy Ratings' Pension Fund ("the MNRPF Scheme") is
an industry wide multi-employer defined benefit pension scheme in
which sea staff employed by companies within the Group have
participated. The scheme has a significant funding deficit and has
been closed to further benefit accrual.
The most recent formal actuarial valuation was carried out as at
31 March 2011.
Certain Group companies, which are no longer current employers
in the MNRPF, had settled their statutory debt obligation and were
not considered to have any legal obligation with respect to the
on-going deficit in the fund. However, following a legal challenge
by Stena Line Limited, the High Court decided that the Trustees
could require all employers that had ever participated in the
scheme to make contributions to fund the deficit. Although the
Group appealed the decision, it was not overturned.
The Trustees notified these Group companies of their estimated
share of the current deficit during December 2012 equating to 3.0%.
The method of deficit allocation and the associated recovery plan
has still to be approved by the court, however, based on this
initial indication the Group has provided for this liability after
an allowance for the impact of irrecoverable contributions in
respect of companies no longer in existence or not able to pay
their share. The net impact of USD 17,300 thousand (Restated) was
reflected as an actuarial movement in the consolidated statement of
other comprehensive income in 2012.
27 Interest bearing loans and borrowings
This note provides information about the terms of the Group's
interest-bearing loans and borrowings, which are measured at
amortised cost. Information about the Group's exposure to interest
rate, foreign currency and liquidity risk are described in note
30.
2013 2012
--------------------------- ------------- -------------
USD'000 USD'000
--------------------------- ------------- -------------
Non-current liabilities
--------------------------- ------------- -------------
Secured bank loans 1,056,613 669,322
--------------------------- ------------- -------------
Mortgage debenture stock 2,355 2,307
--------------------------- ------------- -------------
Unsecured loan stock 5,399 5,287
--------------------------- ------------- -------------
Unsecured bank loans 455,544 106,916
--------------------------- ------------- -------------
Unsecured bond issues 3,239,277 3,237,234
--------------------------- ------------- -------------
Finance lease liabilities 17,502 28,555
--------------------------- ------------- -------------
------------ ------------
--------------------------- ------------- -------------
4,776,690 4,049,621
--------------------------- ------------- -------------
------------ ------------
--------------------------- ------------- -------------
Current liabilities
--------------------------- ------------- -------------
Secured bank loans 202,209 203,111
--------------------------- ------------- -------------
Unsecured bank loans 42,886 484,909
--------------------------- ------------- -------------
Unsecured loans 3,867 3,719
--------------------------- ------------- -------------
Finance lease liabilities 9,365 11,096
--------------------------- ------------- -------------
---------- ----------
--------------------------- ------------- -------------
258,327 702,835
--------------------------- ------------- -------------
------------ ------------
--------------------------- ------------- -------------
Total 5,035,017 4,752,456
--------------------------- ------------- -------------
======= =======
--------------------------- ------------- -------------
27 Interest bearing loans and borrowings (continued)
Terms and debt repayment schedule
Terms and conditions of outstanding loans were as follows:
Nominal 2013
interest Year of Carrying
Currency Notes rate maturity Face value amount
-------------------- ------- ------------- ----------- ------------- -------------
USD'000 USD'000
-------------------- ------- ------------- ----------- ------------- -------------
Secured loans
-------------------- ------- ------------- ----------- ------------- -------------
2014-
USD Variable 2020 476,012 476,012
----------------------------- ------------- ----------- ------------- -------------
3% to 2019-
USD 8% 2022 42,786 42,786
----------------------------- ------------- ----------- ------------- -------------
2017-
EUR Variable 2023 88,117 88,117
----------------------------- ------------- ----------- ------------- -------------
PKR Variable 2019 68,976 68,976
----------------------------- ------------- ----------- ------------- -------------
ZAR 9.5% 2017 496 496
----------------------------- ------------- ----------- ------------- -------------
GBP Variable 2031 578,793 578,793
----------------------------- ------------- ----------- ------------- -------------
GBP 8.5% 2017 3,642 3,642
----------------------------- ------------- ----------- ------------- -------------
Unsecured
loans
-------------------- ------- ------------- ----------- ------------- -------------
SAR Variable 2017 15,178 15,178
----------------------------- ------------- ----------- ------------- -------------
CAD Variable 2018 135,224 135,224
----------------------------- ------------- ----------- ------------- -------------
INR Variable 2014-2019 64,136 64,136
----------------------------- ------------- ----------- ------------- -------------
USD Variable 2018 257,209 257,209
----------------------------- ------------- ----------- ------------- -------------
USD 4.14% 2024 26,683 26,683
----------------------------- ------------- ----------- ------------- -------------
Payable
EUR Variable on demand 2,667 2,667
----------------------------- ------------- ----------- ------------- -------------
Payable
USD 8% on demand 1,200 1,200
----------------------------- ------------- ----------- ------------- -------------
Mortgage debenture
stock
-------------------- ------- ------------- ----------- ------------- -------------
GBP 3.5% Undated 2,355 2,355
----------------------------- ------------- ----------- ------------- -------------
Unsecured
loan stock
-------------------- ------- ------------- ----------- ------------- -------------
GBP 7.5% Undated 5,399 5,399
----------------------------- ------------- ----------- ------------- -------------
Unsecured
Bond
-------------------- ------- ------------- ----------- ------------- -------------
USD 7.88% 2027 8,000 7,940
----------------------------- ------------- ----------- ------------- -------------
Unsecured
sukuk bonds
-------------------- ------- ------------- ----------- ------------- -------------
USD (a) * 2017 1,500,000 1,492,513
-------------------- ------- ------------- ----------- ------------- -------------
Unsecured
MTNs
-------------------- ------- ------------- ----------- ------------- -------------
USD (a) 6.85% 2037 1,750,000 1,738,824
-------------------- ------- ------------- ----------- ------------- -------------
Finance lease
liabilities
in various
currencies 1.13%-10.43% 2014-2054 26,867 26,867
----------------------------- ------------- ----------- ------------- -------------
------------ ------------
-------------------- ------- ------------- ----------- ------------- -------------
5,053,740 5,035,017
---------------------------- ------------- ----------- ------------- -------------
======= =======
---------------------------- ------------- ----------- ------------- -------------
* The profit rate on this Islamic Bond is 6.25%.
27 Interest bearing loans and borrowings (continued)
Terms and debt repayment schedule
Terms and conditions of outstanding loans were as follows:
Nominal 2012
interest Year of Carrying
Currency Notes rate maturity Face value amount
-------------------- ------- ---------- ------------ ------------- -------------
USD'000 USD'000
-------------------- ------- ---------- ------------ ------------- -------------
Secured loans
-------------------- ------- ---------- ------------ ------------- -------------
EGP Variable 2013 1,868 1,868
----------------------------- ---------- ------------ ------------- -------------
EUR Variable 2017-2023 103,353 103,353
----------------------------- ---------- ------------ ------------- -------------
GBP Variable 2031 119,846 119,846
----------------------------- ---------- ------------ ------------- -------------
GBP 8.5% 2017 18,000 18,000
----------------------------- ---------- ------------ ------------- -------------
HKD Variable 2015 837 837
----------------------------- ---------- ------------ ------------- -------------
INR Variable 2015-2017 39,820 39,820
----------------------------- ---------- ------------ ------------- -------------
PKR Variable 2018 76,345 76,345
----------------------------- ---------- ------------ ------------- -------------
USD 3%-8% 2017-2022 29,794 29,794
----------------------------- ---------- ------------ ------------- -------------
USD Variable 2013-2020 481,784 481,784
----------------------------- ---------- ------------ ------------- -------------
ZAR 9.5% 2017 786 786
----------------------------- ---------- ------------ ------------- -------------
Unsecured
loans
-------------------- ------- ---------- ------------ ------------- -------------
CAD Variable 2013 158,030 158,030
----------------------------- ---------- ------------ ------------- -------------
SAR Variable 2017 19,205 19,205
----------------------------- ---------- ------------ ------------- -------------
INR Variable 2014-2019 70,260 70,260
----------------------------- ---------- ------------ ------------- -------------
USD 4.14%-7% 2013-2024 29,330 29,330
----------------------------- ---------- ------------ ------------- -------------
USD 8% 2013 1,200 1,200
----------------------------- ---------- ------------ ------------- -------------
USD Variable 2013 315,000 315,000
----------------------------- ---------- ------------ ------------- -------------
EUR Variable 2013 2,519 2,519
----------------------------- ---------- ------------ ------------- -------------
Mortgage debenture
stock
-------------------- ------- ---------- ------------ ------------- -------------
GBP 3.5% undated 2,307 2,307
----------------------------- ---------- ------------ ------------- -------------
Unsecured
loan stock
-------------------- ------- ---------- ------------ ------------- -------------
GBP 7.5% undated 5,287 5,287
----------------------------- ---------- ------------ ------------- -------------
Unsecured
Bond
-------------------- ------- ---------- ------------ ------------- -------------
USD 7.88% 2027 8,000 7,935
----------------------------- ---------- ------------ ------------- -------------
Unsecured
sukuk bonds
-------------------- ------- ---------- ------------ ------------- -------------
USD (a) * 2017 1,500,000 1,490,661
-------------------- ------- ---------- ------------ ------------- -------------
Unsecured
MTNs
-------------------- ------- ---------- ------------ ------------- -------------
USD (a) 6.85% 2037 1,750,000 1,738,638
-------------------- ------- ---------- ------------ ------------- -------------
Finance lease
liabilities
in various 4.14%
currencies - 14% 2013-2054 39,651 39,651
----------------------------- ---------- ------------ ------------- -------------
------------ ------------
-------------------- ------- ---------- ------------ ------------- -------------
4,773,222 4,752,456
---------------------------- ---------- ------------ ------------- -------------
======= =======
---------------------------- ---------- ------------ ------------- -------------
* The profit rate on this Islamic Bond is 6.25%.
27 Interest bearing loans and borrowings (continued)
(a) The Group has issued conventional bond of USD 1,750,000
thousand as Medium Term Note and a Sukuk (Islamic Bond) of USD
1,500,000 thousand. The Medium Term note and Sukuk are currently
listed on Nasdaq Dubai and the London Stock Exchange (LSE).
Certain property, plant and equipment and port concession rights
are pledged against the facilities obtained from the banks (refer
to note 13 and note 14). The deposits under lien amounting to USD
48,507 thousand (2012: USD 46,767 thousand) are placed to
collateralise some of the borrowings of the Company's subsidiaries
(refer to note 19).
There has been no issuance or repayment of debt securities in
the current year (2012: Nil). At 31 December 2013, the undrawn
committed borrowing facilities of USD 1,506,129 thousand (2012: USD
1,897,511 thousand) were available to the Group, in respect of
which all conditions precedent had been met.
Finance lease liabilities
The Group classifies certain property, plant and equipment as
finance leases where it retains all risks and rewards incidental to
the ownership. The net carrying values of these assets are
disclosed in note 13.
Future minimum lease payments under finance leases together with
the present value of the net minimum lease payments are as
follows:
2013
-------------------- ---------------- ---------- ----------------
Present
value of
Future minimum minimum
lease payments Interest lease payments
-------------------- ---------------- ---------- ----------------
USD'000 USD'000 USD'000
-------------------- ---------------- ---------- ----------------
Less than one year 11,258 (1,894) 9,364
-------------------- ---------------- ---------- ----------------
Between one and
five years 17,929 (4,120) 13,809
-------------------- ---------------- ---------- ----------------
More than five
years 9,770 (6,076) 3,694
-------------------- ---------------- ---------- ----------------
-------- --------- ---------
-------------------- ---------------- ---------- ----------------
At 31 December 38,957 (12,090) 26,867
-------------------- ---------------- ---------- ----------------
===== ===== =====
-------------------- ---------------- ---------- ----------------
2012
-------------------- ---------------- ---------- ----------------
Present
value of
Future minimum minimum
lease payments Interest lease payments
-------------------- ---------------- ---------- ----------------
USD'000 USD'000 USD'000
-------------------- ---------------- ---------- ----------------
Less than one year 13,715 (2,619) 11,096
-------------------- ---------------- ---------- ----------------
Between one and
five years 25,938 (5,011) 20,927
-------------------- ---------------- ---------- ----------------
More than five
years 15,328 (7,700) 7,628
-------------------- ---------------- ---------- ----------------
-------- --------- ---------
-------------------- ---------------- ---------- ----------------
At 31 December 54,981 (15,330) 39,651
-------------------- ---------------- ---------- ----------------
===== ===== =====
-------------------- ---------------- ---------- ----------------
The finance leases do not contain any escalation clauses and do
not provide for contingent rents.
28 Accounts payable and accruals
2013
----------------------------- ------------ ------------- ------------
Non-current Current Total
----------------------------- ------------ ------------- ------------
USD'000 USD'000 USD'000
----------------------------- ------------ ------------- ------------
Trade payables - 146,359 146,359
----------------------------- ------------ ------------- ------------
Other payables and accruals 256,027 796,671 1,052,698
----------------------------- ------------ ------------- ------------
Provisions * 1,018 54,411 55,429
----------------------------- ------------ ------------- ------------
Fair value of derivative
financial instruments 24,201 28,170 52,371
----------------------------- ------------ ------------- ------------
Amounts due to related
parties
(refer to note 29) - 8,173 8,173
----------------------------- ------------ ------------- ------------
---------- ------------ -----------
----------------------------- ------------ ------------- ------------
As at 31 December 281,246 1,033,784 1,315,030
----------------------------- ------------ ------------- ------------
====== ======== =======
----------------------------- ------------ ------------- ------------
2012
----------------------------- ------------ ----------- -------------
Non-current Current Total
----------------------------- ------------ ----------- -------------
USD'000 USD'000 USD'000
----------------------------- ------------ ----------- -------------
Trade payables - 115,415 115,415
----------------------------- ------------ ----------- -------------
Other payables and accruals 384,248 642,625 1,026,873
----------------------------- ------------ ----------- -------------
Provisions * 499 41,000 41,499
----------------------------- ------------ ----------- -------------
Fair value of derivative
financial instruments 120,008 41,850 161,858
----------------------------- ------------ ----------- -------------
Amounts due to related
parties
(refer to note 29) - 13,182 13,182
----------------------------- ------------ ----------- -------------
---------- ---------- ------------
----------------------------- ------------ ----------- -------------
As at 31 December 504,755 854,072 1,358,827
----------------------------- ------------ ----------- -------------
====== ====== =======
----------------------------- ------------ ----------- -------------
* During the current year, additional provision of USD 41,940
thousand was made (2012: USD 33,451 thousand) and an amount of USD
28,010 thousand was utilised (2012: USD 18,700 thousand).
29 Related party transactions
For the purpose of these consolidated financial statements,
parties are considered to be related to the Group, if the Group has
the ability, directly or indirectly, to control the party or
exercise significant influence over it in making financial and
operating decisions, or vice versa, or where the Group and the
party are subject to common control or significant influence i.e.
part of the same Parent Group.
Related parties represent associated companies, shareholders,
directors and key management personnel of the Group, the Parent
Company, Ultimate Parent Company (Dubai World Corporation) and
entities jointly controlled or significantly influenced by such
parties. Pricing policies and terms of these transactions are
approved by the Group's management. The terms and conditions of the
related party transactions were made on an arm's length basis.
The Ultimate Parent Company operates a Shared Services Unit
("SSU") which recharges the proportionate costs of services
provided to the Group. SSU also processes the payroll for the
Company and certain subsidiaries and recharges the respective
payroll costs.
29 Related party transactions (continued)
Transactions with related parties included in the consolidated
financial statements are as follows:
Equity- Other
accounted related 2013
investees parties Total
----------------------- ----------- --------- --------
USD'000 USD'000 USD'000
----------------------- ----------- --------- --------
Expenses charged:
----------------------- ----------- --------- --------
Concession fee - 48,169 48,169
----------------------- ----------- --------- --------
Shared services - - -
----------------------- ----------- --------- --------
Other services - 30,574 30,574
----------------------- ----------- --------- --------
Revenue earned:
----------------------- ----------- --------- --------
Management fee income 19,946 - 19,946
----------------------- ----------- --------- --------
Liabilities settled
and recharged: - 2,877 2,877
----------------------- ----------- --------- --------
===== ===== =====
----------------------- ----------- --------- --------
Equity- Other
accounted related 2012
investees parties Total
----------------------- ----------- --------- --------
USD'000 USD'000 USD'000
----------------------- ----------- --------- --------
Expenses charged:
----------------------- ----------- --------- --------
Concession fee - 48,169 48,169
----------------------- ----------- --------- --------
Shared services - 2,354 2,354
----------------------- ----------- --------- --------
Other services - 29,249 29,249
----------------------- ----------- --------- --------
Revenue earned:
----------------------- ----------- --------- --------
Management fee income 24,889 - 24,889
----------------------- ----------- --------- --------
===== ===== =====
----------------------- ----------- --------- --------
Balances with related parties included in the consolidated
statement of financial position are as follows:
Due from related Due to related
parties parties
------------------ ------------------------ ---------------------
2013 2012 2013 2012
------------------ ----------- ----------- --------- ----------
USD'000 USD'000 USD'000 USD'000
------------------ ----------- ----------- --------- ----------
Ultimate Parent
Company 2,114 1,871 377 194
------------------ ----------- ----------- --------- ----------
Parent Company 54,304 53,450 - -
------------------ ----------- ----------- --------- ----------
Equity-accounted
investees 145,755 232,973 57 124
------------------ ----------- ----------- --------- ----------
Other related
parties 24,382 24,764 7,739 12,864
------------------ ----------- ----------- --------- ----------
---------- ---------- -------- ---------
------------------ ----------- ----------- --------- ----------
226,555 313,058 8,173 13,182
------------------ ----------- ----------- --------- ----------
====== ====== ===== =====
------------------ ----------- ----------- --------- ----------
Guarantees issued on behalf of equity-accounted investees amount
to USD 81,401 thousand (2012: USD 98,720 thousand).
29 Related party transactions (continued)
Compensation of key management personnel
The remuneration of directors and other key members of the
management during the year were as follows:
2013 2012
------------------------------- -------- --------
USD'000 USD'000
------------------------------- -------- --------
Short-term benefits and bonus 9,543 8,135
------------------------------- -------- --------
Post-retirement benefits 702 720
------------------------------- -------- --------
------- -------
------------------------------- -------- --------
10,245 8,855
------------------------------- -------- --------
==== ====
------------------------------- -------- --------
30 Financial instruments
(a) Credit risk
(i) Exposure to credit risk
The carrying amount of financial assets represents the maximum
credit exposure. The maximum exposure to credit risk at the
reporting date was as follows:
2013 2012
------------------------------------- ------------- -------------
USD'000 USD'000
------------------------------------- ------------- -------------
Available-for-sale financial assets 52,716 49,556
------------------------------------- ------------- -------------
Debt securities held to maturity 10,207 11,277
------------------------------------- ------------- -------------
Derivative financial assets 1,685 -
------------------------------------- ------------- -------------
Loans and receivables 669,405 693,705
------------------------------------- ------------- -------------
Bank balances 2,572,470 1,881,928
------------------------------------- ------------- -------------
------------ ------------
------------------------------------- ------------- -------------
3,306,483 2,636,466
------------------------------------- ------------- -------------
======= =======
------------------------------------- ------------- -------------
The maximum exposure to credit risk for trade receivables (net)
at the reporting date by operating segments is as follows:
30 Financial instruments (continued)
(a) Credit risk (continued)
(i) Exposure to credit risk (continued)
2013 2012
-------------------------------------- ----------- -----------
USD'000 USD'000
-------------------------------------- ----------- -----------
Asia Pacific and Indian subcontinent 21,288 17,758
-------------------------------------- ----------- -----------
Australia and Americas 41,323 39,996
-------------------------------------- ----------- -----------
Middle East, Europe and Africa 207,463 186,780
-------------------------------------- ----------- -----------
---------- ----------
-------------------------------------- ----------- -----------
270,074 244,534
-------------------------------------- ----------- -----------
====== ======
-------------------------------------- ----------- -----------
The ageing of trade receivables (net) at the reporting date
was:
2013 2012
---------------------------------- ----------- -----------
USD'000 USD'000
---------------------------------- ----------- -----------
Neither past due nor impaired on
the reporting date: 168,120 174,112
---------------------------------- ----------- -----------
Past due on the reporting date
---------------------------------- ----------- -----------
Past due 0-30 days 81,384 60,440
---------------------------------- ----------- -----------
Past due 31-60 days 16,911 7,526
---------------------------------- ----------- -----------
Past due 61-90 days 2,456 1,328
---------------------------------- ----------- -----------
Past due > 90 days 1,203 1,128
---------------------------------- ----------- -----------
---------- ----------
---------------------------------- ----------- -----------
270,074 244,534
---------------------------------- ----------- -----------
====== ======
---------------------------------- ----------- -----------
The Group believes that the unimpaired amounts that are past due
by more than 30 days are still collectible, based on the historic
collection trends.
Movement in the allowance for impairment in respect of trade
receivables during the year was:
2013 2012
--------------------------------- --------- ---------
USD'000 USD'000
--------------------------------- --------- ---------
As at 1 January 38,920 35,954
--------------------------------- --------- ---------
Provision recognised during the
year 8,379 2,966
--------------------------------- --------- ---------
-------- --------
--------------------------------- --------- ---------
As at 31 December 47,299 38,920
--------------------------------- --------- ---------
===== =====
--------------------------------- --------- ---------
Based on historic default rates, the Group believes that, apart
from the above, no impairment allowance is necessary in respect of
trade receivables not past due or past due.
Trade receivables with the top ten customers represent 47%
(2012: 45%) of the trade receivables.
DP World Limited and its subsidiaries
Notes to consolidated financial statements (continued)
30 Financial instruments (continued)
(b) Liquidity risk
2013
The following are the undiscounted contractual maturities of
financial liabilities, including estimated interest payments and
the impact of netting agreements.
Carrying Contractual Less than 1 - 2 2 - 5 More than
amount cash flows 1 year years years 5 years
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Non derivative financial
liabilities
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Secured bank loans 1,258,822 (1,679,351) (197,180) (207,770) (490,221) (784,180)
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Unsecured bond issues 3,239,277 (6,412,886) (214,255) (214,255) (2,002,661) (3,981,715)
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Mortgage debenture
stocks 2,355 (4,496) (82) (82) (247) (4,085)
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Unsecured loans and loan
stock 9,266 (19,795) (4,272) (405) (1,215) (13,903)
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Finance lease
liabilities 26,867 (38,957) (11,258) (9,580) (8,349) (9,770)
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Unsecured other bank
loans 498,430 (556,793) (80,985) (56,606) (395,097) (24,105)
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Trade and other payables 1,200,037 (1,223,934) (944,011) (110,067) (112,038) (57,818)
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Bank overdraft 1,407 (1,407) (1,407) - - -
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Financial guarantees and - (316,834) - - - -
letters of credit*
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Derivative financial
liabilities
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Interest rate swaps 51,953 (140,288) (36,730) (33,322) (59,567) (10,669)
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Forward exchange
contracts 418 (534) (381) (131) (22) -
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
------------ ------------- ------------- ----------- ------------- -------------
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Total 6,288,832 (10,395,275) (1,490,561) (632,218) (3,069,417) (4,886,245)
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
======= ======= ======= ====== ======= =======
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
* Refer to note 33 for further details.
DP World Limited and its subsidiaries
Notes to consolidated financial statements (continued)
30 Financial instruments (continued)
(b) Liquidity risk (continued)
2013
The following table indicates the periods in which the
undiscounted cash flows associated with derivatives that are
expected to occur. The timing of these cash flows are not
materially different from the impact on the consolidated income
statement.
Carrying Expected Less than 1 - 2 2 - 5 More than
amount cash flows 1 years years 5
year years
---------------------------- ---------- ------------ ---------- ---------- ---------- ----------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
---------------------------- ---------- ------------ ---------- ---------- ---------- ----------
Interest rate swaps
---------------------------- ---------- ------------ ---------- ---------- ---------- ----------
Assets 1,685 (349) (129) (95) (125) -
---------------------------- ---------- ------------ ---------- ---------- ---------- ----------
Liabilities (51,953) (140,288) (36,730) (33,322) (59,567) (10,669)
---------------------------- ---------- ------------ ---------- ---------- ---------- ----------
Forward exchange contracts
---------------------------- ---------- ------------ ---------- ---------- ---------- ----------
Assets - - - - - -
---------------------------- ---------- ------------ ---------- ---------- ---------- ----------
Liabilities (418) (534) (381) (131) (22) -
---------------------------- ---------- ------------ ---------- ---------- ---------- ----------
--------- --------- --------- --------- --------- --------
---------------------------- ---------- ------------ ---------- ---------- ---------- ----------
Total (50,686) (141,171) (37,240) (33,548) (59,714) (10,669)
---------------------------- ---------- ------------ ---------- ---------- ---------- ----------
===== ===== ===== ===== ===== =====
---------------------------- ---------- ------------ ---------- ---------- ---------- ----------
DP World Limited and its subsidiaries
Notes to consolidated financial statements (continued)
30 Financial instruments (continued)
(b) Liquidity risk (continued)
2012
The following are the undiscounted contractual maturities of
financial liabilities, including estimated interest payments and
includes the impact of netting agreements.
Carrying Contractual Less than 1 - 2 2 - 5 More than
amount cash flows 1 year years years 5 years
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Non derivative financial
liabilities
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Secured bank loans 872,433 (1,120,723) (169,021) (171,607) (513,525) (266,570)
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Unsecured bond issues 3,237,234 (6,627,141) (214,255) (214,255) (2,096,411) (4,102,220)
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Mortgage debenture
stocks 2,307 (4,405) (81) (81) (242) (4,001)
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Unsecured loans and loan
stock 9,006 (19,472) (4,268) (397) (1,190) (13,617)
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Finance lease
liabilities 39,651 (54,981) (13,715) (11,645) (14,293) (15,328)
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Unsecured syndicate bank - - - - - -
loans
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Unsecured other bank
loans 591,825 (634,830) (509,236) (55,643) (40,435) (29,516)
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Trade and other payables 635,824 (644,505) (251,576) (109,422) (254,830) (28,677)
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Bank overdraft 195 (195) (195) - - -
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Financial guarantees and - (267,667) - - - -
letters of credit*
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Derivative financial
liabilities
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Interest rate swaps 161,823 (238,381) (41,096) (36,399) (87,129) (73,757)
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Forward exchange
contracts 35 192 192 - - -
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
------------ ------------- ------------- ----------- ------------- -------------
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
Total 5,550,333 (9,612,108) (1,203,251) (599,449) (3,008,055) (4,533,686)
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
======= ======= ======= ====== ======= =======
------------------------- ------------- -------------- -------------- ------------ -------------- --------------
* Refer to note 33 for further details.
DP World Limited and its subsidiaries
Notes to consolidated financial statements (continued)
30 Financial instruments (continued)
(b) Liquidity risk (continued)
2012
The following table indicates the periods in which the
undiscounted cash flows associated with derivatives that are
expected to occur. The timing of these cash flows are not
materially different from the impact on the consolidated income
statement.
Carrying Expected Less than 1 - 2 2 - 5 More than
amount cash flows 1 years years 5
year years
---------------------------- ---------- ------------ ---------- ---------- ---------- ----------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
---------------------------- ---------- ------------ ---------- ---------- ---------- ----------
Interest rate swaps
---------------------------- ---------- ------------ ---------- ---------- ---------- ----------
Liabilities (161,823) (238,381) (41,096) (36,399) (87,129) (73,757)
---------------------------- ---------- ------------ ---------- ---------- ---------- ----------
Forward exchange contracts
---------------------------- ---------- ------------ ---------- ---------- ---------- ----------
Liabilities (35) 192 192 - - -
---------------------------- ---------- ------------ ---------- ---------- ---------- ----------
--------- ---------- --------- --------- --------- --------
---------------------------- ---------- ------------ ---------- ---------- ---------- ----------
Total (161,858) (238,189) (40,904) (36,399) (87,129) (73,757)
---------------------------- ---------- ------------ ---------- ---------- ---------- ----------
====== ======= ===== ===== ===== =====
---------------------------- ---------- ------------ ---------- ---------- ---------- ----------
DP World Limited and its subsidiaries
Notes to consolidated financial statements (continued)
30 Financial instruments (continued)
(c) Market risk
(i) Currency risk
Exposure to currency risk
The Group's financial instruments in different currencies were
as follows:
2013
-------------- ------------ ------------ ----------- ---------- ----------- ----------- ----------- --------------
USD * GBP EUR AUD INR CAD Others Total
-------------- ------------ ------------ ----------- ---------- ----------- ----------- ----------- --------------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
-------------- ------------ ------------ ----------- ---------- ----------- ----------- ----------- --------------
Bank balances
and
cash 2,260,973 79,415 111,145 21,262 1,856 26,600 71,219 2,572,470
-------------- ------------ ------------ ----------- ---------- ----------- ----------- ----------- --------------
Trade
receivables 160,500 26,027 31,167 8,400 15,730 13,100 15,150 270,074
-------------- ------------ ------------ ----------- ---------- ----------- ----------- ----------- --------------
Secured bank
loans
and mortgage
debenture
stock (518,797) (584,789) (88,117) - - - (69,474) (1,261,177)
-------------- ------------ ------------ ----------- ---------- ----------- ----------- ----------- --------------
Unsecured
bank loans
and loan
stock (285,092) (5,399) (2,667) - (64,136) (135,224) (15,178) (507,696)
-------------- ------------ ------------ ----------- ---------- ----------- ----------- ----------- --------------
Bank
overdraft - (1,407) - - - - - (1,407)
-------------- ------------ ------------ ----------- ---------- ----------- ----------- ----------- --------------
Trade
payables (51,151) (44,160) (22,377) (2,300) (19,601) (1,700) (5,070) (146,359)
-------------- ------------ ------------ ----------- ---------- ----------- ----------- ----------- --------------
---------- --------- --------- --------- ---------- ---------- -------- ----------
-------------- ------------ ------------ ----------- ---------- ----------- ----------- ----------- --------------
Net
consolidated
statement of
financial
position
exposures 1,566,433 (530,313) 29,151 27,362 (66,151) (97,224) (3,353) 925,905
-------------- ------------ ------------ ----------- ---------- ----------- ----------- ----------- --------------
====== ===== ===== ===== ====== ====== ===== ======
-------------- ------------ ------------ ----------- ---------- ----------- ----------- ----------- --------------
* The functional currency of the Company is UAE Dirham. UAE
Dirham is currently pegged to USD and therefore the Group has no
foreign currency risk on these balances.
DP World Limited and its subsidiaries
Notes to consolidated financial statements (continued)
30 Financial instruments (continued)
(c) Market risk (continued)
(i) Currency risk (continued)
Exposure to currency risk (continued)
The Group's financial instruments in different currencies were
as follows:
2012
-------------- ------------ ------------ ------------ ---------- ------------ ------------ ----------- ------------
USD * GBP EUR AUD INR CAD Others Total
-------------- ------------ ------------ ------------ ---------- ------------ ------------ ----------- ------------
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
-------------- ------------ ------------ ------------ ---------- ------------ ------------ ----------- ------------
Bank balances
and
cash 1,508,112 77,411 162,594 32,751 14,634 21,700 64,726 1,881,928
-------------- ------------ ------------ ------------ ---------- ------------ ------------ ----------- ------------
Trade
receivables 145,088 21,700 31,731 4,000 7,676 15,500 18,839 244,534
-------------- ------------ ------------ ------------ ---------- ------------ ------------ ----------- ------------
Secured bank
loans
and mortgage
debenture
stock (534,568) (126,237) (103,353) - (39,820) - (70,762) (874,740)
-------------- ------------ ------------ ------------ ---------- ------------ ------------ ----------- ------------
Unsecured
bank loans
and loan
stock (345,531) (5,287) (2,519) - (70,260) (158,030) (19,204) (600,831)
-------------- ------------ ------------ ------------ ---------- ------------ ------------ ----------- ------------
Bank
overdraft - - - - (195) - - (195)
-------------- ------------ ------------ ------------ ---------- ------------ ------------ ----------- ------------
Trade
payables (36,597) (15,900) (25,542) (2,100) (24,168) (2,300) (8,808) (115,415)
-------------- ------------ ------------ ------------ ---------- ------------ ------------ ----------- ------------
---------- --------- --------- --------- ---------- ---------- -------- ----------
-------------- ------------ ------------ ------------ ---------- ------------ ------------ ----------- ------------
Net
consolidated
statement of
financial
position
exposures 736,504 (48,313) 62,911 34,651 (112,133) (123,130) (15,209) 535,281
-------------- ------------ ------------ ------------ ---------- ------------ ------------ ----------- ------------
====== ===== ===== ===== ====== ====== ===== ======
-------------- ------------ ------------ ------------ ---------- ------------ ------------ ----------- ------------
* The functional currency of the Company is UAE Dirham. UAE
Dirham is currently pegged to USD and therefore the Group has no
foreign currency risk on these balances.
30 Financial instruments (continued)
(c) Market risk (continued)
(i) Currency risk (continued)
The following significant exchange rates applied during the
year:
Average rate Reporting
during date
spot rate
----- ---------------- ----------------
2013 2012 2013 2012
----- ------- ------- ------- -------
GBP 0.640 0.631 0.605 0.618
----- ------- ------- ------- -------
EUR 0.753 0.778 0.726 0.757
----- ------- ------- ------- -------
AUD 1.036 0.966 1.119 0.964
----- ------- ------- ------- -------
INR 58.510 53.361 61.922 54.898
----- ------- ------- ------- -------
CAD 1.030 0.999 1.064 0.996
----- ------- ------- ------- -------
(ii) Sensitivity analysis
A 10 percent strengthening of the USD against the following
currencies at 31 December would have increased/ (decreased)
consolidated income statement and consolidated statement of other
comprehensive income by the amounts shown below. This analysis
assumes that all other variables, in particular interest rates,
remain constant. Furthermore, as each entity in the Group
determines its own functional currency, the effect of translating
financial assets and liabilities of the respective entity would
mainly impact consolidated statement of other comprehensive
income.
Consolidated
statement
Consolidated of other comprehensive
income statement income
----- --------------------- --------------------------
USD'000 USD'000 USD'000 USD'000
----- ----------- -------- ------------ ------------
2013 2012 2013 2012
----- ----------- -------- ------------ ------------
GBP 449 7,349 (58,924) (5,368)
----- ----------- -------- ------------ ------------
EUR 431 1,584 3,239 6,990
----- ----------- -------- ------------ ------------
AUD (7) - 3,040 3,850
----- ----------- -------- ------------ ------------
INR 967 3,557 (7,350) (12,459)
----- ----------- -------- ------------ ------------
CAD 598 1,193 (10,803) (13,681)
----- ----------- -------- ------------ ------------
A 10 percent weakening of the USD against the above currencies
at 31 December would have had the equal but opposite effect on the
above currencies to the amounts shown above, on the basis that all
other variables remain constant.
30 Financial instruments (continued)
(c) Market risk (continued)
(ii) Interest rate risk
(i) Profile
At the reporting date the interest rate profile of the Group's
interest bearing financial instruments was:
Carrying amount
--------------------------- ----------------------------
2013 2012
--------------------------- ------------- -------------
USD'000 USD'000
--------------------------- ------------- -------------
Fixed rate instruments
--------------------------- ------------- -------------
Financial assets 10,207 11,277
--------------------------- ------------- -------------
Financial liabilities (3,348,705) (3,285,137)
--------------------------- ------------- -------------
Interest rate swaps (1,170,471) (925,243)
--------------------------- ------------- -------------
------------ ------------
--------------------------- ------------- -------------
(4,508,969) (4,199,103)
--------------------------- ------------- -------------
======== =======
--------------------------- ------------- -------------
Variable rate instruments
--------------------------- ------------- -------------
Financial assets 2,151,205 1,362,752
--------------------------- ------------- -------------
Financial liabilities (1,687,719) (1,467,514)
--------------------------- ------------- -------------
Interest rate swaps 1,170,471 925,243
--------------------------- ------------- -------------
------------ ----------
--------------------------- ------------- -------------
1,633,957 820,481
--------------------------- ------------- -------------
======= ======
--------------------------- ------------- -------------
(ii) Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points ("bp") in interest rates at the
reporting date would have increased/ (decreased) consolidated
income statement and consolidated statement of other comprehensive
income by the amounts shown below. This analysis assumes that all
other variables, in particular foreign currency rates, remain
constant.
Consolidated Consolidated
income statement statement of
other comprehensive
income
--------------------------- -------------------- -----------------------
100 bp 100 bp 100 bp 100 bp
--------------------------- --------- --------- ----------- ----------
increase decrease increase decrease
--------------------------- --------- --------- ----------- ----------
USD'000 USD'000 USD'000 USD'000
--------------------------- --------- --------- ----------- ----------
2013
--------------------------- --------- --------- ----------- ----------
Variable rate instruments 16,340 (16,340) - -
--------------------------- --------- --------- ----------- ----------
Interest rate swaps 1,745 (1,745) 13,449 (13,449)
--------------------------- --------- --------- ----------- ----------
-------- -------- -------- --------
--------------------------- --------- --------- ----------- ----------
Cash flow sensitivity
(net) 18,085 (18,085) 13,449 (13,449)
--------------------------- --------- --------- ----------- ----------
===== ===== ===== =====
--------------------------- --------- --------- ----------- ----------
2012
--------------------------- --------- --------- ----------- ----------
Variable rate instruments 8,205 (8,205) - -
--------------------------- --------- --------- ----------- ----------
Interest rate swaps 741 (741) 10,489 (10,489)
--------------------------- --------- --------- ----------- ----------
------- ------- ------- -------
--------------------------- --------- --------- ----------- ----------
Cash flow sensitivity
(net) 8,946 (8,946) 10,489 (10,489)
--------------------------- --------- --------- ----------- ----------
==== ===== ==== ====
--------------------------- --------- --------- ----------- ----------
30 Financial instruments (continued)
(d) Fair values
Fair values versus carrying amounts
The fair values of financial assets and liabilities, together
with the carrying amounts shown in the consolidated statement of
financial position are as follows:
2013 2012
---------------------------- ---------------------------- ----------------------------
Carrying Fair Carrying Fair
---------------------------- ------------- ------------- ------------- -------------
amount value amount value
---------------------------- ------------- ------------- ------------- -------------
USD'000 USD'000 USD'000 USD'000
---------------------------- ------------- ------------- ------------- -------------
Assets carried at
fair values
---------------------------- ------------- ------------- ------------- -------------
Available-for-sale
financial assets 52,716 52,716 49,556 49,556
---------------------------- ------------- ------------- ------------- -------------
Interest rate swaps 1,685 1,685 - -
---------------------------- ------------- ------------- ------------- -------------
-------- -------- -------- --------
---------------------------- ------------- ------------- ------------- -------------
54,401 54,401 49,556 49,556
---------------------------- ------------- ------------- ------------- -------------
===== ===== ===== =====
---------------------------- ------------- ------------- ------------- -------------
Assets carried at
amortised cost
---------------------------- ------------- ------------- ------------- -------------
Debt securities held
to maturity 10,207 10,110 11,277 11,149
---------------------------- ------------- ------------- ------------- -------------
Loans and receivables 669,405 669,405 693,705 693,705
---------------------------- ------------- ------------- ------------- -------------
Cash and cash equivalents 2,572,470 2,572,470 1,881,928 1,881,928
---------------------------- ------------- ------------- ------------- -------------
------------ ------------ ------------ ------------
---------------------------- ------------- ------------- ------------- -------------
3,252,082 3,251,985 2,586,910 2,586,782
---------------------------- ------------- ------------- ------------- -------------
======= ======= ======= =======
---------------------------- ------------- ------------- ------------- -------------
Liabilities carried
at fair values
---------------------------- ------------- ------------- ------------- -------------
Interest rate swaps (51,953) (51,953) (161,823) (161,823)
---------------------------- ------------- ------------- ------------- -------------
Forward exchange contracts (418) (418) (35) (35)
---------------------------- ------------- ------------- ------------- -------------
--------- --------- ---------- ----------
---------------------------- ------------- ------------- ------------- -------------
(52,371) (52,371) (161,858) (161,858)
---------------------------- ------------- ------------- ------------- -------------
===== ===== ====== =======
---------------------------- ------------- ------------- ------------- -------------
Liabilities carried
at amortised cost
---------------------------- ------------- ------------- ------------- -------------
Secured bank loans* (1,258,822) (1,258,822) (872,433) (872,433)
---------------------------- ------------- ------------- ------------- -------------
Mortgage debenture
stocks (2,355) (2,458) (2,307) (2,662)
---------------------------- ------------- ------------- ------------- -------------
Unsecured bond issues (3,239,277) (3,378,952) (3,237,234) (3,734,175)
---------------------------- ------------- ------------- ------------- -------------
Unsecured loan stock (9,266) (9,266) (9,006) (9,006)
---------------------------- ------------- ------------- ------------- -------------
Finance lease liabilities (26,867) (26,867) (39,651) (39,651)
---------------------------- ------------- ------------- ------------- -------------
Unsecured bank and
other loans* (498,430) (498,430) (591,825) (591,825)
---------------------------- ------------- ------------- ------------- -------------
Trade and other payables (1,200,037) (1,200,037) (635,824) (635,824)
---------------------------- ------------- ------------- ------------- -------------
Bank overdraft (1,407) (1,407) (195) (195)
---------------------------- ------------- ------------- ------------- -------------
------------ ------------ ------------ ------------
---------------------------- ------------- ------------- ------------- -------------
(6,236,461) (6,376,239) (5,388,475) (5,885,771)
---------------------------- ------------- ------------- ------------- -------------
======= ======= ======= ========
---------------------------- ------------- ------------- ------------- -------------
* A significant portion of these loans carry a variable rate of
interest and hence, the fair values reported approximates carrying
values.
30 Financial instruments (continued)
(d) Fair values (continued)
Fair value hierarchy
The table below analyses financial instruments carried at fair
value, by valuation method (also refer to note 5 (v). The different
levels have been defined as follows:
-- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
-- Level 2: inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from
prices)
-- Level 3: inputs for the asset or liability that are not based
on observable market data (unobservable inputs)
Level 1 Level 2 Level 3
--------------------------------- -------- ----------- --------
USD'000 USD'000 USD'000
--------------------------------- -------- ----------- --------
2013
--------------------------------- -------- ----------- --------
Available-for-sale financial - 52,716 -
assets
--------------------------------- -------- ----------- --------
Derivative assets - 1,685 -
--------------------------------- -------- ----------- --------
Derivative financial liabilities - (52,371) -
--------------------------------- -------- ----------- --------
---- --------- ----
--------------------------------- -------- ----------- --------
- 2,030 -
--------------------------------- -------- ----------- --------
== ===== ==
--------------------------------- -------- ----------- --------
2012
--------------------------------- -------- ----------- --------
Available-for-sale financial - 49,556 -
assets
--------------------------------- -------- ----------- --------
Derivative financial liabilities - (161,858) -
--------------------------------- -------- ----------- --------
---- ---------- ----
--------------------------------- -------- ----------- --------
- (112,302) -
--------------------------------- -------- ----------- --------
== ======= ==
--------------------------------- -------- ----------- --------
31 Operating leases
Operating lease commitments - Group as a lessee
Future minimum rentals payable under non-cancellable operating
leases as at 31 December are as follows:
2013 2012
-------------------------------- ------------- -------------
USD'000 USD'000
-------------------------------- ------------- -------------
Within one year 290,998 303,685
-------------------------------- ------------- -------------
Between one to five years 1,115,598 735,859
-------------------------------- ------------- -------------
Between five to ten years 1,254,322 1,102,940
-------------------------------- ------------- -------------
Between ten to twenty years 1,499,439 1,351,947
-------------------------------- ------------- -------------
Between twenty to thirty years 981,565 1,311,794
-------------------------------- ------------- -------------
Between thirty to fifty years 1,198,978 1,221,425
-------------------------------- ------------- -------------
Between fifty to seventy years 923,174 1,052,910
-------------------------------- ------------- -------------
More than seventy years 983,526 1,029,272
-------------------------------- ------------- -------------
------------ ------------
-------------------------------- ------------- -------------
8,247,600 8,109,832
-------------------------------- ------------- -------------
======= ========
-------------------------------- ------------- -------------
The above operating leases (Group as a lessee) mainly consist of
terminal operating leases arising out of concession arrangements
which are long term in nature. In addition, this also includes
leases of plant, equipment and vehicles. In respect of terminal
operating leases, contingent rent is payable based on revenues/
profits earned in the future period. The majority of leases contain
renewable options for additional lease periods at rental rates
based on negotiations or prevailing market rates.
Operating lease commitments - Group as a lessor
Future minimum rentals receivable under non-cancellable
operating leases as at 31 December are as follows:
2013 2012
--------------------------- ----------- -----------
USD'000 USD'000
--------------------------- ----------- -----------
Within one year 25,567 21,646
--------------------------- ----------- -----------
Between one to five years 68,817 84,718
--------------------------- ----------- -----------
More than five years 23,536 25,640
--------------------------- ----------- -----------
---------- ----------
--------------------------- ----------- -----------
117,920 132,004
--------------------------- ----------- -----------
====== ======
--------------------------- ----------- -----------
Operating lease commitments - Group as a lessor (continued)
The above operating leases (Group as a lessor) mainly consist of
rental of property, plant and equipment leased out by the Group.
The leases contain renewal options for additional lease periods and
at rental rates based on negotiations or prevailing market
rates.
32 Capital commitments
2013 2012
----------------------------------- -------- ----------
USD'000 USD'000
----------------------------------- -------- ----------
Estimated capital expenditure
contracted for as at 31 December 788,972 1,178,529
----------------------------------- -------- ----------
====== =======
----------------------------------- -------- ----------
33 Contingencies
(a) The Group has contingent liabilities amounting to USD 21,651
thousand (2012: USD 15,538 thousand) in respect of payment
guarantees, USD 212,192 thousand (2012: USD 152,556 thousand) in
respect of performance guarantees and USD 1,590 thousand (2012: 853
thousand) in respect of letters of credit issued by the Group's
bankers. The bank guarantees and letters of credit are arising in
the ordinary course of business from which it is anticipated that
no material liabilities will arise.
(b) The Group has contingent liabilities in respect of
guarantees issued on behalf of equity-accounted investees (refer to
note 29).
(c) The Group through its 100% owned subsidiary Mundra
International Container Terminal Private Limited ("MICT") has
developed and is operating the container terminal at the Mundra
port in Gujarat.
In 2006, MICT received a show cause notice from Gujarat Maritime
Board ("GMB") requiring MICT to demonstrate that the undertaking
given by its parent company, P&O Ports (Mundra) Private
Limited, with regard to its shareholding in MICT has not been
breached in view of P&O Ports being taken over by the Group (DP
World).
Based on the strong merits of the case and on the advice
received from legal counsel, management believes that the above
litigation is unsubstantiated, and in management's view, it will
have no impact on the Group's ability to continue to operate the
port.
(d) Chennai Port Trust ("CPT") had raised a demand for an amount
of USD 19,303 thousand (2012: USD 21,773 thousand) from Chennai
Container Terminal Limited ("CCTL"), a subsidiary of the Company,
on the basis that CCTL had failed to fulfil its obligations in
respect of non-transhipment containers for a period of four
consecutive years from 1 December 2003. CCTL had subsequently paid
USD 10,313 thousand (2012: USD 11,633 thousand) under dispute in
2008. CCTL had initiated arbitration proceedings against CPT in
this regard. The arbitral tribunal passed its award on November 26,
2012 ruling in favour of CCTL. However, CPT appealed against this
order, which was upheld by Chennai High Court on 8 January 2014 and
accordingly a provision has been recognised against the above
receivable. CCTL lodged an appeal before the Division Bench of
Madras High Court along with a stay petition on 31 January 2014.
The Appeal was taken up for hearing and admitted on 3 February
2014. CPT also made a statement before the Court that no further
action would be taken by CPT against CCTL. The Court has posted the
matter for hearing on 15 April 2014.
34 Significant group entities
The extent of the Group's ownership in its various subsidiaries,
associates and joint ventures and their principal activities are as
follows:
(a) Significant holding companies
Ownership Country Principal
Legal Name interest of incorporation activities
---------------------------- ---------- ------------------ ----------------
DP World FZE 100% United Management
Arab Emirates and operation
of seaports,
airports and
leasing of
port equipment
---------------------------- ---------- ------------------ ----------------
Thunder FZE 100% United Holding company
Arab Emirates
---------------------------- ---------- ------------------ ----------------
Peninsular and Oriental 100% United Management
Steam Navigation Kingdom and operation
Company Limited of seaports
---------------------------- ---------- ------------------ ----------------
DP World Australia 100% Australia Holding company
(POSN) Pty Ltd
---------------------------- ---------- ------------------ ----------------
DPI Terminals Asia 100% British Holding company
Holding Limited Virgin
Islands
---------------------------- ---------- ------------------ ----------------
DPI Terminals (BVI) 100% British Holding company
Limited Virgin
Islands
---------------------------- ---------- ------------------ ----------------
DP World Ports Cooperatieve 100% Netherlands Holding company
U.A.
---------------------------- ---------- ------------------ ----------------
DP World Maritime 100% Netherlands Holding company
Cooperatieve U.A.
---------------------------- ---------- ------------------ ----------------
DPI Terminals Holdings 100% Netherlands Holding company
C.V.
---------------------------- ---------- ------------------ ----------------
34 Significant group entities (continued)
(b) Significant subsidiaries - Ports
Legal Name Ownership Country of
interest incorporation Principal activities
-------------------------- ---------- --------------- ---------------------
Terminales Rio de 55.62% Argentina Container terminal
la Plata SA operations
-------------------------- ---------- --------------- ---------------------
DP World Antwerp N.V. 100% Belgium Multi-purpose
terminal operations
and ancillary
container services
-------------------------- ---------- --------------- ---------------------
DP World (Canada) 100% Canada Container terminal
Inc. operations
and stevedoring
-------------------------- ---------- --------------- ---------------------
Egyptian Container 100% Egypt Container terminal
Handling Company (ECHCO) operations
-S.A.E.
-------------------------- ---------- --------------- ---------------------
DP World Germersheim, 100% Germany Container terminal
GmbH and Co. KG operations
-------------------------- ---------- --------------- ---------------------
Chennai Container Container terminal
Terminal 100% India operations
Private Limited
-------------------------- ---------- --------------- ---------------------
India Gateway Terminal 81.63% India Container terminal
Pvt. Ltd operations
-------------------------- ---------- --------------- ---------------------
Mundra International 100% India Container terminal
Container Terminal operations
Private Limited
-------------------------- ---------- --------------- ---------------------
Nhava Sheva International 100% India Container terminal
Container Terminal operations
Private Limited
-------------------------- ---------- --------------- ---------------------
DP World Middle East 100% Kingdom of Container terminal
Limited Saudi Arabia operations
-------------------------- ---------- --------------- ---------------------
DP World Maputo SA 60% Mozambique Container terminal
operations
-------------------------- ---------- --------------- ---------------------
Qasim International 75% Pakistan Container terminal
Container Terminal operations
Pakistan Ltd
-------------------------- ---------- --------------- ---------------------
DP World Callao S.R.L. 100% Peru Container terminal
operations
-------------------------- ---------- --------------- ---------------------
Doraleh Container 33.33%* Republic Container terminal
Terminal SARL of Djibouti operations
-------------------------- ---------- --------------- ---------------------
Integra Port Services 60% Republic Container terminal
N.V. of Suriname operations
-------------------------- ---------- --------------- ---------------------
Suriname Port Services 60% Republic General cargo
N.V. of Suriname terminal operations
-------------------------- ---------- --------------- ---------------------
Constanta South Container 75% Romania Container terminal
Terminal SRL operations
-------------------------- ---------- --------------- ---------------------
34 Significant group entities (continued)
(b) Significant subsidiaries - Ports (continued)
Ownership Country of
Legal Name interest incorporation Principal activities
------------------------- ---------- --------------- -----------------------
DP World Dakar S.A. 90% Senegal Container terminal
operations
------------------------- ---------- --------------- -----------------------
DP World Tarragona 60% Spain Container terminal
S.A. operations
------------------------- ---------- --------------- -----------------------
DP World UAE Region 100% United Arab Container terminal
FZE Emirates operations
------------------------- ---------- --------------- -----------------------
DP World Fujairah 100% United Arab Container terminal
FZE Emirates operations
------------------------- ---------- --------------- -----------------------
Southampton Container United Kingdom Container terminal
Terminals 51% operations
Limited
------------------------- ---------- --------------- -----------------------
London Gateway Port 100% United Kingdom Container terminal
Limited operations
------------------------- ---------- --------------- -----------------------
Saigon Premier Container 80% Vietnam Container terminal
Terminal operations
------------------------- ---------- --------------- -----------------------
(c) Associates and joint ventures - Ports
Djazair Port World 50% Algeria Container terminal
Spa operations
-------------------------- ------- --------------- ---------------------
DP World Djen Djen 50% Algeria Container terminal
Spa operations
-------------------------- ------- --------------- ---------------------
DP World Australia 25% Australia Container terminal
(Holding) Pty Ltd operations
-------------------------- ------- --------------- ---------------------
Antwerp Gateway N.V 42.50% Belgium Container terminal
operations
-------------------------- ------- --------------- ---------------------
Empresa Brasileira 33.33% Brazil Container terminal
de Terminais Portuarious operations
S.A.
-------------------------- ------- --------------- ---------------------
Caucedo Investment 50% British Virgin Container terminal
Inc. Islands operations
-------------------------- ------- --------------- ---------------------
Eurofos S.A.R.L 50% France Container terminal
operations
-------------------------- ------- --------------- ---------------------
Generale de Manutention 50% France Container terminal
Portuaire S.A operations
-------------------------- ------- --------------- ---------------------
Goodman DP World Hong 25% Hong Kong Container terminal
Kong Limited operations
and warehouse
operations
-------------------------- ------- --------------- ---------------------
Vishaka Container 26% India Container terminal
Terminals Private operations
Limited
-------------------------- ------- --------------- ---------------------
PT Terminal Petikemas 49% Indonesia Container terminal
Surabaya operations
-------------------------- ------- --------------- ---------------------
Pusan Newport Co. 42.10% Korea Container terminal
Ltd operations
-------------------------- ------- --------------- ---------------------
Qingdao Qianwan Container People's
Terminal Co. Ltd 29% Republic Container terminal
of China operations
-------------------------- ------- --------------- ---------------------
34 Significant group entities (continued)
(c) Associates and joint ventures - Ports (continued)
Ownership Country of
Legal Name interest incorporation Principal activities
--------------------------- ------------ --------------- ---------------------
Tianjin Orient Container 24.50% People's Container terminal
Terminals Co Ltd Republic operations
of China
--------------------------- ------------ --------------- ---------------------
DP World Yantai Company 12.50% People's Container terminal
Limited Republic operations
of China
--------------------------- ------------ --------------- ---------------------
Asian Terminals Inc 50.54%** Philippines Container terminal
operations
--------------------------- ------------ --------------- ---------------------
Laem Chabang International 34.50% Thailand Container terminal
Terminal Co. Ltd operations
--------------------------- ------------ --------------- ---------------------
(d) Other non-port business
Ownership Country of
Legal Name interest incorporation Principal activities
-------------------------- ---------- --------------- ---------------------
P&O Maritime Services 100% Australia Maritime services
Pty Ltd
-------------------------- ---------- --------------- ---------------------
Container Rail Road 100% India Container rail
Services Private Limited freight operations
-------------------------- ---------- --------------- ---------------------
Empresa de Dragagem 25.50% Mozambique Dredging services
do Porto de Maputo,
SA
-------------------------- ---------- --------------- ---------------------
Port Secure Djibouti 40% Republic Port security
of Djibouti services
-------------------------- ---------- --------------- ---------------------
DP World Cargo Services 70% South Africa Cargo services
(Pty) Limited
-------------------------- ---------- --------------- ---------------------
Dubai International 100% United Arab Port management
Djibouti FZE Emirates and operation
-------------------------- ---------- --------------- ---------------------
P&O Maritime FZE 100% United Arab Maritime services
Emirates
-------------------------- ---------- --------------- ---------------------
34 Significant group entities (continued)
(e) Ports under development
Ownership Country of
Legal Name interest incorporation Principal
-------------------------- ---------- --------------- -------------------
Nhava Sheva (India) 100% India Container terminal
Gateway Terminal Private operations
Limited
-------------------------- ---------- --------------- -------------------
Rotterdam World Gateway 30% Netherlands Container terminal
B.V. operations
-------------------------- ---------- --------------- -------------------
DP World Yarımca 100% Turkey Container terminal
Liman İ letmeleri operations
Anonim irketi
-------------------------- ---------- --------------- -------------------
* Although the Group only has a 33.33% effective ownership
interest in Doraleh Container Terminal SARL, this entity is treated
as a subsidiary, as the Group is able to govern the financial and
operating policies of the company by virtue of an agreement with
the other investor.
** Although the Group has more than 50% effective ownership
interest in this entity, it is not treated as a subsidiary, but
instead treated as a joint arrangement. The underlying joint
venture agreement with the other shareholder does not provide
significant control to the Group.
(1) Before separately disclosed items (BSDI) primarily excludes
non-recurring items. DP World reported separately disclosed items
of $48 million, mostly relating to the $158 million profit on sale
of businesses and $99 million impairment of assets.
(2) Like-for-like at constant currency is without the addition
of (1) new capacity at Embraport (Brazil)and London Gateway (UK)
(2) divested equity-accounted investees Tilbury (UK), Aden (Yemen),
Adelaide (Australia), Vostochny (Russia), DMS (P&O Maritime)
and ACT (Hong Kong) (3) The restructure of our Antwerp business
(Belgium) which is now accounted for as an equity accounted
investee (4) the divestment of consolidated terminal CT3 (Hong
Kong) (5) change in shareholding in ATL(Hong Kong) from June 2013
(6) Change in shareholding in Yantai (Hong Kong) from September
2013 and (7) the impact of exchange rates as our financial results
are translated into US dollars for reporting purposes.
(3) Consolidated throughput is throughput from all terminals
where we have control under IFRS.
(4) Adjusted EBITDA is Earnings before Interest, Tax,
Depreciation & Amortisation including share of profit from
equity-accounted investees before separately disclosed items.
(5) Like for Like adjusted EBITDA Margin
(6) Return on capital employed is EBIT (earnings before interest
and taxation) before separately disclosed items as a percentage of
total assets less current liabilities.
(7) The adjusted EBITDA margin is calculated by dividing EBITDA
(earnings before interest, tax, depreciation & amortisation) by
revenue, including our share of profit from joint ventures and
associates.
(8) Adjusted EBITDA (earnings before interest, tax, depreciation
and amortisation) is calculated including our share of profit from
joint ventures and associates on a basis which excludes separately
disclosed items.
(9) EPS (earnings per share) is calculated by dividing the
profit after tax attributable to owners of the Company (before
separately disclosed items) by the weighted average shares
outstanding.
(10) Like-for-like adjusted EBITDA margin
(11) Like-for-like adjusted EBITDA margin
(12) Like-for-like adjusted EBITDA margin
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SFUFAUFLSEDD
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