INTERTANKO FINANCIAL REPORT AND ACCOUNTS FOR 2014

Transcription

1 INTERTANKO FINANCIAL REPORT AND ACCOUNTS FOR 2014

2 Management Committee s Financial Report 2014 The International Association of Independent Tanker Owners (INTERTANKO) is a non-profit organisation whose aims are to further the interests of independent tanker owners; to promote a free and competitive tanker market; to work for safety at sea and the protection of the marine environment. INTERTANKO has five offices located in Oslo, London, Singapore, Arlington (USA) and Brussels. In accordance with the Norwegian Accounting Act paragraph 3-3 we confirm that the financial statements have been prepared on the assumption of a going concern. INTERTANKO is not subject to any specific factors influencing its business beyond what is normal for an association. Income is influenced by general economic conditions, by the number of Members (and the size of their fleets) and the number of associate members, as well as publication sales. In 2014 INTERTANKO had 204 Members (3,077 vessels, M DWT) and 283 Associate Members. Expense levels are particularly influenced by staffing levels, office expenses and the number and location of meetings as well as associated travel expenditure. While expense currencies are forward purchased to lock in budgeted rates, expense book values remain affected by currency fluctuations between the income, expense and bookkeeping currencies. INTERTANKO s total operating income in 2014 increased by some 5.7% from 2013 as a result of excellent publication and advertising sales as well as membership and associate membership income (up by just under US$ 125,000); in particular the Association gained additional vessels and tonnage in the registered fleet. With operating expenses only marginally above 2013 and significantly below budget, the result for the year is positive. It is recommended that the surplus be charged to INTERTANKO s Capital Fund. The Secretariat s personnel have not been subject to any mishaps or accidents in their working environment during the year. Health and safety policies and procedures are subject to regular review. The working environments in the respective offices are considered to be good. INTERTANKO has incorporated the aim of avoiding gender discrimination in its policies. The company has at year end 20 employees, of whom 8 are women. The Executive Committee consists of 15 men and 0 women. Illness-related absence totalled 73 days, which constitutes approximately 1.6 % of total days worked during the year. This is very similar to 2013 levels (64 days). Operations do not result in pollution or spillage harmful to the external environment. It is the Management Committee s opinion that the financial statement, as presented, provides adequate information to assess the Association s financial situation and the result for the year. Nothing has happened after the year-end which would materially effect the Association s financial situation or the result for the year. INTERTANKO s Management Committee recommends that the surplus of USD 552,262 for 2014 be charged to the Capital Fund, which at the end of the year then stands at USD 9,273,764 Oslo, 10th of April 2015 Nikolas Tsakos Mr. R.M. Bishop Mr. H. Feringa Ms. Katharina Stanzel (Chairman) V.Ships SMD Stolt Tankers (Managing Director) INTERTANKO INTERTANKO

3 Profit and Loss and Account INTERTANKO Profit and Loss Account for the Year Ending 31 December 2014 Expressed in USD Note I N C O M E 1 Membership Fees 5,320,285 5,200,236 Associate Membership Fees 767, ,243 Membership FDIP 51,066 57,655 Service Charge 77,975 73,965 Publications 793, ,286 Advertising 37,993 19,720 Tanker Events Income 101,233 80,098 Total Operating Income 7,149,650 6,768,203 E X P E N S E S Salaries & Benefits 2,902,523 2,983,044 Social Security / Pensions 839, ,986 2 Meetings 298, ,553 Tanker Events Expenses 216, ,471 Travel 571, ,273 Regional Representation 47,325 66,865 Consultancy 378, ,810 Public Relations 8, Projects / Research 46,107 45,905 Subscriptions 28,425 31,351 Printing 22,623 43,876 Post / Telephone 75,343 79,288 Office Expense / Rent 779, ,038 Provision for unpaid fees 10,652 0 Depreciation 13,291 29,774 Total Operating Expenses -6,238,152-6,206,943 Operating Surplus 911, ,260 Interest Income 25,065 39,918 Exchange Gains / Losses -368, ,782 Sum Non-Operating Income -343, ,700 Interest Expenses / Bank Charges 15,920 20,539 Sum Non-Operating Expenses -15,920-20,539 Surplus for the Year 552, ,421

4 Balance Sheet INTERTANKO Balance Sheet as of 31 December 2014 Expressed in USD Note A S S E T S Fixed Assets Office Furniture & Data Equipment 29,378 42,669 3 Total Fixed Assets 29,378 42,669 Long-term Investments Long-term Mortgage Loans to Employees Total Long-term Investments 0 0 Current Assets Other Short-term Receivables 380, ,396 Accounts Receivable 247, ,511 Cash & Bank 9,084,705 8,399,840 5 Total Current Assets 9,712,727 9,084,747 TOTAL ASSETS 9,742,105 9,127,416 L I A B I L I T I E S A N D C A P I T A L Capital Capital Fund ,721,502 8,024,081 9 Surplus for the Year 552, ,421 Capital Fund ,273,764 8,721,502 Current Liabilities Accounts Payable 12,780 3,829 Withheld Taxes, Social Security & Holiday Pay 280, ,996 Accrued Expenses & Deferred Income 174,783 87,087 Total Current Liabilities 468, ,912 TOTAL LIABILITIES AND CAPITAL 9,742,105 9,127,416 Nikolas Tsakos Mr. R.M. Bishop Mr. H. Feringa Ms. Katharina Stanzel (Chairman) V.Ships SMD Stolt Tankers (Managing Director) Oslo, 10th of April 2015

5 Notes to the financial statements for the year ended 31 December Accounting Principles The financial statements are prepared in accordance with the Norwegian Accounting Act and generally accepted accounting principles. Assets and liabilities in Norwegian Kroner at 31 December 2014, have been translated at the year-end exchange rate: for 2014 USD 1=NOK (2013 USD 1=NOK ). Average exchange rate for 2014 was USD 1=NOK Fixed assets, expressed in USD, are valued at cost and depreciated over their economic life. Membership fees, Associate Membership fees, Surcharge and Membership FDIP income are invoiced for the calendar year and recognised upon receipt of payment. All other income classes are recognised upon delivery of services. 2. Salaries & Social Security / Pensions Salaries & Social Security / Pensions expenses are made up of the following amounts: Salaries: USD 2,726,965 2,804,211 Other benefits: USD 175, ,833 Pension premiums: USD 472, ,539 Social security: USD 366, , Fixed Assets Changes in the balance of fixed assets for 2014 were as follows: Acquisition cost at 01 Jan: USD 261,832 Purchases during the year: USD 0 Sales / scrapping during the year: USD 0 Acquisition cost at 31 Dec: USD 261,832 Accumulated depreciation at 01Jan: USD 219,163 Depreciation for the year: USD 13,291 Depreciation on sold / scrapped assets: USD 0 Accumulated depreciation at 31 Dec: USD 232,454 Closing balance at book value: USD 29, Long-term Mortgage Loans to Employees There are currently no long- or short-term loans to employees. 5. Cash and Bank Included in cash and bank balances at 31 December 2014 is a restricted bank account for withheld taxes amounting to USD 47,136.

6 6. Pension Premium Fund INTERTANKO s Oslo-based employees are covered by a pension insurance scheme, which entitles them to defined pension rights in the future. The pension right is mainly dependent on the number of earned years and the salary level at the time of reaching pension age, which is 67 in Norway. The pension scheme is organised and managed by a local insurance company. At 31 December 2014 the pension scheme covered eight employees with an average of 10 years remaining until retirement. The pension insurance scheme meets the requirements of the Norwegian obligatory service pension (obligatorisk tjenestepensjon, OTP). The following transactions on the pension premium fund were noted during 2014 (in Norwegian kroner): Opening balance 01 Jan: NOK 1,297,838 Premiums for the year: NOK -1,159,232 Payments to the premium fund: NOK 1,100,000 Interest & dividends: NOK 11,764 Closing balance 31 Dec: NOK 1,250, Number of Employees and Remuneration / Allowances to Managing Director and Executive Committee Average number of employees during 2014 was with one new employee, therefore representing man-years. Remuneration / Allowances to Managing Director: Salary: USD 372, ,345 Pension: USD 36,215 33,719 Bonus: USD 0 9,425 Sum: USD 408, ,490 The Managing Director has no financial agreement relating to the termination of the employment contract. INTERTANKO s Executive Committee members receive no remuneration for their work for INTERTANKO. Travel expenses relating to INTERTANKO activity are reimbursed in accordance with agreed policy for reimbursement of such travel expenses. 8. Auditor s Remuneration The auditor s remuneration was USD 10,665 (NOK 79,000) excl VAT (MVA). In addition tax services for the Singapore office were provided by the audit company during 2014 for USD 1, Capital fund adjustment From INTERTANKO has booked its entire P&L and balance in NOK. However as in prior years, reporting is done in USD. Due to the variation in exchange rates between 31 December 2014 and the previous year, an adjustment of the capital fund is necessary to match the figures reported for balances at year end This is standard practice and this year s adjustment of NOK 11,572,132 (USD 1,562,282) has been booked against currency losses in the P&L. Our deposits in USD and operating currencies have also changed in value due to the same variation in exchange rates. This has been booked against exchange gains. In previous years these gains more than equalled the equity adjustment. This was not the case at the end of 2014, since the very beneficial exchange rates against the USD were used to forward buy and cover 2015 currency needs of GBP and NOK before year-end. For the account evaluation on 31 December 2014, the resulting lower deposits in USD therefore gave a lower calculated exchange gain.

7 Cash Flow Statement INTERTANKO Cash Flow Statement expressed in USD Surplus / Deficit for the Year 552, ,421 Depreciation for the Year 13,291 29,774 Change in Current Receivables 56, ,103 Change in Current Liabilities 62,427-31,519 Net Cash From Operating Activities 684, ,573 Change in Long-term Inv. / Fixed Assets 0-17,373 Settlement Long-term mortage loans to employee Net Cash From Investing Activities 0-16,925 Net Change in Liquid Assets 684, ,648 Cash & Bank at ,399,840 8,110,192 Cash & bank at ,084,705 8,399,840

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10 Comments to INTERTANKO s Financial Result for the Year Ending 31 December 2014 The total operating income for 2014 exceeded that of 2013 and was 5.1 % (USD 349,173) higher than budget. Increased advertising and publication sales in particular provided over USD 550,000 additional income. Membership and Associate Membership fee income also exceeded that of 2013 due to an increase in the number of vessels and tonnage in the registered fleet. Due in parts to persistent efforts by the secretariat, total operating expenses for 2014 did increase no more than 0.5% compared to A reduction in salary and staff benefit costs was caused primarily by the recruitment of a new technical manager in September, into a post previously vacated in January. At the same time, an overspend in social security and pensions expenses is due to the need for increased pension fund payments for Norwegian employees, in order to build up sufficient reserves to assure defined benefits. Meeting, associated travel and regional representation expenditure exceeded budget by USD 32,500, in large parts due to an unexpected overseas Council and ExCom meeting in Dubai, but also because of high costs for meetings in New York. The latter also particularly influenced results for the Annual Tanker Event in New York, where late changes and additions of programme items such as a Members golf day caused significant overspend. Balancing this, projects and research expenditure was significantly reduced due to a delay in the delivery of a budgeted web upgrade project. Actual savings were again made on further reduced printing costs after the outsourcing of INTERTANKO s publications production and distribution. While bank charges were significantly lower than the previous year and interest income exceeded budget, the latter remained below last year s levels due to falling interest rates. Exchange losses at 2014 year end rates were in the region of USD 368,000, a significant increase over the previous year (please see also Note 9 on capital fund adjustment). In summary for 2014 INTERTANKO s operating surplus was USD 911,498 and the overall surplus for the year was USD 552,262.

11 Actual and budget for 2014 I N C O M E Discrepancy 2013 Actual Budget Actual Membership Fees 5,320,285 5,537, ,501 5,200,236 Associate Membership Fees 767, ,771 18, ,243 Membership FDIP 51,066 61,920-10,854 57,655 Service Charge 77,975 82,000-4,025 73,965 Publications 793, , , ,286 Advertising 37,993 20,000 17,993 19,720 Tanker Events Income 101, ,000 1,233 80,098 Total Operating Income 7,149,650 6,800, ,173 6,768,203 E X P E N S E S Salaries & Benefits 2,902,523 3,102, ,967 2,983,044 Social Security / Pensions 839, , , ,986 Meetings 298, ,000-61, ,553 Tanker Events- Expenses 216, , , ,471 Travel 571, ,000-21, ,273 Regional Representation 47,325 98,000 50,675 66,865 Consultancy 378, ,000 16, ,810 Public Relations 8,437 20,000 11, Projects / Research 46, ,000 92,893 45,905 Subscriptions 28,425 35,000 6,575 31,351 Printing 22,623 50,000 27,377 43,876 Post / Telephone 75,343 90,000 14,657 79,288 Office Expense / Rent 779, ,000 31, ,038 Depreciation 13,291 35,000 21,709 29,774 Operating Expenses -6,227,500-6,380, ,240-6,206,943 Provision for unpaid fees 10, , ,348 0 Total Operating Expenses -6,238,152-6,780, ,588-6,206,943 Operating Surplus 911,498 19, , ,260 Interest Income 25,065 10,000 15,065 39,918 Exchange Gains / Losses -368, , ,782 Sum Non-Operating Income -343,316 10, , ,700 Interest Expenses / Bank Charges 15,920 28,000 12,080 20,539 Sum Non-Operating Expenses -15,920-28,000 12,080-20,539 Surplus for the Year 552,262 1, , ,421

12 INTERTANKO London St Clare House Minories London EC3N 1DD United Kingdom Tel: Fax: INTERTANKO Oslo Nedre Vollgate 4 5th floor PO Box 761 Sentrum N-0106 Oslo Norway Tel: Fax: oslo@intertanko.com INTERTANKO Asia 5 Temasek Boulevard, #12-07 Suntec City Tower 5 Singapore Tel: Fax: singapore@intertanko.com INTERTANKO North America 801 North Quincy Street Suite 200 Arlington, VA USA Tel: Fax: washington@intertanko.com INTERTANKO Brussels Rue du Congrès B-1000 Brussels Belgium Tel: Fax: brussels@intertanko.com