Atlantic Navigation Singapore : 15 Nov 2021 | Financial Statements and Related Announcement - Third Quarter Result

ATLANTIC NAVIGATION HOLDINGS (SINGAPORE) LIMITED

(Company Registration No. 200411055E)

Condensed Interim Consolidated Financial Statements for the Financial Period Ended 30 September 2021

In view of an Emphasis of Matter relating to "material uncertainty related to going concern" highlighted by the Company's independent auditor, Ernst & Young LLP, on the audited financial statements of the Group for the financial year ended 31 December 2020, the Company is required by the Singapore Exchange Securities Trading Limited ("SGX-ST") to announce its quarterly financial statements pursuant to Rule 705 of the Catalist Rules.

This announcement, including the condensed Interim consolidated financial statements, has been reviewed by the Company's sponsor, SAC Capital Private Limited ("Sponsor"). This announcement has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made, or reports contained in this announcement.

The contact person for the Sponsor is Ms. Lee Khai Yinn (Tel: [phone]) at 1 Robinson Road, #21-00 AIA Tower, Singapore 048542.

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Table of Contents

Page

1. Condensed interim consolidated statement of profit or loss and other comprehensive

	income....................................................................................................................................	3
B. Condensed interim statements of financial position..............................................................	4
C.	Condensed interim statements of changes in equity............................................................	5
D.	Condensed interim consolidated statement of cash flows.....................................................	6
E. Notes to the condensed interim consolidated financial statements.......................................	7
F.	Other information required by Catalist Rule Appendix 7C.....................................................	15

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Atlantic Navigation Holdings (Singapore) Limited

(Company Registration No. 200411055E)

A. Condensed interim consolidated statement of profit or loss and other comprehensive income

			The Group				The Group
		3 months	3 months			9 months	9 months
		ended 30	ended 30			ended 30	ended 30
		September	September	Increase/		September	September
		2021	2020	(Decrease)	2021	2020
	Note	US$'000	US$'000	%		US$'000	US$'000
Revenue	4	11,526	14,312	(19.5)	30,375	49,875
Cost of services1		(9,191)	(12,530)	(26.6)	(27,418)	(38,397)
Gross profit		2,335	1,782	31.0		2,957	11,478
Other items of income

Increase/

(Decrease)

%

(39.1)

(28.6)

(74.2)

Finance income		-	-	N.M.	-	1	N.M.
Other income		-	-	N.M.	-	231	N.M.
Other items of expense
Marketing and distribution expenses		-	-	N.M.	(8)	(7)	14.3
Administrative expenses1		(1,473)	(1,542)	(4.5)	(4,528)	(4,196)	7.9
Finance costs		(1,005)	(1,176)	(14.5)	(3,165)	(3,885)	(18.5)
Impairment loss on property, vessels and equipment2		(1,052)	-	N.M.	(9,080)	(5,780)	57.1
Withholding tax expense		(88)	(310)	(71.6)	(250)	(1,295)	(80.7)
Loss before tax	6	(1,283)	(1,246)	3.0		(14,074)	(3,453)	>100.0
Income tax expense		-	-	N.M.	-	-	N.M.
Loss for the period, attributable to owners
of the Company		(1,283)	(1,246)	3.0		(14,074)	(3,453)	>100.0
Adjusted EBITDA for the period3
	2,889	2,060	40.2		4,719	12,799	(63.1)

1. Includes depreciation and amortisation as disclosed in Note 6.1.
2. Includes impairment loss on reclassification of vessels as held for sale as disclosed in Note 6.1.
3. Adjusted EBITDA is computed based on loss before tax, finance costs, depreciation, amortisation, impairment loss on property, vessels and equipment, net gain on disposal of property, vessels and equipment.

Consolidated statement of comprehensive income

Loss for the period

Items that may be reclassified subsequently to profit or loss

Net fair value changes on cash flow hedges

Other comprehensive income for the period, net of tax

Total comprehensive income for the period, attributable to owners of the Company

(1,283)	(1,246)	3.0	(14,074)	(3,453)	>100.0
132	163	(19.0)		371	(506)	N.M.
132	163	(19.0)	371	(506)	N.M.

(1,151)

(1,083)

6.3

(13,703)

(3,959)

>100.0

Loss per share for the period attributable to the owners of the Company during the financial period:

Basic (US$ in cent)

Diluted (US$ in cent)

(0.25)	(0.24)	(2.69)	(0.66)
(0.25)	(0.24)	(2.69)	(0.66)

The share options granted to employees under the existing Atlantic 2008 ESOS and Atlantic 2015 ESOS have not been included in the calculation of diluted loss per share because they are anti-dilutive. All options have expired since 29 January 2020 and 11 May 2020 as disclosed in Note 13.

N.M.: not meaningful

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B. Condensed interim statements of financial position

		The Group		The Company
		Unaudited		Audited		Unaudited		Audited
		30 September		31 December		30 September		31 December
		2021	2020			2021	2020
	Note	US$'000		US$'000		US$'000		US$'000
ASSETS
Non-current assets
Property, vessels and equipment	8	140,249	155,232			-	-
Right-of-use assets		37	85			-	-
Intangible assets		169	183			141	141
Investment in subsidiaries		-	-			67,770	67,770
Advances, deposits and other receivables		-	-			24,471	35,050
Prepayments		-		382			-		-
		140,455	155,882			92,382	102,961
Current assets
Inventories		653	288			-	-
Advances, deposits and other receivables		2,203	1,826			4,186	5,449
Prepayments		485	767			9	-
Trade receivables	9	9,797	13,790			3,205	3,311
Vessels held for sale	8	1,794	-			-	-
Cash and bank balances		767	886			219	41
Restricted cash		90		94			-		-
		15,789		17,651			7,619		8,801
Total assets		156,244	173,533			100,001	111,762
EQUITY AND LIABILITIES
Current liabilities
Loans and borrowings	10	55,179	55,387			19,781	20,087
Trade payables		10,245	13,022			-	1,760
Accruals and other payables		5,575	5,810			447	490
Other non-financial liabilities		292	349			-	-
Amount due to shareholders	11	2,372	960			750	-
Lease liabilities		13		72			-		-
		73,676		75,600			20,978		22,337
Net current liabilities		(57,887)	(57,949)			(13,359)	(13,536)
Non-current liabilities
Provisions		726	639			-	-
Amount due to shareholders	11	11,222	11,361			11,222	11,361
Derivatives	12	1,172	1,543			-	-
Loans and borrowings	10	1,501	3,316			-	-
		14,621	16,859			11,222	11,361
Total liabilities		88,297	92,459			32,200	33,698
Net assets	7	67,947	81,074			67,801	78,064
Equity attributable to owners of the Company
Share capital	13	38,307	38,307			111,471	111,471
Other reserves		5,491	4,544			6,036	5,460
Retained earnings/(accumulated losses)		24,149		38,223			(49,706)		(38,867)
Total equity		67,947		81,074			67,801		78,064
Total equity and liabilities		156,244		173,533			100,001		111,762

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C. Condensed interim statements of changes in equity

	The Group	Equity,	Share	Other	Retained
	total	capital	reserves	earnings
		US$'000	US$'000	US$'000	US$'000
2021
	Balance at 1 January 2021	81,074	38,307		4,544	38,223
	Loss for the period	(14,074)	-		-	(14,074)
	Other comprehensive income
	Net fair value changes on cash flow hedges	371	-		371	-
	Other comprehensive income for the period, net of tax	371	-		371	-
	Transaction with owners of the Company directly recognised in equity*	576	-		576	-
	Balance at 30 September 2021	67,947	38,307		5,491	24,149
	2020
	Balance at 1 January 2020	85,952	38,307		3,969	43,676
	Loss for the period	(3,453)	-		-	(3,453)
	Other comprehensive income
	Net fair value changes on cash flow hedges	(506)	-		(506)	-
	Other comprehensive income for the period, net of tax	(506)	-		(506)	-
	Balance at 30 September 2020	81,993	38,307		3,463	40,223

The Company	Equity,	Share	Other	Accumulate
total	capital	reserves	d losses
	US$'000	US$'000	US$'000	US$'000
2021
Balance at 1 January 2021	78,064	111,471	5,460	(38,867)
Loss for the period, representing total comprehensive income for the period	(10,839)	-	-	(10,839)
Transaction with owners of the company directly recognised in equity*	576	-	576	-
Balance at 30 September 2021	67,801	111,471	6,036	(49,706)
2020
Balance at 1 January 2020	83,050	111,471	4,431	(32,852)
Loss for the period, representing total comprehensive income for the period	(5,967)	-	-	(5,967)
Balance at 30 September 2020	77,083	111,471	4,431	(38,819)

• During 1Q2021, a fair value adjustment arising from change of interest rate from 6.0% per annum to 3.0% per annum, being the difference between the carrying amount of loans received from shareholders and the fair value of these loans, was recognised in capital reserve.

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