Atlantic Navigation Singapore : 01 Mar 2022 | Financial Statements and Related Announcement - Full Yearly Results

ATLANTIC NAVIGATION HOLDINGS (SINGAPORE) LIMITED

(Company Registration No. 200411055E)

Condensed Interim Consolidated Financial Statements

for the Financial Quarter and Year Ended 31 December 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.

Page 1 of 19

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

Page 2 of 19

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			12 months	12 months
		ended 31	ended 31			ended 31	ended 31
		December	December	Increase/		December	December
		2021	2020	(Decrease)	2021	2020
	Note	US$'000	US$'000	%		US$'000	US$'000
Revenue	4	13,439	14,519	(7.4)	43,814	64,394
Cost of services1		(10,425)	(11,932)	(12.6)	(37,843)	(50,329)
Gross profit		3,014	2,587	16.5		5,971	14,065
Other items of income

Increase/

(Decrease)

%

(32.0)

(24.8)

(57.5)

Finance income		-	-	-	-	1	N.M.
Other income		390	304	28.3	390	535	(27.1)
Other items of expense
Marketing and distribution expenses		-	(2)	N.M.	(8)	(9)	(11.1)
Administrative expenses1		(1,557)	(3,568)	(56.4)	(6,085)	(7,764)	(21.6)
Finance costs		(935)	(966)	(3.2)	(4,100)	(4,851)	(15.5)
Other expenses		-	-	-	(1,052)	-	N.M.
Impairment loss on property, vessels and equipment		-	-	-	(8,028)	(5,780)	38.9
Withholding tax expense		(86)	(355)	(75.8)	(336)	(1,650)	(79.6)
Profit/(loss) before tax	6	826	(2,000)	N.M.		(13,248)	(5,453)	>100.0
Income tax expense		-	-	-	-	-	-
Profit/(loss) for the period/year, attributable to owners
of the Company		826	(2,000)	N.M.		(13,248)	(5,453)	>100.0
Adjusted EBITDA for the period/year2
	3,804	1,083	>100.0		8,523	13,882	(38.6)

1. Includes depreciation and amortisation as disclosed in Note 6.1.
2. Adjusted EBITDA is computed based on the loss before tax, finance costs, depreciation, amortisation, impairment loss on property, vessels and equipment, net loss/(gain) on disposal of property, vessels and equipment.

Consolidated statement of comprehensive income
Profit/(loss) for the period/year	826	(2,000)	N.M.	(13,248)	(5,453)	>100.0
Items that may be reclassified subsequently to profit or loss
Net fair value changes on cash flow hedges	229	52	>100.0		600	(454)	N.M.
Other comprehensive income for the period/year, net of tax	229	52	>100.0	600	(454)	N.M.
Total comprehensive income for the period/year, attributable
to owners of the Company	1,055	(1,948)	N.M.		(12,648)	(5,907)	>100.0

Profit/(loss) per share for the year attributable to the owners of the Company during the financial period/year:

Basic (US$ in cent)

Diluted (US$ in cent)

0.16	(0.38)	(2.53)	(1.04)
0.16	(0.38)	(2.53)	(1.04)

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

Page 3 of 19

B. Condensed interim statements of financial position

		The Group		The Company
		Unaudited		Audited		Unaudited		Audited
		31 December		31 December		31 December		31 December
		2021	2020			2021	2020
	Note	US$'000		US$'000		US$'000		US$'000
ASSETS
Non-current assets
Property, vessels and equipment	8	138,539	155,232			-	-
Right-of-use assets		20	85			-	-
Intangible assets		164	183			141	141
Investment in subsidiaries		-	-			67,770	67,770
Advances, deposits and other receivables		-	-			24,471	35,050
Prepayments		-		382			-		-
		138,723	155,882			92,382	102,961
Current assets
Inventories		700	288			-	-
Advances, deposits and other receivables		1,854	1,826			3,728	5,449
Prepayments		306	767			14	-
Trade receivables	9	11,171	13,790			1,976	3,311
Cash and bank balances		520	886			37	41
Restricted cash		90		94			-		-
		14,641		17,651			5,755		8,801
Total assets		153,364	173,533			98,137	111,762
EQUITY AND LIABILITIES
Current liabilities
Loans and borrowings	10	52,682	55,387			18,004	20,087
Trade payables		8,972	13,022			-	1,760
Accruals and other payables		5,574	5,810			292	490
Other non-financial liabilities		130	349			-	-
Amount due to shareholders	11	2,689	960			750	-
Lease liabilities		-		72			-		-
		70,047		75,600			19,046		22,337
Net current liabilities		(55,406)	(57,949)			(13,291)	(13,536)
Non-current liabilities
Provisions		754	639			-	-
Amount due to shareholders	11	11,370	11,361			11,370	11,361
Derivatives	12	943	1,543			-	-
Loans and borrowings	10	1,248	3,316			-	-
		14,315	16,859			11,370	11,361
Total liabilities		84,362	92,459			30,416	33,698
Net assets	7	69,002	81,074			67,721	78,064
Equity attributable to owners of the Company
Share capital	13	38,307	38,307			111,471	111,471
Other reserves		5,720	4,544			6,036	5,460
Retained earnings/(accumulated losses)		24,975		38,223			(49,786)		(38,867)
Total equity		69,002		81,074			67,721		78,064
Total equity and liabilities		153,364		173,533			98,137		111,762

Page 4 of 19

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 year	(13,248)		-		-	(13,248)
	Other comprehensive income
	Net fair value changes on cash flow hedges	600		-		600	-
	Other comprehensive income for the year, net of tax	600		-		600	-
	Transaction with owners of the Company directly recognised in equity*	576		-		576	-
	Balance at 31 December 2021	69,002		38,307		5,720	24,975
	2020
	Balance at 1 January 2020	85,952		38,307		3,969	43,676
	Loss for the year	(5,453)		-		-	(5,453)
	Other comprehensive income
	Net fair value changes on cash flow hedges	(454)		-		(454)	-
	Other comprehensive income for the year, net of tax	(454)		-		(454)	-
	Interest on shareholders' loan waived off	1,029		-		1,029	-
	Balance at 31 December 2020	81,074		38,307		4,544	38,223

	The Company	Equity,	Share	Other	Accumulated
	total	capital	reserves		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 year, representing total comprehensive income for the year	(10,919)	-		-	(10,919)
	Transaction with owners of the company directly recognised in equity*	576	-	576	-
	Balance at 31 December 2021	67,721	111,471	6,036	(49,786)
	2020
	Balance at 1 January 2020	83,050	111,471	4,431	(32,852)
	Loss for the year, representing total comprehensive income for the year	(6,015)	-		-	(6,015)
	Interest on shareholders' loan waived off	1,029	-	1,029	-
	Balance at 31 December 2020	78,064	111,471	5,460	(38,867)

• 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.

Page 5 of 19