rapport gestion 2004 anglais002 - hyproc · as to the standardisation, it is officially edified...
TRANSCRIPT
20042004
AnnualAnnual
ReportReport
HYPROC SHIPPING COMPANYHYPROC SHIPPING COMPANY
Contents
Outstanding facts 3
Main Resolutions of the Board of Directors 4
Financial Highlights 6
Analysis of the activity 7
Technical status of the fleet 17
Human Resources 19
Financial Report 24
Main indicators of year 2004 24
Annual Accounts 30
Analysis of the Balance-sheet Accounts 33
Analysis of management accounts 42
Financial Ratios 50
Notes on the accounting referential 51
Independent Auditors' Report 56
2
Message of the Chairman
2004, was the year of the starting of a large program of mutually advantageous partnership for the Group Sonatrach with well-known partners such as the ship-owners Itochu, Mol, and Bergesen, sanctioned by the acquisition of 2 LNG Carriers. Berge Arzew, 138.000 M3 received on July 31st, 2004, followed by Lalla Fatma N’soumer, 145.000 M3, received on the October 29th, 2004. The launching of 2 New-building LNG Carriers (Med Max size) / 75.500 M3 in partnership with Sonatrach, Itochu and Mol, awarded to the Japanese yard Universal Shipbuilding Corporation. These acquisitions will increase the LNG transport capacity of Hyproc SC with nearly 65%. All this, shows the constant policy of Sonatrach Group to acquire a tool for competitive shipping in order to recover a good share of the market in terms of maritime transport of LNG and to ensure by its own means at least half of its LNG exports. On the same register, the Company concluded a deal with the Japanese yard “Namura” for the building of two LPG carriers with a capacity of 22.500 M3 on its own capital cover. Together with renewal of the fleet, the HSC has entered into procedures for the sale of non standard ships. As to the standardisation, it is officially edified with respect to several aspects, organisational, respect of norms, accounting reorganization and centralization of the cash equivalents, set up of management devices such ISM manager software and ShipNet.... On the human resources chapter, the company’s out look is turned from now on to the training and the constant improvement of its personnel knowledge. This led the company to plan for a diversified and rich training program for the personnel pursuant to its ambitions. It is evident that qualified and professional human resources will permanently guarantee to HYPROC SC their know-how in terms of maritime transport and ship-management. The Company maintained its certification ISM & ISO 9001 and obtained with success the certification of its fleet to the ISPS code, which became compulsory since July 1, 2004. In the same way, the focus was made on the human and material means necessary for the success of the regular fleet "vetting" inspections that became lately a draconian device for the terminals, shippers and ship-owners. Meanwhile, an HSE division was created by Hyproc SC since it’s determined to comply with the environmental standard ISO 14001, and to set in motion with the HSE policy adopted by the Group. This financial year was also characterized by the strict budgetary policy that requires the mobilization of each one of us. This permanent care for a rationalization of the resources will certainly lead to the correct use and to the preservation of the company potentials. Regarding infrastructures, the Company purchased a new head-office in Oran with highly advanced equipment and technology in accordance with our business. As for the accommodation and training center in Mostaganem, the works of the first phase were completed. On management indicators side, the year 2004 allowed the company’s to assess the efficiency of the evaluation parameters system. Thus, the procedures set up from 1998 to 2003, give a very reassuring reading for the future. It is for this reason that the significant results militate for stabilization in favour of the company’s durable expansion. These results strengthen the role and the credibility of HYPROC SC as a performing tool for maritime transport and it ranks nowadays, within the Group Sonatrach, as the leader in the strategy of upgrading hydrocarbons in the Group.
3
OUTSTANDING FACTS
The year 2004 was marked by the following main results:
� Acquisition of the LNG carrier “Lalla Fatma N’soumer”, on 10/29/2004, of a
capacity of 145.000 m3, in partnership with Sonatrach and Japanese companies
ITOCHU/MOL.
� Acquisition of the LNG carrier “Berge Arzew”, on 07/31/2004, of a capacity of
138.000 m3, divided co-ownership with SONATRACH and BERGESEN.
HYPROC takes part in ship-management of this LNG carrier.
� Signature of two New-building contracts, on 11/04/2004 and 02/07/2005, with
Japanese ship-yard NAMURA for the building of two LPG carriers of 22 500 m3.
� Signature of two New-building contracts with UNIVERSAL SHIPBULDING
CORPORATION, regarding the building of two 75.500 m3 LNG carriers. The first
ship contract was signed on the 07/31/2004 and the second one 10/31/2004 for the
second ship. These ships will be acquired in partnership with SONATRACH and
ITOCHU/MOL.
� Completion of the planning woks of the Company’s head office in Oran.
Most of the company structures moved on to the new headquarters in Oran during
March 2005.
� Certification of the Company to the standard ISO 9001/2000 by an office of external audit.
� Certification of the whole fleet to the ISPS Code (International Ship and Port
Security) dealing with the safety of ships and harbour installations.
4
MAIN RESOLUTIONS OF THE BOARD OF DIRECTORS
During the year 2004, the Board of Directors has held four meetings, which occurred in accordance with the prerogatives that are conferred to it by the Company’s Statutes and the third Administration Council Resolution of June 15, 2002. During this trading year, the Board of Directors had to pass numerous resolutions; the main ones are referred to:
� The Company’s traditional missions, related particularly to the closure of social accounts, endowment of provisions, passing of the company’s budgets and plans, to the annual reports, the allowances given to the Principal Senior Executive for the contracts signature exceeding the schedule of the power delegation (mainly the fleet dry-dockings), to the notices of meetings.
� To the records of investment and disinvestment mainly those regarding the
acquisition in partnership of LNG and LPG carriers and also the files dealing with the sale of ships.
� Socio-professional matters, in particular, the rise in wages occurred within the
setting of the Parent Company’s decision, adoption of the standard contract of executive officer established by Sonatrach Group...
� Partnership files (Cash, Caltram, Comarpex and others).
� Also, during the trading year 2004, the Board of Directors had to set the six
resolutions taken by the Ordinary General Meeting of Hyproc Sc, held on June 15 in Algiers, within the framework of the examination of the company’s social accounts and the annual report of the Board of Directors regarding the trading year 2003.
5
The activities of the Board of Directors are summarized as follows:
Number of meetings 04
Number of carried resolutions 34
Resolutions non concerned by a performance 06
Resolutions having to be performed 28
Resolutions applied 27
Number of Directors’ fees 34
Gross total amount of Directors’ fees 170 000 DA
6
FINANCIAL HIGHLIGHTS
(Unit: Million DA)
2004 2003
Turnover 10 000,9 10 089,6
Maritime Transport 9 622,4 9 707,7 - Hydrocarbons 9 612,5 9 693,0 - Off Hydrocarbons 9,9 14,7
Related Activities 378,5 381,9
Operating Results 177,8 1 563,9
Financial Expenses 80,9 101,6
Net Results 1 212,9 1 303,5
Total of Assets 27 130,9 25 722,3 Net Investments 3 464,5 3 144,9 Supplies 163,7 103,6
Credits including: - Financial Investment - Availability
23 502,7 12 000,0 2 896,4
22 473,8 12 500,0 2 226,3
Indebtedness 8 155,6 7 839,7 Investment Debts 2 470,1 2 400,6 Supply Debts 122,6 166,1 Detentions for Account 1 719,5 1 280,7 Debts on Affiliated companies 0,2 11,1 Operating Debts 3 716,0 3 756,0 Commercial Advances 27,0 39,4
Creditor Accounts of Assets 100,2 185,8
Capital Stock 18 975,3 17 802,6
Balance Sheet
0,00
5 000,00
10 000,00
15 000,00
20 000,00
25 000,00
30 000,00
T ot al o f Asset s Ind eb t edness C ap it al St ock
Mill
ion
DA
2004
2003
7
ANALYSIS OF THE ACTIVITY
The Turnover achieved by the company, with regard to financial year 2004, rises to 10
Billion DA, recording thus a light decrease of about 0,9% compared to 2003 and a
realization rate of 102% compared to forecasting of the end of the year.
TURNOVER EVOLUTION
02000400060008000
1000012000
2002 2003 2004
Mill
ion
DA
The evolution of the turnover by segment of activities, for 2004, is presented as follows:
Unit: million DA
Realizations Realizations Evolution Designation
2003 2004 %
LNG 6 170 5 575 - 10%
LPG 1 000 1 017 2%
Refined Products 1 112 1 713 54%
Crude-oil/Condensate 1 411 1 308 -7%
Off-Hydrocarbons Transport 15 10 -32%
Consignment Activities 366 308 -16%
Ship Management Benefits 16 70 351%
Total 10 090 10 001 -1%
8
The distribution of the turnover by segment of activities, for 2004, is illustrated by the
following chart:
TURNOVER SPLIT 2004
55,7%
10,2%
17,1%
0,7%
0,1%
13,1%
3,1%
LNG
LPG
Ref./Chem.Products
Off Hydrocarbons
Consignment
Crude-oil/Condensate
Ship Management
1- LNG Transportation
The Turnover generated by the LNG transportation for the year 2004 rises to 5,6 billion
DA, recording a reduction rate of 10% compared to 2003.
This drop is due primarily to the decrease in the rate of the technical availability of the
methane carriers fleet that went from 92% in 2003 to 89% in 2004 because of the
refurbishment works of the LNG carriers ‘’Larbi Ben M’hidi’’ (94 days) and ‘’Abane
Ramdane’’ (77 days).
LNG TURNOVER EVOLUTION
01000200030004000500060007000
2002 2003 2004
Mill
ion
DA
9
B .C h ih a n i1 3 %
H .R 'm e l1 1 %
M .D id o u c h e2 3 %
A .R a m d a n e1 6 %
M .B e n b o u la id2 5 %
L .B e n M 'h id i1 2 %
The decrease of the technical availability rate had a negative impact in the field of the
physical production. Indeed, the volume of LNG transported in 2004 witnessed a
decrease of 23% compared to the previous year.
L N G P H Y S IC A L P R O D U C T IO N E V O L U T IO N
0
5
1 0
1 5
2 0
2 0 0 2 2 0 0 3 2 0 0 4
Mill
ion
M3
The participation of each methane carrier in LNG exports is illustrated by the following
chart:
In addition, the Company’s fleet participation rate in LNG exports, reached 31% in 2004, that is to say, a decrease of 12% compared to 2003.
10
N a t i o n a l C o a s t a l
N a v i g a t i o n 2 6 %
I n t e r n a t i o n a l T r a f f i c
7 4 %
0
5
1 0
1 5
2 0
2 5
3 0
3 5
4 0
4 5
5 0
2 0 0 2 2 0 0 3 2 0 0 4
Mill
ion
m3
L N G E x p o r t s
G r o u pP a r t i c i p a t i o n
Note that Sonatrach Group fleet participation rate reached 33%. 2- LPG Transportation
The transport of LPG is ensured on both international and national coastal traffic by own ships so as chartered according to the Company customers’ request.
The splitting of the turnover in the year 2004, per type of traffic, is detailed as per chart
below:
11
The Turnover achieved by the LPG transportation for the year 2004 rises to 1,02 Billion DA, recording an increase rate of 2% compared to 2003.
LPG Turnover Evolution
0
200
400
600
800
1000
1200
2002 2003 2004
Million DA
Nat.Coast./Chartered
Nat.Coast./Owned
Int.Traf./Chartered
Int.Traf./Owned
As to the physical production, the quantity of LPG transported witnessed an increase of 30% compared to the previous year because of an exceptional technical availability rate (beyond 99%).
L P G P h y s ic a l P r o d u c t io n E v o lu t io n
3 5 0
4 0 0
4 5 0
5 0 0
2 0 0 2 2 0 0 3 2 0 0 4
Tho
usan
d of
TM
12
3- Refined and chemical products transportation - Refined petroleum products: The transport of refined petroleum products is ensured by both owned and chartered vessels according to the Company customers’ request. The amount of the turnover achieved into 2004 is worth 1,7Billion DA, representing an increase rate of 61% compared to 2003. This positive evolution is explained by the great importance of the chartering of vessels by the Company’s customers particularly Sonatrach and Naftal.
REFINED PRODUCTS TURNOVER EVOLUTION
0
500
1000
1500
2000
2002 2003 2004
Mill
ion
DA
Nat.Trade/Chartered
Int.Trade/Chartered
Nat.Trade/Owned
Int.Trade/Owned
As to the physical production, the quantity of refined petroleum products recorded an important increase of 69% compared to the previous year.
PHYSICAL PRODUCTION EVOLUTIONOF REFINED PRODUCTS
0
5001000
1500
2000
25003000
3500
2002 2003 2004
13
- Chemical products: This activity is ensured according to the Company customers’ request, on both international and national coastal traffic by owned and chartered vessels. The turnover generated by this activity, in 2004, amounts to 19 million DA, thus recording a decrease rate of 69% compared to 2003. This activity was limited for this exercise to the transport of industrial water for the account of ENIP Skikda. It should be noted that this type of transport is less gainful than that of the other chemicals.
CHEMICAL PRODUCTS TURNOVER EVOLUTION
010203040506070
2002 2003 2004
Mill
ion
DA
Nat. Trade/Chartered
Nat. Trade/Owned
Int.Trade/Chartered
As to the physical production, the transported quantity of Chemical product witnessed a significant increase of 47% compared to the realizations of the year 2003.
P H Y S IC A L P R O D U C T IO N E V O L U T IO NO F C H E M IC A L P R O D U C T S
0
1 0
2 0
3 0
4 0
2 0 0 2 2 0 0 3 2 0 0 4
Tho
usan
ds o
f TM
14
4- Transport of crude-oil and condensate The evolution of this activity is induced by adopting a new policy of sale CIF, by Sonatrach, actually ensured by chartered ships, dedicated for international traffic. The turnover generated by this activity, in 2004, amounts to 1,3 Billion DA, thus recording a reduction rate of 7% compared with the realization of the year 2003. This decrease is explained by the change in the mode of chartering which turned from “spot voyage” to chartering contract.
C R U D E -O IL A N D C O N D E N S A T E T U R N O V E R E V O L U T IO N
02 0 04 0 06 0 08 0 0
1 0 0 01 2 0 01 4 0 01 6 0 0
2 0 0 2 2 0 0 3 2 0 0 4
Mill
ion
DA
As to the physical production, the transported quantity witnessed a positive evolution of 4% in 2004.
PHYSICAL PRODUCTION EVOLUTION OF CRUDE-OIL AND CONDENSATE
1100
1200
1300
1400
1500
2002 2003 2004
Tho
usan
ds o
f TM
15
5- Transportation of non-liquid products This activity is ensured by the owned vessel ‘‘Mers El Hadjadj’’ being time chartered by the subsidiary Medifret. The turnover achieved through these services rises to 10 million DA in the year 2004, i.e. a decrease of 32% in comparison to the previous year. This regression is due to the damage undergone by this ship during the year 2004, inducing 73 days of idleness.
NON-LIQUID PRODUCTSTURNOVER EVOLUTION
02468
10121416
2002 2003 2004
Mill
ion
DA
6- Consignment activities (Shipping Agencies Activities) The turnover achieved in the year 2004 for consignment activities amounts to 309 million DA, i.e. a regression of 16% in comparison to the year 2003. As to the physical production, the number of calls that have been treated by the shipping agencies, in the year 2004, recorded an increase rate of 5% in comparison to the year 2003. This positive evolution is due essentially to the efforts made by the Company to face competition: induced by the opening up of this market, notably by taking the following measures:
- “Quality” Certification of the shipping agencies, - Installation of a policy of the customers loyalty, - Reduction of its tariffs.
16
T U R N O V E R E V O L U T I O N O F C O N S I G N M E N T A C T I V I T I E S
0
1 0 0
2 0 0
3 0 0
4 0 0
5 0 0
6 0 0
7 0 0
8 0 0
2 0 0 2 2 0 0 3 2 0 0 4
Mill
ion
DA
N U M B E R E V O L U T IO NO F P R O C E S S E D S H IP S
0
5 0 0
1 0 0 0
1 5 0 0
2 0 0 0
2 5 0 0
3 0 0 0
2 0 0 2 2 0 0 3 2 0 0 4
17
9 3 ,1 3 %
2 , 6 3 %4 , 2 4 %
D is p o n i b i l i t éA v a r ie sA .T .R é a li s é s
TECHNICAL STATUS OF THE FLEET
The whole fleet registered, in the year 2004, 426 days of idleness compared to 519 days in 2003: ♦ Performed dry-docking: 263 days, corresponding to the rate 4,24% for (3 LNG
carriers and 1 Oil-tanker), ♦ Damages: 163 days, corresponding to the rate 2,63% for (2 LNG carriers, 5 Coasters
and 1General cargo). Thus, the rate of technical availability of the fleet recorded in the year 2004 is 93% compared to 92% in 2003.
♦ LNG Fleet : The fleet of the LNG carriers registered, in the year 2004, a rate of technical availability of 89% compared to the rate 92% in the year 2003. This regression in the rate of availability is explained essentially by the refurbishment works of the vessels ‘‘Larbi Ben M’hidi’’ and ‘’Abane Ramdane’’.
Availability Damage Dry cking Realized
18
LPG Fleet and petroleum products: The technical availability rate recorded by LPG and oil-tankers fleet reaches 97% compared to 93% in the year of 2003: LPG Fleet: 99%. Oil-tankers Fleet: 95%. The improvement in the rate of the availability, in comparison to the year 2003, is explained by the reduction in the number of performed dry-docking (1 asphalt tanker).
OPERATING LNG FLEET COMPARAISON OF THE YEARS 2002/2003/2004
0%
20%
40%
60%
80%
100%
2002 2003 2004
Damage
Dry Docking
Ava ilability
O P E R A T IN G D P P F L E E TC O M P A R A IS O N O F T H E Y E A R S 2 0 0 2 /2 0 0 3 /2 0 0 4
0 %
2 0 %
4 0 %
6 0 %
8 0 %
1 0 0 %
2 0 02 2 0 0 3 2 0 0 4
D a m a g e
D ry D o c k in g re a liz e d
A va ila b il ity
19
HUMAN RESOURCES
1- Manpower:
Up to 12/31/2004, the company was employing 1 606 agents among whom 215 under contract, whereas the number of employees on 12/31/2003 recorded 1 550, i.e. an increase of 3,6%. - Sedentary manpower:
Up to 12/31/2004, the company was employing 565 among whom 116 on temporary basis, i.e. an increase of 1,3% compared to 12/31/2003. The movements registered in the year 2004 resulted in 42 recruitments and 35 departures among whom 11 on retirement and 7 resignations. Recruitments concerned mainly Junior Executives (43%) and Subordinate Staff (38%). The split of sedentary manpower by socio-professional category is illustrated by the following chart:
25%
17%27%
31%
Se n ior Exe cutive
Jun io r Exe cutive
Subord inate Staff
M inor Staff
- Seagoing manpower:
Up to 12/31/2004, the company was employing 1 041 agents among whom 99 on temporary basis, i.e. a positive evolution of 4,9% in comparison to 12/31/2003. This increase is explained by the manning of the new LNG carriers acquired in partnership.
20
The movements registered in the year 2004 deal mainly with the recruitments, on temporary basis, and the renewing of the job contracts. The split of the seagoing manpower is as follow:
7,59%
36,02%
56,39%
Office r s
Subo r d inate s e ag . s taff
Pe tty o f f ice r s
- Women employment:
Feminine manpower went from 145 in the end of the year 2003, to 153 in the end of the year 2004, i.e. a positive evolution of 6%. The split of the feminine manpower by socio-professional category is as follows:
5%
27%
34%
34%Senior Executive
Junior Executive
Subordinate Staff
M inor Staff
21
- The split of the Company’s manpower:
1- Split of personnel by group age
0 50
100 150 200 250 300 350 400 450
20-25 25-30 30-35 35-40 40-45 45-50 50-55 55-60 > 60
Women Men
2- Split of personnel by years’ service
0 50
100 150 200 250 300 350 400 450
0-5 05-10 10-15 15-20 20-25 25-30 > 30
Women Men
3- Split of Personnel by Academic Standard
0
50
100
150
200
250
300
350
Primary Intermediate Secondary Higher 1 Higher 2 Higher 3
Junior Executive Subordinate Staff Minor Staff
22
2- Training: In the year 2004, the number of employees concerned by training sequences is worth 1 476 agents, including:
- Seagoing personnel: 91%, - Sedentary personnel: 9%.
The number of employees who benefited from courses rises from 3615, in 2003 to 9716 in 2004, i.e. an increase beyond 160%. The rate of training courses in relation to the number of employees went from 1,15% in 2003, to 2,50 in 2004. The actions undertaken for the training of sedentary staff dealt with a wide range of specialities such as (human resources, data processing, technical, law, commercial, finance….). The actions undertaken for the training of seagoing staff are mainly oriented toward the regulation side STCW, maintenance service, getting used to the new LNG tankers, Maritime English, Medicine on board, training of sailors... Training expenses reach 42 million DA, in 2004, i.e. an evolution beyond 220% in relation to the training year 2003. This amount of the year 2004, represents 2,09% of the global staff expenses, in comparison to 0,65%, in 2003.
3- Working and social relationship:
As to the working relationships, the year 2004 witnessed negotiations with the Social Partner which resulted in the signature of (02) collective agreements concerning:
- The introduction of responsibility, diploma and technicality profits for the Senior Executive category, concerning seagoing personnel and the specific profit of management for Senior Executive category of sedentary personnel. - The Basic wage rise for sedentary and seagoing personnel pursuant to the resolution of the Company’s Administration Council of 11/21/2004.
23
Within the framework of the Employment Exchange, the AD-HOC commission, instituted for this purpose, had a certain number of files to treat, in particular those relating to the nomination of the human resources director and property assets centre chief. Besides, it is necessary to note the adjustment of the Company Trade-Union by the General Union of the Algerian Labours – UGTA of Oran City.
24
FINANCIAL REPORTS
I- Main indicators of year 2004:
1- Operation:
1-1- Products:
The total amount of products, witnessed in the year 2004, is 13,3 Billion DA, recording an increase of 8% compared to the year 2003 and a realization rate of 108%, compared to the forecasting of the end of the year. Products’ spreading is illustrated by the following chart:
75%
2%
18%5%
Provided provisions
Charges transfer
Miscellaneous products
Off-Operating products
� Turnover :
The Company registered, in the year 2004, a turnover amount of 10 Billion DA, a regression of the activity of about 0,9% compared to the previous year (10,09 Billion DA). This decrease of the activity was mainly recorded in the reduction of the transport activity of LNG (-10%), crude-oil and condensate (-7%) and of shipping agencies activity (-16%). On the other hand, the other segments of the activity recorded a growth rates, varying from 2% for the transport of LPG, to 54% for the transport of refined products. As to the Ship-management activity, it witnessed a substantial positive evolution of 351%.
25
� Other products:
The amount of this item rises to 3,3 Billion DA, in the year 2004, i.e. an increase rate of 50% compared to 2003. 1-2- Charges: The total amount of charges, recorded in the year 2004 rises to 11,6 Billion DA, i.e. an increase of 11% compared to the year 2003 and a realization rate of 124% compared to the forecasting of the end of the year. The operational charges that represent 93% of this amount, may be split into the following proportions:
7,6%
49,4%18,8%
1,0%
0,8%
2,5%
20,0% Mat.& Suppl.Cons.
Services
Personnel Fees
Taxes and Dues
Financial Fees
Miscellaneous Fees
Amort.& Prov. Endowments
- Consumed material and equipments : This item realized an amount of 812 million DA, i.e. a decrease of 20% compared with the year 2003.
- Services : The amount of this item witnessed a significant growth of 39% compared to the previous year, thus, moving from 3,80 Billion DA in 2003 to 5,30 Billion DA in 2004. That can be explained mainly by the increase of the refurbishment and repair expenses of the LNG carriers “Abane Ramdane” and “Larbi Ben M’hidi”.
- Staff expenses The amount of staff expenses achieved for the year 2004 rises to 2,01 Billion DA; thus remaining on the same level as that of 2003.
26
- Rates and taxes :
This item registered in the year 2004 an amount of 103 million DA, i.e. a regression of 30% in comparison with the year 2003.
- Financial fees : The financial expenses rises to 81 million DA recording a decrease of 20% compared to the previous year.
- Miscellaneous fees : The various expenses which amount to 270 million DA, witnessed an increase of 1% in comparison to the year 2003.
- Amortization and provision : The amount of this item represents for the year 2004 an amount of 2,14 billion DA, i.e a slight decrease of 2% compared to the previous year. As to the off-operation charges, the amount registered in 2004 reaches a total amount of 853 million DA, i.e a negative variation rate of 6% compared to the year 2003.
� Final accounts (Results): The activity of the company generated, in 2004, a profit net result of 1,21 billion DA against 1,30 billion DA in 2003, that is to say a reduction of 7%. The operating result registered in this year rises to 178 million DA (against 1,56 billion DA in 2003), i.e. a significant reduction rate of 89%. The added value went from 5,47 billion DA in 2003 to 3,99 billion DA in 2004, an increase of 27%. As for the self-financing capacity, it reached 3,35 billion DA in the year 2004 against 3,48 billion DA in 2003, recording, thus, a light reduction of about 4%. The significant regression of the operating result is mainly explained by the increase in the rate of charges relating to the item of “services” (+39%) because of the refurbishment works of the LNG carriers ‘’Abane Ramdane’’ and ‘’Larbi Ben M’hidi’’ However, it should be noted that this fall was compensated by the increase in the off-operational products (+99%), in particular the upturn on provisions, which had a positive impact on the net result of the year 2004.
27
2- Patrimony value:
The total Balance closed on 31/12/2004 amounts of 27,13 billion DA against 25,72 billion DA on 31/12/ 2003. ASSETS:
ASSETS (in million DA) 2004 2003 2002
Net Investments 3 464 3 145 3 479 Supplies 164 103 94 Credits 23 503 22 474 20 027
Total 27 131 25 722 23 600
LIABILITIES:
LIABILITIES (in million DA) 2004 2003 2002
Own Funds 17 762 16 579 16 772 Debts 8 156 7 840 5 933 Result 1 213 1 303 895
Total 27 131 25 722 23 600
The growth in the patrimony value of the company of about 5% between 2003 and 2004 is explained primarily by the acquisition of new investments and the increase of credits. The financing of these employments was ensured by the increase of self-financing resources due to the positive result recorded during the year.
� Investments : Bulk investments at the end of 2004 amount to 15,92 billion DA, i.e. a positive variation of 6% compared with the previous trading year. As to the net investments value, it rises to 3,46 billion DA.
� Supplies: At the end of the year 2004, the supplies value amounts to 164 million DA, recording an increase of 59% compared to the previous year that is mainly explained by the increase of supplies off the spare parts intended for the renovation of ships.
28
� Credits :
The amount of bulk credits at end 2004 reached 23,7 billion DA, i.e. a rise of 1 billion DA compared to 2003 representing a positive evolution rate of 4%. The net credits amount to 23,5 billion DA, i.e. an increase of 5% compared to the previous year. The amount of credits, at the end of 2004, is split up as follows:
63%4%
8%
5%
16%4%
Availabilities
Credits /affiliated com panies
Advances for account
Operating advances
Credits on cus tom ers
Other credits
The evolution of these credits, compared to the previous year, is detailed as follows: Unit: million DA
DESIGNATION 2004 2003 Evolution (%)
Investment credit 12 646,5 13 996,2 -10% Supply credit 7,8 11,8 -34% Credits/affiliated companies 1 057,0 8,7 (*) Advances for account 1 854,8 1 194,2 +55% Operating advances 1 197,9 1 814,8 -34% Customers credits 3 732,1 3 116,5 +20% Availabilities 2 896,4 2 226,3 +30% Debit account of the liability 308,5 316,2 -3%
TOTAL 23 701,0 22 684,7 +4%
(*) Transfer, in 2004, of the loans granted to J.V. of the item “Investment credits” to the item “Credits on affiliated companies”
29
Debts:
The amount of debts registered a positive evolution, with a rate of 4%, thus moving from 7,84 million DA , in 2003, to 8,16 million DA in 2004. The spreading of the company indebtedness, in 2004, is illustrated by the following chart:
30%
2%
21%
45%
2%
Investment debts
Supplies debts
Detentions for account
Operating debts
Other debts
Debts items evolution is presented as follows: Unit: million DA
DESIGNATION 2004 2003 Evolution (%)
Investment debts 2 470,1 2 400,6 +3% Supplies debts 122,6 166,1 -26% Detentions for account 1 719,5 1 280,7 +34% Debts on affiliated companies 0,2 11,1 -98% Operating debts 3 716,0 3 756,0 -1% Commercial advances 27,0 39,4 -31% Creditors accounts of assets 100,2 185,8 -46%
TOTAL 8 155,6 7 839,7 +4%
3- Financial structure:
The working capital went from 16,04 billion DA in 2003 to 16,58 billion DA in 2004 recording a positive variation of 3% due mainly to the increase in self-financing resources. The need for working capital witnessed a positive variation of 383 million DA going from 1,32 billion DA, in 2003, to 1,69 billion DA, in 2004. This increase in the need for working capital can be explained by the rise of 9% of operating credits. In spite of this unfavourable variation of the need for working capital, the rise of this latter allowed, not only, to face this new financing need, but, it also had a positive impact on the company’s treasury that witnessed a little increase of 1,2 %,
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II- Annual Accounts:
ASSETS
U: Million DA
Accounts Designation of accounts Trading Year 2004
Trading Year 2003
Trading Year 2002
2 INVESTMENTS 21 Incorporeal Values 7 1 1 22 Land 121 105 79 24 Production Equipments 2 865 2 849 3 332 25 Social Equipments 16 17 19 28 Investment in Progress 455 173 48
T O T A L 2 3 464 3 145 3 479
3 SUPPLIES 30 Goods - - 1 31 Material and Furniture 76 68 78 37 Supplies Abroad 88 35 15
T O T A L 3 164 103 94
4 CREDITS 42 Investments Credits 12 637 13 986 13 884 43 Supply Credits 8 12 20 44 Affiliated Companies
Credits 1 057 9 9
45 Advances for Accounts 1 855 1 194 890 46 Operating Advances 1 173 1 790 1 311 47 Customers 3 569 2 941 2 753 48 Availabilities 2 896 2 226 1 052 40 Liabilities of Debtors
Account 308 316 108
T O T A L 4 23 503 22 474 20 027
T O T A L OF ASSETS 27 131 25 722 23 600
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LIABILITIES
U: Million DA
Accounts Designation of Accounts Trading Year 2004
Trading Year 2003
Trading Year 2002
1 CAPITAL COVER 10 Registered Capital 12 000 12 000 2 200 13 Reserves 3 699 2 396 11 126 16 Other Capital Cover - - 2 256 18 Results on the point of
Appropriation - - 226
19 Provisions for losses & charges
2 063 2 183 964
T O T A L 1 17 762 16 579 16 772
5 DEBTS 52 Investment Debts 2 470 2 401 107 53 Supplies Debts 123 166 150 54 Holding for account 1 719 1 281 1 738 55 Debts towards affiliated
companies 1 11 11
56 Operating Debts 3 716 3 756 3 706 57 Commercial Advances 27 39 38 58 Financial Debts - - - 50 Assets Credit Accounts 100 186 183
T O T A L 5 8 156 7 840 5 933
88 TRADING YEAR RESULTS 1 213 1 303 895 T O T A L OF LIABILITIES 27 131 25 722 23 600
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PROPRIETARY ACCOUNTS TABLE
U: Million DA
Accounts Designation of accounts Trading Year 2004
Trading Year 2003
Trading Year 2002
70 Sale of Goods - - 8 60 Consumed Goods - - 8 80 GROSS MARGIN - - -
71 Sold Production - - - 72 Stocked Production - - - 73 Company’s Production for
Self use - - -
74 Performed Services 10 001 10 090 9 163 75 Transfer of Production
Charges 98 195 213
61 Material and Stationary Consumed
(812) ( 1 018 ) ( 1 338 )
62 Services (5 296) ( 3 800 ) ( 5 587 ) 81 ADDED VALUE 3 991 5 467 2 451 77 Miscellaneous Products 677 740 1 083 78 Transfer of Operating
Charges 111 54 1 474
63 Personnel Expenses (2 009) ( 2 009 ) ( 1 312 ) 64 Taxes and Dues (103) ( 147 ) ( 180 ) 65 Financial Fees (81) ( 102 ) ( 1 562 ) 66 Miscellaneous Expenses (269) ( 266 ) ( 237 ) 68 Redemption and Provisions
Endowment (2 139) ( 2 173 ) ( 1 105 )
83 OPERATING RESULTS 178 1 564 612 79 Off- Operating Products 2 419 1 212 3 332 69 Off- Operating Charges (853) ( 906 ) ( 2 661 ) 84 OFF-OPERATING RESULTS 1 566 306 671
880 TRADING YEAR GROSS RESULT 1 744 1 870 1 283 889 TAX IBS (531) (567) (388) 88 TRADING YEAR NET RESULT 1 213 1 303 895
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A- Analysis of the Balance-sheet Accounts: 1- Accounts of Assets :
Unit: million DA
DESIGNATION 2004 2003 2002
Net Investment 3 464,5 3 144,9 3 478,4 Supplies 163,7 103,6 94,3 Credits including : 23 502,7 22 473,8 20 027,3 - Financial investments - Availabilities
12 000,0 2 896,4
12 500,0 2 226,3
13 550,0 1 051,7
TOTAL 27 130,9 25 722,3 23 600,0
The analysis of the balance structure at the end of 2004 shows an increase of the assets reaching 5% compared with the year 2003. This rise is duly noted in the net investments (+10%), supplies (+58%), and credits (+5%).
1-1- Investments:
Bulk investments at the end of 2004 amount to 15,92 billion DA (including 92% representing the fleet value), i.e. a positive variation of 869 million DA corresponding 6% compared with the previous trading year. This positive variation may be explained mainly by the acquisition of the following investments: Unit: Million DA
DESIGNATION Amount
Incorporeal Values 7,5 Land 15,3 Buildings 469,7 Material and tooling 36,4 Transportation material 1,4 Furniture and stationery 16,4 Arrangement and installation 5,0 Social facilities 2,7 Investments in progress 318,8
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It should be noted, also, the cession of various scrapped material which gross value rises to 4,6 million DA. Net investments witnessed a positive variation of 10%. 1-2- Supplies:
At the end of the year 2004, the supplies were amounting to 164 million DA, i.e. an increase of 58% compared with the year 2003. These supplies are essentially composed of spare parts (58%), various consumables (19%), bunkers (19%) and stores (5%). 1-3- Credits:
The total amount of bulk credits at end 2004 reached 23,7 Billion DA, i.e. a rise of 4% compared with the year 2003. This amount may be split up as follows:
Unit: million DA Designation of accounts Amounts %
Investment credits (Gross) 12 646,6 53,36% Including financial investments 12 000,0 50,63%
Supply credits 7,8 0,03% Credits on affiliated companies 1 057,0 4,46% Advances for account 1 854,8 7,83% Operating advances 1 197,9 5,05% Credits on customers (Gross) 3 732,1 15,75% Availabilities 2 896,4 12,22% Debit accounts of the liability 308,4 1,30%
GROSS TOTAL 23 701,0 100%
NET TOTAL 23 502,7 -
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The classification of credits, off-availabilities, according to their degree of liquidity is illustrated by the chart hereafter:
86%
1%13%
Short term
Average termLong term
1-3-1- Investment credits:
An amount of 12,65 billion DA was recorded at end 2004, i.e. a reduction of 10% compared to 2003. This decrease may be explained mainly as follows:
• Transfer of long term loans of an amount of 1,05 billion DA, granted from ANGTC and MLTC Joint-ventures to credits on affiliated companies.
• A decrease of a rate of 4% in the amount of the financial investments, going from
12,5 billion DA in the end 2003 to 12 million DA in the end 2004.
• A regression of a rate of 4% in the amount of the advances on investments to different suppliers, going from 543 million DA in 2003 to 520 million DA in 2004.
Considering these decreases, it is necessary to note the increase in the amount allocated to the loans for the personnel in the case of “purchase vehicles”. This amount went from 34 million DA in 2003 to 74 million DA in 2004. In addition, the value of the financial investments of the company rises, to the date 12/31/2005, to an amount of about 49 million DA.
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These stocks are held on the following companies:
Unit: Thousands DA Companies Participation Rates Amounts
MEDIFRET 100% 29 352 NAJDA-MAGHREB 100% 10 310 AVICAT 20% 4 000 ANGTC 25% 1 816 MLTC 25% 3 631 SBSC 30% 22
For this year, the depreciations noted on the stocks of the subsidiary company NAJDA MAGHREB, compared to their account value to the date12/31/2004, were provisioned of an amount of 10 million DA. 1-3-2- Supply credits:
These credits amounting to 8 million DA represent mainly advances on supplies realized to different foreign suppliers. This item witnessed a decrease of 33% compared to 2003. 1-3-3- Credits on associated and affiliated:
The amount of these credits rises to 1,06 billion DA. This item records credits amounting to 8 million DA held on the subsidiary company NADJDA MAGHREB as on the long term loans granted to ANGTC and MLTC joint ventures for 877 million DA and 172 million DA each one. It should be recalled that these loans are intended for the financing, in ‘’equity’’, the acquisition operations of the methane carriers ‘’Lalla Fatma N’soumer ‘’ and ‘’Med Max I’’. 1-3-4- Advances for account:
The amount of advances for account went from 1,19 billion DA, in 2003, to 1,85 billion DA, in 2004, i.e. an evolution rate of 36%. This item is composed essentially of the payments for account (98%) and of the recoverable taxes (2%).
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The payment for account relate mainly the advances regulated by the shipping agencies of the Company for the account of their customers ship-owners (53%) and the commercial expenses (bunkers and disbursement account) paid by HYPROC on behalf of Sonatrach (46%). 1-3-5- Operational advances:
Operational advances amount to 1,20 billion DA, in 2004, i.e. a decrease of 34% in comparison to the year 2003. This item is mainly composed of advances on rates and taxes (56%), of advances on disbursement accounts (13%), advances on services (27%) and expenses counted in advance (4%). 1-3-6- Credits on customers:
The gross credits balance detained on customers goes from 3,12 billion DA at end of 2003, to 3,73 billion DA at end of 2004, i.e. an increase of 20%. The split of these credits is illustrated by the following chart:
90,78%
5,87% 3,29% 0,05%
National customers
Foreign customers
Receivable products
Invoice to be ascertained
The endowments to the provisions for credits depreciation up to 12/31/2004 amount to 198 million DA and may be spread as follows: - National customers: 111 millions de DA - Foreign customers: 52 millions de DA - Advances to the Ship-agents: 25 millions de DA - Participations items: 10 millions de DA
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The credit collection delay, including payments for account, witnessed an improvement of 20% during the trading year 2004. Indeed, it goes from 90 days of turnover in 2003, to 108 days of turnover in 2004. This increase is due mainly to the too long delays of refunding by Sonatrach for disbursement accounts paid, for its account, by HYPROC. 1-3-7- Availabilities:
The investments availabilities, at the end of the year 2004, amount to 12 billion DA, i.e. a decrease of 4% in comparison with the year 2003 that corresponds to a sum of 500 million DA. As for the availabilities included in the current accounts, they amount to billion DA, i.e. an increase of 30% in comparison with the previous year. So, the total amount of the availabilities witnessed an increase of 1,2% compared to the year 2003. 2- Liability accounts:
Unit: Million DA
DESIGNATION 2004 2003 2002
Net funds 18 975,3 17 882,6 17 667,1 Investment debts 2 470,1 2 400,6 106,6 Supplies debts 122,6 166,1 150,0 Detentions for accounts 1 719,5 1 280,7 1 737,9 Debts on affiliated companies 0,2 11,1 11,1 Operating debts 3 716,0 3 756,0 3 705,9 Commercial advances 27,0 39,4 37,9 Creditors accounts of assets 100,2 185,8 183,5
TOTAL 27 130,9 25 722,3 23 600,0
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2-1- Capital cover:
The amount of the capital cover at the end of the year 2004, reaches 18,98 billion DA and may be split as follows:
Unit: Million DA
CAPITAL COVER Amounts
- Registered capital 12 000,0 - Reserves 3 699,7 - Provisions for losses and charges 2 062,8 - Net result year 2004 1 212,9
This item witnessed a positive variation of 6% in comparison with the previous year. This positive variation is due mainly to the positive result registered in 2004. It is to note, on the other hand, the reduction recorded on the level of the provisions for losses and charges compared to the previous year. These provisions may be split as follows:
9,6%3,4%
9,1%
0,3%
77,6%
Losses on transactionson foreign currencyRemuneration of theparticip. ItemsBanking allowances
Litigation in Justice
Major repairs
2-2- Debts:
The Company indebtedness witnessed an increase around 4%, going from 7,84 billion DA, at end 2003, to 8,16 billion DA, at end 2004. The significant increase was registered in the item of ‘’Detentions for accounts’’ which recorded an increase of 34%.
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The classification of the debts according to the degree of current liability is illustrated by the following chart:
72%
28%
Sort term
Long term
2-2-1- Investment debts:
The amount of investment debts, at end 2004, rises to 2,47 billion DA, i.e., an increase of 3% in comparison with the year 2003. Mainly constituted of the Exchequer participative stocks (96%), of loans inherited at the time of the reorganization (3%) and of debts towards the investment creditors (1%). 2-2-2- Short- term debts:
The short-term debts went from 5,59 billion DA up to 12/31/2004, i.e. an increase of about 6%. The split up of short-term debts can be illustrated by the following diagram:
30,78%
0,00%66,53%
0,48% 2,20%
Debts toward suppliers
Detention for account
Debts/affiliatedcompaniesDebts on operatingexpensesCommercial advances
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• Supplies debts : This item witnessed a decrease of 26%, going from 166 million DA, in 2003, to 123 million DA in 2004. • Detentions for account: Detentions for account represent primarily debts towards harbours companies, public administrations (Customs, Taxes, Social Security). This item registered a decrease of 34% compared to the preceding year. • Operational debts : The amount of operational debts witnessed a regression of about 1% compared to the year 2003. These debts are detailed by the following chart:
25,9%
3,4%
14,6%
49,6%
6,0%0,4%
Services
Staff
Dues
Financial expenses
Miscellaneous expenses
Social organisms
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B- Analysis of management accounts: 1- Products: 1-1- Performed services:
In the year 2004, the company reached an amount of 10 billion DA, i.e. a slight decrease of 0,9% compared with 2003. The decrease of the turnover was more significant at the level of the following items:
- LNG transportation : -10%, - Transportation of crude-oil and condensate: - 7%, - Transportation of non-liquid products : -32%, - Consignment activities: -16%.
These reductions were lightened by the growth recorded on the level of the following activities:
- LPG transportation : +2%, - Transportation of refined products : +54%, - Ship-management services: +351%.
1-2- Transfer of charges:
The transfer of charges is amounting to 209 million DA for the year 2004, i.e. a regression of 16% compared to the year 2003. This amount is constituted mainly of certain charges of the former years, not recorded in time, relating to repair and maintenance expenses, to the use of spare parts for ships, to personnel fees and social security contribution, to rents and to telecommunication expenses. Unit: million DA
DESIGNATION 2004 2003 2002
Transfer of production charges 98,1 195,5 213,8 Transfer of operation charges 110,5 53,9 1 473,9
TOTAL 208,6 249,4 1 687,7
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1-3- Miscellaneous products:
Miscellaneous products deal essentially with the financial products generated from the investments operated during the year 2004, from interest rate obtained for the loans affected for ANGTC and MLTC Joint-ventures, from address commissions related to the chartering of ships and on payments for Sonatrach account and different discounts… Miscellaneous products registered in 2004, amount to 677 million DA, i.e., a decrease of 8% compared with the year 2003. The financial products representing 66% of this item in 2004, witnessed a decrease of 4% compared with the year 2003. This regression can be explained mainly by the decrease of the rate of the invested availabilities. As to the other miscellaneous products, they registered also a regression of 15%. Unit: million DA
DESIGNATION 2004 2003 2002
Financial products 447,3 467,7 933,6 Other products 230,0 272,2 149,5
TOTAL 677,3 739,9 1 083,1
1-4- Off-operation products:
The off-operation products are constituted mainly of upturn fund of the year 2003 (mainly bulk repairs), of the various trading-years products, of exchange differences, of the payment returns with regard to insurance and litigations… This item recorded a positive variation of 99% in relation to the year 2003. This variation can be explained mainly by the increase of the upturn fund amount (152%).
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Off-operation products are detailed as follows:
Unit: million DA DESIGNATION 2004 2003 2002
Cession of investment products 0,4 2,7 5,1 Upturn on previous years charges 2 092,1 831,7 2 899,7 Previous years products 26,4 61,4 52,4 Exceptional products 300,1 316,8 374,8
TOTAL 2 419,0 1 212,6 3 332,0
2- Charges:
2-1- Consumed material and equipments:
The amount realized for the year 2004 rises to 812 million Dinars, i.e. a decrease of 20% compared with the year 2003. This decrease is particularly noted in the consumption of spare parts (-29%), bunkers/lubricants (-31%) and consumed products (-27%). On the other hand, it is noted the increase of provisions of 10%. The amount of material and equipment represents 8%, of the turnover for the year 2004, and 8% of operational charges. This item is detailed as the following table:
Unit: million DA
DESIGNATION 2004 2003 2002
Maintenance products 37,5 51,8 40,3 Small tools 17,7 26,9 15,3 Bunkers and lubrificant 121,0 174,1 170,9 Spare parts 351,3 496,3 852,6 Provisions 183,7 166,8 164,6 Stationary 14,2 12,7 11,6 Electrical equipments 21,6 22,8 16,6 Hostelry equipment 12,7 10,2 10,3 Chemical products 23,3 26,9 25,7 Other material 29,0 29,9 30,4
TOTAL 812,0 1 018,4 1 338,3
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2-2- Services:
The amount of the services realized in the year 2004 rises to 5,30 billion DA, i.e., a positive variation of 39% in comparison with the year 2003, that can be explained mainly by :
- The increase of the refurbishment and repair expenses of LNG carriers(72%) due, in part, to the refurbishment works of the LNG carriers ‘’Larbi Ben M’hidi’’ and ‘’Abane Ramdane’’. - The growth of the chartering expenses of ships (23%).
The amount of services represent for the year 2004, 53% of the turnover and 49% from the amount of operational charges. The main categories composing this chapter are:
Unit: million DA
DESIGNATION 2004 2003 2002
Transportation 0,5 0,4 0,9 Rent and rental charges 2 703,9 2 190,6 1 254,3 Maintenance and repairs 2 153,2 1 249,4 3 955,2 Documentation 14,5 15,5 9,3 Remuneration of third parties 235,7 208,8 243,0 Advertising 2,8 1,6 3,0 Travels and receptions 147,6 101,1 85,5 Post-office and telecommunications 37,7 32,6 36,3
TOTAL 5 296,0 3 800,0 5 587,5
2-3- Staff expenses:
The amount of staff’s expenses achieved for the year 2004 rises to 2 billion DA, thus, remaining at the same level as that of the year 2003. This item represents 20% from the turnover and 19% from the amount of operational charges.
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The staff’s expenses are detailed as follows:
Unit: million DA
DESIGNATION 2004 2003 2002
Staff remuneration 1 002,9 1011,2 760,8 Indemnities/services 429,4 375,4 331,9 Incentive profit 230,0 161,6 - Contribution to the social activities 54,9 39,4 30,3 Social assessments 291,6 421,1 189,2
TOTAL 2 008,8 2 008,7 1 312,2
2-4- Rates and taxes:
The amount of the rates and taxes witnessed for the year 2004 totals 104 million DA, i.e. a decrease of 30% in comparison with the year 2003, due mainly to the decrease registered in the following items:
- Customs duties paid on the contracts of importation of spare parts and equipment intended for the repair of the fleet (-34%), - Registration taxes (-95%), - Lump sum remittance (-19%), - Special taxes (-51%).
The amount of rates and taxes represents for the year 2004, 1% of the turnover and 1% of operational charges.
Unit: million DA DESIGNATION 2004 2003 2002
Lump sum remittance 25,1 31,1 34,4 Tax /Professional activity 41,8 42,0 47,5 Special taxes 6,4 13,2 - Registration taxes 0,9 17,0 0,7 Customs duties 28,8 43,6 97,3 Other fees and taxes - 0,2 -
TOTAL 103,0 147,2 179,9
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2-5- Financial fees:
The financial expenses are essentially constituted of incomes on contribution stocks detained by the Public Exchequer as well as the different banking commissions. The amount of financial expenses realized in 2004 rises to 81 million DA, i.e., a decrease of 20% in comparison with the year 2003. This fall can be explained mainly by the decrease in the amount of the interests of the contribution stocks (-24%). The financial expenses amount represents for the year 2004, 0,8% of the turnover and 0,8% of the total of operational charges.
Unit: million DA
DESIGNATION 2004 2003 2002
Interests on loans 54,9 72,3 1 533,1 Banking interests 0,6 0,1 0,4 Banking fees 19,9 17,3 16,3 Commission on opening of credit 5,4 11,9 11,9
TOTAL 80,8 101,6 1 561,7
2-6- Miscellaneous fees:
The various expenses registered during this year which amount to 270 million DA, are constituted of the patrimony insurance charges (92%) and other miscellaneous expenses (8%). This witnessed an increase of 1% in comparison to the year 2003. The other various expenses that amount to 20 million DA deal with representation fees, director’s fees, contributions and donations, sponsoring, rights of passage and address commissions on freight. The various expenses amount represents, for the year 2004, 3% of the turnover and 3% of the operational charges amount.
Unit: million DA
DESIGNATION 2004 2003 2002
Insurance charges 249,2 246,3 227,9 Other miscellaneous expenses 20,3 19,6 8,6
TOTAL 269,5 265,9 236,5
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2-7- Amortization and provisions endowments:
The amount of the endowments to amortizations and to constitution provisions for the year 2004 rises to 2,14 billion DA, i.e., a decrease of 2% in comparison with the year 2003. This decrease may be explained mainly by the regression of the amount of constituted provisions during the year 2004 (-3%) to face the great refurbishment works of the ships.
Unit: million DA
DESIGNATION 2004 2003 2002
Endowments to amortizations 538,5 517,4 509,4 Endowments to provisions 1 600,3 1 655,6 596,0
TOTAL 2 138,8 2 173,0 1 105,4
The amount of the endowments to amortizations for this year reaches to 538 million DA, i.e., an increase of about 4% in comparison to the year 2003, due to the news investments. The endowments to amortizations and provisions represent, for this year, 21% of the turnover and 20% of the operational charges amount. 2-8- Off-operation charges:
This item, being in decrease of 6% compared with 2003, reaches an amount of 853 million DA.
This item is constituted mainly of endowment and exceptional expenses (69%), of the previous years’ charges (24%) of the upturn products on previous years (7%).
The noted fall was recorded mainly on the level of the charges of the former years (-16%) and of the upturn products on previous years (-41%) The exceptional endowments, of an amount of 298 million DA, are essentially constituted of provisions for probable currency rate exchange (67%) and those for depreciation credits (26%).
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The exceptional charges of an amount of 291 million DA, are mainly constituted of currency rate exchange for 86% and of variations of inventory on supplies for 12%. The charges of the previous years, of an amount of 209 million DA, are composed as follow:
- Material and furniture (spare parts and bunkers): 14%, - Services (chartering hires, repair…): 34%, - Personnel expenses: 52%,
Unit: million DA
DESIGNATION 2004 2003 2002
Salvage value of the transferred investments 0,2 0,2 5,8 Unrecoverable Debts - 2,7 - Charges of previous years 208,6 249,7 1 687,8 Upturn on products of the previous years 55,4 94,4 335,8 Exceptional charges 290,6 300,2 202,4 Exceptional endowments 298,3 259,2 428,9
TOTAL 853,1 906,4 2 660,7
3- Final accounts (Results):
The company achieved in year 2004, an operating result of 178 million DA, i.e. a decrease of 89% in comparison to the year 2003. This regression is due mainly to the increase of the item of services. Off-operating result went from 306 million DA in 2003 to 1,56 billion DA in 2004, thus, recording a positive variation of 411%. The net result achieved in 2004 amounts to 1,21 billion DA, i.e. a decrease of 7% compared to the year 2003. Unit: million DA
DESIGNATION 2004 2003 2002
Added value 3 991,0 5 466,7 2 451,3 Operating results 177,8 1 563,9 612,5 Off-operating results 1 565,9 306,2 671,3 Gross Output 1 743,7 1 870,2 1 283,8
Net result 1 212,9 1 303,5 895,4
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FINANCIAL RATIOS
RATIOS 2004 2003 2002
Profit by number of shares (in million DA) (*) 0,101 0,109 0,407
Net result/ Capital cover 6% 7% 5%
Net result/ Turnover 12% 13% 10%
Operating result/ Turnover 2% 16% 7%
Added value/ Turnover 40% 54% 27%
Turnover/ Total assets 37% 39% 39%
Self-financing/ Turnover 34% 34% 20%
Investment Debts/ Capital cover (**) 13% 13% 1%
Capital cover/ Permanent capitals 89% 89% 94%
Permanent capitals/ Immobilized assets 4,57 4,92 4,73
Total debts/ Total Assets 30% 30% 25% (*) Number of shares in 2003 and 2004:12000 against 2200 in 2002. (**) Upgrading of the participative stocks as investment debts in 2003 and 2004.
FINANCIAL STRUCTURE
Unit : Million DA 2004 2003 2002 VARIATION
DESIGNATION 03/04
A- PERMANENT FUNDS 21 231 20 138 17 751
- Capital cover 18 975 17 882 17 666
- Medium & long-term debts 2 256 2 256 85
B- IMMOBILIZED ASSETS 4 646 4 096 3 753
1- WORKING CAPITAL (A-B) 16 585 16 042 13 998
C- OPERATING ASSETS 7 589 6 900 5 244
- Supplies 164 103 94
- Credits 7 425 6 797 5 150
D- SHORT-TERM DEBTS 5 900 5 584 5 848
2- NEEDS FOR WORKING CAPITAL(C-D) 1 689 1 316 -604
FINANCING SURPLUS (1-2) 14 896 14 726 14 602
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Notes on the accounting referential: The annual accounts are established in conformity with the rules decreed by the Algerian National Financial Chart together with the accounting principals generally used and the specific rules to the maritime activity. The company doesn’t show for this trading year the consolidated accounts including the financial statements of its subsidiaries. The accounts of the company and its subsidiaries will be consolidated within SONATRACH Group. The company applied the two re-evaluation physical investments being legal and compulsory (Decrees N°90-103 of March 27, 1990 and N°93-250 of October 24, 1993). The re-evaluation gap was partly transferred to the company’s registered capital at the time of its legal transformation into a joint-stock company. The other part has been transformed as participation bonds in favour of Public Exchequer. The company didn’t find it useful to apply a third optional re-evaluation planned by the Decree N°96-336 of October12, 1996 as it doesn’t procure any fiscal advantage 1- Investments:
1-1- Investments-Redemption Method : The investment redemption method adopted by HYPROC is the straight-line depreciation. The redemption duration used for the company’s main investments are as indicated below:
Nature of Investment Duration
Methane Carriers 30 years Other ships 15/20 years Buildings 20 years Material and office furniture 10 years Hardware 5 years Software 3 years Vehicles 5 years Social facilities 10 years Other production equipment 10 years
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1-2- Incorporeal Values: This account records the value of computer software acquired or developed by the company. This value corresponds to the cost of acquisition or the cost of development of the said software. 1-3- Production Equipments: This item records all company’s means of production, either direct (ships) or indirect (buildings, office furniture, material and tool equipment…). They are estimated in accordance with the acquisition cost or the realization cost. 1-4- Social Equipments: These account records different goods of furniture and buildings dedicated to social use. They are estimated in accordance with the acquisition cost or the realization cost. 1-5- Current Investments: This item records the investments that are under realization 2- Stocks:
HYPROC, being a provider of Service Company, detains stocks that deal essentially with material and furniture supplies. The stocks on board ships represent mainly bunkers, spare parts and store supplies. The bunkers and stores stocks’ value was straightened according to the physical inventories estimated on the basis of the last cost of acquisition. The cost of bunkers regarding ships that are under time-charter contracts, are for charterers’ account, therefore, they’re not included in the accounts. The company’s stocks abroad consist mainly of spare intended to the ships repairs and that are stored generally in different ship-yards.
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3- Credits: 3-1- Investment Credits:
This account records the participation and investment stocks, loans, financial investments and other investment credits. It should be noted that the loans, intended for the financing in ‘’equity’’ the investment cost of the acquisition of ships, were transferred during this year to the item “credits on affiliated companies”. The participation stocks are registered to their acquisition value at their inflow to the assets. At the end of the year, they are assessed to their accounting value (Net Assets) according to their share in the patrimony of the company. If any depreciation noticed, it is earmarked for reserves. The stocks detained on behalf of foreign companies were updated to the foreign exchange rates in force at the date of closing accounts. 3-2- Credits on affiliated companies: This account records the credits on affiliated companies being mainly company’s subsidiaries (either loan granted to J.-V., advances or other credits). 3-3- Operation Fund Advances: This item consists of the different fund advances made to service suppliers, to the staff, to the taxes administration… The account « advances for service » records essentially disbursement accounts’ advances made in favour of ship-agents and whose documents were not forwarded to the company.
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3-4- Foreign current credits:
The credits made in foreign currencies are recorded in DA in accordance to the monthly exchange average rate in force at the time of invoicing. After payment, the exchange differences are expressed in terms of charges or in exceptional products as the case may be. Foreign currency credits were updated in accordance with the exchange rate in force at the date of the accounts closing. The latent losses are the subject of a reserve in accordance with the conservatism principle. 3-5- Foreign currency availabilities:
Bank operations made on foreign currency bank accounts are recorded in Dinars according to the average-balanced-exchange rate. The availabilities in foreign currencies are updated in conformity with the exchange rate in force at the closing date. 4- Own funds (Capital Cover): 4-1- Registered Capital:
The registered capital of the company has increased in the year 2003, from 2,2 Billion DA to 12 Billion DA, by optional incorporation reserves. 4-2- Funds for losses and charges:
This item consists of the funds for probable losses (litigation, charges likely to happen) and funds for charges to split on several years (great ship repairs). 5- Debts: 5-1- Contribution stocks:
The contribution stocks are detained on the company by the Public Exchequer. Their payment is variable according to the company’s results and the rate of rediscount of the Bank of Algeria. These stocks which appeared among the own stocks were reclassified in debts, in 2003, on recommendation of the Company’s Auditor.
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5-2- Other detentions for account:
The account “Other detentions for account’’ essentially records the expenses made by ship-owners to the company’s ship-agencies in favour of ports, Customs and other suppliers… 5-3- Foreign currency debts:
The debts expressed in foreign currencies are recorded in Dinars according to the average-monthly exchange rate being in force at the moment of the accounting verification. After payment, the exchange differences are expressed in terms of charges or in exceptional products as the case may be. The debts in foreign currency were updated to the exchange rate in force at the date of accounts closing. However, as a safety measure, latent losses are provisioned.
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Independent Auditors' Report