CMB announces final 2012 results

During its meeting of 26 March 2013, CMB’s board of directors approved the final annual accounts as per 31 December 2012.
The consolidated result for 2012 amounts to USD 130.874.000 (2011: USD 137.150.000).
Bocimar’s contribution to the 2012 consolidated result amounts to USD 51.950.000 (2011:
USD 107.705.000).
This contribution takes into account a capital gain of USD 51.735.000 realised on the sale of  FMG shares and a capital loss of USD 2.719.000 realised on the sale of a vessel within the framework of a restructuring of a joint venture.
Due to the “low” long term prospects the policy of long term coverage for the fleet was not continued and has therefore reached a low level – the lowest for 10 years. Bocimar’s exposure on the spot market is consequently larger than ever, but by the same token it is also ideally placed to take advantage of a revival of the freight markets. Moreover, the fleet is currently widely diversified with emphasis on the Handysize and Capesize types, the two segments that show a better age profile by comparison to the current newbuilding order book.
Bocimar believes that the combination of increased scrapping, the steeply diminishing forward newbuilding book and the seriously reduced new ordering could lead to a better balance between supply and demand later in 2013 or first half 2014.
On 1 March 2013 Bocimar cancelled the Tsuneishi SC 145 newbuilding. As the yard was not able to respect the contractually determined delivery date Bocimar decided to cancel the order for this vessel. All advances paid – including interest – were reimbursed on 11 March 2013.
Earlier this year Bohandymar Limited – a 100% subsidiary of CMB – ordered an additional 4 Handysize ECO-type bulk vessels (36.000 dwt) from Samjin Shipbuilding Industries Korea (Samjin) on very competitive conditions. The delivery of the first two units is scheduled for 2014 and the remaining units are scheduled for 2015. These 4 vessels are sister vessels of the 6 units Bocimar ordered in 2011.
In view of the current state of the dry bulk markets, the Group carefully reviewed all indicators of potential impairment such as the current low freight rate environment as well as the current market value of the fleet compared to its carrying amount. The impairment test performed in respect of the Bocimar fleet, was performed on the same basis as described in the 2011 consolidated accounts.
The test did not result in any need to record an impairment loss.
The Group will however continue to closely monitor the developments in the dry bulk markets and review possible impairment indicators again as per 30 June 2013.
The board of directors will propose to the annual general meeting of shareholders of 14 May 2013 the distribution of a gross dividend of EUR 0,08 per share (EUR 0,06 net per share).
Subject to the approval of the annual general shareholders’ meeting, this dividend will be made payable on 24 May 2013.
As a reminder, the dividend paid in May 2012 took into account an additional gross dividend of EUR 0,52 per share following the sale of the Clarksons shares early 2012.
Source: Compagnie Maritime Belge (CMB)