UPDATED UNAUDITED FINANCIAL INFORMATION PROVIDED TO THE HIGH COURT OF THE REPUBLIC OF SINGAPORE
1. Introduction
1.1 The Board of Directors (the “Board”) of EMAS Offshore Limited (the “Company” and together
with its subsidiaries, the “Group”) wishes to refer to the announcement released by the
Company dated 26 September 2017 where the Company announced that the High Court of
the Republic of Singapore (the “High Court”) had issued a Moratorium with respect to each of
the Company, Emas Offshore Pte Ltd (“EOPL”), and Emas Offshore Services Pte. Ltd
(“EMSS”) (the “Singapore Filing Entities”) pursuant to which, the High Court inter alia
ordered the Singapore Filing Entities to submit to the Court the following:
(a) report on the valuation of each of its significant assets;
(b) forecasts and the profitability and the cash flow from the operations of the Group, EOPL
and EMSS
1.2 Please find attached hereto the information provided to the High Court in respect of the above
stated orders. The Board wishes to emphasise that the information attached hereto has not
been subject to an audit review.
2. General
The Company will make further announcements in compliance with the listing requirements of
the Oslo Børs when there are material developments in respect of the Restructuring.
This announcement is subject to disclosure in accordance with section 5-12 of the Norwegian
Securities Trading Act.
By Order of the Board
Mr Lee Kian Soo
Director
2 October 2017
EMAS Offshore Limited
Financial Position as at 31-Jul-17
ASSETS
Amount
(US$)
Estimated
Realisable Value
(US$) Notes
Assets not charged
Cash and bank balances 2,060,604 2 ,060,604
Other receivables 66,545 - Note 1
Deposits 526,537 3 6,198 Note 2
Prepayments 307,379 - Note 3
Amount due from intercompanies 508,494,381 - Note 4
Investment in subsidiaries 27,867,005 - Note 5
Investment in joint venture companies 103,391,990 - Note 6
Total assets not charged 642,714,441 2 ,096,802
Assets subject to charges
Other investment - -
Total assets subject to charges - -
Total assets 642,714,441 2 ,096,802
LIABILITIES Amount (US$)
SECURED LIABILITIES
Liabilities secured by charges
Bank loans and payables 1 04,673,986
Total Secured Creditors 1 04,673,986
UNSECURED LIABILITIES
Preferred Unsecured Creditors
Provision For Income Tax 1 33,306
GST net payable 3 ,276
Total Preferred Unsecured Creditors 1 36,583
Non-preferential unsecured Creditors
Bank loans and payables 1 94,525,481
Contingent claims 7 5,035,110
Other payables 1 38,433,902
Amount due to intercompanies 3 99,396,975
- Ezra/ Ezra subsidiaries 1 57,520,735
- EOL/ EOL subsidiaries 2 41,876,177
- EOL/ EOL JV or associates 6 3
Total Non-preferential unsecured Creditors 8 07,391,469
Total Unsecured Creditors 8 07,528,051
Total Liabilities 9 12,202,038
Net Assets / (Liabilities) (910,105,236)
EMAS Offshore Limited
Financial Position as at 31-Jul-17
Notes
Note 1 - Other receivables
Note 2 - Deposits
Note 3 - Prepayment
Prepayment amount would be offset against amount in arrears hence assessed to be not recoverable.
Note 4 - Amount due from intercompanies
Note 5 - Investment in subsidiaries
Note 6 - Investment in joint venture companies
Deposits that are held with vendors with no outstanding arrears assessed to be 100% recoverable. Other deposits such as retainer fees to offset against
amount in arrears are assessed to be not recoverable.
Recoverability of intercompany receivables is based on each intercompany's distribution of its estimated realisable assets amongst its unsecured creditors.
As each intercompany has insignificant estimated realisable assets after distribution to its secured creditors, amount due from intercompanies is estimated
to be nil.
Joint venture companies are in estimated net total liability position with no excess recoverable value within the Joint venture company's accounts for
distribution to shareholders.
Significant assets of the company are vessels held within subsidiaries of the company. These vessels are charged assets (with the exception of Lewek
Lea) with insufficient estimated realisable value to pay off the secured debt. Subsidiaries are in estimated net total liability position with no excess
recoverable value within the subsidiary's accounts for distribution to shareholders.
Pertain to payment for setting up of new entity, assessed to be non-refundable.
EOL Vessel Listing
S/N Entity Vessel name Vessel type
Vessel
tonnage BHP Year built
1 Emas Offshore (L) Bhd Lewek Scarlet AHTS NA 1 2,240 2009
2 Emas Offshore (L) Bhd Lewek Plover AHTS NA 1 0,800 2008
3 Emas Offshore (L) Bhd Lewek Petrel AHTS NA 1 0,800 2008
4 Emas Offshore (L) Bhd Lewek Stork AHTS NA 1 2,240 2005
5 Emas Offshore (L) Bhd Lewek Ebony AHTS NA 5 ,220 2007
6 Emas Offshore (L) Bhd Bayu Martin AHTS NA 7 ,340 2007
7 Lewek Alphard Shipping Pte Ltd Lewek Alphard PSV 5 ,000 9 ,928 2014
8 Lewek Altair Shipping Pvt Limited Lewek Altair PSV 3 ,100 6 ,222 2009
9 Lewek Altair Shipping Pvt Limited Lewek Atlas PSV 3 ,570 5 ,444 2007
10 Lewek Antares Shipping Pte Ltd Lewek Atria PSV 3 ,266 6 ,222 2010
11 Lewek Antares Shipping Pte Ltd Lewek Antares PSV 2 ,900 6 ,222 2011
12 Lewek Crusader Shipping Pte Ltd Lewek Crusader OAV/Barge NA NA 2011
13 Lewek Aries Pte Ltd Lewek Aries PSV 3 ,486 7 ,080 2008
14 Lewek Conqueror (BVI) Ltd Lewek Conqueror Barge NA NA 2004
15 Lewek Chancellor Shipping Pte Ltd Lewek Chancellor Barge NA NA 2007
16 Lewek LB1 Shipping Pte Ltd Lewek LB1 Barge NA NA 2006
17 Lewek LB1 Shipping Pte Ltd Lewek Lea Barge NA NA 2006
18 Lewek Shipping Pte Ltd Lewek Fulmar AHTS NA 3 0,000 2011
19 Lewek Shipping Pte Ltd Lewek Sapphire AHTS NA 5 ,040 2005
20 Lewek Shipping Pte Ltd Lewek Harrier AHTS NA 8 ,000 2006
21 Lewek Shipping Pte Ltd Lewek Ivory AHTS NA 5 ,200 2001
22 Lewek Shipping Pte Ltd Lewek Andes PSV 5 ,279 8 ,716 2012
23 Lewek Shipping Pte Ltd Lewek Aquarius PSV 5 ,380 8 ,716 2012
24 Lewek Shipping Pte Ltd Lewek Teal AHTS NA 2 1,456 2012
25 Lewek Shipping Pte Ltd Lewek Penguin AHTS NA 1 0,800 2007
26 Lewek Shipping Pte Ltd Lewek Leopard AHTS NA 5 ,150 2011
27 Lewek Shipping Pte Ltd Lewek Lion AHTS NA 5 ,150 2010
28 Lewek Shipping Pte Ltd Lewek Roller AHT NA 4 ,000 2006
Emas Offshore Pte Ltd
Financial Position as at 31-Jul-17
ASSETS Amount (US$)
Estimated
Realisable Value
(US$) Notes
UNSECURED ASSETS
Cash and bank balances 5,059,178 5,059,178
Stocks 1,045,849 - Note 1
Fixed assets 101,940,579 - Note 2
Trade receivables 14,437,878 14,437,878 Note 3
GST receivable 87,937 87,937
Deposits 93,674 93,674 Note 4
Prepayments 3,384,866 - Note 5
Amount due from intercompanies 18,816,788 - Note 6
Total unsecured assets 144,866,749 19,678,667
Total assets 144,866,749 19,678,667
LIABILITIES Amount (US$) Notes
SECURED CREDITORS
Secured contingent liabilties 73,366,612
Total Secured Creditors 73,366,612
UNSECURED CREDITORS
Trade and other payables 126,638,818
Accruals and Provisions 12,608,441
Amount due to intercompanies 143,528,613
Ezra/Ezra Subsidiary 3,055,639
EOL/EOL Subsidiary 132,085,224
EOL/ EOL JV or associates 8,387,750
Total Unsecured Creditors 282,775,872
Total Liabilities 356,142,485
Net Assets / (Liabilities) (336,463,817)
Notes
Note 1 - Stocks
Pertains to fuel on board vessels hence assessed to be not recoverable.
Note 3 - Trade receivables
Deemed to be collectible based on historial collection pattern and receipts subsequent to 31 July 2017 .
Note 4 - Deposits
Deposits pertain to mainly tender deposits that are assessed to be refundable.
Note 5 - Prepayments
Prepayment amount would be offset against amount in arrears hence assessed to be not recoverable.
Note 6 - Amount due from intercompanies
Note 2 - Fixed assets
Fixed assets comprise (i) SLB Vessels which would be offset against amount in arrears hence assessed to be not
recoverable, and (ii) dry docking amount which is not realisable.
Recoverability of intercompany receivables is based on each intercompany's distribution of its estimated realisable assets
amongst its unsecured creditors. As each intercompany has insignificant estimated realisable assets after distribution to its
secured creditors, amount due from intercompanies is estimated to be nil.
Emas Offshore Services Pte Ltd
Financial Position as at 31-Jul-17
ASSETS
Amount
(US$)
Estimated Realisable
Value (US$) Notes
UNSECURED ASSETS
Cash and Bank 1,362,674 1,362,674
Fixed assets 142,713 75,789 Note 1
Stocks 429,474 53,681 Note 2
Other receivables 10,190,509 328,123 Note 3
Deposits 32,235 17,826 Note 4
Prepayments 30,468 - Note 5
GST receivable 20,399 20,399
Amount due from intercompanies 72,597,791 - Note 6
Total assets 84,806,263 1,858,492
LIABILITIES Amount (US$)
UNSECURED CREDITORS
Preferred Creditors
Provision For Income Tax 1,549,485
Total Preferred Creditors 1,549,485
Non-preferential Unsecured Creditors
Trade and other payables 18,213,155
Accruals 3,869,944
Amount due to intercompanies 27,588,392
Ezra/Ezra Subsidiary 8,879,673
EOL/EOL Subsidiary 18,708,718
Total Non-preferential Unsecured Creditors 49,671,491
Total Unsecured Creditors 51,220,976
Total Liabilities 51,220,976
Net Assets / (Liabilities) (49,362,484)
Notes
Note 1 - Fixed assets
Note 2 - Stocks
The value of EMSS stocks is considered as nil except for certain capital inventory, which is estimated to yield 25% recovery.
Note 3 - Trade receivables
Note 4 - Deposits
Note 5 - Prepayment
Note 6 - Amount due from Intercompanies
Fixed assets consist of a vehicle that was realised at SGD 103,800 (USD 75,789) in Sep 17, and also COMPAS Software that is assessed to have
no realisable value.
Pertains mainly to insurance prepayment which are assessed to be non-refundable as the amount will be used to offset outstanding arrears.
Recoverability of intercompany receivables is based on each intercompany's distribution of its estimated realisable assets amongst its unsecured
creditors. As each intercompany has insignificant estimated realisable assets after distribution to its secured creditors, amount due from
intercompanies is estimated to be nil.
Comprise mainly receivables from charterers for drydock costs, which are assessed to be unrecoverable. The amount also includes finance lease
receivable for sale of EAC Stimulator, estimated to be recovered at 10%.
Deposits pertaining to payments to agencies are assessed to be fully refundable while fund retention for salaries are assessed as not recoverable.
Emas Offshore Group Cash flows projection
6 Month Operational Cash Flow Summary (Sep 17 - Feb 18)
In USD 000s 6M FY18
Forecast Revenue 29,779
VOC (cash) (14,761)
G&A (6,273)
Cash taxes (413)
Insurance (2,031)
Total vessel opex, G&A, insurance costs (23,478)
Vessel EBITDA 6,301
Dry-docking costs (12,150)
Cash inflows/(outflows) from operations (5,849)
Assumptions
1. Forecast excludes vessels that are currently off hire, except for those which are in tendering process.
2. Direct charter rates are assumed to decrease by 15% in FY18.
3. The utilisation rate is assumed to be 80% for forecast contracts.
5. No cost increase assumed for general and administrative expenses ("G&A") in FY18.
4. No yearly cost increase assumed for Vessel Operating cost ("VOC") and Insurance Premiums, payable
over 12 months in the financial year.
EMAS Offshore Pte Ltd Cash Flow Projections
6 Month Operational Cash Flow Summary (Sep 17 - Feb 18)
In USD 000s 6M FY18
Forecast Revenue 25,358
VOC (cash) (12,789)
G&A (3,628)
Insurance (1,491)
Total vessel opex, G&A, insurance costs (17,909)
Vessel EBITDA 7,449
Dry-docking costs (9,200)
Cash inflows/(outflows) from operations (1,751)
Assumptions
1. Forecast excludes vessels that are currently off hire, except for those which are in tendering process.
2. Direct charter rates are assumed to decrease by 15% in FY18.
3. The utilisation rate is assumed to be 80% for forecast contracts.
5. No cost increase assumed for general and administrative expenses ("G&A") in FY18.
4. No yearly cost increase assumed for Vessel Operating cost ("VOC") and Insurance Premiums,
payable over 12 months in the financial year.
EMAS Offshore Services Pte Ltd Cash flows projection
6 Month Operational Cash Flow Summary (Sep 17 - Feb 18)
In USD 000s 6M FY18
Forecast Revenue 11,585
VOC (cash) (10,532)
G&A (959)
Total vessel opex, G&A, insurance costs (11,490)
Vessel EBITDA 95
Tax (16)
Cash inflows/(outflows) from operations 78
1. Forecast excludes vessels that are currently off hire, except for those which are in tendering process.
2. Revenue assumed to remain flat.
3. No yearly cost increase assumed for Vessel Operating cost ("VOC"), payable over 12 months within the financial year.
4. No cost increase assumed for general and administrative expenses ("G&A") in FY18