Atlantic Navigation Holdings

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Insights to osv sector

https://www.alixpartners.com/industries/...ture/#tab2

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Atlantic turned profitable for FY2019

debt reduced by 14m, 16% yoy
net profit= 2.4m
ebitda=19.7m
Net profit margin=3%
ROA=1.2%
ROE=2.8%
debt/equity=0.8
EV/FCF=22
EV/sales=1.15
debt/FCF=17

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11 Apr2019

EMPHASIS OF MATTER ON THE AUDITED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018

Inherent skew-ness in calculation of net current position as all of the Group’s marine assets are classified as non-current assets

With the Group’s operations in the offshore oil and gas marine logistics industry, the Group’s main assets are marine vessels which are long-lived assets in nature and hence these vessels are all classified as non-current assets. The marine vessels are financed predominantly by long- term loans. However, from an accounting standard point, the portion of the long-term loans that needs to be repaid within the next 12 months are classified as current liabilities. 

Accordingly, at the initial recognition of the vessel assets and the loan liabilities, the Group will be recording additional current liabilities while the vessel assets are classified as non-current assets. To put into perspective, the Group has been in net current liability position since FY2014 but the net current liability position in FY2018 should be evaluated in the context of improving circumstances of a larger assets base of the Group at no increase in gearing with overall non- excessive gearing ratio as well as improving performance and significant cash flows generated from operating activities as described below.