Receivables and liabilities
|Total long-term receivables||
Receivables due later than 12 months
|Loans to employees 1)||
|Other long-term receivables||
1) The average interest rate used for loans to employees was 2.25% (2.28%) in 2017. The repayment period is five years.
In 2014 Belships entered into a long-term financing agreement for M/S Belstar, M/S Belnor and M/S Belocean. The loan facility is secured for a period of 6 years. Main terms in the loan agreement are as follows: Minimum cash USD 3 million, annual instalment USD 5 million, minimum value 120% in 2018 and 125% in 2019 and payment of dividend is limited to 50% of net result.
In order to avoid breach of loan covenants, Belships received a revised waiver from ship mortgage lender in November 2016. The waiver agreement included an on‐demand guarantee from main shareholder of USD 5 million. The waiver was terminated in December 2017 and the on-demand guarantee from the main shareholder was returned. All the covenants were fulfilled as at 31 December 2017. The market value of the ships were 133% of the outstanding loan balance at year end.
Belships ASA entered on 25 September 2015 into a sale and lease back agreement for M/S Belforest. The bareboat period is 12 years with purchase options from year 3 onwards.
M/S Belisland was delivered 15 March 2016 and leased for a period of 15 years with purchase options from year 5 onwards.
Both leases are considered as financial leases.
|Total||6 871||7 040||20 574||2 529||33 740||70 755|
|Mortgage debt||5 000||5 000||18 250||0||0||28 250|
|Obligation under finance leases||1 994||2 163||2 350||2 536||33 768||42 811|
|Capitalized financing costs||-123||-123||-26||-7||-27||-305|
RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES
|Deprec. financing costs||Foreign exchange movem.||Fair value changes|
|Non-current mortgage debt||32 290||-8 000||116||49||24 455|
|Current part of financing||6 778||162||6 940|
|Lease liabilities||42 811||-1 997||7||-3||40 818|
|Interest swap agreements||323||0||-315||8|
|Total liabilities from financing activities||82 202||-9 835||123||46||-315||72 221|
INTEREST SWAP AGREEMENTS
Belships has an interest swap agreement with a fixed interest rate at 2.2%. The agreement covers USD 5 million and ends in August 2018. Another interest swap agreement started in September 2015 at a rate of 1.9% and with a duration of 5 years covering USD 17 million, reducing by USD 2 million per year.
Hedging the Group’s interest exposure is considered on an ongoing basis. Hedge accounting is not used.
CURRENT RECEIVABLES AND SHORT-TERM LIABILITIES
Current receivables consist mainly of accrued revenues, and receivables related to operation of the ships. Other short term liabilities mainly include short term liability related to the ordinary operation of the ships. All current receivables and liabilities are due within 12 months.