Annual Report 2007 - hci hammonia shipping ag

The Company Management Report Financial Statements NotesRevenues from the chartering of three ships for approximately one month amounted to EUR 1,592 thousandduring the reporting period. Of the other operating income, EUR 197 thousand related to the Group’songoing business. The income contrasted with ship operating costs totalling EUR 729 thousand and otheroperating expenses of EUR 919 thousand (previous year: EUR 6 thousand), primarily comprised servicefees, auditing costs and the costs of preparing the financial statements. Including its low personnel costs,the Group recorded net income of EUR 9,412 thousand from shipping operations.Other operating income includes income from the negative goodwill arising on the initial consolidation offive single-ship limited partnerships in the amount of EUR 9,271 thousand. In contrast, the initial consolidationof the remaining three single-ship limited partnerships resulted in impairment losses of goodwill of EUR4,879 thousand, with the result that the 2007 Group earnings were positively influenced by the effects ofinitial consolidation of the subsidiaries, to the tune of EUR 4,392 thousand in total.Reduced to take account of depreciation of EUR 444 thousand, this gives a figure for earnings beforeinterest and taxes (EBIT) of EUR 4,088 thousand.Net interest income was positive due to the financing of ships from the Group’s equity and due to the goodcapital raising result. Interest expenses amounted to EUR 56 thousand, compared with interest income ofEUR 474 thousand.This resulted in earnings before taxes of EUR 4,507 thousand. After the deduction of income taxes, consolidatednet income for the year was EUR 4,485 thousand.Overall, the assets, liabilities, financial position and profit or loss of the Group can be viewed as favourable.5. Non-financial performance indicatorsTechnical operation of the ships ran smoothly following the acquisition of the vessels by the subsidiaries,and there were no off-hire periods. No significant problems occurred with regard to the completion ofthe remaining ordered new vessels, with the result that the commissioning of the five ships can beexpected on schedule.6. Report on material events after the reporting dateA preliminary agreement was concluded with A.P. Moeller Maersk AS (“Maersk”), Copenhagen, withregard to the acquisition of three 7,400 TEU full container ships. The preliminary agreement becamelegally effective following approval by the Maersk Board. Maersk will operate these ships for a minimumperiod of ten years on a time charter basis. The agreed time charter rate has been fixed for the period,so that respective income from the ships will not be subject to fluctuations. There is a bank financingcommitment in place for borrowed capital to fully finance acquisition of the three ships. The ships areexpected to be acquired in May 2008. On the basis of the agreement entered into with Maersk, theManagement Board expects a positive contribution to be made to the result in 2008 and, over the periodduring which the three ships are chartered, an amount that is at least at the level of the expected rateof return on equity of 6.5%.20