Rapport de gestion 2011 ANG FINALx - HYPROC · V- As to the company’ organization file which is...

1

HYPROC SHIPPING COMPANY

ANNUAL REPORT 2011

Contents

Outstanding facts 2

Resolutions of the board of directors 3

Financial highlights 4

The activity analysis 5

Technical status of the fleet 11

Human resources 13

Quality, Health, Safety and Environnement 19 Financial Report 23 Main indicator of year 2011 24

Annual accounts 28

Balance-sheet accounts analysis 31

Management accounts analysis 39

Financial ratios 48

Note on the accounting referential 48

2


ANNUAL REPORT 2011

OUTSTANDING FACTS

The year 2011 was characterized by the following outstanding facts:

� Achievement of the Company’ Reorganization,

� Consumption of the new information system - IT,

� Operating of the asphalt carrier Ras Tomb,

� Upholding of the company and fleet’ certification by the external audit,

� Completion of works intended for the accommodation of the training center in

Mostaganem,

� Follow-up of Arzew center building’ achievement,

� Disinvestment process of the ship Oued Gueterini,

� Payment of additional wage increase (5% remaining),

� Tax income benefit, from ANDI, amounting to 44.81% over three years within the

framework of ships acquisitions.

3


ANNUAL REPORT 2011

RESOLUTIONS OF THE BOARD OF DIRECTORS

During the year 2011, the Board of Directors has held f ive meetings, w hich occurred in accordance

with the prerogatives that are conferred to it by the Company’s Statutes.

During this trading year, the Board of Directors had to take numerous resolutions; the main ones are referred to:

I - Traditional missions relevant to the closure of social accounts, endow ment of provisions, passing of the company’s budgets and plans and annual reports…

II- Latest missions related, notably, to implementation of new accounting and f inancial system,

III- Investment and disinvestment f iles mainly those regarding:

� establishment of a complete f ile in order to obtain the agreement of the Shareholder for the cession and the renew al of tankers f leet,

� establishment of complete f iles for the purchase of coasters,

� disinvestment process of the ship (Oued Gueterini),

� follow -up and completion of the training centre,

IV- The f iles dealing w ith subsidiaries and the company’ participation, have been examined by the General meetings of these last and in particular the taking place of the Extraordinary General Assembly having for object the bankruptcy of Medifret Spa company,

V- As to the company’ organization f ile w hich is in its f inal stage and notably relating to:

� completion and implementation of information systems,

� implementation of management posit ion staff ing,

� implementation of regulations relevant to procurement procedures,

VI- It is w orthwhile to reveal during the year 2011:

� The re-setting of the Board of Directors,

� Election, by the new members, of M. Mostefa Mohammedi, as the Chairman

� Authority delegation, by the Board of Directors, to their President,

VII- During the trading year 2011, the Board of Directors has also implemented the resolutions adopted by the General Assembly of the company, know ing:

• On September 22rd, 2011, w ithin the framew ork of the company social accounts’

examination relevant to the trading year 2009,

• On October 6th, 2011, in an extraordinary session for disinvestment process of the ship

Oued Gueterini.

4


ANNUAL REPORT 2011

FINANCIAL HIGHLIGHTS

(Unit: Million DA)

2011 2010

TURNOVER 13 218,6 12 450,7

- Maritime Transport 13 009,4 12 211,2

- Related Activities 209,2 239,5

OPERATING ADDED VALUE 5 967,7 7 476,9

Financial charges 99,9 543,2

NET RESULT 2 184,3 3 091,2

Total of assets 43 988,9 39 176,3

Total dated net asset 26 732,7 26 695,8

Current Stocks 203,5 300,9

Credits and including items : 7 579,0 5 688,3

- Customers 3 845.4 3 242,9

- Other debtors 2 119,5 1 498,9

- Taxes 1 614,2 946,5

- Other credits - -

Availabilities including : 9 473,7 6 491,4

- Investments / current financial assets - -

- Cash 9 473,7 6 491,4

Non-current assets 3 679,2 4 052,1

Current liabilities 9 282,0 6 251,1

Capital stock 31 027,7 28 873,1

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

50 000

Total of Assets Indebtedness Capital Stock

Mill

ion

DA

Balance Sheet

2011

2010

5


ANNUAL REPORT 2011

THE ACTIVITY ANALYSIS

6


ANNUAL REPORT 2011

THE ACTIVITY ANALYSIS

The Turnover achieved by the company, w ith regard to f inancial year 2011, rises to 13.22 Billion DA, recording thus an increase of about 6% compared to 2010.

This grow th is mainly explained by the full availability of LPG carriers and exploitation of Berga II & Rhourd El Farès vessels for the whole year 2011.

• Turnover evolution by segment of activities, for 2011, is illustrated by the follow ing chart:

(Unit: Million DA)

Designation Realizations Evolution

2009 2010 2011 %

LNG transport 5 906 6 658 5 415 -19%

LPG transport 2 074 2 223 3 524 +59%

Refined products transport 2 857 2 717 3 514 +29%

Crude-oil/Condensate transport 279 0 0 0

Ship Management benefits 580 613 558 -9%

Consignment activities 387 240 208 -13%

Total 12 083 12 451 13 219 +6%

0

4 000

8 000

12 000

16 000

2009 2010 2011

Mill

ion

DA

TURNOVER EVOLUTION

7


ANNUAL REPORT 2011

The distribution of the turnover by segment of activities, for 2011, is illustrated by the follow ing chart:

1- LNG transport:

The Turnover generated by this activity rises to 5.42 billion DA, recording a decrease rate of 19% compared to 2010, w hich is mainly explained by the raise in the number of days of idleness during 2011, corresponding to 328 days compared to162 days in 2010.

The participation of each tanker in LNG exports is illustrated by the follow ing chart:

41,0%

26,7%

26,6%

1,6%

0,0%4,2%

TURNOVER SPLIT

LNG

LPG

Ref./Chem. Products

Consignment

Crude Oil/Condensate

Shipmanagement

59066658

5415

0

2000

4000

6000

8000

2009 2010 2011

Mill

ion

DA

LNG TURNOVER EVOLUTION

A.Ramdane

36%

M.Didouche

16%

B.Chihani

21%

M.Ben Boulaid

10%

L.Ben M'hidi

17%

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ANNUAL REPORT 2011

2- LPG transport: The Turnover achieved by LPG transport for the year 2011 rises to 3.52 Billion DA, recording an increase rate of 59% compared to 2010, due to the availability of the whole LPG fleet and operating of Berga II and Rhourd el Farès ships during 12 months instead of 04 months and 02 months in force in 2010.

3- Refined and chemical products transport:

♦ Refined petroleum products:

The amount of the turnover achieved during 2011 is w orth 3.51Billion DA, including 2.84 Billion DA achieved by chartered vessels, representing thus an increase rate of 29% compared to 2010.

This positive evolution is explained by the great importance of vessels in ow nership and the operating of Ras Tomb ship for the w hole year 2011.

0

500

1000

1500

2000

2500

3000

3500

4000

2009 2010 2011

Mill

ion

DA

LPG TURNOVER EVOLUTION

Nat. Coast/Chartered

Nat. Coast/Owned

Int. Traf./Chartered

Int. Traf./Owned

0

500

1000

1500

2000

2500

3000

3500

4000

2009 2010 2011

Mill

ion

DA

REFINED PRODUCTS TURNOVER

EVOLUTION

Nat. Coast/Chartered

Nat. Trafic/Owned

Int. Traffic/Owned

9


ANNUAL REPORT 2011

♦ Chemical products:

No income w as realized in 2011 by this activity due to the lack of customers’ requests.

4- Crude-oil and condensate transport:

This activity is ensured by SONATRACH.

5- Ship-Management activity:

The turnover generated in 2011 amounts to 558 million DA, recording thus a regression of 9% in 2010.

6- Shipping activities:

The turnover achieved, in the year 2011, by this activity amounts to 208 million DA, i.e. a regression of 13% compared to 2010, due to the loss of market shares.

580

613

558

450

550

650

2009 2010 2011

Mill

ion

DA

SHIPMANAGEMENT TURNOVER EVOLUTION

387

240208

0

100

200

300

2009 2010 2011

Mill

ion

DA

TURNOVER EVOLUTION

OF CONSIGNMENT ACTIVITIES

10


ANNUAL REPORT 2011

As to the physical production, the number of calls that have been treated by the shipping agencies recorded a regression rate of 6% in comparison to the year 2010.

20571945

1823

0

500

1000

1500

2000

2500

2009 2010 2011

NUMBER OF EVOLUTION

OF PROCESSED SHIP

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ANNUAL REPORT 2011

TECHNICAL STATUS OF THE FLEET

The w hole f leet registered, in the year 2011, 328 days of idleness compared to 292 days in 2010.

� Performed dry-docking: 150 days, corresponding to the rate 46% w ith regard the total period of idleness:

• Didouche Mourad: 65 days,

• Bachir Chihani: 31 days,

• Mostefa Ben Boulaid: 54 days.

.

� Damages: 126 days, corresponding to the rate 38% w ith regard the total period of idleness:

• Bachir Chihani: 8 days

• Didouche Mourad: 5 days

• Larbi Ben M’hidi: 25 days

• Abane Ramdane: 20 days

• Mostefa Ben Boulaid: 68 days

� Other idleness: 52 days, corresponding to 16% w ith regard the total period of idleness:

• Mostefa Ben Boulaid: 48 days

• Larbi Ben M’hidi: 4 days

Other idleness (bunkering t ime, relief, regulations etc …)

Thus, technical availability rate of the f leet recorded in the year 2011 corresponds to 94% against 92% in 2010.

94%

3% 3%

Technical Availibility

Dry-Docking

Damages

12


ANNUAL REPORT 2011

♦ LNG fleet:

LNG fleet registered, in the year 2011, a rate of technical availability of 82% compared to the rate 91% in 2010.

♦ LPG fleet and petroleum products:

The technical availability rate recorded by LPG and oil-tankers f leet is 100%, compared to the rate 94% in 2010.

75%

80%

85%

90%

95%

100%

2010 2011

AVAILABILITY RATES OF LNG FLEET

Damages

Dry-Docking

Availability

0%

20%

40%

60%

80%

100%

120%

2010 2011

AVAILABILITY RATES OF LPG AND PP FLEET

Technical Availibility

Dry-Docking

Damages

13


ANNUAL REPORT 2011

HUMAN RESOURCES

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ANNUAL REPORT 2011

HUMAN RESOURCES

Training and employment situation:

1- Employment:

Up to 12/31/2011, the company w as employing 1 652 agents among w hom 227 under contract and 02 foreign off icers, whereas the number of employees on 12/31/2010 recorded 1695 among w hom 288 under contract.

Seagoing and sedentary manpow er evolution is presented as follow :

The Company’ manpower evolution:

A- Sedentary Manpower 2011 Manpower 2010 Manpower 2009

Permanent Under

contract Permanent

Under

contract Permanent

Under

contract

SENIOR EXECUTIVE 101 3 98 3 102 2

JUNIOR EXECUTIVE 159 53 165 48 135 60

SUBORDINATE STAFF 121 15 124 14 127 19

MINOR STAFF 117 59 123 58 124 65

Sedentary Somme 498 130 510 123 488 146

Total 628 633 634

B- Seagoing Manpower 2011 Manpower 2010 Manpower 2009

Permanent Under

contract Permanent

Under

contract Permanent

Under

contract

OFFICERS 417 22 352 75 364 38

SUBORDINATES 508 77 543 92 581 43

SEAGOING SOMME 925 99 895 167 945 81

Total 1024 1062 1026

G. Total 1652 1695 1660

38%

62%Sedentary manpower

Seagoing manpower

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ANNUAL REPORT 2011

• Sedentary manpower:

Up to 31/12/2011, the company w as employing 628 among w hom 130 on temporary basis, compared to 633 agents, in 2010, among w hom 123 on temporary basis.

Permanent staff recorded a regression of 2% compared to 31/12/2010, mainly due to retirements.

• Seagoing manpower:

Up to 12/31/2011, the company w as employing 1024 agents, among w hom 99 on temporary basis (97 Algerians and 02 foreign off icers), against 1062, in 2010, among w hom 167under contract (165 Algerians and 02 foreign off icers).

Permanent staff recorded an increase of 3% compared to 12/31/2010.

The split of seagoing manpow er is illustrated by the follow ing chart:

The split of the Company’s:

43%

57%

OFFICERS

PETTY OFFICERS

0

20

40

60

80

100

120

140

160

180

200

< 20 20 - 25 25 - 30 30 - 35 35 - 40 40 - 45 45 - 50 50 - 55 55 - 60 > 60

Manpower split by group age

Cadres

Maitrise

Exécution

Junior

Executiv e

Subordinate

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ANNUAL REPORT 2011

The Split of the Company staff (seagoing and sedentary) by group age illustrates a high effective for ages betw een 30 and 55 years and mainly for the socio-professional categories junior executive and minor staff, w hich is a good restrain for the resolve of staff development plan.

0

50

100

150

200

250

300

0 - 5 05-10 10-15 15-20 20-25 25-30 > 30

Manpower split by years' service

Cadres

Maitrise

Exécution

0

50

100

150

200

250

300

350

400

450

500

Manpower split by academic standard

Cadres

Maitrise

Exécution

Junior Executive

Subordinate Staff

Minor Staff

Junior Executive

Subordinate Staff

Minor Staff

W ithout

Primary

Intermediat e

Secondary

High T./DEUA

Licence/Appl. Ing.

Ing & +

17


ANNUAL REPORT 2011

Women employment:

Feminine manpow er recorded 179 agents among w hom 175 sedentary and 04 seagoing (off icers), i.e a rate of 11% of the w hole staff.

The split of feminine manpow er by socio-professional category is as follow s:

2- Training: The actions undertaken for sedentary staff training dealt w ith a wide range of specialities such as (human resources, data processing, technical, law , commercial, f inance and accounting).

The actions undertaken for the training of seagoing staff are mainly oriented tow ard the regulation f ield STCW and the added specif ic trainings w ithin different organizations (LOYDS, GERMA NY, SCHNEIDER) .

Training and seminars expenses reach 29 million DA, in 2011, i.e. a decrease of about 49% in relation to the training year 2010.

4%

36%

30%

30% Senior Executive

Junior Executive

Subordinate Staff

Minor Staff

0

2000

4000

6000

8000

10000

12000

14000

2009 2010 2011

TRAINING EVOLUTION

Personnel concerned

H/D

18


ANNUAL REPORT 2011

This amount of the year 2011, represents 0.7% of the global staff expenses, against 1.44% in 2010. This regression is explained by the un-fulf ilment of trainings due to the intricacies related to the procurement procedure.

Other training activities:

An important training action w as initiated dur ing the year 2010/2011, namely electrical skills involving sedentary and seagoing staff, under Decree No. 05-09 of 28th January 2005, relevant to prevention, protection and safety organization in electricity f ield.

3- Working and social relationship:

As to the w orking relationships, the year 2011 w itnessed:

� The election of the Company’ union section on the 15 May 2011,

� Setting up of the composit ion of the Company union section by the local trade- union in Oran UGTA, in September 8th, 2011,

� Freezing of trade-union activities by court on 10/09/2011,

� Personnel’ basic w age rise: Follow ing the measurement of w age increases decided by the Government, pursuant to the agreement betw een the national trade-union and Sonatrach, a wage increase of 5% from January 1st, 2011 was granted to the entire sedentary and seagoing personnel of Hyproc Company.

0

10

20

30

40

50

60

2009 2010 2011

Mill

ion

DA

TRAINING EXPENSES EVOLUTION

19


ANNUAL REPORT 2011

QUALITY, HEALTH, SAFETY

AND ENVIRONMENT

20


ANNUAL REPORT 2011

QUALITY, HEALTH, SAFETY AND ENVIRONMENT

♦ Balance sheet of the year 2011:

The items listed below have marked the year 2011 in terms of Quality, Health, Safety and Environment:

� It w as observed that the number of accidents compared to the previous year has remained constant and this is due to the Company's policy that considers safety of its real estate, of its activities, of its staff health and environment respect at the top of its priorities.

� Results recorded on health and safety aspects are very satisfactory, in comparison w ith the required standards, since the whole workers have adopted trustworthy behaviors w ithin safety, w ith constant concern for environmental protection. This fact is due to a permanent aw areness of the staff, and rigorous monitoring procedures included in the Company’ Quality Management System (QMS) w hich is constantly revised to comply w ith the new requirements.

� Implementation of continuous aw areness actions as well revision of corrective / preventive actions relating to safety, health and environmental protection aspects, that led to maintain the accidents’ frequency rate and gravity at a tolerable level.

� Taking into account "risk" factor has become part of the company culture; thanks to taken actions for safety management reinforce.

� One accident occurred in 2011 but with no impact on health, safety and environmental protection and that has been properly managed to w ithdraw the consequences for its forthcoming non-occurrence.

� A single incident of oil pollution w as recorded in 2011 and which has been properly mastered w ithout any consequences for the environment.

Hyproc SC commitment in Quality, Safety, Health and Environment f ield is based on an individual accountability, a strong management involvement, a constant improvement of the organization and procedures and an ambitious program of sensitizing and training seagoing and sedentary personnel.

By giving the priority to manpow er, safety and environmental protection, Hyproc SC endeavors to improve safety at work, to protect personnel and environment.

Safety is considered by Hyproc SC as the foremost prior ity and the main target is: "nil incident" and "nil accident" as well “nil sea pollution”.

The annual statement of the year 2011 is an assessment of the objectives and performances Quality, safety, health, and environment protection of Hyproc SC and its commitment confirmation.

These performances’ assessment is made through the evaluation of accident frequency rate.

The number of hours of exposure cumulated over the year reached 4.800.430 for the w hole of the Company. The frequency rate for the cases recorded per million hours of exposure w as of 2.48% for sedentary personnel and 1.47 %for seagoing personnel.

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ANNUAL REPORT 2011

♦ Implemented means to reach fore listed objectives:

The Company is engaged in a process of communication culture sharing, through information dissemination relevant to safety problems, in order to avoid accidents or incidents and implementation of a reliable means of experience feedback, so as to assist its entire staff.

In addit ion, the use of eff icient information systems based on dedicated softw are, w ith the solution AMOS II that provides the interface onshore/offshore, with regards QMS, of accidents / incidents, of close-accidents and of risks assessment among others. This system w ill be an essential tool to master and improve the parameters management, w ith regards health, safety and environmental protection. It also includes dashboards that use performance key indicators.

Of course, it remains that staff awareness and training are key factors for success of the Company's policy, w ith regards safety, health and environment protection. In this regard the Company f inds no diff iculty to achieve the goals, by mean of staff know ledge upgrade, including on specif ic topics such as investigation methods and incidents / accidents reporting, evaluation system, etc.

BALANCE SHEET 2011

Seagoing Staff 1024

Sedentary Staff 628

Real Manpower 1652

Worked Hours 4 800 430

AAAT (Accidents with no lost-time) for seagoing staff 5

AAAT (Accidents with lost-time) for sedentary staff 4

ASAT (Accidents with no lost-time) 0

TOTAL ACCIDENTS 9

Days lost 368

Frequency rate (Sedentary staff) 2,48

Severity rate (Sedentary staff) 0,11

Frequency rate (Seagoing staff) 1,47

Severity rate (Seagoing staff) 0,06

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ANNUAL REPORT 2011

EVOLUTION OF ACCIDENTS' NUMBER FROM 2005 TO 2011

0

2

4

6

8

10

12

14

16

18

2005 2006 2007 2008 2009 2010 2011

23


ANNUAL REPORT 2011

FINANCIAL REPORT

24


ANNUAL REPORT 2011

FINANCIAL REPORT

I- Main indicator of year 2011:

1- Operation:

1-1- Products: The total amount of products, witnessed in the year 2011, is 15.53 Billion DA, recording an increase of 4% compared to the year 2010.

Products’ spreading is illustrated by the follow ing chart:

1-2- Charges:

The total amount of charges, recorded in the year 2011 rises to 13.35 Billion DA, i.e. an increase of 13% compared to the year 2010 mainly w itnessed w ithin chartering item and ships refurbishment-damage.

The operational charges that represent 97% of this amount may be split into the follow ing proportions:

85%

9%

4% 2%

Provided provisions

Other operational products

Financial products

Upturn fund

8,9%

42,1%

4,5%

32,3%

1,4%

1,9% 0,8% 8,2%

Consumed sales

External services

Other external services

Staff charges

Taxes, duties and similar assimilés

Other operational charges

Financial charges

Amortizations, provisions and value losses endowments

25


ANNUAL REPORT 2011

1-3- Results:

The activity of the company generated, in 2011, a profit net result of 2.184 billion DA, w ith a regressive rate of 29% compared to the year 2010.

Operating added value w ent from 7.48 billion DA in 2010 to 5.97billion DA in 2011, i.e a decrease of 20%. This signif icant regression is mainly explained by the increase of ships’ refurbishment and repair expenses.

Gross operating profit of the year 2011 registered a decrease of 1.836 billion DA compared to 2010, corresponding to a rate of 53%, going from 3.401 billion DA in 2010 to 1.565 billion DA in 2011. This reduction is due to the increase of personnel charges and the decrease of added value.

Operating result of the year 2011 registered a regression of 1.988 billion DA compared to 2010, i.e. a rate of 50%, going from 3.929 billion DA in 2010 to 1.941billion DA in 2011. This decrease is mainly explained by regression of gross operating profit and other operating products.

Financial result, registered in 2011, is Worthing 222 million DA of grow th compared to 2010, going from 298 million DA in 2010 to 520 million DA in 2011, thus is a rate of 75%.

This increase is the outcome of the signif icant regression of f inancial charges; a reduction of about 82% in 2011, against f inancial products recording a decrease of just 26% compared to 2010.

The income before taxes registered, during this year, an amount of 2.46 billion DA against 4.23 billion DA in2010, thus is a reduction of 1.77 billion DA, corresponding to a rate of 42%.

(Unit: Million DA) 2011 2010 2009

Operating added value 5 968 7 477 4 568

Gross operating profit 1 565 3 402 1 582

Operating result 1 941 3 929 1 646

Financial result 520 298 154

Income before taxes 2 461 4 227 1 800

Extraordinary result - - -

Trading year net result 2 184 3 091 691

2- Patrimony value: The total balance closed on 12/31/2011 amounts to 43.99 billion DA against 39.17 billion DA on 12/31/2010.

26


ANNUAL REPORT 2011

ASSET:

(Unit: Million DA)

2011 2010 2009

Non-current Assets (net) 26 733 26 696 18 472

Current Asset (net) 17 256 14 480 16 251

Total (net) 43 989 39 176 34 723

LIABILITY:

(Unit : Million DA)

2011 2010 2009

Own funds 28 844 25 782 25 096

Non-current liabilities 3 679 4 052 3 803

Current liabilities 9 282 6 251 5 133

Net result 2 184 3 091 691

Total 43 989 39 176 34 723

3- Financial structure:

The w orking capital w ent from 6.23 billion DA in 2010 to 7.97 billion DA in 2011 recording a positive variation of 30% due to the grow th of the permanent funds.

The need for working capital w ent from -262 million DA in 2010 to - 1500 million DA in 2011.

This negative variation in the need for w orking capital can be mainly explained by the increase of short-term debts of about 48%.

27


ANNUAL REPORT 2011

(Unit: Million DA)

2011 2010 2009

Variation

2011 / 2010

A- Permanent funds 34 707 32 925 29 590 1 782

- Capital cover 31 028 28 873 25 787 2 155

- Non-current liability 3 679 4 052 3 803 -373

B- Non-current net asset 26 733 26 696 18 472 37

1- Working capital (A-B) 7 974 6 229 11 118 1 745

C - Operating assets 7 782 5 989 4 567 793

- Supplies 203 301 74 -98

- Credits (off- availabilities) 7 579 5 688 4 493 1 891

D- Current Liability 9 282 6 251 5 132 3 031

2- Needs for working capital (C-D) -1 500 -262 -565 -1 238

FINANCING PROFIT (1-2) 9 474 6 491 11 683 2 903

28


ANNUAL REPORT 2011

II- Annual accounts:

ASSET

(Unit : Million DA)

2011 2010 2009

NON-CURRENT ASSET

Goodwill positive or negative - - -

Intangible Fixed Assets 17 25 2

Tangible Fixed Assets 22 106 20 538 8 774

Lands 165 165 121

Buildings 2 842 297 322

Other tangible fixed assets 19 099 20 076 8 331

Assets in concession - - -

Assets in progress 1 760 2 828 6 357

Financial Assets 2 850 3 305 3 339

Investments in associates - - -

Participating interests and related

credits 2 399 2 402 2 486

Long-term stocks - 498 498

Loans and other non-current financial

assets 13 21 32

Differed tax asset 438 384 323

TOTAL NON-CURRENT ASSET (NET) 26 733 26 696 18 472

CURRENT ASSETS

Outstanding stocks 203 301 74

Debts and similar products 7 579 5 688 4 493

Customers 3 845 3 243 3 100

Other debtors 2 120 1 499 644

Taxes and similars 1 614 946 749

Other debts and similar products - - -

Availabilities and similars 9 474 6 491 11 684

Investments and other current financial

assets - - -

Cashflow 9 474 6 491 11 684

TOTAL CURRENT ASSETS 17 256 12 480 16 251

TOTAL ASSET 43 989 39 176 34 723

29


ANNUAL REPORT 2011

LIABILITY

(Unit: Million DA)

En Millions de DA 2011 2010 2009

CAPITAL COVER

Issued shared capital 12 000 12 000 12 000

Uncalled share capital - - -

Profits and reserves 16 815 13 948 10 436

Revaluation surplus 29 39 -

Goodwill - - -

Net Result (group share) 2 184 3 091 691

Other own capitals (retained earnings) - -205 2 660

Parent company share (1) - - -

Minority share (1) - - -

TOTAL CAPITAL COVER 31 028 28 873 25 787

NON-CURRENT LIABILITIES - - -

Loans and financial debts 2 264 2 261 2 261

Taxes (differed and provisionned) 240 243 245

Other non-current debts - - -

Accrued provisions and incomes 1 175 1 548 1 297

TOTAL NON-CURRENT LIABILITIES II 3 679 4 052 3 803

CURRENT LIABILITIES - - -

Suppliers and related accounts 4 849 3 071 2 017

Taxes 595 1 428 1 361

Other debts 3 838 1 753 1 755

Cash liability - - -

TOTAL CURRENT LIABILITIES III 9 282 6 251 5 133

GENERAL TOTAL LIABILITY 43 989 39 176 34 723

30


ANNUAL REPORT 2011

RESULTS ACCOUNTS TABLE

(Unit: Million DA)

2011 2010 2009

Sales and related products - - -

Products stocks variation - - -

Fixed production - - -

Operating grants - - -

I – Trading year production 13 219 12 451 12 083

Consumed purchases (1 163) (986) (1 173)

External services and other consumers (6 088) (3 987) (6 342)

II – Trading year consumption (7 251) (4 974) (7 515)

III – Operating added value (I-II) 5 968 7 477 4 568

Staff charges (4 223) (3 938) (2 858)

Taxes, duties and similar payments (180) (137) (128)

IV – Gross operating surplus 1 565 3 402 1 596

Other operating products 1 323 1 608 754

Other operating charges (248) (107) (119)

Amortizations and provisisons endowments (1 070) (975) (571)

Upturns on value losses and provisions 371 1 -

V – Operating result 1941 3 929 1 646

Financial products 620 841 507

Financial charges (100) (543) (353)

VI – Financial result 520 298 154

Ordinary result before taxes (V+VI) 2 461 4 227 1 800

Regular taxes on ordinary profits (343) (1 199) (1 109)

Differed taxes (variations) on ordinary profits -66 -63 -

Total products of ordinary activities 15 533 14 901 13 344

Total charges of ordinary activities 13 349 11 809 12 575

VIII – Net results of ordinary activities 2 184 3 091 691

Extraordinary items (products) - - -

Extraordinary items (charges) - - -

IX – Extraordinary result - - -

X – TRADING YEAR NET RESULT 2 184 3 091 691

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ANNUAL REPORT 2011

III- Balance-sheet accounts analysis:

1- Asset Accounts:

(Unit : Million DA)


Intangible fixed assets 17 25 2

Net tangible fixed assets 22 106 20 538 8 774

Current fixed assets 1 760 2 828 6 357

Financial fixed assets 2 850 3 304 3 339

Current stocks 203 301 74

Debts and similar products 7 579 5 688 4 493

Similar availabilities 9 474 6 491 11 684

Financial investments - 2 000 4 000

Cashflow 9 474 4 491 7 684

TOTAL 43 989 39 176 34 723

The analysis of the balance structure at the end of 2011reveals an increase of the assets reaching 6% compared w ith the year 2010. This rise is mainly tangible f ixed assets, debts and availabilities.

1-1- Fixed assets:

Fixed assets are composed of tangible, intangible, current investments and f inancial f ixed assets.

Bulk f ixed assets at the end of 2011 amount to 42 billion DA (including 79% representing the f leet value), i.e. a positive variation of 9 billion million DA corresponding to 27% compared w ith the previous trading year.

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ANNUAL REPORT 2011

This posit ive variation is explained mainly by the acquisit ion w hich gross value is detailed as follow s: (Unit: Million DA)

Amount

Intangible fixed assets 0,7

Office building (Mostaganem) 2 584,8

Telecommunication and electrical equipment 12,9

Data processing equipment 10,4

Furniture and stationary 0,1

Reproductive equipment 0,6

Household equipment 1,6

Tooling and equipment 2,2

Fixed assets in progress to 1231/31/2011 amounts to 1,76 billion DA and concern w hat follow :

• Building in progress, in “Fellaoucen” district, Oran 38 Million DA

• Fleet manning center (Arzew) 380 Million DA

• DRA building refurbishment 11 Million DA

• Re-organization project ERNST & YOUNG 515 Million DA

• Information system 793 Million DA

• Pedagogical material setting CA P Mostaganem 11 Million DA

• Piece of land (Mostaganem) 9 Million DA

• Telecommunication equipments « safety » 2,5 Million DA

Net amount of f inancial f ixed asset is composed of:

• Other debts related to companies in joint venture for 82 %,

• Differed taxes asset for 15,36%,

• Shares on subsidiaries (Algerian companies) for 1,86%,

• Equity securities on joint-ventures for 0,32%,

• Loans for the company staff for 0,28%,

• Deposits and guarantees for 0,18%.

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ANNUAL REPORT 2011

Net f inancial assets at the end of 2011 amounts to 2.85 billion DA against 3.30 billion DA in 2010, a decrease of 14% mainly observed in the account "bond" of 498 million DA w hich expired in May 2011. Equity securities of the Company rises to 95.54 million DA to 12/31/2011 and are held on the follow ing companies:

Companies Participation

rates

Amounts in

Thousand DA

MEDIFRET 100% 29 352

NAJDA MAGHREB 100% 37 922

AVICAT 20% 4 000

ANGTC 25% 1 849

MLTC 25% 3 698

SLTC 25% 3698

SBSC 30% 22

COMPAREX 15% 15 000

Debts amount related to joint venture companies rises to 2,34 billion DA. This item recorded long-term loans granted to 03 JV, as follow :

• ANGTC for 883 Million DA,

• MLTC for 746 Million DA,

• SLTC for 708 Million DA.

Differed taxes assets:

This item for an amount of 438 Million DA recorded a rise of 53 Million DA compared to the trading year 2010, that is a rate of 14% detailed as follow :

• Recording of deferred tax on provision of holiday allow ances amounting to 24 million DA,

• Recording of deferred tax relevant to provision of incentive profit for an amount of 120 million DA,

• Regression of deferred tax on retirement allow ance for an amount of 91 million DA w hich w as of the order of 293 million DA in 12/31/2010.

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ANNUAL REPORT 2011

1-2- Current stocks:

The amount of current stocks at the end of 2011 amounts to 203 million DA, representing a decrease of about 33% compared to the year 2010, primarily observed at the fuel stocks in stores under customs (spare parts and various consumable materials), food and clothing supplies.

1-3- Debts and similar products:

The amount of inventories and w ork in progress at the end of f iscal 2011 amounted to 203 million dinars, representing a decrease of approximately 33% compared to trading year 2010, primarily observed at the fuel stocks in stores under Customs (spare parts and various consumable materials), food and clothing supplies.

Net amount of debts rises to 7,58 Billion DA.

This item evolution is presented as follow :

(Unit: Million DA)

2011 2010 Variation in %

Customers 4 237 3 630 +17%

Other debtors 2 133 1 499 +42%

Taxes and similars 1 614 946 +71%

GROSS TOTAL 7 984 6 075 +31%

This item is detailed by the follow ing chart:

1-3-1- Debts on customers:

The amount of this item consists of debts on customers, customers mandated operations and invoicing. Customers mandated operations are relevant to debit notes payments by Hyproc SC on behalf of SONATRACH and NA FTAL customers (calls expenses, bunkering expenses).

Gross amount of debts on customers w ent from 3.63 billion DA, at the end of 2010, to 4.24 billion DA at the end of 2011, an increase of about 17%.

53%

27%

20%

Customers

Other debtors

Taxes & similar

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ANNUAL REPORT 2011

The split of this item is illustrated by the chart below :

The split of debts on national customers is as follow :

• SH Commerciale 74% • Naftal 16% • Others ONAB and MEDIFRET 10%

Debts collection delay is 106 days of turnover in 2011.

1-3-2- Other debtors:

This item consists mainly of:

• Advances to suppliers and shipping agents for 40.66%,

• Advances on f ixed assets for (CAF) for 0.67%,

• Prepaid charges for 7.42%,

• Mandated operations debtors 44.08%,

• Financial products to receive 1.89%,

• Various for 5.28%.

Gross amount of the item "other debtors" amounts to 2.13 billion DA in 2011, i.e. an increase of 42% compared to the trading year 2010. This grow th is mainly observed in debtors mandated operations for 61%, staff salary advances 74%, advances to shipping agencies 205%.

Debtors mandated operations of 940 Million DA are relevant to customers’ account payment (Sonatrach & NAFTAL mostly), calls expenses, bunkering expenses, body and machine insurance for 3 tankers (LBM, BC & BB), agencies disbursements and tax domiciliation not re-invoiced to 12/31/2011.

75,05%

24,92%

0,02%

Customers

Customers mandated operations

Invoicing

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ANNUAL REPORT 2011

1-3-3- Taxes and similars:

This item consists mainly of provisional instalments on IBS 2011, w ithholding IRCDC, taxes on f ixed assets, goods and services to recover and prepayments.

The amount of taxes similar w ent from 946 million dinars in 2010 to 1614 million at 31/12/2011.

1-4- Availabilities and similars:

The company availabilit ies amount to 9,47 billion DA, in 2011, that is an increase of 46% in comparison to the previous year.

This increase w as primarily due to the inclusion of scheduling fall of SONELGAZ dues, subscribed in May 2005 for an amount of 498 million DA, disbursements regression and receipts increase.

2- Liability accounts: (Unit: Million DA)

2011 2010 2009

Capital Cover 31 028 28 873 25 787

Loans and financial debts 2 264 2 261 2 261

Taxes (differed and provisionned) 240 244 245

Provisions and products counted in

advance 1 175 1 547 1 297

Suppliers related accounts 4 848 3 071 2 017

Taxes 595 1 428 1 361

Other debts 3 838 1 752 1 755

TOTAL 43 988 39 176 34 723

2-1- Capital Cover:

The amount of capital cover, at the end of 2011, rises to 31.03 billion DA and is constituted as follow :

Capital Cover Amounts

Registred capital 12 000

Profits and reserves 16 814

Land re-evaluation gap 29

Retained earning -

Net resultat trading year 2011 2 184

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ANNUAL REPORT 2011

Capital cover w itnessed an increase of 7% compared to the previous year due to appropriation of 2011 net profit.

Re-evaluation gap is relevant to the land in Aïn El Bya (Oran).

2-2- Non-current liability: Non-current liability is composed of loans and f inancial debts, of provisions and products counted in advance and of differed and provisioned taxes.

This item w itnessed a regression of about 10%, going from 4.05 billion DA, in 2010, to 3.68 billion DA in 2011.

The amounts composing this item are illustrated by the follow ing chart:

2-2-1- Loans and financial debts:

The amount of loans and f inancial debts, at end 2011, w as almost frozen to that of the previous year and reaches 2.26 billion DA.

It is constituted of shares hold by the parent company SONATRACH, reaching 2.256 billion DA for a rate of 99.79% and of treasury debt of 4.661 million DA, for a rate of 0.21% that occur in Hyproc SC opening Balance-sheet, of 1982. Which is relevant to Hassi R’mel Ship’ acquisit ion f inancing, in 1971.

2.2.2- Differed and provisionned taxes: The amount of provisioned and deferred taxes w ent from 243.6 million DA in 2010 to 240.4 million DA in 2011, recording thus a decrease of 3 million DA, i.e. a rate of 1.31%.

This is explained by the evolution of the follow ing:

• Increase in deferred tax relating to the revaluation of credits and debts for an amount of 10 million DA, going from 154,805 KDA in 2010 to 164,978 KDA in 2011,

• Deletion of deferred tax on holiday allow ances for 2010, reaching an amount of 11 million DA, due to reinstatement of the latter in the tax base in 2010,

• Second annuity unw inding of Ain El Bia land revaluation, in 2009 w hich generated a deferred tax liability of KDA 9720 over a period of 5 years, 1944 KDA year.

62%

6%

32%

Loans & financial debts

Taxes (differed & provisioned)

Provisions & products counted in advance

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ANNUAL REPORT 2011

2-2-3- Provisions and products counted in advance:

This item w itnessed a regression in 2011, for an amount of 373 million DA, going from 1.55 billion DA in 2010 to 1.18 billion in 2011.

This decrease is mainly observed in the provision of retirement allow ances which w ent from 1 537.5 million DA in 2010 to 1 175.01 million in 2011, thus recording a decrease of 362 million DA.

2-3- Current liabilities:

This item is constituted of suppliers debts and related accounts, taxes and other debts.

Current liabilities w itnessed a growth of about 48%, going from 6,25 billion DA, at end 2010, to 9,28 billion DA, at end 2011.

The amounts of this item, during the trading year 2011 are split as follow :

2-3-1- Suppliers and related accounts:

This item consists of debt towards suppliers (stocks, services and f ixed assets) for 97%, as well non received invoices and holdbacks related guarantees for 3%.

These debts w itnessed an increased of about 58%, going from 3.07 billion DA, at the end of 2010, to 4.85 billion DA at the end of 2011.

2-3-2- Taxes:

This item representing debts tow ards public administration recorded a decrease of 58% compared to the previous year, going from 1.43 billion DA in 2010 to 0.60 billion DA in 2011.

It is mainly composed of IBS 2011, for a rate of 58%, of VAT collected for 38%, of a VAT credit for 2%, of the TAP for 1% and of apprenticeship tax for 0.90%.

The VAT credit of 11,887 KDA is related to a w ithholding tax of Bethioua agency.

52%

7%

41%

Suppliers and related accounts

Taxes

Other debts

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ANNUAL REPORT 2011

2-3-3- Other debts: This item consists mainly of:

• Mandated operations debtors for 11%,

• Accruals (Profit and IDC) for 10%, • Debts tow ards CNAS for 7%, • Financial charges liabilities (ADB) & commissions for 2%,

• Deposits and advances received from customers for 4%, • Products counted in advance for 48%, • Staff wages for 3%, • Others (Social Work, IRG retains ETC....) for 15%.

The amount of other debts of 12/31/2011 amounts to 3.84 billion DA thus recording an increase of 119% compared to the training year 2010.

This increase w as mainly observed at the follow ing topics: products accounted in advance, accrued charges and CNAS charges.

Mandated operations debtors concerns calls’ provisions invoicing resolved on behalf of customers (SONATRACH and NAFTAL) and that before the receipt of relevant calls accounts.

The account "Mandated operations debtors" is composed of amounts of call accounts counted to 31-12-2009, relevant call accounts w ere recorded in 2010, directly in the mandated operations debtors w ithout the subject of the account transfer. This operation w ill be made conform in 2012.

Products counted in advance are relevant to rents of the trading year 2012, invoiced in 2011.

Along w ith these increases, decreases were witnessed particularly concerning the f inancial charges payable for 63% and IRG tax w ithholding for 33%.

IV- Management accounts analysis:

1- Products:

1-1- Performed services:

In the year 2011, the company registered a grow th of 6% by reaching an amount of 13.219 billion DA, compared to the year 2010 amounting to 12.450 billion DA.

Chartering part represent more than 24% of trading year turnover.

The Turnover w itnessed a rise at the level of LPG transport for 59% and of refined products for 29%.

Whereas the decreases were recorded at the level of the follow ing activities:

• LNG transport 19%,

• Shipping activities 9%,

• Shipmanagement services 13%.

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ANNUAL REPORT 2011

1-2- Other products: Miscellaneous products deal w ith operating products, f inancial products and operating upturn fund.

The amount of the other products registered in 2011, amounts to 2.31 billion DA, i.e. a general decrease of 6% compared to 2010, mainly noticed on other operating products and f inancial products.

1-2-1- Operating products: The amount recorded during the trading year 2011 is about 1.32 billion DA, i.e. a regression of 18% compared to 2010.

Operating products deal mainly w ith the follow ing items:

• Current management products for 908 million DA,

• Up return charges of the former years for 239 million DA,

• Non-recurring products on management operation for 109 million DA,

Operating products are detailed as follow :

(Unit: Million DA)

ions de DA 2011 2010 2009

Gain on non-funded fixed assets disposal 1 - 324

Non-recurring income on management operation 109 23 -

Previous years products 52 146 104

Up return charges of the former years 239 279 -

Current management products 908 817 326

Exceptional products for payment return - 206 -

Products refunding penalties 14 137 -

TOTAL 1 323 1 608 754

Current management products relevant to the follow ing operations:

• Litigations payment return w ith SOBRENA for 662 million DA,

• Call fees commissions for 225 million DA,

• Lump-sum payment for cars, telecommunication (agencies) for 20 million DA.

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ANNUAL REPORT 2011

Up return charges of the former years for the amount 239 million DA deal mainly w ith:

• Accounts regulations (interests BAD trading year 2000) for 108 Million DA,

• Up turn products of bunkering (Ras Tomb & Rhourd el.Farès) accrued in 2010 and invoiced in 2011 for 102 Millions de DA,

• Payment return by SIEMENS for rotor repair of Didouche Mourad ship for 175 000 Euros, that is in CVDA of 18 million DA.

Non-recurring products on management operation for 109 million DA are mainly relevant to insurance payment return for 106 million DA and invitations for tender fees.

1-2-2- Financial products: The amount of this item registered during the trading year 2011, reaches 620 million DA, i.e. a regression of 26% compared to 2010, mainly observed at the level of exchange differences and interests on investments. Financial products are relevant to interest obtained for the loans affected for ANGTC, MLTC and SLTC Joint-ventures, from exchange differences and interests on investments at the level of BEA bank. On the other hand, increases were recorded mainly in the revaluation of debts and credits for an amount of 220 million DA. The detail of the f inancial products is presented as follow : (Unit: Million DA)


Subsidiaries’ Dividends 54 11 18

Interests on investments 39 130 132

Interests for loans 194 162 201

Exchange profit 113 537 156

Re-evaluation profit exchange 220 - -

Other financial products - 1 -

TOTAL 620 841 507

1-2-3- Operating upturn on provisions: The amount of the upturn on provisions, registered during the trading year 2011, rises to 371 million DA, and deal w ith the provisions postponement during 2010 for retirement compensation for 362 million DA and those corresponding to credible loss (litigation cases) for 9 million DA.

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ANNUAL REPORT 2011

2- Charges:

2-1- Consumed Sales:

The amount realized for the year 2011 rises to 1.16 billion DA, i.e. an increase of 18% compared w ith the year 2010.

This item is detailed as the follow ing table:

(Unit: Million DA)


Ships spare parts 131,4 240,1 322,7

Car spare parts 0,9 0,7 0,7

Ironworking and hardware 15,7 18,2 42,2

Small tools 2,7 3,9 3,5

Electrical equipments 25,9 10,3 25,9

Safety material 27,0 12,8 24,1

Various repair equipments 0,05 1,1 0,02

Chemical and petrochemical products 25,0 24,5 40,3

Cleaning products 41,5 21,8 48,0

Ships fuel 499,4 346,3 292,6

Cars fuel 3,9 4,0 5,3

Lubrificants 79,9 41,5 50,1

Foods 246,0 202,3 198,4

Medecines 6,1 5,0 5,3

Hotel and restaurant supplies 4,6 5,1 3,1

Clothing supplies 7,2 7,7 8,7

Office supplies 17,8 16,8 17,2

Other supplies consumption 4,3 1,7 8,5

Gas and electricity 2,2 2,5 2,5

Water 3,9 4,0 4,5

Industrial gas 17,4 16,0 69,5

Other accessories 0,06 0,1 -

TOTAL 1 162,9 986,4 1 173,1

2-2- External Services: The amount of the services realized in the year 2011 rises to 5.50 billion DA, i.e. a positive variation of 63% in comparison w ith the year 2010, that can be explained mainly by the grow th of repair expenses for 548%.

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ANNUAL REPORT 2011

The main categories composing this chapter are:

(Unit: Million DA) En Millions de DA

2011 2010 2009

Commercial fees 92,0 59,4 85 ,0

Rent 2 699,8 2 696,8 3 317,9

Rental charges 0,06 0,6 -

Maintenance and repair 2 442,1 377,1 1 916,7

Insurance profit 251,8 218,2 329,3

Documentation 16,0 25,1 20,1

TOTAL 5 501,8 3 377,2 5 669,0

2-3- Other external services:

The amount of this category, w itnessed for the year 2011, totals 0,59 billion DA, that is a negative variation of 4%, compared to 2010, due mainly to the regression of charges relevant to the follow ing items:

« Work-related travel, missions and receptions » and « Bank and similar services».

The amount of the other external services represent, for this year, 4% of the turnover and 5% of the operational charges amount.

The main expenses categories composing this item are detailed as follow :

(Unit: Million DA)

2011 2010 2009

Intermediate compensation and fees 278,0 272,8 393,9

Advertising, publication, public relation 6,8 7,7 4,0

Staff and material transport 32,6 31,5 0,8

Work-related travel, missions and

receptions 160,1 204,3 181,7

Postal and telecommunication fees 75,7 58,9 56,2

Bank and similar services 21,1 35,0 28,2

Assessment and others 11,9 - 8,1

TOTAL 586,2 610,2 672,9

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ANNUAL REPORT 2011

2-4- Staff charges Personnel charges registered in 2011 amounts to 4.22 billion DA, thus recording an increase of 7% compared to the trading year 2010.

This grow th is due to the collective agreement implementation relevant to the w ages improving “REV” since 2009 for a rate of 18% and to the government’ decision implementation for w ages improving for a rate of 5%.

This item represents 32% from the turnover and 32% from the amount of operational charges. The staff ’s charges are detailed as follow s:

(Unit: Million DA)

2011 2010 2009

Staff compensation 2 080,3 1 741,9 1 278,7

Indemnities/ services 931,5 872,9 804,6

Incentive profit 450,1 621,1 270,4

Social assessment 679,6 624,4 438,6

Other social charges 81,2 77,6 65,5

TOTAL 4 222,7 3 937,9 2 857,8

2-5- Rates, taxes and similar remittance: The amount of rates, taxes and similar remittance w itnessed for the year 2011, totals 180 million DA, i.e. a rise of 31% in comparison w ith the year 2010, due mainly to the increase of the banking domiciliation taxes for 159% and of Customs duties for 25%.

This item is represented by assistance and services, in currency, performed in Algeria; as well chartering for coastal traff ic.

The amount of rates, taxes and similar remittance represents, for the year 2010, 1% of the turnover and 1% of operational charges.

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ANNUAL REPORT 2011

Rates, taxes and similar remittance are detailed as follow s:

(Unit: Million DA)

2011 2010 2009

Unrecoverable rates and taxes on turnover

(TAP) 60,0 60,6 67,8

Registration duties on acts and markets - - 6,5

Stamps duties 0,6 0,9 0,8

Apprenticeship tax 12,8 12,0 12,6

Property tax 0,5 - 0,2

Banking domiciliation tax 50,2 19,4 5,2

Customs duties 55,5 44,6 35,3

TOTAL 179,6 137,5 128,4

2-6- Other operational charges:

The other operational charges, realised in 2011, rises to 248 million DA, i.e. an increase of 133% compared to the trading year 2010.

These charges are mainly composed of upturns on previous years sales (invoices related credits) for 100 million DA et and of bunkers at the ship redelivery (MBB, DM et Ras Tomb) for 116 million DA.:

The grow th was mainly noticed at the level of charges on previous years for 166% and upturns on products of the previous years 171%,

The other charges of current managing deal mainly w ith charges relevant to spare parts boarding formalit ies.

Donations relevant to festivals fees, of the 8th March, 2012.

Sponsoring for an amount of 0.71 million DA relevant to acquisition of data-processing equipments for ENSM Bou Ismail, amounting to 0.50 million DA and to the company involvement w ithin the framew ork of setting up of marine pollution seminar.

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ANNUAL REPORT 2011

Other operating charges' detail is as follows:

(Unit: Million DA)

2011 2010 2009

Allowance on investments 0,4 - -

Director’s fees 0,3 0,3 0,3

Fine, tax, customs and social penalties 3,1 4,8 3,3

Fine, trial penalties - 2,2 -

Donations 0,01 0,3 2,3

Sponsoring 0,7 0,2 3,1

Exceptional loss on supplies 0,07 - 0,2

Other charges of current managing 2,9 9,1 3,2

Charges on previous trading years 139,5 72,4 -

Upturns on products of previous

trading years 101,1 17,3 106,1

TOTAL 248,2 106,6 118,5

2-7- Financial charges:

Financial charges are essentially constituted of currency exchange losses that amount 100 million DA, in 2011, i.e. a regression of 82% compared to 2010.

Financial charges’ detail is as follows:

(Unit: Million DA)

2011 2010 2009

Interests of current accounts and credits

deposits - - 0,3

Currency rate exchange loss on re-

evaluation - 85,8 179,0

Currency rate exchange loss 99,9 457,3 173,3

TOTAL 99,9 543,1 352,6

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ANNUAL REPORT 2011

2-8- Amortization and provisions endowments and value losses:

The amount of the endow ments to amortizations, to constitution provision and to value losses rises to 1.07 billion DA, for the year 2011 i.e., an increase of 10% in comparison w ith the year 2010, due mainly to the subsequent endow ment to amortizations on new acquisitions. This item is detailed as follow :

(Unit: Million DA)

2011 2010 2009

Endowments to amortizations 1 053,0 692,0 569,9

Endowments to provisions 4,1 252,4 -

Credits-value losses 13,3 26,2 0.9

Financial endowments - 4,0 0,1

TOTAL 1 070,4 974,6 570,9

Endow ments to provisions, amounting to 4.1 million DA, due to the personnel disposal for OCEAN LINKE INTERNATIONAL, purchaser of the ship Hassi Rmel.

As for the reduction of endow ments to provisions, it is explained by the partial w ithdrawal of the retirement allow ance recorded during 2010.

Credits-value losses for 13.3 million DA represent the provision for the case under investigation (Arzew Agency).

2.9- IBS & differed taxes:

(Unit: Million DA)

2011 2010 2009

Differed taxes (variation) 66 63 0

Current income tax (IBS) 343 1 199 1 110

TOTAL 409 1 262 1 110

Current income tax w ent from 1 199 Million DA in 2010 to 343 Million DA in 2011 recording thus a regression of 856 Million DA, i.e. a rate of 71%.

This decrease is mainly due to the decrease of pre-tax ordinary income for 42% and to tax benefit obtained from A ND, rating to 44.81% over three years.

The f inancial impact, on the f inancial year 2011, amount to 277,017 KDA.

The deferred tax credit to 12/31/2011 is 66,166 KDA. It represents the deferred tax assets and liabilities variation.

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ANNUAL REPORT 2011

V- Financial ratios:

RATIOS 2011 2010 2009

Profit by number of shares (in million DA) (*)

0 ,182 0,258 0,057

Net result/ Capital cover 7% 11% 3%

Net result/Turnover 17% 25% 6%

Operating added value /Turnover 45% 60% 38%

Turnover/Total assets 30% 32% 35%

Self-financing/Turnover 25% 33% 10%

Capital cover /Permanent capitals 89% 88% 87%

Totale debts/Total assets 29% 26% 26%

(*) Number of shares in 2010 and 2011: 12 000 shares.

VI- Note on the accounting referential:

The trading year 2011 represents the second year of the implementation of the new Algerian accounting system SCF; and f inancial statements relevant to this year have been prepared and presented in accordance w ith the provisions of the new system.

The National Accounting Plan (NA P) established by Ordinance No. 75 -35 of 29/04/1975 w as repealed by Act No. 07-11 of 25.11.2007, concerning accounting and f inancial system and published in the off icial journal No. 74/2007 w hich came into force since January, 1st, 2010.

These new standards are based on some particular points in the valuation at fair value of assets and liabilities.

New Accounting Plan provides a conceptual device in the retrospective treatment of accounting methods changes w ith impacts in capital cover at the beginning of the trading year, w hen the amount of the adjustment relating to prior years can be reasonably determined.

The transition from PCN to NPP NPC is articulated around the operations below:

• Establishment of an opening balance sheet at 01/01/2010 according to the new regulations,

• Restatement of data of the trading year 2009, to allow the comparison of financial information 2010 with those of 2009 in the financial statements,

• Allocation on capital cover of the opening balance sheet the resulting adjustments to required restatements by this first application of the new accounting regulations,

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ANNUAL REPORT 2011

• Presentation in annex the detailed explanations of the impact of the transition to the new regulations on the financial situation, financial performance and cash flows presentation.

The company doesn’t show for this trading year the consolidated accounts including the f inancial statements of its subsidiaries. The accounts of the company and its subsidiaries will be consolidated within SONATRACH Group.

The company applied the tw o re-evaluation physical investments being legal and compulsory (Decrees N°90-103 of March 27th, 1990 and N°93-250 of October 24th, 1993). The re-evaluation gap was partly transferred to the company’s registered capital at the time of its legal transformation into a joint-stock company. The other part has been transformed as participation bonds in favour of Public Exchequer.

The company didn’t f ind it useful to apply a third optional re-evaluation planned by the Decree N°96-336 of October 12th, 1996 as it doesn’t procure any f iscal advantage.

Fixed asset is composed of patent, intangible and financial f ixed assets and represents the physical elements related to the company’ activity. It is also the means of production but also the lasting elements that can hold the Company.

1- Non-current assets:

1-1- Fixed intangible assets:

These are assets w ithout physical substance, non-financial (identif iable and intangible): software acquisitions. This account records the value of software acquired or developed by the Company. Its value corresponds to the cost of acquisition or the cost of software development.

1-2- Fixed tangible assets:

These are material investment of the company (onshore and offshore means of transport, lands, off ice buildings, computer and off ice equipment). They are valued to acquisit ion cost or to production cost.

1-2-1- Investments-redemption method: The investment redemption method adopted by Hyproc SC is the straight-line depreciation.

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ANNUAL REPORT 2011

The redemption duration used for the company’s main investments are as indicated below :

Investment nature Duration

Methane Carriers 30 years

Other ships 15 / 20 years

Buildings 20 years

Material and office furniture 10 years

Hardware 5 years

Software 3 years

Vehicles 5 years

Social facilities 10 years

Others 10 years

1-3- Current fixed assets: Values of assets not completed at the end of each trading year as w ell the advances paid to acquire f ixed assets.

1-4- Financial fixed assets:

These are assets w ithout physical substance but w ith f inancial criteria (subsidiaries stocks on Algerian companies and joint venture, receivables, related credits, bond loan, personnel loans, deposits and guarantees).

Participative stocks are recorded at their entry into property assets, at the value of their acquisition.

At the end of the trading year, shares are subject to a depreciation test to f ind a prospective value loss, in accordance w ith the general rules for asset valuation.

Credits on aff iliated companies concern, mainly, w ith the Company’ subsidiaries (JV loans, advances or other credits).

Stocks and credits hold on foreign companies are subject to a discount in exchange prevailing at the date of accounts closing.

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ANNUAL REPORT 2011

2- Current assets: 2-1- Stocks:

Hyproc SC, being a provider of Service Company, detains stocks that deal essentially w ith material and furniture supplies.

The stocks on board ships represent mainly bunkers, spare parts and store supplies. The bunkers and stores stocks’ value w as adapted according to the physical inventories estimated on the basis of the last cost of acquisition.

The cost of bunkers regarding ships that are under t ime-charter contracts, are for charterers’ account, therefore, they’re not included in the accounts.

The company’s stocks abroad consist mainly of spare intended to the ships repairs and that are stored generally in different ship-yards.

2-2- Credits and similar products:

This item consists of the different fund advances made to service suppliers, to the staff, to the taxes administration...

The account “advances for service” records essentially disbursement accounts’ advances made in favour of ship-agents and w hose documents w ere not forwarded to the company.

2-2-1-Customers:

Accounts recording credits to services sale related to the operating cycle of the Company, prepayments and advances to customers.

2-2-2- Other debtors: Staff remuneration, social w orks funds and other detentions for account and accrued liabilit ies

Foreign current credits:

The credits made in foreign currencies are recorded in dinars in accordance to the monthly exchange average rate in force, at the time of invoicing.

After payment, the exchange differences are expressed in terms of charges or in exceptional products as the case may be.

Foreign currency credits w ere updated in accordance w ith the exchange rate in force at the date of the accounts closing.

Losses or gains exchange are changed, respectively, to f inancial expenses or f inancial income of the year.

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ANNUAL REPORT 2011

Account 42 « Personnel and related accounts»

Reveals credits and debts tow ards staff, wages due, social w ork funds, employees stocks in the result, detentions for accounts, deposits and advances granted to staff and accrued liabilit ies and incomes.

Account 428 « Personnel - accrued charges » This account allow s the recording of income and expenses related to the ended trading year, namely the company debts tow ards its staff for holiday pay, profit sharing or bonus to be aw arded.

Account 46 « Miscellaneous debtors and creditors »

Deals w ith accounts of third parties that do not f ind their assignment in the other accounts such as credits on investment disposal.

Account 467 "miscellaneous debtors" records other operating products.

Account 467 "miscellaneous creditors" records other operating expenses, invoicing food on board

Account 48 « accrual account »

It records prepaid expenses including the service provision that occur later and deferred income without benefits have been made.

Account 49 « values loss on stocks accounts »

This account records value loss on credits and it is realized w hile a possible loss (less value than the input value) w hose effects are considered reversible.

This loss is recognized on customers, other debtors and other accounts of third parties.

2-2-3- Related taxes These are taxes on profit, added value tax, tax on professional activities and customs duties.

3- Cash and similars: Contains f inancial transactions and bank accounts established in Algeria and abroad, postal accounts and various funds

3-1- Foreign currency availabilities:

Bank operations made on foreign currency bank accounts are recorded in dinars according to the average-balanced-exchange rate.

The availabilit ies in foreign currencies are updated in conformity w ith the exchange rate in force at the closing date.

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ANNUAL REPORT 2011

Liability: Liability is w hat the Company have (a resource to be used for the company). It is composed of three main categories :

4- Capital cover: Called also ow n funds; include initial capitals, reserves relating to profits that have not been redistributed in dividends, and the trading year result.

Capitals ensure the company w orthiness.

4-1- Registered capital: The company registered capital amounts to 12 Billion DA. It is held by a single shareholder "SVH" Sonatrach Valorisation of Hydrocarbons at 100%.

4-2- Profits and reserves:

This account consists of tw o types of reserves namely legal and optional reserves

The legal reserve is intended to strengthen the guarantee of third parties dealing w ith the company.

The endow ment is equal to 5% of the year profit decreased from the potential retained earning debtor account.

The optional reserve: This account records all other reserves, those decided by the general meeting without being provided either by the statutes or by contractual clauses.

4-3- Re-evaluation surplus:

Deal w ith land revaluation located in Aïn El Bya Bethioua ORAN w hich w as carried through a notarial act.

Re-evaluation principle is to solve the problem of the past cost accounting principle. Indeed, the remaining capital assets at their cost of entry and give no accurate picture of propriety due to monetary erosion.

Free re-evaluation: w hen re-evaluation decision w as taken, it should include all patent and f inancial assets when quoted on an exchange market.

4-4- Trading year net result:

Net result (or net benefit in tax purpose) of the company during the period.

It is equal to the difference, on one hand, betw een products and charges (f inancial and exceptional operating); and on the other hand, betw een signif icant transactions related to prior years that affected capital cover (according to the NSCF).

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4-5- Other Own funds (postponed): Retained earnings is an accumulated profits or losses of previous years undistributed reserves and unallocated.

Retained earnings can be confused w hen a change in a resulting accounting system w hich causes a change in capital cover.

5- Non-current liability:

5-1- Loans and financial debts: The contribution stocks w ere f irstly detained on the company by the Public Exchequer. Their payment w as variable according to the company’s results and the rediscount rate of the Algeria Bank.

These tit les w ere the subject of redemption by Sonatrach, in 2005.

5-2- Provisions: This item consists of the funds for probable losses (litigation, charges likely to happen) and funds for charges to split on several years (great ship repairs) that have not been made in accordance w ith new accounting standards. These major repairs must be made by including maintenance chapter of the related asset.

6- Current liability: This item includes debts tow ards suppliers and receivable accounts, taxes and debts.

6-1- Suppliers:

Supplier accounts are intended to record debts related to the acquisition of goods and services, in advances and deposits granted.

6-1-1- Foreign currency debts: The debts expressed in foreign currencies are recorded in dinars according to the average-monthly exchange rate being in force at the moment of the accounting verif ication. After payment, the exchange differences are expressed in terms of charges or in exceptional products as the case may be.

The debts in foreign currency w ere updated to the exchange rate in force at the date of accounts closing. How ever, as a safety measure, latent losses are provisioned.

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Rapport de gestion 2011 ANG FINALx - HYPROC · V- As to the company’ organization file which is...

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