Managing Director's Financial Report 2005
INTERTANKO’s financial statements are presented on the basis of continuing business. The Secretariat’s
personnel have not been subject to any mishaps or accidents in their working environment during the year.
Health and safety policies and procedures are subject to regular review. The working environments in the
respective offices are considered to be good.
It is the Management’s opinion that the financial statement, as presented, provides adequate information to
assess the Association’s financial situation and the result for the year. Nothing has happened after the year-end
which would materially effect the Association’s financial situation or the result for the year.
INTERTANKO’s Management has recommended that the surplus of USD 583 041 for 2005 be transferred to
the Capital Fund, which at the end of the year stands at USD 1 460 525.
Peter Swift
Managing Director
27 February, 2006
INTERTANKO Profit and Loss Account for the Year Ending 31 December 2005
Expressed in USD
|
|
2005
|
|
2004
|
Note
|
|
|
|
|
|
|
|
I N C O M E
|
|
|
|
|
|
Membership Fees
|
3 894
516
|
|
3 694
522
|
|
|
Associate Membership Fees
|
735 318
|
|
666 591
|
|
|
Surcharge
|
448 045
|
|
0
|
|
|
Membership FDIP
|
143 999
|
|
152 000
|
|
|
Service Charge
|
476 321
|
|
330 925
|
|
|
Publications
|
472 016
|
|
408 477
|
|
|
Advertising
|
118 881
|
|
102 993
|
|
|
INTERTANKO Courses
|
1 898
|
|
2 234
|
|
|
Tanker Events- Income
|
388 372
|
|
274 348
|
|
|
Total Operating Income
|
6 769
366
|
|
5 632
090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
E X P E N S E S
|
|
|
|
|
|
Salaries & Benefits
|
2 811
672
|
|
2 532
710
|
2
|
|
Social Security / Pensions
|
829 663
|
|
716 178
|
|
Meetings
|
179 153
|
|
141 520
|
|
|
Tanker Events- Expenses
|
298 389
|
|
329 453
|
|
|
Travels
|
446 828
|
|
377 355
|
|
|
Regional Representation
|
87 433
|
|
92 320
|
|
|
Consultancy
|
533 673
|
|
636 999
|
|
|
Representation U.S. Legislation
|
15 667
|
|
42 330
|
|
|
Public Relations
|
12 070
|
|
12 131
|
|
|
Projects / Research
|
56 641
|
|
38 185
|
|
|
Subscriptions
|
44 231
|
|
26 628
|
|
|
Printing
|
81 562
|
|
98 378
|
|
|
Post / Telephone
|
165 086
|
|
195 426
|
|
|
Office Expense / Rent
|
702 567
|
|
643 736
|
|
|
Total Operating Expenses
|
-6 264
635
|
|
-5 883
348
|
|
|
|
|
|
|
|
|
Operating Surpuls / Deficit
|
504
731
|
|
-251
258
|
|
|
|
|
|
|
|
|
Interest Income
|
41 821
|
|
8 279
|
|
|
Exchange Gains
|
112 717
|
|
10 754
|
|
|
Sum Non-Operating Income
|
154 538
|
|
19 033
|
|
|
|
|
|
|
|
|
Interest Expenses / Bank Charges
|
34 335
|
|
33 279
|
|
|
Depreciation
|
41 893
|
|
45 622
|
|
|
Sum Interest Exp. & Depreciation
|
-76 228
|
|
-78 901
|
|
|
|
|
|
|
|
|
Surplus / Deficit before Extraordinary Items
|
583
041
|
|
-311
126
|
|
|
|
|
|
|
|
|
Extraordinary Items
|
0
|
|
-149 196
|
|
|
|
|
|
|
|
|
Surplus / Deficit for the Year
|
583
041
|
|
-460
322
|
|
INTERTANKO Balance Sheet as of 31 December 2005
Expressed in USD
|
|
2005
|
|
2004
|
Note
|
|
|
|
|
|
|
|
A S S E T S
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Assets
|
|
|
|
|
|
Office Furniture & Data Equipment
|
180 111
|
|
222 004
|
3
|
|
Total Fixed Assets
|
180 111
|
|
222 004
|
|
|
|
|
|
|
|
|
Long-term Investments
|
|
|
|
|
|
Long-term Mortgage Loans to Employees
|
2 506
|
|
3 362
|
4
|
|
Total Long-term Investments
|
2 506
|
|
3 362
|
|
|
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
Other Short-term Receivables
|
313 512
|
|
360 976
|
|
|
Accounts Receivable
|
194 791
|
|
48 100
|
|
|
Cash and Bank
|
1 587 966
|
|
936
395
|
5
|
|
Total Current Assets
|
2 096
269
|
|
1 345
472
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
2 278
886
|
|
1 570
837
|
|
|
|
|
|
|
|
|
L I A B I L I T I E S A N D C A P I T A L
|
|
|
|
|
|
|
|
|
|
|
|
Capital
|
|
|
|
|
|
Capital Fund 01.01.--
|
887
484
|
|
1 337
806
|
|
|
Surplus/Deficit for the Year
|
583
041
|
|
-460
322
|
|
|
Capital Fund 31.12.--
|
1 460 525
|
|
877
484
|
|
|
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
Accounts Payable
|
22 295
|
|
67 834
|
|
|
Withheld Taxes, Social Security & Holiday Pay
|
185 143
|
|
227 152
|
|
|
Accrued Expenses & Deferred Income
|
610 923
|
|
398 367
|
|
|
Total Current Liabilities
|
818 361
|
|
693 353
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND CAPITAL
|
2 278
886
|
|
1 570
837
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oslo, 27 February, 2006
|
|
|
|
|
Notes to the Financial Statements for the year ended December 31, 2005
1. Accounting Principles
The financial statements are prepared in accordance with the Norwegian Accounting Act and generally accepted
accounting principles.
Assets and liabilities in Norwegian kroner at 31 December, 2005 have been translated at the year-end exchange rate:
for 2005 USD 1=NOK 6.78471 (2004 USD 1=NOK 6.0386).
Fixed assets, expressed in USD, are valued at cost and depreciated over their economic life.
2. Salaries & Social Security/Pensions
Salaries & Social Security/Pensions expenses are made up of the following amounts:
|
Salaries:
|
USD
|
2 743 170
|
|
Other
benefits:
|
USD
|
68 502
|
|
Pension
premiums:
|
USD
|
449 150
|
|
Social
security:
|
USD
|
380 513
|
3. Fixed Assets
Changes in the balance of fixed assets for 2005 were as follows:
|
Acquisition
cost at 01 Jan:
|
USD
|
418 566
|
|
Purchases
during the year:
|
USD
|
0
|
|
Sales/scrapping during the year:
|
USD
|
0
|
|
Acquisition
cost at 31 Dec:
|
USD
|
418 566
|
|
Accumulated
depreciation at 01 Jan:
|
USD
|
196 562
|
|
Depreciation
for the year:
|
USD
|
41 893
|
|
Depreciation
on sold/scrapped assets:
|
USD
|
0
|
|
Accumulated
depreciation at 31 Dec:
|
USD
|
238 455
|
|
Closing
balance at book value:
|
USD
|
180 111
|
4. Long-term Mortgage Loans to Employees
This represents a loan to 1 employee, which is secured by a mortgage on the property.
5. Cash and Bank
Included in cash and bank balances at 31 December, 2005 is a restricted bank account for withheld taxes amounting
to USD 49 073.
6. Pension Premium Fund
INTERTANKO’s Oslo-based employees are covered by a pension insurance scheme, which gives them the right to
defined pension rights in the future. The pension right is mainly dependent on the number of earned years and the
salary level at the time of reaching pension age, which is 67 in Norway. The pension scheme is organised and
managed by a local insurance company. At 31 December, 2005 the pension scheme covered 13 employees with an
average of 18 years remaining until retirement.
The following transactions on the pension premium fund were noted during 2005 (in Norwegian kroner):
|
Opening
balance 01 Jan:
|
NOK
|
1 879
786
|
|
Adjustments relating to earlier years:
|
NOK
|
-81 630
|
|
Premiums for the year:
|
NOK
|
-1 362 651
|
|
Payments to the premium fund:
|
NOK
|
-1 362 651
|
|
Interest & dividends:
|
NOK
|
70 946
|
|
Closing
balance 31 Dec:
|
NOK
|
1 869 102
|
7. Number of Employees and Remuneration/Allowances to Managing Director
Average number of employees during 2005 was 25.
Remuneration/Allowances to Managing Director:
|
Salary:
|
USD
|
162 882
|
|
Pension:
|
USD
|
65 116
|
|
Bonus:
|
USD
|
30 000
|
|
Sum:
|
|
257 998
|
8. Auditor’s Remuneration
The auditor’s remuneration for 2005 was USD 7 908 (NOK 53 651). No additional assistance was provided by the
audit company during 2005.
INTERTANKO Cash Flow Statement
Expressed in USD
|
|
2005
|
|
2004
|
|
|
|
|
|
|
|
|
Surplus/Deficit for the Year
|
583
041
|
|
-460
322
|
|
|
|
|
|
|
|
|
Depreciation for the Year
|
41 893
|
|
45 622
|
|
|
Change
in Current Receivables
|
-99
227
|
|
-197 171
|
|
|
Change
in Current Liabilities
|
125 008
|
|
295 662
|
|
|
|
|
|
|
|
|
Net Cash From Operating Activities
|
650
715
|
|
-316
209
|
|
|
|
|
|
|
|
|
Change
in Long-term Inv./Fixed Assets
|
855
|
|
-2 528
|
|
|
|
|
|
|
|
|
Net Cash From Investing Activities
|
855
|
|
-2 528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Change in Liquid Assets
|
651
570
|
|
-318
737
|
|
|
|
|
|
|
|
|
Cash
& Bank at 01.01.--
|
936
396
|
|
1 255
133
|
|
|
|
|
|
|
|
|
Cash & bank at 31.12.--
|
1 587 966
|
|
936 396
|
|
Auditor’s Report
Comments to INTERTANKO’s Financial Result for the Year Ending 31 December, 2005
Total operating income for 2005 was substantially higher than for 2004 (up USD 1 137 276) and USD 716 274 over
budget. This was principally due to the 10% surcharge applied to 2005 membership and associate membership fees.
However, operating income (compared with 2004) rose also in part due to the following:
- Membership and associate membership fees. Fee income increased by 8% and 10% respectively. Fee rate
increases from 2004 to 2005 were 5%.
- Service charges paid by INTERCARGO to INTERTANKO to cover its part of expenses resulting from the
operation of the joint secretariat.
- Continued high publication sales. Up USD 63 539 compared with 2004.
Tanker event income in 2005 was considerably higher than in 2004 (up 41% to USD 114 024), while tanker event
expenses were somewhat lower (down USD 31 604). The resulting USD 89 983 surplus on tanker event activities
was a significant improvement on 2004’s deficit of USD 55 105 and better than the budgeted surplus for 2005 of
USD 20 000.
Total operating expenses for 2005 were USD 381 287 higher than those of the previous year and USD 262 904 over
budget. The most significant changes in expenses, compared with 2004 were the following:
- Salaries & Benefits. Up 11% (5% over budget). Much of the increase compared to 2004 relates to
INTERCARGO payroll expenses (recouped through the higher Service Charge). The remainder (overrun
compared to budget) is due to performance bonuses paid to staff. The general level of salary increases for
2005 was 2%.
- Travels. Up USD 69 474 (18%). A reflection of high activity during 2005. Travel expenses were however
USD 23 672 lower than budgeted.
- Consultancy. Down USD 103 326 (16%) owing to the termination of a retainer agreement.
Non-operating items for 2005 were generally in line with 2004 levels, with the exception of extraordinary items
(USD 0 for 2005) and exchange gains, which were significantly higher.
For 2005 INTERTANKO’s operating surplus was USD 504 731 and the overall surplus for the year USD 583 041.
INTERTANKO Actual & Budget for 2004
Expressed in USD
|
|
2005
|
2005
|
Discre-
|
|
|
|
Actual
|
Budget
|
pancy
|
|
|
I N C O M E
|
|
|
|
|
|
Membership Fees
|
3 984
516
|
3 967
781
|
16 735
|
|
|
Associate Membership Fees
|
735 318
|
751 933
|
-16 615
|
|
|
Surcharge
|
448 045
|
0
|
448 045
|
|
|
Membership FDIP
|
143 999
|
150 400
|
-6 401
|
|
|
Service Charge
|
476 321
|
484 578
|
-8 257
|
|
|
Publications
|
472 016
|
265 400
|
206 616
|
|
|
Advertising
|
118 881
|
100 000
|
18 881
|
|
|
INTERTANKO Courses
|
1 898
|
3 000
|
-1 102
|
|
|
Tanker Events- Income
|
388 372
|
330 000
|
-58 372
|
|
|
Total Operating Income
|
6 769
366
|
6 053
092
|
716 274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
E X P E N S E S
|
|
|
|
|
|
Salaries & Benefits
|
2 811
672
|
2 677
618
|
-134
054
|
|
|
Social Security / Pensions
|
829 663
|
697 089
|
-132
574
|
|
|
Meetings
|
179 153
|
153 275
|
-25 878
|
|
|
Tanker Events- Expenses
|
298 389
|
310 000
|
11 611
|
|
|
Travels
|
446 828
|
470 500
|
23 672
|
|
|
Regional Representation
|
87 433
|
104 000
|
16 567
|
|
|
Consultancy
|
533 673
|
497 333
|
-36 340
|
|
|
Representation U.S. Legislation
|
15 667
|
10 000
|
-5 667
|
|
|
Public Relations
|
12 070
|
5 000
|
-7 070
|
|
|
Projects / Research
|
56 641
|
83 650
|
27 009
|
|
|
Subscriptions
|
44 231
|
30 900
|
-13 331
|
|
|
Printing
|
81 562
|
74 500
|
-7 062
|
|
|
Post / Telephone
|
165 086
|
169 500
|
4 414
|
|
|
Office Expense / Rent
|
702 567
|
718 366
|
15 799
|
|
|
Total Operating Expenses
|
-6 264
635
|
-6 001
731
|
-262
904
|
|
|
|
|
|
|
|
|
Operating Surplus
|
504
731
|
51 361
|
453
370
|
|
|
|
|
|
|
|
|
Interest Income
|
41 821
|
30 000
|
11 821
|
|
|
Exchange Gains
|
112 717
|
100 000
|
12 171
|
|
|
Sum Non-Operating Income
|
154 538
|
130 000
|
24
538
|
|
|
|
|
|
|
|
|
Interest Expenses / Bank Charges
|
34 335
|
30 000
|
-4 335
|
|
|
Depreciation
|
41 893
|
50 000
|
8 107
|
|
|
Sum Interest Exp. & Depreciation
|
-76 228
|
-80 000
|
3 772
|
|
|
|
|
|
|
|
|
Surplus before Extraordinary Items
|
583
041
|
101 361
|
481
680
|
|
|
|
|
|
|
|
|
Extraordinary Items
|
0
|
0
|
0
|
|
|
|
|
|
|
|
|
Surplus for the Year
|
583
041
|
101 361
|
481
680
|
|