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AFFILIATES BALANCES
9 Months Ended
Sep. 30, 2019
Equity Method Investments And Joint Ventures [Abstract]  
AFFILIATES BALANCES

(7)

AFFILIATES BALANCES

 

We maintained the following balances with our unconsolidated affiliates:

 

(In thousands)

 

September 30, 2019

 

 

December 31, 2018

 

Due from related parties:

 

 

 

 

 

 

 

 

Sonatide (Angola)

 

$

91,801

 

 

 

109,176

 

DTDW (Nigeria)

 

 

32,956

 

 

 

23,775

 

 

 

 

 

 

 

 

 

 

Due to related parties:

 

 

 

 

 

 

 

 

Sonatide (Angola)

 

$

27,141

 

 

 

29,347

 

DTDW (Nigeria)

 

 

14,535

 

 

 

5,625

 

 

 

 

 

 

 

 

 

 

Due from related parties, net of due to related parties

 

$

83,081

 

 

 

97,979

 

 

Amounts due from Sonatide

 

Amounts due from Sonatide represent cash received by Sonatide from customers and due to us, amounts due from customers that are expected to be remitted to us by Sonatide and costs incurred by us on behalf of Sonatide.

 

 

 

Nine Months

 

 

 

Ended

 

(In thousands)

 

September 30, 2019

 

Due from Sonatide at December 31, 2018

 

$

109,176

 

Revenue earned by the company through Sonatide

 

 

41,184

 

Less amounts received from Sonatide

 

 

(45,393

)

Less amounts used to offset Due to Sonatide obligations (A)

 

 

(10,551

)

Other

 

 

(2,615

)

Total due from Sonatide at September 30, 2019

 

$

91,801

 

 

 

(A)

We reduced the respective due from affiliates and due to affiliates balances each period through netting transactions based on agreement with the joint venture.

 

The amounts due from Sonatide is denominated in U.S. dollars; however, the underlying third-party customer payments to Sonatide were satisfied, in part, in Angolan kwanzas. We and Sonangol, our partner in Sonatide, have had discussions regarding how the net losses from the devaluation of certain Angolan kwanza denominated accounts should be shared.

 

After offsetting the amounts due to Sonatide, the net amount due from Sonatide at September 30, 2019 was approximately $64.7 million. Sonatide had approximately $52.2 million of cash on hand (approximately $14.4 million denominated in Angolan kwanzas) at September 30, 2019 plus approximately $18.4 million of net trade accounts receivable to satisfy the net due from Sonatide. Given prior discussions with our partner regarding how the net losses from the devaluation of certain Angolan kwanza denominated accounts should be shared, we continue to evaluate our net amount due from Sonatide balance for potential impairment based on available liquidity held by Sonatide.

 

Amounts due to Sonatide

 

Amounts due to Sonatide represent commissions payable and other costs paid by Sonatide on behalf of us.

 

 

 

Nine Months

 

 

 

Ended

 

(In thousands)

 

September 30, 2019

 

Due to Sonatide at December 31, 2018

 

$

29,347

 

Plus additional commissions payable to Sonatide

 

 

3,914

 

Plus amounts paid by Sonatide on behalf of the company

 

 

7,342

 

Less commissions paid to Sonatide during the period

 

 

(5,961

)

Less amounts used to offset Due from Sonatide obligations (A)

 

 

(10,551

)

Other

 

 

3,050

 

Total due to Sonatide at September 30, 2019

 

$

27,141

 

 

 

(A)

We reduced the respective due from affiliates and due to affiliates balances each period through netting transactions based on agreement with the joint venture.

 

Sonatide Operations

 

Sonatide’s principal earnings are from the commissions paid by us to the joint venture for company vessels chartered in Angola. In addition, Sonatide owns three vessels (one of which is currently stacked) that may generate operating income and cash flow.

 

Company operations in Angola

 

Vessel revenues generated by our Angolan operations, percent of consolidated vessel revenues, average number of company owned vessels and average number of stacked company owned vessels of our Angolan operations for the periods indicated were as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

2019

 

 

September 30,

2018

 

 

September 30,

2019

 

 

September 30,

2018

 

Revenues of Angolan operations (in thousands)

 

$

11,534

 

 

 

15,154

 

 

 

41,194

 

 

 

43,874

 

Percent of consolidated vessel revenues

 

 

10

%

 

 

16

%

 

 

11

%

 

 

15

%

Number of company owned vessels in Angola

 

 

31

 

 

 

36

 

 

 

33

 

 

 

38

 

Number of stacked company owned vessels in

   Angola

 

 

14

 

 

 

16

 

 

 

14

 

 

 

16