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AFFILIATES BALANCES
3 Months Ended
Mar. 31, 2020
Equity Method Investments And Joint Ventures [Abstract]  
AFFILIATES BALANCES

(7)

AFFILIATES BALANCES

 

We maintained the following balances with our unconsolidated affiliates:

 

(In thousands)

 

March 31, 2020

 

 

December 31, 2019

 

Due from related parties:

 

 

 

 

 

 

 

 

Sonatide (Angola)

 

$

94,958

 

 

$

89,246

 

DTDW (Nigeria)

 

 

33,246

 

 

 

36,726

 

 

 

 

128,204

 

 

 

125,972

 

Due to related parties:

 

 

 

 

 

 

 

 

Sonatide (Angola)

 

$

30,774

 

 

$

31,475

 

DTDW (Nigeria)

 

 

19,239

 

 

 

18,711

 

 

 

 

50,013

 

 

 

50,186

 

Due from related parties, net of due to related parties

 

$

78,191

 

 

$

75,786

 

 

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.

 

 

 

Three Months

 

 

 

Ended

 

(In thousands)

 

March 31, 2020

 

Due from Sonatide at December 31, 2019

$

 

89,246

 

Revenue earned by the company through Sonatide

 

 

11,812

 

Less amounts received from Sonatide

 

 

(2,691

)

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

 

 

(4,864

)

Other

 

 

1,455

 

Total due from Sonatide at March 31, 2020

$

 

94,958

 

 

 

(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 are 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.  In late 2019, we were informed that, as part of a broad privatization program, Sonangal intends to seek to divest itself from the Sonatide joint venture.

 

After offsetting the amounts due to Sonatide, the net amount due from Sonatide at March 31, 2020 was approximately $64.2 million. Sonatide had approximately $45.6 million of cash on hand (approximately $3.2 million denominated in Angolan kwanzas) at March 31, 2020 plus approximately $18.9 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 in part on available liquidity held by Sonatide.

 

Amounts due to Sonatide

 

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

 

 

 

Three Months

 

 

 

Ended

 

(In thousands)

 

March 31, 2020

 

Due to Sonatide at December 31, 2019

$

 

31,475

 

Plus additional commissions payable to Sonatide

 

 

1,138

 

Plus amounts paid by Sonatide on behalf of the company

 

 

2,336

 

Less commissions paid to Sonatide during the period

 

 

 

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

 

 

(4,864

)

Other

 

 

689

 

Total due to Sonatide at March 31, 2020

$

 

30,774

 

 

 

(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 two vessels 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

 

 

Three Months

 

 

 

Ended

 

 

Ended

 

 

 

March 31, 2020

 

 

March 31, 2019

 

Revenues of Angolan operations (in thousands)

 

$

12,137

 

 

$

15,000

 

Percent of consolidated vessel revenues

 

 

11

%

 

 

13

%

Number of company owned vessels in Angola

 

 

28

 

 

 

35

 

Number of stacked company owned vessels in

   Angola

 

 

11

 

 

 

14