XML 28 R15.htm IDEA: XBRL DOCUMENT

Note 7 - Affiliates Balances

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

(7)

AFFILIATES BALANCES

We maintained the following balances with our unconsolidated affiliates:

(In thousands)		March 31, 2021				December 31, 2020
Due from affiliates:
Angolan joint venture (Sonatide)		$	41,843			$	41,623
Nigeria joint venture (DTDW)			20,631				20,427
			62,474				62,050
Due to affiliates:
Sonatide		$	35,725			$	32,767
DTDW			20,631				20,427
			56,356				53,194
Net due from affiliates		$	6,118			$	8,856

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. The following table displays the activity in the due from affiliate account related to Sonatide for the period indicated:

		Three Months
		Ended
(In thousands)		March 31, 2021
Due from Sonatide at December 31, 2020		$	41,623
Revenue earned by the company through Sonatide			8,695
Less amounts received from Sonatide			(8,162	)
Other			(313	)
Total due from Sonatide at March 31, 2021		$	41,843

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. In late 2019, we were informed that, as part of a broad privatization program, Sonangol, our partner in Sonatide, 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, 2021 was approximately $6.1 million. Sonatide had approximately $9.5 million of cash on hand (approximately $1.0 million denominated in Angolan kwanzas) at March 31, 2021 plus approximately $9.2 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 due from Sonatide balance for possible additional impairment in future periods 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. The following table displays the activity in the due to affiliate account related to Sonatide for the period indicated:

		Three Months
		Ended
(In thousands)		March 31, 2021
Due to Sonatide at December 31, 2020		$	32,767
Plus additional commissions payable to Sonatide			814
Plus amounts paid by Sonatide on behalf of the company			2,089
Other			55
Total due to Sonatide at March 31, 2021		$	35,725

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
		March 31, 2021				March 31, 2020
Revenues of Angolan operations (in thousands)		$	9,292			$	12,137
Percent of consolidated vessel revenues			11	%			11	%
Number of company owned vessels in Angola			22				28
Number of stacked company owned vessels in Angola			6				11

Amounts due from DTDW

We own 40% of DTDW in Nigeria. Our partner, who owns 60%, is a Nigerian national. DTDW owns one offshore service vessel and has long-term debt of $4.7 million which is secured by the vessel and guarantees from the DTDW partners (in proportion to their ownership interests). We also, from time to time, operate company owned vessels in Nigeria for which our partner receives a commission. As of March 31, 2021, we had no company owned vessels operating in Nigeria and the DTDW owned vessel was not employed. As a result, the near-term cash flow projections indicate that DTDW does not have sufficient funds to meet its obligations to us or to the holder of its long-term debt. Based on current situations, operations in Nigeria have been severely impacted and the scope of our activity is winding down. We have created a fully reserved position in our consolidated balance sheet to account for our expected liabilities related to the debt guarantee and certain obligations of the joint venture. On April 22, 2021 we paid approximately $2.0 million which represents our portion of the joint venture debt guarantee.