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Note 5 - Investment in Unconsolidated Affiliates | 12 Months Ended
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Dec. 31, 2022
Notes to Financial Statements |
Equity Method Investments and Joint Ventures Disclosure [Text Block] |
(5) | INVESTMENT IN UNCONSOLIDATED AFFILIATES
We maintained the following balances with our unconsolidated affiliates:
(In Thousands) |  | December 31, |  |  | December 31, |
|  | 2022 |  |  | 2021 |
Due from affiliates: |  |  |  |  |  |  |  |
Angolan joint venture (Sonatide) |  | $ | — |  |  | $ | 49,011 |
Nigerian joint venture (DTDW) |  |  | — |  |  |  | 21,123 |
|  |  | — |  |  |  | 70,134 |
Due to affiliates: |  |  |  |  |  |  |  |
Sonatide |  | $ | — |  |  | $ | 40,432 |
DTDW |  |  | — |  |  |  | 21,123 |
|  |  | — |  |  |  | 61,555 |
Due from affiliates, net of due to affiliates |  | $ | — |  |  | $ | 8,579 |
Amounts due from Sonatide Amounts due from Sonatide (Due from affiliate in the consolidated balance sheets) at December 31, 2021 of approximately $49.0 million represent cash received by Sonatide from customers and due to us, amounts due from customers that are expected to be remitted to us through 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 periods indicated:
(In Thousands) |  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Due from Sonatide at beginning of year |  | $ | 49,011 |  |  | $ | 41,623 |  |  | $ | 89,246 |
Revenue earned by the company through Sonatide |  |  | — |  |  |  | 41,775 |  |  |  | 44,254 |
Less amounts received from Sonatide |  |  | — |  |  |  | (26,429 | ) |  |  | (36,160 | )
Less amounts used to offset Due to Sonatide obligations (A) |  |  | — |  |  |  | (8,530 | ) |  |  | (11,848 | )
Less impairment of due from affiliate |  |  | — |  |  |  | (400 | ) |  |  | (40,900 | )
Write off of due from affiliate in connection with the acquisition |  |  | (49,011 | ) |  |  | — |  |  |  | — |
Other |  |  | — |  |  |  | 972 |  |  |  | (2,969 | )
|  | $ | — |  |  | $ | 49,011 |  |  | $ | 41,623 |
| (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.
In January 2022, we acquired the 51% interest of Sonatide previously held by our partner, which has resulted in Sonatide becoming a wholly-owned subsidiary. Refer to Note (2) for discussion of the acquisition. In the second quarter of 2020 Sonatide declared a $35.0 million dividend. On June 22, 2020, Sonangol received $17.8 million and we received $17.2 million. Our share of the dividend is reflected as dividend income from unconsolidated company in the consolidated statement of operations. In addition, as a result of this dividend payment, the cash balances of the joint venture were significantly reduced and we determined that, as a result, a significant portion of our net due from Sonatide balance was compromised. During the years ended December 31, 2021 and 2020, we recorded a $0.4 million and $40.9 million affiliate credit loss impairment expense, respectively. Amounts due to Sonatide Amounts due to Sonatide (Due to affiliate in the consolidated balance sheets) at December 31, 2021 of approximately $40.4 million, primarily represents 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 periods indicated:
(In Thousands) |  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Due to Sonatide at beginning of year |  | $ | 40,432 |  |  | $ | 32,767 |  |  | $ | 31,475 |
Plus commissions payable to Sonatide |  |  | — |  |  |  | 3,832 |  |  |  | 4,152 |
Plus amounts paid by Sonatide on behalf of the company |  |  | — |  |  |  | 10,914 |  |  |  | 9,037 |
Less amounts used to offset Due from Sonatide obligations (A) |  |  | — |  |  |  | (8,530 | ) |  |  | (11,848 | )
Write off of due to affiliate in connection with the acquisition |  |  | (40,432 | ) |  |  | — |  |  |  | — |
Other |  |  | — |  |  |  | 1,449 |  |  |  | (49 | )
|  | $ | — |  |  | $ | 40,432 |  |  | $ | 32,767 |
| (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.
Company operations in Angola For the year ended December 31, 2021, our Angolan operation generated vessel revenues of approximately $43.2 million or 11.9% of our consolidated vessel revenues, from an average of approximately 24 company owned vessels that are marketed through Sonatide, five of which were stacked on average during the year ended December 31, 2021. For the year ended December 31, 2020, our Angolan operation generated vessel revenues of approximately $45.3 million or 11.7% of our consolidated vessel revenues, from an average of approximately 23 company owned vessels that are marketed through Sonatide, six of which were stacked on average during the year ended December 31, 2020. 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. We also operate company owned vessels in Nigeria for which the joint venture receives a commission. All company owned vessels and the DTDW owned vessel have not been operating in Nigeria since early 2020, because of the COVID-19 pandemic and the resulting oil price reduction which caused most of our primary customers in Nigeria to eliminate all planned operations for 2020. As a result, our cash flow projections indicated that DTDW did not have sufficient funds to meet its obligations to us or its vendors. Therefore, we recorded affiliate credit loss impairment expense for the year ending December 31, 2020 totaling $12.1 million. As of December 31, 2020, DTDW had long-term debt of $4.7 million which was secured by the vessel owned by DTDW and guarantees from the DTDW partners (in proportion to their ownership interests). We recorded additional impairment expense of $2.0 million which represented our portion of the joint venture debt guarantee during the year ended December 31, 2020. On April 22, 2021, we paid approximately $2.0 million, to settle this debt guarantee and our partner assumed the remaining joint venture debt which represented his portion of the guarantee. In 2022, we entered into a netting arrangement with our partner allowing either partner to discharge their obligations by netting these amounts against sums owed by the other partner. In accordance with this agreement, we have the ability to net our due from affiliate balance against the due to affiliate balance on our consolidated balance sheet. The net due from affiliate balance equals the net due to affiliate balance at December 31, 2022 and, as a result, there is a net zero balance in both the due to affiliate and the due from affiliate accounts on our consolidated balance sheet.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI https://asc.fasb.org/topic&trid=2196965 + Details
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