PT BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIESCONSOLIDATED BALANCE - PDF document

1 P.T. BERLIAN LAJU TANKER Tbk AND ITS SUB
P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIESCONSOLIDATED BALANCE SHEETS ) June 30,December 31,Notes20092008US$'000US$'000 EQUIT Y Share capital1362,191 62,191Additional paid-in capital1465,000 65,000Treasury stocks15(86,628) (86,628)Translation adjustment 776 398 s 113,007 (1,865)Revaluation reserve16209,917 234,454 s 395,774 y 669,324 s Bank loans17794,120 716,993Bonds payable 18129,982 81,528 e 19189,897 132,000 e 20227,256 155,376 e 2111,818 12,409 2,266 s 223,673 2,922Convertible bonds23- 36,250Derivative financial instruments2466,976 145,199Total Non-current Liabilities1,425,88 3 1,284,94 3 Derivative financial instruments2416,930 30,784 s 2582,306 176,589 e 2615,486 17,346Other current liabilities2,117 2,677 e 489Taxes payable27684 1,606 s 2840,101 34,636 e 644 s Bank loans17130,001 97,943 e 185,806 - e 2032,959 88,152 e 211,182 591Convertible bonds2385,312 -Total Current Liabilities413,407 451,457TOTAL EQUITY AND L

2 IABILITIES 2,507,881 2,405,72 4
IABILITIES 2,507,881 2,405,72 4 See accompanying notes to consolidated financial statement s which are an integral part of the consolidated financial statements . - 2 - e Translatio n Notescapital stoc k paid-in capita l stockequity bond s investmentsadjustmen t reserve A ppropriatedUnappropriate d Total equit y US$'00 0 US$'00 0 US$'00 0 US$'00 0 US$'00 0 US$'00 0 US$'00 0 US$'00 0 US$'00 0 US$'00 0 US$'00 0 Balance as of January 1, 200 8 61,019 (86,628) (4,158) - 2,140 11- - - - - (2,140) - - - - (2,140)Profit for the period- - - - - - - - - 108,92 8 108,92 8 Total recognized income and expense s - - (93) - 1,810 (45) - - 108,92 8 110,60 0 Transfer to retained earning s - - - - - - (4,511) - 4,511 - s 13,142,843 3,981 - - - y -

3 - -
- - - 3,007 378 - - - 3,385 s 11- - - - - 1,865 - - - - 1,865Loss for the period- - - - - - - - - (5,983) (5,983) s - - - - 4,872 378 - - (5,983) (733) s - - - - - 4 - 20092008US$'000US$'000Cash receipts from customers 299,663 318,602 Cash paid to suppliers and employees(180,164) Interest paid(49,976) (60,255) Income tax paid (436) (731)Receipts from insurance claim 438 334Net Cash Provided by Operating Activities69,525 3,596Net proceeds from sale of vessels, property and equipment 50,052 19Placement of temporary investments - net(46,836) (65,831) A cquisitions of vessels, property and equipment (43,664) (138,985) Interest received and settlement of derivative transactions - net(12,007) 6,943Increase in security deposits(15) -Net Cash Used in Investing Act

4 ivities (52,470) (197,854) Proceeds
ivities (52,470) (197,854) Proceeds from bank loans201,537 237,338 Proceeds of bonds payable48,900 -Payments of bank loans (190,750) Payment of obligations under finance lease(5,875) (6,400)Proceeds from exercise of warrants- 6,824Net Cash Provided by Financing Activities53,812 130,476 NET INCREASE (DECREASE) IN CASH 70,867 (63,782) CASH AT BEGINNING OF PERIOD65,250 239,515 CASH AT END OF PERIOD 136 , 117 175 , 733 - 5 - P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) 1. GENERAL a. Establishment and General Information P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) On September 22, 2006, the Company obtained the eligibility to list all of the Company’s shares on the SGX-mainboard based on letter No. RMR/IR/YCH/260407 from the SGX-ST. In connection with the Company’s listing of shares, the Company also amended certain provisions of its Articles of Association as approved by the shareholders in their Extraordinary Shareholders Meeting held

5 on September 11, 2006. On May 4, 2007,
on September 11, 2006. On May 4, 2007, and May 17, 2007, BLT Finance B.V., a subsidiary, issued US$ 400 million 7.5% Guaranteed Senior Notes due 2014 and US$ 125 million Zero Coupon Guaranteed Convertible Bonds due 2012, respectively, which were both registered on the SGX-ST. On June 25, 2007, the Company obtained the notice of effectivity from the Chairman of Bapepam-LK in his letter No. S-3117/BL/2007 for its public offering of Sukuk Ijarah Bonds year 2007 amounting to Rp 200 billion and Berlian Laju Tanker III Bonds year 2007 amounting to On May 15, 2009, the Company obtained the notice of effectivity from the Chairman of Bapepam-LK in his letter No. S-3908/BL/2009 for its public offering of Berlian Laju Tanker IV Bonds year 2009 with fixed interest rate and Sukuk Ijarah II bonds totaling Rp 500,000 million. As of June 30, 2009, 4,589,281,176 issued shares have been listed on the stock exchanges in Indonesia and Singapore. 2. ADOPTION OF NEW AND REVISED STANDARDS As of the date of the authorization of these consolidated financial statements, the following IFRSs, IFRICs and amendments to IFRS that are relevant to the Company and its subsidiaries were issued but not yet effective: Description Effective for annual periods beginning or Improvements to IFRSs January 1, 2010 Amendments to IFRS 1, First-time Adoption Consolidated and Separate Financi

6 al Statements – Oil and gas assets and d
al Statements – Oil and gas assets and determining whether an arrangement contains a leaseJanuary 1, 2010 Amendments to IFRS 2, Share-based Payment – Group cash-settled share-based payment transactions January 1, 2010 Amendments to IAS 39, Financial Instruments: Recognition and Measurement – Eligible hedged items (Amendment) Amendments to IFRIC 9, Reassessment of Embedded Derivatives and Financial Instruments: Recognition and MeasurementJune 30, 2009 IFRS 3 (Revised), Business Combinations IAS 27 (Revised), Consolidated and Separate Financial Statements IFRIC 16, Hedges of a Net Investment in a Foreign Operation October 1, 2008 P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) Goodwill arising on acquisition is recognised as an asset and initially measured at cost, being the excess of the cost of the business combination over the Company and its subsidiaries’ interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised. If, after reassessment, the Company and its subsidiaries’ interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities exceeds the cost of the business combina

7 tion, the excess is recognised immediate
tion, the excess is recognised immediately in profit or loss. d. Investments in Associates An associate is an entity over which the Company has significant influence, and is neither a subsidiary nor an interest in a joint venture. Significant influence, is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. The results of operations and assets and liabilities of associates are incorporated in these financial statements using the equity method of accounting except when classified as held for sale, in which case it is accounted for in accordance with IFRS 5 “Noncurrent Assets Held for Sale and Discontinued Operations”. Under the equity method, investments in associates are carried in the consolidated balance sheet at cost as adjusted for post-acquisition changes in the Company’s share in the net assets of the associate, less any impairment in the value of individual investments. Losses of the associates in excess of the Company’s interest in those associates are not recognized, unless the Company has incurred legal or constructive obligations or made payments on behalf of the associate. Any excess of the cost of acquisition over the Company’s share in the fair values of the identifiable net assets of the associates at the date of acquisition is recognized as go

8 odwill. Goodwill is included within the
odwill. Goodwill is included within the carrying amount of investment and is assessed for impairment as part of the investment. Any excess of the Company’s share in the fair values of the identifiable assets, liabilities and contingent liabilities over the cost of acquisition, after reassessment, is recognized in profit and loss in the year of acquisition. Where the Company or its subsidiaries transact with an associate of the Company, profits and losses are eliminated to the extent of the Company’s interest in the relevant associate. Losses may provide evidence of an impairment of the asset transferred in which case appropriate provision is made for impairment. e. Segment Information Segment information is prepared using the accounting policies adopted for preparing and presenting the consolidated financial statements. The primary format in reporting segment information is based on business segment, while secondary segment information is based on geographical segment. A business segment is a distinguishable component of an enterprise that is engaged in providing an individual product or service or a group related products or services and that is subject to risks and returns that are different from those of other business segments. A geographical segment is a distinguishable component of an enterprise that is engaged in providing products or services wi

9 thin a particular economic environment a
thin a particular economic environment and that is subject to risks and returns that are different from those of components operating in other economic environments. Assets and liabilities that relate jointly to two or more segments are allocated to their respective segments, if and only if, their related revenues and expense are also allocated to those segments. P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) Any revaluation increase arising on the revaluation of such vessels is credited to vessels revaluation reserve in the equity section, except to the extent that it reverses a revaluation decrease, for the same asset which was previously recognized in profit or loss, in which case the increase is credited to profit and loss to the extent of the decrease previously charged. A decrease in carrying amount arising on the revaluation of such vessels is charged to profit or loss to the extent that it exceeds the balance, if any, held in the vessels revaluation reserve relating to a previous revaluation of such vessels. Depreciation on revalued vessels is charged to profit or loss. On subsequent sale or retirement of a revalued vessel, the attributable revaluation surplus rema

10 ining in the vessels revaluation reserve
ining in the vessels revaluation reserve is transferred directly to retained earnings. A transfer is made from revaluation reserve to retained earnings equivalent to the difference between depreciation based on revalued carrying amount of the vessels and depreciation based on the vessels’ original cost. Vessels in the course of construction are carried at cost less any impairment loss. Costs, including professional fees, incurred while under construction are capitalized in accordance with the Company’s accounting policy. Depreciation of these vessels commences when the vessels are ready for their intended use. The vessels’ residual values and estimated useful lives are reviewed at each balance sheet date, with the effect of any changes in estimate accounted for on a prospective basis. The gain or loss arising on sale or retirement of vessels is determined as the difference between the sales proceeds and carrying amount of the vessel and is recognized in profit or Dry docking cost Included in the balance of vessels, property and equipment is dry docking cost which is capitalized when incurred and is amortized on a straight line basis over the period to the next dry docking. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and any impairment in value. Depreciation is calculated on a straight-line basis over

11 the estimated useful life of the asset a
the estimated useful life of the asset as follows: Years Buildings and premises Transportation equipment 5 - 25 Office furniture and fixtures 5 Office and dormitory equipment 5 Landrights is accounted for as operating leases and amortized over the lease term. Assets held under finance leases are depreciated over their expected useful lives on the same basis as used assets or, where shorter, the term of the relevant lease. The cost of maintenance and repairs is charged to operations as incurred. Other subsequent expenditures which meet the asset recognition criteria are capitalized. When assets are retired or otherwise disposed of, the cost and the related accumulated depreciation and any impairment loss are removed from the accounts and any resulting gain or loss is reflected in the current operations. P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) Past service cost is recognized immediately to the extent that the benefits are already vested, or otherwise amortized on a straight-line basis over the average years until the benefits become vested. The post-employment benefits obligation recognized in the consolidated balance sheets represent the present value of the defin

12 ed benefit liability, as adjusted for un
ed benefit liability, as adjusted for unrecognized actuarial gains and losses and unrecognized past service cost. l. Taxation Income tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based on taxable profit for the year. The Company and the subsidiaries’ liability for current tax is calculated using tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, except for those differences between the carrying amounts of assets and liabilities subject to final tax, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences, and deferred tax assets are recognized for deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable prof

13 it nor the accounting profit. Deferred t
it nor the accounting profit. Deferred tax liabilities are recognized for taxable temporary differences arising on investment in subsidiaries and associates except when the Company is able to control the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the The carrying amount of deferred tax asset is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the liability is settled or the asset realized. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company and subsidiaries expect, at the reporting date, to recover or settle the carrying amount of their assets and liabilities. Deferred tax is charged or credited in the consolidated statement of income, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also charged or credited directly to equity. Deferred tax assets and liabilities are offset in the consolidated balance sheet when there is a legally enforceable right to set off current tax assets against current tax l

14 iabilities and when they relate to incom
iabilities and when they relate to income taxes levied by the same taxation authority and management intends to settle the current tax assets and current tax liabilities on a net basis. Tax expense on revenues from vessels subject to final tax is recognized proportionately based on the revenue recognized in the current year. The difference between the final tax paid and current tax expense in the consolidated statement of income is recognized as prepaid tax or tax payable. Prepaid final tax is presented separately from final tax payable. Deferred tax is not recognized for the differences between the financial statements carrying amount of assets and liabilities related to revenues subject to final tax and their respective tax P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) Financial liabilities are classified as either financial liabilities at fair value through profit and loss (FVTPL) or other financial liabilities. Financial liabilities at fair vaFinancial liabilities at FVTPL has two subcategories, including financial liabilities held for trading and those designated as at FVTPL on initial recognition. A financial liability is classified as held for trading if: It has be

15 en incurred principally for the purpose
en incurred principally for the purpose of repurchasing in the near future: or It is a part of an identified portfolio of financial instruments that the Company and its subsidiaries manages together and has a recent actual pattern of short-term profit-taking: It is a derivative that is not designated and effective as a hedging instrument. A financial liability, other than a financial liability held for trading, may be designated as at FVTPL upon initial recognition if: Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise: or The financial liability forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the Company and its subsidiaries’ documented risk management or investment strategy, and information about the grouping is provided internally on that basis: or It forms part of a contract containing one or more embedded derivatives, and IAS 39 Financial Instruments: Recognition and Measurement, permits the entire combined be designated as at FVTPL. At each balance sheet date subsequent to initial recognition, financial liabilities at FVTPL are measured at fair value, with changes in fair value recognized directly in profit or loss in the period in which they arise. Con

16 vertible Bonds The convertible bonds due
vertible Bonds The convertible bonds due in 2012 is considered a hybrid instrument containing a debt host contract and embedded derivatives. At the time of issue, the convertible bonds were designated as fair value through profit and loss with any resultant gain or loss recognized in profit or loss. Fair values are determined with reference to quoted market prices. Notes Payable At the time of issue, the Notes Payable were designated at fair value through profit and loss with any resultant gain or loss recognized in profit or loss. Fair values are determined with reference to quoted market prices. Derivative Financial Instruments Derivative financial instruments are initially measured at fair value on the contract date, and are remeasured to fair value at subsequent reporting dates. Changes in the fair value of derivative financial instruments are recognized in profit or loss as they are not designated and do not qualify for hedge accounting. Derivatives embedded in other financial instruments or other non-financial host contracts are treated as separate derivatives when their risks and characteristics are not closely related to those of the host contract and the host contract is not carried at fair value with changes in fair value recognized in profit or loss. P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JU

17 NE 30, 2009 AND 2008 AND FOR THE SIX-MON
NE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly to profit or loss. Contingent rentals are recognised as expenses in the periods in which they are incurred. Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. T of incentives is recognised as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Sale and Leaseback Assets sold under a sale and leaseback transaction are accounted for as follows: If the sale and leaseback transaction results in a finance lease, any excess of sales

18 proceeds over the carrying amount of th
proceeds over the carrying amount of the asset is deferred and amortized over the lease term. If the sale and leaseback transaction results in an operating lease, and it is clear that the transaction is established at fair value, any profit or loss is recognized immediately. If the sale price is below fair value, any profit or loss is recognized immediately except that, if the loss is compensated for by future lease payments at below market price, it shall be deferred and amortized in proportion to the lease payments over the period for which the asset is expected to be used. If the sale price is above fair value, the excess over fair value is deferred and amortized over the period for which the asset is expected to be used. For operating leases, if the fair value at the time of a sale and leaseback transaction is less than the carrying amount of the asset, a loss equal to the amount of the difference between the carrying amount and fair value is recognized immediately. For finance leases, no such adjustment is necessary unless there has been an impairment in value, in which case the carrying amount is reduced to recoverable amount. p. Finance cost Interest expense and similar charges are expensed in the year when they are incurred. q. Earnings per Share Basic earnings per share is computed by dividing profit for the year by the weighted average number

19 of shares outstanding during the year. D
of shares outstanding during the year. Diluted earnings per share is computed by dividing profit for the year by the weighted average number of shares outstanding as adjusted for the effect of all dilutive potential ordinary shares. r. Impairment of Tangible Assets At each balance sheet date, the Company and its subsidiaries review the carrying amounts of their tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of an individual asset, the Company and its subsidiaries estimate the recoverable amount of the cash-generating unit to which the asset belongs. P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) Management depreciates vessels on a straight-line basis over a vessel’s estimated useful life of 25 years, from the date the vessel was originally delivered from the shipyard, or a shorter period if regulations prevent management from operating the vessels to 25 years. In the shipping industry, the use of the 25-ye

20 ar vessel life has become the prevailing
ar vessel life has become the prevailing standard. However, the actual life of a vessel may be different, with a shorter life potentially resulting in an impairment loss. Management reviews vessels and equipment for impairment whenever there is an indication that the carrying amount of the vessel may not be recoverable. Management measures the recoverability of an asset by comparing its carrying amount against its recoverable amount. Recoverable amount is the higher of the fair value less cost to sell and value in use, which is the future cash flows that the vessel is expected to generate over its remaining useful life, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the vessel. If a vessel is considered to be impaired, impairment loss is recognized to an amount equal to the excess of the carrying value of the asset over its recoverable amount. Fair value of vessels in a volatile marketplace Vessels are stated at fair value based on the valuation reviewed by management and supported by an independent professional valuer. In determining the fair value, a method of valuation is used which involves certain estimates, including comparisons with recent sale transactions of similar vessels. However, the current financial turmoil has made the assessmen

21 t of vessel values uncertain. Informatio
t of vessel values uncertain. Information on comparable transactions and market demand has, where available, been very limited. This has increased uncertainty around reported vessel fair values compared to normal market conditions. Impairment of Goodwill Goodwill is not amortized, but reviewed for impairment annually, and whenever impairment indicators arise. The process of evaluating the potential impairment of goodwill is highly subjective and requires significant judgment at many points during the analysis. The fair values of to which goodwill is identified is estimated based on discounted expected future cash flows. The estimates and assumptions regarding expected cash flows and the discount rate require considerable judgment and are based upon existing contracts, historical experience, financial forecasts, and industry trends and conditions. The carrying value of goodwill at balance sheet dates amounted to US$ 75,739 thousand (Note Fair value of financial instruments The recent illiquidity in some financial markets has led to an increase in the use of key estimates in measuring fair values of financial instruments. In markets that are no longer active, management makes use of valuation techniques to measure fair value. Management selects the valuation techniques that maximize the use of observable parameters and minimize the use of unobserva

22 ble parameters to estimate the fair valu
ble parameters to estimate the fair values. Where applicable, management also uses multiple valuation techniques to corroborate the results of each model, and places more weight on approaches that use observable parameters. When estimating fair values in this way, management has taken into account current market conditions and includes appropriate risk adjustments that market participants would make e.g. for credit and liquidity risks. P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) SubsidiaryDomicileType of BusinessJune 30, 2009December 31, 20082.1.1.1.Ontari Maritime Pte. Ltd.SingaporeOwner and operator100%100% of vessel2.1.2.Averina Maritime S.A.PanamaShipping agent100%100%2.1.3.Gandari Navigation Pte. Ltd.SingaporeOwner and operator100%100%of vessel2.1.4.GBLT Shipmanagement Pte. Ltd.SingaporeShip management100%100%2.1.4.1.GBLT Shipmanagement Ltd.United KingdomShip management100%100%2.1.4.1.1.Harsanadi Shipping Ltd.United KingdomOperator of Vessel100%100%2.1.4.1.2.Hartati Shipping Ltd.United KingdomOperator of Vessel100%100%2.1.4.1.3.Frabandari Shipping Ltd.United KingdomOperator of Vessel100%100%2.1.4.1.4.Fatmarini Shipping Ltd.United KingdomOperator of Vessel100%100%

23 2.1.4.1.5.Nogogini Shipping Ltd.United K
2.1.4.1.5.Nogogini Shipping Ltd.United KingdomOperator of Vessel100%100%2.1.4.1.6.Nolowati Shipping Ltd.United KingdomOperator of Vessel100%100%2.1.4.1.7.Ratih Shipping Ltd.United KingdomOperator of Vessel100%100%2.1.5.Cendanawati Navigation Pte. Ltd.SingaporeOwner and operator100%100%of vessel2.1.6.Frabandari Maritime Pte. Ltd.SingaporeOwner and operator100%100%of vessel2.1.7.Brotojoyo Maritime Pte. Ltd.SingaporeOperator of Vessel100%100%2.1.8.Berlian Laju Tanker Pte. Ltd.SingaporeOperator of Vessel100%100%2.1.9.Anjasmoro Maritime Pte. Ltd.SingaporeOwner and operator100%100% of vessel2.1.10.Gas Lombok Maritime Pte. Ltd.SingaporeOwner and operator100%100% of vessel2.1.11.Gas Sumbawa Maritime Pte. Ltd.SingaporeOwner and operator100%100%of vessel2.2.BLT LNG Tangguh CorporationMarshall IslandsOwner and operator100%100%of vessel3.Asean Maritime Corporation Labuan, Malaysia Investment holding100%100%3.1.Gold Bridge Shipping British Virgin Investment holding100%100% CorporationIslands 3.1.1.Bauhinia Navigation S.A. PanamaOwner and operator100%100% of vessel3.1.2.Cempaka Navigation S.A. PanamaOwner and operator100%100% of vessel3.1.3.Gold Bridge Shipping Ltd.Hong KongShipping agency100%100%3.1.3.1BLT Shipping Shanghai Co. Ltd.ChinaShipping agency100%100%3.1.4.Great Tirta Shipping S.A. PanamaOwner and operator100%100% of vessel3.1.4.1.Dewayani Maritime Pte

24 . Ltd.SingaporeOwner and operator100%100
. Ltd.SingaporeOwner and operator100%100%of vessel3.1.5.Hopeway Marine Inc. PanamaOwner and operator100%100% of vessel3.1.6.Lestari InternationalPanamaOwner and operator100%100% Shipping S.A.of vessel3.1.6.1.Gandini Maritime Pte. Ltd.SingaporeOwner and operator100%100%of vessel3.1.7.Quimera Maritime S.A. PanamaOwner and operator100%100% of vessel3.1.8.South Eastern OverseasPanamaOwner and operator100%100% Navigation S.A.of vessel3.1.9.Zenith Overseas Maritime S.A.PanamaOwner and operator100%100% of vessel3.1.9.1.Gandari Maritime Pte. Ltd.SingaporeOwner and operator100%100%of vessel3.1.10.Zona Shipping S.A.PanamaOwner and operator100%100%of vessel3.1.10.1.Dewi Sri Maritime Pte. Ltd.SingaporeOwner and operator100%100%of vessel3.1.11.Dahlia Navigation S.A.PanamaOwner and operator100%100% of vessel3.1.12.Eglantine Navigation S.A.PanamaOwner and operator100%100%of vessel3.1.13.Wulansari Maritime Pte. Ltd.SingaporeOwner and operator100%100%of vessel3.1.14.Yanaseni Maritime Pte. Ltd.SingaporeOwner and operator100%100%3.1.15.Indradi Maritime Pte. Ltd.SingaporeOwner and operator100%100%of vesselPercentage of Ownershipand Voting Power Held P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Con

25 tinued) SubsidiaryDomicileType of Busin
tinued) SubsidiaryDomicileType of BusinessJune 30, 2009December 31, 20083.1.45.1.1Richesse Logistics (Fangcheng ChinaStorage and sale of100%100% Port) Co. Ltd. chemical products3.1.46Hyacinth Navigation S.A.PanamaOwner and operator100%100%of vessel3.1.47Iris Maritime International S.APanamaOwner and operator100%100%of vessel3.2.BLT Chembulk Corp. BVIBritish Virgin Investment holding100%100%Islands3.2.1Chembulk Tankers LLCMarshall IslandsInvestment holding100%100%3.2.1.1Chembulk Trading II LLCMarshall IslandsOwner and operator of 100%100%vessel3.2.1.2Chembulk Management LLCUnited States ofShip management100%100%America3.2.1.3Chembulk Management B.V.The NetherlandsShip management100%100%3.2.1.4Chembulk Management Pte. Ltd.SingaporeShip management100%100%3.2.1.5Chembulk Tankers Do Brazil LtdaBrazilShip management100%100%3.2.2Chembulk Barcelona Pte. Ltd.SingaporeOwner and operator100%100%of vessel3.2.3Chembulk Gibraltar Pte. Ltd.SingaporeOwner and operator100%100%of vessel3.2.4Chembulk Hong Kong Pte. Ltd.SingaporeOwner and operator100%100%of vessel3.2.5Chembulk Houston Pte. Ltd.SingaporeOwner and operator100%100%of vessel3.2.6Chembulk Kobe Pte. Ltd.SingaporeOwner and operator100%100%of vessel3.2.7Chembulk New York Pte. Ltd.SingaporeOwner and operator100%100%of vessel3.2.8Chembulk Savannah Pte. Ltd.SingaporeOwner and operator100%100%of vessel3.2.9Chembulk

26 Shanghai Pte. Ltd.SingaporeOwner and ope
Shanghai Pte. Ltd.SingaporeOwner and operator100%100%of vessel3.2.10Chembulk Ulsan Pte. Ltd.SingaporeOwner and operator100%100%of vessel3.2.11Chembulk Virgin Gorda Pte. Ltd.SingaporeOwner and operator100%100%of vessel3.2.12Chembulk Yokohama Pte. Ltd.SingaporeOwner and operator100%100%of vessel3.2.13Chembulk New Orleans Pte. Ltd.SingaporeOwner and operator100%100%of vessel4.PT Banyu Laju ShippingIndonesiaOwner and operator100%100%of vessel4.1.Banyu Laju CorporationLabuan, MalaysiaInvestment holding100%100%5.PT Brotojoyo MaritimeIndonesiaOwner and operator100%100%of vessel5.1.PT Gemilang Bina Lintas TirtaIndonesiaOperator of vessel100%100%5.1.1.PT Karya Bakti AdilIndonesiaCrew Agency100%100%6.PT Buana Listya TamaIndonesiaOperator of vessel100%100%6.1.PT Anjasmoro MaritimeIndonesiaOperator of vessel100%100%6.2.PT Pearl MaritimeIndonesiaOperator of vessel100%100%6.3.PT Ruby MaritimeIndonesiaOperator of vessel100%100%6.4.PT Sapphire MaritimeIndonesiaOperator of vessel100%100%6.5.PT Citrine MaritimeIndonesiaOwner and operator100%100%of vessel6.6.PT Diamond MaritimeIndonesiaOwner and operator100%100%of vessel6.7.PT Emerald MaritimeIndonesiaOwner and operator100%100%of vessel6.8.PT Jade MaritimeIndonesiaOwner and operator100%-of vesselPercentage of Ownershipand Voting Power Held P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATE

27 D AS OF JUNE 30, 2009 AND 2008 AND FOR T
D AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) The vessels are stated at their revalued amount being the fair value reviewed by management and supported by an independent professional valuation carried out on December 31, 2008. Had the vessels been carried at historical cost less accumulated depreciation, their carrying values would have been approximately US$ 1,793,716 thousand and US$ 1,913,642 thousand as of June 30, 2009 and December 31, 2008, respectively. The additions in vessels in 2009 consist of the subsidiaries’ vessels whose construction had been completed (M.T. Pramesti) and acquired under finance lease (M.T. Chembulk Jakarta). The reduction in vessels in 2009 included sale of vessels of the subsidiary (M.T. Dewi Madrim and M.T. Purbasari). In 2009 and 2008, the Company and its subsidiaries completed the sale of five vessels. In conjunction with the sale, the Company and its subsidiaries entered into lease agreements with the purchasers to lease back the four vessels for a period of 12 years. After an evaluation of the terms and substance of the leaseback, the Company’s Directors are satisfied that substantially all the risks and rewards incidental to ownership of the vessels have been transferred to and rest with the purchaser-lessor. The exc

28 ess of the selling price over the fair v
ess of the selling price over the fair value of the vessels sold and leased back is accounted for as deferred income and amortized over the lease term. As of June 30, 2009 and December 31, 2008, the non-current portion of the deferred income amounted to US$ 2,161 thousand and US$ 2,266 thousand, respectively, while the current portion, which is included under other current liabilities, amounted to US$ 208 thousand, for both periods. Also, in connection with the lease agreements, the Company and its subsidiaries paid non-interest bearing security deposits of US$ 22,195 thousand. The difference of US$ 7,164 thousand between the nominal value of the non-interest bearing deposit and its fair value is considered as deferred rent and amortized on a straight-line basis over the lease term. As of June 30, 2009 and December 31, 2008, the non-current portion of the deferred rent amounting to US$ 6,178 thousand and US$ 6,477 thousand, respectively, is included under Non-current Assets – Deferred charges and security deposits, while the current portion amounting to US$ 597 thousand, for both periods, is included under Current Assets – Prepaid expenses and taxes. All of the sales are made with third parties. Vessel depreciation expense charged to operations is US$ 66,100 thousand and US$ 57,848 thousand in 2009 and 2008, respectively. Vessels and equipment with ca

29 rrying amount of US$ 1,816 million and U
rrying amount of US$ 1,816 million and US$ 1,735 million as of June 30, 2009 and December 31, 2008, respectively, were used as collateral to guarantee obligations under finance lease, long-term bank loans, short-term bank loans and standby letter of credit facility. Vessels under construction as of consist of 14 vessels, which are estimated to be completed between 2009 to 2011. Building in progress represents construction of chemical storage tanks and related facilities. P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) Details of the associates are as follows: Name of Place ofPlace ofAssociateIncorporationOperationNature of BusinessJune 30,December 31,20092008PT Berlian LimatamaIndonesiaIndonesiaCargo shipping services5050Teekay BLT CorporationMarshall IslandsIndonesiaCargo shipping services3030Thai Petra Transport Co. Ltd.ThailandThailandPort services (agency)3030Percentage of Ownership and Voting Power Held In a Joint Unanimous Written Consent executed on June 23, 2008, the Board of Directors and Shareholders of Teekay BLT Corporation have determined that the existing stated capital of Teekay BLT Corporation is in excess of its capital requirements, and determined further

30 that the amount of the stated capital
that the amount of the stated capital be reduced proportionately among the shareholders by US$ 28 million. As a result, the Company and its subsidiaries received a total amount of US$ 8,400 thousand from Teekay BLT Corporation as a return of capital, the percentage of ownership of the Company and its subsidiaries in Teekay BLT Corporation did not change. Summarized financial information in respect of the Company and its subsidiaries’ associates is set out below: June 30,December 31,20092008US$'000US$'000Total assets464,520 400,144 Total liabilities452,363 415,644 Net assets (liabilities)12,157 (15,500) Company and subsidiaries' share of associates' net assets(liabilities)3,696 (4,607) Revenue2,939 651 Profit for the period27,415 56,218 Company and subsidiaries' share of associates' gain for the year3,422 18,524 9. INVENTORIES Inventories mainly consist of bunker fuel. 10. TRADE ACCOUNTS RECEIVABLE June 30,December 31,20092008US$'000US$'000Related parties600 3,235 Third parties106,129 93,439 Total 106,729 96,674 Before accepting any new customer, the Company and its subsidiaries assess the potential customer’s credit quality. P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSID

31 IARIES NOTES TO CONSOLIDATED
IARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) Under the Investment Management Contract Service Agreement dated June 12, 2008 and December 18, 2007, the Company appointed PT Danatama Makmur, to manage funds which will be partly or wholly invested in cash, time deposits, bonds, notes payable, shares of stock, foreign currency, convertible bonds, warrants, options, derivative contracts and other securities including collective investment scheme. As of June 30, 2009 and December 31, 2008, the fair value of the investment portfolio amounted to US$ 13,021 thousand and US$ 13,003 thousand, respectively. 12. CASH June 30,December 31,20092008 US$'000US$'000Cash on hand3,019 860 Cash in banks87,943 27,501 Time deposits45,155 36,889 Total136,117 65,250 Interest rates per annum on time depositsU.S. Dollar0.02% - 3%0.08% - 5%Rupiah6.16% - 7.50%6.75% - 9.25%Singapore Dollar0.825%0.825%Renminbi- 3.33% 13. SHARE CAPITAL The Company has authorized capital stock of 14,676,480,000 ordinary shares with par value of Rp 62.50 per share. Movements in share capital are as follows: June 30,December 31,20092008 US$'0

32 00US$'000Balance at beginning of the per
00US$'000Balance at beginning of the period62,191 59,348 Exercise of warrants- 2,843 Balance at end of the period62,191 62,191 Details of the Company’s number of shares outstanding (in full amounts) are as follows: June 30,December 31,20092008Balance at beginning of the period4,176,930,176 3,746,659,436 Exercise of warrants- 430,270,740 Balance at end of the period4,176,930,176 4,176,930,176 In January 2008, the remaining 720,024 unexercised warrants have expired. P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) The revaluation reserve arises on the revaluation of vessels. Where revalued vessels are sold, the portion of the revaluation reserve that relates to that vessel, and is effectively realized, is transferred directly to retained earnings.17. LONG-TERM BANK LOANS June 30,December 31,20092008US$'000US$'000At amortized cost:DnB NOR Bank, ASA, Singapore / Fortis Bank S.A./N.V.ING Bank N.V. / NIBC Bank Ltd.612,569 652,097 DVB Group Merchnat Bank (Asia) Ltd. / Nordea BankFinland Plc, Singapore Branch82,340 82,251 B

33 ank Mandiri48,315 -
ank Mandiri48,315 - DVB Group Merchant Bank (Asia) Ltd., Singapore45,626 22,259 Bank Central Asia, Jakarta38,321 26,666 Bank Ekspor Indonesia37,105 - DnB NOR Bank, ASA, Singapore / NIBC Bank Ltd.30,586 - ING Bank N.V., Singapore12,869 13,853 Bank UOB Indonesia8,379 9,093 Dialease Maritime S.A., Japan7,065 7,706 The Royal Bank of Scotland Plc946 1,011 Total924,121 814,936 Current maturities130,001 97,943 Long-term portion - Net794,120 716,993 The range of average interest rates per annum are as follows: June 30,December 31,20092008U.S. Dollar0.50% - 4%0.70% - 2.50%above LIBOR/above LIBOR/SIBORSIBORRupiah11.20% - 13.75%10.25% - 13% The details of the loans are as follows: A. In March 2007, certain subsidiaries obtained loan with maximum credit of US$ 65 million. This loan is payable in thirty-two (32) quarterly installments until 2015 and is collateralized by corporate guarantees from the Company and Gold Bridge Shipping Corporation, a subsidiary, and the subsidiaries’ vessels, M.T. Gas Sulawesi, M.T. Gas Papua and M.T. Chembulk New Orleans. Interest rate is at LIBOR plus certain percentage, which

34 is paid between 1 - 3 month In December
is paid between 1 - 3 month In December 2007, the subsidiaries obtained a secured term loan and reducing revolving credit facilities from DnB NOR Bank ASA, Fortis Bank S.A/N.V., ING Bank N.V., and NIBC Bank Ltd. as original lenders. DnB NOR Bank ASA acts as agent and security trustee. Under the agreement, the subsidiaries shall apply all amounts borrowed by them towards refinancing in relation to the acquisition of the vessels and for general working capital purposes. P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) In November 2006, the Company obtained investment credit facility with a maximum credit of US$ 34 million. This loan is payable in 84 monthly installments until 2013 and collateralized by a subsidiary’s vessel. Interest rate is at SIBOR plus certain percentage, which is paid monthly. In April 2008, the Company obtained a working capital credit facility with maximum credit of Rp 20,000 million. In the same month, the Company obtained loan vessel refinancing and working capital facility with maximum credit of Rp 150,000 million. Interest rate per annum is at 10.25% - 12% in 2008, which is paid on a monthly basis. This loan is due in October 2008. Bank Central Asia

35 agreed to rollover this loan to extend
agreed to rollover this loan to extend the maturity date to January 2009. In December 2008, Bank Central Asia approved another extension of the loan maturity date to April 2009. In March 2009, this facility was changed to installment loan facility with monthly installment until March 2012. Interest rate per annum is based on certain percentage and paid monthly. F. Loan obtained from PT Bank Ekspor Indonesia is a working capital facility with maximum credit of Rp 400,000 million and is due on March 28, 2009. The loan is secured by all of the Company’s, tangible and intangible assets, which are already acquired or will be acquired in the future. Annual interest rate in 2008 is at 9.50% - 11.21%, which is paid monthly. In March 2009, this loan became export investment facility and will due in March 2014. This loan is secured by subsidiaries vessel, MT Pergiwo, MT Barawati, and MT Gas Natuna. Annual interest rate became 12,75%, which is paid monthly. G. On April 2009 certain subsidiaries obtained loan from DnB NOR Bank ASA, Singapura / NIBC Bank with maximum credit of US$ 31.5 million. This loan is payable in 16 quarterly installments until 2013 and collateralized by the subsidiaries’ vessels, M.T Gandini, M.T Gas Bali and M.T Gerbera. Interest rate is set at a certain percentage above LIBOR and is paid between 1 - 3 H. In November 2005, subsidiaries obt

36 ained loan facilities from ING Bank N.V.
ained loan facilities from ING Bank N.V., Singapore with a maximum credit of US$ 19,900 thousand. These loan facilities are payable in semi annual installments until November 2015 and collateralized by the subsidiaries’ vessels. Interest rate is at LIBOR plus certain percentage, which is paid on a monthly basis I. In October 2006, the Company obtained an investment credit facility from Bank UOB Indonesia with a maximum credit of US$ 12 million payable in 20 quarterly installments until 2011. The loan is secured by a subsidiary’s vessel and an assignment of earnings from Pertamina in respect of the vessel used as collateral. Interest rate is at SIBOR plus certain percentage, which is paid every three months. In February 2009, such facility was modified. In February 2009, Bank UOB Indonesia approved to review the Investment Credit Facility and extend the Working Capital Credit Facility of the Company. As a result, the new line of credit is composed of: 1) Term Loan Facility amounting to USD 8,760 thousand, payable in 10 quarterly installments of USD 360 thousand each and one final installment of USD 5,160 thousand upon its maturity in October 2011. 2) Working Capital Credit Facility as follows: (a) Short Term Advance I amounting to USD 1,500 thousand within the Term Loan Facility above, and (b) Short Term Advance II amounting to Rp 150 billion. These fac

37 ilities are due in February 2010. These
ilities are due in February 2010. These loan facilities are secured by a registered mortgage on certain subsidiary's vessel and the assignment of accounts receivable from Pertamina in respect of the vessel used as P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) Berlian Laju Tanker IV Bond On May 29, 2009, the Company issued Rupiah Bonds in amount of Rp 400,000 million with fixed interest rate, which consists of: 1. Series A Bonds with a nominal value of Rp 60,000 million, have a term of 1 year and bear fixed interest rate at 14.25%. 2. Series B Bonds with a nominal value of Rp 150,000 million, have a term of 3 years and bear fixed interest rate at 15.50% 3. Series C Bonds with a nominal value of Rp 190,000 million, have a term of 5 years and bear fixed interest rate at 16.25%. These bonds are unsecured and carry no guarantee from any party. Bondholders’ right is pari-passu without preferential rights to other creditors of the Company. All bonds were sold at nominal value and are listed on the Indonesia Stock Exchange with PT Bank CIMB Niaga Tbk (Persero) as trustee. Sukuk Ijarah On July 5, 2007, the Company issued Sukuk Ijarah Bonds amounting to Rp 200 billion. The Sukuk Ija

38 rah Bonds are unsecured and have a term
rah Bonds are unsecured and have a term of 5 years, due on July 5, 2012. The Sukuk Ijarah Bonds were offered under the condition that the Company shall pay to Sukuk Ijarah bondholders a sum of Ijarah Benefit Installment amounting to Rp 20,600 million per annum. The Sukuk Ijarah bondholders’ right is pari-passu without preferential rights with other creditors of the Company. At anytime after the first anniversary of the Sukuk Ijarah Bonds, the Company may redeem the Bonds at prevailing market price. All of the Sukuk Ijarah Bonds were sold at nominal value and are listed on the Indonesia Stock Exchange (formerly Surabaya Stock Exchange) with PT Bank Mandiri (Persero) Tbk as trustee. On December 18, 2007, the Bondholders approved the replacement of PT Bank Mandiri (Persero) Tbk Trustee and the appointment of PT Bank Niaga Tbk as the new Trustee. On March 17, 2008, PT Bank Niaga Tbk as the Trustee issued a notice for the Company’s failure to comply with one of the covenants under the Trustee Agreement, which is to maintain a ratio between Net Debt to Equity of not more than 2.5:1. On July 4, 2008, the Bondholders approved to amend the debt covenant on the Net Debt to Equity Ratio on the Trustee Agreement from 2.5:1 to 4.5:1 for the year ending December 31, 2008 and 3.5:1 after December 31, 2008 based on the Company’s statutory accounts prepared under gener

39 ally accepted accounting principles in I
ally accepted accounting principles in Indonesia. On May 29, 2009 the Company issued Sukuk Ijarah in amount of Rp 100,000 million, which consist of: Series A with total Remaining Ijarah Compensation of Rp 45,000 million, the sum of Ijarah Benefit Installment amounting to Rp 155 million per Rp 1,000 million per annum and have a Series B with total Remaining Ijarah Compensation of Rp 55,000 million, the sum of Ijarah Benefit Installment amounting to Rp 162.5 million per Rp 1,000 million per annum and have a These Sukuk Ijarah are unsecured and carry no guarantee from any party. The Sukuk Ijarah holders’ right is pari-passu to other creditors of the Company. At any time after the first anniversary of the Sukuk, the Company may redeem the Sukuk at the prevailing market price. All Sukuk Ijarah were sold at nominal value and are listed on the Indonesia Stock Exchange . P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) 20. OBLIGATIONS UNDER FINANCE LEASE Present valuePresent valueMinimum leaseof minimum Minimum leaseof minimum paymentslease paymentspaymentslease paymentsUS$'000US$'000US$'000US$'000Less than 1 year34,506 32,959 95,699 88,152

40 1 - 2 years138,217 1
1 - 2 years138,217 120,108 133,882 118,502 More than 2 years136,765 107,148 43,686 36,874 Total 309,488 260,215 273,267 243,528 Less future finance charges49,273 - 29,739 - Present value of minimum lease payments260,215 260,215 243,528 243,528 December 31, 2008June 30, 2009 The finance lease relates to lease of vessels with lease terms of 3 years to 10 years and where its subsidiaries have options to purchase the vessel for an amount below the expected fair values at the conclusion of the lease agreements. The subsidiaries’ obligations under finance lease are secured by the lessors’ title to the leased vessels and bear effective interest rates of 4% - 10%. The fair values of the lease obligations approximate their carrying amount. 21. OTHER LONG-TERM PAYABLE This account represents a loan of US$ 13 million owed to Teekay Corporation (formerly Teekay Shipping Corporation). The loan is payable in 22 semi-annual installments, unsecured, and bears annual interest of 8%, which is payable on a quarterly basis. The first semi-annual installment is due on August 2009. As of June 30, 2009 and December 31, 2008, the current por

41 tion of US$ 1,182 thousand and US$ 591 t
tion of US$ 1,182 thousand and US$ 591 thousand, respectively, is presented under current maturities of long-term liabilities. 22. POST-EMPLOYMENT BENEFITS The Company provides post-employment benefits to its qualifying employees in accordance with Indonesian Labor Law No. 13/2003. Amounts recognized in profit or loss in respect of these post-employment benefits are as follows: June 30,June 30,20092008US$'000US$'000Current service cost 118 Interest costs 128 Net actuarial losses 285 Amortization of past service cost (non-vested) 8 Past service cost 51 Total 590 P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) 23. CONVERTIBLE BONDS On May 17, 2007, BLT Finance B.V. (BLTF BV), a subsidiary, issued Zero Coupon Guaranteed Convertible Bonds in denomination of US$ 100 thousand each and integral multiples of US$ 1,000, with aggregate principal amount of US$ 125 million. The bonds were issued at 100% of face value, and were unconditionally and irrevocably guaranteed by the Company. The bondholders have the right to convert the bonds into ordina

42 ry shares, with par value of Rp 62.50 e
ry shares, with par value of Rp 62.50 each, of the Company from June 27, 2007 to April 17, 2012. The number of shares to be delivered on conversion will be determined, in respect of SGX-ST Listed Shares, by dividing the principal amount of the bond to be converted (translated at a fixed rate of SGD 1.5143 per US$ 1 or Rp 8,894 per US$ 1) by the conversion price in effect at the time of conversion date. The initial conversion price is SGD 0.4965 per share. In the event the shares to be delivered are Indonesian Listed Shares, the number of shares to be delivered will be determined using the same method as for SGX-ST Listed Shares, except that, in such an event, for purposes of calculating the ratio the principal amount of the bond to be converted shall remain in US Dollar and all the conversion price shall be translated from Rupiah to US Dollar. Notwithstanding the Conversion Right of the bondholders, BLTF BV has the option to pay to the relevant bondholders an amount of cash in US Dollar equivalent to the weighted average market price of the shares converted, to satisfy the conversion right. The bonds may also be redeemed at the option of BLTF BV at their Early Redemption Amount (ERA), together with accrued and unpaid interest, in whole but not in part: i. On or at anytime after May 17, 2009 but not less than 20 days prior to maturity date, if the clos

43 ing price of shares (translated into US
ing price of shares (translated into US Dollar), for each of the 25 consecutive trading dates immediately prior to the date upon which notice of redemption is published at least 125% of ERA divided by the conversion ratio. ii. If the aggregate principal amount of the bonds is ten percent or less of the aggregate principal amount originally issued. iii. At anytime in the event of certain changes relating to taxation in The Netherlands or the Republic of Indonesia. The bondholders have the right to require BLTF BV to redeem all or some of the bonds at 116.82% of the principal amount on May 17, 2010. The bondholders also have the right at their option to require BLTF BV to redeem the bonds at their ERA on occurrence of change in control or delisting of Company’s shares. ERA of the bonds, for each US$ 100 thousand principal amount, pertains to settlement before the maturity date at price ranging from US$ 102,625.00 to US$ 129,578.13, representing a gross yield to the investor of 5.25% on a semi-annual basis. Unless previously redeemed, purchased and cancelled or converted, BLTF BV will redeem each bond at 129.58% of the principal amount on May 17, 2012. These bonds are designated as at fair value through profit and loss at issuance date. The fair value at balance sheet date is determined based on quoted market price and may not be reflective of the amount t

44 hat BLTF BV will have to pay to the bond
hat BLTF BV will have to pay to the bondholders to satisfy their conversion rights or upon redemption of the Bonds. The changes in the carrying amount of the convertible bonds are as follows: June 30,December 31 , 20092008US$'000US$'000Beginning of the period36,250 128,541 Changes in fair values (Note 35)49,062 (92,291) Ending balance 85,312 36,250 P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) 25. SHORT-TERM BANK LOANS June 30,December 31,20092008 '000US '000At amortized cost:DVB Group Merchant Bank (Asia) Ltd.22,812- Mount Gede LLC20,000- Bank Sumitomo Mitsui Indonesia, Jakarta17,000 17,000 Bank UOB Indonesia, Jakarta14,670 13,699 Bank Mizuho Indonesia, Jakarta7,824 11,872 DnB NOR Bank, ASA, Singapore/NIBC Bank Ltd./Fortis Bank S.A/ING Bank N.V.- 50,000 Bank Ekspor Indonesia- 36,530 Bank Mandiri- 31,963 Bank Central Asia, Jakarta- 15,525 Total82,306 176,589 Interest rates per an

45 num during the yearU.S. Dollar1.75% - 3.
num during the yearU.S. Dollar1.75% - 3.50%1% - 1.75%above LIBOR/above LIBOR/SIBORSIBORRupiah9.50% - 15% 8.90% - 14% A. On January 20, 2009, a subsidiary obtained a secured term loan facility from DVB Group Merchant Bank (Asia) Ltd. with a maximum credit of USD 25 million. The loan is secured by a registered mortage over the subsidiary’s vessels (M.T. Trirasa and M.T. Tridonawati) and guarantee by the Company. The facility shall be reduced quarterly by USD 2,187 thousand and shall be repaid in its entirety 12 months from the first utilization date. Interest rate is at LIBOR plus certain percentage, which is paid quarterly. B. On December 17, 2008, a subsidiary obtained a secured Junior Term Loan Facility from Mount Gede LLC with a maximum credit of USD 25 million. The loan is secured by a registered mortgage over the subsidiary’s vessels and a guarantee by the Company. The facility shall be reduced by an amount of USD 5 million on the first repayment date and shall be repaid in its entirety on or before December 31, 2009. Interest rate fixed for certain percentage, which is paid on a monthly basis. In June 2009, USD 20 million has been utilized from the loan facility. C. Loan obtained from PT Bank Sumitomo Mitsui Indonesia is a revolving credit facility with maximum credit of Rp 150 billion or equivalent to US$ 17 million and is due on June 2009 and ext

46 ended until June 2010. Annual interest r
ended until June 2010. Annual interest rate is at LIBOR plus certain percentage, which is paid on a monthly basis. D. Loan obtained from Bank UOB Indonesia is a working capital credit facility with maximum credit of Rp 150 billion due on December 12, 2008. This loan is secured by a subsidiary’s vessel and trade accounts receivable from Pertamina in respect with the vessel used as security and bears interest rate per annum at SBI plus certain percentage, which is paid monthly. On February 2009, the term of the loan was extended to February 2010. E. Loan obtained from Bank Mizuho Indonesia is a time revolving loan with a total combined maximum credit of Rp 130 billion or its US Dollar equivalent due on April 2009 and being extended until May 2009. Interest rate per annum is at the bank’s cost of funds plus certain percentage, which is paid between 7 - 30 days. In April 2009, this loan was extended until April 2010. On June 2009, the Company paid this loan amounting RP 50,000 million. P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) 28. ACCRUED EXPENSES June 30,December 31,20092008US$'000US$'000Operating and docking 28,777 28,994 Interest10,314 4,48

47 6 Others1,010 1,
6 Others1,010 1,156 40,101 34,636 29. OPERATING REVENUES 2009200820092008US$'000US$'000US$'000US$'000Owned vessels 250,822 288,959 120,384 150,385 Chartered vessels 54,043 59,792 25,863 29,622 Agency fees564 404 281 70 Storage fees240 255 164 158 Total 305,66 9 349,410 146,692 180,23 Six months ended June 30,Three months ended June 30, Revenues from Pertamina included in the operating revenues amounted to US$ 26,721 thousand and US$ 27,072 thousand for the six months ended June 30, 2009 and 2008, respectively, and US$ 11,358 thousand and US$ 13,367 thousand for the three months ended June 30, 2009 and 2008, respectively. 30. VOYAGE EXPENSES 2009200820092008US$'000US$'000US$'000US$'000Fuel 44,215 77,820 23,551 43,557 Port charges31,175 31,833 15,116 16,248 Total75,390 109,653 38,667 59,805 Six months ended June 30,Three months ended June 30, P.T. BERLIAN LAJU TANKER Tbk

48 AND ITS SUBSIDIARIES NOTES
AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) 34. INVESTMENT INCOME 2009200820092008US$'000US$'000US$'000US$'000Interest income from time deposits,current accounts and others2,510 2,341 2,053 1,031 Realized gain on available-for-sale investments556 3,562 280 875 Total 3,06 6 5,903 2,333 1,90 Six months ended June 30,Three months ended June 30, 35. OTHER GAINS AND LOSSES 2009200820092008US$'000US$'000US$'000US$'000Change in fair value of convertible bonds and notes payable designated as at fair value through profit and loss(106,959) 94,383 (131,156) (4,685) Net gain on disposal of property, vessels and equipment (Note 6)752 19 - 3 Insurance claim438 279 270 343 Foreign exchange gain (loss) - net1,362 (2,603) (28,143) 661 Others - net1,315 (2,870)

49 402 (2,531)
402 (2,531) Net gains (losses)(103,092) 89,208 (158,627) (6,209) Six months ended June 30,Three months ended June 30, 36. EARNINGS PER SHARE Profit for the period 2009200820092008US$'000US$'000US$'000US$'000Profit (loss) for the period for the computationof basic earnings (loss) per share(5,983) 108,928 (99,117)(8,686)Unrealized fair value change of convertible bonds designated as FVTPL- (16,716) - 3,138Profit (loss) for the period for the computationof diluted earnings (loss) per share(5,983) 92,212 (99,117) (5,548)Six months ended June 30,Three months ended June 30, P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) Transactions with Related Parties In the normal course of business, the Company and its subsidiaries entered into certain transactions with related parties. These transactions included the following: a. Details of expenses from related parties are as follows: 2009200820092008US$'000US$'000US$'000US$'000Pan Union Agencies Pte. Ltd.283 474

50 283 189
283 189 Thai Petra Transport Co. Ltd.56 242 56 135 PT Garuda Mahakam Pratama5 11 5 11 PT Arpeni Pratama Ocean Line Tbk1 26 (28) (24) Total345 753 316 311 Six months ended June 30,Three months ended June 30, b. The remuneration of the Company’s key management (commissioners and directors) during the year are as follows: 2009200820092008US$'000US$'000US$'000US$'000Short-term benefits756 913 479 571 Post-employment benefits249 407 138 213 Total1,005 1,320 617 784 Six months ended June 30,Three months ended June 30, 39. SEGMENT INFORMATION For management purpose, the Company and its subsidiaries are currently organized based on type of vessels chartered – chemical, gas, oil, and floating production, storage and offloading (FPSO). These segments are the basis on which the Company a

51 nd its subsidiaries report their primary
nd its subsidiaries report their primary segment information. P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) Business Segment 2009 Business SegmentChemicalGasOilFPSOTotalUS$'000US$'000US$'000US$'000US$'000REVENUESExternal revenues226,969 20,746 51,720 5,430 304,865 Total segment revenues 226,969 20,746 51,720 5,430 304,865 Unallocated Total revenues per consolidated statement of income305,669 Segment expensesVoyage ExpensesPort Charges26,099 1,134 3,907 34 31,174 Fuel37,248 651 6,317 - 44,216 Total Voyage Expenses63,347 1,785 10,224 34 75,390 Charter Expenses24,640 - 1,629 - 26,269 Vessel Depreciation and Ship Operating ExpensesShip operating expenses:Salaries18,800 3,094 4,685 617 27,196 Repairs and maintenance5,043 167 1,115 249 6,574 Spare parts4,019 1,001 1,458 64

52 6,542 Insurance2,
6,542 Insurance2,480 312 1,202 402 4,396 Transportation1,590 407 727 111 2,835 Lubricants1,505 253 867 34 2,659 Supplies1,003 181 355 27 1,566 Processing of documents642 152 271 75 1,140 Employees' meal allowances512 131 314 123 1,080 Others1,190 355 625 178 2,348 Total Ship Operating Expenses36,784 6,053 11,619 1,880 56,336 Vessel Depreciation44,724 5,484 12,659 3,233 66,100 Total segment expenses169,495 13,322 36,131 5,147 224,095 Segment result57,474 7,424 15,589 283 80,770 Unallocated income and expensesChange in fair values of convertible bondsand notes payable(106,959)Agency and storage fees General and administrative expenses(13,511) Finance income (expense)22,999 Investment income3,066 Share in net loss of associates3,422 Other gains - net3,867

53 Profit before tax(5,542)
Profit before tax(5,542) Tax expense(441) Profit for the yea r (5,983) Other InformationCapital additions73,025 647 2,279 - 75,951 Depreciation36,273 3,672 14,751 2,580 57,276 AssetsSegment assets1,606,094 201,695 242,190 45,213 2,095,192Unallocated412,689 Consolidated total assets2,507,881LiabilitiesSegment liabilities38,300 3,433 13,183 671 55,587 Unallocated1,783,703Consolidated total liabilities1,839,290 P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) 2008 Business SegmentChemicalGasOilFPSOTotalUS$'000US$'000US$'000US$'000US$'000REVENUESExternal revenues256,838 14,280 72,173 5,460 348,751Total segment revenues 256,838 14,280 72,173 5,460 348,751Unallocated659 Total revenues per consolidated statement of income349,410Segment expensesVoyage ExpensesPort Charges27,943 478 3,413 - 31,834Fuel63,924 1,587 12,308 - 77,819Tot

54 al Voyage Expenses91,867 2,065
al Voyage Expenses91,867 2,065 15,721 - 109,653 Charter Expenses14,917 - 1,638 - 16,555Vessel Depreciation and Ship Operating ExpensesShip operating expenses:Salaries14,949 1,817 3,260 333 20,359Spare parts3,298 444 1,013 144 4,899 Repairs and maintenance3,327 93 526 91 4,037 Lubricants2,397 271 831 13 3,512 Insurance1,759 172 1,045 400 3,376 Transportation1,583 353 596 204 2,736 Supplies1,181 130 374 20 1,705 Processing of documents1,039 143 391 35 1,608 Employees' meal allowances659 166 276 80 1,181 Others136 443 487 61 1,127 Total Ship Operating Expenses30,328 4,032 8,799 1,381 44,540Vessel Depreciation36,421 3,521 15,223 2,683 57,848Total segment expenses173,533 9,618

55 41,381 4,064
41,381 4,064 228,596Segment result83,305 4,662 30,792 1,396 120,155Unallocated income and expensesChange in fair value of convertible bondsand notes payable94,383 Agency and storage fees659 General and administrative expenses(17,050)Finance costs(89,309)Investment income5,903 Share in net loss of associates Other gains and losses - net(5,175) Profit before tax109,655Tax expense(727) Profit for the year108,928Other InformationCapital additions152,677 48,721 - - 201,398Depreciation36,420 3,522 15,223 2,683 57,848 AssetsSegment assets1,601,659 166,197 355,952 42,935 2,166,743Unallocated466,554Consolidated total assets2,633,297LiabilitiesSegment liabilities13,827 4,215 15,226 295 33,563 Unallocated1,907,084Consolidated total liabilities1,940,647 P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) After initial recognition, IFRS allows an item of property, plant and equipment whose fair value can be measured reliably, t

56 o be carried at revalued amount, being t
o be carried at revalued amount, being the fair value at the date of revaluation, less subsequent accumulated depreciation and accumulated impairment losses, if any (the “Revaluation Model” under IAS 16). For IFRS reporting purposes, the Company and its subsidiaries adopted the Revaluation Model in measuring the vessels subsequent to initial recognition. If the vessel’s carrying amount is increased as a result of a revaluation, the increase is credited directly to equity under the heading of revaluation reserve. However, the increase shall be recognized in profit or loss to the extent that it reverses a revaluation decrease of the same vessel previously recognized in profit of loss. If the vessel’s carrying amount is decreased as a result of revaluation, the decrease shall be recognized in profit or loss. However, the decrease shall be debited directly to equity under the heading of revaluation reserve to the extent of any credit balance existing in the revaluation surplus in respect of that vessel. Also, under Indonesian GAAP, the costs of acquired landrights are capitalized as land, which is not depreciated. Under IFRS, land use rights are considered as leases and such rights are amortized over the period the holder is expected to retain the landrights. c. Financial Instruments Under Indonesian GAAP, short-term and long-term bank loans are stated a

57 t nominal value, being the principal amo
t nominal value, being the principal amount of the loan. Transaction costs on bank borrowings were classified as deferred charges and amortized on a straight-line basis over the period of the borrowings. For bonds payable, bonds issuance costs are deducted directly from the proceeds of the bonds. The difference between the net proceeds and principal amount of the bonds is amortized on a straight-line basis over the term of the bonds. All the proceeds obtained from the issuance of convertible bonds are recognized as liabilities. Under IFRS, financial liabilities are measured at amortized cost. Under Indonesian GAAP, non-interest bearing security deposits on leases are recorded at undiscounted amounts. Under IFRS, non-interest bearing security deposits on leases are recorded at fair value. The difference between the fair value and nominal amount is recorded as deferred rent and is amortized on a straight line basis over the lease term. Interest income is accreted on the security deposits using the effective interest rate. d. Measurement and Reporting Currency Under IFRS, enterprises should measure the transactions in terms of the functional currency. IFRS allows the use of a presentation currency other than the functional currency. Management has determined that the Company’s functional currency is the US Dollar. For IFRS reporting purposes, the transa

58 ctions were measured in terms of the fun
ctions were measured in terms of the functional currency. Management has chosen the US Dollar as the group presentation currency. P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) June 30December 31,Note20092008'000'000Equity according to the consolidated balance sheets prepared under Indonesian GAAPUS$586,076 571,205 IFRS adjustments - increase (decrease) due to:Amortization of goodwill(a)US$9,937 8,501 Impairment of goodwill(a)US$20,590 20,590 Revaluation reserve(b)US$209,917 234,454 Depreciation of revalued vessels(b)US$(26,615) (24,833) Gain on sale of property adjustment based on revalued amounts of vessels(b)US$(72,854) (57,773) Difference between depreciation expense basedon revalued amounts and historical cost(b)US$119,657 95,120 Amortization of landrights(b)US$(111) (88) Revaluation decrease(b)US$(177,020) (177,020) Foreign exchange loss(c)US$(190) (190) Option p

59 remium on convertible bonds(c)US$177
remium on convertible bonds(c)US$177 177 Measurement of financial liabilities at amortized cost(c)US$(973) (819) Total adjustments82,515 98,119 Equity in accordance with IFRS668,591 669,324 P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) b. Reconciliation of consolidated balance sheet between IFRS and Indonesian GAAP at December 31, 2008. INDONESIANReconcilingGAAPItemsIFRSUS$US$US$('000)('000)('000)Vessels, property and equipment - net1,913,642 68,618 1,982,260 Investments in associates273 - 273 Other non-current assets75,285 23,161 98,446 Total Non-Current Assets1,989,200 91,779 2,080,979 Trade accounts receivable96,674 - 96,674 Available-for-sale investments129,386 - 129,386 Cash65,250 - 65,250 Other current assets32,794 641 33,435 Total Current Assets324,104 641 324

60 ,745 Total Assets2,313,304
,745 Total Assets2,313,304 92,420 2,405,724 Share capital62,191 - 62,191 Additional paid-in capital64,823 177 65,000 Treasury stocks(86,628) - (86,628) Translation adjustment 398 - 398 Unrealized loss on available-for-sale investments(1,865) - (1,865) Revaluation reserve- 234,454 234,454 Retained earnings532,286 (136,512) 395,774 Total Equity571,205 98,119 669,324 Long-term liabilities - net of current maturitiesBank loans721,496 (4,503) 716,993 Bonds payable 81,450 78 81,528 Obligations under finance lease155,376 - 155,376 Convertible bonds36,250 - 36,250 Notes payable132,000 - 132,000 Other non-current liabilities162,796 - 162,796 Total Non-current Liabilities1,289,368 (4,425) 1,284,943 Short-term bank loans176,589 - 176,589 Trade accounts payable17,346 - 17,346 Current maturities of long-term

61 liabilities187,960 (1,274)
liabilities187,960 (1,274) 186,686 Other current liabilities70,836 - 70,836 Total Current Liabilities452,731 (1,274) 451,457 Total Equity and Liabilities2,313,304 92,420 2,405,724 P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) d. Reconciliation of consolidated statement of income between IFRS and Indonesian GAAP for the year ended at June 30, 2008. INDONESIANReconcilingGAAPItemsIFRSUS$US$US$('000)('000)('000)Operating revenues349,410 - 349,410 Voyage expenses(109,653) (109,653) Operating revenues after voyage expenses239,757 - 239,757 Charter expenses(16,555) (16,555) Vessel depreciation and ship operating expensesShip operating expenses(44,540) (44,540) Vessel depreciation(57,647) (201) (57,848) (102,187) (201) (102,388) Gross profit121,015 (201) 120,814 Gen

62 eral and administrative(17,517)
eral and administrative(17,517) 467 (17,050) Income before financial and other items103,498 266 103,764 Net financial and other itemsFinance expense(88,666) (643) (89,309) Investment income5,903 - 5,903 Share in losses of associates89 - 89 Other gains and losses87,001 2,207 89,208 4,327 1,564 5,891 Income before tax107,825 1,830 109,655 Tax expense (727) - (727) Profit for the year107,098 1,830 108,928 Presented as "Total direct costs" in Indonesian GAAP consolidated financial statements. 41. FINANCIAL INSTRUMENTS A. Capital risk management The Company and its subsidiaries manage their capital to ensure that they will be able to continue as a going concern while maximizing the return to stakeholders through the optimization of the debt and equity balance. The capital structure of the Group consists of debt, which includes the borrowings, cash, available-for-sale investments and equity attributable to equity holders of the parent, comprising i

63 ssued capital, reserves and retained ear
ssued capital, reserves and retained earnings. P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) - 60 - Financial Liabilities Financial OtherFinancial Otherliabilities at financialliabilities at financialFVTPLliabilitiesFVTPLliabilitiesUS$'000US$'000US$'000US$'000Long-term bank loans- 924,122 - 814,936 Bonds payable - 135,789 - 81,528 Notes payable189,897 132,000 - Other long-term payable13,000 - 13,000 Convertible bonds85,312 - 36,250 - Obligations under finance lease- 260,215 - 243,528 Derivative financial instruments83,905 - 175,983 - Short-term bank loans- 82,306 - 176,589 Trade accounts payable- 15,486 - 16,927 Other current liabilities- 1,908 - 2,677 1,432,826 344,233 1,349,185As of December 31, 2008As of June 30, 2009 The convertible bonds with a nominal value of US$ 125 million and notes payable with a nominal value of US$ 400 million were

64 designated at fair value through profit
designated at fair value through profit or loss (FVTPL) upon initial recognition in 2007. The fair value and the change in that fair value attributable to changes in credit risk are presented as follows: ConvertibleNotesConvertibleNotesbondspayablebondspayableUS$'000US$'000US$'000US$'000Contractual amount to be paid at maturity 161,975 400,000 161,975 400,000 Fair values85,312 189,897 36,250 132,000 Changes in fair value not attributableto changes in market conditions(64,913) (253,303) (114,142) (108,966) Difference between carrying amount and amount contractually required to be paid at maturity76,663 210,103 125,725 268,000 December 31, 2008June 30, 2009 The change in fair value attributable to change in credit risk is determined as the residual of the change in fair value attributable to the change in market risk from the total change in fair value of the financial liabilities. The change in fair value attributable to its change in market risk was computed using the benchmark interest rates as at the balance sheet date. The change in fair value was impacted by the downgrade of the notes payable’s and convertible bonds’ credit rating from BB- to B+ in 2007, to B in 2008 and to CCC/CCC+ in D. Financial Risk Management Objective The Company and its subsidiaries’ also have

65 established financial risk management an
established financial risk management and policy which seeks to ensure that adequate financial resources are available for the development of the Company and its subsidiaries’ business while managing their foreign exchange, interest rate, credit and liquidity risks. The Company and its subsidiaries operate within defined guidelines that are approved by the Board of Directors, and policies in respect of the major areas of treasury activity. P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk as the year-end exposure does not reflect the exposure during the year. It is also the policy of the Company and its subsidiaries to enter into cross currency and interest rate swap derivative contracts to cover exposures on specific foreign currency principal and interest payments. These contracts are entered into as economic hedge of the risk exposure although hedge accounting has not been applied. The following table details the cross currency and interest rate swap derivative contracts outstanding as at reporting date: Notional AmountsFair valueNotional AmountsFair valueUS$'000US$

66 '000US$'000US$'000Less than 1 year113,34
'000US$'000US$'000Less than 1 year113,343 12,369 156,667 30,784 1 to 2 years50,000 5,381 6,676 1,405 2 to 5 years677,272 31,750 677,272 61,233 840,615 49,500 840,615 93,422 As of December 31, 2008As of June 30, 2009 Interest Rate Risk Management The Company is also exposed to interest rate risk as they also borrow funds in Rupiah and U.S. Dollar at both fixed and floating interest rates. The risk is managed by maintaining an appropriate mix between fixed and floating rate borrowings and minimizing the exposure through cross currency swap contracts (combined interest rate swap contracts and forward foreign exchange contracts). The Company’s exposure to interest rate on financial assets and financial liabilities are detailed in the liquidity risk management section on this note. The sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives and non-derivative instruments at the balance sheet date. For floating rate liabilities, the analysis is prepared assuming the amount of liability outstanding at the balance sheet date was outstanding for the whole period. A 120 ba

67 sis points (2008: 50 basis points) incre
sis points (2008: 50 basis points) increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates. If interest rates had been 120 basis points (2008: 50 basis points) higher or lower and all other variables were held constant, the Company and its subsidiaries’ profit for the periods ended June 30, 2009 and 2008 would decrease/increase by US$ 5,801 thousand and US$ 2,721 thousand, respectively. This is mainly attributable to the exposure to interest rates on its variable rate borrowings. Credit risk management The Company and its subsidiaries’ exposure to credit risk is primarily attributable to trade and other accounts receivable, investments and bank balances. In determining the credit terms for customers, they consider the following factors: the financial strength of the customer, the customer’s historical payment record, the length of the relationship with the customer and the distance or duration of a specific voyage. Based on these factors, the Company and its subsidiaries’ credit terms may vary. The credit terms may also be modified based on negotiations with each customer. It is the Company and its subsidiaries’ policy to monitor the financial standing of these receivables on an on-going basis to ensure that the Comp

68 any and its subsidiaries are exposed to
any and its subsidiaries are exposed to minimal credit risk. Bank balances and investments are placed with credit worthy financial institutions. Although the Company and its subsidiaries generate more than 5% of their revenue from Pertamina (National Oil Company of Indonesia), there has been no history of credit default with Pertamina. P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) The following table details the Company and its subsidiaries’ expected maturity for its non-derivative financial assets. The tables below have been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those assets except where the Company and its subsidiaries anticipates that the cash flow will occur in a different period. Financial Assets WeightedaverageeffectiveinterestLess than 13 months torate month1 - 3 months1 year1- 5 years After 5 yearsTotal%US$'000US$'000US$'000US$'000US$'000US$'000As of June 30, 2009Non interest bearing 57,894 234,984 - - 22,195 315,073 As of December 31, 2008Non interest bearing 75,193 48,289 135,807 - 15,104 274,393 Fl

69 oating interest rate2.54%-
oating interest rate2.54%- 36,688 - - - 36,688 75,193 84,977 135,807 - 15,104 311,081 The Company and its subsidiaries expect to meet their other obligations from operating cash flows, proceeds of maturing financial assets, bank and equity financing. Other price risks In addition to market price risk on available-for-sale investments, the Company is exposed to market price risks because of the convertible bonds and notes payable issued by BLTF BV and which were classified as financial liability at fair value through profit or loss. To manage its price risk arising on convertible bonds, the Company’s management supervises and monitors the Company and its subsidiaries’ performance. As of June 30, 2009 and December 31, 2008, if the market price of the financial liabilities had increased/decreased by the following sensitivity rates with all other variables held constant, post-tax profit for the year would have been lower/higher as follows, mainly as a result of the change in the fair value of the convertible bonds and notes payable recognized in profit or loss. Effect on profit Effect on profit Sensitivityor loss and Sensitivityor loss and RateequityRateequityUS$'000US$'000Convertible bonds12%(10,238) 25%9,062 Notes payable15%(28,485) 20%26

70 ,400 As of December 31, 2008As of
,400 As of December 31, 2008As of June 30, 2009 P.T. BERLIAN LAJU TANKER Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED AS OF JUNE 30, 2009 AND 2008 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) AND DECEMBER 31, 2008 (AUDITED) (Continued) 44. IMPACT OF GLOBAL FINANCIAL CRISIS The global financial and capital markets have experienced severe credit crunch and volatility. The ability of the Company and its subsidiaries to maintain operations and profitability and to pay their debts as they mature may be dependent to a large extent on the effectiveness of the fiscal measures and other actions, beyond their control, undertaken to achieve economic recovery. Nevertheless, the Company and its subsidiaries maintain considerable financial resources and access to bank financing, together with long-term contracts with a number of customers and suppliers across diversified geographic areas and industries. The management has a reasonable expectation that the Company and its subsidiaries are well placed to manage its business risks successfully despite the current uncertain economic outlook and believes that the Company and its subsidiaries have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the consolidated financ