Liquidity risk
As at 31 December 2023, liquidity for covenant testing purposes was USD 70.3 million. Under the existing credit facility agreements, the Group is required to maintain a minimum liquidity of USD 28 million from 1 January 2024 and thereafter. The Group is anticipated to be able to stay above the minimum cash covenant level for the next 12 months based on currently known information and commitments. In 2023, the Group has completed new share issues to raise cash to reduce the liquidity risk and maintain sufficient cash to cover its financial and operational obligations.
As at 31 December 2023, the Group\u2019s main financial liabilities had the following remaining contractual maturities:
Per year | 2024 | 2025 | 2026 | 2027 | 2028 |
Interest-bearing debt (repayments)\u200c1 | 6.6 | 349.9 | 7.2 | 7.0 | 58.0 |
Interests\u200c2 | 28.9 | 29.7 | 1.4 | 1.2 | 0.7 |
Taxes | 10.1 | 0.0 | 0.0 | 0.0 | 0.0 |
Accounts payable and other current liabilities | 27.5 | 0.0 | 0.0 | 0.0 | 0.0 |
Total | 73.1 | 379.6 | 8.6 | 8.2 | 58.7 |
1Interest-bearing debt includes lease liabilities, credit facilities and sellers credit from Cosco. The credit facilities mature on 31 December 2025. Assuming only the firm contracts, there will be no cash sweep under the credit facilities prior to maturity. The Group is paying the minimum instalments agreed with Cosco under the Safe Eurus sellers credit which matures approximately in 2028.
2Interest on lease liabilities, credit facilities and seller credits. Based on current agreed credit margin plus SOFR forward curve as at 31 December 2023, and the expected cash flows under the sellers credit terms.
As at 31 December 2022, the Group\u2019s main financial liabilities had the following remaining contractual maturities:
Per year | 2023 | 2024 | 2025 | 2026 | 2027 |
Interest-bearing debt (repayments)\u200c1 | 6.3 | 6.3 | 349.7 | 7.0 | 65.0 |
Interests\u200c2 | 26.0 | 22.7 | 20.3 | 1.4 | 1.9 |
Taxes | 18.0 | 0.0 | 0.0 | 0.0 | 0.0 |
Accounts payable and other current liabilities | 20.6 | 0.0 | 0.0 | 0.0 | 0.0 |
Total | 70.9 | 29.0 | 370.0 | 8.4 | 66.9 |
1Interest-bearing debt includes lease liabilities, credit facilities and seller credit from Cosco. The credit facilities mature in 2025. Assuming only the firm contracts, there will be no cash sweep under the credit facilities prior to maturity. The Group is paying the minimum instalments agreed with Cosco under the Safe Eurus seller credit which matures approximately in 2028.
2Interest on lease liabilities, credit facilities and seller credits. Based on current agreed credit margin plus USD 3M LIBOR and SOFR forward curve as at 31 December 2022, and the expected cash flows under the seller credit terms.
Capital management
The primary objective of the Group\u2019s capital management is to ensure that it maintains a healthy capital structure in line with economic conditions. The Group manages the total of shareholders\u2019 equity and long-term debt as their capital. Normally the Group\u2019s main tool to assess its capital structure is the leverage ratio, which is calculated by dividing net interest-bearing debt including bank guarantees, by Group gross profit before depreciation and impairment over the last 12 months.