Polarcus 2010 Annual Report

Page 96

15. Depreciation and amortization Year ended (In thousands of USD)

31-Dec-10

31-Dec-09

Depreciation of seismic equipment

6,770

140

Disposal of seismic equipment

2,825

-

Total

9,595

140

16. Finance costs Year ended (In thousands of USD)

31-Dec-10

31-Dec-09

Interest expenses on senior secured bond

7,499

7,455

Interest expenses on convertible bond

4,114

3,974

Interest expenses on lease arrangements

2,759

658

Other interest expenses

664

-

Realized currency exchange loss

362

92

Unrealized currency exchange loss

963

1,351

Other financial losses

576

-

16,937

13,530

Total

17. Finance income Year ended (In thousands of USD) Interest income from deposit with banks

31-Dec-10

31-Dec-09 114

393

9,547

10,150

247

-

Realized exchange gain

1,448

236

Unrealized exchange gain

1,492

6,909

12,848

17,688

Interest income from subsidiaries Other financial gains

Total

The realized currency gain or loss represents the effect of foreign currency payments made and the unrealized currency gain or loss represents the effect of revaluation of foreign currency financial assets other than those treated as cash flow hedging instruments. Interest income from subsidiaries is interest expenses of the Company charged to the subsidiaries and relates to the borrowings of the Company for the specific purpose of financing the vessel construction projects of the subsidiaries.

96


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