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 Data processing for fishing vessel evaluation

The task of the given practical work of fishing vessel evaluation is to determine the set of characteristics as well as the deadweight DW, the displacement empty DP, the main engine power Ne, the daily fuel consumption for running q1and for trawling (catching) q2, the length at the cargo waterline LW and the breadth B, using initial data and the prototype characteristics.

           The deadweight is DW PG + ÐFL=………….+………….=…………… tonne .

           The displacement empty is equal

DP =D – DW=…………….–……………=………….. tonne .

           The vessel–prototype characteristics are presented in tab. A4.

Table A4

Cargo displacement total [D], tonne

Length at the cargo waterline [LW], meter

Breadth
[B], meter

Operational speed [υS], knot

Power of the main engine [Ne], kW

Daily fuel consumption for running [q1],
tonne / day

Daily fuel consumption for trawling (catching) [q2], tonne / day

1150

50,5

10,2

12

820

4,4

2,8

Symbols of the prototype data are accepted in square brackets.
           The length vessel of the cargo waterline of the evaluated fishing is determined as:

 meter.

The breadth of the evaluated vessel is determined as:

. meter.

The main engine power of the evaluated vessel is determined by the formula of «the Admiralty factors». The Admiralty factor [ñADM] for the fishing vessel is calculated with use of vessel–prototype data and makes

..

The main engine power Ne of the evaluated fishing vessel is

. kW.

The daily fuel consumption for running of the evaluated fishing vessel is

.   tonne / day.

The daily fuel consumption for trawling (catching) is

.   tonne / day.

The net register tonnage of a fishing vessel for the given practical work should be determined by the formula

.

units of register tonnage.

The determination of the value and the basic economic indexes in the given practical work is carried out in US dollars since the market commercial vessels has the international structure and calculations mostly are made in US dollars.
           The data of vessel prices of the majority of marine broker companies and the data in advertisements in the Internet usually are presented in the same monetary units.

Estimation of fishing vessel replacement cost based on comparable sales approach

The vessel value based on comparable sales approach can be estimated by use of the analogues in accordance with its methodological definition under the Federal Standard ¹ 2 «The purpose of evaluation assignment and types of value (ÔÑÎ ¹ 2)», approved by the order ¹ 255 of Ministry of Economical Development of Russia July 20, 2007: the market value is the «most probable price …». The specified definition can be provided with the statistical calculations and the regressions formalization.
           The fishing vessel replacement cost RC is estimated according the marketing research.
           The calculations provided in accordance with the requirements of Standards and are based on marketing researches and on the account of the following factors:
           – Conditions of the prospective sale – mainly of the transferred set of rights and time of sale – for analogues and for the evaluated vessel; and the transferred property rights are defined according to the Article 209 of the Civil code of the Russian Federation; for estimation of replacement cost the vessel years is equal to zero since replacement cost corresponds to the cost of a new vessel analogue with reference to economic conditions on the date of estimation;
           – Characteristics of the commercial vessel and analogues – when estimating the replacement cost corresponding, units of comparison are used;
           – Characteristics of the economic environment – the indexes which characterize the vessels market and the marine services, considered by statistical researches in the process of regressions formalization.
           Data about the replacement cost of a new steel fishing vessels are taken into account by statistical researches in process of regressions formalization.
           The used units of comparison are as follows:
           – Deadweight DW;
           – Displacement empty DP;
           – Length of the cargo waterline LW of the fishing vessel;
           – Main engine power Ne;
           – Volume of cargo holds W.
           The deadweight of the evaluated fishing vessel is equal to DW = ……… tonne.
           The replacement cost when using the marketing researches data of prices of the new steel fishing vessels and deadweight DW as a unit of comparison is equal

. = ………….…  thousand US dollars .

The displacement empty of the evaluated fishing vessel is equal to DP = ……… tonne.
           The replacement cost when using the marketing researches data of the prices of new steel fishing vessels and deadweight DP as a unit of comparison is equal

. = ………….…  thousand US dollars.

The length of the cargo waterline of the evaluated fishing vessel is LW =…..… meter.
           The replacement cost when using the marketing researches data of the prices of new steel fishing vessels and the length of the cargo waterline of an evaluated fishing vessel LW is used as a unit of comparison is

. = ………….…   thousand US dollars.

The main engine power of the evaluated fishing vessel is equal to Ne = ………  kW.
           The replacement cost when using the marketing researches data of the prices of new steel fishing vessels and main engine power Ne is used as a unit of comparison is equal

. = ………….…  thousand US dollars.

The holds capacity of the evaluated fishing vessel is equal W = ………….…  cubic metre.
           The replacement cost when using the marketing researches data of the prices of new steel fishing vessels and capacity of holds W is used as a unit of comparison is equal

. = ………….…  thousand US dollars.

The average value of the replacement cost of the fishing vessel when using the marketing researches data and various characteristics as units of comparison: deadweight DW, displacement empty DP, lengths of the vessel of the cargo waterline LW, power of main engine Ne, holds capacity W __________  ______, 20___, – equals

RC = (……….…+ ……….… + ……….… + ……….… + ……….…) / 5 =

= ………….…  thousand US dollars.

In the given estimation the replacement cost of the fishing vessel when using the marketing researches and statistical regressions is not the average weighed characteristic as in case of the value estimation by standard independent approaches, and is the calculation by the uniform database with the assumption about the equal influence of applied units of comparison to the replacement cost of the vessel.

Fishing vessel value estimation based on cost approach

The eradicable physical depreciation of the vessel is estimated in cash, corresponds to needs for expenses for repair and on __________  ______, 20___ is

D1 = ÑRM≈ 0.025×RÑ = 0.025 ׅ……. = ………. thousand US dollars.

In case of the evaluation by the «life time» method the ineradicable physical depreciation D2 should be correlated with the vessel years t and its prospective life time T.
           In a proportion of the statistical regression of the value dependence on vessel years t = ……… years for the variant when the vessel tonnage is used as a unit of comparison the ineradicable physical depreciation of the fishing vessel on __________  ______, 20___ is

.

In a proportion of the statistical regression of the value dependence on vessel years t = ……… years for the variant when the vessel’s main engine power is used as a unit of comparison the ineradicable physical depreciation of the fishing vessel on __________  ______, 20___ is

.

In a proportion of the statistical regression of the value dependence on vessel years  t = ……… years for the variant when the index of area as the unit of comparison equal to the product of the vessel length over all by the breadth, ineradicable physical depreciation of a fishing vessel on __________  ______, 20___ makes

.

The following recommendations should be applied to the approximate determination of vessel life time T to an estimate the ineradicable physical depreciation in a linear proportion to age t:
           à) To define the age of vessel t and remained term before the expiration of the Certificate of seaworthiness;
           á) To accept vessel structural durability equal 25 years if the sum of vessel years t and the period before the expiration of the Certificate of seaworthiness is less than 25 years;
           â) If the sum of vessel years t and the term before the expiration of the Certificate of seaworthiness is more than 25 years, vessel structural durability T should be equal to the sum of vessel years t and the term before the expiration of the Certificate of seaworthiness Ò = ………+………..=………….. years.
           It should be noted, that the recommended value of the «critical age» (25 years) is offered only for use in practical training work.
           The vessel structural durability with the account the stated recommendations is equal to T = ………….. years.
           The ineradicable physical depreciation in a linear proportion by the fishing vessel years t and structural durability T on __________  ______, 20___ is

D2 = 100 % × t/ Ò – 100 % × SV / RC =

= 100 % ׅ……… / ………… – 100 % ׅ……… / ………… ≈ ………… %,

where t = ………… years – the age on the day of the fishing vessel evaluation;
           Ò = ………… years – the structural durability of the fishing vessel;
           SV = …………. thousand US dollars – the scrap value, i.e. the residual liquidation value – the value of the compelled sale of materials as a vessel scrap without an estimation of functional suitability of separate parts, for the practical work recommended for estimation with the cost of a scrap 50 US dollars for tonne of the vessel displacement empty;
           RC = …………. thousand US dollars – the vessel replacement cost.
           The average weighed value of ineradicable physical depreciation D2 of the fishing vessel, determined depending on age t and life time T from the set of values received above: ………… %,  ………… %, ………… % and ………… %, is equal

D2 = ¼ ׅ……… % + ¼ ׅ……… %  + ¼ ׅ……… % + ¼ ׅ……… % =

= ………… %.

The functional depreciation (D3, D4) in the considered example does not influence the vessel market value, since a base index in case of the evaluation by the cost approach is not the reproduction cost, but the replacement cost RC, that is the cost of construction of the evaluated vessel functional analogue at market prices, possessing the same elements of a functional inefficiency.
           The evaluation of external obsolescence (economical) D5in the given practical work should be neglected or considered by the expert adjustment – from 5 to 15 %.
           Also the formula (9.17) or the similar formula depending on assumptions concerning the estimations of difficulties of the parties and external limitations (.,. and ., can be recommended to evaluate the external economic obsolescence, see Chapter 9). And in order to estimate the vessel’s external economic obsolescence D5 by the formula (9.17) it is necessary to estimate preliminary the annual operation costs C and working assets OC, that is shown below in case of the estimation based on income approach.
           The market value of a fishing vessel estimation based on cost approach on __________  ______, 20___, corresponds to a difference between the replacement cost RC and depreciation

MV = RC× (100 % – D2)/100 % – D1 =

= ……….× (100 % –………..)/100 % – ….…… = ……….. thousand US dollars .

Fishing vessel evaluation based on method of the net operating income capitalization

The structure of annual operation costs Ñ for a fishing vessel correspond to the summation

Ñ =CCR +CFED +CEXP +CSOC +CRES +CINST +CMS +
+CFL+CSUP +CRM+ CG+CMM+CDS ,

where, the labor costs of the crew CCR(with the service personnel), expenses for crew’s food supply CFED, the specific payments to the social insurance funds from the crew salary CSOC , the expenses for crew delivery CEXP(to onboard and out of), the expenses for the quota purchase CRES(a payment for ocean biological resources use under the rates provided by the tax Code), the expenses for the compensation of deterioration and for the replenishment of the fishery tools CINST, the expenses for the purchase of tare materials, separation and technological materials CMS, the annual expenses for fuel CFL, the annual expenses for supply CSUP,  the average annual expenses for maintenance and repair CRM, the general service expenses, the administrative expenses for management and marketing CG+CMM+CDS.
           The average annual expenses for repair are roughly 2.5 % of the reproduction cost of commercial vessel and are determined above

CRM ≈ ………. thousand US dollars.

The annual expenses for crew salary CCR(with the service personnel), expenses for crew’s food supply CFED,  the specific payments to the social insurance funds from the crew salary CSOCthe expenses for crew delivery CEXP(to onboard and out of) with the account the developed proportion of these terms is equal

CCR  +CFED +CEXP +CSOC ≈ 1.48 × nCR × ñCR = 1.48 ׅ……. ׅ……….. =

= ………….. thousand US dollars,

where nCR = ……… man – the crew of a fishing vessel, including the fish processsing personnel, ñCR≈ ……… thousand US dollars a year – the average annual expenses for the support of one crew member.
           For the analysis and the choice of the highest and the best variant of use it is reasonable to consider different variants of fishing vessel operation, including the autonomous (A), the expedition operation (B), as well as the processing refrigeration vessel (C).

           À.  Autonomous fishing vessel operation

There is a variant of fishery operation when the vessel makes the trawling (catching), processing and produces as the average ……… tonne / day of frozen production daily and independently delivers processed fish products to the harbor.
           The average duration of trip in case of the autonomous operation is calculated as TRF = tR+ tM+ tFS+ tAR, ãäå tM+ tFS= 1 + ……… = ……… days – the duration of commercial vessel operation at the fishing grounds before the hold is filled; tM ≈ 1 day (the recommended data for the practical training work) – the general duration of vessel maneuvering around fishing grounds for the trip; tFS ≈ ……… days – fish catching before the hold is filled (the cargo capacity of fishing vessel PG = ……… tonne and the average daily rate of production – ……… tonne / day are taken into consideration); tAR – the duration of harbor mooring between trips, tAR ≈ ……… days (for the practical training work it is recommended to accept the duration of mooring tARin the range from 3 to 10 days, smaller values – for small fishing vessels).
           The duration of vessel running to ocean fishing grounds (for example, in the sea of Okhotsk with the average remoteness from the port about ……… miles) is determined as:

tR = 2 × £ / (24 ×υS) = 2 × ……… / (24 × ………) = ……… days.,

where £ =……… nautical miles – the distance to the fishing grounds from home harbor;  υS =……… knots – the vessel operational speed.
           The average duration of a trip in case of autonomous operation of a fishing vessel makes

TRF = tR+ tM+ tFS+ tAR= ………  + ………  + ………  = ……… days.

The total of the vessel’s round trips during the annual operational cycle is

nR=TEXP/TRF=330/ ………  » ………, where TEXP ≈ 330 days – the general duration of the annual operational period.
           The annual average productivity of the processed products makes

Q1 = nR× PG = ………×………. = …………… tonne,

where PG = ………  tonne – the amount of the processed fish products, during the trip, corresponding to the cargo capacity PG for the variant of fishing vessel autonomous operation.
           The expenses for quota purchase ÑRES(payment for ocean biological resourses), as well as the other components of operation costs related to the annual volume of fishery Q1/rnamely: the compensation of deterioration and replenishment of fishery tools ÑINST, the expenses for purchase of tare materials and separation ÑMS, the general service expenses, the expenses for management and marketing ÑG + ÑMM + ÑDSwith the account the developed relation of the components of the sum, – are equal to:

ÑRES +ÑINST +ÑMS +ÑG +ÑMM+ÑDS ≈ 0.14 ×Q1/r=

= 0.14 × ………  / 1.0  = ……….. thousand US dollars,

where r – the weight ratio of processed fish products for tonne of fresh fish, r = 1.0 – the recommended value to be used in practical training work when PGPR = ÐF/1.0 =ÐF, that is the weight of processed fish products in given should be accepted equal to the fresh fish weight.
           The annual operational expenses for fuel in case of the autonomous operation of fishing vessel

ÑFL = (q1× tR + q2× ( tM+ tFS)) × nR×. =

= (……….. × ………..+ ………..× ………..) × ………..ׅ…….. =

= ………..  thousand US dollars,

where, q1 = …… tonne / day – the daily fuel consumption for running; q2 = …… onne / day – the average daily fuel consumption in the course of maneuvering and production reception at the fishing grounds; .= ………… US dollar / tonne – the cost of one tonne of the applied diesel fuel.
           Cost of supplies make

ÑSUP ≈ 0.07 × ÑFL ≈ 0.07 × ……….. = …………  thousand US dollars.

The general value of annual operation costs Ñ1 for the fishing vessel without including depreciation charges is determined by summation of the components with the account the recommendations concerning grouping of components and is

Ñ1 = (ÑCR+ÑFED+ÑEXP+ÑSOC) + (ÑRES+ÑINST+ÑMS+ÑG+ÑMM+ÑDS) +ÑFL+ÑSUP +ÑRM =

= ………..+ ………..+ ………..+ ………..+ ………..= ……….. thousand US dollars.

The average price of prevailing kinds of the fish products processed by the vessel in an autonomous fishing and delivered to the port, that is the income per a unit of mass of the processed fish products (or seafood), includes delivery expenses (from 80 to 120 thousand US dollars / tonne, on the average 0.10 thousand US dollars / tonne) and equals

m = ……… + 0.10 = ……….. thousand US dollars / tonne.

The annual income is

I1=Q1×m = ……… × ……… = ………… thousand US dollars.

The rate of the net operating income capitalization is determined by the sum of:
           – Discounting rate which is preset and equals i = …………. %, and
           – Factor of fund of compensation of investments, with the account the life time T, vessel years t and the operation time which remains before the vessel utilization for scrap

Ò – t = ……….…–………...…=…………  years.

The factor of fund of compensation of the depreciated part of the investments . equals

..

The rate of the net operating income capitalization is

R = i + .= ……… % + ………. % = ………. %.

By the method of the net operating income capitalization the value of the technically valid for marine operation and equipped fishing vessel for the autonomous operation, determined on __________  ______, 20___, is

           .=

= (…………. – ………….) / (………. + 0.02 + 0.015) = ……….  thousand US dollars.

The value of the annual net operating income for the given variant of vessel operation makes

.= …………. – …………. = …………. thousand US dollars.

For the operation of the fishing vessel technically valid for marine operation and equipped there is a requirement for the stock of working assets OÑ1for the advance payments of operation costs. The requirement for the replenishment of the working assets equals

OÑ1Ñ1×TRF/TEXP = ………. × ……….  / 330 = …………. thousand US dollars.

The vessel value estimated based on income approach, minus required adjustment for the replenishment of the working assets (OÑ1 = …………. thousand US dollars) and after the deduction of the eradicable physical depreciation (D1 ≈ …………. thousand US dollars) on __________  ______, 20___ make

MV1 – OÑ1 – D1 = ………… – ………… – …………= …………. thousand US dollars.

           B. Vessel operation at the fishing ground

The variant of operation when the vessel carries out the trawling (catching), processing and production of frozen processed fish with average daily productivity ……..…. tonne and also transfers fish products to processing mother ship (or on a cargo vessel for the delivery to the port).
           The fuel consumption for the search of fish, maneuvering and fishery during the period between the transfers of the fish on processing mother ship is

PFPR = Ð(tM) + ÐFR(tFS, Δt),

where Ð = q1×tM – the fuel consumption on maneuvering when searching a congestion of fish,  q1 – the daily fuel consumption for running, ÐFR = q2× (tFSt) – the fuel consumption during the operating time at the fishing grounds, including fishery and transfer of the processed fish products, q2 – the daily fuel consumption for trawling (catching); tM ≈ 1 days.; Δt=1 day (offered values for a training task);

Ð =q1× tM = ………. × 1 = ………. tonne;

ÐFR = q2 × (tFSt) = ………. × (………. + 1) = ………. tonne;

PFPR= Ð + ÐFR = ………. + ………. = ………. tonne.

The duration of round trip TP of the vessel in fishing ground (an interval of the fuel fillings–up) is

TRF = (tM + tFS + Δt) × PFL /PFPR =

= (1 + ………. + 1) × ………. / ………. =………. days.,

where PFL = ………. tonne – the specification (maximal) stock of fuel onboard a vessel.
           The amount of the processed fish products, trawled (catched) during the round trip, is equal

PGPR = ÐF/r = PG ×r×PFL /PFPR = ……….× 1.0 × ………. / ………. = ………. tonne,

where PG = ………. tonne – the cargo capacity of a fishing vessel.
           The total of round trips of a fishing vessel during an annual operational cycle is

. = (330 – ……….– ……….) / ………. = ………..

The annual productivity at the fishing ground is at the average

Q2 = nR×PGPR = ………. × ………. = ………. tonne.

The expenses for quota purchase ÑRES(payment for ocean biological resources), as well as the  other components of operation costs related to the annual volume of fishery Q2/rnamely: compensation of deterioration and replenishment of tools ÑINST, expenses for purchase of tare materials and separation ÑMS, the general service expenses, the expenses for management and marketing ÑG + ÑMM + ÑDS are equal

ÑRES +ÑINST +ÑMS +ÑG +ÑMM + ÑDS ≈ 0.14 × Q2 / r =

= 0.14 × ………. /1.0 = ………. thousand US dollars.

The annual expenses for fuel in case of the vessel operation at the fishing ground make . =

= (………. × ………. + ………. × ……….) × ………. = …………. thousand US dollars.

The annual expenses for supply are equal to

ÑSUP≈ 0.07 × ÑFL ≈ 0.07 × ……….. = …………. thousand US dollars.

The general value of annual operation costs Ñ2is determined by the summation of the components with the account recommendations concerning grouping terms and is equal

Ñ2 = (ÑCR+ÑFED+ÑEXP+ÑSOC) + (ÑRES+ÑINST+ÑMS+ÑG+ÑMM+ÑDS)+ÑFL+ÑSUP+ÑRM =

= ………..+ ………..+ ………..+ ………..+ ………..= ……….. thousand US dollars.

The average price of the fish products of prevailing kinds processed by the vessel at the fishing ground and transferred to a cargo vessel for delivery (or to processing mother ship), that is the income per a unit of mass of the processed fish products (or seafood), is m = ………. thousand US dollars / tonne and does not include expenses for the delivery to the port.
           The annual income is determined as:

I2 =Q2× m= ………. × ………. = ………. thousand US dollars.

The capitalization rate is equal to R= ……….. %.
           By the net operating income capitalization method the value of the vessel technically valid for marine operation and equipped, for the variant of the vessel operation at the fishing ground, determined on __________  ______, 20___, is

.=

= (…………. – ………….) / (………. + 0.02 + 0.015) = ………. thousand US dollars.

The annual net operating income in the given variant of vessel operation is

.= ………. – ………. = ………. thousand US dollars.

For operation of the fishing vessel technically valid for marine operation and equipped, the stock of working assets OÑ2for the advance payments of operation costs is required.
           The requirement for the replenishment of the working assets is equal

OÑ2 Ñ2×TRF/TEXP = ………. × ………. / 330 = ………. thousand US dollars.

The vessel value estimated based on income approach, minus required adjustment for the replenishment of the working assets (OÑ2 = ………. thousand US dollars) and after the deduction of eradicable physical depreciation (D1 ≈ ………. thousand US dollars) on __________  ______, 20___ is

MV2 – OÑ2 – D1 = ………… – ……..…. – ………. = ………. thousand US dollars.

           C. Vessel operation as the processing refrigeration vessel

There is a variant when the processing fishing vessel, for example the refrigerating processor, receives fresh fish from the trawling (catching) vessels, processes and produces of the fish products with the average daily productivity ……….. tonne (in the given task it is offered to accept daily productivity twice more than the productivity of the trawling vessel) and transfers the production to the cargo vessels for the delivery to the port.
           The processed products output in case of the vessel operation as the processing refrigerator is more than in operation variants of autonomous marine fishery expedition. The productivity increase is possible, if the autonomous fishing is not carried out, and the fresh fish is received from others vessels.
           Since in a considered variant the vessel accepts the fresh fish from the trawling (catching) vessels and processes it, then one part of the income concerns the operation of the evaluated fishing vessel, and the other part – to the trawling (catching) vessels.
           The fuel consumption for maneuvering and fish receiving during the period between the transfers of the production to the a cargo vessel is determined according to the terms

Ð = q1 × tM = ………. ×1 = ………. tonne;

ÐFR = q2 × (tFS + Δt) = ………. × (………. +1) = ………. tonne;

where tFS ≈ ……… days – the duration of the fish products reception before the hold is filled (it is considered that cargo capacity of fishing vessel PG = ……… tonne and average daily productivity of the processed products – ……… tonne offered for the given task is twice more than the set productivity for the fishing vessel).
           The fuel consumption for maneuvering and reception of fish during the period between the transfers of the production to a cargo vessel is equal to

ÐFPR= Ð + ÐFR = ……….  + ………. = ………. tonne.

The duration of round trip TPof the vessel in fishing ground (an interval between the fuel fillings–up) is equal to

TRF = (tÌ + tFS + Δt) × PFL /PFPR =

= (1 + ………. + 1) × ………. / ………. =………. days.

The amount of the processed fish products, produced during the round trip, is equal to

PGPR = ÐF/r = PG ×r×PFL /PFPR = ……….× 1.0 × ………. / ………. = ………. tonne.

The total sum of round trips of the fishing vessel during the annual operational cycle is

.= (330 – ……….– ……….) / ………. = ……….  .

The average annual productivity by the output amount of the processed fish products with the requirement of fish reception from others vessels at the fishing ground is

Q3 = nR×PGPR = ………. × ………. = ………. tonne .

The correlated with the annual amount of the fish products output Q3components of the operation costs, namely: expenses for purchase of tare materials and separation ÑMS, the general service expenses, the expenses for management and marketing ÑG + ÑMM + ÑDSwith the account the developed parity terms are equal

ÑMS +ÑG + ÑMM + ÑDS ≈ 0.04 ×Q3 /r =

= 0.04 ׅ…….  / ………. = ………. thousand US dollars.

The annual expenses for fuel in case of vessel operation at the fishing ground are equal to

. =

= (………. × ………. + ………. × ……….) × ………. = ………. thousand US dollars.

The annual expenses for supply are equal to

ÑSUP ≈ 0.07 × ÑFL ≈ 0.07 × ……….. = …………. thousand US dollars.

The general value of operation expensesÑ3for the fishing vessel used as a processing refrigerator without including depreciation charges is determined by the summation of the components with the account recommendations concerning grouping of components and is equal

Ñ3 = (ÑCR+ÑFED+ÑEXP+ÑSOC) + (ÑMS+ÑG+ÑMM+ÑDS) +ÑFL+ÑSUP +ÑRM =

= ………..+ ………..+ ………..+ ………..+ ………..= ……….. thousand US dollars.

For a considered variant of vessel operation when the fresh fish is not trawled (catched) by a vessel but is only processed and transferred to cargo vessels, and the fresh fish is received from the trawling (catching) vessels, the average price of the fish products of prevailing kinds m, related to the income of the evaluated vessel, is roughly equal to m = ………. thousand US dollars / tonne (that is approximately 50 % of the production price of the frozen processed fish in case of autonomous marine fishing ground as it is offered to accept in given task) which in case of production transfer in the sea for transportation to the port is set ………. thousand US dollars / tonne, see article (B).
           The other part of the income per a unit of mass of processed fish products is redistributed to the fishing vessels delivering fresh fish.
           The annual income is determined as:

I3 =Q3× m= ……….  × ………. = ………. thousand US dollars.

The capitalization rate is equal to R= ………. %.
           By the net operating income capitalization method the value of technically valid for marine operation and equipped vessel for a variant of use as a processing refrigerator at the fishing ground, determined on __________  ______, 20___, is

.=

= (…………. – ………….) / (………. + 0.02 + 0.015) = ………. thousand US dollars.

The net operating income for the given variant of vessel operation is equal to

.= ………. – ………. = ………. thousand US dollars.

For the operation of technically valid for marine operation and equipped fishing vessel, the stock of working assets OÑ3for the advance payments of operation costs is required.
           The requirement for the replenishment of the working assets is equal

OÑ3 Ñ3×TRF/TEXP = ……….  × ………. / 330 = ………. thousand US dollars.

The market value of the evaluated vessel based on income approach, minus the required adjustment for the replenishment of the working assets (OÑ3 = ………. thousand US dollars) and after the deduction of eradicable physical depreciation (D1 ≈ ………. thousand US dollars) on __________  ______, 20___ is

MV3 – OÑ3 – D1 = ………… – ……..…. – ………. = ………. thousand US dollars.

The conclusion of fishing vessel evaluation based on income approach: the highest and the best use of the vessel with the given assumptions of calculation corresponds to the variant of vessel operation (to choose A, B or C) …………………………………………………………………………………………
           The maximal value of the vessel, estimated by the method of the net operating income capitalization is accepted in correspondence with the highest and the best use concept.
           The value of the fishing vessel, corresponding to a prospective variant of the highest and the best use, estimated based on income approach on __________  ______, 20___, is equal ……..…. thousand US dollars.

 

           Evaluation of fishing vessel based on comparable sales approach

The results of the marketing researches for the value estimation of the fishing vessel based on comparable sales approach are used in the form of statistical regressions of the fishing vessels at the pre–owned market.
           The net register tonnage is equal to NRT = ………… .
           According to the formula of statistical regression, the fishing vessel value with the account the vessel years t = ………… years on date of estimation when using the marketing researches data and the net register tonnage as the unit of comparison on __________  ______, 20___ is equal

. 
............... thousand US dollars.

The main engine power of fishing vessel is equal to Ne = …………  kW.
           According to the formula of statistical regression, the fishing vessel value with the account the vessel years t = ………… years on date of estimation when using the marketing researches data and the main engine power as the unit of comparison on __________  ______, 20___ is equal

.
. ........... thousand US dollars.

The index of area equal to the product of the vessel length over all by the breadth is equal to

L ×B = …………× ………… = …………… square meter.

By the formula of statistical regression, the fishing vessel value with the account the vessel years t=………… years on the date of estimation when using the marketing researches data and the index of area equal to the product of the vessel length over all by the breadth as the unit of comparison on __________  ______, 20___ is equal to

. 
. .......... thousand US dollars.

The average value of technically valid for marine operation fishing vessel when using the comparable sales approach and the marketing researches data on __________  ______, 20___ is equal to

MV = ………… × 1/3 + ………… × 1/3 + ………… × 1/3 =  …………  thousand US dollars.

When estimating based on comparable sales approach and using the marketing researches and statistical regressions the fishing vessel value is the calculation by the uniform database with the assumption about the equal importance influence of applied units on the vessel value.
          The vessel value based on comparable sales approach can be estimated by using of the analogues in accordance with its methodological definition under the Federal Standard ¹ 2 «The purpose of evaluation assignment and types of value (ÔÑÎ ¹ 2)», approved by the order ¹ 255 of Ministry of Economical Development of Russia July 20, 2007: the market value is the «most probable price …». The specified definition can be provided with the statistical calculations and the regressions formalization.
           At the same time the use of one or several isolated analogues for vessel evaluation based on comparable sales approach and introduction of adjustments to the value of each analogues’ does not precisely correspond to the evaluation under the Standard since there should be done statistical research and formalization of the regressions for the estimation of probabilistic nature of analogues’ values. It to the full extent concerns the estimation based on comparable sales approach of the vessels or other real assets of the marine company which are stereotype like the serial equipment in which relation the probabilistic nature of the separate analogues prices is proved by their stereotype feature.

 

 

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