Interim Financial Statements

Transcription

1 [Type text] Interim Financial Statements KCA Deutag Alpha Limited For the twelve months ended 31 December 2014 Page 1 of 11

2 Table of Contents Consolidated income statement... 3 Consolidated statement of changes in shareholder's equity... 3 Consolidated balance sheet... 4 Consolidated cash flow statement... 5 Notes to the quarterly financial statements Significant accounting policies Compliance with IAS Basis of preparation Segment reporting Net finance costs Exceptional items Reconciliation of net debt Tangible fixed assets Intangible assets Trade and other receivables Trade and other payables Cash generated from operating activities Assets and liabilities of disposal group held for sale Page 2 of 11

3 Consolidated income statement Q YTD Q YTD Q Q Note Sales 2 2, , Operating costs (1,796.2) (1,855.4) (464.8) (487.8) EBITDA Depreciation/Amortisation (200.4) (204.3) (49.1) (56.7) Operating profit (pre-exceptional) Exceptional items (including impairment) 4,6 (102.7) (134.3) (62.3) (126.5) Operating profit (post-exceptional) 11.6 (37.4) (40.0) (74.4) Net finance costs 3 (148.5) (156.8) (28.6) (38.3) Profit (loss) before tax (136.9) (194.2) (68.6) (112.7) Taxation (36.7) (16.4) (5.8) 16.0 (Loss) after tax (173.6) (210.6) (74.4) (96.7) Consolidated statement of changes in shareholder s equity Share capital Share premium Retained earnings Other reserves Total $m At 1 January (1,647.0) 1, Comprehensive income (expense) Loss for the period - - (173.6) - (173.6) Other comprehensive income (expense) Exchange differences on foreign operations (11.4) (11.4) Actuarial losses on defined benefit plans - - (35.4) - (35.4) Total other comprehensive income (expense) - - (35.4) (11.4) (46.8) Total comprehensive income (expense) - - (209.0) (11.4) (220.4) Transactions with owners Capital contribution At 31 December (1,856.0) 1, At 31 December (1,647.0) 1, Page 3 of 11

4 Consolidated balance sheet Q Q Note $m $m Assets Non-current assets Property, plant and equipment 6 1, ,048.4 Goodwill Intangible assets Investments Deferred tax assets , ,780.6 Current assets Inventories and work-in-progress Trade and other receivables Amounts owed by parent company Financial assets - derivative financial instruments Cash, cash equivalents and other deposits Assets of disposal group classified as held for sale Total assets 2, ,584.0 Liabilities Current liabilities Bank overdraft (34.2) (21.6) Trade and other payables 9 (370.8) (383.5) Tax liabilities (46.9) (49.9) Financial liabilities - derivative financial instruments (0.1) - Financial liabilities - borrowings (21.9) (5.2) Provisions and other payables (1.1) (3.4) (475.0) (463.6) Non-current liabilities Deferred income (46.8) - Financial liabilities - borrowings (1,202.2) (1,259.8) Amounts owed to parent company (342.1) (478.9) Deferred tax liabilities (61.4) (66.4) Retirement benefit obligations (150.9) (132.3) Provisions and other non-current liabilities (4.1) (4.8) (1,807.5) (1,942.2) Liabilities of disposal group classified as held for sale 11 - (11.7) Total liabilities (2,282.5) (2,417.5) Net assets Capital and reserves Share capital - - Share premium reserve Other reserves 1, ,799.3 Retained earnings (deficit) (1,856.0) (1,647.0) Total shareholder s funds Page 4 of 11

5 Consolidated cash flow statement Q Q Q Q YTD YTD Note Cash flows from operating activities Cash generated from operations Tax paid (55.4) (36.4) (15.8) (11.5) Net cash inflow (outflow) from operating activities Cash flows from investing activities Capital expenditure (201.8) (127.1) (53.4) (26.5) Proceeds from sale of property, plant and equipment (1.1) Purchase of intangible assets (5.7) (5.3) (2.4) (2.5) Other investments Interest received Exchange differences arising on investing activities (0.8) Net cash (outflow) inflow from investing activities (160.4) (77.8) (26.3) (30.5) Cash flows from financing activities Bank loan drawdowns (repayments) (712.0) (465.0) New Senior Secured notes (net of original issue discount) Arrangement fees paid (20.8) (24.7) - - Interest paid, including capitalised interest (108.6) (93.8) (47.3) (41.9) New Finance leases - Sale and leaseback Finance lease payments (4.1) (7.8) 0.2 (1.8) Exchange differences arising on financing activities (21.8) (12.4) (30.6) (12.0) Net drawdown (repayment) of borrowings (106.1) (88.3) (62.7) (55.7) Equity injection from (repaid to) parent Net cash (used in) generated from financing activities (106.1) (29.3) (62.7) (55.7) Effect of foreign exchange rate changes on cash and bank overdrafts Net cash in (out) flow Cash and bank overdrafts at start of period (23.3) (4.8) (57.2) Cash and bank overdrafts at end of period Includes $0.3 million of cash held by disposal group classified as held for sale at 31 December Page 5 of 11

6 Notes to the Quarterly Financial Statements 1. Significant Accounting Policies 1.1 COMPLIANCE WITH IAS 34 These condensed quarterly consolidated financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting. They do not contain all the disclosures required for annual financial statements and should therefore be read in conjunction with the Group s annual financial statements for the year ended 31 December 2014, prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. 1.2 BASIS OF PREPARATION General principle The preparation of these condensed quarterly financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group s accounting policies. The areas involving a higher degree of judgement, complexity or areas where assumptions and estimates are significant to the condensed quarterly consolidated financial statements are disclosed in Note Accounting estimates and judgements Accounting estimates and underlying assumptions are based on past experience and other factors considered reasonable under the circumstances. They serve as the basis for any judgement required for determining the carrying amounts of assets and liabilities when such amounts cannot be obtained directly from other sources. Actual amounts may differ from these estimates. The main sources of uncertainty relating to estimates used to prepare the quarterly consolidated financial statements were the same as those described in the full year 2014 consolidated financial statements. Page 6 of 11

7 2. Segment reporting Q YTD Q YTD Q Q Revenues Platform services RDS Land Drilling MODUs Bentec Central overheads (0.7) Elimination on consolidation (121.5) (26.6) (37.0) (4.6) GROUP TOTAL 2, , Q YTD Q YTD Q Q EBITDA (pre-exceptional) 1 Platform services RDS Land Drilling MODUs Bentec Central overheads (37.8) (26.7) (17.7) (4.2) Elimination on consolidation GROUP TOTAL EBITDA by segment for 2013 has been represented to reallocate support costs which were previously shown as central overheads (such as HR, Supply Chain and IT costs) to the operational business segments figures are presented on the same basis. 2 Brunei Land Rig has been re-classified from MODUs to Land Drilling to be consistent with statutory accounts segmentation. 3. Net finance costs Q YTD Q YTD Q Q Interest payable to immediate parent company (16.1) (14.1) (4.2) (3.7) Interest payable on bank borrowings (32.5) (63.2) (7.2) (9.8) Interest payable on Senior Secured Notes (65.3) (30.9) (18.9) (11.5) Finance costs on finance leases (3.0) (1.4) (1.8) (1.4) Less amounts included in the cost of property, plant and equipment (6.7) Amortisation of arrangement fees (10.8) (16.8) (2.1) (3.9) Amortisation of discount assets (3.8) (2.1) (1.0) (0.8) Write off of arrangement fees (29.6) (21.1) - - Other finance costs (7.0) (1.5) (0.5) (1.2) Finance costs (161.9) (149.0) (34.8) (39.0) Finance income Exchange gains (losses) 12.7 (8.7) Finance costs - net (148.5) (156.8) (28.6) (38.3) Page 7 of 11

8 4. Exceptional items Q Q Q Q YTD YTD Libya unrest Reorganisation costs 2 (4.3) (11.6) (2.8) (3.9) Impairment of Tender Barges - Inventory write-down 3 (3.7) (9.0) - (9.0) Impairment of Tender Barges - disposal costs 4 (4.7) (2.5) (0.6) (2.5) Refinancing & others 5 (0.7) (1.6) (0.6) (0.9) Claim in respect of pre-acquisition GTB items (4.3) 2.3 (4.3) Libya asset write-down 7 (12.5) GROUP TOTAL (22.4) (28.4) (1.5) (20.6) 1 During 2013, fire insurance proceeds of $3.3 million were received related to prior period claims following a warehouse fire, and were partly offset by a $2.7 million loss on the disposal of a Libyan subsidiary. 2 Reorganisation costs includes $1.5 million in relation to the Group s business efficiency project announced in 2012 and include rationalisation, redundancy expenditure and further specific business restructuring costs of $2.8 million. 3 Arising from the anticipated disposal of the Tender Barges business in 2013, exceptional cost of $9.0 million had been recorded to write down the carrying value of the inventory to its realisable value. During 2014, a further exceptional cost of $3.7 million was recorded to write down the carrying value of the Tender Barges inventory to its realisable value. 4 Also arising from the disposal of the Tender Barges business, a provision of $2.5 million was recognised in 2013 for the costs of disposal of the Barges. During 2014, further disposal costs of $4.7 million were recognised. 5 Other non-recurring costs related to legal and related expenses for business refinancing and the disposal of the Ben Avon rig. 6 Provision was made during 2013 for a customer claim relating to pre-acquisition items associated with the Tender Barges business acquired in During 2014, claims were re-evaluated and resulted in a release of $3.5 million which was no longer required, which included the release of $2.3m contingent consideration in relation to the acquisition of the Tender Barges business on 2 August 2011 of $8.0 million. 7 Write down of asset values in Libya as a result of ongoing political unrest and a decision to cease our operations in Libya. The write-down included inventories of $8.0 million and trade receivables and other assets of $4.5 million. Page 8 of 11

9 5. Reconciliation of net debt Q YTD Q YTD Q Q Opening net debt (1,157.5) (1,130.4) (1,216.9) (1,219.0) Net cash in (out) flow Net cash generated from (used in) financing activities (24.3) (17.9) (15.2) 1.6 Other non-cash movements (34.8) (40.0) 3.2 (4.8) Closing net debt per balance sheet (1,196.1) (1,157.5) (1,196.1) (1,157.5) Capitalised arrangement fees (53.0) (72.6) (53.0) (72.6) Closing net debt (1,249.1) (1,230.1) (1,249.1) (1,230.1) 6. Tangible fixed assets Land and buildings long leasehold and freehold Drilling rigs and equipment Plant, machinery and vehicles Total Cost At 1 January , ,852.6 Additions at cost Disposals (2.7) (8.6) (1.3) (12.6) Exchange adjustments (0.3) (33.4) (0.8) (34.5) At 31 December , ,063.6 Accumulated depreciation At 1 January Charge for the period Impairment charge for the period Disposals (0.5) (6.8) (1.0) (8.3) Exchange adjustments (0.2) (20.2) (0.7) (21.1) At 31 December ,013.9 Net carrying amount At 31 December ,049.7 Net carrying amount At 31 December , Includes capitalised interest of $6.2 million and two Land rigs transferred into the Group at no cash cost with a book value of $49 million. Page 9 of 11

10 7. Intangible assets Customer relationships and contracts Trade name Technology Total Cost At 1 January Additions at cost At 31 December Accumulated amortisation At 1 January Charge for the period At 31 December Net carrying amount At 31 December Net carrying amount At 31 December Trade and other receivables Q Q $m $m Trade receivables Other receivables Prepayments and accrued income Transferred to disposal group held for sale (Note 11) - (4.1) Total Trade and other payables Q Q $m $m Trade payables Other tax and social security Other payables Accruals Payments received on account Deferred income Transferred to disposal group held for sale (Note 11) - (11.7) Total Page 10 of 11

11 10. Cash generated from operating activities Q Q Q Q YTD YTD (Loss) profit for the period (173.6) (210.6) (74.4) (96.7) Adjustments for: Tax charge (credit) (16.0) Depreciation Impairment of tangible fixed assets Amortisation of intangible assets Amortisation of deferred costs (Gain) loss on sale of property, plant and equipment (0.4) (0.7) Gain on sale of investment (1.0) - (1.0) - Net movement in provisions, other liabilities and retirement benefit obligations (6.0) 3.5 (3.7) 2.2 Net finance cost Share of associates post tax result (3.2) (0.3) (3.2) (0.5) (Increase) decrease in inventories and work in progress (3.9) (6.0) (Increase) decrease in trade and other receivables 39.3 (100.2) Increase (decrease) in trade and other payables 25.2 (0.5) (1.9) (0.3) Cash generated from operating activities Assets and liabilities of disposal group held for sale Q Q $m $m Property, plant and equipment Inventories Trade and other receivables (Note 8) Cash and cash equivalents Total assets Trade and other payables (Note 9) - (11.7) Total liabilities - (11.7) The above table represents the book value of certain assets and liabilities within the MODUs business which were held for sale. The assets held for sale at the 31 st of December 2013 were sold during 2014 to two separate parties and resulted in impairment charges of $11.6 million in relation to Property, Plant & Equipment and Exceptional charges including $ 3.7 million in relation to inventories and other charges of $4.7 million. Page 11 of 11