Interim Financial Statements

Transcription

1 [Type text] Interim Financial Statements KCA Deutag Alpha Limited For the nine months ended 30 September 2015 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 Note Sales 2 1, , Operating costs (1,062.0) (1,331.4) (329.0) (446.5) EBITDA Depreciation/Amortisation (144.1) (151.3) (48.7) (50.7) Operating profit (pre-exceptional) Exceptional items (including impairment) 4 (4.2) (40.4) (0.6) (21.3) Operating profit (post-exceptional) Net finance costs 3 (93.5) (119.9) (38.5) (30.5) Profit (loss) before tax (31.0) (68.3) (18.3) (29.0) Taxation (32.4) (30.9) (9.9) (7.8) (Loss) after tax (63.4) (99.2) (28.2) (36.8) Consolidated statement of changes in shareholder s equity Share capital Share premium Retained earnings Other reserves Total $m At 1 January (1,856.0) 1, Comprehensive income (expense) Loss for the period - - (63.4) - (63.4) Other comprehensive income (expense) Exchange differences on foreign operations (9.0) (9.0) Non-controlling interest (25.0) (25.0) Actuarial losses on defined benefit plans Total other comprehensive income (expense) (34.0) (34.0) Total comprehensive income (expense) - - (63.4) (34.0) (97.4) Transactions with owners Capital contribution At 30 September (1,919.4) 1, At 30 September (1,746.2) 1, Page 3 of 11

4 Consolidated balance sheet Audited Q Q Q Note $m $m $m Assets Non-current assets Property, plant and equipment 6 1, , ,049.7 Goodwill Intangible assets Investments Deferred tax assets , , ,775.6 Current assets Inventories and work-in-progress Trade and other receivables Financial assets - derivative financial instruments Cash, cash equivalents and other deposits Assets of disposal group classified as held for sale Total assets 2, , ,428.6 Liabilities Current liabilities Bank overdraft (40.4) (45.7) (34.2) Trade and other payables 9 (310.9) (382.1) (370.8) Tax liabilities (46.0) (48.0) (46.9) Financial liabilities - derivative financial instruments (0.9) (0.1) (0.1) Financial liabilities - borrowings (6.2) (8.2) (21.9) Provisions and other payables (0.7) (2.5) (1.1) (405.1) (486.6) (475.0) Non-current liabilities Deferred income (39.7) (49.5) (46.8) Financial liabilities - borrowings (1,204.9) (1,203.9) (1,202.2) Amounts owed to parent company (354.2) (537.0) (342.1) Deferred tax liabilities (54.1) (50.5) (61.4) Retirement benefit obligations (140.7) (123.7) (150.9) Provisions and other non-current liabilities (3.8) (3.9) (4.1) (1,797.4) (1,968.5) (1,807.5) Liabilities of disposal group classified as held for sale (7.8) - Total liabilities (2,202.5) (2,462.9) (2,282.5) Net assets Capital and reserves Share capital Share premium reserve Other reserves 1, , ,987.9 Retained earnings (deficit) (1,919.4) (1,746.2) (1,856.0) 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 (35.9) (39.6) (11.4) (9.8) Net cash inflow (outflow) from operating activities Cash flows from investing activities Capital expenditure (97.7) (148.4) (21.1) (65.8) Proceeds from sale of property, plant and equipment Purchase of intangible assets (5.4) (3.3) (1.6) (2.4) Acquisition of non-controlling interest in subsidiary (25.0) Other investments 1.9 (0.9) Interest received Exchange differences arising on investing activities Net cash (outflow) inflow from investing activities (103.8) (134.2) (12.6) (54.0) Cash flows from financing activities Bank loan drawdowns (repayments) (17.8) (65.2) (0.9) (4.1) Interest paid, including capitalised interest (75.0) (61.3) (12.6) (7.2) Finance lease payments (2.5) (4.3) (0.7) (1.4) Exchange differences arising on financing activities (11.2) 12.1 (13.3) 6.1 Net drawdown (repayment) of borrowings (106.5) (118.7) (27.5) (6.6) Capitalised debt issuance costs - (24.6) Net cash (used in) generated from financing activities (106.5) (143.3) (27.5) (6.5) Effect of foreign exchange rate changes on cash and bank overdrafts (3.3) (14.3) 1.2 (8.4) Net cash in (out) flow (17.8) (112.3) 6.8 (13.2) Cash and bank overdrafts at start of period Cash and bank overdrafts at end of period 10.2 (4.8) 10.2 (4.8) 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 interim consolidated financial statements were the same as those described in the full year 2014 consolidated financial statements Specific issues concerning the preparation of interim financial statements For the purpose of preparing the Group s condensed interim consolidated financial statements, the following calculations and estimates are applied in addition to the recognition, measurement and presentation rules described in note 1.2.2: - The current and deferred tax charge for the period is calculated by applying the estimated average annual tax rate for the current fiscal year to the three months pre-tax income for each entity or tax group; and - Expenses relating to pensions and other post-employment benefit obligations are estimated based on the prorate temporis amount expected for the full year, except where specific events occur which have a material impact on the consolidated financial statements, in which case adjustments are made. Page 6 of 11

7 2. Segment reporting Revenues Platform services RDS Land Drilling MODUs Bentec Corporate costs/other Elimination on consolidation (93.9) (84.5) (18.4) (40.0) GROUP TOTAL 1, , EBITDA (pre-exceptional) Platform services RDS Land Drilling MODUs Bentec Corporate costs/other (19.1) (20.1) (6.5) (8.2) Elimination on consolidation (1.4) (2.6) - (1.5) GROUP TOTAL Net finance costs Interest payable to immediate parent company (13.7) (11.9) (4.8) (4.2) Interest payable on bank borrowings (18.3) (25.3) (6.0) (6.0) Interest payable on Senior Secured Notes (56.5) (46.4) (18.8) (18.8) Finance costs on finance leases (1.2) (1.2) (0.4) (0.5) Less amounts included in the cost of property, plant and equipment Amortisation of arrangement fees (6.2) (8.7) (2.1) (2.0) Amortisation of discount assets (3.2) (2.8) (1.1) (1.0) Write off of arrangement fees - (29.6) - - Other finance costs (3.5) (6.5) (1.1) (1.1) Finance costs (98.9) (127.1) (33.1) (32.5) Finance income Exchange gains (losses) (5.6) 1.9 Finance costs net (93.5) (119.9) (38.5) (30.5) Page 7 of 11

8 4. Exceptional items Reorganisation costs 1 (3.9) (1.5) (2.3) (0.4) Impairment of Tender Barges - disposal costs 2 - (19.4) - - Refinancing & others 3 (0.8) 1.0 (0.2) (0.4) Ben Loyal leg incident insurance excess 4 (1.7) - - Libya asset write downs (20.5) 1.9 (20.5) GROUP TOTAL (4.2) (40.4) (0.6) (21.3) 1 Reorganisation costs relate to redundancy expenditure 2 Asset write downs and provision for working capital settlement in respect of the disposal of the Tender Barges business 3 Legal and related expenses for business refinancing/other non-recurring costs 4 Insurance excess and other costs relating to Ben Loyal leg following rapid penetration incident 5 Write down of assets in Libya following political unrest and decision to exit the country, offset by amounts later recovered 5. Reconciliation of net debt Opening net debt (1,196.1) (1,157.5) (1,208.1) (1,205.9) Net cash in (out) flow (17.8) (112.3) 6.8 (13.2) (Drawdown) / Repayment of debt Other non-cash movements (7.3) (16.6) (1.2) (3.3) Closing net debt per balance sheet (1,200.9) (1,216.9) (1,200.9) (1,216.9) Capitalised arrangement fees (43.8) (56.0) (43.8) (56.0) Closing net debt (1,244.7) (1,272.9) (1,244.7) (1,272.9) KCA Deutag Alpha Limited, their affiliates or other related parties may or may not opportunistically purchase debt in one or more series of open-market transactions from time to time. Page 8 of 11

9 6. Tangible fixed assets Land and buildings long leasehold and freehold Drilling rigs and equipment Plant, machinery and vehicles Total Cost At 1 January , ,063.6 Additions at cost Disposals (1.4) (24.1) (0.2) (25.7) Exchange adjustments (0.1) (15.9) (0.5) (16.5) At 30 September , ,121.3 Accumulated depreciation At 1 January ,013.9 Charge for the period Disposals (1.3) (22.2) (0.2) (23.7) Exchange adjustments (0.1) (11.9) (0.2) (12.2) At 30 September , ,107.6 Net carrying amount At 30 September ,013.7 Net carrying amount At 31 December ,049.7 Page 9 of 11

10 7. Intangible assets Customer relationships and contracts Trade name Technology Total Cost At 1 January Additions at cost At 30 September Accumulated amortisation At 1 January Charge for the period At 30 September Net carrying amount At 30 September 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) - (2.4) 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) - (7.8) Total Page 10 of 11

11 10. Cash generated from operating activities Q Q Q Q YTD YTD (Loss) profit for the period (63.4) (99.2) (28.2) (36.8) Adjustments for: Tax charge (credit) Depreciation Impairment of tangible fixed assets Amortisation of intangible assets Amortisation of deferred costs (Gain) loss on sale of property, plant and equipment (2.1) (1.2) (0.1) (0.3) Net movement in provisions, other liabilities and retirement benefit obligations (2.6) (2.3) 0.5 (2.1) Net finance cost (Increase) decrease in inventories and work in progress 9.9 (25.6) (Increase) decrease in trade and other receivables (1.3) Increase (decrease) in trade and other payables (80.3) 27.1 (56.3) (14.1) Cash generated from operating activities Assets and liabilities of disposal group held for sale Q Q $m $m Property, plant and equipment Trade and other receivables (Note 8) Cash and cash equivalents Total assets Trade and other payables (Note 9) - (7.8) Total liabilities - (7.8) The above table represents the book value of certain assets and liabilities within the MODUs business which were held for sale in Q The assets held for sale were sold during 2014 to two separate parties. Page 11 of 11