Interim Financial Statements

Transcription

1 Interim Financial Statements KCA Deutag Alpha Limited For the three months ended 31 March 2017 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 6 1. Significant accounting policies Compliance with IAS Basis of preparation 6 2. Segment reporting 7 3. Net finance costs 7 4. Exceptional items 8 5. Reconciliation of net debt 8 6. Tangible fixed assets 9 7. Intangible assets Trade and other receivables Trade and other payables Cash generated from operating activities 11 Page 2 of 11

3 Consolidated income statement Note Sales Operating costs (219.0) (286.1) EBITDA Depreciation/Amortisation (35.7) (42.3) Operating profit (pre-exceptional) Exceptional items (including impairment) (3.5) Operating profit (post-exceptional) Net finance costs 3 (38.7) (39.9) Loss before tax (24.2) (14.5) Taxation (8.7) (14.5) Loss after tax (32.9) (29.0) Consolidated statement of changes in shareholder s equity Share capital Share premium Retained earnings Other reserves Total $m At 1 January (2,101.4) 2, Comprehensive income Loss for the period - - (32.9) - (32.9) Other comprehensive income Exchange differences on foreign operations Total other comprehensive income Total comprehensive (expense) income - - (32.9) 2.7 (30.2) Transactions with owners Dividend to minority shareholder - - (0.3) - (0.3) At 31 March (2,134.6) 2, As at 31 December (2,101.4) 2, Page 3 of 11

4 Consolidated balance sheet Audited Q Note $m ASSETS Non-current assets Property, plant and equipment Goodwill Intangible assets Investments Deferred tax assets Financial assets - derivative financial instruments , , ,505.4 Current assets Inventories and work-in-progress Trade and other receivables Amounts owed by parent company Financial assets - derivative financial instruments Cash at bank Total assets 1, , ,035.7 Liabilities Current liabilities Bank overdraft (0.1) (7.3) (19.5) Trade and other payables 9 (253.6) (285.2) (242.8) Tax liabilities (36.2) (37.3) (35.1) Financial liabilities - derivative financial instruments (0.4) (0.5) (0.1) Financial liabilities - borrowings (22.1) (21.2) (22.1) Provisions and other payables (1.6) (1.5) (1.7) (314.0) (353.0) (321.3) Non-current liabilities Deferred income (29.4) (31.1) (32.5) Financial liabilities - borrowings (1,254.3) (1,268.4) (1,257.0) Amounts owed to parent company (168.3) (145.8) (167.1) Deferred tax liabilities (43.9) (48.8) (45.1) Retirement benefit obligations (129.9) (130.2) (127.1) Provisions and other non-current liabilities (3.6) (3.4) (3.5) (1,629.4) (1,627.7) (1,632.3) Total liabilities (1,943.4) (1,980.7) (1,953.6) Net assets Capital and reserves Share capital Share premium reserve Other reserves 2, , ,169.3 Retained earnings (deficit) (2,134.6) (2,021.6) (2,101.4) Total shareholder s funds Page 4 of 11

5 Consolidated cash flow statement Cash flows from operating activities Cash generated from operations Tax paid (8.5) (12.3) Net cash inflow from operating activities Cash flows from investing activities Capital expenditure (6.4) (63.3) Proceeds from sale of property, plant and equipment Purchase of intangible assets (0.4) (0.7) Other investments - (0.3) Interest received Net cash in (out) flow from investing activities (1.2) (6.3) Cash flows from financing activities Bank loan drawdowns/(repayments) (5.7) 75.4 Interest paid, including capitalised interest (14.9) (14.4) Finance lease payments (0.9) (0.7) Dividend to minority shareholders (0.3) - Net cash in (out) flow from financing activities (21.8) 60.3 Effect of foreign exchange rate changes on cash and bank overdrafts (2.6) 2.5 Net cash in (out) flow (12.7) Cash and cash equivalents at start of period (2.1) Cash and cash equivalents at end of period 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 2016, 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 2016 consolidated financial statements. Page 6 of 11

7 2. Segment reporting In 2017 KCA Deutag had 4 Business Units. Following the gradual reduction in significance of our mobile offshore drilling units to our overall business, and the transition of day to day management of the residual activities to Platform Services, the results of the mobile offshore drilling units are now combined with the Platform Services business and now reported as Offshore Services. Revenues Land Drilling Bentec Offshore Services RDS Corporate costs/other Elimination on consolidation (2.0) (4.8) GROUP TOTAL EBITDA (pre-exceptional) Land Drilling Bentec Offshore Services RDS Corporate costs/other (5.1) (4.8) Elimination on consolidation1 - (0.2) GROUP TOTAL Eliminations on consolidation principally relate to profits generated by Bentec on sales to Land Drilling and to support the Group s capital expenditure programme. 3. Net finance costs Interest payable to immediate parent company (5.4) (4.8) Interest payable on bank borrowings (5.8) (5.8) Interest payable on Senior Secured Notes (18.8) (18.8) Finance costs on finance leases (0.2) (0.2) Amortisation of arrangement fees (2.2) (2.1) Amortisation of discount assets (1.3) (1.2) Other finance costs (4.2) (2.1) Finance costs (37.9) (35.0) Finance income Exchange (losses) gains (2.2) (5.1) Finance costs net (38.7) (39.9) Page 7 of 11

8 4. Exceptional items Reorganisation costs1 0.1 (3.4) Loss on disposal of Ben Loyal2 - (0.1) GROUP TOTAL 0.1 (3.5) 1 Reorganisation costs primarily relate to the Group s cost reduction, restructuring and redundancy expenditure. 2 The MODU business unit completed the sale of the Ben Loyal Jack-Up rig in December 2015 resulting in a loss on disposal. 5. Reconciliation of net debt Opening net debt (1,117.2) (1,215.7) Net cash in (out) flow (12.7) (Drawdown) / Repayment of debt 6.6 (74.7) Other non-cash movements (3.9) (1.3) Closing net debt per balance sheet (1,127.2) (1,165.5) Capitalised arrangement fees (25.8) (39.0) Closing net debt (1,153.0) (1,204.5) 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 Plant, machinery Drilling rigs and equipment and vehicles Total Cost At 1 January , ,606.8 Additions at cost Disposals - (4.2) - (4.2) Exchange adjustments At 31 March , ,612.3 Accumulated depreciation At 1 January Charge for the period Disposals - (4.2) - (4.2) Exchange adjustments At 31 March Net carrying amount At 31 March Net carrying amount At 31 December Page 9 of 11

10 7. Intangible assets Customer relationships and contracts Trade name Technology Total Cost At 1 January Additions at cost Exchange At 31 March Accumulated amortisation At 1 January Charge for the period Exchange At 31 March Net carrying amount At 31 March Net carrying amount At 31 December Trade and other receivables Trade receivables Other receivables Prepayments and accrued income Total Trade and other payables Trade payables Other tax and social security Other payables Accruals Payments received on account Deferred income Total Page 10 of 11

11 10. Cash generated from operating activities Loss for the period (32.9) (29.0) Adjustments for: Tax charge Depreciation Impairment of tangible fixed assets - - Amortisation of intangible assets Loss (gain) on sale of property, plant and equipment (0.1) (0.4) Net movement in provisions, other liabilities and retirement benefit obligations 0.8 (3.2) Net finance cost (Increase)/decrease in inventories and work in progress (4.9) 9.1 (Increase)/decrease in trade and other receivables (17.8) 32.1 (Decrease)/increase in trade and other payables (11.2) (20.5) Exchange differences from operating activities 4.4 (2.7) Cash generated from operating activities Page 11 of 11