PERISAI PETROLEUM TEKNOLOGI BHD (Company No.: 632811-X) CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE QUARTER ENDED 31 DECEMBER Individual Period Cumulative Period To Date Period Note ember ember ember ember RM'000 RM'000 RM'000 RM'000 (Unaudited) (Unaudited) (Unaudited) (Audited) Continuing operations Revenue A8 55,253 55,767 214,784 122,133 Direct cost (42,002) (40,695) (172,194) (94,657) Gross profit 13,251 15,072 42,590 27,476 Other income 679 4,039 18,115 8,361 Operating expenses (7,705) (6,152) (37,037) (30,239) Provision for impairment on plant and equipment (689,913) - (689,913) - Finance costs (13,055) (9,020) (47,656) (24,254) Share of results of associates, net of tax 803 837 3,838 3,938 Share of results of joint ventures before impairment, net of tax 12,230 12,385 57,734 42,583 Share of impairment on plant and equipment of joint ventures (35,823) - (35,823) - Profit/(loss) before tax B1 (719,533) 17,161 (688,152) 27,865 Tax expense B5 (223) (40) (834) (607) Profit/(loss) for the year, net of tax (719,756) 17,121 (688,986) 27,258 Profit/(loss) attributable to: Owners of the Company (724,585) 13,522 (706,319) 13,726 Non-controlling interests 4,829 3,599 17,333 13,532 (719,756) 17,121 (688,986) 27,258 Earnings per share ("EPS") attributable to owners of the company (sen) Sen Sen Sen Sen Basic EPS B11(a) (60.72) 1.13 (59.20) 1.18 Diluted EPS B11(b) (60.60) 1.12 (59.13) 1.17 The unaudited consolidated income statement should be read in conjunction with the audited financial statements for the year ended 31 December and the accompanying explanatory notes.
PERISAI PETROLEUM TEKNOLOGI BHD (Company No.: 632811-X) UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE QUARTER ENDED 31 DECEMBER Individual Period To Date Cumulative Period Period ember ember ember ember RM'000 RM'000 RM'000 RM'000 (Unaudited) (Unaudited) (Unaudited) (Audited) Profit/(loss) for the year (719,756) 17,121 (688,986) 27,258 Items that may subsequently be classified to profit or loss: Foreign currency translation differences arising during the financial year (115,044) 42,687 236,553 85,878 Reclassified to profit or loss on repayment of intercompany balances 988 3,363 (1,995) 3,363 Cash flow hedged - fair value changes during the year 1,527 (2,833) (5,854) (3,246) - reclassified adjustments for amounts recognised in profit or loss (444) 2,174 3,890 2,500 Total comprehensive income/(loss) (832,729) 62,512 (456,392) 115,753 Attributable to: Owners of the Company (833,734) 62,742 (503,119) 94,524 Non-controlling interests 1,005 (230) 46,727 21,229 (832,729) 62,512 (456,392) 115,753 The unaudited consolidated comprehensive income should be read in conjunction with the audited financial statements for the year ended ember and the accompanying explanatory notes.
PERISAI PETROLEUM TEKNOLOGI BHD (Company No.: 632811-X) CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER As At End Of As At End Of Previous Current Financial Year ember ember Note RM'000 RM'000 (Unaudited) (Audited) Non-current assets Plant and equipment A9 1,348,104 1,403,240 Intangible assets 75 75 Investment in associates 2,419 1,655 Investment in joint ventures 720,519 567,167 Prepayment B8-324,475 2,071,117 2,296,612 Current assets Trade receivables 67,306 48,346 Other receivables, deposits and prepayment 95,390 75,519 Tax recoverable 311 203 Cash and bank balances 38,000 94,108 201,007 218,176 TOTAL ASSETS 2,272,124 2,514,788 EQUITY AND LIABILITIES Equity attributable to owners of the Company Share capital 120,461 119,313 Share premium 640,108 638,407 Treasury shares (231) (231) Retained earnings/(accumulated losses) B13 (406,621) 299,698 Other reserves 323,897 112,896 Equity attributable to owners of the Company 677,614 1,170,083 Non-controlling interests 167,599 121,633 Total equity 845,213 1,291,716 Non-current liabilities Loans and borrowings B7 824,291 1,022,990 Other payables 10,519 8,566 Derivatives liability - 4,690 834,810 1,036,246 Current liabilities Trade payables 13,734 15,667 Other payables and accruals 50,336 35,561 Loans and borrowings B7 517,204 135,088 Derivatives liability 10,544 - Tax payable 283 510 592,101 186,826 Total liabilities 1,426,911 1,223,072 TOTAL EQUITY AND LIABILITIES 2,272,124 2,514,788 Net assets per share attributable to owners of the parent (RM) 0.56 0.98 The unaudited consolidated financial position should be read in conjunction with the audited financial statements for the year ended ember and the accompanying explanatory notes.
PERISAI PETROLEUM TEKNOLOGI BHD (Company No.: 632811-X) UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER <---------------Attributable to Equity Holders of the Company---------------> Non-controlling Total <-------------- Non-distributable ----------->Distributable Interest equity Retained earnings/ Share Share Treasury Other (accumulated Note capital premium shares reserves losses) Sub-total RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 At 1 January (Audited) 108,453 486,025 (231) 22,738 285,972 902,957 100,404 1,003,361 Comprehensive income Profit for the financial year - - - - 13,726 13,726 13,532 27,258 Other comprehensive income Foreign currency translation differences - - - 81,545-81,545 7,697 89,242 Cash flow hedge - - - (747) - (747) - (747) Total comprehensive income for - - - 80,798 13,726 94,524 21,229 115,753 the year Transactions with owners Share options exercised 18 121 - - - 139-139 Share options granted under ESOS - - - 9,438-9,438-9,438 Shares issuance pursuant to private placement 10,842 155,041 - - - 165,883-165,883 Shares issuance expenses - (2,858) - - - (2,858) - (2,858) Transfer to share premium for share options exercised - 78 - (78) - - - - 10,860 152,382-9,360-172,602-172,602 At ember (Audited) 119,313 638,407 (231) 112,896 299,698 1,170,083 121,633 1,291,716 At 1 January (Audited) 119,313 638,407 (231) 112,896 299,698 1,170,083 121,633 1,291,716 Comprehensive income/(loss) Profit/(loss) for the financial year - - - - (706,319) (706,319) 17,333 (688,986) Other comprehensive income Foreign currency translation differences - - - 207,159-207,159 29,394 236,553 Cash flow hedge - - - (3,960) - (3,960) - (3,960) Total comprehensive income/(loss) for - - - 203,199 (706,319) (503,120) 46,727 (456,393) the year Transactions with owners Share options granted under ESOS - - - 7,802-7,802-7,802 Shares issuance pursuant to private placement 1,148 1,852 - - - 3,000-3,000 Shares issuance expenses - (151) - - - (151) - (151) Dividend paid to non-controlling interest - - - - - - (761) (761) 1,148 1,701-7,802-10,651 (761) 9,890 At ember (Unaudited) 120,461 640,108 (231) 323,897 (406,621) 677,614 167,599 845,213 The condensed unaudited consolidated statement of changes in equity should be read in conjunction with the audited financial statements for the year ended 31 December and the accompanying explanatory notes.
PERISAI PETROLEUM TEKNOLOGI BHD (Company No.: 632811-X) UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER Cash flow from operating activities 12-month ended ember ember RM'000 RM'000 (Unaudited) (Unaudited) Profit/(loss) before taxation (688,152) 27,865 Adjustment for : Impairment of trade receivables - 1,796 Depreciation of plant and equipment 75,258 47,034 Deposit written off 8 6 Gain on disposal of plant and equipment - (1,442) Plant and equipment written off 1 2 Provision for Impairment on plant and equipment 689,913 - Goodwill on acquisition of associate 7 - Net unrealised (gain)/loss on foreign exchange (12,367) (2,886) Share of results of associates (3,838) (3,938) Share of results of joint ventures (21,911) (42,583) Share options granted under Employees' share option scheme ("ESOS") 7,802 9,438 Interest expense 47,656 24,254 Interest income (170) (419) Operating profit before working capital changes 94,207 59,127 Changes in working capital : Change in receivables (2,573) (29,829) Dividend received 3,401 - Change in payables 3,172 30,764 Cash generated from operating activities 98,207 60,062 Interest paid (54,170) (29,602) Interest received 175 414 Tax paid (1,313) (392) Tax refunded 75 271 Net cash generated from operating activities 42,974 30,753 Cash flow from investing activities Subscription of shares in an associates - (40) Net cash inflow from the subscription share of associate 32 - Prepayment of plant and equipment (55,895) (229,705) Purchase of plant and equipment (2,789) (665,129) Proceed from disposal of plant and equipment - 1,540 Net advances (to)/from joint ventures (5,056) (26,567) Net cash used in investing activities (63,708) (919,901) Cash flow from financing activities Payment of hire purchase (115) (109) Net proceeds from shares issuance pursuant to private placement - Gross proceeds 3,000 165,883 - Share issuance expenses (151) (2,858) Proceeds from share issuance pursuant to ESOS - 139 Dividend paid (941) - Drawdown of loans and borrowings 52,935 834,125 Repayment of loans and borrowings (114,419) (73,334) Net cash from/(used) from financing activities (59,691) 923,846 Net increase/(decrease) in cash and cash equivalents during the year (80,425) 34,698 Effect of exchange rate changes 20,842 6,034 (59,583) 40,732 Cash and cash equivalents at beginning of year 94,108 53,376 Cash and cash equivalents at end of year * 34,525 94,108 * Cash and cash equivalents comprise : Cash and bank balances 38,000 94,108 Bank overdraft (3,475) - - 34,525 94,108 The condensed unaudited consolidated cash flow statement should be read in conjunction with the audited financial statements for the year ended ember and the accompanying explanatory notes.
NOTES TO THE ACCOUNTS PART A - EXPLANATORY NOTES PURSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARD ( MFRS ) 134 1. Basis Of Preparation The interim financial statements are unaudited and have been prepared in accordance with the requirements of MFRS 134: Interim Financial Reporting and paragraph 9.22 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad. The interim financial statements should be read in conjunction with the audited financial statements for the year ended ember. These explanatory notes attached to the interim financial statements provide an explanation of events and transactions that are significant to an understanding of the changes in the financial position and performance of Perisai Petroleum Teknologi Bhd ( Perisai or the Company ) and its subsidiaries ( Group ) since the financial year ended ember. 2. Changes In Accounting Policies a) The Group adopted the following Amendments/Improvement to Standards effective as of 1 January :- Amendments/Improvement to MFRSs MFRS 1 First-time Adoption of Malaysian Financial Reporting Standards MFRS 2 Share-based Payment MFRS 3 Business Combinations MFRS 8 Operating Segments MFRS 13 Fair Value Measurement MFRS 116 Property, Plant and Equipment MFRS 119 Employee Benefits MFRS 124 Related Party Disclosures MFRS 138 Intangible Assets MFRS 140 Investment Property The adoption of the above Amendments to MFRSs did not have any material effect on the financial statements of the Group. b) At the date of this report, the following new MFRs and Amendments/Improvements to MFRSs were issued but not yet effective and have not been applied by the Group: MFRS 9 Financial Instruments * MFRS 15 Revenue from Contracts with Customers ** MFRS 5 Non-current Asset Held for Sale and Discontinued Operations *** MFRS 7 Financial Instruments: Disclosures *** MFRS 10 Consolidated Financial Statements *** MFRS 11 Joint Arrangements *** MFRS 12 Disclosures of Interests in Other Entities *** MFRS 101 Presentation of Financial Statements *** MFRS 116 Property, Plant and Equipment *** MFRS 119 Employee Benefits *** MFRS 127 Separate financial statements *** MFRS 128 Investments in Associates and Joint Ventures *** MFRS 138 Intangible Assets *** MFRS 141 Agriculture *** *Effective for financial periods beginning on or after 1 January 2018 ** Effective for financial periods beginning on or after 1 January 2017 *** Effective for financial periods beginning on or after 1 January 2016 1
The Group will adopt the above new MFRS and Amendments/Improvements to MFRSs when it becomes effective in the respective financial periods. The adoption of the above mentioned amendments to MFRSs are not expected to have any material effect to the financial statements of the Group upon initial recognition, except MFRS 9 Financial Instruments and MFRS 15 Revenue from Contracts with Customers described below, for which the financial effects are still being assessed by the Group. (i) MFRS 9 Financial Instruments This final version of MFRS 9 replacing MFRS 139. MFRS 9 introduces a package of improvements which includes a classification and measurement model, a single forward-looking expected loss impairment model and a substantially-reformed approach to hedge accounting. MFRS 9 introduces an approach for classification of financial assets which is driven by cash flow characteristics and the business model in which an asset is held with two measurement at amortised cost or fair value. For impairment, MFRS 9 introduces expected-loss impairment model that will require more timely recognition of expected credit losses to reflect changes of credit risk of financial instruments. For hedge accounting, MFRS 9 introduces a substantially-reformed model for hedge accounting, with enhanced disclosures about risk management activity. (ii) MFRS 15 Revenue from Contracts with Customers The core principle of MFRS 15 is that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. MFRS 15 Revenue from Contracts with Customers established a new five-step model which will apply to recognition of revenue arising from contracts with customers. 3. Seasonal Or Cyclical Factors The Group s operations are not materially subject to any seasonal or cyclical factors except for severe weather conditions. 4. Unusual Items Due To Their Nature, Size Or Incidence There were no unusual items affecting assets, liabilities, equity, net income and cash flows during the financial year ended ember other than as disclosed in these interim financial statements. 5. Changes In Estimates There were no significant changes in estimates that had a material effect on the results for the financial year ended ember. 6. Debts And Equity Securities Save as disclosed below, there were no issuances, cancellations, repurchases, resale and repayments of debt and equity securities during the financial year ended ember : i. On 8 December, Perisai had implemented the Private Placement in tranches and had fixed the issue price of the first (1st) tranche comprising 5,482,000 Placement Shares at RM0.27369 per Placement Share. On 28 December, Perisai had fixed the issue price of the second (2nd) tranche comprising 6,000,000 Placement Shares at RM0.25 per Placement Share. ii. As at ember, 400,000 shares of RM0.10 each were held as treasury shares in accordance with the requirements of section 67A of the Companies Act, 1965. 2
7. Dividends Paid There were no dividends paid during the financial year ended ember. 8. Segmental Information Individual Period To Date Cumulative Period Period ember ember ember ember RM 000 RM 000 RM 000 RM 000 Segment Revenue Drilling 39,796 43,629 158,848 77,467 Production - - - - Marine vessels 15,457 12,138 55,936 44,666 Others - - - - Total revenue 55,253 55,767 214,784 122,133 Segment Results Drilling (971) 5,751 2,529 10,772 Production (9,758) (9,479) (36,710) (29,897) Marine vessels 9,379 7,035 33,697 27,932 Others Share of results in associates Share of results in joint (5,480) 803 632 837 (23,504) 3,838 (27,463) 3,938 ventures 12,230 12,385 57,734 42,583 Share of impairment on plant and equipment of joint ventures (35,823) - (35,823) - Provision for impairment on plant and equipment (689,913) - - (689,913) Total results (719,533) 17,161 (688,152) 27,865 9. Valuation Of Property, Plant and Equipment The Group did not revalue any plant and equipment during the financial year ended ember. As at ember, all property, plant and equipment were stated at cost less accumulated depreciation and provision for impairment. 10. Subsequent Events Save as disclosed below, there were no material events subsequent to the financial year ended 31 December. i. Perisai had fixed the issue price of the Placement Shares under the Private Placement as follows: Date Issue Price No of Placement Shares 4.2.2016 RM0.25 6,000,000 16.2.2016 RM0.25 6,000,000 18.2.2016 RM0.25 6,000,000 3
11. Changes In Composition Of The Group Save as disclosed below, there were no changes to the composition of the Group during the financial year ended ember. (a) On 15 September, the Company had subscribed an additional 22,500 ordinary shares of RM1.00 each in Larizz Energy Services Sdn Bhd ( Larizz Energy ) ( Subscription of Shares ) at a total cash consideration of RM22,500.00. Upon the Subscription of Shares, the Company s equity interest in Larizz Energy had increased from 40% to 51% resulted in Larizz Energy became a subsidiary of the Company. The remaining 49% of the enlarged issued and paid-up share capital of Larizz Energy is held by Datuk Zainol Izzet Bin Mohamed Izzet ( Datuk Izzet ), the Managing Director of Perisai. (b) On 13 October, Perisai Drilling Holdings Sdn Bhd and Perisai Production Holdings Sdn Bhd, both wholly-owned subsidiary companies of Perisai have each incorporated two (2) new wholly-owned subsidiary companies in Malaysia under the Companies Act 1965, the particulars of which are set out in the table below :- Name of Company Authorised Share capital Issued and Paid-up Share capital Perisai Drilling Operations Sdn Bhd RM400,000.00 divided into 400,000 ordinary shares of RM1.00 each RM2 divided into 2 ordinary shares of RM1.00 each Perisai Drilling Services Sdn Bhd RM400,000.00 divided into 400,000 ordinary shares of RM1.00 each RM2 divided into 2 ordinary shares of RM1.00 each Perisai Production Operations Sdn Bhd RM400,000.00 divided into 400,000 ordinary shares of RM1.00 each RM2 divided into 2 ordinary shares of RM1.00 each Perisai Production Services Sdn Bhd RM400,000.00 divided into 400,000 ordinary shares of RM1.00 each RM2 divided into 2 ordinary shares of RM1.00 each The incorporation of the abovementioned four (4) wholly-owned subsidiaries ( Incorporation ) is in furtherance to future strategic plans that the Perisai Group will undertake. 12. Changes In Contingent Liabilities Save as disclosed below, the Directors are not aware of any material contingent liabilities which, upon becoming enforceable, may have a material impact on the financial position of the Group during the financial year ended ember. Corporate Guarantee of RM493.9 million issued by the Group for banking facilities granted to its joint ventures. 13. Changes In Contingent Assets The Directors are not aware of any material contingent assets, which, upon becoming enforceable, may have a material impact on the profit or net assets value of the Group during the financial year ended 31 December. 4
14. Material Commitments Save as disclosed below, the Group is not aware of any material commitments incurred or known to be incurred by the Group which upon becoming enforceable may have a material impact on the profit or net asset value of the Group as at ember. RM Million Capital expenditure Approved and contracted for: Construction of two (2) jack-up drilling rigs 1,451 15. Significant Related Party Transactions Save as disclosed below, there were no significant related party transactions during the financial year ended ember. The recurrent related party transactions with the Group and the Company are as follows:- Individual Period Cumulative Period To Date Period ember ember ember ember RM 000 RM 000 RM 000 RM 000 Revenue Bareboat charter of vessels to Emas Offshore Pte. Ltd.* 4,327 3,598 15,657 14,192 Bareboat charter of vessels to Emas Offshore (M) Sdn. Bhd.* 11,130 76,554 40,279 30,473 Secondment of personnel to Victoria Production Services Sdn Bhd^ - 283 39 391 Expenses Vessel maintenance expenses charged by Emas Offshore Services (M) Sdn Bhd* - - - 235 Agency fee charged by Larizz Petroleum Services Sdn. Bhd.# 45 45 180 180 Agency fee charged by Larizz Energy Services Sdn. Bhd.# 45 30 172 75 Agency fee charged by Perisai Offshore Sdn. Bhd.# 28 28 111 111 *The transactions above involve Emas Offshore Pte Ltd, Emas Offshore (M) Sdn Bhd and Emas Offshore Services (M) Sdn Bhd which are indirect wholly-owned subsidiaries of EMAS Offshore Limited formerly known as EOC Limited ( EMAS Offshore ). EMAS Offshore and HCM Logistics Limited ( HCM ) are major shareholders of Perisai. Emas Offshore is a 72.5% subsidiary of Ezra Holding Limited ( Ezra ) whereas HCM is a wholly-owned subsidiary of Ezra. ^The transactions above involving Victoria Production Services Sdn Bhd, a Joint Venture between Perisai and EMAS. 5
#Agency fees charged by Larizz Petroleum Services Sdn Bhd ( LPSSB ), Larizz Energy Services Sdn Bhd ( LESSB ) and Perisai Offshore Sdn Bhd ( POSB ) is a recurrent related party transaction as Datuk Zainol Izzet Bin Mohamed Ishak ( Datuk Izzet ) is a substantial shareholder of LPSSB, LESSB and POSB. Datuk Izzet holds 60% equity interest in LPSSB, 49% equity interest in LESSB with effect from 15 September (Note 11) and 49% equity interest in POSB. He is also a director of Perisai and holds 5.45% equity interest in Perisai. 16. Fair Value Measurements All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, the lowest level input that is significant to the fair value measurement as a whole. (a) Level 1 fair value measurement are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities; (b) Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and (c) Level 3 fair value measurements are those derived from inputs for the asset or liability that are not based on observable market data (unobservable inputs). The following table provided the fair value measurement hierarchy of the Group s assets and liabilities: Liabilities measured at fair value Amount Level 1 Level 2 Level 3 RM 000 RM 000 RM 000 RM 000 Group Derivative financial instruments -cross currency interest rate swaps * 10,544-10,544 - There were no transfers between Level 1 and Level 2 during the year ended ember and the Group does not have any financial instruments classified as Level 3 as at ember. * The valuation technique used to derive the Level 2 is as disclosed in Note B15. 6
PART B - EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF THE MMLR 1. Performance Review For the financial year ended ember, the Group generated total revenue of RM214.78million, an increase of RM92.65million when compared to the amount of RM122.13million in the corresponding financial year ended ember. The increase was mainly due to a full 12 months of revenue generated from the jack-up drilling rig, Perisai Pacific 101 ( PP 101 ) for the financial year ended ember as compared to approximately 5 months in the previous financial year ended ember and higher conversion exchange rate. Loss before tax ( LBT ) from the financial year ended ember amounted to RM688.15million, a decrease of RM716.02million when compared to the profit before tax ( PBT ) amount of RM27.86million attained in the corresponding financial year ended ember. The decrease in PBT was due to provision for impairment on plant and equipment of approximately RM689.91million and RM35.82million at consolidated level and joint venture level respectively. Excluding the provision for impairment on plant and equipment, the Group generated profit before tax of RM37.58million for the financial ended ember Notwithstanding the impairment on the plant and equipment, the net asset per share of the Company is RM0.56 as at ember. For the current quarter ended ember, the Group generated total revenue of RM55.25million, a decrease of RM0.52million when compared to the amount of RM55.77million in the corresponding quarter ended ember. The decrease was mainly due to discount on charter rate given to client in the drilling segment for the financial quarter ended ember as compared to the previous financial quarter ended 31 December but mitigated by higher conversion exchange rate. Loss before tax ( LBT ) from the current quarter ended ember amounted to RM719.53million, a decrease of RM736.69million when compared to the PBT amount of RM17.16million attained in the corresponding quarter ended ember. The decrease in PBT was due to provision for impairment on plant and equipment as mentioned above. Excluding the provision for impairment on plant and equipment, the Group generated profit before tax of RM6.20million for the financial quarter ended ember. 2. Material Change in Profit Before Tax ( PBT ) In Comparison to the Preceding For the current financial quarter ended ember, the Group recorded a LBT of approximately RM719.53million against a PBT of RM14.19 million attained in the preceding quarter. The decrease in PBT was due to provision for impairment on plant and equipment. The Group generated a PBT of RM6.20million excluding the said provision. 7
3. Future Prospects Continuing depressed oil prices has caused uncertainty on the outlook for the demand for the oil and gas assets in the short to medium terms. The Group will remain cautious on its capital and cost management and enhance its operational efficiency while pursuing various opportunities with respect to the Rubicone, Enterprise 3 and drilling rigs. 4. Profit Forecast and Profit Guarantee The Group did not announce or disclose any profit forecast or profit guarantee in any public documents for the financial year ended ember. 5. Income Tax Expense Individual Period Cumulative Period To Date Period RM 000 RM 000 RM 000 RM 000 Based on result for the year - Current year provision - (Under)/overprovision for taxation in prior year (270) 47 (40) - (890) 56 (761) 154 (223) (40) (834) (607) The effective tax rate for the current quarter and financial year ended ember was lower than the statutory tax rate arising mainly from certain subsidiaries being subject to fixed tax rates under the Labuan Business Activity Tax Act, 1990. 6. Corporate Proposal (a) There were no corporate proposals announced but not completed as at the reporting date. (b) Status of Utilisation of Proceeds Macquarie Bank Limited ( Macquarie ) was granted call options with the right to exercise and be issued with up to 119,000,000 ordinary shares of RM0.10 each pursuant to the Call Option Agreement dated 24 November, 8
The proceeds raised during the private placement were approved for the following activities and status on the funds utilised as at 19 February 2016 are summarised below: Purpose Repayment of bank borrowings and/or capital investment for jack-up drilling rigs and MOPU Working capital: - Operational expenses for jackup drilling and MOPU Approved Utilisation RM Million Amount Utilised RM Million Amount Unutilised RM Million Expected Time Frame For The Full Utilisation 25.0 ( - ) 25.0 Within one (1) year 1.2 ( - ) 1.2 Within one (1) year - Finance cost 5.8 (0.1) 5.7 Within one (1) year - Management and 4.7 (2.2) 2.5 administrative expenses Estimated expenses relating to the Proposed Private Placement 0.3 (0.2) 0.1 Within one (1) month Total *37.0 (2.5) 34.5 * Total proceeds raised as at 19 February 2016 is RM7.5million. 7. Borrowings And Debt Securities The Group s borrowings and debt securities as at ember are as follows: Secured - Term loan - Revolving credit - Overdraft - Hire purchase Unsecured - MTN Short Term RM 000 84,567 52,935 3,476 120 376,106 Long Term RM 000 824,135 - - 156 - Total 517,204 824,291 The Group borrowings are denominated in the following currencies: Short Term RM 000 Equivalent Long Term RM 000 Equivalent Ringgit Malaysia 56,531 156 US Dollar SG Dollar 84,567 376,106 824,135 - Total 517,204 824,291 8. Prepayment Prepayment consists of the deposits paid for the design, construction, equipping, commissioning and delivery of the second (2 nd ) and third (3 rd ) jack up drilling rigs amounting to RM421.6million which was fully impaired in financial quarter ended ember. 9
9. Changes In Material Litigation There was no litigation for the financial year ended ember. 10. Dividends Payable There was no dividend declared for the financial year ended ember. 11. Earnings Per Share ("EPS") Basic earnings per share is calculated by dividing the profit/(loss) attributable to the owners of the Company by the weighted average number of ordinary shares in issue during the financial year, excluding treasury shares held by the Company. (a) Basic Earnings Per Share Individual Period Cumulative Period To Date Period RM 000 RM 000 RM 000 RM 000 Profit/(loss) attributable to owners of the Company net of tax (724,585) 13,522 (706,319) 13,726 Weighted average number of ordinary shares in issue ( 000) 1,193,266 1,193,125 1,193,120 1,163,891 Basic earnings per share (sen): (60.72) 1.13 (59.20) 1.18 (b) Diluted Earnings Per Share Individual Period Cumulative Period To Date Period RM 000 RM 000 RM 000 RM 000 Profit/(loss) attributable to owners of the company net of tax (724,585) 13,522 (706,319) 13,726 Weighted average number of ordinary shares in issue ( 000) 1,193,266 1,193,125 1,193,120 1,163,891 Effect of dilution ( 000) - Share options 2,500 9,453 1,356 9,453 Adjusted weighted average number of ordinary shares in issue and issuable ( 000) 1,195,766 1,202,578 1,194,476 1,173,344 Diluted earnings per share (sen): (60.60) 1.12 (59.13) 1.17 10
12. Auditors Report On Preceding Annual Financial Statements The auditors report on the latest audited financial statements was not qualified. 13. Realised and Unrealised Retained Earnings/Accumulated Losses As at As at ember ember Total retained earnings/(accumulated losses) RM 000 RM 000 - realised profit/(loss) (308,068) 289,364 - unrealised profit 12,367 19,494 (295,701) 308,858 Associates - realised profit/(loss) (15,299) (16,272) - unrealised profit/(loss) (473) 64 (15,772) (16,208) Joint ventures - realised profit 70,907 48,210 - unrealised profit/(loss) (331) 455 70,576 48,665 Less: Group consolidated adjustments (165,724) (41,617) Total Group retained earnings/(accumulated losses) as per unaudited consolidated financial statements (406,621) 299,698 14. Notes to Condensed Consolidated Statements of Comprehensive Income 3 months ember RM 000 Todate 12 months ember RM 000 Profit/(loss) before tax is arriving at after charging/(crediting): Interest income (39) (170) Other income (248) (1,229) Interest expenses 13,054 47,656 Goodwill written off - 8 Plant and equipment written off 1 1 Provision for impairment on plant and equipment 689,913 689,913 Depreciation and amortisation 20,688 75,258 Realised foreign exchange loss (999) (406) Unrealised foreign exchange (gain)/loss 4,260 (11,536) 11
15. Financial Instruments (a) Details of derivative financial instruments outstanding as at ember are set out below;- Type of derivative Contract/Notional Amount Fair value liabilities RM 000 RM 000 Cross Currency Interest Rate Swaps ( CCRIS ) -less than 1 year 69,909 69,909-1 year to 3 years Nil Nil -More than 3 years Nil Nil There have been no changes since the end of the previous financial year ended ember in respect of the following:- i. the credit risk and market risks associated with the derivatives; ii. the cash requirements of the derivatives; iii. the policies in place for mitigating or controlling the risk associated with the derivatives; and iv. the related accounting policies. (b) Disclosure of gains and/losses arising from fair value changes of financial liabilities The Group determines the fair value of the derivative financial liabilities relating to the CCIRS using valuation technique which utilises data from recognised financial information sources. Assumptions are based on market conditions existing at each reporting date. The fair value is calculated as the present value of the estimated future cash flow using an appropriate market based yield curve. As at ember, the Group has on re-measuring the fair value of the derivative financial instrument, recognized derivative financial liabilities of RM10.544million, an increase of RM5.854million from the previous financial year ended ember. The corresponding decrease has been included in equity in the cashflow hedging reserve of which unrealized loss of RM4.334million for the financial year was transferred to the income statement. This has resulted in an increase in the cash flow hedging reserve as at ember by the amount of RM1.964million to RM3.342million as compared to the preceding financial year ended 31 December. The cashflow hedging reserve represents the deferred fair value losses relating to the CCIRS. As the Group intends to hold the MTN and associated derivative instrument to maturity, any changes to the fair value of the derivative instrument will not impact the income statement. 16. Authorised For Issue The interim financial statements were authorised for issue by the Board in accordance with a resolution of the Board of Directors dated 25 February 2016. By Order of the Board Perisai Petroleum Teknologi Bhd Finton Tuan Kit Ming (LS 0008941) Hooi Sook Han (MAICSA No: 7026472) Company Secretaries 12