petrofac limited - rns submit ? Â· petrofac limited contents page group financial highlights 1...

Download Petrofac Limited - RNS Submit ? Â· Petrofac Limited CONTENTS Page Group financial highlights 1 Business review 2 Interim condensed consolidated income statement 14 Interim condensed consolidated

Post on 03-Feb-2018

215 views

Category:

Documents

2 download

Embed Size (px)

TRANSCRIPT

  • Petrofac Limited

    INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

    30 June 2015

  • Petrofac Limited

    CONTENTS Page

    Group financial highlights 1

    Business review 2

    Interim condensed consolidated income statement 14

    Interim condensed consolidated statement of comprehensive income 15

    Interim condensed consolidated statement of financial position 16

    Interim condensed consolidated statement of cash flows 17

    Interim condensed consolidated statement of changes in equity 19

    Notes to the interim condensed consolidated financial statements 21

    Statement of Directors responsibilities 40

    Independent review report to Petrofac Limited 40

    Shareholder information 41

  • GROUP FINANCIAL HIGHLIGHTS

    1

    US$3,180 million US$20.9 billion Revenue Backlog

    2

    Six months ended 30 June 2014: US$2,535 million As at 31 December 2014: US$18.9 billion

    US$9 million (39.3) cents EBITDA

    1,3 Earnings per share (diluted)

    1

    Six months ended 30 June 2014: US$340 million Six months ended 30 June 2014: 39.8 cents

    US$(133) million 22.0 cents Net (loss)/profit

    1 Interim dividend per share

    Six months ended 30 June 2014: US$136 million Six months ended 30 June 2014: 22.0 cents

    10% Return on capital employed

    1,4

    Year ended 30 June 2014: 20%

    1 2

    Before exceptional items and certain re-measurements. Backlog consists of the estimated revenue attributable to the uncompleted portion of lump-sum engineering, procurement and construction contracts and variation orders plus, with regard to engineering, operations, maintenance and Integrated Energy Services contracts, the estimated revenue attributable to the lesser of the remaining term of the contract and five years. Backlog will not be booked on Integrated Energy Services contracts where the Group has entitlement to reserves. The Group uses this key performance indicator as a measure of the visibility of future revenue. Backlog is not an audited measure.

    3 EBITDA means earnings before interest, tax, depreciation and amortisation and is calculated as profit before tax and net finance costs, but after our share of results of associates (as per the consolidated income statement) adjusted to add back charges for depreciation and amortisation (as per note 3 to the interim condensed consolidated financial statements).

    4 Return on capital employed is calculated as EBITA (earnings

    before interest, tax and amortisation) for the year ended 30 June 2015 divided by average capital employed (being total assets less total current liabilities per the interim condensed consolidated statement of financial position adjusted for gross up of finance lease creditors).

  • BUSINESS REVIEW

    2

    Results The Group has had a strong start to the year in terms of new project awards, reflecting ongoing investment in large strategic projects by our clients in our core markets. Backlog increased 11% to US$20.9 billion at 30 June 2015 (31 December 2014: US$18.9 billion), with a further announced award of US$0.8 billion since 30 June 2015, giving us excellent revenue visibility for the rest of this year and beyond. Operationally, on the Laggan-Tormore gas plant, commissioning is well underway, with major systems handed over to the client. We have recorded incremental losses on the contract in the first half of 2015 of approximately US$263 million after tax as a result of additional completion and pre-commissioning work (see notes 2 and 3 to the financial statements). The additional costs predominantly relate to additional direct construction manhours, along with the associated indirect, subcontractor and material costs. The rest of our portfolio remains in good shape and is performing in line with our expectations. Revenue for the first six months of the year increased 25%, predominantly due to Onshore Engineering & Construction, where activity levels increased substantially from the second half of 2014 onwards as we moved into the execution phase on a number of projects. As in 2014, and as previously announced, net profit for 2015 is expected to be significantly weighted to the second half of 2015, reflecting the phasing of project delivery, particularly in Onshore Engineering & Construction, as a number of projects are expected to reach their percentage of completion threshold for initial profit recognition in the second half of 2015. Net profit attributable to Petrofac Limited shareholders for the six months ended 30 June 2015 before recognising the year to date loss on Laggan-Tormore and before exceptional items and certain re-measurements was US$130 million (2014: US$136 million). On the same basis, EBITDA for the first six months of the year was lower at US$305 million (2014: US$340 million), predominantly due to a lower contribution from Integrated Energy Services. After recognising the year to date loss on Laggan-Tormore, but before exceptional items and certain re-measurements, the net loss for the first half of the year was US$133 million (2014: US$135 million net profit) and EBITDA was US$9 million (2014: US$340 million). We recognised exceptional items and certain re-measurements in the first half of the year of US$49 million after tax (2014: nil), predominantly in respect of an impairment charge of US$33 million in relation to Integrated Energy Services goodwill, in light of revised commodity price expectations and underlying asset performance in the year to date (see note 5 to the financial statements). The Groups net debt stood at US$1.0 billion at 30 June 2015 (31 December 2014: net debt US$0.7 billion) as the net result of:

    operating profits before working capital and other non-current changes of US$70 million

    net working capital inflows of US$177 million, including: o a cash inflow of US$111 million from a decrease in other receivables and amounts due from

    joint venture partners within trade and other receivables o a cash inflow of US$149 million from an increase in accrued contract expenses on Onshore

    Engineering & Construction projects, particularly in relation to projects where we have recently moved into the execution phase

    o a cash inflow of US$82 million from an increase in trade and other payables, where an increase in trade payables and advances received from customers more than offset a reduction in accrued expenses and other payables

    o a cash outflow of US$151 million from an increase in work in progress, due to the ramp-up of activity and the timing of billing milestones on Onshore Engineering & Construction projects

    investing activities of US$242 million, including capital expenditure of approximately US$125 million on Integrated Energy Services projects and US$86 million on the Petrofac JSD6000 installation vessel

    financing activities, in particular, payment of the 2014 final dividend of US$149 million and financing the purchase of treasury shares for US$39 million for the purpose of making awards under the Groups share schemes

    net taxes paid of US$30 million and interest paid of US$41 million

    Net debt (US$ millions) 30 June 2015 31 December 2014 30 June 2014*

    Cash and short-term deposits 858 986 715

    Interest-bearing loans and borrowings (1,891) (1,719) (1,982)

    Net debt (1,033) (733) (1,267)

    * Includes amounts in assets held for sale

  • BUSINESS REVIEW

    3

    Finance costs for the period increased to US$53 million (2014: US$28 million), principally due to the interest cost of finance leases in relation to floating production facilities in Malaysia for Block PM304 and the Berantai Risk Service Contract which, prior to the 80% disposal of these vessels to PetroFirst Infrastructure Holdings Limited in August 2014, eliminated on consolidation. Finance income was US$3 million in the first half of the year (2014: US$11 million) with the majority of the finance income relating to the unwinding of the long-term receivable in relation to the Berantai Risk Service Contract (RSC). The tax credit for the six months ended 30 June 2015 of US$1 million (2014: US$53 million charge) represents an effective tax rate credit of 0.5% (six months ended 30 June 2014: 27.9% charge; year ended 31 December 2014: 18.4% charge). The Groups effective tax rate is dependent upon a number of factors including the timing of profit recognition between the first and second halves of the year on contracts held as well as the mix of jurisdictions in which contracts income is generated within the Onshore Engineering & Construction and the Integrated Energy Services segments. For the six months, the lower effective tax rate results from the impact of current period losses not recognised for tax purposes and a reduced proportion of total income being generated in higher tax jurisdictions compared with prior periods. However, if the consequences of the temporary issues noted above are accounted for, the Groups effective tax rate for year end 2015 is expected to be broadly in line with last year's effective tax rate. Diluted earnings per share before exceptional items and certain re-measurements for the six months ended 30 June 2015 was a loss of 39.3 cents per share (2014: profit of 39.8 cents per share) in line with the change in net profit/(loss). At 30 June 2015, the Group had around 20,200 employees (including long-term contractors) (31 December 2014: 19,800).

    Dividend The Board has declared an interim dividend of 22.0 cents per share (2014: 22.0 cents), in line with the 2014 interim dividend, which will be paid on 16 October 2015 to eligible shareholders on the register at 18 September 2015. Shareholders have the opportunity to elect by close of business on the record date to

Recommended

View more >