For Immediate Release |
5 December 2013 |
|
|
Hunting PLC
("the Company or Group")
Change in presentational currency
Hunting PLC (LSE:HTG) the international energy services group announces that it is changing the currency in which it presents its financial statements from Sterling to US Dollars.A significant portion of the Group's revenues, cash flows and net assets are now denominated in US Dollars and the Board has decided that a US Dollar presentation will give a more meaningful view of the Group's financial performance and position.
In the unaudited appendix attached to this announcement the Company has presented condensed consolidated US Dollar financial information. These will form the basis of the comparative US Dollar financial information to be included in the full year results for the year ending 31 December 2013 and the half year results for the six month period ending 30 June 2014.
The condensed financial information has been restated from Sterling into US Dollars using the procedures as outlined below and in accordance with the requirements set out in IAS 21: "The Effects of Changes in Foreign Exchange Rates" with respect to translation to the presentational currency:
· assets and liabilities denominated in non-US Dollar currencies were translated into US Dollars at the closing rate prevailing at the balance sheet dates;
· income and expenses denominated in non-US Dollar currencies were translated into US Dollars at the average exchange rate of the reporting period; and
· all resulting exchange differences have been recognised in other comprehensive income, within the foreign currency translation reserve.
As a result of this change, future dividends will be declared in US Dollars but will continue to be paid in Sterling. The Sterling value of the dividend payable per share will be fixed and announced approximately two weeks prior to the payment date based on the average spot exchange rate over the three business days preceding the announcement date.
For further information please contact:
Hunting PLC Dennis Proctor, Chief Executive Peter Rose, Finance Director |
Tel: +44 (0) 20 7321 0123 |
Buchanan Richard Darby Jeremy Garcia |
Tel: +44 (0) 20 7466 5000 |
Notes to Editors:
About Hunting PLC
Hunting PLC is an international energy services provider to the world's leading upstream oil and gas companies. Established in 1874, it is a premium listed public company traded on the London Stock Exchange. The Company maintains a corporate office in Houston and is headquartered in London. As well as the United Kingdom, the Company has principal operations in Canada, China, Hong Kong, Indonesia, Mexico, Netherlands, Singapore, Thailand, United Arab Emirates and the United States of America.
Presentation of Historical Financial Information in US Dollars
Introduction
Following due consideration, the Board of Hunting PLC have decided to report in US Dollars with effect from the publication of the Annual Report for the year ending 31 December 2013. This document restates historical financial information for the years ended 31 December 2012, 2011 and 2010 and for the half year ended 30 June 2013.
Peter Rose
Finance Director
Contents
1. Basis of Accounting
2. Reason for Change in Presentational Currency
3. Dividends
4. For the years ended 31 December 2012, 2011 and 2010
Consolidated Income Statement
Consolidated Balance Sheet
Notes
5. For the six months ended 30 June 2013
Consolidated Income Statement
Consolidated Balance Sheet
Notes
6. Financial Record
1. Basis of Accounting
This report has been prepared to illustrate the effect on the financial statements of changing the presentational currency of the Hunting Group from Sterling to US Dollars. The financial information contained in this report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information is unaudited, and was prepared using accounting policies consistent with those used to prepare the 2012 Annual Report, except as described below.
IAS 19 (revised) Employee Benefits
IAS 19 (revised) Employee Benefits has been adopted from 1 January 2013. The Group has applied the standard retrospectively in accordance with the transition provisions of the standard. Under IAS 19 (revised), scheme expenses have been recognised as incurred rather than through a reserve, which was part of the defined benefit obligation. The combination of the expected return on assets and interest cost on the defined benefit obligation is replaced by the net interest on the defined benefit asset. This comprises interest income on the plan assets, calculated using the IAS 19 (revised) discount rate rather than the expected return on the plan assets, minus the interest cost on the defined benefit obligation.
The impact on the Balance Sheet for the year ended 31 December 2012 was to increase the retirement benefit asset by US$13.0m to US$22.8m, reduce deferred tax assets by US$3.0m to US$8.7m, reduce other components of equity by US$0.8m and increase retained earnings by US$10.8m. The impact on the Income Statement was to reduce profit from continuing operations by US$1.7m, increase finance income by US$1.1m and reduce taxation expense by US$0.1m.
The impact on the Balance Sheet for the year ended 31 December 2011 was to increase the retirement benefit asset by US$12.4m to US$19.9m, increase deferred tax liabilities by US$3.1m to US$58.0m, reduce other components of equity by US$1.3m and increase retained earnings by US$10.6m. The impact on the Income Statement was to reduce profit from continuing operations by US$1.4m, increase finance income by US$1.1m and reduce taxation expense by US$0.1m.
The impact on the Balance Sheet for the year ended 31 December 2010 was to increase the retirement benefit asset by US$12.6m to US$21.2m, increase deferred tax liabilities by US$3.4m to US$43.6m, reduce other components of equity by US$1.1m and increase retained earnings by US$10.3m. The impact on the Income Statement was to reduce profit from continuing operations by US$1.4m, increase finance income by US$0.9m and reduce taxation expense by US$0.1m.
The impact on the Balance Sheet for the year ended 31 December 2009 was to increase the retirement benefit asset by US$12.9m to US$25.8m, increase deferred tax liabilities by US$3.6m to US$33.3m, reduce other components of equity by US$0.9m and increase retained earnings by US$10.2m. The impact on the Income Statement was to reduce profit from continuing operations by US$1.9m, increase finance income by US$1.4m and reduce taxation expense by US$0.1m.
2. Reason for Change in Presentational Currency
Following the disposal of Gibson Energy at the end of 2008 and the acquisition programme undertaken in recent years that focused on US domiciled businesses, the Hunting Group's US operations have expanded and become the most significant operations of the Group. The dominant functional currency of the operating subsidiaries is US Dollar. This is not only driven by US domiciled businesses but also by businesses outside the US, which have a US Dollar functional currency. The Group's revenues, cash flows and economic returns are now principally denominated in US Dollars. Hunting PLC has changed the currency in which it presents its consolidated and parent Company Financial Statements from Sterling to US Dollars, as this will give a more meaningful view of the Group's financial performance and position.
A change in presentational currency is a change in accounting policy, which is accounted for retrospectively. Financial information reported in Sterling in the Group's 2012 Annual Report and 2013 Half Year Report has been restated into US Dollars using the procedures outlined below:
a) assets and liabilities denominated in non-US Dollar currencies were translated into US Dollars at closing rates of exchange. Non-US Dollar trading results were translated into US Dollars at average rates of exchange. Differences resulting from the retranslation of the opening net assets and the results for the year have been taken to the translation reserve;
b) the cumulative translation reserve was set to nil at 1 January 2004 (i.e. the transition date to IFRS). All subsequent movements comprising differences on the retranslation of the opening net assets of non-US Dollar subsidiaries have been charged to the translation reserve; and
c) Share capital, share premium and capital redemption reserves were translated at the historic rates prevailing at the dates of transactions.
d) The average exchange rates used to translate the Group's results into US Dollars and the closing rates for each reporting period included in this report are as follows:
Exchange rates |
Six months ended 30 June |
31 December |
|
2013 |
2012 |
2011 |
2010 |
2009 |
US$/£ - average |
0.6478 |
0.6309 |
0.6233 |
0.6500 |
0.6400 |
US$/£ - period end |
0.6593 |
0.6152 |
0.6435 |
0.6400 |
0.6200 |
3. Dividends
As a result of these changes, future dividends will be declared in US Dollars but will continue to be paid in Sterling. The Sterling value of the dividend payable per share will be fixed and announced approximately two weeks prior to the payment date based on the average spot exchange rate over the three business days preceding the announcement date.
4. For the years ended 31 December 2012, 2011 and 2010
Condensed Consolidated Income Statement
(Unaudited)
|
|
2012 |
|
2011 |
|
|
Before |
Amortisation |
|
|
Before |
Amortisation |
|
|
|
amortisation |
and |
|
|
amortisation |
and |
|
|
|
and |
exceptional |
|
|
and |
exceptional |
|
|
|
exceptional |
items |
|
|
exceptional |
items |
|
|
|
items |
(note 2) |
Total |
|
items |
(note 2) |
Total |
Notes |
US$m |
US$m |
US$m |
|
US$m |
US$m |
US$m |
Revenue |
1 |
1,309.0 |
- |
1,309.0 |
|
975.1 |
- |
975.1 |
EBITDA |
3 |
242.9 |
(15.2) |
227.7 |
|
162.5 |
(40.2) |
122.3 |
Depreciation, amortisation and impairment |
|
(40.4) |
(52.7) |
(93.1) |
|
(34.4) |
(23.3) |
(57.7) |
Profit from continuing operations |
1 |
202.5 |
(67.9) |
134.6 |
|
128.1 |
(63.5) |
64.6 |
Finance income |
|
3.8 |
- |
3.8 |
|
6.7 |
- |
6.7 |
Finance expense |
|
(12.5) |
- |
(12.5) |
|
(9.1) |
(1.7) |
(10.8) |
Share of associates' post-tax profits |
1.5 |
- |
1.5 |
|
1.7 |
- |
1.7 |
Profit before tax from continuing operations |
195.3 |
(67.9) |
127.4 |
|
127.4 |
(65.2) |
62.2 |
Taxation |
|
(54.7) |
26.5 |
(28.2) |
|
(35.7) |
24.1 |
(11.6) |
Profit for the year: |
|
|
|
|
|
|
|
|
From continuing operations |
140.6 |
(41.4) |
99.2 |
|
91.7 |
(41.1) |
50.6 |
From discontinued operations |
|
- |
108.0 |
108.0 |
|
1.1 |
80.2 |
81.3 |
Profit for the year |
|
140.6 |
66.6 |
207.2 |
|
92.8 |
39.1 |
131.9 |
|
|
|
|
|
|
|
|
|
Profit attributable to: |
|
|
|
|
|
|
|
|
Owners of the parent |
|
135.7 |
66.6 |
202.3 |
|
87.8 |
39.1 |
126.9 |
Non-controlling interests |
|
4.9 |
- |
4.9 |
|
5.0 |
- |
5.0 |
|
|
140.6 |
66.6 |
207.2 |
|
92.8 |
39.1 |
131.9 |
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
- from continuing operations |
4 |
93.0c |
|
64.6c |
|
63.1c |
|
33.2c |
|
- from discontinued operations |
4 |
- |
|
74.1c |
|
0.8c |
|
59.3c |
Group total |
|
93.0c |
|
138.7c |
|
63.9c |
|
92.5c |
|
|
|
|
|
|
|
|
|
Diluted |
- from continuing operations |
4 |
90.8c |
|
63.1c |
|
61.8c |
|
32.5c |
|
- from discontinued operations |
4 |
- |
|
72.2c |
|
0.8c |
|
58.0c |
Group total |
|
90.8c |
|
135.3c |
|
62.6c |
|
90.5c |
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Income Statement
(Unaudited)
|
|
|
2010 |
|
|
|
Before |
Amortisation |
|
|
|
|
amortisation |
and |
|
|
|
|
and |
exceptional |
|
|
|
|
exceptional |
items |
|
|
|
|
items |
(note 2) |
Total |
|
Notes |
|
US$m |
US$m |
US$m |
Revenue |
1 |
|
656.0 |
- |
656.0 |
EBITDA |
3 |
|
95.7 |
(4.8) |
90.9 |
Depreciation, amortisation and impairment |
|
|
(27.3) |
(16.9) |
(44.2) |
Profit from continuing operations |
1 |
|
68.4 |
(21.7) |
46.7 |
Finance income |
|
|
6.8 |
- |
6.8 |
Finance expense |
|
|
(4.4) |
- |
(4.4) |
Share of associates' post-tax profits |
|
|
1.6 |
- |
1.6 |
Profit before tax from continuing operations |
|
|
72.4 |
(21.7) |
50.7 |
Taxation |
|
|
(21.7) |
6.4 |
(15.3) |
Profit for the year from continuing operations |
|
|
50.7 |
(15.3) |
35.4 |
Profit for the year from discontinued operations |
|
|
9.1 |
(7.2) |
1.9 |
Profit for the year |
|
|
59.8 |
(22.5) |
37.3 |
|
|
|
|
|
|
Profit attributable to: |
|
|
|
|
|
Owners of the parent |
|
|
55.9 |
(22.5) |
33.4 |
Non-controlling interests |
|
|
3.9 |
- |
3.9 |
|
|
|
59.8 |
(22.5) |
37.3 |
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
- from continuing operations |
4 |
|
35.6c |
|
24.0c |
|
- from discontinued operations |
4 |
|
7.0c |
|
1.5c |
Group total |
|
|
42.6c |
|
25.5c |
|
|
|
|
|
|
Diluted |
- from continuing operations |
4 |
|
34.9c |
|
23.5c |
|
- from discontinued operations |
|
|
6.8c |
|
1.5c |
Group total |
|
|
41.7c |
|
25.0c |
Condensed Consolidated Balance Sheet
(Unaudited)
|
|
|
2012 |
2011 |
2010 |
|
|
|
US$m |
US$m |
US$m |
ASSETS |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Property, plant and equipment |
|
|
403.8 |
359.4 |
241.9 |
Goodwill |
|
|
495.0 |
494.0 |
157.9 |
Other intangible assets |
|
|
301.1 |
343.2 |
35.5 |
Investments in associates |
|
|
11.0 |
9.2 |
20.4 |
Investments |
|
|
6.4 |
0.4 |
70.8 |
Retirement benefit assets |
|
|
22.8 |
19.9 |
21.2 |
Trade and other receivables |
|
|
6.1 |
3.4 |
5.7 |
Deferred tax assets |
|
|
8.7 |
4.6 |
13.5 |
|
|
|
1,254.9 |
1,234.1 |
566.9 |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
Inventories |
|
|
391.1 |
359.0 |
205.2 |
Trade and other receivables |
|
|
278.0 |
270.7 |
163.8 |
Current tax assets |
|
|
10.6 |
10.0 |
- |
Investments |
|
|
5.1 |
3.7 |
4.0 |
Cash and cash equivalents |
|
|
165.3 |
106.9 |
421.8 |
Assets classified as held for sale |
|
|
- |
21.1 |
- |
|
|
|
850.1 |
771.4 |
794.8 |
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
|
|
215.7 |
228.1 |
167.3 |
Current tax liabilities |
|
|
17.6 |
39.4 |
27.5 |
Borrowings |
|
|
132.1 |
67.1 |
89.0 |
Provisions |
|
|
20.3 |
65.8 |
62.5 |
Liabilities classified as held for sale |
|
|
- |
13.1 |
- |
|
|
|
385.7 |
413.5 |
346.3 |
Net current assets |
|
|
464.4 |
357.9 |
448.5 |
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Borrowings |
|
|
304.7 |
385.9 |
3.6 |
Deferred tax liabilities |
|
|
41.8 |
30.8 |
43.6 |
Provisions |
|
|
27.7 |
28.2 |
25.6 |
Other payables |
|
|
12.4 |
0.2 |
- |
|
|
|
386.6 |
445.1 |
72.8 |
Net assets |
|
|
1,332.7 |
1,146.9 |
942.6 |
|
|
|
|
|
|
Non-controlling interests |
|
|
(29.7) |
(26.1) |
(23.3) |
Total equity attributable to owners of the parent |
|
|
1,303.0 |
1,120.8 |
919.3 |
Notes
1. Segmental Reporting
The Group's segments are strategic business units that offer different products and services to international oil and gas companies and the shipping sector.
Results from operations
|
Year ended 31 December 2012 |
|
Total gross revenue |
Inter-segmental revenue |
Total revenue |
Profit from operations before amortisation and exceptional items |
Amortisation and exceptional items |
Total |
|
US$m |
US$m |
US$m |
US$m |
US$m |
US$m |
Continuing operations: |
|
|
|
|
|
|
Hunting Energy Services |
|
|
|
|
|
|
Well Construction |
450.3 |
(7.6) |
442.7 |
72.5 |
(8.1) |
64.4 |
Well Completion |
742.8 |
(17.7) |
725.1 |
116.6 |
(47.5) |
69.1 |
Well Intervention |
89.9 |
(0.1) |
89.8 |
10.8 |
(0.9) |
9.9 |
|
1,283.0 |
(25.4) |
1,257.6 |
199.9 |
(56.5) |
143.4 |
Other Activities |
|
|
|
|
|
|
Exploration and Production |
7.8 |
- |
7.8 |
0.9 |
(11.4) |
(10.5) |
Gibson Shipbrokers |
43.6 |
- |
43.6 |
1.7 |
- |
1.7 |
Total from continuing operations |
1,334.4 |
(25.4) |
1,309.0 |
202.5 |
(67.9) |
134.6 |
|
Year ended 31 December 2011 |
|
Total gross revenue |
Inter-segmental revenue |
Total revenue |
Profit from operations before amortisation and exceptional items |
Amortisation and exceptional items |
Total |
|
US$m |
US$m |
US$m |
US$m |
US$m |
US$m |
Continuing operations: |
|
|
|
|
|
|
Hunting Energy Services |
|
|
|
|
|
|
Well Construction |
322.3 |
(10.2) |
312.1 |
45.5 |
(12.4) |
33.1 |
Well Completion |
545.4 |
(22.0) |
523.4 |
65.4 |
(31.3) |
34.1 |
Well Intervention |
84.8 |
- |
84.8 |
12.6 |
(0.9) |
11.7 |
|
952.5 |
(32.2) |
920.3 |
123.5 |
(44.6) |
78.9 |
Other Activities |
|
|
|
|
|
|
Exploration and Production |
13.1 |
- |
13.1 |
2.7 |
(1.6) |
1.1 |
Gibson Shipbrokers |
41.7 |
- |
41.7 |
1.9 |
- |
1.9 |
|
1,007.3 |
(32.2) |
975.1 |
128.1 |
(46.2) |
81.9 |
Exceptional items not apportioned to business segments |
- |
- |
- |
- |
(17.3) |
(17.3) |
Total from continuing operations |
1,007.3 |
(32.2) |
975.1 |
128.1 |
(63.5) |
64.6 |
|
Year ended 31 December 2010 |
|
Total gross revenue |
Inter-segmental revenue |
Total revenue |
Profit from operations before amortisation and exceptional items |
Amortisation and exceptional items |
Total |
|
US$m |
US$m |
US$m |
US$m |
US$m |
US$m |
Continuing operations: |
|
|
|
|
|
|
Hunting Energy Services |
|
|
|
|
|
|
Well Construction |
180.8 |
(8.1) |
172.7 |
14.8 |
(2.7) |
12.1 |
Well Completion |
355.7 |
(8.4) |
347.3 |
35.5 |
- |
35.5 |
Well Intervention |
91.0 |
(0.1) |
90.9 |
15.5 |
(1.2) |
14.3 |
|
627.5 |
(16.6) |
610.9 |
65.8 |
(3.9) |
61.9 |
Other Activities |
|
|
|
|
|
|
Exploration and Production |
10.1 |
- |
10.1 |
2.1 |
(13.0) |
(10.9) |
Gibson Shipbrokers |
35.0 |
- |
35.0 |
0.5 |
- |
0.5 |
|
672.6 |
(16.6) |
656.0 |
68.4 |
(16.9) |
51.5 |
Exceptional items not apportioned to business segments |
- |
- |
- |
- |
(4.8) |
(4.8) |
Total from continuing operations |
672.6 |
(16.6) |
656.0 |
68.4 |
(21.7) |
46.7 |
Geographical Information: External Revenue
|
|
|
|
2012 |
2011 |
2010 |
|
|
|
|
US$m |
US$m |
US$m |
Continuing operations: |
|
|
|
|
|
|
UK |
|
|
|
224.8 |
215.3 |
203.4 |
USA |
|
|
|
792.8 |
503.5 |
283.1 |
Canada |
|
|
|
96.7 |
85.2 |
64.3 |
Rest of Europe |
|
|
|
28.3 |
24.3 |
17.4 |
Singapore |
|
|
|
129.4 |
132.2 |
87.0 |
Other |
|
|
|
37.0 |
14.6 |
0.8 |
Total |
|
|
|
1,309.0 |
975.1 |
656.0 |
2. Amortisation and Exceptional Items
|
|
|
|
|
|
2012 |
2011 |
2010 |
|
|
|
|
|
|
US$m |
US$m |
US$m |
Fair value uplift to inventories charge |
|
|
12.0 |
20.3 |
- |
Impairment of property, plant and equipment |
|
|
8.2 |
1.6 |
8.2 |
Dry hole costs |
|
|
3.2 |
- |
4.8 |
Charged to cost of sales |
|
|
|
23.4 |
21.9 |
13.0 |
|
|
|
|
|
|
|
|
|
Amortisation of intangible assets |
|
|
|
44.5 |
19.4 |
3.9 |
Acquisition costs |
|
- |
13.8 |
4.8 |
Retention bonuses for management of acquired businesses |
|
1.8 |
2.6 |
- |
Property provisions |
|
|
|
|
- |
3.5 |
0.1 |
Impairment of goodwill |
|
|
|
|
- |
2.3 |
- |
Other exceptional items |
|
|
|
|
- |
- |
(0.1) |
Charged to operating expenses |
|
|
|
46.3 |
41.6 |
8.7 |
|
|
|
|
|
|
|
|
|
Release of contingent consideration liability - credited to operating income |
(1.8) |
- |
- |
Amortisation and exceptional items |
|
|
67.9 |
63.5 |
21.7 |
Unamortised loan facility fees written off - charged to finance expense |
|
- |
1.7 |
- |
Taxation on amortisation and exceptional items |
|
|
(26.5) |
(24.1) |
(6.4) |
Total from continuing operations |
|
|
|
41.4 |
41.1 |
15.3 |
3. EBITDA
|
2012 |
2011 |
2010 |
|
US$m |
US$m |
US$m |
Reported profit from continuing operations |
134.6 |
64.6 |
46.7 |
Add: amortisation and exceptional items (note 2) |
67.9 |
63.5 |
21.7 |
Add: depreciation and non-exceptional impairment |
40.4 |
34.4 |
27.3 |
Underlying EBITDA |
242.9 |
162.5 |
95.7 |
Less: exceptional items impacting EBITDA |
(15.2) |
(40.2) |
(4.8) |
Reported EBITDA |
227.7 |
122.3 |
90.9 |
|
|
|
|
|
|
"EBITDA" is a non-GAAP measure and underlying EBITDA is defined as pre-exceptional profit from continuing operations before interest, tax, depreciation, amortisation and impairment to property, plant and equipment. Underlying EBITDA is used by the Board as a measure of the Group's performance.
4. Earnings per Share
Basic earnings per share is calculated by dividing the earnings attributable to Ordinary shareholders by the weighted average number of Ordinary shares outstanding during the period.
For diluted earnings per share, the weighted average number of outstanding Ordinary shares is adjusted to assume conversion of all dilutive potential Ordinary shares. The dilution in respect of share options applies where the exercise price is less than the average market price of the Company's Ordinary shares during the period and the possible issue of shares under the Group's long-term incentive plans.
Reconciliations of the earnings and weighted average number of Ordinary shares used in the calculations are set out below:
|
2012 |
2011 |
2010 |
|
US$m |
US$m |
US$m |
Basic and diluted earnings attributable to Ordinary shareholders: |
|
|
|
From continuing operations |
94.3 |
45.6 |
31.5 |
From discontinued operations |
108.0 |
81.3 |
1.9 |
Total |
202.3 |
126.9 |
33.4 |
|
|
|
|
Basic and diluted earnings attributable to Ordinary shareholders before amortisation and exceptional items: |
From continuing operations |
94.3 |
45.6 |
31.5 |
Add: amortisation and exceptional items after taxation |
41.4 |
41.1 |
15.3 |
Total |
135.7 |
86.7 |
46.8 |
|
|
|
|
From discontinued operations |
108.0 |
81.3 |
1.9 |
Add: exceptional items after taxation |
(108.0) |
(80.2) |
7.2 |
Total |
- |
1.1 |
9.1 |
|
|
|
|
|
millions |
millions |
millions |
Basic weighted average number of Ordinary shares |
145.9 |
137.1 |
131.3 |
Dilutive outstanding share options |
1.2 |
1.4 |
1.8 |
Long term incentive plans |
2.4 |
1.6 |
0.9 |
Adjusted weighted average number of Ordinary shares |
149.5 |
140.1 |
134.0 |
|
|
|
|
|
cents |
cents |
cents |
Basic EPS: |
|
|
|
From continuing operations |
64.6 |
33.2 |
24.0 |
From discontinued operations |
74.1 |
59.3 |
1.5 |
|
138.7 |
92.5 |
25.5 |
Diluted EPS: |
|
|
|
From continuing operations |
63.1 |
32.5 |
23.5 |
From discontinued operations |
72.2 |
58.0 |
1.5 |
|
135.3 |
90.5 |
25.0 |
Earnings per share before amortisation and exceptional items |
|
|
|
Basic EPS: |
|
|
|
From continuing operations |
93.0 |
63.1 |
35.6 |
From discontinued operations |
- |
0.8 |
7.0 |
|
93.0 |
63.9 |
42.6 |
Diluted EPS: |
|
|
|
From continuing operations |
90.8 |
61.8 |
34.9 |
From discontinued operations |
- |
0.8 |
6.8 |
|
90.8 |
62.6 |
41.7 |
5. For the six months ended 30 June 2013
Condensed Consolidated Income Statement
(Unaudited)
|
|
|
|
Six months ended 30 June 2013 |
|
|
|
|
|
|
Before |
Amortisation |
|
|
|
|
|
|
|
amortisation |
and |
|
|
|
|
|
|
|
and |
exceptional |
|
|
|
|
|
|
|
exceptional |
items |
|
|
|
|
|
|
|
items |
(note 2) |
Total |
|
|
|
|
Notes |
|
US$m |
US$m |
US$m |
Revenue |
|
|
|
1 |
|
655.7 |
- |
655.7 |
EBITDA |
|
|
|
3 |
|
116.7 |
(6.9) |
109.8 |
Depreciation, amortisation and impairment |
|
|
|
(22.2) |
(24.6) |
(46.8) |
Profit from continuing operations |
|
|
|
1 |
|
94.5 |
(31.5) |
63.0 |
Finance income |
|
|
|
|
|
6.4 |
- |
6.4 |
Finance expense |
|
|
|
|
|
(9.7) |
- |
(9.7) |
Share of associates' post-tax profits |
|
|
|
|
0.3 |
- |
0.3 |
Profit before tax from continuing operations |
|
|
|
91.5 |
(31.5) |
60.0 |
Taxation |
|
|
|
|
|
(26.5) |
11.0 |
(15.5) |
Profit for the period: |
|
|
|
|
|
|
|
|
From continuing operations |
|
|
|
|
65.0 |
(20.5) |
44.5 |
From discontinued operations |
|
|
|
|
|
- |
12.5 |
12.5 |
Profit for the period |
|
|
|
|
|
65.0 |
(8.0) |
57.0 |
|
|
|
|
|
|
|
|
|
Profit attributable to: |
|
|
|
|
|
|
|
|
Owners of the parent |
|
|
|
|
|
63.3 |
(8.0) |
55.3 |
Non-controlling interests |
|
|
|
|
|
1.7 |
- |
1.7 |
|
|
|
|
|
|
65.0 |
(8.0) |
57.0 |
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
- from continuing operations |
|
|
4 |
|
43.3c |
|
29.3c |
|
- from discontinued operations |
|
|
4 |
|
- |
|
8.5c |
Group total |
|
|
|
|
|
43.3c |
|
37.8c |
|
|
|
|
|
|
|
|
|
Diluted |
- from continuing operations |
|
|
4 |
|
42.2c |
|
28.5c |
|
- from discontinued operations |
|
|
4 |
|
- |
|
8.3c |
Group total |
|
|
|
|
|
42.2c |
|
36.8c |
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheet
(Unaudited)
|
|
|
|
|
As at 30 June 2013 |
|
|
|
|
|
US$m |
ASSETS |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Property, plant and equipment |
|
|
|
|
401.2 |
Goodwill |
|
|
|
|
493.3 |
Other intangible assets |
|
|
|
|
280.1 |
Investments in associates |
|
|
|
|
9.8 |
Investments |
|
|
|
|
7.4 |
Retirement benefit assets |
|
|
|
|
21.2 |
Trade and other receivables |
|
|
|
|
7.8 |
Deferred tax assets |
|
|
|
|
7.7 |
|
|
|
|
|
1,228.5 |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
Inventories |
|
|
|
|
407.9 |
Trade and other receivables |
|
|
|
|
269.3 |
Current tax assets |
|
|
|
|
1.0 |
Investments |
|
|
|
|
4.8 |
Cash and cash equivalents |
|
|
|
|
145.2 |
|
|
|
|
|
828.2 |
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
|
|
|
|
221.2 |
Current tax liabilities |
|
|
|
|
22.8 |
Borrowings |
|
|
|
|
150.3 |
Provisions |
|
|
|
|
7.6 |
|
|
|
|
|
401.9 |
Net current assets |
|
|
|
|
426.3 |
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Borrowings |
|
|
|
|
240.5 |
Deferred tax liabilities |
|
|
|
|
39.8 |
Provisions |
|
|
|
|
26.1 |
Other payables |
|
|
|
|
11.4 |
|
|
|
|
|
317.8 |
Net assets |
|
|
|
|
1,337.0 |
|
|
|
|
|
|
Non-controlling interests |
|
|
|
|
(29.9) |
Total equity attributable to owners of the parent |
|
|
|
|
1,307.1 |
Notes
1. Segmental Reporting
The Group's segments are strategic business units that offer different products and services to international oil and gas companies and the shipping sector.
Results from operations
|
Six months ended 30 June 2013 |
|
Total gross revenue |
Inter-segmental revenue |
Total revenue |
Profit from operations before amortisation and exceptional items |
Amortisation and exceptional items |
Total |
|
US$m |
US$m |
US$m |
US$m |
US$m |
US$m |
Continuing operations: |
|
|
|
|
|
|
Hunting Energy Services |
|
|
|
|
|
|
Well Construction |
195.7 |
(3.6) |
192.1 |
27.8 |
(3.7) |
24.1 |
Well Completion |
393.8 |
(5.8) |
388.0 |
60.9 |
(23.6) |
37.3 |
Well Intervention |
51.4 |
- |
51.4 |
5.7 |
(0.5) |
5.2 |
|
640.9 |
(9.4) |
631.5 |
94.4 |
(27.8) |
66.6 |
Other Activities |
|
|
|
|
|
|
Exploration and Production |
4.3 |
- |
4.3 |
0.4 |
(3.7) |
(3.3) |
Gibson Shipbrokers |
19.9 |
- |
19.9 |
(0.3) |
- |
(0.3) |
Total from continuing operations |
665.1 |
(9.4) |
655.7 |
94.5 |
(31.5) |
63.0 |
Geographical Information: External Revenue
|
|
|
|
|
Six months ended 30 June 2013 |
|
|
|
|
|
US$m |
Continuing operations: |
|
|
|
|
|
UK |
|
|
|
|
92.1 |
USA |
|
|
|
|
401.7 |
Canada |
|
|
|
|
30.7 |
Rest of Europe |
|
|
|
|
13.3 |
Singapore |
|
|
|
|
74.2 |
Other |
|
|
|
|
43.7 |
Total |
|
|
|
|
655.7 |
2. Amortisation and Exceptional Items
|
|
|
|
|
|
|
|
Six months ended 30 June 2013 |
|
|
|
|
|
|
|
|
US$m |
Fair value uplift to inventories charge |
|
|
|
|
3.2 |
Impairment of property, plant and equipment |
|
|
|
|
2.9 |
Dry hole costs |
|
|
|
|
0.8 |
Charged to cost of sales |
|
|
|
|
|
6.9 |
|
|
|
|
|
|
|
|
|
Amortisation of intangible assets |
|
|
|
|
|
21.7 |
Settlement of litigation and associated legal expenses |
|
|
|
|
2.9 |
Charged to operating expenses |
|
|
|
|
|
24.6 |
|
|
|
|
|
|
|
|
|
Amortisation and exceptional items |
|
|
|
|
31.5 |
Taxation on amortisation and exceptional items |
|
|
|
|
(11.0) |
Total from continuing operations |
|
|
|
|
|
20.5 |
3. EBITDA
|
|
|
Six months ended 30 June 2013 |
|
|
|
US$m |
Reported profit from continuing operations |
|
|
63.0 |
Add: amortisation and exceptional items (note 2) |
|
|
31.5 |
Add: depreciation |
|
|
22.2 |
Underlying EBITDA |
|
|
116.7 |
Less: exceptional items impacting EBITDA |
|
|
(6.9) |
Reported EBITDA |
|
|
109.8 |
|
|
|
|
|
|
"EBITDA" is a non-GAAP measure and underlying EBITDA is defined as pre-exceptional profit from continuing operations before interest, tax, depreciation, amortisation and impairment to property, plant and equipment. Underlying EBITDA is used by the Board as a measure of the Group's performance.
4. Earnings per Share
Basic earnings per share is calculated by dividing the earnings attributable to Ordinary shareholders by the weighted average number of Ordinary shares outstanding during the period.
For diluted earnings per share, the weighted average number of outstanding Ordinary shares is adjusted to assume conversion of all dilutive potential Ordinary shares. The dilution in respect of share options applies where the exercise price is less than the average market price of the Company's Ordinary shares during the period and the possible issue of shares under the Group's long-term incentive plans.
Reconciliations of the earnings and weighted average number of Ordinary shares used in the calculations are set out below:
|
|
|
Six months ended 30 June 2013 |
|
|
|
US$m |
Basic and diluted earnings attributable to Ordinary shareholders: |
|
|
|
From continuing operations |
|
|
42.8 |
From discontinued operations |
|
|
12.5 |
Total |
|
|
55.3 |
|
|
|
|
Basic and diluted earnings attributable to Ordinary shareholders before amortisation and exceptional items: |
From continuing operations |
|
|
42.8 |
Add: amortisation and exceptional items after taxation |
|
|
20.5 |
Total |
|
|
63.3 |
From discontinued operations |
|
|
12.5 |
Add: exceptional items after taxation |
|
|
(12.5) |
Total |
|
|
- |
|
|
|
|
|
|
|
millions |
Basic weighted average number of Ordinary shares |
|
|
146.4 |
Dilutive outstanding share options |
|
|
1.1 |
Long term incentive plans |
|
|
2.6 |
Adjusted weighted average number of Ordinary shares |
|
|
150.1 |
|
|
|
|
|
|
|
cents |
Basic EPS: |
|
|
|
From continuing operations |
|
|
29.3 |
From discontinued operations |
|
|
8.5 |
|
|
|
37.8 |
Diluted EPS: |
|
|
|
From continuing operations |
|
|
28.5 |
From discontinued operations |
|
|
8.3 |
|
|
|
36.8 |
Earnings per share before amortisation and exceptional items |
|
|
|
Basic EPS: |
|
|
|
From continuing operations |
|
|
43.3 |
From discontinued operations |
|
|
- |
|
|
|
43.3 |
Diluted EPS: |
|
|
|
From continuing operations |
|
|
42.2 |
From discontinued operations |
|
|
- |
|
|
|
42.2 |
6. Financial Record*
|
2012 US$m |
2011 US$m |
2010 US$m |
2009 US$m |
Revenue |
1,309.0 |
975.1 |
656.0 |
486.4 |
EBITDA |
242.9 |
162.5 |
95.7 |
66.4 |
Depreciation and non-exceptional impairment |
(40.4) |
(34.4) |
(27.3) |
(21.6) |
Profit from continuing operations |
202.5 |
128.1 |
68.4 |
44.8 |
Finance (charges) income |
(8.7) |
(2.4) |
2.4 |
4.0 |
Share of associates' post tax profits |
1.5 |
1.7 |
1.6 |
1.5 |
Profit before taxation from continuing operations |
195.3 |
127.4 |
72.4 |
50.3 |
Taxation |
(54.7) |
(35.7) |
(21.7) |
(15.3) |
Profit for the year from continuing operations |
140.6 |
91.7 |
50.7 |
35.0 |
Profit for the year from discontinued operations |
- |
1.1 |
9.1 |
9.3 |
Profit for the year |
140.6 |
92.8 |
59.8 |
44.3 |
|
|
|
|
|
Basic earnings per share: |
|
|
|
|
Continuing operations |
93.0c |
63.1c |
35.6c |
23.1c |
Continuing and discontinued operations |
93.0c |
63.9c |
42.6c |
30.2c |
|
|
|
|
|
Diluted earnings per share |
|
|
|
|
Continuing operations |
90.8c |
61.8c |
34.9c |
22.6c |
Continuing and discontinued operations |
90.8c |
62.6c |
41.7c |
29.6c |
|
|
|
|
|
Dividend per share# |
28.4c |
23.9c |
19.5c |
16.4c |
|
|
|
|
|
Total assets |
|
|
|
|
Non-current assets |
1,254.9 |
1,234.1 |
566.9 |
396.8 |
Net current assets |
464.4 |
357.9 |
448.5 |
583.8 |
|
1,719.3 |
1,592.0 |
1,015.4 |
980.6 |
|
|
|
|
|
Financed by: |
|
|
|
|
Shareholders' funds (including non-controlling interests) |
1,332.7 |
1,146.9 |
942.6 |
914.9 |
Non-current liabilities |
386.6 |
445.1 |
72.8 |
65.7 |
|
1,719.3 |
1,592.0 |
1,015.4 |
980.6 |
|
|
|
|
|
Net assets per share |
906.6c |
783.9c |
711.4c |
692.1c |
* Information is stated before exceptional items and amortisation of intangible assets.
# Dividend per share is stated on a declared basis. The interim dividend per share has been converted from pence per share into cents per share using the exchange rate on the date it was paid and the final dividend has been converted into cents per share using the exchange rate on the date it was approved.
