REG - Capital Drilling Ltd - Half-year Results <Origin Href="QuoteRef">CAPD.L</Origin> - Part 3
17/08/2017 07:06
- Part 3: For the preceding part double click ID:nRSQ2455Ob
Security for the
Standard Bank
(Mauritius)
Limited facility
comprise: -
Upward corporate
guarantees from
Capital Drilling
Egypt (Limited
Liability
Company), Capital
Drilling (T)
Limited and
Capital Drilling
(Botswana)
Proprietary
Limited.- A
negative pledge
over the assets of
Capital Drilling
Ltd and Capital
Drilling Egypt
(Limited Liability
Company).
As at the
reporting date and
during the year
under review, the
Group has complied
with all covenants
attached to the
loan facility.
Six months ended
30 June 2017 31 December 2016
$ $
Standard Bank (Mauritius) Limited
Balance at 1 January 12,095,125 5,096,001
Amounts received during the period 6,500,000 14,000,000
Interest accrued during the period 543,557 772,793
Interest paid during the period (514,202) (773,669)
Principal repayments during the period (3,500,000) (7,000,000)
15,124,480 12,095,125
Less: Current portion included under current liabilities (15,124,480) (2,095,125)
Due after more than one year - 10,000,000
Management is currently negotiating the refinancing of the above revolving credit facility. The refinancing would be based on corporate guarantees from Capital Drilling Egypt (Limited Liability Company) and Capital Drilling (T) Limited with two separate financial institutions.
CAPITAL DRILLING LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the six months ended 30 June 2017
Six months ended
30 June 2017 30 June 2016
$ $
10. Cash from operations
Profit before taxation 4,525,639 748,359
Adjusted for:
- Depreciation 6,392,131 7,089,799
- Loss on disposal of 142,257 104,340
property, plant and equipment
- Realised loss (gains) on 183,495 (90,202)
available-for-sale shares
- Fair value adjustment on 123,989 (655,224)
financial assets through
profit and loss
- Share based payment expense 118,314 185,754
- Interest income (137,264) (6,763)
- Finance charges 543,557 253,477
- Share of income from (5,213) (9,587)
associate
- Unrealised foreign exchange 201,026 399,908
loss on foreign exchange held
Operating profit before 12,087,931 8,019,861
working capital changes
Adjustments for working
capital changes:
- (Increase) decrease in (504,404) 318,090
inventory
- Decrease (increase) in trade 1,946,900 (302,896)
and other receivables
- Decrease in prepaid expenses 1,729,149 1,607,108
and other assets
- Decrease in trade and other (2,128,856) (1,898,300)
payables
13,130,720 7,743,863
11. Segmental analysis
Operating segments are
identified on the basis of
internal management reports
about components of the Group
that are regularly reviewed by
the Chief Executive Officer in
order to allocate resources to
the segments and to assess
their performance. Information
reported to the Group's Chief
Executive Officer for the
purposes of resource
allocation and assessment of
segment performance is focused
on the region of operation.
For the purposes of the
segmental report, the
information on the operating
segments have been aggregated
into the principal regions of
operations of the Group. The
Group's reportable segments
under IFRS 8 are therefore:
- Africa: Derives revenue from the provision of drilling services.
- Rest of world: Derives revenue from the provision of drilling services and related logistic, equipment rental and information technology support services.
Information regarding the
Group's operating segments is
reported below. At 30 June
2017, management reviewed the
composition of the Group's
operating segments and the
allocations of operations to
the reportable segments.
CAPITAL DRILLING LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the six months ended 30 June 2017
11. Segmental analysis (continued)
Segment revenue and results:
The following is an analysis of the Group's revenue and results by reportable segment:
For the six months ended 30 June 2017 Africa Rest of World Consolidated
$ $ $
External revenue 55,188,168 7,144,242 62,332,410
Segmental gross profit 19,050,428 (1,616,019) 17,434,409
Administration costs and depreciation, net of other income (9,580,383) (1,011,286) (10,591,669)
Segment profit (loss) 9,470,045 (2,627,305) 6,842,470
Central administration costs and depreciation, net of other income (1,608,537)
Profit from operations 5,234,203
Realised (loss) on available-for-sale shares (183,495)
Fair value adjustment on financial assets through profit and loss - Share Options (123,989)
Interest income 137,264
Share of income from associate 5,213
Finance charges (543,557)
Profit before tax 4,525,639
For the six months ended 30 June 2016 Africa Rest of World Consolidated
$ $ $
External revenue 40,361,890 1,352,911 41,714,801
Segmental gross profit 14,128,643 (1,396,457) 12,732,186
Administration costs and depreciation, net of other income (10,557,569) (1,208,812) (11,766,381)
Segment profit (loss) 3,571,074 (2,605,269) 965,805
Central administration costs and depreciation, net of other income (725,745)
Profit from operations 240,060
Realised gain on available-for-sale shares 90,202
Fair value adjustment on financial assets through profit and loss - Share Options 655,224
Interest income 6,763
Share of income from associate 9,587
Finance charges (253,477)
Profit before tax 748,359
The accounting policies of the reportable segments are the same as the Group's
accounting policies described in note 1. Segment profit represents the profit
earned by each segment without the allocation of central administration costs,
depreciation, other income, share of losses from associate, finance charges,
and income tax. This is the measure reported to the Group's Chief Executive
Officer for the purpose of resource allocation and assessment of segment
performance.
CAPITAL DRILLING LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the six months ended 30 June 2017
Six months ended
30 June 2017 30 June 2016
$ $
11. Segmental analysis (continued)
Segment assets:
Africa 138,185,655 121,774,887
Rest of world 29,162,399 14,801,971
Total segment assets 167,348,054 136,576,858
Head office companies 39,709,123 31,726,985
207,057,177 168,303,843
Eliminations * (103,959,649) (75,371,955)
Total assets 103,097,528 92,931,888
Segment liabilities:
Africa 31,694,352 24,714,022
Rest of world 17,712,149 10,505,807
Total segment liabilities 49,406,501 35,219,829
Head office companies 88,215,910 58,214,814
137,622,411 93,434,643
Eliminations * (102,488,227) (73,923,116)
Total liabilities 35,134,184 19,511,527
For the purposes of monitoring segment performance and allocating resources between segments the Group's Chief Executive Officer monitors the tangible, intangible and financial assets attributable to each segment. All assets are allocated to reportable segments with the exception of property, plant and equipment used by the head office companies, certain amounts included in other receivables, and cash and cash equivalents held by the head office
companies.
* Eliminations include inter-group accounts receivable, inter-group accounts payable and inter-group investments.
Other segment information:
Depreciation
Africa 5,610,218 6,105,737
Rest of world 616,229 833,078
Total segment depreciation 6,226,447 6,938,815
Head office companies 165,684 150,984
6,392,131 7,089,799
CAPITAL DRILLING LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the six months ended 30 June 2017
Six months ended
30 June 2017 30 June 2016
$ $
11. Segmental analysis
(continued)
Additions to property,
plant and equipment
Africa 3,610,324 4,089,444
Rest of world 162,315 -
Total segment additions 3,772,639 4,089,444
Head office companies 435,206 9,958
4,207,845 4,099,402
Information about major
customers
Included in revenues
arising from the Africa
segment are revenues of
approximately $35.7
million (2016: $35.4
million) which arose from
sales to customers that
represent more than 10%
of the Group's revenue.
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