REG - Tullow Oil PLC - 2014 Full Year Financial Results <Origin Href="QuoteRef">TLW.L</Origin> - Part 2
11/02/2015 07:01
- Part 2: For the preceding part double click ID:nRSK5794Ea
- - - (0.4) (0.4) - (0.4)
Share-based payment charges - - - - - 59.5 59.5 - 59.5
Dividends paid - - - - - (182.3) (182.3) - (182.3)
Distribution to non-controlling interests - - - - - - - (15.0) (15.0)
At 31 December 2014 147.0 606.4 (205.7) 401.6 740.9 2,305.8 3,996.0 24.3 4,020.3
1. The foreign currency translation reserve represents exchange gains and
losses arising on translation of foreign currency subsidiaries, monetary items
receivable from or payable to a foreign operation for which settlement is
neither planned nor likely to occur, which form part of the net investment in
a foreign operation, and exchange gains or losses arising on long-term foreign
currency borrowings which are a hedge against the Group's overseas
investments.
2. The hedge reserve represents gains and losses on derivatives classified
as effective cash flow hedges.
3. Other reserves include the merger reserve and the treasury shares reserve
which represents the cost of shares in Tullow Oil plc purchased in the market
and held by the Tullow Oil Employee Trust to satisfy awards held under the
Group's share incentive plans.
Condensed consolidated cash flow statement Year ended 31 December 2014
Notes 2014$m 2013$m
Cash flows from operating activities
(Loss)/profit before taxation (2,047.4) 313.2
Adjustments for:
Depletion, depreciation and amortisation 621.8 591.9
Loss/(profit) on disposal 9 482.4 (29.5)
Goodwill impairment 10 132.8 -
Exploration costs written off 11 1,657.3 870.6
Impairment of property, plant and equipment 12 595.9 52.7
Decommissioning expenditure (20.4) (6.7)
Share-based payment charge 39.5 41.3
(Gain)/loss on hedging instruments (50.8) 19.7
Finance revenue (9.6) (43.7)
Finance costs 143.2 91.6
Operating cash flow before working capital movements 1,544.7 1,901.1
Decrease in trade and other receivables 29.9 75.8
Decrease/(increase) in inventories 61.0 (28.9)
(Decrease)/increase in trade payables (119.6) 49.6
Cash flows from operating activities 1,516.0 1,997.6
Income taxes paid (34.2) (252.3)
Net cash from operating activities 1,481.8 1,745.3
Cash flows from investing activities
Proceeds from disposals 9 21.3 80.3
Purchase of subsidiaries - (392.8)
Purchase of intangible exploration and evaluation assets (1,255.1) (1,268.5)
Purchase of property, plant and equipment (1,098.3) (740.8)
Finance revenue 4.6 34.3
Net cash used in investing activities (2,327.5) (2,287.5)
Cash flows from financing activities
Net proceeds from issue of share capital 3.3 6.0
Debt arrangement fees (22.2) (13.5)
Repayment of bank loans (1,202.1) (1,236.5)
Drawdown of bank loan 1,749.8 1,447.7
Issue of senior loan notes 650.0 650.0
Repayment of obligations under finance leases (1.1) (3.3)
Finance costs (172.9) (103.5)
Dividends paid (182.3) (167.4)
Distribution to non controlling interests (15.0) (16.0)
Net cash generated by financing activities 807.5 563.5
Net (decrease)/increase in cash and cash equivalents (38.2) 21.3
Cash and cash equivalents at beginning of year 352.9 330.2
Cash transferred to held for sale 16.2 0.6
Foreign exchange (loss)/gain (11.9) 0.8
Cash and cash equivalents at end of year 319.0 352.9
Notes to the preliminary financial statements
Year ended 31 December 2014
1. Basis of Accounting and Presentation of Financial Information
Whilst the financial information in this preliminary announcement has been
prepared in accordance with International Financial Reporting Standards (IFRS)
and International Financial Reporting Interpretation Committee (IFRIC)
interpretations adopted for use by the European Union, with those parts of the
Companies Act 2006 applicable to companies reporting under IFRS and with the
requirements of the United Kingdom Listing Authority (UKLA) Listing Rules,
this announcement does not contain sufficient information to comply with IFRS.
The Group will publish full financial statements that comply with IFRS in
March 2015.
The financial information for the year ended 31 December 2014 does not
constitute statutory accounts as defined in sections 435 (1) and (2) of the
Companies Act 2006. Statutory accounts for the year ended 31 December 2013
have been delivered to the Registrar of Companies and those for 2014 will be
delivered following the Company's annual general meeting. The auditor has
reported on these accounts; their reports were unqualified, did not include a
reference to any matters to which the auditor drew attention by way of
emphasis of matter and did not contain a statement under section 498 (2) or
(3) of the Companies Act 2006.
The accounting policies applied are consistent with those adopted and
disclosed in the Group's financial statements for the year ended 31 December
2013. There have been a number of amendments to accounting standards and new
interpretations issued by the International Accounting Standards Board which
were applicable from 1 January 2014; however these have not had a material
impact on the accounting policies, methods of computation or presentation
applied by the Group.
2. Earnings per Share
The calculation of basic earnings per share is based on the loss for the year
after taxation attributable to equity holders of the parent of $1,555.7
million (2013: $169.0 million, profit) and a weighted average number of shares
in issue of 910.1 million (2013: 908.3 million).
The calculation of diluted earnings per share is based on the profit for the
year after taxation as for basic earnings per share. The number of shares
outstanding, however, is adjusted to show the potential dilution if employee
share options are converted into ordinary shares. The weighted average number
of ordinary shares is increased by 13.3 million (2013: 6.1 million) in respect
of employee share options, resulting in a diluted weighted average number of
shares of 923.4 million (2013: 914.4 million).
3. Dividends
During the year the Company paid a final 2013 dividend of 8.0 pence per share
and an interim 2014 dividend of 4.0 pence per share, a total dividend of 12.0
pence per share (2013: 12.0 pence per share). The Directors intend to
recommend no final 2014 dividend for approval at the AGM.
4. 2014 Annual Report and Accounts
The Annual Report and Accounts will be mailed on 17 March 2015 only to those
shareholders who have elected to receive it. Otherwise, shareholders will be
notified that the Annual Report and Accounts is available on the website
(www.tullowoil.com). Copies of the Annual Report and Accounts will also be
available from the Company's registered office at 9, Chiswick Park, 566
Chiswick High Road, London W4 5XT.
5. Annual General Meeting
The Annual General Meeting is due to be held at Haberdashers' Hall, 18 West
Smithfield, London EC1A 9HQ on Wednesday 30 April 2015 at 12 noon.
6. Segmental reporting
Information reported to the Group's Chief Executive Officer for the purposes
of resource allocation and assessment of segment performance is focused on the
three geographical regions within which the Group operates. The Group has one
class of business, being the exploration, development, production and sale of
hydrocarbons and therefore the Group's reportable segments under IFRS 8 are
West and North Africa; South and East Africa; and Europe, South America and
Asia. The following tables present revenue, profit and certain asset and
liability information regarding the Group's business segments for the year
ended 31 December 2014 and 31 December 2013.
West & South & Europe, Unallocated Total
North Africa East Africa South America $m $m
$m $m & Asia
$m
2014 1,957.1 - 255.8 - 2,212.9
Sales revenue by origin
Segment result 70.2 (74.9) (1,249.6) (35.5) (1,289.8)
Loss on disposal of other assets (482.4)
Unallocated corporate expenses (192.4)
Operating Loss (1,964.6)
Gain on hedging instruments 50.8
Finance revenue 9.6
Finance costs (143.2)
Loss before tax (2,047.4)
Income tax credit 407.5
Loss after tax (1,639.9)
Total assets 6,587.0 2,524.3 2,062.9 247.5 11,421.7
Total liabilities (2,474.0) (310.8) (1,353.1) (3,263.5) (7,401.4)
Other segment information
Capital expenditure:
Property, plant and equipment 1,242.7 1.6 231.4 59.6 1,535.3
Intangible exploration and evaluation assets 394.3 676.4 334.8 - 1,405.5
Depletion, depreciation and amortisation (467.8) (0.9) (110.5) (42.6) (621.8)
Impairment of property, plant and equipment (255.6) - (340.3) - (595.9)
Exploration costs written off (800.7) (74.3) (782.3) - (1,657.3)
Goodwill impairment - - (132.8) - (132.8)
6. Segmental reporting contd.
West & South & Europe, Unallocated Total
North Africa East Africa South America $m $m
$m $m & Asia
$m
2013 2,247.5 - 399.4 - 2,646.9
Sales revenue by origin
Segment result 1,285.5 (339.6) (376.1) - 569.8
Profit on disposal of oil and gas assets 29.5
Unallocated corporate expenses (218.5)
Operating profit 380.8
Loss on hedging instruments (19.7)
Finance revenue 43.7
Finance costs (91.6)
Profit before tax 313.2
Income tax expense (97.1)
Profit after tax 216.1
Total assets 5,940.4 2,173.3 3,212.0 182.9 11,508.6
Total liabilities (1,943.6) (276.4) (1,771.6) (2,070.6) (6,062.2)
Other segment information
Capital expenditure:
Property, plant and equipment 876.7 2.3 164.2 27.2 1,070.4
Intangible exploration and evaluation assets 262.9 570.0 669.8 - 1,502.7
Depletion, depreciation and amortisation (425.5) (0.5) (142.2) (23.7) (591.9)
Impairment of property, plant and equipment - - (52.7) - (52.7)
Exploration costs written off (113.4) (334.9) (422.3) - (870.6)
Unallocated expenditure and net liabilities include amounts of a corporate
nature and not specifically attributable to a geographic area. The liabilities
comprise the Group's external debt and other non attributable corporate
liabilities.
7. Operating (loss)/profit
2014$m 2013$m
Cost of sales
Operating costs 511.5 524.4
Depletion and amortisation of oil and gas assets 572.2 565.1
Underlift and overlift 27.1 49.7
Share-based payment charge included in cost of sales 1.6 1.8
Other cost of sales 4.3 12.8
Total cost of sales 1,116.7 1,153.8
Administrative expenses
Share-based payment charge included in administrative expenses 37.9 39.5
Depreciation of other fixed assets 49.6 26.8
Other administrative costs 104.9 152.2
Total administrative expenses 192.4 218.5
8. Taxation on (loss)/profit on ordinRecent news on Tullow Oil
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