Financial Performance

Summary Consolidated Cash Flows*

For the year ended 31 December (USD)
2018 (restated)** 2019 2020
Operating activities
Profit for the year before income tax 77,060,709 40,870,927 30,968,231
Adjustments for:
Depreciation of property and equipment 28,200,128 45,555,024 57,577,667
Amortisation of intangible assets 122,547 121,861 141,582
Amortisation of right of use assets - 5,348,361 5,048,698
Impairment of non-current assets - - 5,100,062
Loss on sale of asset - - 361,898
Provision for impairment of trade receivables and contract assets 1,250,607 (2,776,252) 2,558,649
Provision for impairment of inventory - 253,329 686,478
Provision for impairment of investment - - 535,000
End of service employment benefits 1,309,036 4,899,967 5,348,358
Share-based payments expenses - 11,341,219 3,845,870
Other provisions 280,017 1,443,181 410,669
Interest on bank credit facilities and loans 31,233,612 88,702,079 65,218,703
Finance income (2,738,844) (512,013) (801,944)
Other income (678,168) (527,344) -
Share of results of investment in a joint venture (234,382) (774,898) 446,184
Gain on bargain purchase (46,252,908) (11,877,674) -
Fair value loss on derivative financial instrument 4,340,180 (771,134) 1,178,052
Cash from operations before working capital changes 93,892,534 181,296,633 178,624,157
Inventories 1,436,399 (4,692,539) (4,241,600)
Accounts receivable (24,482,911) (33,371,207) (1,134,623)
Contract assets (36,369,649) (5,171,661) 8,549,180
Due from related parties (71,729) (4,363,573) 1,138,331
Prepayments and other receivables 13,605,597 (24,493,097) 310,688
Trade and other payables 8,781,106 69,304,116 (2,076,001)
Due to related parties  (2,211,238) 2,118 1,032
Cash flows from operations 54,580,109 178,510,790 181,169,100
Income tax paid (3,036,313) (2,837,570) (9,660,529)
Provisions paid (344,160) (3,701,740) (6,056,143)
Net cash flows from operating activities 51,199,636 171,971,480 165,452,428
Investing activities
Purchase of intangible assets (12,788) (12,788) (23,250)
Purchase of property and equipment*** (93,682,762) (179,326,324) (117,629,564)
Proceeds from sale of property and equipment - - 111,378
Acquisitions of subsidiaries and new rigs (277,639,472) (76,237,278) -
Interest received 2,738,844 512,013 801,944
Movement in escrow account (10,800,000) -
Investment in joint venture - (1,181,295) -
Proceeds from non-controlling interest share of capital at establishment date - 4,621 -
Net cash flows used in investing activities (379,396,178) (256,228,263) (116,739,492)
Financing activities
Proceeds from interest-bearing loans and borrowings** 602,871,261 179,493,220 67,377,226
Repayment of interest-bearing loans and borrowings (238,038,447) (351,018,420) (85,336,755)
Proceeds from bond issuance - 325,000,000 -
Payments of loan/bonds transaction costs** (33,566,505) (11,841,033) -
Purchase of Treasury shares - (3,501,200) (21,488,066)
Interest paid (19,958,945) (56,269,830) (58,329,222)
Payment of lease liabilities - (6,945,750) (5,680,755)
Dividend Payments - (1,934,284) (2,367,975)
Net cash flows from financing activities 311,307,364 72,982,703 (105,825,547)
Net (decrease)/increase in cash and cash equivalents (16,889,178) (11,274,080) (57,112,611)
Cash and cash equivalents at the beginning of the year 136,964,417 130,875,239 119,601,159
Cash and cash equivalents at the end of the year 120,075,239 119,601,159 62,488,548

*The Financial Information represented of the Group is a continuation of the existing business and reflects the carrying values of the Subsidiary as if the Subsidiary had always been consolidated from the earliest period presented even though the Company was not in existence before 22 May 2016. Any difference between the consideration paid and nominal value of the share capital of the Subsidiary is recorded as a merger reserve.

** For the year ended 31 December 2018, net of “proceeds from loans and borrowings” and “payments of loan transaction costs” represent “borrowings drawn during the year” amounting to USD 569,304,756 as disclosed in Note 20 of the 2019 Annual Report.

*** Purchase of property and equipment excludes non-cash transactions amounting to USD 59,557,548.