Capital Regulatory News (CAPD)

H1 2019

H1 2018

Average Fleet Size (No. of drill rigs)

91

94

Fleet Utilisation (%)

52

46

ARPOR ($)

183,000

200,000

Capex ($ m)

6.4

5.4

Revenue ($ m)

54.8

54.5

EBITDA1 ($ m)

12.7

12.5

EBIT1 ($ m)

7.9

5.8

Net Profit After Tax ($ m)

5.1

2.8

Cash From Operations ($ m)

10.5

7.2

Earnings per Share

Basic (cents)

3.7

2.0

Diluted (cents)

3.7

2.0

Interim Dividend per Share (cents)

0.7

0.6

Net Asset Value per Share1 (cents)

58.3

52.2

Return on Capital Employed (%)

21.4

17.7

Return on Total Assets (%)

15.6

11.8

Net Cash1 ($ m)

8.5

3.4

Net Cash/Equity (%)

10.7

4.7

*All amounts are in USD unless otherwise stated

CAPITAL DRILLING LIMITED

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 June 2019

Six months ended

Notes

30 June 2019

30 June 2018

 $

 $

Revenue

5

54,832,471

54,476,675

Cost of sales

(33,409,735)

(33,687,558)

Gross profit

21,422,736

20,789,117

Administration costs

(8,772,356)

(8,281,941)

Depreciation

(4,729,080)

(6,714,923)

Profit from operations

7,921,300

5,792,253

Share of loss from associate

(227,904)

(246,441)

Interest income

168,966

59,866

Finance charges

(391,899)

(533,081)

Loss on disposal of FVPTL Investments

(141,240)

(49,225)

Fair value gain on FVPTL Investments

259,262

-

Fair value adjustment on financial assets through profit and loss - Share Options

-

(47,236)

Profit before taxation

7,588,485

4,976,136

Taxation

3

(2,492,887)

(2,208,150)

Profit for the period

5,095,598

2,767,986

Other comprehensive (loss) income:

Other comprehensive (loss) income to be reclassified to profit or loss in subsequent periods:

Exchange differences on translation of foreign operations

-

18,510

Share of exchange differences on translation of foreign operations from associate

-

(22,559)

Fair value through other comprehensive income shares

-

(658,802)

Cumulative gain reclassified to profit and loss on sale of fair value through other comprehensive income shares

26,267

49,225

Total other comprehensive income /(loss) for the period

26,267

(613,626)

Total comprehensive income for the period

5,121,865

2,154,360

Earnings per share:

Basic (cents per share)

6

3.7

2.0

Diluted (cents per share)

6

3.7

2.0

CAPITAL DRILLING LIMITED

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

30 June 2019

Audited

Notes

 30 June 2019

31 December 2018

ASSETS

 $

 $

Non-current assets

Property, plant and equipment

8

40,274,763

38,819,190

Investment in associate

9

1,254,463

1,482,368

Deferred taxation asset

9,102

9,102

Right of use assets

4

464,709

-

Total non-current assets

42,003,037

40,310,660

Current assets

Inventory

18,378,640

19,785,408

Trade and other receivables

15,339,899

15,770,617

Prepaid expenses and other assets

9,238,087

4,777,803

Taxation

317,401

253,776

Investments

7,657,329

5,705,113

Cash and cash equivalents

15,538,367

19,888,764

Total current assets

66,469,723

66,181,481

Total assets

108,472,760

106,492,141

EQUITY AND LIABILITIES

Equity

Share capital

10

13,625

13,581

Share premium

10

22,495,287

22,231,662

Equity-settled employee benefits reserve

657,940

409,995

Foreign currency translation reserve

-

-

Investments revaluation reserve

-

(26,267)

Retained earnings

56,148,149

53,103,024

Total equity

79,315,001

75,731,995

Non-current liabilities

Long-term liabilities

11

7,000,000

9,000,000

Deferred taxation liability

14,939

9,320

Right of use lease liability

4

480,488

-

Total non-current liabilities

7,495,427

9,009,320

Current liabilities

Trade and other payables

17,629,365

18,064,237

Taxation

3,982,158

3,656,705

Current portion of long-term liabilities

11

50,809

29,884

Total current liabilities

21,662,332

21,750,826

Total equity and liabilities

108,472,760

106,492,141

CAPITAL DRILLING LIMITED

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

30 June 2019

Reserves

Share capital

Share premium

Retained earnings

Equity-settled employee benefits reserve

Foreign currency translation reserve

Investments revaluation reserve

Total equity

 $

 $

 $

 $

 $

 $

 $

Balance at 31 December 2017 - Audited

13,524

21,933,772

47,823,617

432,476

(18,510)

(126,589)

70,058,290

Issue of shares

57

297,890

-

(297,947)

-

-

-

Recognition of share-based payments

-

-

-

173,299

-

-

173,299

Total comprehensive income (loss) profit for the period

-

-

2,767,986

-

(4,049)

(609,577)

2,154,360

-

Profit for the period

-

-

2,767,986

-

-

-

2,767,986

-

Other comprehensive loss for the period

-

-

-

-

(4,049)

(609,577)

(613,626)

Dividends paid (1.2 cents per share) - Note 7

-

-

(1,629,750)

-

-

- 

(1,629,750)

Balance at 30 June 2018

13,581

22,231,662

48,961,853

307,828

(22,559)

(736,166)

70,756,199

Balance at 31 December 2018 - Audited

13,581

22,231,662

53,103,024

409,995

-

(26,267)

75,731,995

Restatement of opening balance due to IFRS 16 - Note 4

-

-

(6,739)

-

-

-

(6,739)

Restated Opening balance 31 December 2018

13,581

22,231,662

53,096,285

409,995

-

(26,267)

75,725,256

Issue of shares

44

263,625

-

 (263,669)

-

-

-

Recognition of share-based payments

-

-

-

511,614

-

-

511,614

Total comprehensive income for the period

-

-

5,095,598

-

-

26,267

5,121,865

-

Profit for the period

-

-

 5,095,598

-

-

-

5,095,598

-

Other comprehensive income for the period

-

-

-

-

-

26,267

26,267

Dividends paid (1.5 cents per share) - Note 7

-

-

(2,043,734)

-

-

- 

(2,043,734)

Balance at 30 June 2019

13,625

22,495,287

56,148,149

657,940

-

-

79,315,001

CAPITAL DRILLING LIMITED

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended 30 June 2019

Six months ended

Notes

30 June 2019

30 June 2018

 $

 $

Operating activities:

Cash from operations

12

10,464,047

7,210,838

Interest received

168,966

59,866

Finance charges paid

(370,974)

(542,303)

Taxation paid

(2,225,440)

(1,480,837)

Net cash generated from operating activities

8,036,599

5,247,564

Investing activities:

Purchase of property, plant and equipment

8

(6,383,879)

 (5,390,068)

Proceeds from disposal of property, plant and equipment

227

128,505

Acquisition of investments

(2,132,667)

-

Proceeds on disposal of investments

465,980

311,451

Net cash used in investing activities

 (8,050,339)

(4,950,112)

Financing activities:

Long-term liabilities repaid

11

(2,000,000)

-

Dividend paid

7

(2,043,734)

(1,629,750)

Repayment of lease liabilities

(40,781)

-

Net cash used in financing activities

(4,084,515)

(1,629,750)

Net decrease in cash and cash equivalents

(4,098,255)

(1,332,298)

Cash and cash equivalents at the beginning of the period

19,888,764

16,911,383

Translation of foreign currency cash and cash equivalent

(252,142)

(198,515)

Cash and cash equivalents at the end of the period

15,538,367

15,380,570

CAPITAL DRILLING LIMITED

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2019

1.

Basis of presentation and accounting policies

Preparation of the condensed consolidated interim financial statements

The condensed consolidated interim financial statements of Capital Drilling Limited and Subsidiaries ("Capital Drilling" or the "Group") as at and for the six months ended 30 June 2019 (the "Interim Financial Statements") have been prepared in accordance with International Accounting Standard ("IAS") No. 34, "Interim Financial Reporting". They should be read in conjunction with the annual consolidated financial statements and the notes thereto in the Group's Annual Report for the year ended 31 December 2018 which have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The Interim Financial Statements have been reviewed in terms of International Standard on Review Engagements (ISRE) 2410.

Accounting policies

The condensed consolidated interim financial statements have been prepared under the going concern basis under the historical cost convention, except for certain financial instruments which are measured at fair value. The Group has adopted a number of new standards and interpretations effective on or before 1 January 2019, which were described in note 2 of the consolidated financial statements for the year ended 31 December 2018. The adoption of these standards and interpretations did not have a material impact on the financial statements. The same accounting policies, presentation and methods of computation have been followed in these condensed consolidated financial statements as were applied in the preparation of the Group's financial statements for the year ended 31 December 2018 except for new accounting policies adopted during the year described in Note 4.

The preparation of financial statements in conformity with IFRS recognition and measurement principles requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Management reviews its estimates on an on-going basis using currently available information. Changes in facts and circumstances may result in revised estimates and actual results could differ from those estimates.

2.

Operations in the interim period

Capital Drilling Limited is incorporated in Bermuda. The Group provides drilling services including but not limited to exploration, development, grade control and blast hole drilling services to mineral exploration and mining companies located in emerging and developing markets. The Group also provides some equipment rental and information technology services to mining and mining related companies.

During the six months ended 30 June 2019, the Group provided drilling services in Egypt, Mauritania, Mali, Tanzania, Botswana and Ivory Coast.

The seasonality of the Group's operations has no significant impact on the condensed consolidated interim financial statements.

3.

Taxation

Capital Drilling Limited is incorporated in Bermuda. No taxation is payable on the results of the Bermuda business. Taxation for other jurisdictions is calculated in terms of the legislation and rates prevailing in the respective jurisdictions.

CAPITAL DRILLING LIMITED

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2019

3.

Taxation (continued)

The Group operates in multiple jurisdictions with complex legal and tax regulatory environments. In certain of these jurisdictions, the Group has taken income tax positions that management believes are supportable and are intended to withstand challenge by tax authorities. Some of these positions are inherently uncertain and include those relating to transfer pricing matters and the interpretation of income tax laws. The Group periodically reassesses its tax positions. Changes to the financial statement recognition, measurement, and disclosure of tax positions is based on management's best judgement given any changes in the facts, circumstances, information available and applicable tax laws. Considering all available information and the history of resolving income tax uncertainties, the Group believes that the ultimate resolution of such matters will not likely have a material effect on the Group's financial position, statements of operations or cash flows.

Due to the tax charge calculations in certain countries in which the Group operates being based on revenues instead of profits, the consolidated taxation expense for the period is not directly linked to profits and losses.

4.

IFRS 16 - Leases

IFRS 16 'Leases' replaces IAS 17 'Leases' along with three Interpretations (IFRIC 4 'Determining whether an Arrangement contains a Lease', SIC 15 'Operating Leases-Incentives' and SIC 27 'Evaluating the Substance of Transactions Involving the Legal Form of a Lease'). The new Standard has been applied using the modified retrospective approach, with the cumulative effect of adopting IFRS 16 being recognised in equity as an adjustment to the opening balance of retained earnings for the current period. Prior periods have not been restated. This means comparative information is still reported under IAS 17 and IFRIC 4.

For any new contracts entered into on or after 1 January 2019, the Group considers whether a contract is, or contains a lease. A lease is defined as 'a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration'. To apply this definition the Group assesses whether the contract meets three key evaluations which are whether:

·; the contract contains an identified asset, which is either explicitly identified in the contract or implicitly specified by being identified at the time the asset is made available to the Group

·; the Group has the right to obtain substantially all of the economic benefits from use of the identified asset throughout the period of use, considering its rights within the defined scope of the contract

·; the Group has the right to direct the use of the identified asset throughout the period of use. The Group assess whether it has the right to direct 'how and for what purpose' the asset is used throughout the period of use.

Measurement and recognition of leases as a lessee

At lease commencement date, the Group recognises a right-of-use asset and a lease liability on the balance sheet. The right-of-use asset is measured at cost, which is made up of the initial measurement of the lease liability, any initial direct costs incurred by the Group, an estimate of any costs to dismantle and remove the asset at the end of the lease, and any lease payments made in advance of the lease commencement date (net of any incentives received). The Group depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The Group also assesses the right-of-use asset for impairment when such indicators exist.

CAPITAL DRILLING LIMITED

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2019

4.

IFRS 16 - Leases (continued)

Measurement and recognition of leases as a lessee (continued)

At the commencement date, the Group measures the lease liability at the present value of the lease payments unpaid at that date, discounted using the interest rate implicit in the lease if that rate is readily available or the Group's incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate. Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is remeasured to reflect any reassessment or modification, or if there are changes in in-substance fixed payments.

The Group has applied judgement to determine the lease term for some lease contracts in which it is a lessee that include renewal options. The assessment of whether the Group is reasonably certain to exercise such options impact the lease terms, which significantly affects the amount of lease liabilities and rights of use of assets recognised.

The Group has elected to account for short-term leases and leases of low-value assets using the practical expedients. Instead of recognising a right-of-use asset and lease liability, the payments in relation to these are recognised as an expense in profit or loss on a straight-line basis over the lease term.

Transition

Previously, the Group classified property leases as operating leases under IAS 17. Some leases include an option to renew the lease after the end of the non-cancellable period.

At transition, for leases classified as operating leases under IAS 17, lease liabilities were measured at the present value of the remaining lease payments, discounted at the Group's incremental borrowing rate as at 01 January 2019. Rights-of-use of assets are measured at either:

- their carrying amount as if IFRS 16 had been applied since the commencement date, discounted using the lessee's incremental borrowing rate at the date of initial application.

- an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments.

The Group used the following practical expedients when applying IFRS 16 to leases previously classified as operating lease under IAS 17:

- Applied the exemption not to recognise rights-of-use assets and liabilities for leases with less than 12 months of lease term.

- Exclude initial direct costs from measuring the right-of-use asset at the date of initial application.

- Used hindsight when determining the lease term if the contract contains options to extend or terminate the lease.

Impacts on financial statements

(i) Impacts on transition

On transition to IFRS 16, the Group recognised additional right-of-use assets and additional lease liabilities, recognising the difference in retained earnings. The impact on transition is summarised below.

1 January 2019

 $

Rights-of-use assets

514,530

Lease liabilities

(521,269)

Retained earnings

(6,739)

When measuring lease liabilities for leases that were classified as operating leases, the Group discounted lease payments using its incremental borrowing rate at 1 January 2019. The weighted average rate applied is 5%.

CAPITAL DRILLING LIMITED

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2019

4.

IFRS 16 - Leases (continued)

Impacts on financial statements (continued)

1 January 2019

 $

Total operating lease commitments at 31 December 2018 as disclosed in the Group's consolidated financial statements

1,632,498

Discounted using the incremental borrowing rate at 1 January 2019

1,501,297

Recognition exemption: Leases with remaining lease term of less than 12 months

 (980,028)

Total lease liabilities recognised under IFRS 16 at 1 January 2019

521,269

(ii) Impacts for the period

As a result of applying IFRS 16, in relation to the leases that were previously classified as operating leases, the Group recognised $ 464,709 of right-of-use assets and $ 480,488 of lease liabilities as at 30 June 2019.

Also, in relation to those leases under IFRS 16, the Group has recognised depreciation and interest costs, instead of operating lease expense. During the six months ended 30 June 2019, the Group recognised $ 49,821 of depreciation charges and $ 16,352 of interest costs from these leases.

Six months ended

30 June 2019

30 June 2018

 $

 $

5.

IFRS 15 'Revenue from Contracts with Customers'

Revenue from the rendering of services comprises:

Drilling revenue

53,926,977

53,416,151

Equipment rental

223,400

839,718

Information technology revenue

682,094

220,805

54,832,471

54,476,674

6.

Earnings per share

Basic Earnings per share:

The profit and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows:

Profit for the period used in the calculation of basic earnings per share

5,095,598

2,767,986

Weighted average number of ordinary shares for the purposes of basic earnings per share

136,027,158

135,525,192

Basic earnings per share (cents)

3.7

2.0

CAPITAL DRILLING LIMITED

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2019

Six months ended

30 June 2019

30 June 2018

$

$

6.

Earnings per share (continued)

Diluted earnings per share:

The profit used in the calculations of all diluted earnings per share measures are the same as those used in the equivalent basic earnings per share measures, as outlined above.

Weighted average number of ordinary shares used in the calculation of basic earnings per share

 136,027,158

135,525,192

- Dilutive share options #

350,476

252,006

Weighted average number of ordinary shares used in the calculation of diluted earnings per share

136,377,635

135,777,198

Diluted earnings per share (cents)

3.7

2.0

# For the purposes of calculating diluted earnings per share, the share options of 2.16 million [2018: 2.34 million] were excluded as they are anti-dilutive as the exercise price is higher than the current share price.

7.

Dividends

During the six months ended 30 June 2019, a dividend of 1.5 cents per ordinary share, totalling $2,043,734 (six months ended 30 June 2018: 1.2 cents per ordinary share, totalling $1,629,751) was declared and paid.

8.

Property, plant and equipment

During the six months ended 30 June 2019, the Group acquired $6.4 million (2018: $5.4 million) of drilling rigs and other assets to expand its operations and for the replacement of existing assets.

The Group disposed of property, plant and equipment with a net carrying amount of $0.2 million (2018: $0.4 million) during the period. A loss of $0.2 million (2018: $0.3 million) was incurred on the disposal of property, plant and equipment.

At the end of each reporting period, the Group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets may be impaired. As at 30 June 2019, there was no indication of impairment.

CAPITAL DRILLING LIMITED

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2019

Six months ended

30 June 2019

30 June 2018

$

$

9.

Investment in associate

During the six months ended 30 June 2019, the Group maintained its 38.76% interest in MSA Mineral Services Analytical (Canada) Inc. ("MSA") (formerly known as A2 Global Ventures Inc.). MSA is headquartered in Vancouver, Canada, where it operates a central hub laboratory, supported by feeder laboratories in Guyana and Nigeria providing laboratory testing services to the mining and exploration industries, particularly in emerging markets. The consideration for the acquisition was $2.9 million including transaction costs. The investment in MSA, is accounted using the equity method.

10.

Issued capital and share premium

Authorised capital

2,000,000,000 (2018: 2,000,000,000) ordinary shares of 0.01 cents (2018: 0.01 cents) each

200,000

200,000

Issued and fully paid:

136,248,953 (31 December 2018: 135,812,596) ordinary shares of 0.01 cents (31 December 2018: 0.01 cents) each

13,625

13,581

Share premium:

Balance at the beginning of the period

22,231,662

21,933,772

Issue of shares

263,625

297,890

Balance at the end of the period

22,495,287

22,231,662

On 3 April 2019, the Company issued 436,357 new common shares (valued at USD 263,625) pursuant to the Company's employee incentive scheme. The shares rank pari passu with the existing ordinary shares. Fully paid ordinary shares which have a par value of 0.01 cents, carry one vote per share and carry rights to dividends.

11.

Long term liabilities

Long term liabilities consist of a $12 million revolving credit facility ("RCF") provided by Standard Bank (Mauritius) Limited following a renewal of the Facilities Agreement on 30 October 2017. The interest rate on the RCF is the prevailing three-month US LIBOR (payable in arrears) plus a margin of 5.75%, and an annual commitment fee of 1.5% of the undrawn balance.

Security for the Standard Bank (Mauritius) Limited facility comprise:

- Upward corporate guarantees from Capital Drilling (T) Limited, Capital Drilling (Botswana) Proprietary Limited and Capital Drilling Ltd.

- A negative pledge over the assets of Capital Drilling (T) Limited and Capital Drilling Ltd.

CAPITAL DRILLING LIMITED

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2019

Six months ended

30 June 2019

30 June 2018

$

$

11.

Long term liabilities (continued)

As at the reporting date and during the year under review, the Group has complied with all covenants that attaches to the loan facilities.

Standard Bank (Mauritius) Limited

Balance at 1 January

9,029,884

12,041,585

Amounts received during the 6-month period

-

-

Interest accrued during the 6-month period

364,803

460,508

Interest paid during the 6-month period

(343,878)

(469,730)

Principal repayments during the 6-month period

(2,000,000)

-

7,050,809

12,032,363

Less: Current portion included under current liabilities

(50,809)

(32,363)

Due after more than one year

7,000,000

12,000,000

12.

Cash from operations

Profit before taxation

7,588,485

4,976,136

Adjusted for:

- Depreciation

4,729,080

6,714,923

- Loss on disposal of property, plant and equipment

198,999

273,881

- Realised gain on FVTOCI shares

-

(49,225)

- Fair value adjustment on financial assets through profit and loss

(259,262)

(47,236)

- Share based payment expense

511,615

173,299

- Interest income

(168,966)

(59,866)

- Finance charges

391,899

533,081

- Share of loss from associate

227,904

246,441

- IFRS 16 depreciation on rights of use assets

49,821

-

- Unrealised foreign exchange loss on foreign exchange held

252,142

198,515

Operating profit before working capital changes

13,521,717

12,959,949

Adjustments for working capital changes:

- Decrease in inventory

1,406,768

874,147

- Decrease / (Increase) in trade and other receivables

430,718

(1,732,003)

- Increase in prepaid expenses and other assets

(4,460,284)

(1,655,542)

- Decrease in trade and other payables

(434,872)

(3,235,713)

10,464,047

7,210,838

CAPITAL DRILLING LIMITED

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2019

13.

Segmental analysis

Operating segments are identified on the basis of internal management reports regarding components of the Group. These are regularly reviewed by the Chairman in order to allocate resources to the segments and to assess their performance. Operating segments are identified based on the regions of operations. 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, equipment rental and IT support services.

- Rest of world:

Derives revenue from the provision of drilling services, equipment rental and IT support services.

Information regarding the Group's operating segments is reported below. At 30 June 2019, management reviewed the composition of the Group's operating segments and the allocations of operations to the reportable segments.

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 2019

Africa

Rest of World

Consolidated

$

$

$

External revenue

54,317,249

515,221

 54,832,471

Segment profit (loss)

15,744,899

(7,131,884)

8,613,015

Central administration costs and depreciation, net of other income

(691,715)

Profit from operations

7,921,300

Realised loss on disposal of FVPTL shares

(141,240)

Fair Value gain on FVPTL Investments

259,262

Interest income

168,966

Share of losses from associate

(227,905)

Finance charges

(391,899)

7,588,485

CAPITAL DRILLING LIMITED

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2019

13.

Segmental analysis (continued)

For the six months ended 30 June 2018

Africa

Rest of World

Consolidated

$

$

$

External revenue

53,710,022

766,653

54,476,675

Segment profit (loss)

13,667,309

(5,502,934)

8,164,375

Central administration costs and depreciation, net of other income

(2,372,122)

Profit from operations

5,792,253

Realised loss on disposal of FVTOCI shares

(49,225)

Fair value adjustment on financial assets through profit and loss - Share Options

(47,236)

Interest income

59,866

Share of income from associate

(246,441)

Finance charges

(533,081)

Profit before tax

4,976,136

The accounting policies of the reportable segments are the same as the Group's accounting policies described in note 1. Segment profit (loss) represents the profit (loss) earned by each segment without allocation of central administration costs, depreciation, interest income, share of losses from associate, finance charges and income tax. This is the measure reported to the Chairman for the purpose of resource allocation and assessment of segment performance.

Six months ended

30 June 2019

30 June 2018

$

$

Segment assets:

Africa

79,140,037

170,241,123

Rest of world

6,857,843

14,982,961

Total segment assets

85,997,879

185,224,084

Head office companies

68,208,814

45,510,958

154,206,694

230,735,042

Eliminations *

(45,733,934)

(127,064,082)

Total assets

108,472,760

103,670,960

Segment liabilities:

Africa

38,483,677

45,658,320

Rest of world

9,417,165

7,370,827

Total segment liabilities

47,900,842

53,029,147

Head office companies

 75,243,590

105,378,810

123,144,432

158,407,957

Eliminations *

(93,986,673)

(125,493,196)

Total liabilities

29,157,759

32,914,761

CAPITAL DRILLING LIMITED

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2019

Six months ended

30 June 2019