2011 Annual Report PDF - Tullow Oil plc
2011 Annual Report PDF - Tullow Oil plc
2011 Annual Report PDF - Tullow Oil plc
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5<br />
Note 6. Bank loans<br />
Current<br />
Short-term borrowings 217.8 309.8<br />
<strong>2011</strong><br />
$m<br />
2010<br />
$m<br />
FINANCIAL STATEMENTS<br />
Non-current<br />
Term loans repayable<br />
– After one year but within two years 728.8 192.5<br />
– After two years but within five years 2,129.3 1,697.5<br />
2,858.1 1,890.0<br />
Company bank loans are stated net of unamortised arrangement fees of $85.3 million (2010: $81.3 million).<br />
Term loans and guarantees are secured by fixed and floating charges over the oil and gas assets (note 12) of the Group<br />
financial statements.<br />
Interest rate risk<br />
The interest rate profile of the Company’s financial assets and liabilities at 31 December <strong>2011</strong> was as follows:<br />
Fixed rate debt (291.6) – – (291.6)<br />
Floating rate debt (2,624.1) (160.2) – (2,784.3)<br />
Amounts due to subsidiaries at LIBOR + 1.7% (130.1) – – (130.1)<br />
Cash at bank at floating interest rate 8.3 0.1 7.1 15.5<br />
Amounts due from subsidiaries at LIBOR + 1.7% 2,223.5 386.1 – 2,609.6<br />
$<br />
$m<br />
Stg<br />
$m<br />
Other<br />
$m<br />
Total<br />
$m<br />
Net cash/(debt) (814.0) 226.0 7.1 (580.9)<br />
The profile at 31 December 2010 for comparison purposes was as follows:<br />
Fixed rate debt (386.4) (158.4) (544.8)<br />
Floating rate debt (1,655.0) – (1,655.0)<br />
Cash at bank at floating interest rate 20.6 2.7 23.3<br />
Amounts due from subsidiaries at LIBOR + 1.7% 2,118.5 – 2,118.5<br />
$<br />
$m<br />
Stg<br />
$m<br />
Total<br />
$m<br />
Net cash/(debt) 97.7 (155.7) (58.0)<br />
Cash at bank at floating interest rate consisted of deposits which earn interest at rates set in advance for periods ranging from<br />
overnight to one month by reference to market rates.<br />
Floating rate debt comprises bank borrowings at interest rates fixed in advance from overnight to three months at rates<br />
determined by US dollar LIBOR and sterling LIBOR. Fixed rate debt comprises bank borrowings at interest rates fixed in advance<br />
for periods greater than three months or bank borrowings where the interest rate has been fixed through interest rate hedging.<br />
The $3.5 billion Reserves Based Lending Facility incurs interest on outstanding debt at sterling or US dollar LIBOR plus an<br />
applicable margin. The outstanding debt is repayable in variable amounts (determined semi-annually) over the period to<br />
31 December 2015, or such time as is determined by reference to the remaining reserves of the assets, whichever is earlier.<br />
The $650 million Revolving Credit Facility is repayable in full on 31 December 2014. The facility incurs interest on outstanding<br />
debt at US dollar LIBOR plus an applicable margin.<br />
At the end of December <strong>2011</strong>, the headroom under the two facilities amounted to $826 million; $176 million under the $3.5 billion<br />
Reserves Based Lending Facility and $650 million under the Revolving Credit Facility. At the end of December 2010, the<br />
headroom under the two facilities amounted to $685 million; $175 million under the $2.5 billion Reserves Based Lending Facility<br />
and $510 million under the Revolving Credit Facility.<br />
161<br />
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