2008 Annual Report - SBM Offshore

More documents

Recommendations

Info

SBM Offshore Annual Report 2008 / Financial Statements 2008 103Services renderedRevenue from services rendered is recognised in proportion to the stage of completion of the transaction at the balance sheet date.The stage of completion is assessed on a cost to cost basis unless the physical progress significantly differs. An expected loss on acontract is recognised immediately in the income statement.Income taxThe Company is subject to income taxes in numerous jurisdictions. Significant judgement is required in determining the worldwideprovision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain duringthe ordinary course of business. The Company recognises liabilities for anticipated tax audit issues based on estimates of whetheradditional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded,such differences will influence the income tax and deferred tax provisions in the period in which such determination is made.Income tax on the profit or loss for the period presented comprises current and deferred tax. Income tax is recognised in the incomestatement except to the extent that it relates to items recognised directly in equity.Income tax expenses comprise corporate income tax due in countries of incorporation of the Company’s main subsidiaries levied onactual profits. Corporate income taxes which are levied on a deemed profit basis and withholding taxes in other jurisdictions are treatedas project taxes and included in gross margin.Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at thebalance sheet date, and any adjustment to tax payable in respect of previous years.Dividend distributionDividend distribution to the Company’s shareholders is recognised as a liability in the period in which the dividends are approved bythe Company’s shareholders.Use of estimatesIn the preparation of the financial statements, it is necessary for the management of the Company to make estimates and certainassumptions that can affect the valuation of the assets and liabilities and the outcome of the income statement. The actual outcomemay differ from these estimates and assumptions. Estimates and judgements are continually evaluated and are based on historicalexperience and other factors, including expectations of future events that are believed to be reasonable.In particular, significant areas of estimation, uncertainty and critical judgements in applying accounting policies that have the mostsignificant effect on amounts recognised in the financial statements are:• estimation of the anticipated useful life of the leased facilities;• lease classification;• revenue recognition on construction contracts based on the stage of completion method;• estimated impairment of intangible fixed assets;• estimated impact of variation orders and recoveries from clients where negotiations or discussions are at a sufficiently advancedstage.
104 SBM Offshore Annual Report 2008 / Financial Statements 20081. Segment reporting Segment informationThe primary segment-reporting format is determined to be business segments since the Company’srisks and rates of return are affected predominantly by differences in the products and servicesproduced. Secondary information is reported geographically.Business segmentsThe following tables present revenue and profit and certain asset and liability information regarding theCompany’s business segments for the years ended 31 December 2008 and 2007. For bothaforementioned periods there are no intersegment revenues.Year ended 31 December 2008 Lease % Turnkey % Consolidated(in US$000)Segment revenue 810,158 26.5 2,250,118 73.5 3,060,276Gross margin 256,348 157,268 413,616Other income 44 356 400Unallocated income and expenses ( 138,952)Operating profit (EBIT) 275,064Net financing costs ( 40,344)Share of profit of associates 2,535Income tax ( 9,380)Profit 227,875Assets and liabilitiesSegment assets 3,397,875 878,547 4,276,422Investment in associates 24 45 69Unallocated assets 68,453Total assets 4,344,944Segment liabilities 2,352,440 682,637 3,035,077Unallocated liabilities 68,982Total liabilities 3,104,059Other segment informationCapital expenditure• PP&E 936,251 46,014• Intangible fixed assets – 12,217Depreciation ( 234,118) ( 13,692)Amortisation – –
Page 2 and 3:
SBM OffshoreAnnual Report 2008Discl
Page 4 and 5:
SBM Offshore Annual Report 2008 / O
Page 6 and 7:
Page 8 and 9:
Page 10 and 11:
Page 12 and 13:
Page 14 and 15:
Page 16 and 17:
SBM Offshore Annual Report 2008 / R
Page 18 and 19:
Page 20 and 21:
Page 22 and 23:
Page 24 and 25:
Page 26 and 27:
Page 28 and 29:
Page 30 and 31:
Page 32 and 33:
Page 34 and 35:
Page 36 and 37:
Page 38 and 39:
Page 40 and 41:
Page 42 and 43:
Page 44 and 45:
Page 46 and 47:
Page 48 and 49:
Page 50 and 51:
Page 52 and 53:
Page 54 and 55: SBM Offshore Annual Report 2008 / R
Page 63 and 64: 62 SBM Offshore Annual Report 2008
Page 91 and 92: 90SBM Offshore Annual Report 2008 /
Page 93 and 94: 92SBM Offshore Annual Report 2008 /
Page 103: 102SBM Offshore Annual Report 2008
Page 115 and 116: 114SBM Offshore Annual Report 2008
Page 145 and 146: SBM Offshore N.V.Schiedam (The Neth
show all

2008 Annual Report - SBM Offshore

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?