Tullow Oil plc Annual Report 2011 - The Group

Notes to the Group financial statements continuedYear ended 31 December 2011Note 24. Other reserves continuedThe hedge reserve represents gains and losses on hedging instruments classed as cash flow hedges that are determined asan effective hedge.The treasury shares reserve represents the cost of shares in Tullow Oil plc purchased in the market and held by the Tullow OilEmployee Trust to satisfy awards held under the Group’s share incentive plans (see note 27).Note 25. Non-controlling interestAt 1 January 60.6 42.1 36.7Share of profit for the year 40.0 18.5 5.4Distribution to minority shareholders (25.0) – –At 31 December 75.6 60.6 42.1The non-controlling interest relates to Tulipe Oil SA, where the Group acquired a 50% controlling shareholding during 2007.Note 26. Cash flows from operating activities2011$m2010$m2011$m2009$m*Restated2010$mProfit before taxation 1,072.9 179.2Adjustments for:Depletion, depreciation and amortisation 533.8 367.3Impairment loss 51.0 4.3Impairment reversal (17.4) –Exploration costs written off 120.6 154.7Profit on disposal of oil and gas assets – (0.5)Profit on disposal of other assets (2.0) –Decommissioning expenditure (14.2) (10.3)Share-based payment charge 28.5 11.9Loss on hedging instruments (27.2) 27.7Finance revenue (36.6) (15.1)Finance costs 122.9 70.1Operating cash flow before working capital movements 1,832.3 789.3Increase in trade and other receivables (91.9) (66.7)Increase in inventories (43.8) (56.3)Increase in trade payables 206.5 151.7Cash generated from operations 1,903.1 818.0* Certain numbers shown above do not correspond to the 2010 financial statements as a result of a retrospective restatement as set out in note 1.150Tullow Oil plc 2011 Annual Report and Accounts