FINANCIAL STATEMENTS 118 Financial statements ��������������������������������������119 Independent auditor’s report ������������������� 164 PUMA ENERGY ANNUAL REPORT 2020 CONSOLIDATED STATEMENT CONSOLIDATED STATEMENT OF OF INCOME COMPREHENSIVE INCOME For the years ended 31 December For the years ended 31 December in US$’000 Notes 2020 2019 in US$’000 2020 2019 Continuing operations Loss for the year (348,464) (791,783) Revenue from contracts with customers 10.1 9,943,649 14,597,831 Other comprehensive income/(loss) Cost of sales (8,738,931) (13,333,021) Exchange differences on translation of foreign operations, net of tax (57,673) (329,955) Gross profit 1,204,718 1,264,810 Profit/(loss) on assets at fair value through other comprehensive income (925) 3,021 Selling and operating costs 10.2 (970,860) (1,481,978) Net other comprehensive loss to be reclassified to profit or loss in subsequent periods (58,598) (326,934) General and administrative expenses 10.3 (154,341) (166,591) Remeasurement gains/(losses) on defined benefit plans, net of tax (1,021) 1,835 Other operating income 10.4 3,146 81,124 Net other comprehensive income/(expense) not to be reclassified (1,021) 1,835 Other operating expenses 10.4 (84,153) (31,666) to profit or loss in subsequent periods Share of net profits and losses of associates 9.2 4,263 6,831 Total other comprehensive loss (59,619) (325,099) Operating profit/(loss) 2,773 (327,470) Total comprehensive loss for the year, net of tax (408,083) (1,116,882) Finance income 10.5 21,134 30,286 119 Finance costs 10.6 (247,140) (323,176) Attributable to: Net foreign exchange gains/(losses) 10.7 (50,924) 9,946 Owners of the parent (394,935) (1,108,537) Loss before tax (274,157) (610,414) Non-controlling interests (13,148) (8,345) Income tax expense 11.1 (59,268) (77,427) Loss after tax from continuing operations (333,425) (687,841) Loss after tax from discontinued operations 12.1 (15,039) (103,942) Loss for the year (348,464) (791,783) Attributable to: Owners of the parent (333,064) (780,531) Non-controlling interests (15,400) (11,252) PUMA ENERGY ANNUAL REPORT 2020 CONSOLIDATED STATEMENT OF FINANCIAL POSITION For the years ended 31 December in US$’000 Notes 2020 2019 in US$’000 Notes 2020 2019 Assets Non-current liabilities Non-current assets Interest-bearing loans and borrowings 23 2,070,886 2,724,934 Property and equipment 13 2,037,194 2,420,519 Lease liabilities 24 557,991 591,189 Intangible assets and goodwill 14 546,321 606,124 Retirement benefit obligations 1,367 294 Right-of-use 15 627,743 682,257 Other financial liabilities 26 7,236 4,528 Investments in associates 9.2 19,669 27,643 Deferred tax liabilities 11.5 44,648 50,997 Other financial assets 18 54,233 89,455 Provisions 25 45,420 43,042 Deferred tax assets 11.5 49,924 52,384 Total non-current liabilities 2,727,548 3,414,984 Other assets 19 150,860 101,123 Current liabilities Total non-current assets 3,485,944 3,979,505 Trade and other payables 27 2,061,605 2,619,443 Current assets Interest-bearing loans and borrowings 23 1,044,766 284,733 120 Inventories 17 861,309 1,022,175 Lease liabilities 24 89,883 79,890 Other assets 19 196,895 341,684 Other financial liabilities 26 140,079 57,860 Income tax receivable 11.4 16,344 14,993 Income tax payable 11.4 43,894 36,739 Trade receivables 20 521,708 619,724 Provisions 25 19,927 21,430 Other financial assets 18 141,504 31,587 Total current liabilities 3,400,154 3,100,095 Cash and cash equivalents 21 507,192 619,023 Liabilities directly associated with the assets classified as held for sale 43,087 526,353 Total current assets 2,244,952 2,649,186 Total liabilities 6,170,789 7,041,432 Asset classified as held for sale 52,861 860,117 Total equity and liabilities 5,783,757 7,488,808 Total assets 5,783,757 7,488,808 Equity and liabilities Equity Share capital 22 1,657,067 2,060,035 Retained earnings (327,141) 52,256 Foreign currency translation reserve (1,811,418) (1,794,559) Other components of equity 4,545 5,568 Equity attributable to owners of the parent (476,947) 323,300 Non-controlling interests 89,915 124,076 Total equity (387,032) 447,376 PUMA ENERGY ANNUAL REPORT 2020 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Attributable to owners of the parent Attributable to owners of the parent Foreign Foreign currency Other Non- currency Other Non- Share Retained translation components controlling Total Share Retained translation components controlling Total In US$’000 capital earnings reserve of equity Total interest equity In US$’000 Notes capital earnings reserve of equity Total interest equity At 1 January 2020 – restated 2,060,035 52,252 (1,794,555) 5,568 323,300 124,076 447,376 At 1 January 2019 – 2,054,166 854,150 (1,461,944) 3,980 1,450,352 135,502 1,585,854 Loss for the period – (333,064) – – (333,064) (15,400) (348,464) restated Other comprehensive loss – (925) (59,923) (1,023) (61,871) 2,252 (59,619) Loss for the year – (780,531) – – (780,531) (11,252) (791,783) Total comprehensive loss – (333,989) (59,923) (1,023) (394,935) (13,148) (408,083) Other comprehensive – 3,021 (332,615) 1,588 (328,006) 2,907 (325,099) Dividends – – – – – (21,003) (21,003) income/(loss) Share capital reduction (402,968) – – – (402,968) – (402,968) Total comprehensive loss – (777,510) (332,615) 1,588 (1,108,537) (8,345) (1,116,882) Mandatorily redeemable – (43,060) 43,060 – – – – Dividends – – – – – (5,998) (5,998) preference shares Acquisitions/disposals of 6.5 – (2,555) – – (2,555) 2,917 362 121 cancellation (Australian non-controlling interests divestment) Issue of new shares 10,869 10,869 10,869 Reclassification to share – (4,663) – – (4,663) – (4,663) Deemed distribution to – (10,869) – – (10,869) – (10,869) based payment payable shareholders(i) from employees Reclassification to share – (15,139) – – (15,139) – (15,139) Reclassification to employee – (1,167) – – (1,167) – (1,167) based payment payable long term incentive plan from employees Share-based payments – 3,347 – – 3,347 – 3,347 Share buy-back (5,000) (2,466) – – (7,466) (7,466) Other – 139 – – 139 (10) 129 Share-based payments(ii) – 6,645 – – 6,645 – 6,645 At 31 December 2020 1,657,067 (327,141) (1,811,418) 4,545 (476,947) 89,915 (387,032) At 31 December 2019 2,060,035 52,256 (1,794,559) 5,568 323,300 124,076 447,376 (i) The line deemed distribution reflects buy–backs of shares made in relation to the Group’s employee share plan and the financing of the acquisition of Puma Energy Holdings Pte Ltd shares by its shareholder PE ESP Ltd for the share based payment scheme. (ii) The line share–based payments, includes the costs accrued during the year for the employee share plan. PUMA ENERGY ANNUAL REPORT 2020 CONSOLIDATED STATEMENT OF CASH FLOWS in US$’000 Notes 2020 2019 in US$’000 Notes 2020 2019 Operating activities Financing activities Loss before tax from continuing operations (274,157) (610,414) Loans (granted)/reimbursed 18,429 (22,022) Loss before tax from discontinued operations (15,039) (52,896) Proceeds from/(repayment of) borrowings (289,288) (303,008) Loss/(profit) before tax (289,196) (663,310) Interest paid (182,551) (227,328) Non-cash adjustments to reconcile profit before tax to net cash flows: Lease payments (157,837) (172,657) Depreciation and impairment of property and equipment 10.2, 13 429,828 405,813 Dividends paid (21,003) (5,998) Amortisation and impairment of intangible assets 10.2, 14 66,280 575,555 Deemed distribution to shareholder (26,816) (7,466) Amortisation and impairment of lease right-of-use 15 132,226 146,074 Net cash flows used in financing activities (659,066) (738,479) Tangible and intangible assets written off – 493 Net increase in cash and cash equivalents (210,844) 87,684 Gain on disposal of assets and investments 10.4 56,008 (79,315) Effects of exchange rate differences 96,858 (110,661) Net interest expense 10.5, 10.6 183,009 211,142 Cash and cash equivalents under continuing operations at 1 January 619,023 644,496 122 Lease financial costs 7.2, 12.2 56,889 68,634 Cash and cash equivalents under assets held for sale at 1 January 2,496 – Dividend income 10.5 (1,686) (3,769) Cash and cash equivalents at 1 January 21 621,519 644,496 Share of net profit of associate 9.2 (4,529) (7,132) Cash and cash equivalents at 31 December 21 507,533 621,519 Provisions 2,957 12,404 Less: cash and cash equivalents under assets held for sale at 31 December 341 2,496 Changes in value of derivative financial instruments (31,265) 115,469 Cash and cash equivalents under continuing operations at 31 December 507,192 619,023 Effect from hyperinflation adjustment 10.6 1,175 10,602 Working capital adjustments: Increase/(decrease) in trade, other receivables and prepayments 74,207 112,243 Decrease/(increase) in inventories 105,345 (226,858) Increase in trade, other payables and accrued expenses (501,567) 149,730 Interest received 10.5 15,413 26,507 Dividends received from associates 1,000 1,970 Income tax paid (50,866) (62,330) Net cash flows from operating activities 245,228 793,922 Investing activities Net proceeds from sale of subsidiaries and investments 6.6 329,384 136,499 Proceeds from sale of assets 3,237 39,177 Purchase of intangible assets 14 (9,251) (8,242) Purchase of property and equipment 13 (143,616) (137,817) Acquisitions of subsidiaries, net of cash acquired 6.3 (2,530) – Divestment of long-term financial investments 18 22,418 – Dividends received from investments 10.5 3,352 2,624 Net cash flows from/(used in) investing activities 202,994 32,241 PUMA ENERGY ANNUAL REPORT 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1.