Annual Reports & Accounts 2011

In this section

Financial Statements

Notes to the financial statements

for the year ended 31 December 2011

20 Investment in joint ventures

  2011 USD’000   2010 USD’000
Acquired through a business combination (Note 35) 4,638   –
Dividend received during the period (760 ) –
Share of loss during the period from 14 July 2011 to 31 December 2011 (8 ) –
3,870   –

The Group through its acquisition of MIS has gained joint control over the existing joint ventures of MIS (Note 35). Details of the Group’s joint ventures at the balance sheet date are as follows:

Name of the joint venture Place of incorporation and operation Proportion of ownership Principal activities
MIS Arabia Co. Ltd. Jubail, Kingdom of
Saudi Arabia		 30% *
KSAM2 Petrodrill Offshore Islands Inc. ("KSAM2") British Virgin Islands 10% Building and operation of an oil rig.

*Production, manufacturing and erection of heat exchangers, pressure vessels, tanks, structural steel, piping and other related activities.

 

Summarised financial information in respect of the Group’s joint ventures is set out below:

MIS Arabia Co Ltd

  2011 USD’000   2010 USD’000
Total current assets 19,298   –
Total non-current assets 9,764   –
Total current liabilities (12,809 ) –
Total non-current liabilities (3,354 ) –
Net assets 12,899   –
Group’s share of joint venture’s net assets 3,870   –
  2011 USD’000   2010 USD’000
Revenue for the period from 14 July 2011 to 31 December 2011 12,409   –
Expenses for the period from 14 July 2011 to 31 December 2011 (12,436 ) –
Loss for the period from 14 July 2011 to 31 December 2011 (27 ) –
Group’s share of joint venture’s net loss (8 ) –

KSAM2

  2011 USD’000   2010 USD’000
Total current assets 10,071   –
Total non-current assets 161,895   –
Total current liabilities (14,575 ) –
Total non-current liabilities (174,326 ) –
Net liabilities (16,935 ) –
Group’s share of joint venture’s net liabilities* (1,694 ) –
  2011 USD’000   2010 USD’000
Revenue for the period from 14 July 2011 to 31 December 2011 8,562   –
Expenses for the period from 14 July 2011 to 31 December 2011 (8,330 ) –
Profit for the period from 14 July 2011 to 31 December 2011 232   –
Group’s share of joint venture’s net profit* 23   –

*As the Group’s share of cumulative losses in the joint venture has exceeded its investment, the carrying value of the investment is Nil. No profit has been recognised during the period from 14 July 2011 to 31 December 2011.

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