77
On an ongoing basis, the Group may utilise various sources of funding to finance these exploration, appraisal and
development programmes, including but not limited to internally-generated operating cash flows, farm out arrangements,
debt where appropriate, new equity issues if available on favourable terms, and asset sales. The Group relies on cash
from its assets in Egypt, received as payments from EGPC, for the substantial majority of its internally-generated
operating cash flows. See
“—EGPC Receivables”
below.
EGPC Receivables
The table below presents movements in the Group’s receivables from EGPC from 31 December 2011 to 30 June 2014.
($ millions)
Outstanding receivables from EGPC as at 31 December 2011
...............................
131.4
Sales to EGPC during the six-month period ending 30 June 2012 ................................
86.0
Cash received from EGPC during the six-month period ending 30 June 2012..............
(28.6)
Outstanding receivables from EGPC as at 30 June 2012
........................................
188.8
Sales to EGPC during the six-month period ending 31 December 2012 .......................
81.1
Cash received from EGPC during the six-month period ending 31 December 2012.....
(106.1)
Outstanding receivables from EGPC as at 31 December 2012
...............................
163.8
Sales to EGPC during the six-month period ending 30 June 2013 ................................
84.9
Cash received from EGPC during the six-month period ending 30 June 2013..............
(120.1)
Outstanding receivables from EGPC as at 30 June 2013
........................................
128.6
Sales to EGPC during the six-month period ending 31 December 2013 .......................
108.7
Cash received from EGPC during the six-month period ending 31 December 2013.....
(120.5)
Outstanding receivables from EGPC as at 31 December 2013
...............................
116.7
Sales to EGPC during the three-month period ending 31 March 2014 .........................
51.5
Cash received from EGPC during the three-month period ending 31 March 2014 ......
(33.2)
Outstanding receivables from EGPC as at 31 March 2014
.....................................
135.0
Sales to EGPC during the six-month period ending 30 June 2014 ...............................
110.8
Cash received from EGPC during the six-month period ending 30 June 2014..............
(103.0)
Outstanding receivables from EGPC as at 30 June 2014
........................................
124.4
As at 30 June 2014 the total amount of receivables due to the Group from EGPC was $124.4 million, of which $76.1
million were considered past due, but not impaired as at that date. The Group received an additional cargo payment of
$26.4 million on 9 July 2014. See
“Risk factors—Risks relating to the Group—The Group is dependent on its operations
in Egypt for a significant portion of its revenues, and receivables due from the Group’s operations in Egypt under the
Group’s licence agreements are paid irregularly and after significant delay”
and
“—Material factors affecting results of
operations—Receipt of cash payments from EGPC.”
Cash flows
The following table sets out financial information extracted from the Group’s consolidated cash flow statements for the
years ended 31 December 2011, 2012 and 2013, and for the three months ended 31 March 2013 and 31 March 2014.
Year ended 31 December
Three months ended 31
March
($ thousands)
2011
2012
2013
2013
2014
Operating cash flow before
movement in working capital ..................................
95,153
131,392
189,929
35,915
47,806
Net cash generated by operating
activities
..................................................................
10,958
88,885
239,762
89,643
35,029
