78
Net cash used in investing activities ........................
(65,913)
(133,909)
(266,036)
(168,928)
(36,003)
Net cash generated by (used in)
financing activities...................................................
38,115
53,021
107,102
89,337
(9,320)
Net increase/(decrease) in cash
and bank balances
..................................................
(16,982)
8,005
80,828
10,052
(10,294)
Cash and bank balance at end of
the period
................................................................
38,762
46,766
127,594
56,818
117,300
Net cash generated by operating activities
Net cash generated by operating activities decreased by $54.6 million, or 60.9%, from $89.6 million in the three months
ended 31 March 2013 to $35.0 million in the three months ended 31 March 2014. This decrease was primarily
attributable to higher cargo payments received from EGPC in the three months ended 31 March 2013 as well as the
increase in EGPC receivables in the three months ended 31 March 2014 due to higher production in Egypt over the
period. The Group’s operating cash flow before taking into account changes in working capital increased by $11.9
million, or 33.1%, from $35.9 million in the three months ended 31 March 2013 to $47.8 million in the three months
ended 31 March 2014, as a result of higher working interest production volumes.
Net cash generated by operating activities increased by $150.9 million, or 169.7% from $88.9 million in 2012 to $239.8
million in 2013. Adjusting for net cash used by operating activities in the Group’s discontinued businesses in Russia and
Ukraine in 2013 of $2.4 million, net cash generated by operating activities in 2013 would have been $242.2 million. The
increase was primarily attributable to receipt of multiple cargo payments and improved collection of receivables from
EGPC, the Group’s primary customer, as well as the inclusion of eleven months of production from Block 5 in Yemen in
2013. The Group’s operating cash flow before taking into account changes in working capital increased by $58.5 million,
or 44.6%, from $131.4 million in 2012 to $189.9 million in 2013, primarily as a result of higher working interest
production volumes and higher average sales prices in 2013, in particular due to the inclusion of eleven months of
production from Block 5 in Yemen in 2013.
Net cash generated by operating activities increased by $77.9 million from $11.0 million in 2011 to $88.9 million in
2012. Adjusting for net cash used by operating activities in the Group’s discontinued businesses in Russia and Ukraine in
2012 of $3.6 million, net cash generated by operating activities in 2012 would have been $93.5 million. The increase was
primarily attributable to the timing of collection of receivables from EGPC, the Group’s primary customer, which
improved significantly in 2012, as well as significantly higher working interest production volumes and slightly higher
average sales prices. The Group’s operating cash flow before taking into account changes in working capital increased
by $36.2 million, or 38.1%, from $95.2 million in 2011 to $131.4 million in 2012, also as a result of significantly higher
working interest production volumes and slightly higher average sales prices.
Net cash used in investing activities
Net cash used in investing activities decreased by $132.9 million, or 78.7%, from $168.9 million in the three months
ended 31 March 2013 to $36.0 million in the three months ended 31 March 2014. This decrease was primarily
attributable to a one-off acquisition of shares in Jannah Hunt Oil Company Limited in the three months ended 31 March
2013 and a significant decrease in purchases of intangible exploration and evaluation assets, due to drilling slippage in
Block 9 in Iraq and fewer new exploration and development projects in the three months ended 31 March 2014 as well as
the non-recurrence of certain investments in the three months ended 31 March 2013, in particular the payment of a
signature bonus of $17.5 million in respect of Block 9 in Iraq and the drilling of an offshore exploration well in Latvia.
This decrease was partly offset by a slight increase in purchases of property, plant and equipment, mainly due to an
$11.4 million capital expenditure in Siba for gas project development and a $7.4 million capital expenditure in Abu
Sennan for construction of oil production and processing stations.
Net cash used in investing activities increased by $132.1 million, or 98.7%, from $133.9 million in 2012 to $266.0
million in 2013. Adjusting for net cash used in investing activities in the Group’s discontinued businesses in Russia and
Ukraine in 2013 of $18.5 million, net cash used in investing activities in 2013 would have been $247.5 million. The
increase was primarily attributable to payment for the $102.4 million remaining due on the purchase of Block 5 in
Yemen in 2013, compared to a $30.0 million advance payment on this acquisition in 2012, as well as a $43.1 million
increase in purchases of intangible exploration and evaluations assets and a $19.6 million increase in purchases of
property, plant and equipment. The increase in purchases of intangible exploration and evaluation assets was mainly
attributable to a $27.3 million expenditure in respect of Block 9 in Iraq in 2013, compared to $nil in 2012, and a $20.5
million capital expenditure for the drilling of an offshore exploration well in Latvia in 2013, compared to $2.1 million in
2012, partly offset by the relinquishment of Block 74 in Yemen in 2012, which had accounted for a $4.4 million capital
