KIM HENG OFFSHORE & MARINE HOLDINGS LIMITED
ANNUAL REPORT 2014
94
NOTES
TO THE FINANCIAL STATEMENTS
22
EARNINGS PER SHARE
Basic and diluted earnings per share are calculated based on the following:
Group
2014
2013
$’000
$’000
Profit for the year
5,617
17,093
The calculation of the basic and diluted earnings per share for each of the year ended 31 December
2013 and 2014
is based on the profit for the respective year and the weighted average number of
shares of the Company of 700,794,521 (2013:550,000,000) shares.
There were no dilutive potential ordinary shares in existence for the year ended 31 December 2013
and 2014.
23
OPERATING SEGMENTS
The Group has two reportable segments, as described below, which are the Group’s strategic
business units. The strategic business units offer different products and services, and are managed
separately because they require different technology and marketing strategies. For each of the
strategic business units, the Group’s Chief Executive Officer (“CEO”) (the chief operating decision
maker) review internal management reports on a monthly basis to make strategic decisions. The
following summary describes the operations in each of the Group’s reportable segments:
(a) Offshore Rig Services and Supply Chain Management: Includes chartering, freight, servicing
and repair of vessels, provision of services of marine engineers, consultants, sub-contractors,
labour supply, fabrication services, trading in drill pipes and related drilling materials, provision
of services and rental of marine equipment.
(b) Vessel Sales and Newbuild: Includes trading of vessels and newbuild.
Information regarding the results of each reportable segment is included below. Performance
is measured based on segment profit before tax, as included in the internal management
reports that are reviewed by the Group’s CEO. Segment profit before tax is used to measure
performance as management believes that such information is the most relevant in evaluating
the results of certain segments relative to other entities that operate within these industries.
Inter-segment pricing is determined on an arm’s length basis.
