KIM HENG OFFSHORE & MARINE HOLDINGS LIMITED
92
Notes to the financial statements
20 Tax expense (Cont’d)
Income taxes
Significant judgement is involved in determining the Group’s provision for income taxes. The Group recognises
liabilities for expected tax issues based on estimates of whether additional taxes will be due. Where the final
tax outcome of these matters is different from the amounts that were initially recognised, such differences will
impact the income tax and deferred tax provisions in the period in which such determination is made.
21 (Loss)/Earnings per share
Basic and diluted (loss)/earnings per share are calculated based on the following:
Group
2015
2014
$’000
$’000
(Loss)/Profit for the year
(4,934)
5,617
The calculation of the basic and diluted (loss)/earnings per share for each of the years ended
31 December 2015 and 2014 is based on the (loss)/profit for the respective year and the weighted average
number of shares of the Company of 710,000,000 (2014: 700,794,521) shares.
There were no dilutive potential ordinary shares in existence for the years ended 31 December 2014 and 2015.
22 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 and cranes.
(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.
