GeoPark Ltd | CIK:0001464591 |

 

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Executive Committee. This committee is integrated by the CEO, COO, CFO and managers in charge of the Geoscience, Operations, Corporate Governance, Finance and People departments. This committee reviews the Group’s internal reporting in order to assess performance and allocate resources. Management has determined the operating segments based on these reports. The committee considers the business from a geographic perspective.

The Executive Committee assesses the performance of the operating segments based on a measure of Adjusted EBITDA. Adjusted EBITDA is defined as profit for the period before net finance cost, income tax, depreciation, amortization, certain non-cash items such as impairments and write-offs of unsuccessful efforts, accrual of share-based payment, unrealized result on commodity risk management contracts and other non recurring events. Operating Netback is equivalent to Adjusted EBITDA before cash expenses included in Administrative, Geological and Geophysical and Other operating expenses. Other information provided, except as noted below, to the Executive Committee is measured in a manner consistent with that in the financial statements.

 

Amounts in US$ '000		Chile			Brazil			Colombia			Peru			Argentina			Corporate			Total
2017
Revenue			32,738			34,238			263,076			-			70			-			330,122
Sale of crude oil			15,873			910			262,309			-			70			-			279,162
Sale of gas			16,865			33,328			767			-			-			-			50,960
Realized loss on commodity risk management contracts			-			-			(2,148)			-			-			-			(2,148)
Production and operating costs			(20,999)			(10,737)			(66,913)			-			(338)			-			(98,987)
Royalties			(1,314)			(3,134)			(24,236)			-			(13)			-			(28,697)
Transportation costs			(1,211)			-			(1,678)			-			(80)			-			(2,969)
Share-based payment			(170)			(39)			(248)			-			-			-			(457)
Other costs			(18,304)			(7,564)			(40,751)			-			(245)			-			(66,864)
Operating (loss) profit			(19,675)			4,434			116,290			(3,850)			(3,430)			(14,773)			78,996
Operating netback			11,222			23,540			194,013			-			(467)			-			228,308
Adjusted EBITDA			4,070			20,166			168,303			(3,505)			(2,183)			(11,075)			175,776
Depreciation			(23,730)			(10,809)			(40,010)			(139)			(159)			(38)			(74,885)
Write-off			(546)			(2,978)			(1,625)			-			(685)			-			(5,834)
Total assets			301,931			91,604			288,429			22,099			30,924			51,176			786,163
Employees (average)			102			12			164			13			88			-			379
Employees at year end			102			12			180			19			92			-			405

Amounts in US$ '000		Chile			Brazil			Colombia			Peru			Argentina			Corporate			Total
2016
Revenue			36,723			29,719			126,228			-			-			-			192,670
Sale of crude oil			18,774			688			125,731			-			-			-			145,193
Sale of gas			17,949			29,031			497			-			-			-			47,477
Realized gain on commodity risk management contracts			-			-			514			-			-			-			514
Production and operating costs			(22,169)			(8,459)			(36,607)			-			-			-			(67,235)
Royalties			(1,495)			(2,721)			(7,281)			-			-			-			(11,497)
Transportation costs			(1,170)			-			(1,111)			-			-			-			(2,281)
Share-based payment			(138)			(71)			(413)			-			-			-			(622)
Other costs			(19,366)			(5,667)			(27,802)			-			-			-			(52,835)
Operating (loss) profit			(44,969)			(645)			31,463			(3,147)			370			(11,685)			(28,613)
Operating netback			13,696			21,356			87,523			41			(378)			(91)			122,147
Adjusted EBITDA			5,159			17,487			66,921			(2,607)			1,848			(10,487)			78,321
Depreciation			(31,355)			(12,974)			(31,148)			(130)			(150)			(17)			(75,774)
Reversal of impairment losses			-			-			5,664			-			-			-			5,664
Write-off			(19,389)			(4,583)			(7,394)			-			-			-			(31,366)
Total assets			317,969			99,904			182,784			5,020			6,071			28,792			640,540
Employees (average)			102			10			138			11			80			-			341
Employees at year end			102			10			146			10			77			-			345

Amounts in US$ '000		Chile			Brazil			Colombia			Peru			Argentina			Corporate			Total
2015
Revenue			44,808			32,388			131,897			-			597			-			209,690
Sale of crude oil			29,180			955			131,897			-			597			-			162,629
Sale of gas			15,628			31,433			-			-			-			-			47,061
Production costs			(28,704)			(8,056)			(48,534)			-			(1,448)			-			(86,742)
Royalties			(1,973)			(2,998)			(8,150)			-			(34)			-			(13,155)
Transportation costs			(2,441)			-			(2,068)			-			(2)			-			(4,511)
Share-based payment			(132)			-			(234)			-			(197)			-			(563)
Other costs			(24,158)			(5,058)			(38,082)			-			(1,215)			-			(68,513)
Operating (loss) profit			(180,264)			6,639			(37,227)			(6,719)			(2,350)			(12,570)			(232,491)
Operating netback			15,254			24,393			80,355			44			(1,732)			(287)			118,027
Adjusted EBITDA			(183)			20,460			66,736			(6,520)			(684)			(6,022)			73,787
Depreciation			(39,227)			(13,568)			(52,434)			(129)			(199)			-			(105,557)
Impairment loss			(104,515)			-			(45,059)			-			-			-			(149,574)
Write-off			(25,751)			-			(4,333)			-			-			-			(30,084)
Total assets			381,143			114,974			153,071			4,287			3,181			47,143			703,799
Employees (average)			153			11			130			16			93			-			403
Employees at year end			106			12			133			11			90			-			352

Approximately 76% of capital expenditure was incurred by Colombia (67% in 2016 and 66% in 2015), 10% was incurred by Chile (20% in 2016 and 22% in 2015), 8% was incurred by Argentina (4% in 2016 and nil in 2015), 3% was incurred by Brazil (9% in 2016 and 12% in 2015) and 3% was incurred by Peru (nil in 2016 and 2015).

 

A reconciliation of total Operating netback to total profit (loss) before income tax is provided as follows:

 

Amounts in US$ '000		2017			2016			2015
Operating netback			228,308			122,147			118,027
Administrative expenses			(38,937)			(32,323)			(30,590)
Geological and geophysical expenses			(13,595)			(11,503)			(13,650)
Adjusted EBITDA for reportable segments			175,776			78,321			73,787
Unrealized loss on commodity risk management contracts			(13,300)			(3,068)			-
Depreciation (a)			(74,885)			(75,774)			(105,557)
Share-based payment			(4,075)			(3,367)			(8,223)
Impairment and write-off of unsuccessful exploration efforts			(5,834)			(25,702)			(179,658)
Others (b)			1,314			977			(12,840)
Operating profit (loss)			78,996			(28,613)			(232,491)
Financial expenses			(53,511)			(36,229)			(36,924)
Financial income			2,016			2,128			1,269
Foreign exchange (loss) profit			(2,193)			13,872			(33,474)
Profit (Loss) before tax			25,308			(48,842)			(301,620)

  

(a)

Net of capitalised costs for oil stock included in Inventories.

(b)

In 2015 includes termination costs (see Note 36). Also includes internally capitalised costs.