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Note 5 - Business Segment Reporting
 12 Months Ended
Dec. 31, 2021
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

5.         Business segment reporting

 

Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the Company’s Chief Operating Decision Maker (“CODM”), which is our Chief Executive Officer, in deciding how to allocate resources and assess performance. Our operations are comprised of four operating segments which also represent our reporting segments and are aligned with our geographic regions as below:

 

 

●

North and Latin America (“NLA”),

 

●

Europe and Sub-Saharan Africa (“ESSA”),

 

●

Middle East and North Africa (“MENA”), and

 

●

Asia-Pacific (“APAC”).

 

The following table presents our revenue disaggregated by our operating segments (in thousands):

 

  

Year Ended December 31,

 
  

2021

  

2020

  

2019

 

NLA

 $193,156  $115,738  $174,058 

ESSA

  300,557   219,534   256,790 

MENA

  171,136   194,033   237,065 

APAC

  160,913   145,721   142,151 

Total

 $825,762  $675,026  $810,064 

 

Segment EBITDA

 

Our CODM regularly evaluates the performance of our operating segments using Segment EBITDA, which we define as loss before income taxes adjusted for corporate costs, equity in income of joint ventures, depreciation and amortization expense, impairment expense, severance and other expense, gain on disposal of assets, foreign exchange losses, merger and integration expense, other income, interest and finance expense, net and stock-based compensation expense.

 

The following table presents our Segment EBITDA disaggregated by our operating segments and reconciliation to loss before income taxes (in thousands):

 

  

Year Ended December 31,

 
  

2021

  

2020

  

2019

 

NLA

 $32,254  $54  $15,031 

ESSA

  53,336   35,393   45,358 

MENA

  56,312   77,296   86,043 

APAC

  33,444   34,976   28,762 

Total Segment EBITDA

  175,346   147,719   175,194 

Corporate costs

  (66,153)  (61,122)  (67,498)

Equity in income of joint ventures

  16,747   13,589   9,639 

Depreciation and amortization expense

  (123,866)  (113,693)  (122,503)

Impairment expense

  -   (287,454)  (49,036)

Severance and other expense

  (7,826)  (13,930)  (4,444)

Stock-based compensation expense

  (54,162)  -   - 

Gain on disposal of assets

  1,000   10,085   - 

Foreign exchange losses

  (4,314)  (2,261)  (4,176)

Merger and integration expense

  (47,593)  (1,630)  - 

Other income, net

  3,992   3,908   226 

Interest and finance expense, net

  (8,795)  (5,656)  (3,300)

Loss before income taxes

 $(115,624) $(310,445) $(65,898)

 

Corporate costs include the costs of running our corporate head office and other central functions that support the operating segments, including research, engineering and development, logistics, sales and marketing and health and safety and are not attributable to a particular operating segment.

 

We are a Netherlands based company and we derive our revenue from services and product sales to customers primarily in the oil and gas industry. No single customer accounted for more than 10% of our revenue for the year ended December 31, 2021. One customer in our MENA operating segment accounted for 16% and 14% of our consolidated revenue for the years ended December 31, 2020 and 2019, respectively. The revenue generated in the Netherlands was immaterial for the years ended December 31, 2021, 2020 and 2019. Other than Norway, no individual country represented more than 10% of our revenue for the year ended December 31, 2021. Other than Algeria, no individual country represented more than 10% of our revenue for the year ended December 31, 2020. Other than Algeria and the U.S., no individual country represented more than 10% of our revenue for the year ended December 31, 2019.

 

The following table presents total assets by geographic region and assets held centrally. Assets held centrally includes certain property plant and equipment, investments in joint ventures, collateral deposits, income tax related balances, corporate cash and cash equivalents, accounts receivable and other current and non-current assets, which are not included in the measure of segment assets reviewed by the CODM:

  

December 31,

 
  

2021

  

2020

 

NLA

 $561,482  $97,738 

ESSA

  370,638   221,683 

MENA

  358,465   284,635 

APAC

  231,087   173,688 

Assets held centrally

  332,966   262,007 

Total

 $1,854,638  $1,039,751 

 

The following table presents our capital expenditures disaggregated by our operating segments (in thousands):

 

  

Year Ended December 31,

 
  

2021

  

2020

 

NLA

 $6,426  $10,800 

ESSA

  11,151   35,421 

MENA

  14,553   37,000 

APAC

  19,958   16,413 

Assets held centrally

  29,423   12,753 

Total

 $81,511  $112,387