XML 28 R12.htm IDEA: XBRL DOCUMENT v3.22.4
Note 5 - Business Segment Reporting
 12 Months Ended
Dec. 31, 2022
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 CEO, 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,

  

2022

 

2021

 

2020

NLA

 $499,813 $193,156 $115,738

ESSA

 389,342 300,557 219,534

MENA

 201,495 171,136 194,033

APAC

 188,768 160,913 145,721

Total

 $1,279,418 $825,762 $675,026

 

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, net, 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 income (loss) before income taxes (in thousands):

 

  

Year Ended December 31,

  

2022

 

2021

 

2020

NLA

 $135,236 $32,254 $54

ESSA

 74,681 53,336 35,393

MENA

 63,315 56,312 77,296

APAC

 4,850 33,444 34,976

Total Segment EBITDA

 278,082 175,346 147,719

Corporate costs

 (87,580) (66,153) (61,122)

Equity in income of joint ventures

 15,731 16,747 13,589

Depreciation and amortization expense

 (139,767) (123,866) (113,693)

Impairment expense

 - - (287,454)

Severance and other expense

 (7,825) (7,826) (13,930)

Stock-based compensation expense

 (18,486) (54,162) -

Gain on disposal of assets

 - 1,000 10,085

Foreign exchange losses

 (8,341) (4,314) (2,261)

Merger and integration expense

 (13,620) (47,593) (1,630)

Other income, net

 3,149 3,992 3,908

Interest and finance expense, net

 (241) (8,795) (5,656)

Income (loss) before income taxes

 $21,102 $(115,624) $(310,445)

 

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 years ended December 31, 2022 and 2021. One customer in our MENA operating segment accounted for 16% of our consolidated revenue for the year ended December 31, 2020. The revenue generated in the Netherlands was immaterial for the years ended December 31, 2022, 2021 and 2020. Other than the U.S. in 2022, Norway in 2021, and Algeria in 2020, no individual country represented more than 10% of our revenue for the years ended December 31, 2022, 2021 and 2020.

 

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,

  

2022

 

2021

NLA

 $633,644 $561,482

ESSA

 444,368 370,638

MENA

 294,742 358,465

APAC

 232,812 231,087

Assets held centrally

 331,586 332,966

Total

 $1,937,152 $1,854,638

 

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

 

  

Year Ended December 31,

  

2022

 

2021

NLA

 $18,435 $6,426

ESSA

 17,574 11,151

MENA

 27,354 14,553

APAC

 13,457 19,958

Assets held centrally

 5,084 29,423

Total

 $81,904 $81,511