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Note 5 - Business Segment Reporting
 12 Months Ended
Dec. 31, 2023
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 (“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,

 
  

2023

  

2022

  

2021

 

NLA

 $511,800  $499,813  $193,156 

ESSA

  520,951   389,342   300,557 

MENA

  233,528   201,495   171,136 

APAC

  246,485   188,768   160,913 

Total

 $1,512,764  $1,279,418  $825,762 

 

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,

 
  

2023

  

2022

  

2021

 

NLA

 $132,869  $135,236  $32,254 

ESSA

  136,007   74,681   53,336 

MENA

  71,201   63,315   56,312 

APAC

  1,805   4,850   33,444 

Total Segment EBITDA

 $341,882  $278,082  $175,346 

Corporate costs

  (105,855)  (87,580)  (66,153)

Equity in income of joint ventures

  12,853   15,731   16,747 

Depreciation and amortization expense

  (172,260)  (139,767)  (123,866)

Merger and integration expense

  (9,764)  (13,620)  (47,593)

Severance and other expense

  (14,388)  (7,825)  (7,826)

Stock-based compensation expense

  (19,574)  (18,486)  (54,162)

Foreign exchange losses

  (9,238)  (8,341)  (4,314)

Other income, net

  1,234   3,149   3,992 

Gain on disposal of assets

  -   -   1,000 

Interest and finance expense, net

  (3,943)  (241)  (8,795)

Income (loss) before income taxes

 $20,947  $21,102  $(115,624)

 

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. One customer accounted 12.5% of our revenue in the year ended December 31, 2023. No single customer accounted for more than 10% of our revenue for the years ended December 31, 2022 and 2021. The revenue generated in the Netherlands was immaterial for the years ended December 31, 2023, 2022 and 2021. Other than the U.S. in 2023 and 2022 and Norway in 2021, no individual country represented more than 10% of our revenue for the years ended December 31, 2023, 2022 and 2021.

 

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,

 
  

2023

  

2022

 

NLA

 $709,600  $633,644 

ESSA

  519,939   444,368 

MENA

  351,379   294,742 

APAC

  190,398   232,812 

Assets held centrally

  241,691   331,586 

Total

 $2,013,007  $1,937,152 

 

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

 

  

Year Ended December 31,

 
  

2023

  

2022

 

NLA

 $34,955  $18,435 

ESSA

  25,232   17,574 

MENA

  38,673   27,354 

APAC

  18,056   13,457 

Assets held centrally

  5,194   5,084 

Total

 $122,110  $81,904