Bumi plc 2012 Results Announcement & Q1 2013 IMS -15-

--------------------------------------------  --------------  -------------- 
 Tax Losses for which no deferred tax 
  asset was recognised                                  (46)             (5) 
--------------------------------------------  --------------  -------------- 
 Expenses not deductible for tax purposes               (29)           (116) 
--------------------------------------------  --------------  -------------- 
 Effect of differences between local 
  and United Kingdom tax rates                          (63)            (83) 
--------------------------------------------  --------------  -------------- 
 Dividend withholding taxes                              (3)             (4) 
--------------------------------------------  --------------  -------------- 
 Total tax charged to consolidated income 
  statement                                            (132)           (187) 
--------------------------------------------  --------------  -------------- 
 

Notes to the Financial Statements (continued)

A number of changes to the UK corporation tax system were announced in the March 2012 Budget Statement. With effect from 1 April 2012, the main rate of corporation tax was reduced from 26% to 24%. The impact of this change has been recognised in calculating the effective rate of tax for the year ended 31 December 2012. Legislation to reduce the main rate of corporation tax from 24% to 23% effective from 1 April 2013 was included in the Finance Act 2012, which received Royal Assent on 17 July 2012. Further reductions to the main rate have been proposed to reduce the rate by 2% per annum to 21% by 1 April 2014 and reduce the rate by 1% to 20% by 1 April 2015. The changes are not expected to have a material impact on the Group's deferred tax balances. Indonesian corporate tax rate is 25%, with the exception of the tax charged within a CCoW which incurs a tax rate of 45%. No income tax has been charged or credited directly to equity or other comprehensive income during the year or the preceding period.

   12.   Earnings per share ("EPS") 

The calculation of earnings per ordinary share is based on profit attributable to ordinary shareholders of the Company and the weighted average number of ordinary shares in issue during the year. In addition to the earnings per share required by IAS 33 "Earnings per Share", underlying EPS has also been calculated and is based on earnings excluding the effect of separately disclosed items. It has been calculated to allow shareholders to have a better understanding of the trading performance of the Group. Details of the underlying EPS are set out below:

 
                                                     Year to         Year to 
                                                 31 December     31 December 
                                                        2012            2011 
                                                          $m         $m(1,2) 
                                                                    Restated 
--------------------------------------------  --------------  -------------- 
 Loss attributable to ordinary shareholders          (2,323)           (337) 
--------------------------------------------  --------------  -------------- 
 Separate items (note 8)                               2,271             429 
--------------------------------------------  --------------  -------------- 
 Underlying earnings 
  (attributable to owners of the parent)                (52)              92 
--------------------------------------------  --------------  -------------- 
 
 Number of shares (millions) 
  Basic weighted average number of ordinary 
  shares                                                 241             192 
--------------------------------------------  --------------  -------------- 
 Potentially dilutive share options                        -               - 
--------------------------------------------  --------------  -------------- 
 Diluted weighted average number of shares               241             192 
--------------------------------------------  --------------  -------------- 
                                                           $               $ 
--------------------------------------------  --------------  -------------- 
 Basic loss per share(1)                              (9.64)          (1.76) 
--------------------------------------------  --------------  -------------- 
 Effect of potentially dilutive share                      -               - 
  options 
--------------------------------------------  --------------  -------------- 
 Diluted loss per share(1)                            (9.64)          (1.76) 
--------------------------------------------  --------------  -------------- 
 
 Basic underlying earnings per share(2)               (0.22)            0.48 
--------------------------------------------  --------------  -------------- 
 Effect of potentially dilutive share                      - 
  options 
--------------------------------------------  --------------  -------------- 
 Diluted underlying earnings per share(2)             (0.22)            0.48 
--------------------------------------------  --------------  -------------- 
 
   1     Basic and diluted loss per share has been restated as explained in Note 34. 

2 The underlying earnings per share has been restated to reflect share of loss of associate and other exceptional costs as explained in Note 8.

Notes to the Financial Statements (continued)

   13.        Intangible assets 
 
                                               Exploration and 
                                             evaluation assets    Goodwill 
                                                            $m      $m(2*) 
                                                                  Restated 
-----------------------------------------  -------------------  ---------- 
 Cost 
-----------------------------------------  -------------------  ---------- 
 At 1 January 2011                                           -           - 
-----------------------------------------  -------------------  ---------- 
 Acquired through business combinations                      -       1,320 
-----------------------------------------  -------------------  ---------- 
 Additions                                                   4           - 
-----------------------------------------  -------------------  ---------- 
 At 31 December 2011                                         4       1,320 
-----------------------------------------  -------------------  ---------- 
 Adjustment to prior year acquisition 
  valuations                                                            14 
-----------------------------------------  -------------------  ---------- 
 At 31 December 2011 (restated)                              4       1,334 
-----------------------------------------  -------------------  ---------- 
 Acquired through business combinations                      -           4 
-----------------------------------------  -------------------  ---------- 
 Additions                                                   1           - 
-----------------------------------------  -------------------  ---------- 
 Transfer to other exceptional costs(1)                                (5) 
-----------------------------------------  -------------------  ---------- 
 At 31 December 2012                                         5       1,333 
-----------------------------------------  -------------------  ---------- 
 Accumulated amortisation and impairment 
-----------------------------------------  -------------------  ---------- 
 At 1 January 2011                                           -           - 
-----------------------------------------  -------------------  ---------- 
 Amortisation charge for the year                            -           - 
-----------------------------------------  -------------------  ---------- 
 At 31 December 2011                                         -           - 
-----------------------------------------  -------------------  ---------- 
 Amortisation charge for the year                            -           - 
-----------------------------------------  -------------------  ---------- 
 Impairment charge for the year                              -       (815) 
-----------------------------------------  -------------------  ---------- 
 At 31 December 2012                                         -       (815) 
-----------------------------------------  -------------------  ---------- 
 Net book value at 31 December 2012                          5         518 
-----------------------------------------  -------------------  ---------- 
 Net book value at 31 December 2011                          4       1,334 
-----------------------------------------  -------------------  ---------- 
 

1. This represents goodwill arising on the acquisition of PT Pelayaran Sandita Perkeson Maritim, PT Kirana Berau and PT Manira Mitra where it was established that the excess consideration above the fair value of assets acquired had no clear business purpose. This has been written off to other exceptional costs in the year.

2. Following the adjustment to prior year acquisition valuations of assets under construction, mining properties and goodwill arising on acquisition were also restated. Refer to Note 14 and Note 34.

Impairment tests for goodwill

Goodwill arising through acquisitions has been allocated to individual or groups of cash generating units (CGUs), each representing the lowest level in the Group at which goodwill is monitored for internal management purposes.

The carrying value of the Group's goodwill of $1,334m at 31 December 2011 has arisen mainly on the acquisition of PT Berau on 4 March 2011, which is treated as a single CGU.

The Group's annual impairment review resulted in an impairment charge of $815m on a 100% basis (non-controlling interest: $194m) for 2012. PT Berau's recoverable amount has been assessed based on fair value less costs to sell using discounted cash flows.