Q4
International Petroleum Corporation
Audited Consolidated Financial
Statements
For the years ended December 31, 2022 and 2021
2
Contents
Report of Management 3
Report of Independent Auditor 4
Consolidated Statement of Operations 9
Consolidated Statement of Comprehensive Income 10
Consolidated Balance Sheet 11
Consolidated Statement of Cash Flow 12
Consolidated Statement of Changes in Equity 13
Notes to the Consolidated Financial Statements 14
Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
3
Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
REPORT OF MANAGEMENT
The accompanying consolidated financial statements of International Petroleum Corporation (“IPC” or the “Corporation” and,
together with its subsidiaries, the “Group”) and other information contained in the management’s discussion and analysis are the
responsibility of management and have been approved by the Board of Directors. The consolidated financial statements have been
prepared by management in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International
Accounting Standards Board (“IASB”) as outlined in Part 1 of the Handbook of the Chartered Professional Accountants of Canada,
and include some amounts that are based on management’s estimates and judgment.
The Board of Directors carries out its responsibility for the consolidated financial statements principally through its Audit
Committee, which is comprised solely of independent directors. The Audit Committee reviews the Group’s annual consolidated
financial statements and recommends its approval to the Board of Directors. The Corporation’s auditors have full access to the
Audit Committee, with and without management being present. These consolidated financial statements have been audited by
PricewaterhouseCoopers SA, Chartered Professional Accountants, Licensed Public Accountants.
(Signed) Mike Nicholson (Signed) Christophe Nerguararian
Director, President and Chief Executive Officer Chief Financial Officer
Vancouver, Canada
February 7, 2023
4
PricewaterhouseCoopers SA, avenue Giuseppe-Motta 50, case postale, CH-1211 Genève 2, Switzerland
Téléphone: +41 58 792 91 00, Téléfax: + 41 58 792 91 10, www.pwc.ch
Independent auditor’s report
To the Shareholders of International Petroleum Corporation
Our opinion
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects,
the financial position of International Petroleum Corporation and its subsidiaries (together, the
Corporation) as at December 31, 2022 and 2021, and its financial performance and its cash flows for the
years then ended in accordance with International Financial Reporting Standards (IFRS).
What we have audited
The Corporation’s consolidated financial statements comprise:
• the consolidated statements of operations for the years ended December 31, 2022 and 2021;
• the consolidated statements of comprehensive income for the years then ended;
• the consolidated balance sheet for the years ended December 31, 2022 and 2021;
• the consolidated statements of cash flow for the years then ended;
• the consolidated statements of changes in equity for the years then ended; and
• the notes to the consolidated financial statements, which include significant accounting policies.
Basis for opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of
the consolidated financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Independence
We are independent of the Corporation in accordance with the ethical requirements that are relevant to
our audit of the consolidated financial statements in Canada. We have fulfilled our other ethical
responsibilities in accordance with these requirements.
Key audit matters of matter
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the consolidated financial statements for the year ended December 31, 2022. These matters were
addressed in the context of our audit of the consolidated financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters.
5
Key audit matters
How our audit addressed the key audit
matters
The impact of oil and gas reserves on net property, plant and
equipment (PP&E) for the Canada, Malaysia, and France
segments
Refer to note 1 - Corporate information, note 2 - Critical
accounting estimates and judgements, and note 8 – Oil and Gas
Properties to the consolidated financial statements.
The Corporation has USD 958.6 million of net PP&E assets as at
December 31, 2022. Depletion charges were USD 122.0 million
for the year then ended. PP&E is depleted based on the year’s
production in relation to the estimated total proved and probable
reserves in accordance with the unit of production method.
At each balance sheet date or when there are facts and
circumstances that suggest that the net book value of capitalized
costs within each field area cost centre is higher than anticipated
future net cash flow from oil and gas reserves attributable to the
Corporation’s interest in the related field areas, the Corporation
performs an assessment as to whether there is an indication that
an asset may be impaired. Management determined the
recoverable amounts of PP&E based on the higher of fair value
less costs of disposal and value in use using estimated future
discounted net cash flows of proved and probable oil and gas
reserves. The Corporation’s estimates of proved and probable oil
and gas reserves used in the calculations for impairment tests and
accounting for depletion have been reviewed by Management’s
experts, specifically independent qualified reserves auditor.
Significant assumptions developed by management used to
determine the recoverable amount include the proved and
probable oil and gas reserves, expected production volumes,
future oil and gas prices, future development costs, future
production costs and the discount rate.
We determined that this is a key audit matter due to (i) the
significant judgment made by management, including the use of
management’s experts, when developing the expected future cash
flows to determine the recoverable amount and the proved and
probable oil and gas reserves; and (ii) a high degree of auditor
judgment, subjectivity and effort in performing procedures
and evaluating audit evidence relating to management’s
estimates.
Our approach to addressing the matter included the
following procedures, among others:
● The work of management’s experts was used in
performing the procedures to evaluate the
reasonableness of the proved and probable oil and
gas reserves used to determine depletion charges
and the recoverable amount of PP&E for the
Canada, France and Malaysia segments. As a
basis for using this work, management’s experts’
competence, capability and objectivity were
evaluated, their work performed was understood
and the appropriateness of their work as audit
evidence was evaluated by considering the
relevance and reasonableness of the
assumptions, methods and findings.
● Tested how management determined the
recoverable amount and depletion charges for the
Canada, France and Malaysia segments, which
included the following:
o Evaluated the appropriateness of the methods
used by management in making these
estimates.
o Tested the data used in determining these
estimates.
o Evaluated the reasonableness of significant
assumptions used in developing the
underlying estimates:
▪ Expected production volumes, future
development costs and future production
costs by considering the past
performance of each segment, and
whether these assumptions were
consistent with evidence obtained in
other areas of the audit.
▪ Future oil and gas prices by comparing
those prices with other reputable third-
party industry forecasts.
▪ The discount rate, by performing an
independent sensitivity analysis.
o Recalculated the unit of production rates used
to calculate depletion charges for the Canada,
France and Malaysia segments.
6
Our opinion is not modified in respect of this matter.
Other information
Management is responsible for the other information. The other information comprises the Management’s
Discussion and Analysis.
Our opinion on the consolidated financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information identified above and, in doing so, consider whether the other information is materially
inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of management and those charged with governance for the
consolidated financial statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with IFRS, and for such internal control as management determines is
necessary to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the
Corporation’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to liquidate
the Corporation or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Corporation’s financial reporting
process.
7
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Corporation’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Corporation’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Corporation to
cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Corporation to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the group audit. We
remain solely responsible for our audit opinion.
8
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the consolidated financial statements of the current period and
are therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
The engagement partner on the audit resulting in this independent auditor’s report is Luc Schulthess.
PricewaterhouseCoopers SA
Luc Schulthess Tarik Bouchama
February 7, 2023
9
Consolidated Statement of Operations
For the years ended December 31, 2022 and 2021, AUDITED
USD Thousands
Note 2022 2021
Revenue
3
1,135,958 666,409
Cost of sales
Production costs
4
(483,646) (325,007)
Depletion and decommissioning costs
8
(122,041) (119,013)
Depreciation of other tangible fixed assets
9
(10,787) (10,108)
Exploration and business development costs
(2,775) (1,960)
Gross profit
3
516,709 210,321
General, administration and depreciation expenses
(14,440) (12,364)
Profit before financial items
502,269 197,957
Finance income
5
6,999 285
Finance costs
6
(44,130) (30,499)
Net financial items
(37,131) (30,214)
Profit before tax
465,138 167,743
Income tax expense
7
(127,413) (21,684)
Net result
337,725 146,059
Net result attributable to:
Shareholders of the Parent Company 337,683 146,028
Non-controlling interest
42 31
337,725 146,059
Earnings per share – USD
1
16
2.30 0.94
Earnings per share fully diluted – USD
1
16
2.25 0.92
1
Based on net result attributable to shareholders of the Parent Company
See accompanying notes to the consolidated financial statements
10
Consolidated Statement of Comprehensive Income
For the years ended December 31, 2022 and 2021, AUDITED
USD Thousands Note
2022 2021
Net result 337,725 146,059
Other comprehensive income
Items that may be reclassified to profit or loss:
Reclassification of hedging (gains) / losses to profit or
loss
3, 23
(19,125) 33,592
Gains / (losses) on cash flow hedges 28,819 (31,253)
Income tax relating to these items (2,343) (562)
Currency translation adjustments (43,461) (5,409)
Items that will not be reclassified to profit or loss:
Re-measurements on defined pension plan
20
3,778 578
Total comprehensive income
305,393 143,005
Total comprehensive income attributable to:
Shareholders of the Parent Company 305,359 142,980
Non-controlling interest
34 25
305,393 143,005
See accompanying notes to the consolidated financial statements
11
Consolidated Balance Sheet
For the years ended December 31, 2022 and 2021, AUDITED
USD Thousands Note December 31, 2022 December 31, 2021
ASSETS
Non-current assets
Oil and gas properties
8
963,375 971,571
Other tangible fixed assets
9
33,374 46,363
Right-of-use assets
10
1,217 1,639
Deferred tax assets
7
1,960 67,188
Other assets
11
41,125 35,753
Total non-current assets
1,041,051 1,122,514
Current assets
Inventories
12
15,958 20,195
Trade and other receivables
13
123,609 110,897
Derivative instruments
23
11,741 1,159
Current tax receivables 18 99
Cash and cash equivalents
14
487,240 18,810
Total current assets
638,566 151,160
TOTAL ASSETS 1,679,617 1,273,674
LIABILITIES
Non-current liabilities
Financial liabilities
18
8,711 109,219
Bonds
18
295,440 –
Lease liabilities
10
507 980
Provisions
19
203,389 198,811
Deferred tax liabilities
7
56,334 22,142
Total non-current liabilities
564,381 331,152
Current liabilities
Trade and other payables
21
118,726 79,841
Financial liabilities
18
3,431 1,806
Derivative instruments
23
1,155 –
Current tax liabilities
7
17,793 5,093
Lease liabilities
10
752 684
Provisions
19
8,048 7,555
Total current liabilities
149,905 94,979
EQUITY
Shareholders’ equity 965,140 847,386
Non-controlling interest
191 157
Net shareholders’ equity
965,331 847,543
TOTAL EQUITY AND LIABILITIES
1,679,617 1,273,674
Approved by the Board of Directors
(Signed) C. Ashley Heppenstall (Signed) Mike Nicholson
Director Director
See accompanying notes to the consolidated financial statements
12
Consolidated Statement of Cash Flow
For the years ended December 31, 2022 and 2021, AUDITED
USD Thousands Note
2022 2021
Cash flow from operating activities
Net result 337,725 146,059
Adjustments for non-cash related items:
Depletion, depreciation and amortization
8,9,10
134,436 130,837
Exploration costs
8
– 274
Income tax
7
127,413 21,684
Amortization of capitalized financing fees
6
3,252 2,068
Foreign currency exchange
6
7,872 1,994
Interest expense
6
20,689 12,867
Interest income
5
(6,966) (254)
Unwinding of asset retirement obligation discount
6
10,758 11,488
Change in pension liability
20
542 293
Share-based costs
17
7,997 6,457
Other
1,209 258
Cash flow generated from operations (before
working capital adjustments and income taxes)
644,927 334,025
Changes in working capital (13,305) (36,115)
Decommissioning costs paid
19
(5,809) (3,945)
Other payments
19
(2,736) (1,507)
Income taxes received / (paid) (16,470) 425
Interest received 6,656 251
Interest paid
(11,445) (11,955)
Net cash flow from operating activities
601,818 281,179
Cash flow used in investing activities
Investment in oil and gas properties
8
(157,662) (43,990)
Investment in other fixed assets
9
(151) (242)
Net cash (outflow) from investing activities
(157,813) (44,232)
Cash flow from financing activities
Borrowings / (Repayments)
18
(100,979) (215,819)
Bonds issuance 300,000 –
Paid financing fees (5,583) (595)
Substantial Issuer Bid (“SIB”)
15
(100,957) –
Repurchase of own shares (“NCIB”)
15
(80,578) (7,293)
Other payments
(793) (872)
Net cash (outflow) from financing activities
11,110 (224,579)
Change in cash and cash equivalents 455,115 12,368
Cash and cash equivalents at the beginning of the
period
18,810 6,498
Currency exchange difference in cash and cash
equivalents
13,315 (56)
Cash and cash equivalents at the end of the period
487,240 18,810
See accompanying notes to the consolidated financial statements
13
Consolidated Statement of Changes in Equity
For the years ended December 31, 2022 and 2021, AUDITED
USD Thousands
Share
capital and
premium
Retained
earnings
CTA
IFRS 2
reserve
MTM
reserve
Pension
reserve
Total
Non-
controlling
interest
Total
equity
Balance at January 1, 2021 532,379 152,184 16,776 10,088 (877) (2,229) 708,321 132 708,453
Net result – 146,028 – – – – 146,028 31 146,059
Re-measurements on defined
pension plan
– – – – – 578 578 – 578
Cash flow hedge – – – – 1,777 – 1,777 – 1,777
Currency translation difference
– – (5,485) (88) (26) 196 (5,403) (6) (5,409)
Total comprehensive income
– 146,028 (5,485) (88) 1,751 774 142,980 25 143,005
Purchase of own shares
1
(7,221) – – – – – (7,221) – (7,221)
Share based payments
3,606 – – (300) – – 3,306 – 3,306
Balance at December 31, 2021
528,764 298,212 11,291 9,700 874 (1,455) 847,386 157 847,543
1
See Note 15
USD Thousands
Share
capital and
premium
Retained
earnings
CTA
IFRS 2
reserve
MTM
reserve
Pension
reserve
Total
Non-
controlling
interest
Total
equity
Balance at January 1, 2022 528,764 298,212 11,291 9,700 874 (1,455) 847,386 157 847,543
Net result – 337,683 – – – – 337,683 42 337,725
Re-measurements on defined
pension plan
– – – – – 3,778 3,778 – 3,778
Cash flow hedge – – – – 7,351 – 7,351 – 7,351
Currency translation difference
– – (42,583) (791) (267) 188 (43,453) (8) (43,461)
Total comprehensive income
– 337,683 (42,583) (791) 7,084 3,966 305,359 34 305,393
Repurchase of own shares
1
(80,578) – – – – – (80,578) – (80,578)
Substantial Issuer Bid (“SIB”)
1
(100,957) – – – – – (100,957) – (100,957)
Share based payments
2
(8,510) – – 2,440 – – (6,070) – (6,070)
Balance at December 31, 2022
338,719 635,895 (31,292) 11,349 7,958 2,511 965,140 191 965,331
1
See Note 15
2
The second instalment of IPC RSP 2020 awards and the first instalment of IPC RSP 2021 awards vested on February 28, 2022, at a price of CAD
8.93 per award. The difference between the value at vesting date and at grant (respectively CAD 4.35 per award and CAD 4.07 per award) was
offset against share premium. The third instalment of IPC RSP 2019 awards and the IPC PSP 2019 awards vested on June 30, 2022, at a price of
CAD 12.83 per award. The difference between the value at vesting date and at grant (respectively CAD 5.84 per award and CAD 4.28 per award)
was offset against share premium. See also Note 17.
See accompanying notes to the consolidated financial statements.
14
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
1. CORPORATE INFORMATION
A. The Group
International Petroleum Corporation (“IPC” or the “Corporation” and, together with its subsidiaries, the “Group”) is in the business
of exploring for, developing and producing oil and gas. IPC holds a portfolio of oil and gas production assets and development
projects in Canada, Malaysia and France with exposure to growth opportunities.
The Corporation’s common shares are listed on the Toronto Stock Exchange (“TSX”) in Canada and the Nasdaq Stockholm
Exchange in Sweden. The Corporation is incorporated and domiciled in British Columbia, Canada under the Business Corporations
Act. The address of its registered office is Suite 2600, 595 Burrard Street, P.O. Box 49314, Vancouver, BC V7X 1L3, Canada and its
business address is Suite 2000, 885 West Georgia Street, Vancouver, BC V6C 3E8, Canada.
B. Basis of preparation
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”)
as issued by the International Accounting Standards Board (“IASB”).
These consolidated financial statements are presented in United States Dollars (USD), which is the Group’s presentation and
functional currency. The consolidated financial statements have been prepared on a historical cost basis, except for items that are
required to be accounted for at fair value as detailed in the Group’s accounting policies. Intercompany transactions and balances
have been eliminated. Certain comparative figures have been reclassified to conform with the financial statements presentation in
the current year.
These consolidated financial statements have been approved by the Board of Directors of IPC and authorized for issuance on
February 7, 2023.
C. Going concern
The Group’s consolidated financial statements for the year ended December 31, 2022, have been prepared on a going concern
basis, which assumes that the Group will be able to realize its assets and discharge its liabilities in the normal course of business
as they become due in the foreseeable future.
D. Changes in accounting policies and disclosures
During the year ended December 31, 2022, the Group applied the amended accounting standards, interpretations and annual
improvement points that are effective as of January 1, 2022. The application of the amendments did not have a material impact on
the consolidated financial statements.
There are no plans for the early adoption of published standards, interpretations, or amendments prior to their mandatory effective
date. The Group does not expect that other changes in IFRS will have a material impact on the consolidated financial statements.
E. Basis of Consolidation
Subsidiaries
Subsidiaries are all entities over which the Group has control and are consolidated. The Corporation controls an entity when it is
exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through
its power over the entity.
The non-controlling interest in a subsidiary represents the portion of the subsidiary not owned by Group companies. The equity of
the subsidiary relating to the non-controlling shareholders is shown as a separate item within changes in net equity.
Inter-company transactions, balances, income and expenses on transactions between companies are eliminated. Profits and losses
resulting from intercompany transactions that are recognized in assets are also eliminated.
F. Joint Arrangements
Oil and gas operations of the Group are conducted as co-licencees in unincorporated joint ventures with other companies and are
classified as joint operations. The consolidated financial statements reflect the relevant proportions of production, capital costs,
operating costs and current assets and liabilities of the joint operation applicable to the Corporation’s interests.
15
G. Foreign Currency Translation
Transactions and balances
Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange prevailing at the balance
sheet date and foreign exchange currency differences are recognized in the consolidated statement of operations. Transactions
in foreign currencies are translated at exchange rates prevailing at the transaction date. Foreign exchange gains and losses are
presented within finance income and costs in the consolidated statement of operations.
Functional and presentation currency
Items included in the financial statements of each of the operational entities are measured using the currency of the primary
economic environment in which the entity operates (the “functional currency”). The functional currency of the Corporation’s
operational entities are the USD, CAD, MYR and EUR. The consolidated financial statements are presented in USD which is the
Corporation’s presentation currency. The balance sheets and income statements of foreign companies are translated using the
current rate method. All assets and liabilities are translated at the balance sheet date rates of exchange, whereas the income
statements are translated at average rates of exchange for the year, except for transactions where it is more relevant to use the
rate of the day of the transaction. The translation differences which arise are recorded directly in net assets.
Exchange rates for the relevant currencies of the Group with respect to the US Dollar are as follows:
December 31, 2022 December 31, 2021
Average Period end Average Period end
1 EUR equals USD 1.0539 1.0666 1.1835 1.1326
1 USD equals CAD 1.3015 1.3538 1.2536 1.2708
1 USD equals MYR 4.3995 4.4050 4.1433 4.1660
H. Classification of assets and liabilities
Non-current assets, long-term liabilities and provisions consist of amounts that are expected to be recovered or paid more than
twelve months after the balance sheet date. Current assets and current liabilities consist solely of amounts that are expected to be
recovered or paid within twelve months after the balance sheet date.
I. Oil and gas properties
Oil and gas properties are recorded at historical cost less depletion. All costs for acquiring concessions, licences or interests in
production sharing contracts and for the survey, drilling and development of such interests are capitalized on a field area cost
centre basis.
Costs directly associated with an exploration well are capitalized until the determination of reserves is evaluated. If it is determined
that a commercial discovery has not been achieved, these exploration costs are charged to the income statement. During the
exploration and development phases, no depletion is charged. The field will be transferred from the non-producing assets to the
producing assets within oil and gas properties once production commences, and accounted for as a producing asset. Routine
maintenance and repair costs for producing assets are expensed to the income statement when they occur.
Property, plant and equipment are depleted based on the year’s production in relation to estimated total proved and probable
reserves of oil and gas in accordance with the unit of production method. Depletion of a field area is charged to the income
statement through cost of sales once production commences.
Proved reserves are those quantities of petroleum which, by analysis of geological and engineering data, can be estimated
with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current
economic conditions, operating methods and governmental regulations. Proved reserves can be categorized as developed or
undeveloped. If deterministic methods are used, the term reasonable certainty is intended to express a high degree of confidence
that the quantities will be recovered. If probabilistic methods are used, there should be at least a 90 percent probability that the
quantities actually recovered will equal or exceed the estimates.
Probable reserves are those unproved reserves which analysis of geological and engineering data suggests are more likely than
not to be recoverable. In this context, when probabilistic methods are used, there should be at least a 50 percent probability that
the quantities actually recovered will equal or exceed the sum of estimated proved plus probable reserves.
Proceeds from the sale or farm-out of oil and gas concessions in the exploration stage are offset against the related capitalized
costs of each cost centre with any excess of net proceeds over all costs capitalized included in the income statement. In the event
of a sale in the exploration stage, any deficit is included in the income statement.
Impairment tests are performed annually or when there are indicators of impairment that suggest that the net book value of
capitalized costs within each field area cost centre less any provision for asset retirement obligation costs, royalties and deferred
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
16
production or revenue related taxes is higher than the anticipated future net cash flow from oil and gas reserves attributable to the
Corporation’s interest in the related field areas. Capitalized costs cannot be carried unless those costs can be supported by future
cash flows from that asset. Provision is made for any impairment, where the net carrying value, according to the above, exceeds
the recoverable amount, which is the higher of value in use and fair value less costs of disposal, determined through estimated
future discounted net cash flows using prices and cost levels used by management in their internal forecasting. If there is a
decision to not continue with a field specific exploration program, the costs will be expensed at the time the decision is made.
J. Other tangible fixed assets
Other tangible fixed assets are stated at cost less accumulated depreciation. The cost includes the original purchase price of the
asset and the costs attributable to bringing the asset to its working condition for its intended use. Depreciation is based on cost
and is calculated on a straight line basis over the estimated economic life of 3 to 5 years for office equipment and other assets.
The Floating Production Storage and Offloading (“FPSO”) located on the Bertam field, Malaysia, is being depreciated on a unit of
production basis based on the Bertam field 2P reserves to August 2025 being the original PSC expiry date.
Additional costs to existing assets are included in the assets’ net book value or recognized as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be
measured reliably. The net book value of any replaced parts is written off. Other additional expenses are deemed to be repair and
maintenance costs and are charged to the income statement when they are incurred.
The net book value is written down immediately to its recoverable amount when the net book value is higher. The recoverable
amount is the higher of an asset’s fair value less cost of disposal and value in use. The assets’ residual values and useful lives are
reviewed, and adjusted if appropriate, at the end of each reporting period.
K. Leases
The Group leases various offices, warehouses, equipment and cars. Rental contracts are typically made for fixed periods of 3 to
5 years but may have extension options. Lease terms are negotiated on an individual basis and contain a wide range of different
terms and conditions.
Right-of-use assets and corresponding liabilities are recognized when the leased asset is available for use by the Group. Each
lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the period so
as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is
depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present
value of the fixed and variable lease payments and the exercise price of the purchase option. The lease payments are discounted
using the incremental borrowing rate and are classified as finance leases. The right-of-use assets are measured at cost comprising
the amount of the initial measurement of the lease liability, any lease payments made and any initial direct costs.
Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense
in profit or loss.
L. Impairment of Assets
At each balance sheet date or when there are facts and circumstances that suggest that the net book value of capitalized costs
within each field area cost center is higher than anticipated future net cash flow from oil and gas reserves attributable to the
Corporation’s interest in the related field areas, the Corporation performs an assessment as to whether there is an indication
that an asset may be impaired. Management determined the recoverable amounts of property, plant and equipment based on
the higher of fair value less costs of disposal and value in use using estimated future discounted net cash flows of proved and
probable oil and gas reserves. The Corporation’s estimates of proved and probable oil and gas reserves used in the calculations for
impairment tests and accounting for depletion have been reviewed by Management’s experts, specifically independent qualified
reserves auditor.
The recoverable amount is the higher of fair value less costs of disposal and value in use. In determining fair value less costs of
disposal, recent market transactions are considered, if available. In the absence of such transactions, an appropriate valuation
model is used. Value in use is calculated by discounting estimated future cash flows to their present value using a discount rate
that reflects current market assessments of the time value of money and the risks specific to the asset. When the recoverable
amount is less than the carrying value an impairment loss is recognized with the expensed charge to the income statement.
If indications exist that previously recognized impairment losses no longer exist or are decreased, the recoverable amount is
estimated. When a previously recognized impairment loss is reversed the carrying amount of the asset is increased to the
estimated recoverable amount but the increased carrying amount may not exceed the carrying amount after depreciation that
would have been determined had no impairment loss been recognized for the asset in prior years. If the asset does not generate
cash inflows that are largely independent of those from other assets or groups of assets, the asset is tested as part of a CGU,
which is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from
other assets or groups of assets. An impairment loss is the amount by which the carrying amount of the individual asset or CGU
exceeds its recoverable amount.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
17
M. Financial Instruments
Financial assets and financial liabilities are recognized on the consolidated balance sheet on the trade date, the date on which
the Group becomes a party to the contractual provisions of the financial instrument. All financial instruments are required to
be classified and measured at fair value on initial recognition. Measurement in subsequent periods is dependent upon the
classification of the financial instrument. The Group classifies its financial instruments in the following categories:
Financial Assets at Amortized Cost
Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and
interest are measured at amortized cost. The Group’s loans and receivables consist of fixed or determined cash flows related
solely to principal and interest amounts or contractual sales of oil. The Group’s intent is to hold these receivables until cash flows
are collected. Loans and receivables are recognized initially at fair value, net of any transaction costs incurred and subsequently
measured at amortized cost.
Financial Assets at Fair Value through Profit or Loss (“FVTPL”)
Financial assets measured at FVTPL are assets which do not qualify as financial assets at amortized cost or at fair value through
other comprehensive income.
Financial Liabilities at Amortized Cost
Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL, or the Group has opted
to measure them at FVTPL. Borrowings and accounts payable are recognized initially at fair value, net of any transaction costs
incurred, and subsequently at amortized cost using the effective interest method.
Financial Liabilities at FVTPL
Financial liabilities measured at FVTPL are liabilities which include embedded derivatives and cannot be classified as amortized
cost.
Impairment of Financial Assets
The measurement of impairment of financial assets is based on the expected credit losses model. For the trade and other
receivables, the Group applies the simplified approach which requires the use of the lifetime expected loss provision for all trade
receivables. In estimating the lifetime expected loss provision, the Group considered historical industry default rates as well as
credit ratings of major customers. Additional disclosure related to the Group’s financial assets is included in Note 23.
N. Derivative Financial Instruments and Hedging Activities
Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently remeasured
to their fair value. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a
hedging instrument, and if so, the nature of the item being hedged. The Group designates certain derivatives as either hedges of a
particular risk associated with a recognized asset or liability or a highly probable forecasted transaction, hedges of the fair value of
recognized assets and liabilities or a firm commitment, or hedges of a net investment in a foreign operation.
The Group documents at the inception of the transaction the relationship between hedging instruments and the hedged items, as
well as its risk management objectives and strategy for undertaking various hedging transactions. The Group also documents its
assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions
are highly effective in offsetting changes in fair values or cash flows of the hedged items. The fair values of various derivative
financial instruments used for hedging purposes are disclosed in Note 23. Movements on the hedging reserve is reflected in other
comprehensive income. The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining
maturity of the hedged item is more than twelve months and as a current asset or liability when the remaining maturity of the
hedged item is less than twelve months.
Cash flow hedge
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized
in other comprehensive income. The gain or loss relating to the ineffective portion, if any, is recognized immediately within finance
income or costs. Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects
profit or loss. When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting,
any cumulative gain or loss existing in equity at that time remains in equity and is recognized when the forecast transaction is
ultimately recognized in the profit or loss. When a forecasted transaction is no longer expected to occur, the cumulative gain or
loss that was reported in equity is immediately recognized in profit or loss.
O. Inventories
Inventories of consumable well supplies are stated at the lower of cost and net realizable value, cost being determined on a
weighted average cost basis. Net realizable value is the estimated selling price in the ordinary course of business, less applicable
variable selling expenses. Inventories of hydrocarbons are stated at the lower of cost and net realizable value. Under or overlifted
positions of hydrocarbons are valued at market prices prevailing at the balance sheet date. An underlift of production from a field
is included in the current receivables and valued at the reporting date spot price or prevailing contract price and an overlift of
production from a field is included in the current liabilities and valued at the reporting date spot price or prevailing contract price.
A change in the over or underlift position is reflected in the income statement as revenue.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
18
P. Cash and cash equivalents
Cash and cash equivalents include cash at bank and cash in hand.
Q. Provisions
A provision is reported when the Group has a legal or constructive obligation as a consequence of a past event and when it is
more likely than not that an outflow of resources is required to settle the obligation and a reliable estimate can be made of the
amount.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a discount
rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in
the provision due to passage of time is recognized as financial expense.
On fields where there is an obligation to contribute to asset retirement obligation costs, a provision is recorded to recognize the
future commitment. An asset is created, as part of the oil and gas property, to represent the discounted value of the anticipated
asset retirement obligation liability and depleted over the life of the field on a unit of production basis. The corresponding
accounting entry to the creation of the asset recognizes the discounted value of the future liability. The discount applied to
the anticipated asset retirement obligation liability is subsequently released over the life of the field and is charged to financial
expenses. Changes in asset retirement obligation costs and reserves are treated prospectively and consistent with the treatment
applied upon initial recognition.
R. Revenue and Other Operating Revenue
Revenue associated with the sale of crude oil and natural gas is measured based on the consideration specified in a contract with
a customer and excludes amounts collected on behalf of third parties. The Group recognizes revenue when it transfers control of
the product or service to a customer, which is generally when title passes from the Group to its customer. The Group satisfies its
performance obligations in contracts with customers upon the delivery of crude oil and natural gas, which is generally at a point in
time and the amounts of revenue recognized relating to performance obligations satisfied over time are not significant.
Royalties payments to governments and other mineral interest owners are recognized as a cost in the revenue section.
Production and sales taxes directly attributable to fields, including export duties, are expensed in the income statement and
classified as direct production taxes included within production costs. Production taxes payable in cash are accrued in the
accounting period in which the liability arises.
Prior to April 2021, the Group recognized revenue from the FPSO in other operating revenue as earned from third party participants
in the Bertam field, Malaysia. Other operating revenue also includes pipeline tariffs earned.
S. Employee Benefits
Short-term employee benefits
Short-term employee benefits such as salaries, social premiums and holiday pay, are expensed when incurred.
Pension obligations
The pension obligations consist of defined contribution plans for all companies within the Group except for one Swiss subsidiary,
International Petroleum SA. A defined contribution plan is a pension plan under which the Group pays fixed contributions. The
Group has no further payment obligations once the contributions have been paid. The contributions are recognized as an expense
when they are due.
International Petroleum SA has a defined benefit pension plan that is managed through a private pension plan. Independent
actuaries determine the cost of the defined benefit plan on an annual basis, and the subsidiary pays the annual insurance premium.
The pension plan provides benefits coverage to the employees of International Petroleum SA in the event of retirement, death or
disability. International Petroleum SA and its employees jointly finance retirement and risk benefits. Employees of International
Petroleum SA pay 40% of the savings contributions, of the risk contributions and of the cost contributions and International
Petroleum SA contributes the difference between the total of all required pension plan contributions and the total of all employees’
contributions.
Share-based payments
The Group operates an equity-settled, share-based compensation plan under which the entity receives services from employees,
directors and officers as consideration for equity instruments of the Corporation. Equity-settled share-based payments are
recognized in the income statement as expenses during the vesting period and as equity in the balance sheet. The option is
measured at fair value at the date of the grant using an appropriate options pricing model and is charged to the income statement
over the vesting period without revaluation of the value of the option.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
19
T. Taxation
The components of tax are current and deferred. Tax is recognized in the income statement, except to the extent that it relates
to items recognized in other comprehensive income or directly in equity, in which case it is accounted for consistently with the
related item.
Current tax is tax that is to be paid or received for the year in question and also includes adjustments of current tax attributable to
previous periods.
Deferred income tax is a non-cash charge provided, using the liability method, on temporary differences arising between the
tax bases of assets and liabilities and their carrying values. Temporary differences can occur for example where investment
expenditure is capitalized for accounting purposes but the tax deduction is accelerated or where asset retirement obligation
costs are provided for in the financial statements but not deductible for tax purposes until they are actually incurred. However,
the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a
business combination that at the time of the transaction affects neither accounting nor taxable profit nor loss.
Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the
timing of the reversal of the temporary difference is controlled by the Corporation and it is probable that the temporary difference
will not reverse in the foreseeable future. Deferred income tax is determined using tax rates (and laws) that have been enacted or
substantively enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realized
or the deferred income tax liability is settled. Deferred income tax assets are recognized to the extent that it is probable that future
taxable profit will be available against which the temporary differences can be utilized.
Deferred tax assets are offset against deferred tax liabilities in the balance sheet where they relate to the same jurisdiction and
there is a legally enforceable right to offset.
U. Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker,
which, due to the unique nature of each country’s operations, commercial terms or fiscal environment, is at a country level.
V. Business combinations
Acquisitions of businesses are accounted for using the purchase method of accounting whereby all identifiable assets and
liabilities are recorded at their fair values as at the date of acquisition. Any excess purchase price over the aggregate fair value of
net assets is recorded as goodwill. Goodwill is identified and allocated to cash-generating units (“CGU”), or groups of CGUs, that
are expected to benefit from the synergies of the acquisition. Goodwill is not amortized. Any excess of the aggregate fair value of
net assets over the purchase price is recognized in the consolidated statement of operations.
A CGU to which goodwill has been allocated is tested for impairment at least annually or when events or circumstances indicate
that an assessment for impairment is required. For goodwill arising on an acquisition in a financial year, the CGU to which the
goodwill has been allocated is tested for impairment before the end of that financial year.
When the recoverable amount of the CGU is less than the carrying amount of that CGU, the impairment loss is allocated to
reduce the carrying amount of any goodwill allocated to that CGU first, and then to the other assets of that CGU pro rata on the
basis of the carrying amount of each asset in the CGU. Any impairment loss for goodwill is recognized directly in the consolidated
statement of earnings. An impairment loss for goodwill is not reversed in subsequent periods.
On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the gain or loss on disposal.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
20
2. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
In connection with the preparation of the consolidated financial statements, the Group’s management has made assumptions
and estimates about future events and applied judgments that affect the reported values of assets, liabilities, revenues, expenses
and related disclosures. The assumptions, estimates and judgments are based on historical experience, current trends and other
factors that management believes to be relevant at the time the consolidated financial statements are prepared. On a regular
basis, management reviews the accounting policies, assumptions, estimates and judgments to ensure that the consolidated
financial statements are presented fairly in accordance with IFRS. However, because future events and their effects cannot be
determined with certainty, actual results could differ from these assumptions and estimates, and such differences could be
material.
Management believes the following critical accounting policies affect the more significant judgments and estimates used in the
preparation of the consolidated financial statements:
Estimates in oil and gas reserves
Estimates of oil and gas reserves are used in the calculations for impairment tests and accounting for depletion and asset
retirement obligation. Standard recognized evaluation techniques are used to estimate the proved and probable reserves. These
techniques take into account the future level of development required to produce the reserves. An independent qualified reserves
auditor reviews these estimates. Changes in estimates in oil and gas reserves, resulting in different future production profiles, will
affect the discounted cash flows used in impairment testing, the anticipated date of site decommissioning and restoration and
the depletion charges in accordance with the unit of production method. Changes in estimates in oil and gas reserves could for
example result from additional drilling, observation of long-term reservoir performance or changes in economic factors such as oil
price and inflation rates.
Impairment of oil and gas properties
Key assumptions in the impairment models relate to prices and costs that are based on forward curves and the long-term
corporate assumptions. Annual impairment tests are performed in conjunction with the annual reserves certification process. The
impairment test requires the use of estimates. For the purpose of determining a potential impairment, the significant assumptions
developed by management used to determine the recoverable amount include the proved and probable oil and gas reserves,
expected production volumes, future oil and gas prices, future development costs, future production costs and the discount rate.
These assumptions and judgements of management that are based on them are subject to change as new information becomes
available. Changes in economic conditions can also affect the rate used to discount future cash flow estimates and the discount
rate applied is reviewed throughout the year.
Provision for asset retirement obligations
Amounts used in recording a provision for asset retirement obligations are estimates based on current legal and constructive
requirements and current technology and price levels for the removal of facilities and decommissioning. Due to changes in relation
to these items, the future actual cash outflows in relation to the site decommissioning and restoration can be different. To reflect
the effects due to changes in legislation, requirements and technology and price levels, the carrying amounts of asset retirement
obligation provisions are reviewed on a regular basis.
Deferred income tax assets
The Group accounts for differences that arise between the carrying amount of assets and liabilities and their tax bases in
accordance with IAS 12, Income Taxes, which requires deferred income tax assets only to be recognized to the extent that
is probable that future taxable profits will be available against which the temporary differences can be utilized. Management
estimates future taxable profits based on the financial models used to value its oil and gas properties. Any change to the estimates
and assumptions used for the key operational and financial variables used within the business models could affect the amount of
deferred income tax assets recognized.
The effects of changes in estimates do not give rise to prior year adjustments and are treated prospectively over the estimated
remaining commercial reserves of each field. While the Group uses its best estimates and judgement, actual results could differ
from these estimates.
Fair value of assets acquired and liabilities assumed in a business combination
The fair value of assets acquired and liabilities assumed in a business combination, including contingent consideration and
any goodwill, is estimated based on information available at the date of acquisition. Various valuation techniques are applied
for measuring fair value including market comparables and discounted cash flows which rely on assumptions such as forward
commodity prices, reserves and resources estimates, production costs and discount rates. Changes in these variables could
significantly impact the carrying value of the net assets.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
21
3. SEGMENT INFORMATION
The Group operates within several geographical areas. Operating segments are reported at a country level which is consistent with
the internal reporting provided to the CEO, who is the chief operating decision maker.
The following tables present segment information regarding: revenue, production costs, exploration and evaluation costs and gross
profit. The Group derives its revenue from contracts with customers primarily through the transfer of oil and gas at a point in time.
In addition, certain identifiable asset segment information is reported in Note 8.
2022
USD Thousands
Canada Malaysia France Other Total
Crude oil 778,365 184,143 112,379 – 1,074,887
NGLs 774 – – – 774
Gas 154,754 – – – 154,754
Net sales of oil and gas 933,893 184,143 112,379 – 1,230,415
Change in under/over lift position – – (8,553) – (8,553)
Royalties (105,856) – – – (105,856)
Hedging settlement 19,125 – – – 19,125
Other operating revenue 111 – 716 – 827
Revenue 847,273 184,143 104,542 – 1,135,958
Operating costs (217,017) (35,051) (42,248) – (294,316)
Cost of blending (189,172) – – – (189,172)
Change in inventory position 1,038 (1,916) 720 – (158)
Depletion and decommissioning costs (75,077) (34,687) (12,277) – (122,041)
Depreciation of other assets – (10,787) – – (10,787)
Exploration and business development costs 97 – – (2,872) (2,775)
Gross profit/(loss) 367,142 101,702 50,737 (2,872) 516,709
2021
USD Thousands
Canada Malaysia France Other Total
Crude oil 458,690 100,436 75,949 – 635,075
NGLs 570 – – – 570
Gas 100,019 – – – 100,019
Net sales of oil and gas 559,279 100,436 75,949 – 735,664
Change in under/over lift position – – 5,391 – 5,391
Royalties (46,424) – – – (46,424)
Hedging settlement (33,592) – – – (33,592)
Other operating revenue 171 4,208 927 64 5,370
Revenue 479,434 104,644 82,267 64 666,409
Operating costs (181,297) (27,080) (39,852) – (248,229)
Cost of blending (78,434) – – – (78,434)
Change in inventory position 15 1,837 (196) – 1,656
Depletion and decommissioning costs (72,764) (30,156) (16,093) – (119,013)
Depreciation of other assets – (10,108) – – (10,108)
Exploration and business development costs (8) (259) (7) (1,686) (1,960)
Gross profit/(loss) 146,946 38,878 26,119 (1,622) 210,321
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
22
USD Thousands
Assets Liabilities
2022 2021 2022 2021
Malaysia 251,059 342,636 34,573 200,519
France 209,088 175,479 120,095 106,346
Canada 1,246,105 1,135,017 560,709 695,051
Corporate 172,058 92,899 335,131 40,550
Other 128,218 128,331 (9,311) (15,647)
Intercompany balance elimination
(326,912) (600,688) (326,912) (600,688)
Total Assets / Liabilities
1,679,616 1,273,674 714,285 426,131
Shareholders’ equity N/A N/A 965,140 847,386
Non-controlling interest
N/A N/A 191 157
Total equity for the group
N/A N/A 965,331 847,543
Total consolidated
1,679,616 1,273,674 1,679,616 1,273,674
4. PRODUCTION COSTS
USD Thousands
2022 2021
Cost of operations 245,360 203,537
Tariff and transportation expenses 36,873 33,879
Direct production taxes
12,083 10,813
Operating costs
294,316 248,229
Cost of blending
1
189,172 78,434
Change in inventory position
158 (1,656)
Total production costs
483,646 325,007
1
In Canada, oil production is blended with purchased condensate diluent to meet pipeline specifications. Cost of blending represents the contracted
purchase of diluent used for blending.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
23
5. FINANCE INCOME
USD Thousands
2022 2021
Interest income 6,966 254
Other financial income
33 31
Total finance income
6,999 285
6. FINANCE COSTS
USD Thousands
2022 2021
Foreign exchange loss, net 7,872 1,994
Interest expense 20,689 12,867
Unwinding of asset retirement obligation discount 10,758 11,488
Amortization of loan fees 3,252 2,068
Loan commitment fees 537 1,666
Other financial costs
1,022 416
Total finance costs
44,130 30,499
7. INCOME TAX RECOVERY / (EXPENSE)
USD Thousands
2022 2021
Current tax (29,365) (4,670)
Deferred tax
(98,048) (17,014)
Total tax recovery / (expense)
(127,413) (21,684)
On September 30, 2022, the Council of the European Union (“EU“) agreed to impose an EU-wide windfall profits tax on energy
companies deriving income from operations in EU countries (“Solidarity Contribution”). In 2022, the current tax includes a Solidarity
Contribution relating to the income in France amounting to USD 10,915 thousand.
The deferred tax amount arises primarily where there is a difference in depletion for tax and accounting purposes. The deferred tax
charge in the statement of operations for the current period mainly relates to the tax profit incurred and the tax losses used during
the year 2022.
The tax on the Group’s profit before tax differs from the theoretical amount that would arise using the tax rate of Canada as follows:
USD Thousands
2022 2021
Profit before tax 465,138 167,743
Tax calculated at the corporate tax rate in Canada 25% (116,284) (41,936)
Effect of foreign and domestic tax rates 4,019 2,835
Tax effect of statutory rate change 191 904
Tax effect of recognition / (derecognition) of unrecorded tax losses (5,134) 12,614
Tax effect due to true-up of provision to prior year tax filings 531 1,324
France Solidarity Contribution (windfall tax) (10,915) –
Other
179 2,575
Total tax
(127,413) (21,684)
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
24
Specification of deferred tax assets and tax liabilities
1
USD Thousands
2022 2021
Unused tax loss carry forward 32,815 115,560
Other
5,841 3,414
Deferred tax assets
38,656 118,974
Accelerated allowances 90,400 73,641
Other
2,630 287
Deferred tax liabilities
93,030 73,928
Deferred taxes, net (54,374) 45,046
1
The specification of deferred tax assets and tax liabilities does not agree to the face of the balance sheet due to the netting off of balances in the
balance sheet when they relate to the same jurisdiction.
The deferred tax liabilities consist of accelerated allowances, being the difference between the book and the tax value of oil and
gas properties. The deferred tax liabilities will be released over the life of the oil and gas assets as the book value is depleted for
accounting purposes.
Deferred tax assets in relation to tax loss carried forwards are only recognized in so far that there is a reasonable certainty as to
the timing and the extent of their realization. The recognized unused tax loss carry forward mainly relates to Canada. The Group
has concluded that the deferred assets will be recoverable using the estimated future taxable income based on the approved
business plans and budgets.
8. OIL AND GAS PROPERTIES
USD Thousands
2022 2021
Exploration and Evaluation Assets 4,764 18,037
Property, plant and Equipment
958,611 953,534
Oil and gas properties
963,375 971,571
Exploration and Evaluation Assets
USD Thousands
Canada Malaysia France Total
Cost
January 1, 2022 12,751 181 5,105 18,037
Additions
1
(802) 149 4 (649)
Reclassification (11,974) (330) – (12,304)
Currency translation adjustments 25 – (345) (320)
Net book value December 31, 2022 – – 4,764 4,764
USD Thousands
Canada Malaysia France Total
Cost
January 1, 2021 15,409 44 5,533 20,986
Additions
1
(2,723) 472 7 (2,244)
Expensed exploration and evaluation costs (8) (259) (7) (274)
Reclassification – (76) – (76)
Currency translation adjustments 73 – (428) (355)
Net book value December 31, 2021 12,751 181 5,105 18,037
1
Net revenues on appraisal projects are being offset against capitalised costs of Exploration and Evaluation assets.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
25
Property, Plant and Equipment
USD Thousands Canada Malaysia France Total
Cost
January 1, 2022 1,021,944 534,443 408,211 1,964,598
Additions 118,762 27,305 12,244 158,311
Change in estimates 5,231 4,528 2,182 11,941
Reclassification 11,974 330 – 12,304
Currency translation adjustments
(68,122) – (23,400) (91,522)
December 31, 2022
1,089,789 566,606 399,237 2,055,632
Accumulated depletion
January 1, 2022 (267,585) (450,347) (293,132) (1,011,064)
Depletion charge for the period (75,077) (34,687) (12,277) (122,041)
Currency translation adjustments
19,389 – 16,695 36,084
December 31, 2022
(323,273) (485,034) (288,714) (1,097,021)
Net book value December 31, 2022
766,516 81,572 110,523 958,611
USD Thousands Canada Malaysia France Total
Cost
January 1, 2021 1,004,605 523,728 437,660 1,965,993
Additional working interest
1
– 1,078 – 1,078
Additions 33,450 10,333 2,451 46,234
Change in estimates (18,174) (772) 1,594 (17,352)
Reclassification – 76 – 76
Currency translation adjustments
2,063 – (33,494) (31,431)
December 31, 2021
1,021,944 534,443 408,211 1,964,598
Accumulated depletion
January 1, 2021 (195,322) (420,191) (300,562) (916,075)
Depletion charge for the period (72,764) (30,156) (16,093) (119,013)
Currency translation adjustments
501 – 23,523 24,024
December 31, 2021
(267,585) (450,347) (293,132) (1,011,064)
Net book value December 31, 2021
754,359 84,096 115,079 953,534
1
Relates to the increased decommissioning liability relating to the additional 25% working interest acquired in 2021 in the Bertam field, Malaysia.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
26
Impairment test
The Group carried out its impairment testing at December 31, 2022, on a CGU basis in conjunction with the annual reserves
audit process. The Group used appropriate oil or natural gas price curves based on forward forecasts as at December 31, 2022, a
future cost inflation factor of 2% (2021: 2%) per annum, production and cost profiles based on proved and probable reserves (2P
reserves) as at December 31, 2022 and a discount rate of 10% (8.5% at December 31, 2021) to calculate the estimated future
post-tax cash flows.
The following prices were used in the impairment testing as at December 31, 2022:
Price Decks 2023 2024 2025 2026 2027
Average
annual
increase
thereafter
Dated Brent (USD/bbl) 90.00 87.00 82.00 83.64 85.31 2%
West Texas Intermediate (USD/bbl) 86.00 84.00 80.00 81.60 83.23 2%
Western Canadian Select (USD/bbl) 66.00 71.50 67.25 68.60 69.97 2%
AECO Gas (CAD/mcf) 4.33 4.34 4.00 4.08 4.16 2%
In 2022, as a result of the testing, no impairment of the oil and gas properties was required.
Sensitivities were calculated on the valuation of the estimated future post-tax cash flows. Using a discount rate of 12% instead of
10% or a USD 5/bbl decrease in the oil price curve or using a flat gas price curve at CAD 3.50/mcf did not result in an impairment
charge.
9. OTHER TANGIBLE FIXED ASSETS
USD Thousands FPSO Other Total
Cost
January 1, 2022 206,173 10,163 216,336
Additions – 151 151
Disposals – (44) (44)
Currency translation adjustments
(1,320) (491) (1,811)
December 31, 2022
204,853 9,779 214,632
Accumulated depreciation
January 1, 2022 (162,524) (7,449) (169,973)
Depreciation charge for the period (10,787) (891) (11,678)
Disposals – 36 36
Currency translation adjustments
– 357 357
December 31, 2022
(173,311) (7,947) (181,258)
Net book value December 31, 2022
31,542 1,832 33,374
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
27
USD Thousands FPSO Other Total
Cost
January 1, 2021 208,063 10,413 218,476
Additions – 242 242
Disposals – (72) (72)
Currency translation adjustments
(1,890) (420) (2,310)
December 31, 2021
206,173 10,163 216,336
Accumulated depreciation
January 1, 2021 (152,416) (6,862) (159,278)
Depreciation charge for the period (10,108) (979) (11,087)
Disposals – 72 72
Currency translation adjustments
– 320 320
December 31, 2021
(162,524) (7,449) (169,973)
Net book value December 31, 2021
43,649 2,714 46,363
The FPSO located on the Bertam field, Malaysia, is being depreciated on a unit of production basis based on the Bertam field 2P
reserves to August 2025 being the original PSC expiry date. The depreciation charge is included in the depreciation of other assets
line in the statement of operations.
For office equipment and other assets, the depreciation charge for the year is based on cost and an estimated useful life of 3 to
5 years. The depreciation charge is included within the general, administration and depreciation expenses in the statement of
operations.
10. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES
USD Thousands Buildings
January 1, 2022
1,639
Additions 393
Disposal (66)
Depreciation (717)
Currency translation adjustments
(32)
Right-of-use-assets as at December 31, 2022
1,217
Current 752
Non-Current
507
Lease Liabilities as at December 31, 2022
1,259
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
28
USD Thousands Buildings
January 1, 2021
1,965
Additions 434
Depreciation (737)
Currency translation adjustments
(23)
Right-of-use-assets as at December 31, 2021
1,639
Current 684
Non-Current
980
Lease Liabilities as at December 31, 2021
1,664
11. OTHER NON-CURRENT ASSETS
USD Thousands December 31, 2022 December 31, 2021
Long-term receivables 28,154 28,024
Financial assets
12,971 7,729
41,125 35,753
Long-term receivables represent cash payments made to an asset retirement obligation fund and financial assets include
secured amounts of USD 7.7 million transferred for the future asset retirement obligation, in respect of the Bertam field,
Malaysia. In 2022, an amount of USD 1.9 million was paid into the asset retirement obligation fund which is held in local
currency. (Also see Note 19.)
12. INVENTORIES
USD Thousands December 31, 2022 December 31, 2021
Hydrocarbon stocks 8,988 8,355
Well supplies and operational spares
6,970 11,840
15,958 20,195
13. TRADE AND OTHER RECEIVABLES
USD Thousands December 31, 2022 December 31, 2021
Trade receivables 112,696 91,062
Underlift 599 9,827
Joint operations debtors 982 1,930
Prepaid expenses and accrued income 6,585 6,325
Other
2,747 1,753
123,609 110,897
14. CASH AND CASH EQUIVALENTS
Cash and cash equivalents include only cash at hand or held in bank accounts. As at December 31, 2022, an amount of USD 4
million is restricted. (Also see Note 18.)
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
29
15. SHARE CAPITAL
The Group’s issued common share capital is as follows:
Number of shares
Balance at January 1, 2021 155,342,757
Stock option exercise 25,000
Cancellation of repurchased common shares (169,652)
Balance at December 31, 2021
155,198,105
Cancellation following the Substantial Issuer Bid (8,258,064)
Cancellation of repurchased common shares (10,112,042)
Balance at December 31, 2022
136,827,999
The common shares of IPC trade on both the Toronto Stock Exchange and the Nasdaq Stockholm.
As at January 1, 2021, IPC had a total of 155,342,757 common shares issued and outstanding. Following the exercise of stock
options during February 2021, the number of issued and outstanding common shares of the Corporation increased by 25,000 to
155,367,757 common shares. On December 1, 2021, IPC announced the commencement of a share repurchase program. During
the period up to December 31, 2021, IPC repurchased an aggregate of 1,330,303 common shares, of which 169,652 shares
were cancelled as at December 31, 2021. As at December 31, 2021, IPC had a total of 155,198,105 common shares issued and
outstanding with voting rights.
On May 12, 2022 and June 10, 2022, IPC announced the terms of the Substantial Issuer Bid (“SIB“) to purchase for cancellation
up to CAD 128 million of its common shares commencing on May 16, 2022 and expiring on June 28, 2022. On June 29, 2022, IPC
announced the results of its SIB and in July 2022, IPC cancelled 8,258,064 common shares repurchased under the SIB for a total
amount of CAD 128 million.
During 2022, under the normal course issuer bid / share repurchase program announced in December 2021 and renewed in
December 2022 (NCIB), IPC purchased an aggregate of 8,951,391 common shares and cancelled an aggregate of 10,112,042
common shares.
As at December 31, 2022, IPC has a total of 136,827,999 common shares issued and outstanding with no par value and with no
common shares held treasury.
In addition, IPC has 117,485,389 outstanding class A preferred shares, issued as a part of an internal corporate structuring to a
wholly-owned subsidiary of IPC. Such preferred shares are not listed on any stock exchange, do not carry the right to vote on
matters to be decided by the holders of IPC’s common shares and does not impact the earnings per share calculations.
16. EARNINGS PER SHARE
Basic earnings per share are based on net result attributable to the common shareholders and is calculated based upon the
weighted-average number of common shares outstanding during the periods presented.
USD Thousands
2022 2021
Net result attributable to shareholders of the Parent Company, USD 337,682,813 146,028,617
Weighted average number of shares for the period
146,662,032 155,363,445
Earnings per share, USD
2.30 0.94
Weighted average diluted number of shares for the period
149,976,365 158,432,436
Earnings per share fully diluted, USD
2.25 0.92
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
30
17. SHARE BASED PAYMENTS
IPC Share Unit Plan
The shareholders of IPC at the 2018 Annual General Meeting and at the 2021 Annual General Meeting approved a Share Unit Plan.
Awards under the plan will be accounted from the date of grant.
The IPC Performance Share Plan (“PSP”) 2019 awards vested on June 30, 2022 at a price of CAD 12.83 per award.
The IPC PSP 2020 awards are subject to continued employment and to certain performance conditions being met. The total
outstanding number of awards at December 31, 2022, is 1,017,105 which vest on March 1, 2023. Each award was fair valued
at the grant date at CAD 3.65 using an adjusted share price calculated with a hybrid valuation model based on the Monte Carlo
simulation. The assumptions used in the calculation of the adjusted share price were a risk free rate of -0.39%, expected volatility
of 47%, dividend yield rate of 0%, and an exercise price of CAD zero.
The IPC PSP 2021 awards are subject to continued employment and to certain performance conditions being met. The total
outstanding number of awards at December 31, 2022, is 1,716,000 which vest on March 1, 2024. Each award was fair valued
at the grant date at CAD 3.61 using an adjusted share price calculated with a hybrid valuation model based on the Monte Carlo
simulation. The assumptions used in the calculation of the adjusted share price were a risk free rate of 0.45%, expected volatility
of 68%, dividend yield rate of 0%, and an exercise price of CAD zero.
The IPC PSP 2022 awards are subject to continued employment and to certain performance conditions being met. The total
outstanding number of awards at December 31, 2022, is 937,000 which vest on March 1, 2025. Each award was fair valued at
the grant date at CAD 8.40 using an adjusted share price calculated with a hybrid valuation model based on the Monte Carlo
simulation. The assumptions used in the calculation of the adjusted share price were a risk free rate of 0.38%, expected volatility
of 45%, dividend yield rate of 0%, and an exercise price of CAD zero.
IPC Performance Share Plan 2019 Awards 2020 Awards 2021 Awards 2022 Awards Total
Outstanding at January 1, 2022 860,349 1,017,105 1,716,000 – 3,593,454
Awarded during the period – – – 937,000 937,000
Forfeited during the period – – – – –
Vested during the period
(860,349) – – – (860,349)
Outstanding at December 31, 2022
– 1,017,105 1,716,000 937,000 3,670,105
Vesting date
March 1, 2023 – 1,017,105 – – 1,017,105
March 1, 2024 – – 1,716,000 – 1,716,000
March 1, 2025
– – – 937,000 937,000
Outstanding at December 31, 2022
– 1,017,105 1,716,000 937,000 3,670,105
The last third of the IPC Restricted Share Plan (“RSP”) 2019 awards vested on June 30, 2022, at a price of CAD 12.83 per award.
The second third of the IPC RSP 2020 awards vested on March 1, 2022, at a price of CAD 8.93 per award. The total outstanding
number of 2020 awards under the IPC RSP as at December 31, 2022, is 199,304 which vest on March 1, 2023, subject to
continued employment. Each award was fair valued at the grant date at CAD 4.35
The first third of the IPC RSP 2021 awards vested on March 1, 2022, at a price of CAD 8.93 per award. The total outstanding
number of 2021 awards under the IPC RSP as at December 31, 2022, is 674,225 which vest over two years on each of March 1,
2023 and March 1, 2024, subject to continued employment. Each award was fair valued at the grant date at CAD 4.07.
The total outstanding number of IPC RSP 2022 awards as at December 31, 2022, is 484,534 which vest over three years as to
one-third on each of March 1, 2023, March 1, 2024, and March 1, 2025, subject to continued employment. Each award was fair
valued at the grant date at CAD 9.09.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
31
IPC Restricted Share Plan 2019 Awards 2020 Awards 2021 Awards 2022 Awards Total
Outstanding at January 1, 2022 132,142 404,410 1,036,773 – 1,573,325
Awarded during the period – – – 484,534 484,534
Forfeited during the period (5,881) (4,077) (22,924) – (32,882)
Vested during the period
(126,261) (201,029) (339,624) – (666,914)
Outstanding at December 31, 2022
– 199,304 674,225 484,534 1,358,063
Vesting date
March 1, 2023 – 199,304 337,112 161,511 697,927
March 1, 2024 – – 337,113 161,511 498,624
March 1, 2025
– – – 161,512 161,512
Outstanding at December 31, 2022
– 199,304 674,225 484,534 1,358,063
Under the IPC Share Unit Plan, the Group allows non-employee directors of the Corporation to elect for awards for fees for
services performed as a director and otherwise payable in cash. These awards will vest immediately at the time of grant. However,
these awards may not be redeemed before the end of service as a director of the Corporation. The 2019 outstanding RSP awards
as at December 31, 2022 is 10,703 awards issued with a fair value at the grant date at CAD 5.76. The 2020 outstanding RSP
awards as at December 31, 2022 is 25,335 awards issued with a fair value at the grant date at CAD 2.56, and 21,216 awards
issued with a fair value at the grant date at CAD 2.85. The 2021 outstanding RSP awards as at December 31, 2022 is 10,067
awards issued with a fair value at the grant date at CAD 5.75, and 12,543 awards issued with a fair value at the grant date at CAD
6.95. The 2022 outstanding RSP awards as at December 31, 2022 is 5,487 awards issued with a fair value at the grant date at CAD
12.80, and 2,072 awards issued with a fair value at the grant date at CAD 15.53. In 2022, 24,565 awards issued in 2020 and 8,100
awards issued in 2021 have been redeemed at a price of CAD 8.30.
The total outstanding RSP awards to non-employee directors outstanding as at December 31, 2022, is 87,423.
The costs charged to the statement of operations of the Group for the Share-Based payments are summarized in the following
table:
USD Thousands
2022 2021
IPC PSP – 2018 Awards – 337
IPC RSP – 2018 Awards – 81
IPC PSP – 2019 Awards 488 984
IPC RSP – 2019 Awards 90 397
IPC PSP – 2020 Awards 984 984
IPC RSP – 2020 Awards 252 643
IPC PSP – 2021 Awards 1,712 1,431
IPC RSP – 2021 Awards 981 1,599
IPC PSP – 2022 Awards 1,721 –
IPC RSP – 2022 Awards
1,769 –
7,997 6,457
18. FINANCIAL LIABILITIES
USD Thousands December 31, 2022 December 31, 2021
Bank loans 12,142 113,121
Bonds 300,000 –
Capitalized financing fees
(4,560) (2,096)
307,582 111,025
As at January 2022, IPC had an outstanding EUR 13 million unsecured credit facility in France (the “France Facility“), with maturity
in May 2026. IPC commenced quarterly repayments of the French Facility in August 2022. The amount remaining outstanding
under the France Facility as at December 31, 2022 was USD 12 million (EUR 11 million).
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
32
As at January 2022, the Group had a reserve-based lending (RBL) credit facility of USD 140 million in connection with its oil and
gas assets in France and Malaysia and a RBL credit facility of CAD 300 million in connection with its oil and gas assets in Canada.
In February 2022, IPC completed the issuance of USD 300 million of Bonds, which mature in February 2027 and have a fixed
coupon rate of 7.25% per annum, payable in semi-annual instalments in August and February. The Group used a portion of the
proceeds of the Bonds to fully repay the outstanding RBL credit facilities, which were then cancelled. At the same time, the Group
entered into a revolving credit facility of CAD 75 million (the “Canadian RCF”) in connection with its oil and gas assets in Canada.
The Canadian RCF has a maturity of February 2024 and no cash amounts were drawn under the Canadian RCF as at December 31,
2022.
The Bonds repayment obligations as at December 31, 2022 as at December 31, 2022, are classified as non-current as there are no
mandatory repayments within the next twelve months. An amount of USD 3.4 million (EUR 3.2 million) drawn under the France
Facility as at December 31, 2022 is classified as current representing the repayment planned within the next twelve months.
The Group is in compliance with the covenants of the Bonds and its financing facilities as at December 31, 2022.
The net (debt)/cash and the movements in net (debt)/cash can be summarized as follows:
USD Thousands
Cash
Lease
liabilities
Bank loans due
before 1 year
Bank loans
due
after 1 year
Bonds due
after 1 year
Total
Net (debt)/cash as at January 1, 2022 18,810 (1,664) (1,806) (111,315) – (95,975)
Bonds – – – – (300,000) (300,000)
France Facility – – (1,625) 1,625 – –
Cash flows 455,115 – – 100,979 – 556,094
Lease liabilities – 405 – – – 405
Currency translation adjustments
13,315 – – – – 13,315
Net (debt)/cash as at December 31, 2022
487,240 (1,259) (3,431) (8,711) (300,000) 173,839
Net cash (excluding lease liabilities) 175,098
USD Thousands
Cash
Lease
liabilities
Bank loans due
before 1 year
Bank loans due
after 1 year
Total
Net (debt)/cash as at January 1, 2021 6,498 (2,018) (22,982) (304,709) (323,211)
Granite Facility – – 22,982 – 22,982
France Facility – – (1,806) 1,806 –
Cash flows 12,368 – – 192,837 205,205
Lease liabilities – 354 – – 354
Currency translation adjustments
(56) – – (1,249) (1,305)
Net (debt)/cash as at December 31, 2021
18,810 (1,664) (1,806) (111,315) (95,975)
Net (debt)/cash (excluding lease liabilities) (94,311)
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
33
19. PROVISIONS
USD Thousands
Asset
retirement
obligation
Farm-in
obligation
Pension
obligation
Other Total
January 1, 2022 196,362 4,199 4,448 1,357 206,366
Additions – – 542 1,034 1,576
Unwinding of asset retirement obligation discount 10,758 – – – 10,758
Changes in estimates 11,375 567 (3,778) – 8,164
Payments (5,809) (1,153) (718) (865) (8,545)
Reclassification
1
1,909 – – – 1,909
Currency translation adjustments (8,346) (209) (188) (48) (8,791)
December 31, 2022 206,249 3,404 306 1,478 211,437
Non-current 199,335 2,270 306 1,478 203,389
Current 6,914 1,134 – – 8,048
Total 206,249 3,404 306 1,478 211,437
1
The reclassification of the asset retirement obligation related to the 2022 payment to the asset retirement obligation fund in respect of the Bertam
asset, Malaysia (see Note 11).
USD Thousands
Asset
retirement
obligation
Farm-in
obligation
Pension
obligation
Other Total
January 1, 2021 192,701 4,350 5,558 1,540 204,149
Additions
1
15,993 – 293 159 16,445
Unwinding of asset retirement obligation discount 11,488 – – – 11,488
Changes in estimates (17,952) 600 (578) – (17,930)
Payments (3,945) (601) (629) (277) (5,452)
Reclassification
2
1,414 – – – 1,414
Currency translation adjustments (3,337) (150) (196) (65) (3,748)
December 31, 2021 196,362 4,199 4,448 1,357 206,366
Non-current 190,607 2,399 4,448 1,357 198,811
Current 5,755 1,800 – – 7,555
Total 196,362 4,199 4,448 1,357 206,366
1
The addition of USD 15,993 thousand relates to the increased decommissioning liability relating to the additional 25% working interest in the
Bertam field, Malaysia acquired in April 2021. The majority of this additional liability is covered by secured amounts provided on assignment of the
working interest. (See also Note 11).
2
The reclassification of the asset retirement obligation related to the 2021 payment to the asset retirement obligation fund in respect of the Bertam
asset, Malaysia (see Note 11).
The farm-in obligation relates to future payments for historic costs on Block PM307 in Malaysia payable on reaching certain Bertam
field production milestones.
In calculating the present value of the asset retirement obligation provision, a blended rate of 6% (2021: 6%) per annum was used,
based on a credit risk adjusted rate.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
34
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
20. PENSION LIABILITY
The Group operates a pension plan for employees in Switzerland that is managed through a private pension plan. The amount
recognized in the balance sheet associated with the Swiss pension plan is as follows:
USD Thousands December 31, 2022 December 31, 2021
Present value of defined benefit obligation 13,910 14,714
Fair value of plan assets
(13,604) (10,266)
Pension obligation, ending balance
306 4,448
The movement in the defined benefit obligation over the year is as follows:
USD Thousands
For the year ended
December 31, 2022
For the year ended
December 31, 2021
Opening balance 14,714 15,316
Current service cost 596 636
Additional contributions paid by employees 2,291 237
Ordinary contributions paid by employees 479 419
Interest expense on defined benefit obligation 28 29
Actuarial loss on defined benefit obligation (3,706) (552)
Administration costs 13 13
Benefits paid from plan assets (232) (485)
Past service cost (75) (366)
Foreign exchange loss
(198) (533)
Defined benefit obligation, ending balance
13,910 14,714
The weighted average duration of the defined benefit obligation is 15.5 years. There is no maturity profile since the average
remaining life before active employees reach final age according to the plan is 10.3 years.
The movement in the fair value of the plan assets over the year is as follows:
USD Thousands
For the year ended
December 31, 2022
For the year ended
December 31, 2021
Opening balance 10,266 9,758
Additional contributions paid by employees 2,291 237
Ordinary contributions paid by employer 718 629
Ordinary contributions paid by employees 479 419
Interest income on plan assets 20 19
Return on plan assets excluding interest income 71 26
Foreign exchange gain (9) (337)
Benefits paid from plan assets
(232) (485)
Fair value of plan assets, ending balance
13,604 10,266
The plan assets are under an insurance contract comprised entirely of free funds and reserves, such as fluctuation reserves and
employer contribution reserves, for which there is no quoted price in an active market.
35
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
The amount recognized in the income statement associated with the Group’s pension plan is as follows:
USD Thousands
For the year ended
December 31, 2022
For the year ended
December 31, 2021
Current service cost 596 636
Interest expense on defined benefit obligation 28 29
Administration costs 13 13
Past service cost (75) (366)
Interest income on plan assets
(20) (19)
Total expense recognized
542 293
The expense associated with the Group’s pension plan of USD 542 thousand was included within general and administrative
expenses. The Group also recognized in other comprehensive income a USD 3,778 thousand net actuarial gain on defined benefit
obligations and pension plan assets.
The principal actuarial assumptions used to estimate the Group’s pension obligation are as follows:
USD Thousands
For the year ended
December 31, 2022
For the year ended
December 31, 2021
Discount rate 2.25% 0.20%
Inflation rate 1.25% 1.00%
Future salary increase 1.25% 1.00%
Future pension increases 0.00% 0.00%
Retirement ages, male (‘M’) and female (‘F’) M65/F64 M65/F64
Assumptions regarding future mortality are set based on actuarial advice in accordance with the BVG 2020 GT generational
published statistics and experience in Switzerland. The discount rate is determined by reference to the yield on high quality
corporate bonds. The rate of inflation is based on the expected value of future annual inflation adjustments in Switzerland. The rate
for future salary increases is based on the average increase in the salaries paid by the Group, and the rate of pension increases is
based on the annual increase in risk, retirement and survivors’ benefits.
The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:
Change in
assumption
Increase in
assumption
Decrease in
assumption
Discount rate 0.50% Decrease by 7.1% Increase by 8.0%
Salary growth rate 0.50% Increase by 0.3% Decrease by 0.3%
Life Expectancy One year Increase by 0.9% Decrease by 0.9%
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice,
this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the
defined benefit obligation to significant actuarial assumptions, the same method has been applied as when calculating the pension
liability recognized within the consolidated balance sheet.
21. TRADE AND OTHER PAYABLES
USD Thousands December 31, 2022 December 31, 2021
Trade payables 20,547 9,043
Joint operations creditors 14,348 20,201
Accrued expenses 78,206 45,329
Other
5,625 5,268
118,726 79,841
36
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
22. FINANCIAL ASSETS AND LIABILITIES
Financial assets and liabilities by category
The accounting policies for financial instruments have been applied to the line items below:
December 31, 2022
USD Thousands
Total
Financial assets
at amortized
cost
Fair value
recognized in
profit or loss
(FVTPL)
Derivatives
used for
hedging
Other assets
1
41,125 41,125 – –
Derivative instruments 11,741 – – 11,741
Joint operation debtors 982 982 – –
Other current receivables
2
116,060 115,461 599 –
Cash and cash equivalents
487,240 487,240 – –
Financial assets
657,148 644,808 599 11,741
1
See Note 11.
2
Prepayments are not included in other current assets, as prepayments are not deemed to be financial instruments.
December 31, 2022
USD Thousands
Total
Financial
liabilities at
amortized cost
Fair value
recognized in
profit or loss
(FVTPL)
Derivatives
used for
hedging
Non-current financial liabilities 304,151 304,151 – –
Current financial liabilities 3,431 3,431 – –
Derivative instruments 1,155 – – 1,155
Joint operation creditors 14,348 14,348 – –
Other current liabilities
122,171 122,171 – –
Financial liabilities
445,256 444,101 – 1,155
December 31, 2021
USD Thousands
Total
Financial
assets at
amortized cost
Fair value
recognized in
profit or loss
(FVTPL)
Derivatives
used for
hedging
Other assets
1
35,753 35,753 – –
Derivative instruments 1,159 – – 1,159
Joint operation debtors 1,930 1,930 – –
Other current receivables
2
102,741 92,914 9,827 –
Cash and cash equivalents
18,810 18,810 – –
Financial assets
160,393 149,407 9,827 1,159
1
See Note 11.
2
Prepayments are not included in other current assets, as prepayments are not deemed to be financial instruments.
December 31, 2021
USD Thousands
Total
Financial
liabilities at
amortized cost
Fair value
recognized in
profit or loss
(FVTPL)
Derivatives
used for
hedging
Non-current financial liabilities 109,219 109,219 – –
Current financial liabilities 1,806 1,806 – –
Joint operation creditors 20,201 20,201 – –
Other current liabilities
64,733 64,733 – –
Financial liabilities
195,959 195,959 – –
37
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
The carrying amount of the Group’s financial assets approximate their fair values at the balance sheet dates.
For financial instruments measured at fair value in the balance sheet, the following fair value measurement hierarchy is used:
– Level 1: based on quoted prices in active markets;
– Level 2: based on inputs other than quoted prices as within level 1, that are either directly or indirectly observable;
– Level 3: based on inputs which are not based on observable market data.
Based on this hierarchy, financial instruments measured at fair value can be detailed as follows:
December 31, 2022
USD Thousands
Level 1 Level 2 Level 3
Other current receivables 599 – –
Derivative instruments – current
– 11,741 –
Financial assets
599 11,741 –
Derivative instruments – current
– 1,155 –
Financial liabilities
– 1,155 –
December 31, 2021
USD Thousands
Level 1 Level 2 Level 3
Other current receivables 9,827 – –
Derivative instruments – current
– 1,159 –
Financial assets
9,827 1,159 –
Derivative instruments – current
– – –
Financial liabilities
– – –
23. MANAGEMENT OF FINANCIAL RISK
The Corporation’s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk, foreign exchange
risk, commodity price risk and interest rate risk.
a) Credit risk
The exposure to credit risk arises through the failure of a customer or another third party to meet its contractual obligations to the
Corporation. The Corporation believes that its maximum exposure to credit risk as at December 31, 2022, is the carrying value of
its trade receivables. The Group’s policy is to limit credit risk by limiting the counterparties to major oil and gas companies. Where
it is determined that there is a credit risk for oil and gas sales, the policy is to require an irrevocable letter of credit for the full value
of the sale. The policy on joint operation parties is to rely on the provisions of the underlying joint operating agreements to take
possession of the licence or the partner’s share of production for non-payment of cash calls or other amounts due.
As at December 31, 2022, the trade receivables amounted to USD 112,696 thousand and there is no recent history of default. The
expected credit loss associated with these receivables is not significant. Cash and cash equivalents are maintained with banks
having strong long-term credit ratings.
b) Liquidity risk
Liquidity risk is defined as the risk that the Group could not be able to settle or meet its obligations on time or at a reasonable
price. Corporation treasury is responsible for liquidity, funding as well as settlement management. The Corporation has in
place a planning and forecasting process to help determine the funds required to support the Corporation’s normal operating
requirements on an ongoing basis. The Corporation ensures that there is sufficient available capital to meet its short-term business
requirements, taking into account its anticipated cash flows from operations and its holdings of cash and cash equivalents,
including bond proceeds. The Corporation has credit facilities in place to assist with meeting its cash flow needs as required (Note
18).
The table below analyses the Group’s financial liabilities into relevant maturity groupings based on the remaining period at the
balance sheet date to the contractual maturity date. Loan repayments are made upon a net present value calculation of the assets’
future cash flows. No loan repayments are currently forecast under this calculation.
38
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
USD Thousands December 31, 2022 December 31, 2021
Non-current
Repayment within 2 - 5 years:
- Bank loans 8,711 111,315
- Bonds
300,000 –
308,711 111,315
Current
Repayment within 6 to 12 months:
- Bank loans 3,431 1,806
Repayment within 6 months:
- Trade payables 20,547 9,043
- Joint operation creditors 14,348 20,201
- Other current liabilities 5,625 5,268
- Current tax liabilities
17,793 5,093
61,744 41,411
c) Foreign exchange risk
The Group operates internationally and is exposed to foreign exchange risk arising from various currencies, primarily with respect
to EUR and CAD. The Group’s risk management objective is to manage cash flow risk related to foreign denominated cash flows.
The Corporation is exposed to currency risk related to changes in rates of exchange between foreign denominated balances and
the functional currencies of the Group’s principal operating subsidiaries. The Group’s revenues are denominated in US dollars,
while most of its operating and capital expenditures are denominated in the local currencies. A significant change in the currency
exchange rates between the US dollar and foreign currencies could have a material effect on the Group’s net earnings and on other
comprehensive income.
In October 2022, IPC entered into currency hedge swaps for 2023 to buy CAD 15 million per month, sell USD at an average
exchange rate of 1.3619 and to buy EUR 3 million per month, sell USD at an average exchange rate of 1.0000. This is to partially
fund operational expenditures in those currencies in Canada and France respectively.
The above hedges are treated as effective and changes to the fair value are reflected in other comprehensive income.
The outstanding derivative instruments can be specified as follows:
Fair value of outstanding derivative instruments in the balance sheet
USD Thousands
December 31, 2022 December 31, 2021
Assets Liabilities Assets Liabilities
Currency hedge - CAD 1,084 – – –
Currency hedge - EUR
2,886 – – –
Total
3,970 – – –
Non-current – – – –
Current
3,970 – – –
Total
3,970 – – –
The following tables summarize the effects that changes in currencies against the US Dollar would have on operating result and
equity through the conversion of the income statements of the Group’s subsidiaries from functional currency to the presentation
currency US Dollar for the years ended at December 31, 2022 and 2021.
39
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
Shift of currency exchange rates
USD Thousands
Average rate
2022
USD weakening
10%
USD strengthening
10%
Operating profit in the financial statements 502,269 502,269
EUR/USD 0.9489 0.8626 1.0437
CAD/USD 1.3015 1.1832 1.4317
Total effect on operating profit
(41,376) 41,376
Shift of currency exchange rates
USD Thousands
Average rate
2021
USD weakening
10%
USD strengthening
10%
Operating profit in the financial statements 197,956 197,956
EUR /USD 0.8450 0.7681 0.9294
CAD/USD 1.2536 1.1396 1.3790
Total effect on operating profit
(16,961) 16,961
d) Commodity price risk
The Group is subject to price risk associated with fluctuations in the market prices for oil and gas. Prices of oil and gas are affected by
the normal economic drivers of supply and demand as well as the financial investors and market uncertainty. Factors that influence
these include operational decisions, natural disasters, economic conditions, political instability or conflicts or actions by major oil
exporting countries. Price fluctuations can affect the Corporation’s financial position.
Commodity price risk is the risk that future cash flows will fluctuate as a result of changes in the price of oil and natural gas.
Commodity prices are impacted by world economic events that affect supply and demand, which are generally beyond the Group’s
control. Changes in crude oil prices may significantly affect the Corporation’s results of operations, cash generated from operating
activities, capital spending and the Corporation’s ability to meet its obligations. The majority of the Corporation’s production is sold
under short-term contracts; consequently the Group is at risk to near term price movements. The Corporation manages this risk by
constantly monitoring commodity prices and factoring them into operational decisions, such as contracting or expanding its capital
expenditures program.
The Corporation enters into certain risk management contracts in order to manage the exposure to market risks from fluctuations
in commodity prices. These risk management contracts are not used for trading or speculative purposes. The Corporation has
designated its risk management contracts as effective accounting hedges, and thus has applied hedge accounting. As a result, all
risk management contracts are recorded at fair value at each reporting period with the change in fair value being recognized on the
statement of comprehensive income.
The Group had gas price sale financial hedges outstanding as at December 31, 2022, which are summarized as follows:
Period
Volume (Gigajoules
(GJ) per day)
Type Average Pricing
January 1, 2023 – March 31, 2023 35,000
AECO Swap CAD 6.03/GJ
April 1, 2023
– October 31, 2023 35,000 AECO Swap CAD 3.95/GJ
The Group had oil price sale financial hedges outstanding as at December 31, 2022, which are summarized as follows:
Period Volume (barrels per day) Type Average Pricing
January 1, 2023 – December 31, 2023 12,000
WCS/ARV Differential USD - 10.08/bbl
All of the above hedges are treated as effective and changes to the fair value are reflected in other comprehensive income.
40
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
The outstanding derivative instruments can be specified as follows:
Fair value of outstanding derivative instruments in the balance sheet
USD Thousands
December 31, 2022 December 31, 2021
Assets Liabilities Assets Liabilities
Oil price hedge – 1,155 – –
Gas price hedge
7,771 – 1,159 –
Total
7,771 1,155 1,159 –
Non-current – – – –
Current
7,771 1,155 1,159 –
Total
7,771 1,155 1,159 –
In addition to the outstanding derivative instruments in the balance sheet disclosed above, an amount of USD 19,125 thousand was
recognised in the statement of operations in relation to settled oil and gas derivatives.
The table below summarizes the effect that a change in the oil and gas price would have had on the net result and equity at
December 31, 2022 and 2021:
2022 Net result (USD Thousands) 337,725 337,725
Possible shift (%) (10%) 10%
Total effect on net income (USD Thousands) (91,032) 91,032
2021 Net result (USD Thousands) 146,059 146,059
Possible shift (%) (10%) 10%
Total effect on net income (USD Thousands) (54,368) 54,368
e) Interest rate risk
The Group’s exposure to interest rate risk arises from both the interest rate impact on its cash and cash equivalents as well as on its
debt facilities. As at December 31, 2022, the Group’s long-term debt is mainly comprised of a fixed coupon rate of 7.25%. As such,
changes in interest rate will not have an adverse impact on interest expense.
24. MANAGEMENT OF CAPITAL RISK
The objectives when managing capital are to safeguard the Group’s ability to continue as a going concern and to meet its committed
work program requirements in order to create shareholder value. The Corporation may put in place new credit facilities, repay debt, or
other such restructuring activities as appropriate. Management continuously monitors and manages the capital and liquidity position in
order to assess the requirement for changes to the capital structure to meet the objectives and to maintain flexibility.
No significant changes were made in the objectives, policies or procedures during the year ended December 31, 2022 or in the
comparative periods.
Through the ongoing management of its capital, the Corporation will modify the structure of its capital based on changing economic
conditions in the jurisdictions in which it operates. In doing so, the Corporation may issue new shares or debt, buy back issued
shares, or pay off any outstanding debt.
41
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
25. SALARY AND OTHER COMPENSATION EXPENSES
a) Employee compensation expenses
The following table provides a breakdown of gross salaries, short-term benefits, share-based compensation and other compensation
expenses included in the consolidated statement of comprehensive income (loss):
USD Thousands 2022 2021
Salaries, bonuses and other short-term benefits 45,073 44,033
Security social costs 7,040 5,556
Share-based incentive plans
1
7,997 6,457
60,110 56,046
1
Vested during the period and based on IFRS 2 valuation (see Note 17)
b) Remuneration of Directors and Senior Management
Remuneration of Directors and Senior Management includes all amounts earned and awarded to the Group’s Board of Directors and
Senior Management. Senior Management includes the Group’s President and Chief Executive Officer, Chief Financial Officer, General
Counsel and Corporate Secretary, Chief Operating Officer, Senior Vice President Canada, Vice President of Asset Management and
Corporate Planning Canada and Vice President of Corporate Planning and Investor Relations.
Directors’ fees include Board and Committee fees. Senior Management’s remuneration includes salary, short-term benefits, bonuses
and any other compensation earned in 2021 and in 2022.
USD Thousands 2022 2021
Directors’ fees 597 650
Senior Management’s salaries, bonuses and other short-term benefits 5,790 4,818
Share-based incentive plans paid to Senior Management
6,207 641
12,594 6,109
26. CONTRACTUAL OBLIGATIONS AND COMMITMENTS
In Canada, an oil pipeline from the Onion Lake Thermal field to a gathering system has been built by a third party for the exclusive
use of IPC. Onion Lake Thermal oil production is blended with condensate before being transported via the pipeline and is
therefore expected to attract improved realized prices as a result of the blended oil. The pipeline is also expected to improve the
reliability and uptime of the transportation and production at Onion Lake Thermal. The initial investment in the pipeline was met
by the pipeline owner and is to be recovered through an agreed tariff charged to IPC. IPC has committed to a firm transportation
service for 15 years from commencement of service in April 2022, with total remaining tariffs committed as shown in the table
below:
2023 2024 2025 2026 2027 Thereafter
Transportation service (MCAD) 27.3 28.0 28.4 29.0 29.0 303.3
In Malaysia, IPC has an obligation to make payments towards historic costs on Block PM307 payable on the Bertam field for every
1 MMboe gross that the field produces above 10 MMboe gross. The estimated liability based on current 2P reserves and which is
capped at cumulative production of 27.5 MMboe gross, has been provided for in the Group’s Balance Sheet (see Note 19).
27. RELATED PARTIES
Orrön Energy (formerly Lundin Energy) has charged the Group USD 605 thousand in respect of office space rental and USD
1,480 thousand in respect of shared services provided during the year 2022. Lundin Foundation has charged the Group USD 200
thousand in respect of sustainability advisory services provided to the Group during the year 2022.
All transactions with related parties are in the normal course of business and are made on the same terms and conditions as with
parties at arm’s length.
42
Notes to the Consolidated Financial Statements
For the years ended December 31, 2022 and 2021, AUDITED
28. SUBSEQUENT EVENTS
On February 6, 2023, IPC announced the acquisition of Cor4 Oil Corp., a private company for a consideration of USD 62 million.
This transaction is forecast to add approximately 4,000 boepd to the Suffield area production in 2023. The completion of the Cor4
Acquisition remains subject to certain conditions and is expected to occur by the end of Q1 2023.
On February 7, 2023, IPC also announced the decision to advance development of Phase 1 of the Blackrod project, Canada, which
matures 218 MMboe into 2P reserves, with forecast first oil in late 2026 and production planned to increase to 30,000 boepd by
2028.
Corporate Office
International Petroleum Corp
Suite 2000
885 West Georgia Street
Vancouver, BC
V6C 3E8, Canada
Tel: +1 604 689 7842
E-mail: info@international-petroleum.com
Web: international-petroleum.com
54930025D80LU0SMR6452022-01-012022-12-3154930025D80LU0SMR6452021-01-012021-12-3154930025D80LU0SMR6452022-12-3154930025D80LU0SMR6452021-12-3154930025D80LU0SMR6452020-12-3154930025D80LU0SMR6452020-12-31INT:IssuedCapitalAndSharePremiumMember54930025D80LU0SMR6452021-01-012021-12-31INT:IssuedCapitalAndSharePremiumMember54930025D80LU0SMR6452021-12-31INT:IssuedCapitalAndSharePremiumMember54930025D80LU0SMR6452020-12-31ifrs-full:RetainedEarningsMember54930025D80LU0SMR6452021-01-012021-12-31ifrs-full:RetainedEarningsMember54930025D80LU0SMR6452021-12-31ifrs-full:RetainedEarningsMember54930025D80LU0SMR6452020-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember54930025D80LU0SMR6452021-01-012021-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember54930025D80LU0SMR6452021-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember54930025D80LU0SMR6452020-12-31ifrs-full:ReserveOfSharebasedPaymentsMember54930025D80LU0SMR6452021-01-012021-12-31ifrs-full:ReserveOfSharebasedPaymentsMember54930025D80LU0SMR6452021-12-31ifrs-full:ReserveOfSharebasedPaymentsMember54930025D80LU0SMR6452020-12-31ifrs-full:ReserveOfCashFlowHedgesMember54930025D80LU0SMR6452021-01-012021-12-31ifrs-full:ReserveOfCashFlowHedgesMember54930025D80LU0SMR6452021-12-31ifrs-full:ReserveOfCashFlowHedgesMember54930025D80LU0SMR6452020-12-31ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember54930025D80LU0SMR6452021-01-012021-12-31ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember54930025D80LU0SMR6452021-12-31ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember54930025D80LU0SMR6452020-12-31ifrs-full:EquityAttributableToOwnersOfParentMember54930025D80LU0SMR6452021-01-012021-12-31ifrs-full:EquityAttributableToOwnersOfParentMember54930025D80LU0SMR6452021-12-31ifrs-full:EquityAttributableToOwnersOfParentMember54930025D80LU0SMR6452020-12-31ifrs-full:NoncontrollingInterestsMember54930025D80LU0SMR6452021-01-012021-12-31ifrs-full:NoncontrollingInterestsMember54930025D80LU0SMR6452021-12-31ifrs-full:NoncontrollingInterestsMember54930025D80LU0SMR6452022-01-012022-12-31INT:IssuedCapitalAndSharePremiumMember54930025D80LU0SMR6452022-12-31INT:IssuedCapitalAndSharePremiumMember54930025D80LU0SMR6452022-01-012022-12-31ifrs-full:RetainedEarningsMember54930025D80LU0SMR6452022-12-31ifrs-full:RetainedEarningsMember54930025D80LU0SMR6452022-01-012022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember54930025D80LU0SMR6452022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember54930025D80LU0SMR6452022-01-012022-12-31ifrs-full:ReserveOfSharebasedPaymentsMember54930025D80LU0SMR6452022-12-31ifrs-full:ReserveOfSharebasedPaymentsMember54930025D80LU0SMR6452022-01-012022-12-31ifrs-full:ReserveOfCashFlowHedgesMember54930025D80LU0SMR6452022-12-31ifrs-full:ReserveOfCashFlowHedgesMember54930025D80LU0SMR6452022-01-012022-12-31ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember54930025D80LU0SMR6452022-12-31ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember54930025D80LU0SMR6452022-01-012022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember54930025D80LU0SMR6452022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember54930025D80LU0SMR6452022-01-012022-12-31ifrs-full:NoncontrollingInterestsMember54930025D80LU0SMR6452022-12-31ifrs-full:NoncontrollingInterestsMemberiso4217:USDiso4217:USDxbrli:shares