We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Greka Engineer. | LSE:GEL | London | Ordinary Share | KYG411211074 | ORD USD0.00001 (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.85 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMGEL
RNS Number : 2072J
Greka Engineering & Technology Ltd
10 June 2014
10 June 2014
GREKA ENGINEERING & TECHNOLOGY LTD.
("Greka Engineering" or the "Company")
Final Results
Greka Engineering & Technology Ltd. (AIM: GEL), the unconventional gas sector engineering and technology business with pipeline, gas compression and power generation assets in China, is pleased to announce its audited financial results for the year ended 31 December 2013.
HIGHLIGHTS
OPERATIONAL HIGHLIGHTS
l Sales of 136 gas station refueling equipment items in 2013, compared to 101 dispensers sales in 2012, sales of 3 wellhead compressors in 2013, compared with 7 compressors in 2012, sales of 2 SCADA in 2013, compared with 12 SCADA in 2012
l 1,038,263 thousand cubic feet of gas for sale were processed in 2013, compared with 564,680 thousand cubic feet in 2012, an 84% increase
l 10,714,823 kwh of power sales in 2013, there were no power sales in 2012
l 0.4km of trunk pipe line and 2.35km of sub-pipeline constructed in 2013, 37km of well gas gathering pipeline at the end of 2013
l 0.5km of power line constructed in 2013, 68km of power line at the end of 2013
FINANCIAL SUMMARY
l Revenue of US$3.7m, a 29% decrease over same period last year of US$5.2m
l Total assets decreased by US$0.6m to US$42.7m, a decrease of 1.3% year on year
l Cash and bank deposits as at 31 December 2013 of US$3.5m
l Loss for the year of US$1.9m, compared to a loss of US$1.4m in 2012
CORPORATE HIGHLIGHTS
-- Addition of 30 new customers during 2013, a 39% increase over 2012 -- A total of 107 customers in China -- No lost time due to injury or accident in 2013
Randeep S. Grewal, Chairman of Greka Engineering, commented:
"2013 was the year of independence for Greka Engineering & Technology Ltd., becoming an independent and listed Company following the successful demerging from Green Dragon Gas Ltd. via a dividend in specie on 30 September 2013. Since the demerger, the Company has focused on establishing itself as an independent operator and on technology integration, resource optimization and productivity enhancements. The focus has been to enhance the human resources catered to win more market share by providing advanced infrastructure services, EPCM (engineering, procurement, construction and management services), SCADA, gas station refuelling equipment and technology to the customers within the unconventional gas sector in China. We look forward to capitalizing on this unique niche in the years to come."
Contacts:
Greka Engineering Betty Cheung, Director Corporate Affairs +852 3710 0088 Smith & Williamson Nominated Adviser Dr Azhic Basirov / David Jones / Ben Jeynes +44 20 7131 4000 RFC Ambrian Broker Charlie Cryer +44 20 3440 6800 WH Ireland Broker Tim Feather +44 113 394 6600 Walbrook + 44 20 7933 8780 Media & Investor Relations get@walbrookpr.com Paul Cornelius / Guy McDougall
About Greka Engineering & Technology
Greka Engineering & Technology Ltd., (AIM; GEL) was demerged from Green Dragon Gas Ltd. (AIM; GDG) via a dividend in specie and was admitted to trading on AIM in September 2013.
Greka Engineering offers turnkey solutions to over 100 upstream, midstream and downstream gas suppliers. The Company's technologies include Compressed Natural Gas/Liquefied Natural Gas (CNG/LNG) compressor equipment, CNG retail dispenser equipment and CBM wellhead extraction technologies. The Company also supplies proprietary Integrated Circuit Card Point of Sale (ICC POS) and Supervisory Control and Data Acquisition (SCADA) software and hardware solutions for the remote management of transmission systems, power facilities, vehicle management and retail services.
In addition, the Company invests in, operates and maintains wholly owned assets for its customers in return for service contracts based on the volume management.
The Company has historically completed several Engineering, Procurement, Construction and Management (EPCM) contracts including the design, construction and management of gas gathering systems, a gas pipeline in Shanxi Province to the China West-East pipeline, the installation and commissioning of a 10MW gas-fired power facility in the Shanxi province and the construction of CNG retail stations.
Chairman's Statement
It is my pleasure to report these first year results for Greka Engineering.
2013 was the year of independence for Greka Engineering & Technology Ltd., becoming an independent and listed Company following the successful demerging from Green Dragon Gas Ltd. via a dividend in specie on 30 September 2013. Since the demerger, the Company has focused on establishing itself as an independent operator and on technology integration, resource optimization and productivity enhancements. The focus has been to enhance the human resources catered to win more market share by providing advanced infrastructureservices, EPCM (engineering, procurement, construction and management services), SCADA, gas station refuelling equipment and technology to the customers within the unconventional gas sector in China.
Substantial high quality infrastructure assets including coal bed methane field compressors, pipeline gathering systems and an Integrated Production Facility (IPF) form the core assets of the Group and provide a reliable source of revenue on a steady basis. Quite similar to a toll road, Greka Engineering's unique business model provides it with a steady toll from Green Dragon Gas as its infrastructure is used which includes a fee for gas compression, gas transport and power utilization. The higher the utilization the higher the fee with very little incremental costs and certainly no incremental capital cost. During 2013, utilization rates were under 20% providing for significant upside which we expect will be achieved in 2014 and the years to follow.
The continued technology development resulted in us successfully installing boosters and Variable Frequency Devices at wellhead connections within the pipeline infrastructure which greatly increased the wellhead gas production. While such enhancement provides our client greater gas production, we directly benefit from earning a higher gas processing fee due to increased gas volumes. A true win-win partnership.
Our infrastructure team built an additional 0.4km trunk line and 2.35km branch line to connect 11 new wells which raised the gas processed by 84% YOY. Additionally, the Company has begun to generate incremental power to sell to unaffiliated users. Our 10MW powerplant has a utilization rate of 20% and thus we see a significant upside in third party sales which recently resulted in our first such client.
In regard to our equipment manufacturing and sales, the Company sold 101 dispensers, 11 cylinders, 24 un-loading cylinders and three 75KW well-head compressors, 2 SCADA systems for drill rigs and 1 IC card management system. The sales were in line with our expectations and to customers that are well known to us. At year end, we had a total of 107 customers.
The Year of the Snake (2013) gave us the independence to grow a business independent of Green Dragon, the Year of the Horse (2014) is providing us the opportunity to explore and acknowledge the abundance of customers that each need our purpose built leading edge technologies. The maturity of the upstream coal bed methane market is converging into the demands for our infrastructure aptitude, pressure management technologies, gas disbursement efficiencies and SCADA catered to this niche. We look forward to capitalizing on this unique niche in the years to come.
I look forward to keeping you updated on the development of Greka Engineering's market expansion and the enthusiasm with which the team of almost 100 employees is committed to capturing this unique opportunity.
Randeep S. Grewal
Chairman
10 June 2014
Consolidated Statement of Comprehensive Income
Hot Features
Premium
Year Ended Year Ended
31 December 31 December
2013 2012
Note US$'000 US$'000
Revenue 2 3,701 5,204
Cost of sales (3,349) (4,009)
------------------------------------------ ------- ---------------------- --------------------
Gross profit 352 1,195
Selling and distribution expenses (224) (181)
Administrative expenses (1,975) (2,328)
Other operating loss (24) (16)
------------------------------------------ ------- ---------------------- --------------------
Total administrative expenses (2,223) (2,525)
Loss from operations 3 (1,871) (1,330)
Finance income 4 1 8
Finance costs 4 (3) -
------------------------------------------ ------- ---------------------- --------------------
Loss before income tax (1,873) (1,322)
Income tax 6 71 18
------------------------------------------ ------- ---------------------- --------------------
Loss for the year from continuing
operations (1,802) (1,304)
Loss from discontinuing operations,
net of tax 7 (133) (81)
------------------------------------------ ------- ---------------------- --------------------
Loss for the year (1,935) (1,385)
Other comprehensive income:
Items that may be reclassified
subsequently to profit or loss
Exchange differences on translating
of foreign operations 606 25
------------------------------------------ ------- ---------------------- --------------------
Total comprehensive expense for
the year (1,329) (1,360)
------------------------------------------ ------- ---------------------- --------------------
Loss attributable to:
- Owners of the Company (1,935) (1,385)
------------------------------------------ ------- ---------------------- --------------------
Total comprehensive expense attributable
to:
- Owners of the Company (1,329) (1,360)
------------------------------------------ ------- ---------------------- --------------------
Basic and diluted loss per share
attributable to owners of the
Company arising from:
- Continuing operations (cents) 5 (0.44) (0.32)
- Discontinuing operations (cents) 5 (0.03) (0.02)
Total 5 (0.47) (0.34)
------------------------------------------ ------- ---------------------- --------------------
Consolidated Statement of Financial Position
As at 31 December As at 31 December
2013 2012
Note US$'000 US$'000
Assets
Non-current assets
Property, plant and equipment 25,407 24,503
Intangible assets 2,399 2,890
27,806 27,393
------------------------------------- ----- ------------------- ------------------------------------
Current assets
Inventories 2,009 2,123
Trade and other receivables 7,623 8,470
Cash and cash equivalents 3,494 3,882
------------------------------------- ----- ------------------- ------------------------------------
13,126 14,475
Assets held for sale 7 1,753 1,384
------------------------------------- ----- ------------------- ------------------------------------
Total assets 42,685 43,252
------------------------------------- ----- ------------------- ------------------------------------
Liabilities
Current liabilities
Trade and other payables 5,915 41,663
Loans and borrowings 8 4,656 3,945
Current tax liabilities 13 43
------------------------------------- ----- ------------------- ------------------------------------
10,584 45,651
------------------------------------- ----- ------------------- ------------------------------------
Non current liabilities
Deferred tax liabilities 599 723
------------------------------------- ----- ------------------- ------------------------------------
599 723
Total liabilities 11,183 46,374
------------------------------------- ----- ------------------- ------------------------------------
Total net assets /(liabilities) 31,502 (3,122)
------------------------------------- ----- ------------------- ------------------------------------
Capital and reserves
Share capital 4 -
Share premium account 35,949 -
Foreign exchange reserve 635 29
Retained deficit (5,086) (3,151)
------------------------------------- ----- ------------------- ------------------------------------
Total equity/(deficit) attributable
to owners of the Company 31,502 (3,122)
Consolidated Statement of Changes in Equity
Foreign
Share Share exchange
capital premium reserve Retained deficit Total
US$'000 US$'000 US$'000 US$'000 US$'000
At 1 January 2012 - - 4 (1,766) (1,762)
-------------------------------------- --------------- --------------- --------------- ----------------- --------
Loss for the year - - - (1,385) (1,385)
Other comprehensive income:
Items that may be reclassified
subsequently to profit or
loss:
- Exchange difference on
translation of foreign operations - - 25 - 25
-------------------------------------- --------------- --------------- --------------- ----------------- --------
Total comprehensive income/(expense)
for the year 25 (1,385) (1,360)
-------------------------------------- --------------- --------------- --------------- ----------------- --------
At 31 December 2012 - - 29 (3,151) (3,122)
Loss for the year - - - (1,935) (1,935)
Other comprehensive income:
Items that may be reclassified
subsequently to profit or
loss:
- Exchange difference on
translation of foreign operations - - 606 - 606
-------------------------------------- --------------- --------------- --------------- ----------------- --------
Total comprehensive income/(expense)
for the year - - 606 (1,935) (1,329)
New issue of ordinary shares 4 - - - 4
Capital contribution
- waiver of amounts owed
to Green Dragon Gas Ltd. - 35,949 - - 35,949
-------------------------------------- --------------- --------------- --------------- ----------------- --------
At 31 December 2013 4 35,949 635 (5,086) 31,502
-------------------------------------- --------------- --------------- --------------- ----------------- --------
The following describes the nature and purpose of each reserve within owners' equity.
-- Share capital: Amount subscribed for share capital at nominal value.
-- Share premium: Amount subscribed for share capital in excess of nominal value, including capital contributions
-- Foreign exchange reserve: Foreign exchange differences arising on translating the results, assets and liabilities of foreign operations into the reporting currency.
-- Retained deficit: Cumulative net gains and losses recognized in profit or loss.
Consolidated Statement of Cash Flows
Year ended Year ended
31 December 31 December
2013 2012
Note US$'000 US$'000
------------------------------------------- ------ ------------- --------------------------
Operating activities
Loss before income tax (1,873) (1,322)
Loss before tax from discontinuing
operations (133) (81)
--------------------------------------------------- ------------- --------------------------
(2,006) (1,403)
Adjustments for:
Depreciation 1,120 923
Amortisation of other intangible
assets 494 495
Loss on disposal of property, plant
and equipment - 70
Finance income (1) (8)
Finance costs 3 -
------------------------------------------- ------ ------------- --------------------------
Operating cash flows before changes
in working capital (390) 77
Movement in inventories 114 (736)
Movement in trade and other receivables 847 (1,745)
Movement in trade and other payables 260 18,449
--------------------------------------------------- ------------- --------------------------
Cash generated from operations after
working capital changes 831 16,045
Income tax payment (83) (72)
--------------------------------------------------- ------------- --------------------------
Net cash generated from operating
activities 748 15,973
--------------------------------------------------- ------------- --------------------------
Investing activities
Payments for purchase of property,
plant and equipment (1,827) (18,349)
Loan advanced - (4000)
--------------------------------------------------- ------------- --------------------------
Interest received 1 8
--------------------------------------------------- ------------- --------------------------
Net cash used in investing activities (1,826) (22,341)
--------------------------------------------------- ------------- --------------------------
Financing activities
Proceeds of short term loan 656 3,945
-
Finance costs paid (3)
Net cash from financing activities 653 3,945
--------------------------------------------------- ------------- --------------------------
Net decrease in cash and cash equivalents (425) (2,423)
Cash and cash equivalents at the
beginning of the year 3,882 6,348
--------------------------------------------------- ------------- --------------------------
3,457 3,925
Effect of foreign exchange rate
changes 37 (43)
--------------------------------------------------- ------------- --------------------------
Cash and cash equivalents at end
of year 3,494 3,882
--------------------------------------------------- ------------- --------------------------
Abridged notes to the financial information for the year ended 31 December 2013
1. PRINCIPAL ACCOUNTING POLICIES
Basis of preparation
The financial statements have been prepared in accordance with IFRSs as adopted by the European Union, that are effective for accounting periods beginning on or after 1 January 2013. The principal accounting policies adopted in the preparation of the financial statements are set out in the Group's full annual report and accounts for the year ended 31 December 2013.
2. REVENUE AND SEGMENTINFORMATION
The Group determines its operating segments based on the reports reviewed by the chief operating decision-makers ("CODMs") that are used to make strategic decisions.
The Group reports its operations as two reportable segments: gas equipment sales and the provision of contract infrastructure services in the People's Republic of China (the "PRC"). The division of the engineering and technology operations into two reportable segments is reflective of how the CODMs manage the business.
The accounting policies of the reportable segments are the same as those described in the summary of principal accounting policies (see Note 1). We evaluate the performance of our operating segments based on revenues from external customers and segmental profits.
Year Ended 31 December 2013
Gas Consolidated
equipment Infrastructure from continuing
sales services Intercompany operations
--------------------- ------------------ --------------- ------------- -----------------
US$'000 US$'000 US$'000 US$'000
Revenue 2,423 1,400 (122) 3,701
Cost of sales (1,818) (1,649) 118 (3,349)
Gross profit/(loss) 605 (249) (4) 352
As at 31 December 2013
Transportation
Services
Gas equipment Infrastructure (Discontinued
sales services Operations) Intercompany Consolidated
US$'000 US$'000 US$'000 US$'000 US$'000
--------------------- -------------- --------------- --------------- ------------- -------------
Segment assets 7,702 33,685 1,753 (455) 42,685
Segment liabilities 10,033 37,471 - (36,321) 11,183
Year Ended 31 December 2012
Consolidated
Gas equipment Infrastructure from continuing
sales services Intercompany operations
US$'000 US$'000 US$'000 US$'000
--------- -------------- --------------- ------------- -----------------
Revenue 2,605 2,707 (108) 5,204
As at 31 December 2012
Transportation
Services
Gas equipment Infrastructure (Discontinued
sales services Operations) Intercompany Consolidated
US$'000 US$'000 US$'000 US$'000 US$'000
--------------------- -------------- --------------- --------------- ------------- -------------
Segment assets 11,146 50,713 1,384 (19,991) 43,252
Segment liabilities 16,953 68,919 - (39,498) 46,374
Gas equipment sales represent the net invoiced value of gasequipment sales provided to 63 (2012:56) customers for the year. Infrastructure services represent sales to wholly owned subsidiaries of the Green Dragon Gas group and the Greka Drilling Limited group.
3. LOSSFROM OPERATIONS
Loss from continuing operations is stated after charging:
2013 2012
US$'000 US$'000
Auditor's remuneration 58 -
Staff costs 1,486 1,526
Depreciation of property, plant
and equipment 1,120 923
Amortisation of intangible assets 494 495
Operating lease expense (property) 150 605
Loss on disposal of property, plant
and equipment - 71
Foreign exchange losses - 7
------------------------------------- ---------------------- ---------
4. FINANCE INCOME / EXPENSES
2013 2012
US$'000 US$'000
Bank interest income 1 8
----------------------- --------------------- ---------------------
Bank interest expense 3 -
----------------------- ===================== =====================
5. LOSSPER SHARE
The calculation of the basic and diluted earnings per share attributable to the owners of the Company is based on the following data:
2013 2012
Numerators US$'000 US$'000
Loss for the year
-Continuing operations (1,802) (1,304)
-Discontinuing operations (133) (81)
------------------------------------ ----------------------- -----------------------
Loss for the purpose of basic and
diluted loss per share (1,935) (1,385)
------------------------------------ ----------------------- -----------------------
Denominators
Number of shares used in basic and
diluted loss calculations 409,622,133 409,622,133
Basic and diluted loss per share
(cents)
- Continuing operations (0.44) (0.32)
- Discontinuing operations (0.03) (0.02)
------------------------------------ ----------------------- -----------------------
There were no potentially dilutive instruments in 2013 and 2012. The basic and diluted loss per share are equal as the Company has no dilutive instruments. There have been no shares or potentially dilutive instruments issued between year-end and the date these financial statements were approved. The 2013 year loss per share and 2012 comparative is calculated as if the shares legally issued during 2013 had been in issue since 1 January 2012.
6. TAXATION
2013 2012
US$'000 US$'000
Current tax
Charges for current year 53 106
Deferred tax liabilities
Movement in deferred tax (124) (124)
-------------------------- ----------------------- ---------------------
Income tax credit (71) (18)
-------------------------- ----------------------- ---------------------
The reasons for the difference between the actual tax charge for the years presented and the standard rate of corporation tax in the PRC, as the primary operating environment, applied to the loss for the years presented are as follows:
2013 2012
US$'000 US$'000
Loss before income tax (including
discontinued activities) (2,006) (1,403)
Expected tax credit based on the
standard rate of corporation tax
in the PRC of 25% (2012: 25%) (502) (351)
Effect of:
Tax losses not recognized 431 333
----------------------------------- ---------------------- ---------------------
Income tax (71) (18)
----------------------------------- ---------------------- ---------------------
The Company is incorporated in the Cayman Islands and is not subject to income tax. The primary operating companies are incorporated in the PRC and are subject to 25% tax rates.
7. ASSETS HELD FOR SALE / DISCONTINUING OPERATIONS
The strategy of the Group is to develop its engineering and technology operations. In order to focuson the delivery of this strategy, prior to the demerger from Green Dragon Gas Ltd, during 2012 one of the Company's subsidiaries agreed a proposal to sell its non-core transportationoperations to subsidiaries being retained within the Green Dragon Gas Ltd group following the demerger. Subsequently, it entered a legal agreement with Green Dragon Gas Limited on 1 July 2013 to dispose of motor vehicles and equipment for $1,753,357 of cash consideration in line with the previously agreed proposals. Notwithstanding the period that has elapsed between meeting the requirements for classification as assets held for sale, the Group remains committed to the disposal and expects it completion in due course. The completion of the transaction is subject to obtaining necessary legislative approvals.
The following are the totals for the major classes of assets relating to the Group's transportation operation at the end of the reporting period:
2013 2012
US$'000 US$'000
Motor vehicles 1,733 1,347
Fixtures, fittings and equipment 17 34
Plant and machinery 3 3
----------------------------------- ----------------------------- ---------
1,753 1,384
----------------------------------- ----------------------------- ---------
The increase in assets held for sale refers to additional assets acquired during 2013 included within the disposal group.
The loss on discontinuing operations in the Consolidated Statement of Comprehensive Income can be analysed, as follows:
2013 2012
US$'000 US$'000
Transportation service revenue 589 712
Cost of sales (553) (793)
Administrative expenses (169) -
-------------------------------- ------------------------------- ------------------------------
Loss before and after taxation (133) (81)
-------------------------------- ------------------------------- ------------------------------
The Consolidated Statement of Cash Flows contains the following elements related to discontinuing operations:
2013 2012
US$'000 US$'000
Net cash flows attributable to operating
activities (133) (81)
Net cash flows attributable to investing
activities (482) (20)
Net cash flows attributable to financing - -
activities
------------------------------------------ ----------------------- -----------------------
The discontinued operations and assets held for sale are classified within the transportation services segment in Note 2.
8. LOANS AND BORROWINGS
2013 2012
US$'000 US$'000
Loans and borrowings 4,656 3,945
------------------------ ------------------------ ------------------
On 11 April 2012, GTIG, Greka Integrated Products, Henan Boao Trading Co Limited and Aowei
International (H.K.) Co., Limited (Aowei HK) entered into a loan agreement, pursuant to which
Henan Boao Trading Co Limited made available a loan facility in the amount of the RMB equivalent of US$4,000,000. The facility is fully drawn and is repayable on demand but is matched by a US$4,000,000 receivable.
Included within loans and borrowings is a bank loan of US$656,000 (2012: nil) which is secured by buildings and structures with a book value of US$1,265,000 (2012:US$1,260,000).
9. PUBLICATION OF NON-STATUTORY ACCOUNTS
The financial information for the years ended 31 December 2013 and 31 December 2012 set out in this announcement does not constitute the Group's statutory financial information but is extracted from the Company's audited financial statements for those years. The auditors have reported on the full accounts for both periods and their reports were unqualified and did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their reports.
10. ANNUAL REPORT
The Company's Annual Report and copies of this announcement will be available in due course on the Company's website at www.grekaengineering.com and from the office of the Company's nominated adviser, Smith & Williamson Corporate Finance Limited at 25 Moorgate, London EC2R 6AY, United Kingdom.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UKSBRSVANRAR
1 Year Greka Engineer. Chart |
1 Month Greka Engineer. Chart |
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
