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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Afren | LSE:AFR | London | Ordinary Share | GB00B0672758 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 1.785 | 0.00 | 00:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMAFR
RNS Number : 9217L
Afren PLC
30 April 2015
Afren plc (AFR LN)
Annual Financial Report
London 30 April 2015 Following the release of Afren plc's ("Afren" or the "Company") full year results for the year ended 31 December 2014 (the "Results"), the Company announces it has published its Annual Report and Accounts for 2014 (the "Annual Report and Accounts").
The Company's 2015 Annual General Meeting will be held at the offices of White & Case LLP, 5 Old Broad Street, London, EC2N 1DW on Thursday 25 June 2015 at 11.00 am. Copies of the Annual Report and Accounts are available to view on the Company's website at www.afren.com.
In accordance with Disclosure and Transparency Rule 6.3.5(2)(b) additional information is set out in the appendices to this announcement. The Results included a set of condensed financial statements and a fair review of the development and performance of the business and the position of the Company and the Group.
Pursuant to Listing Rule 9.6.1, a copy of the Annual Report and Accounts will shortly be available for inspection on the National Storage Mechanism which can be accessed at http://www.morningstar.co.uk/uk/NSM.
For further information contact:
Afren plc Tel: +44 20 7864 3700
Simon Hawkins, Group Head of Investor Relations
Bell Pottinger (public relations adviser to Afren plc) Tel: +44 20 7772 2500
Gavin Davis
Henry Lerwill
Appendix A: Directors' Responsibility Statement
The following Directors' Responsibility Statement is extracted from page 104 of the Annual Report and Accounts.
Directors' Responsibility Statement
I confirm to the best of my knowledge:
1. The financial statements, prepared in accordance with International Financial Reporting Standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole;
2. The strategic report, which is incorporated into the Directors' Report, includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face; and
3. The annual report and financial statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the Company's performance, business model and strategy.
By order of the Board
Toby Hayward
Interim Chief Executive
30 April 2015
Appendix B: Principal Risks and Uncertainties
The following description of principal risks and uncertainties is extracted from pages 26 to 29 of the Annual Report and Accounts.
Principal Risks and Uncertainties
We have identified the following principal risks and uncertainties in relation to the Group's financial and operational performance in 2014.
Key risk Description and impact How we manage it ------------------------ -------------------------------------------- ------------------------------------- Operational risk ---------------------------------------------------------------------- ------------------------------------- Field delivery risk Field delivery risk applies to all All operations are subject phases of the E&P cycle from seismic to risk reviews, to identify acquisition through to production as early as possible any operations. At each phase the mitigating potential risks to success. measures will be different. However, failure to control risks will lead Our engineers analyse results to project delays, cost over-runs, from appraisal and development high production costs, early field wells, and determine the decommissioning and, ultimately, appropriate course of action lower than expected reserves. for the drilling programme and facility design. In 2014, Afren encountered operational delays which impacted the timing We closely monitor all projects of production ramp-up at both Ebok, to ensure they go to plan with the installation of the Ebok and so we can take action CFB extension facilities, and OML to maintain progress. 26, due to the declaration of Force Majeure at the Forcados Terminal We monitor project finances in Q1 2014. In January 2015, Afren alongside their budget to announced its intention to review minimise over-runs. its strategic options in respect of the Barda Rash PSC, following We monitor production operations disappointing operational performance closely to ensure we minimise at the field and an updated reserves unplanned downtime and control assessment from RPS Energy. operating costs tightly. The maintenance of good working We compare actual production relations with our Partners is also regularly to forecast production. critical to field delivery. Without this we face potential delays to We hold regular technical projects, issues with funding and and operating meetings with disagreement on how best to develop our Partners to keep them our portfolio. fully appraised of developments and to get their input and agreement on key issues. ------------------------ -------------------------------------------- ------------------------------------- Exploration Exploration assets are subject failure Exploration activities can be capital to a rigorous peer review intensive and may involve a high process. degree of risk. Sustained exploration failure will affect the Group's growth We evaluate exploration potential. risk for each prospect by looking in detail at how to de-risk the key elements of the subsurface data, source rock, reservoir, trapping and seal mechanisms. We subsequently rank prospects and approve budgets. ------------------------ -------------------------------------------- ------------------------------------- Environmental or safety There is a continuing focus on preventing We have implemented comprehensive incidents major pollution or loss of life due EHSS management systems based to failure of systems, equipment on best industry practice, or human action. at both corporate and country level, with an annual independent audit programme to ensure effective implementation. Afren oversees its contractors closely to ensure they accept and meet our EHSS standards. Specific EHSS teams in each area of operation. Contingency plans in place and tested regularly. ------------------------ -------------------------------------------- ------------------------------------- Unfulfilled work or PSC obligations Loss of production interest or exploration The operations, finance licence due to incomplete fulfilment and legal teams jointly monitor of work or PSC obligations. compliance with licence obligations. We maintain good, open working relationships with local governments in the countries of operation. ------------------------ -------------------------------------------- ------------------------------------- External risk ------------------------ -------------------------------------------- ------------------------------------- Geo-political The countries in which Afren operates Through close liaison in risk continue to face political, socio--economic each relevant country, we uncertainties. monitor the situation from the perspective 2014 saw particular problems with of our safety and security. Boko Haram in northern Nigeria and Contingency plans in place the rise of Islamic State in Iraq. and tested regularly. Whilst these issues received wide international media coverage our operations Through our contacts in were not directly affected and we governments and industry, continue to monitor the situation as well as closely. though specialist advisors, we continuously monitor and 2015 will see elections in Nigeria evaluate and we will be conducting a rigorous the potential impacts on business risk assessment of the potential our business arising from impacts that may arise. changes in the geo-political environment. ------------------------ -------------------------------------------- ------------------------------------- Security Afren continues to operate in regions Security teams in each area incidents where kidnapping, piracy and criminal of operation. attacks occur. Rigorous security management programme. Security risk assessments for each asset and operation. ------------------------ -------------------------------------------- ------------------------------------- Oil price Oil prices can fluctuate significantly. volatility In Q4 2014, we liquidated In 2014, the Group hedged approximately our hedge position, which 35% of production through the use benefited from the lower of financial instruments. oil prices in the second half of the year, to generate cash. ------------------------ -------------------------------------------- ------------------------------------- Host community Our operations both on and offshore Afren has a tried and tested action have the potential for interruption system for managing community by our host communities if relations affairs, which is applied are not well established. to all operations. Community affairs teams are We have continued our close relationships in place where required. with our host communities and have Contingency plans in place seen no community action against our and tested regularly. operations in 2014. ------------------------ -------------------------------------------- ------------------------------------- Strategic risk ------------------------ -------------------------------------------- ------------------------------------- Bribery and corruption As an international oil and gas operator, We conducted a comprehensive bribery and corruption represent an anti-bribery and corruption ongoing risk to our business. risk assessment during 2014. This work was integrated into the review and update of the Code of Business Conduct that was completed towards the end of the year. The new Code was approved by the Board in December and all staff and contractors underwent on-line training and testing on the requirements of the Code. We have established an independent whistle-blowing hotline to enable concerns about poor practice to be voiced without fear of reprisal. We review and update specific Anti-Bribery and Corruption policies and procedures annually and quarterly respectively, to meet the stringent requirements of the UK Bribery Act as well as the UK Ministry of Justice Guidance. We provide new starters and existing employees with training on anti--bribery and corruption as part of the induction process and as an ongoing programme. We provide quarterly updates to the Audit and Risk Committee regarding anti-bribery and corruption, including any whistle-blowing reports and their subsequent resolution. ------------------------ -------------------------------------------- ------------------------------------- Management Management of growth is a reducing All acquisitions are subject of growth risk following the fall in oil price to thorough due diligence, and the slowing of Company expansion. to create an effective integration plan. We design remuneration policies to incentivise, motivate and retain key employees as well as to attract new personnel as required. ------------------------ -------------------------------------------- ------------------------------------- Loss of key employees Loss of knowledge and skills to the We consider succession planning Group, in particular in countries Group-wide, taking into account of operation. the development of the executive and senior management. We design remuneration policies to incentivise, motivate and retain key employees including Directors. We set salaries and reward of senior executives, including Directors, at competitive levels using third party benchmarks. ------------------------ -------------------------------------------- ------------------------------------- Climate Greenhouse gas (GHG) emissions contribute We recognise the potential change to climate change. Important stakeholders impact that energy use and expect Afren to have a strategy and GHG have on climate change meaningful reduction targets (flaring and to seek to reduce emissions represents over 50% of Afren's current associated with flaring: GHG emissions). We monitor energy use and Failure to address this issue risks ensure energy efficiency reputational damage and issues with in all operations. the Company's shareholders. We monitor and report other This also represents an opportunity atmospheric emissions. for Afren to demonstrate a forward looking approach in comparison to We have developed and disclosed its peers. a comprehensive climate change strategy and will identify engineering solutions to reduce flaring and set flaring reduction targets for 2015. ------------------------ -------------------------------------------- ------------------------------------- Financial risk ------------------------ -------------------------------------------- ------------------------------------- Taxation There is a risk that changes in tax Our financial and legal teams and other regimes and other legislation may monitor current legislation legislation changes affect our financial results. As detailed and proposed changes and in the financial statements, there incorporate these into our are uncertainties surrounding the working practices. taxation treatment of marginal fields (see note 4.8: Contingent liabilities) Maintenance of good, open and Pioneer status (see note 5.16: working relationships with Post balance sheet events - Company local authorities in the and Group) in Nigeria. countries of operation. Involvement with industry groups in the country of operation to discuss sector issues. ------------------------ -------------------------------------------- ------------------------------------- Treasury management The availability of financing to maintain The Group is currently in the ongoing operations of the business the process of financial is key. restructuring in order to provide liquidity and improved financial stability for the Group's ongoing operations. ------------------------ -------------------------------------------- -------------------------------------
Appendix C: Related Party Transactions
Details of related party transactions for the year ended 31 December 2014 were disclosed in the results announcement issued on 30 April 2015.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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