We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Petroneft Resources Plc | LSE:PTR | London | Ordinary Share | IE00B0Q82B24 | ORD EUR0.01 (CDI) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.085 | 0.00 | 00:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMPTR
RNS Number : 0036L
Petroneft Resources PLC
28 September 2016
28 September 2016
2016 Interim Results
PetroNeft (AIM: PTR) an oil & gas exploration and production company operating in the Tomsk Oblast, Russian Federation, and 50% owner and operator of Licences 61 and 67 is pleased to report its results for the 6 months ended 30 June 2016.
Highlights
-- Current gross production from Licence 61 is about 3,200 bopd. -- Represents a 39% increase in production in 2016. -- New wells drilled at South Arbuzovskoye during period drove production growth.
David Golder, Chairman of PetroNeft Resources plc, commented:
"We have had a busy year so far, with good success in growing production by almost 40% and in enhancing our understanding of Licence 61.
Given that market conditions remain challenging with little sign of improvement in oil prices in the near term, our focus continues to be on growing production, managing costs and positioning the Company for any improvement in market conditions, while we are also investigating opportunities to benefit from current conditions by growing the company through acquisitions or business combinations focussed on producing assets in Russia. We look forward to updating shareholders of our results over the coming year."
For further information, contact:
Dennis Francis, CEO, PetroNeft Resources plc +1 713 988 2500 --------------------------------------------------------------------- ----------------- Paul Dowling, CFO, PetroNeft Resources plc +353 1 647 0280 --------------------------------------------------------------------- ----------------- John Frain/Brian Garrahy, Davy (NOMAD and Joint Broker) +353 1 679 6363 --------------------------------------------------------------------- ----------------- Henry Fitzgerald-O'Connor, Canaccord Genuity Limited (Joint Broker) +44 207 523 8000 --------------------------------------------------------------------- ----------------- Martin Jackson/Shabnam Bashir, Citigate Dewe Rogerson +44 207 638 9571 --------------------------------------------------------------------- ----------------- Joe Heron / Douglas Keatinge, Murray Consultants +353 1 498 0300 --------------------------------------------------------------------- -----------------
The information contained in this announcement has been reviewed and verified by Mr. Dennis Francis, Director and Chief Executive Officer of PetroNeft, for the purposes of the Guidance Note for Mining and Oil & Gas Companies issued by the London Stock Exchange in June 2009. Mr. Francis holds a B.S. Degree in Geophysical Engineering and a M.S. Degree in Geology from the Colorado School of Mines. He has also graduated from the Harvard University Program for Management Development. He is a member of the American Association of Petroleum Geologists and the Society of Exploration Geophysicists. He has over 40 years' experience in oil and gas exploration and development.
Chairman's Statement
Dear Shareholder,
I am pleased to report on the activities of the Group for the six months to 30 June 2016 and provide an update on recent progress. 2016 has been a busy year with a significant work programme undertaken at Licence 61, together with our 50% partner Oil India. The 2016 campaign delivered considerable production growth from new wells at South Arbuzovskoye but some disappointment with the result of a delineation well at the Sibkrayevskoye oil field.
Production and Sales
Gross production at Licence 61 in the six months to 30 June 2016 averaged 2,366 bopd, a 36% increase compared to the same period in 2015 (1,744 bopd). We sold 421,714 (gross) barrels of oil in the six months to 30 June 2016 (H1 2015: 329,733 bbls) and achieved an average Russian Domestic oil price of $20.56 (H1 2015: $29.87). The fall in price is reflective of the continuing challenges being faced across the oil and gas industry.
Licence 61 Gross H1 2016 Q2-2016 Q1-2016 H1 2015 Production ------------------ -------- -------- -------- -------- Total gross production 430,693 223,877 206,816 315,664 ------------------ -------- -------- -------- -------- Gross bopd 2,366 2,460 2,272 1,744 ------------------ -------- -------- -------- -------- PetroNeft 50% share bopd 1,183 1,230 1,136 872 ------------------ -------- -------- -------- --------
Gross production at Licence 61 has grown by 39% in the year to date and is currently approximately 3,200 bopd. This growth came from the new wells at South Arbuzovskoye which came online in June and July 2016. Production is shown quarterly above and we intend to publish quarterly production statements from October 2016 onwards. The actual production for Q3-2016 will be announced in October 2016.
South Arbuzovskoye
The main drilling programme in 2016 was focussed on the southern lobe of Arbuzovskoye. In 2015 we had drilled the A-103 well from Pad 1 in the northern end and acquired some additional 2D seismic on the southern end. Both the well and the seismic gave us confidence in the potential of the southern lobe. The lessons learned from the horizontal drilling at Tungolskoye in 2015 also proved valuable in setting out the drilling programme in South Arbuzovskoye.
We drilled two vertical and two horizontal wells. Our pre-drill estimates were to achieve initial production of 125 bopd from the vertical wells and 600 bopd from the horizontal wells. The results far exceeded these estimates with the vertical wells (A213 & A-216) coming in at over 350 bopd and 175 bopd respectively and the horizontal wells (A-214 & A-215) coming in at over 800 bopd and 650 bopd respectively. With the exception of the A-216 well, the new wells at South Arbuzovskoye continue to perform ahead of expectations. The water cut at A-216 has risen higher than expected and we are examining ways to solve this issue.
Sibkrayevskoye
In 2015 we drilled the S-373 delineation well and carried out a major 2D seismic programme across the northern portion of Licence 61 including Sibkrayevskoye. Between late January and April 2016 the S-373 well was put on production and averaged 200 bopd during the period. This well, along with the previous wells, S-372 and S-370, forms the basis for the initial development of Sibkrayevskoye at Pad 1which is planned for 2017. We are currently arranging the necessary studies, permits and approvals to sanction Pad 1 development of Sibkrayevskoye later this year.
In 2016 we sought to ascertain the full potential of Sibkrayevskoye through the drilling of a 10 km step out well, S-374. The well was drilled in July and August 2016 but unfortunately did not encounter commercial oil and was plugged and abandoned. The result, while disappointing, should not affect the current 2P reserve significantly or impact our decision regarding the development of Pad 1 at Sibkrayevskoye which is 10 km to the north.
Review of PetroNeft loss for the period
The loss for the period was US$2.3m (2014: US$1.4m). The loss includes PetroNeft's share of the losses on the joint ventures relating to Licences 61 and 67 of US$2.4m and US$0.2m respectively (H1 2015: US$1.8m and US$0.2m). The loss relating to the Licence 61 joint venture is discussed in more detail below. Finance revenue of US$1.6m (H1 2015: US$1.5m) relates primarily to interest receivable on loans to the joint ventures.
PetroNeft Key Financial Metrics Unaudited Audited ======================== ------------- 6 months 6 months Year ended ended 30 ended 30 31 December June 2016 June 2015 2015 US$ US$ US$ Continuing operations Revenue 1,362 1,220 19,165 Cost of sales (1,235) (1,206) (15,233) =========== =========== Gross profit 127 14 3,932 Administrative expenses (1,073) (572) (3,678) Exchange gain/(loss) on intra-Group loans (23) 17 (2,402) Operating loss (923) (541) (2,148) Share of joint venture's net loss - WorldAce Investments Limited (2,408) (1,829) (304) Share of joint venture's net loss - Russian BD Holdings B.V. (173) (157) (294) Finance revenue 1,596 1,504 1,551 Loss for the period for continuing operations before taxation (1,908) (1,023) (8,376) Income tax expense (410) (393) (408) =========== Loss for the period for continuing operations before taxation (2,318) (1,416) (8,784) =========== =========== =============
Licence 61 joint venture - WorldAce Group
The metrics below are an extraction from the financial statements of the WorldAce Group which demonstrate the performance of Licence 61:
PetroNeft's PetroNeft's PetroNeft's 50% share 50% share 50% share 6 months 6 months year ended ended 30 ended 30 31 December June 2016 June 2015 2015 US$'000 US$'000 US$'000 Continuing operations Revenue 4,339 4,925 10,300 Cost of sales (4,259) (4,767) (10,436) ============ ============ Gross profit 80 158 (136) Administrative expenses (917) (831) (1,519) Impairment of oil and gas properties - - (4,550) ============ ============ Operating loss (837) (673) (6,205) Finance revenue 4 6 12 Finance costs (1,575) (1,162) (2,572) ============ ============ Loss for the period for continuing operations before taxation (2,408) (1,829) (8,765) Income tax credit - - - ============ ============ Loss for the period for continuing operations before taxation (2,408) (1,829) (8,765) ============ ============ ============= WorldAce Analysis 50% of WorldAce 6 months 6 months 12 months ended 30 ended 30 ended 31 June 2016 June 2015 December 2015 US$'000 US$'000 Revenue Oil sales 4,335 4,908 10,276 Other sales 4 16 24 =========== =========== Total revenue 4,339 4,924 10,300 Cost of Sales Mineral Extraction Tax 2,047 2,495 4,922 Pipeline tariff 820 635 1,493 Staff costs 402 458 840 Depreciation and amortisation 600 517 1,472 Other cost of sales 390 662 1,708 =========== =========== Total cost of sales 4,259 4,767 10,435 =========== =========== ==========
The detailed Income Statement and Balance Sheet of WorldAce Investments Limited is disclosed at note 7 to these condensed financial statements. Very low oil prices in late 2015 and the first quarter of 2016 have significantly reduced the margin. With the higher production and improved pricing being achieved in the second half of 2016 we should be able to improve the margin as many of our production costs are fixed.
In March 2016 Oil India agreed to provide 100% of the funding required to carry out the agreed work programmes at Licence 61 in 2016 and 2017. This work programme is expected to require gross funding of at least US$35 million, US$10m in 2016 and US$25m in 2017. The funding is to be provided by way of unsecured loans to the joint venture company WorldAce Investments Limited. The loan agreement for the 2016 requirement of US$10m was executed in March 2016 and the funding fully drawn by July 2016. It is expected that the loan agreement for the 2017 requirement will be executed on substantially similar terms in late 2016.
Licence 67
During 2015, we agreed an exploration programme for Licence 67 for the five years to 2020 with the Russian authorities; based on this, the first significant expenditure required will be in 2017 but we expect to be able to defer this expenditure to at least 2018. We view Licence 67 as having considerable long term potential and we are discussing forward plans with our joint venture partner Belgrave Naftogas (Arawak Energy).
Board Changes
As discussed in the Annual Report, in April 2016 Maxim Korobov, Anthony Sacca and David Sturt joined the Board as non-executive Directors. David Sanders, Gerry Fagan and Paul Dowling left the Board, however Mr. Dowling remains as CFO of the Company and is Company Secretary.
Business development
In May 2016 Pavel Tetyakov joined the Company as Vice President of Business Development to help bring a renewed focus on Business Development and we are actively pursuing a number of exciting options in this regard.
Outlook
We have had a busy year so far, with good success in growing production and our longer term development and exploration plans for our portfolio, however market conditions remain challenging and there are few signs of sustained improvement in oil prices in the near term. We are now focussed on commencing the development of our largest field, Sibkrayevskoye in 2017 which, with the expected Oil India loan agreement to be signed, the Company is fully financed for. Our focus continues to be on growing production, managing costs and positioning the Company for any improvement in market conditions, while we are also investigating opportunities to benefit from current conditions by growing the company through acquisitions or business combinations focussed on producing assets in Russia. We look forward to updating shareholders of our results over the remainder of 2016.
David Golder
Non-Executive Chairman
Interim Condensed Consolidated Income Statement
For the 6 months ended 30 June 2016
Unaudited Audited ========================== ------------- 6 months 6 months ended Year ended ended 30 30 June 31 December June 2016 2015 2015 Note US$ US$ US$ Continuing operations Revenue 1,362,158 1,220,323 2,398,314 Cost of sales (1,234,712) (1,205,656) (2,370,949) ============ ============ Gross profit 127,446 14,667 27,365 Administrative expenses (1,073,237) (572,017) (1,379,506) Exchange loss on intra-Group loans 22,522 16,401 (284,449) Operating loss (923,268) (540,949) (1,636,590) Share of joint venture's net loss - WorldAce Investments Limited 7 (2,407,781) (1,828,719) (8,765,055) Share of joint venture's net loss - Russian BD Holdings B.V. 8 (172,677) (157,470) (314,859) Finance revenue 4 1,595,944 1,504,174 3,041,587 Loss for the period for continuing operations before taxation (1,907,782) (1,022,964) (7,674,917) Income tax expense 5 (409,925) (392,701) (799,466) Loss for the period attributable to equity holders of the Parent (2,317,707) (1,415,665) (8,474,383) ============ ============ ============= Loss per share attributable to ordinary equity holders of the Parent Basic and diluted - US dollar cent (0.33) (0.20) (1.20)
Interim Condensed Consolidated Statement of Comprehensive Income
For the 6 months ended 30 June 2016
Unaudited Audited ========================== ------------- 6 months 6 months Year ended ended 30 ended 30 31 December June 2016 June 2015 2015 US$ US$ US$ Loss for the period attributable to equity holders of the Parent (2,246,207) (1,415,665) (8,474,383) Other comprehensive income to be reclassified to profit or loss in subsequent periods: Currency translation adjustments - subsidiaries 61,935 19,683 265,640 Share of joint ventures' other comprehensive income - foreign exchange translation differences 5,467,539 909,754 (12,474,502) Total comprehensive profit/(loss) for the period attributable to equity holders of the Parent 3,211,767 (486,228) (20,683,245) ============ ============ =============
Interim Condensed Consolidated Balance Sheet
As at 30 June 2016
Unaudited Audited ============= ------------- 30 June 31 December 2016 2015 Note US$ US$ Assets Non-current Assets Property, plant and equipment 6 167,922 181,703 Equity-accounted investment in joint ventures - WorldAce Investments Limited 7 - - Equity-accounted investment in joint ventures - Russian BD Holdings B.V. 8 - - Financial assets - loans and receivables 9 47,214,376 42,883,861 47,382,298 43,065,564 ============= ============= Current Assets Inventories 10 29,676 54,302 Trade and other receivables 11 2,314,336 1,842,128 Cash and cash equivalents 12 382,546 1,284,212 2,726,558 3,180,642 ============= ============= Total Assets 50,108,856 46,246,206 ============= ============= Equity and Liabilities Capital and Reserves Called up share capital 9,429,182 9,429,182 Share premium account 140,912,898 140,912,898 Share-based payments reserve 6,796,540 6,796,540 Retained loss (77,092,497) (74,774,790) Currency translation reserve (33,355,674) (38,885,148) Other reserves 336,000 336,000 Equity attributable to equity holders of the Parent 47,026,449 43,814,682 ============= ============= Non-current Liabilities Deferred tax liability 1,693,335 1,286,378 1,693,335 1,286,378 ============= ============= Current Liabilities Trade and other payables 13 1,389,072 1,145,146 1,389,072 1,145,146 ============= ============= Total Liabilities 3,082,407 2,431,524 Total Equity and Liabilities 50,108,856 46,246,206 ============= =============
Interim Condensed Consolidated Statement of Changes in Equity
For the 6 months ended 30 June 2016
Share-based payment Called Share and Currency up share premium other translation Retained capital account reserves reserve loss Total US$ US$ US$ US$ US$ US$ At 1 January 2015 9,429,182 140,912,898 7,099,745 (26,676,286) (66,300,407) 64,465,132 ---------- ------------ ------------ ------------- ------------- ------------- Loss for the year - - - - (8,474,383) (8,474,383) Currency translation adjustments - subsidiaries - - - 265,640 - 265,640 Share of joint ventures' other comprehensive income - foreign exchange translation differences - - - (12,474,502) - (12,474,502) ---------- ------------ ------------ ------------- ------------- ------------- Total comprehensive loss for the year - - - (12,208,862) (8,474,383) (20,683,245) Share-based payment expense - - 32,795 - - 32,795 ------------- At 31 December 2015 9,429,182 140,912,898 7,132,540 (38,885,148) (74,774,790) 43,814,682 ========== ============ ============ ============= ============= ============= At 1 January 2016 9,429,182 140,912,898 7,132,540 (38,885,148) (74,774,790) 43,814,682 ========== ============ ============ ============= ============= ============= Loss for the period - - - - (2,317,707) (2,317,707) Currency translation adjustments - subsidiaries - - - (61,935) - (61,935) Share of joint ventures' other comprehensive income - foreign exchange translation differences - - - 5,467,539 - 5,467,539 ========== ============ ============ ============= ============= ============= Total comprehensive profit for the period - - - 5,529,474 (2,317,707) 3,211,767 At 30 June 2016 9,429,182 140,912,898 7,132,540 (33,355,674) (77,092,497) 47,026,449 ========== ============ ============ ============= ============= =============
Interim Condensed Consolidated Cash Flow Statement
For the 6 months ended 30 June 2016
Unaudited Audited ========================== ------------- 6 months 6 months ended Year ended ended 30 30 June 31 December June 2016 2015 2015 US$ US$ US$ Operating activities Loss before taxation (1,907,782) (1,022,964) (7,674,917) Adjustment to reconcile loss before tax to net cash flows Non-cash Depreciation 36,970 54,575 97,673 Share of loss in joint ventures 2,580,458 1,986,189 9,079,914 Share-based payment expense - 16,246 32,795 Finance revenue 4 (1,595,944) (1,504,174) (3,041,587) Working capital adjustments (Increase)/decrease in trade and other receivables (322,891) 156,081 (548,351) Decrease/(increase) in inventories 24,626 (36,465) (39,122) Increase/(decrease) in trade and other payables 292,234 (458,992) 31,428 Income tax paid (12,771) (9,861) (25,832) Net cash flows used in operating activities (905,100) (819,365) (2,087,999) ============ ------------- Investing activities Purchase of property, plant and equipment - (13,312) (19,059) Interest received 1,480 5,984 10,095 Net cash received from/(used in) investing activities 1,480 (7,328) (8,964) ============ ============ ------------- Net decrease in cash and cash equivalents (903,620) (826,693) (2,096,963) Translation adjustment 1,954 (8,481) (11,594) Cash and cash equivalents at the beginning of the period 1,284,212 3,392,769 3,392,769 Cash and cash equivalents at the end of the period 12 382,546 2,557,595 1,284,212 ============ ============ =============
Notes to the Interim Condensed Consolidated Financial Statements
For the 6 months ended 30 June 2016
1. Corporate Information
The interim condensed consolidated financial statements of the Group for the six months ended 30 June 2016 were authorised for issue in accordance with a resolution of the Directors on 27 September 2016.
PetroNeft Resources plc ('the Company', or together with its subsidiaries, 'the Group') is a Company incorporated in Ireland. The Company is listed on the Alternative Investment Market ('AIM') of the London Stock Exchange and the Enterprise Securities Market ('ESM') of the Irish Stock Exchange. The address of the registered office and the business address in Ireland is 20 Holles Street, Dublin 2. The Company is domiciled in the Republic of Ireland.
The principal activities of the Group are oil and gas exploration, development and production.
2. Accounting Policies 2.1 Basis of Preparation
The interim condensed consolidated financial statements for the six months ended 30 June 2016 have been prepared in accordance with IAS 34 Interim Financial Reporting.
The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements as at 31 December 2015 which are available on the Group's website - www.petroneft.com.
The interim condensed consolidated financial statements are presented in US dollars ("US$").
2.2 Significant Accounting Policies
The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2015.
3. Segment information
At present the Group has one reportable operating segment, which is oil exploration and production through its joint venture undertakings. As a result, there are no further disclosures required in respect of the Group's reporting segment.
The risk and returns of the Group's operations are primarily determined by the nature of the activities that the Group engages in, rather than the geographical location of these operations. This is reflected by the Group's organisational structure and the Group's internal financial reporting systems.
Management monitors and evaluates the operating results for the purpose of making decisions consistently with how it determines operating profit or loss in the consolidated financial statements.
Geographical segments
Although the joint venture undertakings WorldAce Investments Limited and Russian BD Holdings B.V. are domiciled in Cyprus and the Netherlands, the underlying businesses and assets are in Russia. Substantially all of the Group's sales and capital expenditures are in Russia.
Assets are allocated based on where the assets are located:
Unaudited Audited ============================== 30 June 31 December 2016 2015 Non-current assets US$ US$ Russia 47,379,517 43,062,084 Ireland 2,781 3,480 47,382,298 43,065,564 ============================== ========================== 4. Finance revenue Unaudited Audited ======================== 6 months 6 months Year ended ended 30 ended 30 31 December June 2016 June 2015 2015 US$ US$ US$ Bank interest receivable 1,480 5,984 10,095 Interest receivable on loans to Joint Ventures 1,594,464 1,498,190 3,031,492 1,595,944 1,504,174 3,041,587 =========== =========== ============= 5. Income tax Unaudited Audited ======================== 6 months 6 months Year ended ended 30 ended 30 31 December June 2016 June 2015 2015 US$ US$ US$ Current income tax Current income tax charge 2,968 9,047 24,863 Total current income tax 2,968 9,047 24,863 ------------- Deferred tax Relating to origination and reversal of temporary differences 406,957 383,654 774,603 Total deferred tax 406,957 383,654 774,603 =========== =========== ------------- Income tax expense reported in the Interim Consolidated Income Statement 409,925 392,701 799,466 =========== =========== ============= Property, Plant 6. and Equipment Plant and machinery US$ Cost At 1 January 2015 996,588 Additions 19,059 Translation adjustment (215,247) ---------- At 1 January 2016 800,400 Translation adjustment 104,224 At 30 June 2016 904,624 Depreciation At 1 January 2015 674,786 Charge for the year 97,673 Translation adjustment (153,762) ========== At 1 January 2016 618,697 Charge for the period 36,970 Translation adjustment 81,035 At 30 June 2016 736,702 Net book values At 30 June 2016 167,922 ========== At 31 December 2015 181,703 ========== 7. Equity-accounted Investment in Joint Venture - WorldAce Investments Limited
PetroNeft Resources plc has a 50% interest in WorldAce Investments Limited, a jointly controlled entity which holds 100% of LLC Stimul-T, an entity involved in oil and gas exploration and the registered holder of Licence 61. The interest in this joint venture is accounted for using the equity accounting method. WorldAce Investments Limited is incorporated in Cyprus and carries out its activities, through LLC Stimul-T, in Russia.
Share of net assets US$ At 1 January 2015 10,865,156 Elimination of unrealised profit on intra-Group transactions (29,326) Retained loss (8,765,055) Translation adjustment (11,587,393) Credited against loans receivable from WorldAce Investments Limited (Note 9) 9,516,618 ============= At 1 January 2016 - Elimination of unrealised loss on intra-Group transactions (151,029) Retained loss (2,407,781) Translation adjustment 5,042,837 Reversal of credit to loans receivable from WorldAce Investments Limited (Note 9) (2,484,027) At 30 June 2016 - =============
The balance sheet position of WorldAce Investments Limited shows net liabilities of US$23,500,706 following a loss in the period of US$4,815,562 together with a positive currency translation adjustment of US$10,085,675. PetroNeft's 50% share is included above and results in a negative carrying value of US$7,032,591. Therefore, the share of net assets is reduced to Nil and, in accordance with IAS 28 Investments in Associates and Joint Ventures, the amount of US$7,032,591 is deducted from other assets associated with the joint venture on the Balance Sheet which are the loans receivable from WorldAce Investments (see Note 9).
7. Equity-accounted Investment in Joint Venture - WorldAce Investments Limited (continued)
Additional financial information in respect of PetroNeft's 50% interest in the equity-accounted joint venture entity is disclosed below:
Unaudited Audited ========================== ------------- 6 months 6 months Year ended ended 30 ended 30 31 December June 2016 June 2015 2015 US$ US$ US$ Continuing operations Revenue 4,339,111 4,924,336 10,300,094 Cost of sales (4,259,206) (4,766,524) (10,435,521) ============ ============ ------------- Gross profit 79,905 157,812 (135,427) Administrative expenses (916,886) (830,570) (1,519,005) Impairment of oil and gas properties - - (4,550,000) ============ ============ ------------- Operating loss (836,981) (672,758) (6,204,432) Finance revenue 3,475 5,834 11,694 Finance costs (1,574,275) (1,161,795) (2,572,317) ============ ============ ------------- Loss for the period for continuing operations before taxation (2,407,781) (1,828,719) (8,765,055)
Income tax expense - - - ============ ============ Loss for the period (2,407,781) (1,828,719) (8,765,055) ============ ============ ============= Loss for the period (2,407,781) (1,828,719) (8,765,055) Other comprehensive income to be reclassified to profit or loss in subsequent periods: Currency translation adjustments 5,042,837 837,749 (11,587,393) ============ ============ Total comprehensive profit/(loss) for the period 2,635,056 (990,970) (20,352,448) ============ ============ =============
The currency translation adjustment results from the revaluation of the Russian Rouble during the period. All Russian Rouble carrying values in Stimul-T, the 100% subsidiary of WorldAce are converted to US Dollars at each period end. The resulting gain or loss is recognised through other comprehensive income and transferred to the currency translation reserve. The Russian Rouble appreciated significantly against the US Dollar during the period from RUB73.30:US$1 at 31 December 2015 to RUB64.05:US$1 at 30 June 2016.
7. Equity-accounted Investment in Joint Venture - WorldAce Investments Limited (continued) Unaudited Audited ============= ------------- 30 June 31 December 2016 2015 US$ US$ Non-current Assets Oil and gas properties 35,421,820 27,646,307 Property, plant and equipment 206,001 197,826 Exploration and evaluation assets 7,048,832 6,044,036 Assets under construction 2,665,129 2,345,358 45,341,782 36,233,527 ============= ------------- Current Assets Inventories 479,906 257,857 Trade and other receivables 308,786 259,142 Cash and cash equivalents 38,018 153,198 826,710 670,197 ============= ------------- Total Assets 46,168,492 36,903,724 ============= ============= Non-current Liabilities Provisions (353,646) (273,278) Interest-bearing loans and borrowings (52,416,272) (48,366,752) (52,769,918) (48,640,030) ============= ------------- Current Liabilities Trade and other payables (5,148,927) (2,649,103) (5,148,927) (2,649,103) ============= ------------- Total Liabilities (57,918,845) (51,289,133) ============= ============= Net Liabilities (11,750,353) (14,385,409) ============= ============= 8. Equity-accounted Investment in Joint Venture - Russian BD Holdings B.V.
PetroNeft Resources plc has a 50% interest in Russian BD Holdings B.V., a jointly controlled entity which holds 100% of LLC Lineynoye, an entity involved in oil and gas exploration and the registered holder of Licence 67. The interest in this joint venture is accounted for using the equity accounting method. Russian BD Holdings B.V. is incorporated in the Netherlands and carries out its activities in Russia.
Share of net assets US$ At 1 January 2015 365,178 Retained loss (314,859) Translation adjustment (887,109) Credited against loans receivable from Russian BD Holdings BV (Note 9) 836,790 ========== At 1 January 2016 - Retained loss (172,677) Translation adjustment 424,702 Reversal of credit to loans receivable from Russian BD Holdings BV (Note 9) (252,025) At 30 June 2016 - ==========
The balance sheet position of Russian BD Holdings B.V. shows net liabilities of US$1,169,530 following a loss in the year of US$345,354 together with a currency translation adjustment (gain) of US$849,404. PetroNeft's 50% share is included above and results in a negative carrying value of US$584,765. Therefore, the share of net assets is reduced to Nil and, in accordance with IAS 28 Investments in Associates and Joint Ventures, the amount of US$584,765 is deducted from other assets associated with the joint venture on the Balance Sheet which are the loans receivable from Russian BD Holdings B.V. (Note 9).
8. Equity-accounted Investment in Joint Venture - Russian BD Holdings B.V. (continued)
Additional financial information in respect of PetroNeft's 50% interest in the equity-accounted joint venture entity is disclosed below:
Unaudited Audited ======================== ------------- 6 months 6 months Year ended ended 30 ended 30 31 December June 2016 June 2015 2015 US$ US$ US$ Revenue - - - Cost of sales - - - Gross profit - - - Administrative expenses (56,435) (58,858) (106,224) Operating loss (56,435) (58,858) (106,224) Finance revenue 204 274 434 Finance costs (116,446) (98,886) (209,069) Loss for the period for continuing operations before taxation (172,677) (157,470) (314,859) Taxation - - - Loss for the period (172,677) (157,470) (314,859) =========== =========== ============= Loss for the period (172,677) (157,470) (314,859) Other comprehensive income to be reclassified to profit or loss in subsequent periods: Currency translation adjustments 424,702 72,005 (887,109) Total comprehensive profit/(loss) for the period 252,025 (85,465) (1,201,968) =========== =========== ============= Unaudited Audited ============ ------------ 30 June 31 December 2016 2015 US$ US$ Non-current assets 3,787,327 3,327,327 Current assets 45,227 71,104 Total assets 3,832,554 3,398,431 ============ ------------ Non-current liabilities (4,214,659) (4,034,780) Current liabilities (202,660) (200,441) Total liabilities (4,417,319) (4,235,221) ============ ------------ Net Liabilities (584,765) (836,790) ============ ============ Financial assets - loans 9. and receivables Unaudited Audited ============ --------------------------- 30 June 31 December 2016 2015 US$ US$ Loans to WorldAce Investments Limited (Note 14) 50,704,823 49,224,805 Less: share of WorldAce Investments Limited loss (7,032,591) (9,516,618) 43,672,232 39,708,187 ------------ --------------------------- Loans to Russian BD Holdings B.V. (Note 14) 4,126,909 4,012,464 Less: share of Russian BD Holdings B.V. loss (584,765) (836,790) 3,542,144 3,175,674 ------------ --------------------------- 47,214,376 42,883,861
============ ===========================
The Company has granted a loan facility to its joint venture undertaking WorldAce Investments Limited of up to US$45 million. This loan facility is US$ denominated and unsecured. Interest currently accrues on the loan at USD LIBOR plus 6.0% but the Company has agreed not to seek payment of interest until H2 2017 at the earliest. The loan is set to mature on 31 December 2022. The loan from the Company to Russian BD Holdings is repayable on demand. Interest currently accrues on the loan at LIBOR plus 6.0% per annum.
10. Inventories Unaudited Audited ============================ --------------------------- 30 June 31 December 2016 2015 US$ US$ Materials 29,676 54,302 29,676 54,302 ============================ =========================== 11. Trade and other receivables Unaudited Audited ================================= ---------------------------- 30 June 31 December 2016 2015 US$ US$ Other receivables 224,724 147,641 Receivable from jointly controlled entity (Note 14) 1,852,613 1,628,667 Advances to contractors 1,992 3,708 Prepayments 235,007 62,112 2,314,336 5,069,944 ================================= ============================
Other receivables are non-interest-bearing and are normally settled on 60-day terms.
12. Cash and Cash Equivalents Unaudited Audited =============================== ------------------------ 30 June 31 December Group 2016 2015 US$ US$ Cash at bank and in hand 382,546 1,284,212 382,546 1,284,212 =============================== ========================
Bank deposits earn interest at floating rates based on daily deposit rates. Short-term deposits are made for varying periods of between one day and one month depending on the immediate cash requirements of the Group, and earn interest at the respective short-term deposit rates.
13. Trade and other payables Unaudited Audited ================================= ---------------------------- 30 June 31 December 2016 2015 US$ US$ Trade payables 334,135 238,570 Trade payables to jointly controlled entity (Note 14) 388,254 239,228 Corporation tax 59,439 59,087 Oil taxes, VAT and employee taxes 44,874 78,293 Other payables 348,544 212,141 Accruals 213,826 317,827 1,389,072 1,145,146 ================================= ============================
The Directors consider that the carrying amount of trade and other payables approximates their fair value.
Trade and other payables are non-interest-bearing and are normally settled on 60-day terms.
Trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing costs.
14. Related party disclosures
Transactions with subsidiaries
Transactions between the Group and its subsidiaries, Granite and Dolomite, have been eliminated on consolidation.
Transactions with joint ventures
PetroNeft Resources plc had the following transactions with its joint ventures during the six months ended 30 June 2016 and year ended 31 December 2015:
WorldAce Russian Investments BD Holdings Limited Group BV Group Group US$ US$ Receivable by PetroNeft Group at 1 January 2015 3,882,578 47,341,766 Transactions during the year 183,333 2,670,250 Interest accrued in the year 205,189 2,826,303 Payments for services made during the year (29,781) (2,483,727) Share of joint venture's translation adjustment (836,790) (9,516,618) Translation adjustment (14,821) 45,618 --------------------------- ------------------------- At 1 January 2016 3,389,708 40,883,592 Transactions during the period 78,222 1,686,332 Interest accrued in the period 114,445 1,480,019 Payment for services made during the period (2,743) (1,771,387) Share of joint venture's translation adjustment 252,025 2,484,027 Translation adjustment 7,941 76,554 At 30 June 2016 3,839,598 44,839,137 =========================== ========================= Balance at 31 December 2015 comprised of: Loan facility advanced 3,175,674 39,708,187 Trade and other receivables 214,034 1,414,633 Trade Payables - (239,228) 3,389,708 40,883,592 =========================== ========================= Balance at 30 June 2016 comprised of: Loans receivable 3,542,144 43,672,232 Trade and other receivables 297,454 1,555,159 Trade and other payables - (388,254) 3,839,598 44,839,137 =========================== =========================
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EAKNXALNKEFF
(END) Dow Jones Newswires
September 28, 2016 02:00 ET (06:00 GMT)
1 Year Petroneft Resources Chart |
1 Month Petroneft Resources Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
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