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RNS Number:8920P
Venture Production PLC
18 September 2003
18th September 2003
Venture Production plc - Interim Results
for the six months ended 30th June 2003
Financial Highlights
* Production up 48% to 13,458 boepd (2002- 9,072 boepd)
* Turnover up 15% to #34.9 million (2002- #30.3 million)
* Pre-tax profit up 9% to #9.2 million (2002- #8.4 million)
* Cashflow from operating activities up 37% to #24.3 million (2002- #17.8
million)
* Total capital expenditure (including acquisitions) of #21.1million
Business Highlights
* Sycamore Field development brought on stream in March - ahead of schedule
* Successful launch of SNS drilling campaign - Ann workover completed in
June
* Four North Sea acquisitions - adding depth and diversity to portfolio
* Increasing control of portfolio - operatorship of 18 out of 20 field
interests
* Pro forma reserves at mid year 2003 up 49% to 74.0 MMboe
* Award of new licences in Kittiwake area in UK 21st Licensing Round
Bruce Dingwall, Chief Executive, said:
"The first half of 2003 saw the continuation of Venture's growth. We delivered
a number of key operational successes with significant increases in production,
turnover and cashflow. Our 2003 Southern North Sea ("SNS") drilling campaign
began well with the successful Ann workover and the recently announced positive
appraisal well on Annabel. In addition, the four new acquisitions announced in
the period will not only materially increase production and reserves but will
also substantially increase the size and scale of our development portfolio.
This will serve both to reduce risk across the Group's three North Sea operating
hubs and provide inventory to maintain the momentum of our growth.
During the first half of the year we brought the Sycamore field on stream and it
has been a major contributor to our growth. Since the period end, we have
reached total depth on our North Sycamore development well. While the well
encountered a significant oil column, the reservoir intersected was not of
sufficient quality to justify completion as a North Sycamore production well as
originally planned. The well is being suspended pending evaluation of
development options.
The Group now expects 2003 average daily production to be in the range
14,000-15,000 boepd and to exit the year with an average daily production rate
of approximately 20,000 boepd, more than double the exit rate for 2002. The
portfolio development and diversification which has been a strong feature during
this year, is beginning to have a positive impact on the Group's risk profile.
While short term volatility will remain a factor in the growth of a business
such as Venture's, this increased scale and diversification gives us greater
confidence in our ability to deliver our medium term objectives."
Enquiries:
VENTURE PRODUCTION plc 01224 619 000
Bruce Dingwall, Chief Executive
Mike Wagstaff, Finance Director
BRUNSWICK GROUP LIMITED 020 7404 5959
Patrick Handley
Roderick Cameron
Chairman's and Chief Executive's Statement
During the first six months of 2003, Venture has continued to build on the
growth it achieved in 2002. Since Venture's flotation on the London Stock
Exchange eighteen months ago, we have invested the capital raised on listing to
create a business twice the size through acquisitions and development activity.
During this period reserves have increased from 39.0 to 74.0 MMboe, production
has increased from 6,964 boepd in the second half of 2001 to 13,458 boepd and we
have expanded from one production hub in the North Sea to three.
Average daily production for the first half of this year has increased by 48%,
to 13,458 boepd, compared with the same period last year (first half 2002 -
9,072 boepd). Turnover for the period was 15% higher at #34.9 million (2002 -
#30.3 million) and profit before tax for the period increased by 9% to #9.2
million (2002 - #8.4 million). Cashflow from operations increased by 37% to
#24.3 million (2002 - #17.8 million) and enabled the Company not only to fund
its acquisition and development programme, but also to pay down an element of
its loan.
Operational Highlights
UKCS - Trees
The principal highlight during the first six months was the start-up of
production from the Sycamore field located in Block 16/12a. The field entered
production on 6th March, one month ahead of schedule, at production rates in
excess of those originally estimated. However, since this time, production from
one of the two Phase I production wells has declined faster than anticipated.
In recent months, production from this well has stabilised and in light of this
no remedial action is planned for this year. Since the period end we have
reached total depth on our SP1 North Sycamore development well. The well
encountered a significant oil column but the reservoir intersected was not of
sufficient quality to complete the well as a producer and it is being suspended.
We are currently evaluating options for the well, and will decide whether to
side-track the well to a new location to the south and complete the well as a
Central Sycamore water injection well. During the first half of the year Larch
continued to produce in line with expectations.
UKCS - "A" Fields
Gas production from our "A" Fields' interests has seen a marked increase over
2002 levels. The new gas sales arrangements for the Ann/Alison fields have
enabled us to produce consistently throughout the period.
Our Southern North Sea ("SNS") drilling campaign commenced several months later
than expected due to the late arrival of the jack-up drilling rig from its
previous contract. The first operation, a workover, was undertaken on the Ann A2
well in order to restore production from that well, which had been shut-in for
over a year. The workover was successfully completed in June at a lower than
forecast cost and the well brought back into production. In late June we
commenced drilling appraisal well 48/10a-12 on the Annabel accumulation. The
well is currently being suspended for future completion as a production well.
UKCS - Other Assets
During the first half of 2003 Mallard continued to produce in line with
expectations. As a result of its increased interest in Chestnut, Venture has
become operator for the field and work has commenced on a development plan for
the field.
Trinidad
In 2003, production from our Trinidadian assets increased as a result of
completion of the acquisition of Petrotrin's working interest in the Brighton
Marine field in exchange for an over-riding royalty ("ORR") interest. Our other
assets in Trinidad continue to perform in line with expectations and production
for the first half of 2003 averaged 1,288 boepd. Pending the results of the
current government review of the oil and gas fiscal regime, Venture made
negligible investment in Trinidad in the first half of 2003. In addition, as a
result of the reduced materiality of its Trinidadian operations in relation to
the scale of Venture's overall business, during the first half of the year
Venture commenced a strategic review of its position in Trinidad. This is
anticipated to be completed by year end.
Financial Highlights
Turnover for the period was #34.9 million, an increase of #4.6 million or 15%
greater than that achieved in the same period in 2002. In March 2002, when
Venture acquired its Mallard field interest, the purchase included 460 Mboe of
produced but unsold oil inventory. This inventory was sold during 2002 and
caused a one off increase in turnover and profit. Eliminating this, the 2003
increase in turnover was #11.1 million or 47% which is in line with the increase
in production. The average effective realised price for our hydrocarbon sales
was #15.37 per boe, virtually unchanged from that for the same period in 2002.
The strengthening of sterling against the US dollar offset the overall increase
in the price of crude oil. On average during the first half of the year, over
40% of our oil production was hedged using a combination of put options, zero
cost collars and swaps. The earlier than forecast start-up of production from
the Sycamore field gave us the opportunity to hedge 5,000 bopd for 12 months
from April 2003 at a price of US$29 per barrel.
Adjusted (1)
Key Statistics June 2003 June 2002 June 2002
#/boe #/boe #/boe
___________________________________________ _______________ _______________ _____________
Effective realised price 15.37 15.47
Lifting costs 5.10 4.62 5.34
Lifting costs (excluding well workovers) 3.82 4.39 5.11
Depreciation, Depletion & Amortisation 3.43 4.57
Administrative expenses 0.52 1.31 0.59
___________________________________________ _______________ _______________ _____________
(1) The adjusted June 2002 statistics reflect the reclassification of
technical support costs charged to producing assets but previously reported as
administrative costs.
Operating profit for the period was #10.3 million, #1.1 million or 12% above
that earned in the same period last year. Excluding the 2002 Mallard inventory
sales, operating profit increased by #4.7 million or 85%. On a unit basis,
lifting costs for the first six months of 2003 were #5.10 per barrel of oil
equivalent ("#/boe"), a decrease of #0.24/boe over the comparable adjusted cost
for the first half of 2002. This decrease was due to economies of scale gained
as a result of higher production levels in 2003. Lifting costs, excluding the
Ann A2 well workover costs, the benefit of which will not be fully realised
until the second half of the year, were #3.82/boe, #1.29/boe or 25% lower than
those for the comparable adjusted first half of 2002. The effective
Depreciation, Depletion and Amortisation rate decreased by #1.14/boe or 25% to
#3.43/boe reflecting the impact of bringing Sycamore on stream which had
relatively low capital costs as a result of the use of common sub-sea production
facilities with Birch and Larch.
Net administrative expenses for the first half of 2003 totalled #1.3 million, or
#0.52/boe. Adjusting for technical support cost allocation in 2002, on a
comparable basis administrative expenses showed a decrease of #0.07/boe or 12%
over those for the same period last year. This decrease partly resulted from
exchange gains on US dollar denominated debt and was realised despite supporting
a significantly larger asset base as well as the higher cost of corporate
governance and compliance since flotation last year.
The tax charge for the period was #4.6 million, #1.9 million greater than for
2002. The effective tax rate for 2003 of 50%, compared with 33% for 2002,
reflected the full impact of the supplementary charge for UK corporation tax on
oil and gas production introduced last year, coupled with improved financial
performance in Trinidad. Tax losses for 2002 generated by Trinidadian tax at
55% far exceeded those for 2003. However, as a result of Venture's tax
positions in both UK and Trinidad, this tax charge is all deferred.
Due to the increased tax charge, profit after taxation for the first six months
of 2003 was #4.5 million, #1.1 million lower than that for the same period last
year. Consequently, as a result of the higher tax charge and higher average
number of share options outstanding, fully diluted earnings per share decreased
from 5.0p in 2002 to 3.9p in the first half of 2003.
As a result of the increased profitability at the operating level, cashflows
were strong. Net cashflow from operating activities for the first half of 2003
increased by 37% to a total of #24.3 million (2002 - #17.8 million). During the
first half of 2003 capital expenditures including asset acquisitions totalled
#21.1 million resulting in a cash inflow before the use of liquid resources and
financing of #2.5 million (2002 - cash outflow #11.2 million). This positive
free cashflow enabled us to pay down some of our loan in the first half of 2003.
The Group had net current liabilities at the balance sheet date of #1.7 million
(2002 - net current assets #5.7 million) reflecting the increased trade
creditors and accruals associated with the "A" Fields and Sycamore drilling
campaigns. From 1 July 2003, the Group met these liabilities from its available
borrowing facilities, the undrawn balance of which totalled #41.5 million at the
end of August. In May 2003 Venture expanded its bank credit facilities from
US$100 million to US$175 million.
Business Development
To date in 2003, Venture has continued to increase its interests in existing
strategic assets through acquisition. In February, we completed the purchase of
the remaining 45% interest in Brighton Marine in exchange for an ORR. The
following month we announced an agreement to acquire an additional 50% working
interest in and operatorship of the Chestnut field in UKCS block 22/2a from
Amerada Hess. This acquisition brought Venture's total interest in the field to
69.88% and, importantly gives us control over its development.
In late April we jointly agreed with Dana Petroleum ("Dana") to acquire the
working interests of Shell and Esso in the Greater Kittiwake Area ("GKA"). GKA
includes the producing Kittiwake and Mallard fields, the Kittiwake platform and
associated infrastructure as well as several undeveloped discoveries. Venture
will become operator of the GKA assets and our net interest will be equalised
with that of Dana at 50% each. With a further four adjacent blocks being
awarded following the UKCS 21st Licensing Round, GKA will become Venture's third
UKCS production and development hub.
We announced in May an agreement to acquire ConocoPhillips' 30.78% unitised
interest in and operatorship of the producing Audrey gas field that spans Blocks
48/15a and 49/11a. This acquisition will increase Venture's unitised interest in
the Audrey field to 60.68%, with Audrey destined to become the eighteenth
operated field in Venture's portfolio and a key component of the Company's SNS
strategy. In August, it was announced that Venture would acquire the remaining
interests that it does not already own in the Audrey, Ann and Alison gas fields.
Venture's 100% interests in these fields provides the Company with further
upside from the planned development of the SNS asset base.
Following completion of these pending acquisitions, Venture's pro forma proven
and probable reserves at 30 June 2003 were 74.0 MMboe, an increase of 24.3 MMboe
or 49% since 31 December 2002.
Summary of Proven and Probable Reserves
______________________________ __________________________ ____________________ ________
Group UKCS Trinidad
Total Oil Gas Oil Gas Oil
MMboe MMbo Bcf MMbo Bcf MMbo
______________________________ __________________________ ____________________ ________
As at 1 January 2003 49.7 34.0 94.1 29.1 94.1 4.9
Acquisitions 9.0 9.0 - 7.5 - 1.5
Revisions 1.2 0.4 4.8 - 4.8 0.4
Production (2.4) (1.8) (3.8) (1.6) (3.8) (0.2)
______________________________ __________________________ ____________________ ________
As at 30 June 2003 57.5 41.6 95.1 35.0 95.1 6.6
Pro forma acquisitions 16.5 11.0 32.9 11.0 32.9 -
______________________________ __________________________ ____________________ ________
Pro forma at 30 June 2003 (1) 74.0 52.6 128.0 46.0 128.0 6.6
______________________________ __________________________ ____________________ ________
(1) Pro forma acquisitions include the reserves of the GKA and "A" Fields
acquisitions which have not yet been completed.
Current Trading and Outlook
Production from the Sycamore field remains strong, notwithstanding the more
rapid decline than initially forecast in one of the two Phase I production
wells. Following suspension of the SP1 North Sycamore development we are
currently evaluating geological, geophysical and reservoir performance data to
identify the optimum location of water injection and pressure support. This
phase of the Sycamore field's development is planned for next year. The Larch
field continues its steady contribution to total production from the "Trees"
block. Venture continues to work with the operators of the Brae platform to
improve efficiency and optimise production from the "Trees" fields.
In August the definitive legal documents relating to the GKA acquisition were
signed and we continue the transition of the operatorship of the Kittiwake field
and facilities. Completion of this acquisition is scheduled to take place in
the fourth quarter of 2003. In addition, work is continuing to identify
potential infill drilling and other development opportunities within both the
producing Kittiwake and Mallard fields, as well as in the surrounding blocks.
Having secured operatorship of Block 22/2a in which the Chestnut field is
located we are currently formulating development plans to maximise the economic
benefit from this field.
In the Southern North Sea the acquisition of 100% operating interests in the
Audrey, Ann and Alison fields, which includes field infrastructure and adjacent
acreage, creates additional opportunities in the area. In August the Annabel
appraisal well was successfully tested at flow rates in excess of 50 MMcfpd and
the well is currently being suspended for future completion as a production
well. Venture is moving rapidly to develop the field as a sub-sea tie back to
Audrey located some 13km to the south. After Annabel, the rig will drill the
Annie prospect in Block 49/11a and then may continue to drill the nearby Agatha
prospect. In the event of success, both the Annie and Agatha fields will be
developed as sub-sea tie-backs to the Alison manifold, some 3 km away.
As a result, the latest expectation is for average 2003 production to be in the
range 14,000 - 15,000 boepd. This reduction in expectations compared with
estimates earlier in the year is almost entirely as a result of production
shortfall for the third quarter following lower than anticipated production from
Sycamore and the delays in commencement of our North Sea drilling campaigns. We
expect production to reach approximately 20,000 boepd before the end of the
year. This would be more than twice the rate for the same period last year.
Summary
Once again, during the first half of 2003, Venture's production volumes,
turnover and cashflows increased significantly over the corresponding period
last year and the second half of 2003 is expected to see further growth. Our
2003 acquisition and development activity will materially increase the scale and
diversification of Venture's operations and mean that we are on track to double
the scale of our business by the end of this year. In addition, the development
inventory already in place on our current asset base means that we are well
placed to change the scale of our business again in 2004.
This portfolio development and diversification is beginning to have a positive
impact on the Company's risk profile. While short term volatility will remain a
factor in the growth of a business such as Venture's, the increased scale and
diversification of our portfolio gives us greater confidence in our ability to
deliver our medium term objectives.
John Morgan Bruce Dingwall
Chairman Chief Executive
16th September 2003
Independent Review Report to Venture Production plc
For the six month period ended 30 June 2003
Introduction
We have been instructed by the Company to review the financial information which
comprises the group profit and loss account, statement of group total recognised
gains and losses, group balance sheet, group cashflow statement, comparative
figures and associated notes. We have read the other information contained in
the interim report and considered whether it contains any apparent misstatements
or material inconsistencies with the financial information.
Directors' Responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the Directors. The Directors are
responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.
Review Work Performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom Auditing Standards and therefore
provides a lower level of assurance than an audit. Accordingly we do not express
an audit opinion on the financial information. This report, including the
conclusion, has been prepared for and only for the Company for the purpose of
the Listing Rules of the Financial Services Authority and for no other purpose.
We do not, in producing this report, accept or assume responsibility for any
other purpose or to any other person to whom this report is shown or into whose
hands it may come save where expressly agreed by our prior consent in writing.
Review Conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2003.
PricewaterhouseCoopers LLP
Chartered Accountants
Aberdeen
16th September 2003
Notes:
(a) The maintenance and integrity of the Venture Production plc website is
the responsibility of the Directors; the work carried out by the
auditors does not involve consideration of these matters and,
accordingly, the auditors accept no responsibility for any changes that
may have occurred to the interim report since it was initially
presented on the website.
(b) Legislation in the United Kingdom governing the preparation and
dissemination of financial information may differ from legislation in
other jurisdictions.
Group Profit and Loss Account
For the six months ended 30 June 2003
______________________________________________ ____ ____________ _____________ _____________
Unaudited Unaudited Audited
6 months 6 months Year ended
ended ended 31 December
30 June 2003 30 June 2002 2002
Note #'000 #'000 #'000
______________________________________________ ____ ____________ _____________ _____________
Turnover 2 34,932 30,320 52,671
Cost of sales 3 (23,334) (19,151) (34,345)
______________________________________________ ____ ____________ _____________ _____________
Gross profit 11,598 11,169 18,326
Administrative expenses (1,261) (2,149) (4,034)
Other operating (expenses)/income (56) 197 39
______________________________________________ ____ ____________ _____________ _____________
Operating profit 10,281 9,217 14,331
Interest receivable and similar income 45 82 130
Interest payable and similar charges (1,166) (930) (1,736)
______________________________________________ ____ ____________ _____________ _____________
Profit on ordinary activities before taxation 9,160 8,369 12,725
Tax on profit on ordinary activities 4 (4,634) (2,725) (5,549)
______________________________________________ ____ ____________ _____________ _____________
Profit on ordinary activities after taxation 4,526 5,644 7,176
Finance cost of non-equity shares - (192) (192)
______________________________________________ ____ ____________ _____________ _____________
Attributable to equity shareholders 4,526 5,452 6,984
______________________________________________ ____ ____________ _____________ _____________
Earnings per Ordinary Share
Basic Earnings per Share 5 4.2p 5.6p 6.8p
Diluted Earnings per Share 5 3.9p 5.0p 6.1p
______________________________________________ ____ ____________ _____________ _____________
All items dealt with in arriving at the profit for the period relate to
continuing activities. There is no difference between the profit on ordinary
activities before taxation and the retained profit for the period and their
historical equivalents.
Statement of total group recognised gains and losses
______________________________________________ ____ ____________ _____________ _____________
Profit on ordinary activities after taxation 4,526 5,644 7,176
______________________________________________ ____ ____________ _____________ _____________
Total gains recognised since last annual
report 4,526 5,644 7,176
______________________________________________ ____ ____________ _____________ _____________
Group Balance Sheet
As at 30 June 2003
________________________________________________________ ____________ ____________ ______________
Unaudited Unaudited Audited
30 June 30 June 31 December
2003 2002 2002
#'000 #'000 #'000
Fixed assets
Tangible assets 143,327 97,138 127,527
Investments 271 323 318
________________________________________________________ ____________ ____________ ______________
143,598 97,461 127,845
Current assets
Stocks 1,098 3,777 776
Debtors 12,449 14,079 12,616
Cash in hand and at bank 4,929 5,913 2,776
________________________________________________________ ____________ ____________ ______________
18,476 23,769 16,168
Creditors - amounts falling due within one year (20,170) (18,034) (18,314)
________________________________________________________ ____________ ____________ ______________
Net current (liabilities)/assets (1,694) 5,735 (2,146)
________________________________________________________ ____________ ____________ ______________
Total assets less current liabilities 141,904 103,196 125,699
Creditors - amounts falling due after more than one year (29,762) (9,090) (26,259)
Provisions for liabilities and charges (24,505) (12,872) (16,403)
________________________________________________________ ____________ ____________ ______________
Net Assets 87,637 81,234 83,037
________________________________________________________ ____________ ____________ ______________
Capital and reserves
Called up share capital 431 431 431
Share premium 77,302 76,956 77,228
Profit and loss account 9,904 3,847 5,378
________________________________________________________ ____________ ____________ ______________
Total shareholders' funds 87,637 81,234 83,037
________________________________________________________ ____________ ____________ ______________
Group Cashflow Statement
For the six months ended 30 June 2003
________________________________________________________ ____________ ____________ ______________
Unaudited Unaudited Audited
6 months 6 months Year ended
ended ended 31 December
30 June 2003 30 June 2002 2002
#'000 #'000 #'000
________________________________________________________ ____________ ____________ ______________
Operating profit 10,281 9,217 14,331
Depreciation charge 8,355 7,501 13,154
(Increase)/Decrease in stock (322) (1,260) 1,740
Increase in debtors (836) (4,353) (3,892)
Increase in creditors 6,801 6,902 9,745
Gain on sale of fixed assets - (193) -
________________________________________________________ ____________ ____________ ______________
Net cashflow from operating activities 24,279 17,814 35,078
Returns on investment and servicing of finance (590) (409) (741)
Taxation 5 (1,371) (1,530)
Capital expenditure and financial investment (21,166) (27,251) (63,584)
________________________________________________________ ____________ ____________ ______________
Cash inflow/(outflow) before use of liquid resources and 2,528 (11,217) (30,777)
financing
Issue of shares net of expenses - 30,320 30,419
Decrease in loan facility (496) (17,665) (1,618)
Redemption of preference shares - (950) (950)
Exercise of share options held by ESOP 121 - 276
________________________________________________________ ____________ ____________ ______________
Increase/(Decrease) in cash 2,153 488 (2,650)
Cash flow from decrease in debt 496 17,665 1,618
Net debt at 1 January (20,550) (19,518) (19,518)
________________________________________________________ ____________ ____________ ______________
Net debt at end of period (17,901) (1,365) (20,550)
________________________________________________________ ____________ ____________ ______________
Analysis of net debt
Cash in hand and at bank 4,929 5,913 2,775
Debt due after 1 year (22,830) (7,278) (23,325)
________________________________________________________ ____________ ____________ ______________
Total (17,901) (1,365) (20,550)
________________________________________________________ ____________ ____________ ______________
Notes to the Interim Accounts
1 Basis of preparation of interim financial information
The results for the six months to 30 June 2003 and the comparative results for
the six months to 30 June 2002 are unaudited. The Interim Accounts have been
prepared on a basis consistent with the accounting policies set out in the
statutory accounts for the year ended 31 December 2002. The comparative figures
for the year ended 31 December 2002 do not constitute statutory accounts for the
purpose of Section 240 of the Companies Act 1985 and have been extracted from
the Company's published accounts, a copy of which has been delivered to the
Registrar of Companies. The report of the auditors on these accounts was
unqualified and did not contain a statement under either Section 237(2) or
Section 237(3) of the Companies Act 1985.
2 Segmental reporting
In the opinion of the Directors the operations of the Group comprise one class
of business, the production and sale of hydrocarbons in the following
geographical locations:
(1) Turnover represents the invoiced amount of goods sold during the
period stated net of associated sales tax and is analysed as follows:
________________________________________ ____________ _____________ ______________
6 months 6 months Year ended
ended ended 31 December
Turnover 30 June 2003 30 June 2002 2002
#'000 #'000 #'000
________________________________________ ____________ _____________ ______________
United Kingdom 31,627 27,948 47,744
Trinidad 3,305 2,372 4,927
________________________________________ ____________ _____________ ______________
34,932 30,320 52,671
________________________________________ ____________ _____________ ______________
There is no material difference between sales by destination and origin.
(2) Group operating profit is analysed as follows:
________________________________________ ____________ _____________ ______________
6 months 6 months Year ended
ended ended 31 December
Operating profit/(loss) 30 June 2003 30 June 2002 2002
#'000 #'000 #'000
________________________________________ ____________ _____________ ______________
United Kingdom 10,669 10,545 15,770
Trinidad (388) (1,328) (1,439)
________________________________________ ____________ _____________ ______________
10,281 9,217 14,331
________________________________________ ____________ _____________ ______________
Group net assets are analysed as follows:
________________________________________ _____________ _____________ ______________
6 months 6 months Year ended
ended ended 31 December
Net assets/(liabilities) 30 June 2003 30 June 2002 2002
#'000 #'000 #'000
United Kingdom 93,768 85,520 88,387
Trinidad (6,131) (4,286) (5,350)
________________________________________ _____________ _____________ ______________
87,637 81,234 83,037
________________________________________ _____________ _____________ ______________
3 Group gross profit
Group gross profit is stated after charging:
________________________________________ _____________ _____________ ______________
6 months 6 months Year ended
ended ended 31 December
30 June 2003 30 June 2002 2002
#'000 #'000 #'000
________________________________________ _____________ _____________ ______________
Crude oil overlift 2,191 3,545 5,218
Operating expenses 8,172 6,321 13,200
Well workover expenses 3,109 390 497
Depreciation, depletion and amortisation 8,355 7,501 13,154
________________________________________ _____________ _____________ ______________
4 Taxation
In respect of the Group's UK operations, tax has been calculated based on a rate
of 30% plus the supplementary tax of 10% (2002: 30% pre 17 April 2002 and 30%
plus the supplementary tax of 10% post 17 April 2002). The Trinidad tax rate
remains 55% (2002: 55%). The effective tax rate for 2003 was 50% compared with
33% in 2002, reflecting the full impact of the supplementary UK corporation tax
introduced in 2002 and improved performance in Trinidad.
5 Earnings per ordinary share
Basic earnings per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of ordinary shares in issue
during the year. For fully diluted earnings per share the weighted average
number of ordinary shares in issue during the year is adjusted to reflect the
potential exercise of share options by Directors or employees.
The calculation of earnings per ordinary share shown is based upon the
following:
________________________________________ _____________ ______________ ______________
6 months 6 months Year ended
ended ended 31 December
30 June 2003 30 June 2002 2002
________________________________________ _____________ ______________ ______________
#'000 #'000 #'000
Profit for the period 4,526 5,452 6,984
________________________________________ _____________ ______________ ______________
Weighted average number of ordinary shares for
the period - Basic 107,767,688 96,795,964 102,286,706
- Fully Diluted 116,024,900 109,971,648 113,689,702
Earnings per share - Basic 4.2p 5.6p 6.8p
- Fully Diluted 3.9p 5.0p 6.1p
________________________________________ _____________ ______________ ______________
6 Change in presentation
The Group has adopted the #'000 presentation format for these Interim Accounts
and intends to continue with this format in the Annual Report and Accounts for
the year ending 31 December 2003.
Venture Production plc Kings Close
62 Huntly Street
Aberdeen
AB10 1RS
Telephone +(44) 1224 619 000
Fax +(44) 1224 658 151
Website www.vpc.co.uk
Email enquiries@vpc.co.uk
Registered Office 34 Albyn Place
Aberdeen
AB10 1FW
Registered Number 169182 (Scotland)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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