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 |
---|---|---|---|---|---|
Greka (DI) | LSE:GDL | London | Ordinary Share | KYG411101002 | 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% | 1.30 | 1.10 | 1.50 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMGDL
RNS Number : 8874R
Greka Drilling Limited
27 September 2017
27 September 2017
Greka Drilling Limited
("Greka Drilling" or the "Company")
Interim Results 2017
Greka Drilling Limited (AIM: GDL), the largest independent and specialised unconventional gas driller in Asia, is pleased to announce its unaudited results for the six months ended 30 June 2017.
FINANCIAL HIGHLIGHTS
l Revenue of US$3.6 million (H1 2016: US$2.6 million), an increase of 38%
l Loss of US$1.4 million (H1 2016: loss of US$5.5 million)
l US$2.7 million of cash (restricted) as at 30 June 2017
OPERATIONAL HIGHLIGHTS
l 12 wells were drilled in the first 6 months this year compared to 10 wells in the same period last year, of which:
o 5 wells drilled in China (PetroChina - 3; Green Dragon Gas -1; other - 1), compared with 3 wells drilled in H1 2016 (all for Green Dragon Gas)
o 7 wells drilled in India for Essar (2016 H1: 7 wells, all for Essar)
l A total of 15,625 metres were drilled, compared to 12,458 metres in the same period last year, an increase of 25%, of which:
o 7,964 metres were drilled in China (H1 2016: 4,128 metres) o 7,661 metres were drilled in India (H1 2016: 8,330 metres)
Randeep S. Grewal, Chairman and Chief Executive of Greka Drilling, commented:
"I am very pleased to report a well-balanced performance in China and India. Our well-executed dual country strategy has been successfully implemented. The contracted services from both countries' state-owned enterprises CNPC and ONGC are recognition of the niche CBM drilling expertise and technology within Greka Drilling. The foundation is in place to expand from in years to come."
For more information on Greka Drilling, please visit the Company's website at www.grekadrilling.com or contact:
Greka Drilling Sarah Lowther Media Relations +44 (0) 7931 838144 ------------------------------ -------------------- Smith & Williamson Nominated Adviser and Broker Azhic Basirov / David Jones / Ben Jeynes +44 (0) 20 7131 4000 ------------------------------ --------------------
CHAIRMAN'S STATEMENT
We are very pleased to see that the service sector in China and India has turned the corner following three years of stagnation. Both governments' steadfast support for the development of CBM resources is the catalyst to enable the revitalisation of the sector of which Greka Drilling stands to be a natural beneficiary as the only CBM drilling specialist in both jurisdictions.
During the six months under review, the Company made progress in several areas including attaining more drilling contracts, improving performance and efficiency. As a result, I am pleased to report H1 revenue increased 28% to US$3.6 million and losses decreased to US$1.4 million, a 75% reduction compared to the same period of last year with gross margin rising to 19%.
The Company spud the first well for PetroChina Huabei in February under the 5 horizontal wells drilling contract with a value of US$2 million signed in November 2016. To date, five wells have been successfully completed, while an additional sixth is currently being drilled. The client's satisfaction with our advanced rig technology and experienced crews, was well demonstrated by two new drilling contracts this year. These two drilling contracts have an aggregate value of at least US$2 million.
Furthermore, in India, in addition to the completed 7 wells for Essar, the Company has been awarded a Letter of Award (LOA) for a three-year drilling contract by Oil & Natural Gas Corporation Limited ("ONGC"). Under this contract, the Company will drill 73 wells over the next three years using our state-of-the-art rig which has a proven track record of drilling in similar geological conditions. The project, which remains subject to contract and to the issue of a performance bond, will entail the provision of drilling and mud services along with the provision of associated equipment and is estimated to generate total revenues of US$15 million over the three-year period. We expect to spud the first well prior to year-end.
Among the significant number of state-owned drilling companies, Greka Drilling stands out as the only independent foreign drilling contractor sustainably providing services within the CBM sector in China and India to the state-owned CNPC and ONGC. The contracted drilling services are recognition of the niche drilling expertise within the Company.
I look forward to providing further updates of the Company's continued progress.
Randeep S. Grewal
Chairman
26 September 2017
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
Six months Six months Year ended ended ended 31 December 30 June 30 June 2016 2017 2016 US$'000 US$'000 US$'000 Note Unaudited Unaudited Audited ========================== ===== ======================= ====================== ====================== Revenue 3 3,590 2,610 7,154 Cost of sales (2,896) (3,921) (8,168) ========================== ===== ======================= ====================== ====================== Gross profit/(loss) 694 (1,311) (1,014) Administrative expenses (1,694) (3,898) (6,167) ========================== ===== ======================= ====================== ====================== Loss from operations (1,000) (5,209) (7,181) Finance income 4 - 84 73 Finance costs 5 (544) (1,756) (2,451) ========================== ===== ======================= ====================== ====================== Loss before income tax (1,544) (6,881) (9,559) Income tax charge 6 175 1,353 1,815 ========================== ===== ======================= ====================== ====================== Loss for the period (1,369) (5,528) (7,744) Other comprehensive income/(expense): Items that may be reclassified to profit or loss: Exchange differences on translation of foreign operations 1,282 7 (2,402) ========================== ===== ======================= ====================== ====================== Total comprehensive expense for the period (87) (5,521) (10,146) -------------------------- ----- ----------------------- ---------------------- ---------------------- (Loss)/profit for the period attributable to: - Owners of the company (1,430) (5,615) (7,838) - Non-controlling interests 61 87 94 ========================== ===== ======================= ====================== ====================== (1,369) (5,528) (7,744) -------------------------- ----- ----------------------- ---------------------- ---------------------- Total comprehensive (expense)/income attributable to: - Owners of the company (119) (5,549) (10,212) - Non-controlling interests 32 28 66 ========================== ===== ======================= ====================== ====================== (87) (5,521) (10,146) -------------------------- ----- ----------------------- ---------------------- ---------------------- Earnings per share - Basic and diluted (in US$) 7 (0.0034) (0.0141) (0.0194) ========================== ===== ======================= ====================== ======================
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
As at 30 As at 31 June 2017 December 2016 US$'000 US$'000 Note Unaudited Audited =========================== ===== ========================= ====================== Assets Non-current assets Property, plant and equipment 8 79,634 79,601 Intangible assets 263 292 Deferred tax assets 9 781 377 Other non-current 471 - assets =========================== ===== ========================= ====================== 81,149 80,270 =========================== ===== ========================= ====================== Current assets Inventories 10 5,875 5,981 Trade and other receivables 11 5,069 3,759 Cash and bank balances 12 2,721 2,135 =========================== ===== ========================= ====================== 13,665 11,875 =========================== ===== ========================= ====================== Total assets 94,814 92,145 =========================== ===== ========================= ====================== Liabilities Current liabilities Trade and other payables 13 28,453 25,045 Loans and borrowings 14 2,952 3,604 Provisions - - =========================== ===== ========================= ====================== 31,405 28,649 =========================== ===== ========================= ====================== Non-current liabilities Loans and borrowings 14 7,298 7,298 Financial liability 15 858 858 Deferred tax liabilities 9 - - =========================== ===== ========================= ====================== 8,156 8,156 =========================== ===== ========================= ====================== Total liabilities 39,561 36,805 =========================== ===== ========================= ====================== Total net assets 55,253 55,340 =========================== ===== ========================= ====================== Capital and reserves Share capital 4 4 Share premium 77,186 77,186 Invested capital (1,533) (1,533) Reserve fund 917 917 Foreign exchange reserve (208) (1,519) Retained (deficit) (20,922) (19,492) =========================== ===== ========================= ====================== Total equity attributable to owners of the Company 55,444 55,563 Non-controlling interests (191) (223) =========================== ===== ========================= ====================== Total equity 55,253 55,340 =========================== ===== ========================= ======================
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Invested Reserve Foreign Retained Equity Non-controlling Total capital premium capital fund exchange deficit attributable interests reserve to owners of the Company US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 =================== ============== ================ ================= ============ ============ ==================== =============== ================ ================= At 01 January 2016 - audited 4 77,186 (1,533) 917 855 (11,654) 65,775 (289) 65,486 Loss for the period - - - - - (5,615) (5,615) 87 (5,528) Other comprehensive income: - Exchange difference on translation of foreign operations - - - - 66 - 66 (59) 7 =================== ============== ================ ================= ============ ============ ==================== =============== ================ ================= Total comprehensive income/(expense) for the period - - - - 66 (5,615) (5,549) 28 (5,521) At 30 June 2016 - unaudited 4 77,186 (1,533) 917 921 (17,269) 60,226 (261) 59,965 =================== ============== ================ ================= ============ ============ ==================== =============== ================ ================= At 01 January 2017 - audited 4 77,186 (1,533) 917 (1,519) (19,492) 55,563 (223) 55,340 (Loss)/profit for the period - - - - - (1,430) (1,430) 61 (1,369) Other comprehensive income/(expense): - Exchange difference on translation of foreign operations - - - - 1,311 - 1,311 (29) 1,282 =================== ============== ================ ================= ============ ============ ==================== =============== ================ ================= Total comprehensive income/(expense) for the period - - - - 1,311 (1,430) (119) 32 (87) =================== ============== ================ ================= ============ ============ ==================== =============== ================ ================= At 30 June 2017- unaudited 4 77,186 (1,533) 917 (208) (20,922) 55,444 (191) 55,253 =================== ============== ================ ================= ============ ============ ==================== =============== ================ =================
CONSOLIDATED STATEMENT OF
CASH FLOWS
6 months 6 months Year ended ended 30 ended 30 31 December June 2017 June 2016 2016 US$'000 US$'000 US$'000 Unaudited Unaudited Audited =============================== ========================= ========================= ======================= Operating activities: (Loss)/profit before income tax (1,544) (6,881) (9,559) Adjustments for: Depreciation 1,908 1,619 2,445 Amortization of other intangible assets 36 38 71 Loss on disposal of property, plant and equipment - 152
Finance (loss)/gains 126 1,329 1,482 Finance income (247) (84) (73) Finance costs 418 427 969 ================================ ========================= ========================= ======================= Operating cash flows before changes in working capital 697 (3,552) (4,513) Decrease/(increase) in inventories 106 835 1,157 (Increase)/decrease in trade and other receivables (1,780) (192) 396 Increase/(decrease) in trade and other payables 3,149 6,301 (1,014) ================================ ========================= ========================= ======================= Cash generated from/(utilized by) operations 2,172 3,392 (3,974) Income tax payment (229) (43) (216) ================================ ========================= ========================= ======================= Net cash from operating activities 1,943 3,349 (4,190) ================================ ========================= ========================= ======================= Investing activities: Payments for purchase of property, plant and equipment (8) 98 (318) Payments for intangible - - - assets Movement in restricted cash (2,657) (4,395) 2,068 Interest received 1 1 59 ================================ ========================= ========================= ======================= Net cash (used in)/from investing activities (2,664) (4,296) 1,809 ================================ ========================= ========================= ======================= Financing activities: Proceeds from promissory note - 5,000 8,000 Proceeds of short term loan 2,952 3,770 3,604 Repayment of short term loan (3,604) (5,852) (5,852) Finance costs paid (161) (268) (738) ================================ ========================= ========================= ======================= Net cash from/(used in) financing activities (813) 2,650 5,014 ================================ ========================= ========================= ======================= Net increase/(decrease) in cash and cash equivalents (1,534) 1,703 2,633 Cash and cash equivalents at start of year 2,135 353 353 ================================ ========================= ========================= ======================= 601 2,056 2,986 Effect of foreign exchange rate changes (537) (437) (851) ================================ ========================= ========================= ======================= Cash and cash equivalents at end of year 64 1,619 2,135 ================================ ------------------------- ========================= =======================
NOTES TO CONSOLIDATED
INTERIM FINANCIAL STATEMENTS
1. GENERAL INFORMATION
The consolidated unaudited interim financial information set out in this report is based on the consolidated financial statements of Greka Drilling and its subsidiary companies (together referred to as the "Group").
2. ACCOUNTING POLICIES
The condensed consolidated financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2016, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union except for IAS 34. The financial statements of the Group for the 6 months ended 30 June 2017 were approved and authorized for issue by the Audit Committee and the Board on 26 September 2017.
The interim financial statements have been prepared in accordance with the accounting policies that are consistent with the December 2016 financial statements and the same policies are expected to apply for the year ended 31 December 2017. The financial information for the six months to 30 June 2017 does not constitute audited accounts of the Company or the Group. The comparative financial information for the year ended 31 December 2016 in this interim report does not constitute statutory accounts for that year. The auditors' report on those accounts was unqualified and did not draw attention to any matters by way of emphasis.
Basis of preparation
After making enquiries, the directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the half-yearly consolidated financial statements.
The consolidated financial information is presented in United States dollars and all values are rounded to the nearest thousand dollars (US$'000) except when otherwise indicated.
The consolidated financial information has been prepared in accordance with the requirements of the AIM Rules for Companies and in accordance with IFRS as adopted by the European Union. The consolidated financial information has been prepared using the accounting policies which will be applied in the Group's financial statements for the year ended 31 December 2017.
The preparation of consolidated financial information in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies. The areas involving a higher degree of judgment or complexity or areas where assumptions and estimates are significant to the financial information are disclosed in note 2 to the financial information in the 31 December 2016 annual report. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision only affects that period or in the period of revision and future periods if the revision affects both current and future periods.
3. REVENUE AND SEGMENTAL INFORMATION
The Group determines its operating segment 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: the provision of contract drilling services in the PRC and India. The division of contract drilling operations into two reportable segments is attributable to how the CODMs manage the business. Intercompany eliminations and corporate balances are included in the "other" column.
Drilling services revenue and management services revenue represent the net invoiced value of contracted drilling services and management services provided to two major customers, one in the PRC (who is a related party) and the other in India.
Six months Six months Year ended ended 30 ended 30 31 December June 2017 June 2016 2016 US$'000 US$'000 US$'000 Unaudited Unaudited Audited China 2,536 1,959 3,241 India 1,054 651 3,913 ========= ====================== ======================== ==================== 3,590 2,610 7,154 As at 30 As at 31 December June 2017 2016 US$'000 US$'000 Unaudited Audited Segmental assets China 90,833 86,613 India 19,416 19,699 Intercompany (15,435) (14,167) ================= ======================= ==================== 94,814 92,145 Segmental liabilities China 13,072 9,517
India 4,012 4,096 Intercompany 22,477 23,192 ================= ======================= ==================== 39,561 36,805
4. FINANCE INCOME
Six months Six months Year ended ended 30 ended 30 31 December June 2017 June 2016 2016 US$'000 US$'000 US$'000 Unaudited Unaudited Audited Change in FV of derivative - 83 14 Bank interest - 1 59 ================ ========================= ========================= ====================== - 84 73
5. FINANCE COSTS
Six months Six months Year ended ended 30 ended 30 31 December June 2017 June 2016 2016 US$'000 US$'000 US$'000 Unaudited Unaudited Audited Interest expense on short term loans (418) (373) (969) Foreign exchange loss (126) (1,329) (1,482) Amortization - (54) - of warrant costs =================== ======================== ========================= ====================== (544) (1,756) (2,451)
6. TAXATION
Taxation for the Group's operations in the PRC is provided at the applicable current tax rate of 25% on the estimated assessable profits for the period. Taxation for operations in India is taxed at 4.326% of gross revenue.
7. EARNINGS PER SHARE
Six months Six months Year ended ended 30 ended 30 31 December June 2017 June 2016 2016 US$'000 US$'000 US$'000 Unaudited Unaudited Audited Earnings for the purpose of basic and diluted loss per share (1,369) (5,528) (7,744) ===================== ======================= ======================== ===================== Weighted average number of ordinary shares 398,245,758 398,245,758 398,245,758 ===================== ======================= ======================== =====================
Warrants were outstanding at the end of the period that could potentially dilute basic earnings per share in the future. However, due to losses incurred during the current period, the impact of these share incentives would not be dilutive.
8. PROPERTY, PLANT AND EQUIPMENT
During the period, the Group incurred US$336,740 on additions to plant and equipment (31 December 2016 - US$318,000).
9. DEFERRED TAXATION
As at 30 As at 31 June 2017 December 2016 US$'000 US$'000 Unaudited Audited Deferred tax liabilities Opening balance (377) 1,184 Tax losses recognised (862) (3,372) Temporary difference charge 638 1,395 Foreign exchange adjustment (180) 416 ----------------------------- ------------------------- ---------------------- At the end of the period (781) (377) ============================= ========================= ======================
The Group has not offset deferred tax assets and liabilities across different jurisdictions. Cayman Island losses of US$689,016 (2016: US$2,120,554) do not expire under current tax legislation. PRC tax losses of US$861,752 (2016: $3,371,620) expire after 5 years.
10. INVENTORIES As at 30 As at 31 June 2017 December 2016 US$'000 US$'000 Unaudited Audited Raw materials and consumables 5,875 5,981 ---------------------- ----------------------- -------------------- 11. TRADE AND OTHER RECEIVABLES As at 30 As at 31 June 2017 December 2016 US$'000 US$'000 Unaudited Audited Accounts receivable 3,294 1,415 Prepayments 412 902 Other receivables 1,363 1,442 ======================== ======================== 5,069 3,759 ======================= ======================== ===================== 12. CASH AND CASH EQUIVALENTS As at 30 As at 31 June 2017 December 2016 US$'000 US$'000 Unaudited Audited Cash and Cash Equivalents (Unrestricted) 64 2,135 Cash and Cash Equivalents 2,657 - (Restricted) ============================ ==== ======================= ====================== 2,721 2,135 ============================ ============================ ====================
The restricted bank balance represents deposits placed in financial institutions to secure bills payable of an equivalent amount related to bank loans of US$2,657,062.
13. TRADE AND OTHER PAYABLES As at 30 As at 31 June 2017 December 2016 US$'000 US$'000 Unaudited Audited Trade payables and others 8,491 8,557 Notes payable 2,657 Customer deposits 2,500 Other current liabilities 4,461 3,561 Amount due to related parties 10,344 12,927 ==================== ======================= ==================== 28,453 25,045 14. LOANS AND BORROWINGS Bank name Period Balance Interest Repayment New loan Balance as rate as at at 31 30 Dec June 2016 2017 ------------- --------- -------- --------- --------------------- --------------------- -------- US$'000 Date Amount Date Amount US$'000 US$'000 US$'000 ------------- --------- -------- --------- ---------- --------- ---------- --------- -------- CITIC Bank 1 year 1,730 6.60% 11/5/2017 1,730 16/5/2017 1,476 1,476 ------------- --------- -------- --------- ---------- --------- ---------- --------- -------- SPD Bank 1 year 1,874 6.96% 17/1/2017 1,874 18/1/2017 1,476 1,476 ------------- --------- -------- --------- ---------- --------- ---------- --------- -------- Total for short term
loan 3,604 3,604 2,952 2,952 ------------------------ -------- --------- ---------- --------- ---------- --------- -------- Guaranty Finance Investors, LLC 3 years 7,298 7.00% 7,298 ------------- --------- -------- --------- ---------- --------- ---------- --------- -------- Total for long term loan 7,298 7,298 ------------------------ -------- --------- ---------- --------- ---------- --------- --------
Promissory notes of US$5 million and US$3 million are repayable to Guaranty Finance Investors, LLC on 31 March 2019 and 30 September 2019 respectively; on initial recognition, financing costs of US$872,000 were deducted from the promissory notes.
15. FINANCIAL LIABILITY
During the year ended 31 December 2016, 35,000,000 and 21,000,000 warrants, at a subscription price of 5 pence per share, were granted to Guaranty Finance Investors LLC as part of the financing agreements entered into in March 2016 and September 2016 respectively. The warrants have an exercise period of 2 years from 1 April 2017 to 31 March 2019 and 30 September 2017 to 30 September 2019 respectively.
16. RELATED PARTY TRANSACTIONS
a. Amounts due from/to related parties and corresponding transactions
The related parties of the Group include companies that are subsidiaries of Green Dragon Gas Ltd, Greka Engineering and Technology Limited and Henan Greka Weino Alcohol Trading Limited. All the related parties are under common management and control of Mr Randeep Grewal, the Company's Chairman & CEO.
As at 30 June 2017, the Group had the following balances due to companies under the common control of Mr Grewal:
-- Net payable to the Green Dragon Gas group of US$9.8m (2016: net payable: US$12.7 million)
-- Net payable to the Greka Engineering and Technology group of US$518,041 (2016: US$206,940)
These balances are unsecured, interest-free and repayable on demand.
Related party transactions during the period comprise:
-- Drilling services provided to the Green Dragon Gas group of US$850,856 (2016: US$1,541,000)
-- Leasing income from the Green Dragon Gas group of US$228,260 (2016: US$327,000), Greka Engineering and Technology group of US$27,422 (2016: US$25,000). The lease term was 1 year from 1 January 2017 to 31 December 2017 and 1 January 2016 to 31 December 2016 respectively.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFSEADIRFID
(END) Dow Jones Newswires
September 27, 2017 02:00 ET (06:00 GMT)
1 Year Greka Drilling Chart |
1 Month Greka Drilling 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