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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Maple Energy | LSE:MPLE | London | Ordinary Share | IE00B1FRPX03 | ORD USD0.01 (EX-DIVIDEND) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1.625 | 0.00 | 00:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Mar 2020 to Mar 2025
TIDMMPLE
RNS Number : 0276T
Maple Energy plc
30 September 2014
30 September 2014
MAPLE ENERGY PLC
("MAPLE" OR THE "COMPANY")
Interim results
for the six months ended 30 June 2014
Maple Energy plc (AIM: MPLE, LIMA: MPLE), an integrated independent energy company with assets and operations in Peru, today announces its consolidated unaudited interim financial results for the six months ended 30 June 2014. Capitalized terms used but not defined in this release have the meanings assigned to them in the Company's 2013 annual report, a copy of which may be found on Maple's website at www.maple-energy.com.
Financial Summary for the six months ended 30 June 2014
-- Revenuesdecreased to US$49.4 million compared with US$71.6 million for the same period in 2013 primarily due to lower ethanol sales price and lower ethanol production volumes, as a reduced tonnage of cane was harvested compared with same period in 2013.
-- Gross profit was US$3.7 million compared with US$18.8 million for the same period in 2013 mainly due to lower ethanol sales price, lower ethanol production as compared to prior year and a US$3.8 million negative adjustment for the fair value of the Biological asset.
-- Adjusted EBITDA (defined below) was US$1.0 million compared with US$13.9 million for the same period in 2013.
-- Depreciation and amortisation expense was US$8.0 million compared with US$8.0 million for the same period in 2013.
-- Net loss after taxes was US$20.5 million (loss of US$0.119 per share) compared to a net loss after taxes of US$8.6 million (loss of US$0.051 per share) for the same period in 2013. As of 30 June 2014, US$8.7 million of such net loss after tax resulted from finance costs including interest on bank loans and transaction costs.
Ethanol Project Highlights (Maple Etanol S.R.L. and Maple Biocombustibles S.R.L.)
-- An aggregate amount of approximately 369,105 gross tonnes of sugar cane (approximately 315,755 net tonnes) have been harvested and processed as of 30 June 2014. This net amount of processed sugar cane excludes sugar cane "trash", which primarily consists of green and dry leaves of the sugar cane that are ultimately used as fuel to generate electricity. The Average total recoverable sugars ("TRS") from the sugar cane processed was approximately 11.95%.
-- An aggregate amount of approximately 24,062 cubic metres (approximately 6.4 million gallons) of fuel-grade ethanol have been produced at the Ethanol Plant as of 30 June 2014. The average ethanol yield during this period was approximately 20.1 gallons (approximately 76.2 litres) per net tonne of sugar cane processed.
-- An aggregate amount of approximately 35,395 megawatt-hours ("MWh") have been generated at the Ethanol Plant of 30 June 2014, and the energy required for the agricultural and industrial operations has been approximately 37,695 MWh during this period.
-- Under the Company's existing sales and distribution agreement with Mitsui & Co. Ltd ("Mitsui"), Maple has sold an aggregate volume of approximately 23,241 cubic metres (approximately 6.1 million gallons) of fuel-grade ethanol to Mitsui as of 30 June 2014. In addition to the sales to Mitsui, Maple sold a total of approximately 662 cubic metres (approximately 0.175 million gallons) of ethanol to domestic and regional markets during the same period.
-- As of 30 June 2014, the average ethanol sales price received by Maple FOB Paita has been US$ 2.09 per gallon (net of shipping cost and Mitsui fee) compared to US$2.76 per gallon during the same period in 2013.
-- For 2014, Maple estimates a revised total of approximately 690,000 gross tonnes of sugar cane to be harvested and processed at the Ethanol Plant. Maple plans to slightly increase this amount of cane delivered to the Ethanol Plant by purchasing and processing third party cane if available.
-- The ethanol plant was shut down in mid-August for a period of approximately 12 weeks. The shutdown is necessary as the sugar cane crop has not yet reached the age where it is suitable for harvesting. The lower sugar cane tons per hectare obtained due to the severe drought that affected the region during the last quarter of 2013 and first quarter of 2014 and the delay in expanding the plantation and performing the replanting activities are the main reasons affecting the quantity of cane available for harvesting.
-- In April 2014, the Company successfully obtained the government approvals critical for the planned expansion of approximately 2,000 hectares of its sugar cane plantation.
Hydrocarbon Production, Refining, and Marketing Highlights (Maple Gas Corporation del Peru S.R.L.)
-- Refinery feedstock averaged approximately 1,742 barrels per day ("bpd") compared to 1,832 bpd for the same period in 2013, consisting of natural gasolines supplied by Aguaytia Energy del Peru S.R.L. ("Aguaytia Energy") and crude oil from Maple's oilfields.
-- Average daily sales of refined products were 1,555 bpd compared to 1,854 bpd for the same period in 2013. This reduction in sales is mainly due to lower demand impacted by strong rainy season.
-- Average daily crude oil production from the Company's oilfields was approximately 415 bpd compared with approximately 417 bpd for the same period in 2013.
-- Maple has purchased 2,236 barrels of crude oil from Compañía Española de Petróleos ("Cepsa") for refining and has received income from the provision of a storage service of approximately US$0.5 million in the period.
Other Financial Highlights for the six months ended 30 June 2014
-- --In April 2014, Maple obtained a short term financing facility for up to US$ 15 million dollars that was primarily used to improve the working capital position of the ethanol business.
-- On 28 March 2014, a new lease contract with Petroperu for the Pucallpa refinery and other related assets was signed. The new term is 10 years with the possibility of negotiating an extension upon agreement of the parties. As part of the lease obligations Maple will install additional tanks to meet increasing market needs and other works to update existing facilities.
-- A Supreme Decree was issued on 30 March 2014, formalizing the extension of the license contract for Blocks 31B and 31D with Perupetro for 10 years more in response to the justified extension request submitted by Maple last year in accordance with the license contract.
Board Changes
-- Mr. Michel Meeùs and Mr. Gerardo Sepúlveda were appointed to serve as Non-Executive Directors of the Company with effect from 4 September 2014.
-- Mr. Tony Hines resigned as Executive Director and Officer of the Company on 4 September 2014. He continues to serve as General Manager of Maple Gas Corporation del Perú S.R.L.
-- Mr. Ricardo Vega Llona resigned as Non-Executive Director of the Company on 4 September 2014. He continues to serve as a director of a subsidiary of the Company.
Other Key Events occurring subsequent to the six months ended 30 June 2014
-- As previously reported, the Company has been actively seeking equity investment from strategic investors in order to secure the sustainability of its ethanol business. The Company has been progressing in this and other initiatives and is seeking to close a transaction in this regard. There can be no guarantees that a transaction with a strategic or financial investor can be reached on terms acceptable to the Company, or at all. The ability of the Company to execute a transaction on a timely basis is critical for its ethanol business, as the performance of the ethanol business has deteriorated further due to challenging market conditions and lower agriculture performance. The Company will continue to provide the market with information regarding these matters as well as other financing alternatives that it is pursuing as appropriate. In the meantime, the Company is continuing to work closely with the Senior Lenders of Maple's ethanol business in order to maintain sufficient working capital and waive certain obligations under the Senior Loan Agreements until new funding is available or an alternative transaction is undertaken. The continued working capital support from the Seniors Lenders will be critical in the coming months.
For further information, please contact
Maple Energy plc (+ 51 1 611 4000)
Carlos Palacios, Chairman of the Board and Independent Non-Executive Director
Guillermo Ferreyros, Chief Executive Officer and Executive Director
Cenkos Securities plc (+44 20 7397 8900)
Alan Stewart
Derrick Lee
Earnings Call
Guillermo Ferreyros Cannock, Chief Executive Officer, and Alfonso Morante Chavez, Chief Financial Officer, will host a conference call to present and discuss the Company's results for the six months ended 30 June 2014 on 2 October 2014 at 3:30 pm BST (9:30 am Peruvian time and 10:30 am Chilean time). The call can be accessed: for quick access, go to https://ccc.spiderphone.com/72528332 (This link will help connect both your browser and telephone to the call) or dial 1 (888) 550-5602 or +1 212-812-2800 and enter 7252 8332. Call participants will be asked for their full name, company details. A recording of the conference call will be available shortly thereafter on Maple's website at www.maple-energy.com.
Operating Results for the six months ended 30 June 2014
As of 30 June 2014, revenues decreased to US$49.4 million compared with US$71.6 million for the same period in 2013. The Company's gross profit was US$3.7 million compared with US$18.8 million for the same period in 2013. Maple generated a net loss after taxes of US$20.5 million (US$0.119 per share) compared to a net loss after taxes of US$8.6 million for the same period in 2013 (US$0.051 per share).
Adjusted EBITDA (as defined below), a key performance indicator for measuring Maple's underlying financial operating performance, was US$1.0 million, compared to US$13.9 million for the same period in 2013. The lower Adjusted EBITDA in 2014 compared to Adjusted EBITDA in 2013 was due to lower performance of the ethanol business due to lower ethanol prices and lower agriculture performance. The Hydrocarbon business unit EBITDA for the period was US$4.5 million, while the Ethanol business had a negative EBITDA of (US$2.8) million. Overhead expenses accounted for the difference.
The table below shows Maple's (i) summary consolidated financial data for the period; (ii) summary consolidated financial data for the same period in 2013, and (iii) other summary financial and operating data.
Hot Features
Premium
Key Performance Indicators
For the six For the six
months ended months
30 June ended 30 June
2014 2013
Hydrocarbon sales volume, barrels
(1) 281,388 335,767
Hydrocarbon gross profit per
barrel sold (1) US$34.46 US$34.25
Ethanol sales volume, gallons
(1) 6,315,318 10,126,803
Ethanol gross (loss)/profit per
gallon sold (1) US$(0.96) US$0.67
US$'000 US$'000
Consolidated Consolidated
Unaudited Unaudited
Revenue from operations 49,390 71,564
Gross profit 3,664 18,846
Operating income/(loss) (10,204) 1,641
Net loss after tax (20,485) (8,571)
Adjusted EBITDA (1) (2) 972 13,913
(1) Unaudited.
(2) Adjusted earnings before interest, taxation, depreciation, and amortisation ("Adjusted EBITDA") is calculated as operating income/(loss) plus depreciation, amortisation, change in value of biological assets, cost of biological assets planted during year, foreign exchange loss/(gain) - realised and unrealised, workers' profit share and non-recurring items including employee termination costs, fines and penalties associated with indirect taxes and third party provider dispute legal costs.
Cash and cash equivalents were US$4.2 million at 30 June 2014, compared to US$5.0 million at 30 June 2013.
Shown below is a reconciliation of operating income to Adjusted EBITDA:
For the six months For the six months
ended 30 June ended 30 June
2014 2013
US$'000 US$'000
Consolidated Consolidated
Unaudited Unaudited
Operating income/(loss) (10,204) 1,641
Depreciation and amortisation 8,001 8,009
Change in value of biological assets 2,434 1,109
Foreign exchange loss/(gain) - realised and unrealised 120 1,685
Workers' Profit Share 621 634
Non- recurring Items:
Employee termination costs - 835
_______ _______
Adjusted EBITDA (1) 972 13,913
======== ========
(1) 2013 Adjusted EBITDA has been restated to conform with the current year presentation of Adjusted EBITDA which is also consistent with the format used for certain bank covenant calculations that the Company must comply with.
Outlook for the remainder of 2014
Ethanol Business
Management focus will remain in obtaining additional capital for the ethanol business through a strategic partner or investor while increasing the efficiency of the Company's operations by actively pursuing actions to improve the agricultural performance of the ethanol business and the marketing operations to increase the ethanol net sales price obtained.
The timing and completion of the Company's 2014 operating and investing activities described below are subject to a number of factors including availability of additional capital, additional working capital, services and equipment. As a result of these and other factors, Maple may increase or decreases planned activities or prioritise certain projects over others during 2014.
Agricultural Development and Operations
Maple continues evaluating new and promising sugar cane varieties suitable for ethanol production and mechanised harvesting techniques with the aim of increasing the yields of sugar cane production and ethanol on a per hectare basis. Maple plans to replace sugar cane varieties that have underperformed at the current plantation with the most promising varieties identified. This action is a critical part of Maple's strategy to increase sugar cane plantation yields.
Maple also plans to begin the development of additional sugar cane plantation by the end of 2014, subject to the availability of capital.
A key part of the Company's strategy for 2014 and beyond is to secure additional sugar cane in order to maximise the utilisation of the installed processing capacity of the Ethanol Plant. As a result, the Company has been purchasing third party sugar cane and is evaluating alternatives to significantly increase third party sugar cane availability for the Ethanol Plant.
Industrial Operations
One of the Company's key objectives is to continue improving the operating efficiency of the Ethanol Plant in order to maximise the production of ethanol and minimise plant downtime related to unplanned maintenance activities. The annual planned shutdown occurred during the first quarter of 2014.
A second shut down of the ethanol plant, for a period of approximately 12 weeks, started on 12 August 2014, and was necessary as the sugar cane crop has not yet reached the age where it is suitable for harvesting.
The Ethanol Plant produced an aggregate amount of approximately 24,064 cubic metres (approximately 6.4 million gallons) of fuel-grade ethanol during the first half of 2014, resulting in an average ethanol yield during the first half of 2014 of approximately 76.1 litres (approximately 20.1 gallons) per net tonne of sugar cane processed. This volume was less than originally expected mainly due to lower total recoverable sugars (TRS) in the Company's sugar cane.
The power generation facilities of the Ethanol Plant are currently supplying most of the electrical energy required for Maple's agricultural and industrial operations, and any "excess" electricity is being sold to the national power grid. Currently, when the Ethanol Plant is not undergoing maintenance activities, Maple is producing approximately 15 MW of electric power to cover the Company's ethanol business' industrial and agriculture operations demand.
Sales and Marketing
Under the Company's existing sales and distribution agreement with Mitsui & Co. Ltd ("Mitsui"), Maple has sold an aggregate volume of approximately 23,241 cubic metres (approximately 6.1 million gallons) of fuel-grade ethanol to Mitsui as of 30 June 2014 for export markets. In addition to the sales to Mitsui, Maple sold a total of approximately 662 cubic metres (approximately 0.175 million gallons) of ethanol to domestic and regional markets during the same period.
The marketing strategy for the Company is now focused on diversification by offering new products such as carburant ethanol in the Peruvian domestic market. The Company is expecting to be able to sell carburant ethanol in the Peruvian market starting Q4 of 2014 in order to improve sales margins.
Hydrocarbon Production, Refining, and Marketing Business
During the first half of 2014, refinery feedstock averaged approximately 1,742 bpd, consisting of natural gasolines supplied by Aguaytia Energy, crude oil from Maple's oilfields and purchased crude from Cepsa's new oil discovery test. The average daily sales of refined products were 1,555 bpd. Crude oil production from the Company's oilfields was approximately 415 bpd as of June 2014.
Maple's goal is to maximise its cash flow from hydrocarbon operations through the continued optimisation of its hydrocarbon production, refining, and marketing activities and the continued close management and monitoring of operating costs. The Company believes that recent oil discoveries nearby its operations in the Peruvian jungle pose an important opportunity to obtain additional revenues through oil logistic services (oil loading and storage) and also the possibility to increase refinery feedstock and utilization sometime in the future.
As part of its capital expenditure programme for this year, Maple plans to perform well workovers on 6 wells at the Agua Caliente oilfield and 6 wells at the Maquia oilfield. The objective of these workovers is to offset at least a portion of the normal production decline in these two mature oilfields. These works are expected to be completed by the end of the year.
Financing Activities
The Group is still in the process of seeking a strategic equity investment ("the Key Financing Transaction") to secure the sustainability of its ethanol business.
In April 2014, the Company successfully negotiated a US$15 million short term loan to improve the working capital position of the ethanol business with some of its current Senior Lenders. In addition, due to the lower than expected performance of the Company's ethanol business and current adverse ethanol pricing conditions, the Company has also been seeking additional equity investment in order to secure the sustainability of the ethanol business. In the first quarter of 2014, the Company retained Itau BBA, one of the largest financial institutions in Latin America to assist the Company in this process. The Company has been progressing with this and other initiatives and is seeking to close a transaction in this regard; however, there can be no guarantee that a transaction with a strategic or financial investor can be reached on terms acceptable to the Company, or at all.
In the meantime the Company is continuing to work closely with the Senior Lenders of Maple's ethanol business in order to maintain sufficient working capital and waive certain obligations under the Senior Loan Agreements until new funding is available or an alternative transaction is undertaken. The continued working capital support from the Seniors Lenders will be critical in the coming months.
Going Concern
The Group has prepared forecasts and cash flow projections which take into account reasonably possible changes in the timing of cash inflows and funding, but which assume that it will successfully secure the strategic investment on a timely basis. These projections have been prepared in detail through to 31 December 2015 and support the conclusion of the Directors that assuming the completion of the Key Financing Transaction on a timely basis, the Group and the Company will be able to operate as a going concern within the level of its current resources.
The cash flow projections are dependent on the Group successfully completing the Key Financing Transaction by November 2014 and substantially achieving its forecasted EBITDA, in particular, the forecasted EBITDA in respect of the Ethanol business unit. The cash flow projections also take into account a successful restructuring of the senior long term debt repayment terms for the ethanol business.
The Directors believe that the Group's cash flow and profit forecasts represent the Group's best estimate of the actual results over the forecast period at the date of approval of the financial statements. The Directors have concluded that the completion of the planned equity or investment financing transaction, the future price of ethanol and the availability of sufficient feedstock for the ethanol plant represent material uncertainties that may cast significant doubt about the Group and the Company's ability to continue as a going concern.
These financial statements do not include any adjustments to the carrying amount or classification of assets and liabilities that would result if the Group or Company was unable to continue as a going concern.
Material Factors Affecting Operating Results
The Company's hydrocarbon operations are primarily conducted through Maple Gas. Maple Gas' performance has historically been materially affected by a number of factors, including (i) the international price of oil, (ii) volumes of hydrocarbons produced by Maple Gas and Aguaytia Energy and delivered as feedstock to the Pucallpa refinery, and (iii) the level of total operating and administrative costs.
The Company's ethanol operations are primarily conducted through Maple Etanol and Maple Biocombustibles (collectively "Maple Ethanol"). Maple Ethanol's performance is materially impacted by certain factors, including (i) the international and local price of ethanol, (ii) volumes and quality of sugar cane produced by Maple Etanol and delivered as feedstock to the Ethanol Plant, (iii) ethanol yield per net tonne of sugar cane processed, (iv) weather conditions, (v) the prices of fertilizer and fuel for harvesting operations, (vi) the level of total operating and administrative costs, and (vii) the operating efficiency of the Ethanol Plant which is affected by a number of factors including the level of unplanned maintenance.
The results of operations and prospects of the Company depend on numerous factors beyond its control. As a result, if any of these factors become worse than expected or projected, such change may materially and adversely affect the Company's future business, financial condition, results of operations, liquidity, or ability to finance planned capital expenditures.
Set forth below is a brief description of each of these factors and its impact on Maple's results of operations as of 30 June 2014.
Commodity Prices
The international price of crude oil impacts the market prices in Peru and therefore the price for which Maple sells its refined hydrocarbon products. As a result, increases or decreases in the international price of oil and other commodities can materially impact Maple's overall revenues. The international price of West Texas Intermediate crude oil slightly decreased from US$94.2 per barrel during 2013 to US$94.0 per barrel as of 30 June 2014. Maple generated an average of US$34.46 of gross profit per barrel of refined product sold as of 30 June, 2014 compared with an average of US$34.25 for the same period in 2013.
The international price of ethanol impacts the market prices in Peru and therefore impacts the price Maple sells its ethanol both locally and internationally. As a result, increases or decreases in the international price of ethanol can materially impact Maple's financial performance. The average ethanol sales price received by Maple FOB Paita has been US$2.09 per gallon during the first 6 month period ended 30 June, 2014 (vs US$2.76 per gallon during the same period in 2013).
Refinery Feedstock
Maple's primary source of revenues as of 30 June 2014 was derived from its sales of hydrocarbons and refined products produced and sold from the Pucallpa refinery. The volume of refined products that the Pucallpa refinery is able to produce and sell to customers impacts the Company's cash flow and results of operations. The Pucallpa refinery's ability to produce refined products is directly impacted by the volume of feedstock that is delivered to the facility for refining. Since Maple and Aguaytia Energy currently provide all of the feedstock for the Pucallpa refinery, a decrease in the volumes of this feedstock due to declining production levels, or otherwise, could have a material adverse impact on the Company's results of operations.
Total refinery feedstock volumes delivered to the Pucallpa refinery decreased from an average of 1,832 bpd as of 30 June 2013 to an average of 1,742 bpd for the same period in 2014. The decrease in feedstock was largely a result of lower production volumes of natural gasolines produced by Aguaytia Energy. If Maple is unable to increase the volume of feedstock from its own internal production activities, or if the refinery is unable to source additional feedstock from third parties, including Aguaytia Energy, the total volume of refined products produced and sold will decline, which could materially impact future results of operations of its hydrocarbon production, refining, and marketing business.
Ethanol Plant Feedstock and Operating Efficiency
The volume of ethanol that Maple is able to produce from the Ethanol Plant and sell to customers impacts its cash flow and results of operations. The Ethanol Plant's ability to produce ethanol is directly impacted by the volume and sugar content of the harvested cane that is delivered to the facility as well as the efficiency of the Ethanol Plant. Maple currently provides almost all of the feedstock for the Ethanol Plant from its sugar cane plantation, and a decrease in the volumes or sugar content of this feedstock can have a material adverse impact on the Company's results of operations, as occurred during the last year. The efficiency of the Ethanol Plant is affected by the capacity utilisation of the plant, which is primarily determined by both the delivery of sugar cane as well as the availability of the plant to process sugar cane and produce ethanol. Plant availability is impacted by various factors including planned and unplanned maintenance activities, and changes in the harvesting schedule.
Cost of Sales
Cost of sales for Maple Gas for the six months ended 30 June 2014 was US$26.0 million compared to US$31.4 million for the same period in 2013. The most significant factor decreasing Maple Gas's cost of sales in 2014 is related to the lower volume of barrels sold.
Maple Ethanol's lower cost of sales for the six months ended 30 June 2014 was US$19.8 million, compared to US$21.4 for the same period in 2013, mainly due to lower harvesting and agriculture costs as less tons of cane were harvested, and reduced maintenance expenses.
Administrative Expenses
Administrative expenses decreased to US$11.4 million for the six months ended 30 June 2014 compared to US$15.3 million during the first half of 2013. The decrease in administrative expenses can primarily be attributed to the savings reflected in 2014.
The Company employed through its subsidiaries 859 employees as of 30 June 2014 compared to 913 on 30 June 2013. The lower headcount is due to lower agriculture and administrative personnel in Maple Ethanol as a result of headcount reduction and hiring restrictions.
Non-Operating Results
Finance costs decreased from US$9.1 million for the six months ended 30 June 2013 to US$8.7 million for the six months ended 30 June 2014. This decrease was primarily as a result of lower interest rates of new financing in place since August 2013.
Forward-Looking Statements
Except for the historical information contained in this interim report, statements contained in this document, particularly those regarding possible, projected, or assumed future performance and results, including growth outlook, forecasted economics, operations, production, contracting, costs, prices, earnings, returns and potential growth, are or may include forward-looking statements. Such statements relate to future events and expectations and as such involve known and unknown risks and uncertainties. These risks and uncertainties include, among other things, market conditions, the price of hydrocarbons and ethanol, weather risks, economic and political risks. Forward-looking statements are not guarantees of future performance or an assurance that Maple's current assumptions and projections are valid. Actual results, actions, and developments may differ materially from those expressed or implied by those forward-looking statements depending on a variety of factors. Furthermore, any forward-looking statements presented are expressed in good faith and are believed to have a reasonable basis as of the date of this interim report for the six months ended 30 June 2014. These forward-looking statements speak only as at the date of this Interim Report, and Maple Energy plc does not assume any obligation to update any forward-looking statements contained herein, whether as a result of new information, future events, or otherwise.
CONSOLIDATED INCOME STATEMENT
for the six months ended 30 June 2014
For the For the
six months six months
ended 30 ended 30
June 2014 June 2013
US$'000 US$'000
Unaudited Unaudited
Continuing operations
Revenue 49,390 71,564
Cost of sales (45,726) (52,718)
____________ ____________
Gross profit 3,664 18,846
____________ ____________
Other operating income - 1,043
Administrative expenses (11,448) (15,292)
Selling and distribution costs (2,420) (2,956)
Employee termination costs - -
Impairment of exploration expenses - -
____________ ____________
Total operating expenses (13,868) (17,205)
____________ ____________
Operating income/ (loss) (10,204) 1,641
Finance revenue 6 7
Finance costs (8,741) (9,084)
____________ ____________
Loss before tax (18,939) (7,436)
Income tax (charge)/credit (1,546) (1,135)
____________ ____________
Loss for the year (20,485) (8,571)
========== ==========
Loss attributable to:
Equity holders of the parent (19,570) (8,210)
Non-controlling interests (915) (361)
____________ ____________
(20,485) (8,571)
========== ==========
Loss per share US$ US$
Basic loss per share attributable (cent) (cent)
to ordinary equity holders of the
parent
(11.92)
(5.09)
========== ==========
Diluted loss per share attributable
to ordinary equity holders of the
parent (11.92) (5.09)
========== ==========
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 June 2014
For the For the
six months six months
ended 30 ended 30
June 2014 June 2013
US$'000 US$'000
Unaudited Unaudited
Loss for the year (20,485) (8,571)
____________ ____________
Total comprehensive expense for the
year, net of tax (20,485) (8,571)
========= =========
Attributable to:
Equity holders of the parent (19,570) (8,210)
Non-controlling interests (915) (361)
____________ ____________
(20,485) (8,571)
========= =========
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2014
30 June 31 Dec 2013 30 June 2013
2014 US$'000 US$'000
ASSETS US$'000 Audited Unaudited
Non current assets Unaudited
Property, plant and equipment 204,048 209,153 214,063
Other intangible assets 61,706 63,411 65,256
Value-added tax recoverable 8,083 8,083 -
Biological asset 1,285 3,685 21,699
____________ ___________ ____________
275,122 284,332 301,018
___________ __________ __________
Current assets
Income tax recoverable 583 563 501
Prepayments and other assets 8,525 7,830 17,807
Inventories 15,919 13,458 14,405
Trade and other receivables 8,832 7,913 8,630
Cash and cash equivalents 4,268 4,288 4,999
Restricted cash 7,771 7,754 12,513
____________ ___________ ____________
45,898 41,806 58,855
_______ _______ _______
TOTAL ASSETS 321,020 326,138 359,873
========= ========= =========
EQUITY AND LIABILITIES
Equity attributable to equity
holders of the parent
Issued capital 1,641 1,641 1,641
Share premium 141,544 141,544 141,543
Other reserves 5,147 5,058 4,455
Merger reserve 42,647 42,647 42,647
Retained loss (141,047) (121,477) (70,441)
____________ ___________ ____________
49,932 69,413 119,845
Non-controlling interest 3,786 4,701 7,740
____________ ___________ ____________
Total equity 53,718 74,114 127,585
____________ ___________ ____________
Non-current liabilities
Preferred shares 21,266 19,792 18,420
Long-term debt 149,555 155,136 129,007
Other non-current liabilities 2,581 2,322 89
Provisions 1,488 1,375 1,326
Deferred income tax liability 7,321 7,454 5,907
___________ __________ ___________
182,211 186,079 154,749
___________ ______ ___________
Current liabilities
Current portion of long-term
debt 12,102 11,388 20,815
Trade and other payables 19,799 18,746 17,406
Bank loans 33,820 13,511 14,000
Other current liabilities 19,370 22,300 25,318
___________ ___________ ___________
85,091 65,945 77,539
___________ ___________ ___________
TOTAL LIABILITIES 267,302 252,024 232,288
___________ ___________ ___________
TOTAL EQUITY AND LIABILITIES 321,020 326,138 359,873
========= ========= =========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2014
Attributable to equity holders of the parent
_________________________________________________________________________________________________________
Number Issued Share Other Merger Retained Non-controlling Total
of capital premium reserves reserve loss Total interest equity
Ordinary US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Shares
At 1 January
2014 164,137,551 1,641 141,544 5,058 42,647 (121,477) 69,413 4,701 74,114
Profit /
(Loss) for
the
period - - - - - (19,570) (19,570) (915) (20,485)
Other - - - - - - - - -
comprehensive
income
/ (loss)
_____________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________
Total
comprehensive
income
/ (loss) - - - - - (19,570) (19,570) (915) (20,485)
Issue of share _ _ _ _ _ _ _
capital _ _
Transaction _ _ _ _ _ _ _ _ _
costs on issue
of share
capital
Share-based
payment -
employees _ _ _ 89 - - 89 _ 89
_____________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________
At 30 June
2014
(unaudited) 164,137,551 1,641 141,544 5,147 42,647 (141,047) 49,932 3,786 53,718
============ ========== ========== ========== ========== ========== ========== ========== ==========
At 1 January
2013 149,215,956 1,492 128,784 4,274 42,647 (62,230) 114,967 8,101 123,068
Profit /
(Loss) for
the
period
Other
comprehensive
income - - - - - (8,210) (8,210) (361) (8,571)
/ (loss) - - - - - - - - -
_____________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________
Total
comprehensive
profit/(loss) - - - - - (8,210) (8,210) (361) (8,571)
Issue of share
capital 14,921,595 149 14,227 _ _ _ 14,376 _ 14,376
Transaction
costs on
issue
of share
capital _ _ (1,468) _ _ _ (1,468) _ (1,468)
Share-based
payment -
employees - - - 181 - - 181 - 181
_____________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________
At 30 June
2013
(unaudited) 164,137,551 1,641 141,543 4,455 42,647 (70,440) 119,846 7,740 127,586
============ ========== ========== ========== ========== ========== ========== ========== ==========
CONSOLIDATED STATEMENT OF CASH FLOWS
for the six months ended 30 June 2014
For the six For the six
months ended months ended
30 June 2014 30 June 2013
US$'000 US$'000
Unaudited Unaudited
Operating activities
Collection from customers 48,430 66,654
Payments to suppliers and third parties (40,693) (47,056)
Payments to employees (9,750) (11,015)
Interest paid (8,288) (8,887)
Income tax paid (1,164) (572)
_______ _______
Net cash provided by operating activities (11,465) (876)
_______ _______
Investing activities
Purchase of property, plant and equipment (1,311) (1,816)
Additions of exploration and other intangible
assets (10) (55)
Additions of biological assets, net (2,603) (1,116)
Increase in restricted cash, net (17) (9,800)
Interest received 6 7
_______ _______
Net cash used in investing activities (3,935) (12,780)
_______ _______
Financing activities
Proceeds from issue of share capital - 12,908
Proceeds/(payments) of long-term debt,
net (4,867) (3,458)
Proceeds/(payments) of bank loans, net 20,309 2,000
_______ _______
Net cash provided by financing activities 15,442 11,450
_______ _______
Net increase/(decrease) in cash and
cash equivalents 42 (2,206)
Net foreign exchange difference (62) (50)
Cash and cash equivalents at beginning
of year 4,288 7,255
_______ _______
Cash and cash equivalents at 30 June 4,268 4,999
========= =========
1. BASIS OF PREPARATION
The interim condensed unaudited consolidated financial statements for the six months ended 30 June 2014 have been prepared in accordance with IAS 34 Interim Financial Reporting ("IAS 34"). The interim condensed consolidated financial information is presented in US dollars, and all values are rounded to the nearest thousand (US$'000), except where otherwise indicated.
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 consolidated financial statements as at 31 December 2013.
2. CORPORATE INFORMATION
The interim condensed consolidated financial statements for the six months ended 30 June 2014 were authorised for issue in accordance with a resolution of the directors on 29 September 2014.
Maple Energy plc ("the Company") was incorporated in the Republic of Ireland on 18 October 2006. On 12 February 2007, the Company re-registered as a public limited company. The Company is domiciled in the Republic of Ireland.
Prior to 30 November 2006, the group of companies (the "Maple Group"), which now form the consolidated financial statements of Maple Energy plc and its subsidiaries (collectively, "Maple" or the "Group"), was organised as two separate groups of companies under common control: The Maple Companies, Limited ("MCL") and The Maple Gas Corporation del Perú Ltd. ("Maple BVI"), both companies registered in the British Virgin Islands. Effective 30 November 2006, a series of transactions were undertaken whereby these entities were re-organised such that MCL acquired Maple BVI and its related entities. MCL also acquired various non-controlling interests. This business combination was accounted for using the purchase method of accounting.
On 7 February 2007, the Company entered into a share exchange agreement (the "Share Exchange Agreement") with the shareholders of MCL, whereby in return for the issuance of 48,581,113 Ordinary Shares of US$0.01 each, the Company acquired 1,619,371 shares of US$0.01 each of MCL, representing its entire issued shared capital at that time, and became the ultimate holding company of the Maple Group. This group re-organisation was accounted for using the pooling of interests method. The purpose of this re-organisation was to implement a more efficient group structure to facilitate the raising of capital on the Alternative Investment Market ("AIM") of the London Stock Exchange.
3. GOING CONCERN
The Group has prepared forecasts and cash flow projections which take into account reasonably possible changes in the timing of cash inflows and funding, but which assume that it will successfully secure the strategic investment on a timely basis. These projections have been prepared in detail through to 31 December 2015 and support the conclusion of the Directors that assuming the completion of the Key Financing Transaction on a timely basis, the Group and the Company will be able to operate as a going concern within the level of its current resources.
The cash flow projections are dependent on the Group successfully completing the Key Financing Transaction by November of 2014 and substantially achieving its forecasted EBITDA, in particular, the forecasted EBITDA in respect of the Ethanol business unit. The cash flow projections also take accounts a successful restructuring of the senior long term debt repayment terms for the ethanol business.
The Directors believe that the Group's cash flow and profit forecasts represent the Group's best estimate of the actual results over the forecast period at the date of approval of the financial statements. The Directors have concluded that the completion of the planned equity financing or investment transaction, the future price of ethanol and the availability of sufficient feedstock for the ethanol plant represent material uncertainties that may cast significant doubt about the Group and the Company's ability to continue as a going concern.
These financial statements do not include any adjustments to the carrying amount or classification of assets and liabilities that would result if the Group or Company was unable to continue as a going concern.
4. ACCOUNTING POLICIES
IFRS and IFRIC Interpretations adopted during the financial year
The accounting policies adopted are consistent with those of the previous financial year, except for the following amendment to IFRS effective as of 1 January 2014:
IFRS 10 Consolidated Financial Statements and IAS 27 Separate Financial Statements
IFRS 10 replaces the portion of IAS 27 Consolidated and Separate Financial Statements that addresses the accounting for consolidated financial statements. It also addresses the issues covered in SIC-12 Consolidation - Special Purpose Entities. IFRS 10 establishes a single control model that applies to all entities including structured entities (previously referred to as special purpose entities).
The changes introduced by IFRS 10 will require management to exercise significant judgement to determine which entities are controlled and therefore are required to be consolidated by a parent, compared with the requirements that were in IAS 27. The application of IFRS 10 and IAS 27 is not expected to impact the Group's accounting for its interests in subsidiaries.
IFRS 12 Disclosure of Interests in Other Entities
IFRS 12 sets out the requirements for disclosures relating to an entity's interests in subsidiaries, joint arrangements, associates and structured entities. The requirements in IFRS 12 are more comprehensive than the previously existing disclosure requirements for such investments, but are not expected to impact on the Group's financial position or performance.
IFRIC Interpretation 21 Levies (IFRIC 21)
IFRIC 21 clarifies that an entity recognises a liability for a levy when the activity that triggers payment, as identified by the relevant legislation, occurs. For a levy that is triggered upon reaching a minimum threshold, the interpretation clarifies that no liability should be anticipated before the specified minimum threshold is reached. IFRIC 21 is effective for annual periods beginning on or after 1 January 2014. The adoption of IFRIC 21 may have an impact on the Group's accounting for production and similar taxes, which do not meet the definition of an income tax in IAS 12. However, the Group is still assessing and quantifying the effect.
The standards and interpretations addressed below are not currently envisaged to have a material impact on the Group's Consolidated Financial Statements.
- Defined benefit plans: Employee contributions (Amendments to IAS 19)
- IAS 32 Offsetting Financial Assets and Financial Liabilities - Amendments to IAS 32
- Recoverable Amount Disclosures for Non-Financial Assets - Amendments to IAS 36 Impairment of Assets
- IAS 39 Novation of Derivatives and Continuation of Hedge Accounting - Amendments to IAS 39
- IFRS 11 Joint Arrangements and IAS 28 Investment in Associates and Joint Ventures
- IFRS 14 Regulatory Deferral Accounts
- Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27)
- Annual Improvements to IFRSs - 2010-2012
- Annual Improvements to IFRSs - 2011-2013
There are no other standards and interpretations in issue but not yet adopted that the directors anticipate will have a material effect on the reported income or net assets of the Group.
5. SEASONALITY
The Group operates continuously without major fluctuations due to seasonality.
6. SEGMENT INFORMATION
Operating segments
For management purposes, the Group is organised into business units for which it may earn revenues and incur expenses and has three operating segments as follows:
- Ethanol
- Exploration, Production, and Marketing
- Other and Corporate
The Chief Operating Decision Maker (hereinafter "CODM") of Maple reviews the information of these segments on an individual basis. Ethanol is managed through Maple Etanol S.R.L. and Maple Biocombustibles S.R.L. which are separate entities, information for which is reviewed by the CODM together. Exploration, Production, and Marketing are managed through Maple Gas Corporation del Peru S.R.L. ("Maple Gas") and Acer Comercial S.R.L. ("Acer"), both separate entities, information for which is reviewed by the CODM together. The other segment includes investment holding companies.
Reportable segments
The Group considers that the operating segments and the Reportable Segments in the financial statements are the same. For the operating segments mentioned above, Maple presents the following information in accordance with IFRS 8:
-- Segment Revenue: the Group only includes revenues that are directly attributed to a specific segment together with the relevant portion of revenue that can be allocated to it on a reasonable basis.
-- Segment Result: The Group includes operating income/(loss) resulting from the operating activities of the specific segments. Finance revenue, finance costs, and income tax expenses are also included in the specific operating segment.
-- Segment Assets: Management includes all assets used in the operating activities of the specific segment including property, plant, and equipment, and intangible assets. Goodwill is presented in a separate line of the corresponding segment.
-- Segment Liabilities: Management includes all liabilities incurred in the operating activities of the specific segment.
Exploration,
production, Other Adjustments Total
and marketing Ethanol and corporate and eliminations Group
US$'000 US$'000 US$'000 US$'000 US$'000
Year ended 30 June
2014 (unaudited)
Revenue
Sales to local external
customers 35,612 1,030 - - 36,642
Sales to foreign
external customers - 12,748 - - 12,748
Inter-segment sales 21 - - (21) -
____________ ____________ ____________ ____________ ____________
35,633 13,778 - (51) 49,390
Results
Operating income/(loss) 2,054 (11,427) (693) (138) (10,204)
Finance revenue 5 1 - - 6
Finance costs (1,052) (6,157) (1,532) - (8,741)
____________ ____________ ____________ ____________ ____________
-
Profit/(loss) before
tax from continuing
operations 1,007 (17,583) (2,225) (138) (18,939)
____________ ____________ ____________ ____________ ____________
-
Income tax charge (1,277) (269) - - (1,546)
____________ ____________ ____________ ____________ ____________
Loss for the year
from continuing operations (270) (17,852) (2,225) (138) (20,485)
____________ ____________ ____________ ____________ ____________
Assets and liabilities
Assets 55,769 297,440 60,661 (102,807) 311,063
Goodwill 9,957 - - - 9,957
____________ ____________ ____________ ____________ ____________
At 30 June 2014 65,726 297,440 60,661 (102,807) 321,020
____________ ____________ ____________ ____________ ____________
Liabilities 47,367 234,681 93,600 (108,346) 267,302
____________ ____________ ____________ ____________ ____________
Other Information
Capital expenditures
Property, plant,
and equipment 548 765 - - 1,313
Impairment of exploration - - - - -
and evaluation assets
Depreciation 678 5,677 - - 6,355
Amortisation 996 718 - - 1,714
____________ ____________ ____________ ____________ ____________
Other non-cash expenses
Share-based payments 29 18 42 - 89
1. Inter-segment revenues are eliminated on consolidation.
2. Inter-segment loans are eliminated on consolidation.
Exploration,
production, Other Adjustments Total
and marketing Ethanol and corporate and eliminations Group
US$'000 US$'000 US$'000 US$'000 US$'000
Year ended 30 June
2013 (unaudited)
Revenue
Sales to local external
customers 42,837 2,249 - - 45,086
Sales to foreign external
customers - 26,478 - - 26,478
Inter-segment sales 120 - - (120) -
____________ ____________ ____________ ____________ ____________
42,957 28,727 - (120) 71,564
Results
Operating income/(loss) 1,845 1,004 (1,208) - 1,641
Finance revenue 6 1 - - 7
Finance costs (392) (6,969) (1,723) - (9,084)
____________ ____________ ____________ ____________ ____________
-
Profit/(loss) before
tax from continuing
operations 1,459 (5,964) (2,931) - (7,436)
____________ ____________ ____________ ____________ ____________
-
Income tax credit (1,583) 448 - - (1,135)
____________ ____________ ____________ ____________ ____________
Profit/(loss) from
continuing operations (124) (5,516) (2,931) - (8,571)
____________ ____________ ____________ ____________ ____________
Assets and liabilities
Assets 72,047 312,498 108,362 (142,991) 349,916
Goodwill 9,957 - - - 9,957
____________ ____________ ____________ ____________ ____________
At 30 June 2013 82,004 312,498 108,362 (142,991) 359,873
____________ ____________ ____________ ____________ ____________
Liabilities 27,251 195,886 98,912 (89,761) 232,288
____________ ____________ ____________ ____________ ____________
Other information
Capital expenditures
Intangible assets - 54 - - 54
Property, plant, and
equipment 68 3,058 - - 3,126
____________ ____________ ____________ ____________ ____________
68 3,112 - - 3,180
____________ ____________ ____________ ____________ ____________
Impairment of exploration
and evaluation assets - - - - -
Depreciation 754 5,404 136 - 6,294
Amortisation 5 595 1,059 - 1,659
____________ ____________ ____________ ____________ ____________
Other non-cash expenses
Share-based payments 36 39 106 - 181
1. Inter-segment revenues are eliminated on consolidation.
2. Inter-segment interest is eliminated on consolidation.
Geographical information
Revenues from external customers
External customers are located in Peru and other international locations. Revenue from one customer amounted to US$10,153,000 (June 2013: US$11,254,000) arising from sales by the exploration and oil production segment and revenue from another single customer amounted to US$13,056,000 (June 2013: US$26,478,000) arising from sales by the ethanol segment.
Non-current assets
Non-current assets are allocated based on where the assets are located:
30 June 30 June
2014 2013
US$'000 US$'000
Peru 271,283 297,028
British Virgin Islands 3,839 3,990
_________ _________
275,122 301,018
========== ==========
Non-current assets for this purpose consist of property, plant, and equipment, other intangible assets, exploration and evaluation assets, and biological assets.
7. IMPAIRMENT
Goodwill
Goodwill is tested for impairment annually (as at 31 December), and when circumstances indicate the carrying value may be impaired. The Group's impairment test for goodwill and intangible assets with indefinite lives is based on value in use calculations that use a discounted cash flow model. The key assumptions used to determine the recoverable amount for the hydrocarbon production and marketing cash generating unit were discussed in the annual financial statements for the year ended 31 December 2013.
As of 30 June 2014, goodwill arising on business combinations of US$9,957,000 has been allocated to the hydrocarbon production and marketing cash generating unit.
Product prices for 2014 are derived from forward price curves ("FW") at year-end 2013. Prices for 2015 and beyond are forward WTI-prices as of July 2014. The Group's oil price assumption is an average of US$94.7 per barrel in 2014, US$95.8 per barrel in 2015, US$91.9 per barrel in 2016, US$88.8 per barrel in 2017, and US$87.6 per barrel in 2018, US$87.3 per barrel in 2019, and US$90.3 per barrel in 2020 and beyond.
Management performed an impairment calculation as at 30 June 2014 by updating the oil price assumption, among other variables. As a result, management did not identify an impairment for this cash generating unit to which a goodwill of US$9,957,000 is allocated.
Ethanol
Since there may be evidence of a possible impairment in the Ethanol assets, an evaluation was made based on the fair value less cost to sell model, in accordance to IAS 36 requirement. As per the calculation, management did not identify an impairment as of 30 June 2014.
8. INCOME TAX (a) Income tax regulations
The Company is subject to Irish tax regulations. Subsidiaries incorporated in the British Virgin Islands are not subject to income tax. Peruvian subsidiaries of the Company are subject to the Peruvian Tax System.
Corporation tax in Ireland is 12.5% on trading activities and 25% on non-trading activities. Exploitation activities of hydrocarbons in Blocks 31-B and 31-D are subject to the Peruvian tax regulations in force as of 30 March 1994 (30%). Exploitation and Exploration activities in Block 31-E are subject to the Peruvian tax regulations in force as at 6 March 2001 (22%). Refining and commercial activities of hydrocarbons are subject to the current Peruvian tax regime (30%). Agriculture and industrial activities of ethanol operations are subject to the current Peruvian tax regime (15% and 30%, respectively).
(b) Income tax expense
30 June 30 June
2014 2013
US$'000 US$'000
Income tax charge/(credit)
- Current 1,678 1,714
- Deferred (132) (579)
__________ __________
1,546 1,135
======== ========
9. LOSS PER SHARE
Basic loss per share amounts are calculated by dividing net loss for the first half of the year attributable to equity holders of the parent by the weighted average number of Ordinary Shares outstanding during that period. Diluted earnings per share amounts are calculated by dividing the net profit for the first half of the year attributable to ordinary equity holders of the parent by the weighted average number of Ordinary Shares outstanding during that period plus the weighted average number of Ordinary Shares that would be issued on the conversion of all the dilutive potential Ordinary Shares into Ordinary Shares.
The following reflects the loss and share data used in the basic and diluted loss per share computations:
30 June 30 June
2014 2013
Numerator US$'000 US$'000
Net loss attributable to equity holders of the
parent
for basic and diluted earnings (19,570) (8,210)
D
30 June 30 June
2014 2013
Denominator Number Number
Weighted average number of ordinary shares for
basic earnings per share 164,137,551 161,252,160
Effect of dilutive potential ordinary shares - -
(i) - (iv)
______________ _______________
Weighted average number of ordinary shares for
diluted loss per share 164,137,551 161,252,160
______________ _______________
US dollar US dollar
(cent) (cent)
Basic loss per share attributable to ordinary
equity holders of the parent (11.92) (5.09)
______________ _______________
Diluted loss per share attributable to ordinary
equity holders of the parent (11.92) (5.09)
______________ _______________
The Company has instruments in issue that could potentially dilute basic earnings per share in the future, and are included / excluded in the calculation for the reasons outlined below:
Ordinary Shares
(i) Stock Option Agreement with Fondo de Inversion en Infraestructura, Servicios Publicos y Recursos Naturales ("ACC") - The Company granted ACC options to receive 7,786,560 Ordinary Shares of US$0.01 each in exchange for the 259,552 shares ACC holds in the equity of MCL, a subsidiary of the Company. These potential Ordinary Shares were anti-dilutive for the six months ended 30 June 2013 and 2014 due to the loss incurred for both years;
(ii) Investment Agreement with ACC - If a subsidiary of the Company has to make tax payments in connection with certain potential tax claims for the tax years 2001, 2002, and 2003, the Company shall compensate ACC by one of the following, as selected by the Company, after consultation with ACC: (i) make a payment equal to 10.989% of the amount of the payment ("Pro Rata Tax Claim Amount"); or (ii) an amount in shares of MCL that is equivalent to the number of shares of the Company having a then market value equal to the Pro Rata Tax Claim Amount. As the status of the contingency remained unsatisfied at 30 June 2014 and 30 June 2013, the contingently issuable Ordinary Shares are not included in the calculation of diluted loss per share for the six months ended 30 June 2014 and 2013; and
(iii) Employee Stock Options - Total number of shares related to the outstanding options that could potentially dilute basic earnings per share in the future. These potential Ordinary Shares were anti-dilutive for the six months ended at 30 June 2014 and 2013.
Preferred Shares
(iv) Stock Option Agreement with ACC - The Company granted ACC options to receive Ordinary Shares of US$0.01 each in exchange for the 456,871 Class B convertible preferred shares ACC holds of MCL, a subsidiary of the Company. The Class B Shares are non-voting and hold certain rights to cash flow and dividends of MCL and are convertible into ordinary shares of Maple Energy plc at a conversion rate of 30 to 1 at ACC's discretion (or 20.7 to 1, at ACC's discretion once ACC has achieved a certain internal rate of return). The potential issue of Ordinary Shares is not included in the calculation of diluted loss per share as the effect would be anti-dilutive at 30 June 2014.
10. PROPERTY, PLANT AND EQUIPMENT
Acquisitions and disposals
During the six months ended 30 June 2014, the Group acquired assets with a cost of US$1,313,000. The additions are primarily related to the Ethanol business.
11. BIOLOGICAL ASSETS
The Company measures the plantation of sugar cane at its fair value. The fair value is calculated using the estimated expected net cash flows and the cost related to these activities, according to IAS 41-Biological Assets. As of 30 June 2014, the fair value of the Company's biological assets was estimated at US$1,284,552 resulting in a downward adjustment of US$3,773,000.
12. CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
(a) Cash and cash equivalents
30 June 30 June
2014 2013
US$'000 US$'000
Cash at bank and in hand 3,927 4,696
Trust fund accounts (see (b) below) 240 258
Time deposits 101 45
___________ ___________
4,268 4,999
========== ==========
(b) Restricted cash
30 June 30 June
2014 2013
US$'000 US$'000
Restricted cash 7,871 12,770
Restricted cash included in cash and cash
equivalents (100) (258)
___________ ___________
7,771 12,513
========== ==========
At 30 June 2014, an amount of US$100,000 (30 June 2013: US$258,000) is not available to the Group for general use, but exclusively for the purpose of the Ethanol Operations. This amount has been presented in the trust fund account as cash and cash equivalents above because it is available for this purpose.
13. SHARED BASED PAYMENTS
The expense recognised for employee services during the first half of 2014 is US$89,000 (US$181,000 during the
first half of 2013).
14. COMMITMENTS AND CONTINGENCIES
Refer to Note 26 of the annual consolidated financial statements as at 31 December 2013 for details of the Group's commitments and contingencies.
15. SUBSEQUENT EVENTS
Board Changes
On 8 September 2014, the Company announced the resignation of Mr. Tony L. Hines from his position as executive director and officer of the Company and the resignation of Mr. Ricardo Vega Llona from his position as non-executive director of the Company with effect from September 4, 2014.
Mr. Hines will continue to serve as General Manager of Maple Gas Corporation del Perú S.R.L. and Mr. Vega Llona will continue to serve as director of The Maple Companies, Limited, both of which are subsidiaries of Maple. Mr. Vega Llona will also remain active with the Company's board as an observer.
The Company also announced that Mr. Michel Meeùs and Mr. Gerardo Sepúlveda have been appointed to serve as directors on the Company's Board with effect from 4 September 2014. Mr. Meeùs and Mr. Sepúlveda will serve as non-executive directors.
16. STATUTORY ACCOUNTS
This half year report does not constitute statutory accounts, copies of which are required to be annexed to the annual return.
17. BOARD APPROVAL
The Board of Directors approved and authorised for issue the unaudited interim consolidated financial statements in respect of the six months ended 30 June 2014 on 29 September 2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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