We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register to chat with like-minded investors on our interactive forums.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Rurelec Plc | LSE:RUR | London | Ordinary Share | GB00B01XPW41 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.425 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Electric Services | 0 | -2.24M | -0.0040 | -1.05 | 2.36M |
From Apr 2019 to Apr 2024
TIDMRUR
RNS Number : 0238C
Rurelec PLC
26 September 2018
Hot Features
Premium
26 September 2018
AIM: RUR
Rurelec PLC
("Rurelec" or "the Company")
Interim results for the six months ended 30 June 2018
Rurelec PLC (AIM: RUR), the owner, operator and developer of power generation capacity internationally, today announces its unaudited interim results for the six months ended 30 June 2018.
Financial Highlights:
-- Post tax profit / (loss) GBP1.1 million profit (2017: GBP1.9 million loss)
-- Profit / (loss) per share 0.20 pence profit (2017: 0.35 pence loss)
-- Net asset value per share 4.7 pence (2017: 5.1 pence)
Operational and Post Half-Year Highlights:
-- The main drivers for the major profit improvement have been the combined effect of a GBP1.3 million gain on the Peruvian disposal (previously announced in 2017's accounts but completed in the first half of 2018) along with favourable exchange rate gains of GBP0.7 million associated with loans to Argentine operations (2017: losses GBP1.0 million).
-- A factor that has negatively impacted on these results has been the fall in finance income to GBP nil (2017: GBP0.4 million), due to a cessation of accruing interest on certain loans where that interest is unlikely to be recovered.
-- Significant reduction in administrative expenses from GBP1.1 million to GBP0.7 million.
-- A significant reduction in cash outflow from the business - cash outflows on expenses, payment of deferred consideration and payment of creditor arrears fell to GBP1.1 million (2017: GBP2.3 million).
-- Significant reduction in current liabilities from GBP7.0 million to GBP2.4 million due to a GBP2.8 million reduction in borrowings, a GBP0.3 million reduction in trade payables (including deferred consideration) and a GBP1.5 million fall in liabilities held for resale.
-- The fall in borrowings from GBP4.3 million to GBP1.5 million was driven by a GBP2.5 million reduction in sums payable in connection with the Peruvian Operations (disposed of in January 2018) and a GBP0.3 million repayment in the second half of 2017 of secured debt principal owed to Bridge Properties (Arena Central) Ltd ("BPAC").
-- Commensurate with the fall in indebtedness, the interest costs of the Group fell to GBP75k (2017: GBP214k) as the Board prioritised the repayment of the highest interest-bearing debt.
-- A reduction in cash outflows and operating expenses of the business has been necessary in response to a significant drop in receipts as the Energia del Sur S.A. ("EdS") plant in Argentina suffered the effects of running at reduced power output from September 2017 to the present date, and consequently was unable to make debt repayments to the Group at the rate it had planned.
-- Chile -The Rurelec Board continues to explore options for the Chilean operations and the Group's two 128 MW Turbines.
Commenting on the results, Simon Morris, Rurelec's Executive Director, said:
"The Company continues to pursue measures to restore value to the Company and its shareholders through developments in Argentina and Chile, whilst pursuing cost savings at the head office in London and the sale of the Peruvian assets."
For further information please contact:
Rurelec PLC WH Ireland Simon Morris Katy Mitchell Executive Director Andrew Coveney Executive Director +44 (0)20 7025 8026/28 +44 (0)20 7220 1666
Executive Director's Statement
Review of Operations
In Argentina our 50% owned operating entity, EdS, and its parent company, Patagonia Energy Limited, have outstanding borrowings and interest before impairments of GBP37.4 million (2017: GBP37.9 million) due to the Group. EdS has been subject to two significant operational outages (as previously reported). The second outage occurring in September 2017 involved a shutdown of the plant following problems identified in the steam turbine. A temporary engineering modification was implemented. The plant resumed generation of electricity from one of its two gas turbines on 24 September 2017 and from the steam turbine on 17 October 2017, albeit at a reduced output of approximately 20 MW rather than its normal contracted 43.7 MW. This latter outage severely impacted on the operating entity to remit loan repayments such that just GBP1.1 million (2017: GBP2.0 million) was remitted to the UK during the period.
In Chile, the necessary environmental consents and land leases were renewed to extend the project and the Board continues to review options in the light of the risks versus rewards of undertaking this project.
A very tight rein continues to be maintained on overheads in the UK.
As previously announced, in the first half of 2018 the Group was able to extend, to 30 June 2019, its facilities from BPAC, the principal totalling GBP1.2 million. Rurelec received sufficient debt repayments from Argentina to enable it to repay GBP320k of the highest yielding portion of BPAC debt during the second half of 2017. These repayments were subsequently suspended as a result of the fall-off in receipts from Argentina. On resumption of regular debt repayments from Argentina, the Board will resume the repayment of the secured BPAC facilities.
Cash flow remains a concern but the reduction in cash outflow from the Group achieved through cost cutting and disposal of some loss-making entities has enabled the Group to endure a period of cash shortage. This position is expected to recover as and when the Argentinian operation recommences regular debt repayments to the UK and/or further asset sales are achieved by the Group.
Given the progress on the sale of the Group's assets and the expected cash remittances from our Argentine operation, the directors continue to adopt the going concern basis of accounting.
Events after the period under review
As announced on 24 September 2018, the directors have been informed that the management of Eds, which owns and operates the 136 MW Southern Patagonian CCGT power plant in Argentina, are expecting to commence a major maintenance shutdown of its steam turbine in mid-October 2018. Whilst the turbine is shut down it is anticipated that there will be reduced cash payments from Eds to the Group. Accordingly, until EdS resumes full output or Rurelec sources alternative funds, or generates funds from asset sales, Rurelec's working capital position will remain severely constrained. Assuming the major maintenance results in a return to full power output in late December 2018, this should improve the cashflow of EdS from approximately February 2019 and therefore enhance EdS's ability to recommence regular repayments of debt to Rurelec Project Finance Limited. However, there is no guarantee that EdS will be able to recommence debt repayments in that timeframe. Rurelec continues to explore other funding options and will provide further updates in due course.
Review of future strategy
The strategy of the Group continues to be focussed on stabilising the financial position, keeping costs under tight control, whilst certain assets are sold. The underlying strategy is to preserve the value of the Group assets, which will in turn enable all creditors of Rurelec to be repaid and maximise returns to shareholders.
Simon Morris
Executive Director
RURELEC PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (unaudited)
for the half year ended 30 June 2018
(expressed in thousands of pounds)
________
Audited
Notes 6 months 6 months 12 months
to to to
30/06/18 30/06/17 31/12/17
GBP'000 GBP'000 GBP'000
------------------------------------ ------ ----------------------- ----------------------- ----------
Administrative expenses (731) (1,134) (2,070)
Other income 1,250 - -
Other expense - - (1,651)
Operating profit / (loss) 519 (1,134) (3,721)
Foreign exchange gains /
(losses) 661 (963) (2,547)
Finance income - 364 862
Finance expense (75) (214) (419)
------------------------------------ ------ ----------------------- ----------------------- ----------
Profit / (Loss) before tax 1,105 (1,947) (5,825)
Tax expense - - -
------------------------------------ ------ ----------------------- ----------------------- ----------
Profit / (Loss) for the
period 1,105 (1,947) (5,825)
Profit / (Loss) per share 3 0.20p (0.35p) (1.04)
------------------------------------ ------ ----------------------- ----------------------- ----------
Other comprehensive income
Items that will be subsequently
reclassified to Profit &
Loss:
Exchange differences on translation of foreign operations 80 (1,025) (386) Total other comprehensive income / (loss) 80 (1,025) (386) Total comprehensive profit / (loss) for the period 1,185 (2,972) (6,211)
RURELEC PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (unaudited)
at 30 June 2018
(expressed in thousands of pounds)
Audited
30/6/18 30/6/17 31/12/17
Notes GBP'000 GBP'000 GBP'000
------------------------------- -------- ------------------------- -------------------------- ---------
Assets
Non-current assets
Property, plant and equipment 9,922 11,153 9,699
Intangible assets - 30 -
9,922 11,183 9,699
------------------------------- -------- ------------------------- -------------------------- ---------
Current assets
Trade and other receivables 18,485 21,818 18,951
Cash and cash equivalents 398 636 163
Assets Classified as
held for sale 4 - 1,819 2,265
18,883 24,273 21,379
------------------------------- -------- ------------------------- -------------------------- ---------
Total assets 28,805 35,456 31,078
------------------------------- -------- ------------------------- -------------------------- ---------
Equity and liabilities
Shareholders' equity
Share capital 11,228 11,228 11,228
Share premium account 22,754 22,754 22,754
Foreign currency reserve 652 (67) 572
Other reserve 5 45,000 45,000 45,000
Profit and loss reserve (53,240) (50,467) (54,345)
------------------------------- -------- ------------------------- -------------------------- ---------
Total equity 26,394 28,448 25,209
Current liabilities
Trade and other payables 879 1,192 899
Current tax liabilities 8 13 7
Borrowings 1,524 4,345 1,448
Liabilities Classified
as held for sale - 1,458 3,515
------------------------------- -------- ------------------------- -------------------------- ---------
2,411 7,008 5,869
------------------------------- -------- ------------------------- -------------------------- ---------
Total liabilities 2,411 7,008 5,869
------------------------------- -------- ------------------------- -------------------------- ---------
Total equity and liabilities 28,805 35,456 31,078
------------------------------- -------- ------------------------- -------------------------- ---------
RURELEC PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (unaudited)
for the half year ended 30 June 2018
(expressed in thousands of pounds)
Share Share premium Foreign Retained Other Total
capital GBP'000 currency earnings reserve equity
GBP'000 reserve GBP'000 GBP'000 GBP'000
GBP'000
Balance at 01.01.17 11,228 22,754 958 (48,520) 45,000 31,420
----------------------------- ----------- -------------- -------------- ----------- ----------- ---------------
Loss for the first 6 months - - - (1,947) - (1,947)
----------------------------- -------------- ----------- ----------- ---------------
Exchange differences on
translation - - (1,025) - - (1,025)
----------- ---------------
Total comprehensive loss - - (1,025) (1,947) - (2,972)
----------- -------------- -------------- ----------- ---------------
Balance at 30.06.17 11,228 22,754 (67) (50,467) 45,000 28,448
----------------------------- -------------- -------------- ----------- ----------- ---------------
Loss for the Period - - - (3,878) - (3,878)
----------------------------- -------------- -------------- ----------- ----------- ---------------
Exchange differences on
translation - - 639 - - 639
Total comprehensive loss - - 639 (3,878) - (3,239)
-------------- -------------- ----------- ----------- ---------------
Balance at 31.12.17 11,228 22,754 572 (54,345) 45,000 25,209
----------------------------- -------------- -------------- ----------- ----------- ---------------
Gain for the first 6 months - - - 1,105 - 1,105
----------------------------- -------------- ----------- ---------------
Exchange differences on
translation - - 80 - - 80
---------------
Total comprehensive profit - - 80 1,105 - 1,185
-------------- -------------- ----------- ---------------
Balance at 30.06.18 11,228 22,754 652 (53,240) 45,000 26,394
----------------------------- ----------- -------------- -------------- ----------- ----------- ---------------
RURELEC PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
for the half year ended 30 June 2018
(expressed in thousands of pounds)
Audited
6 months 6 months 12 months
to to to
30/06/18 30/06/17 31/12/17
------------------------------- --------- --------- ----------
Result for the period before
tax 1,105 (1,947) (5,825)
from operations
Net finance income (75) (150) (1,096)
Adjustments for:
Unrealised exchange (gains)
/ losses (661) 963 2,570
Impairment of Goodwill - - 29
Gain on disposal (1,250) - -
Impairment of Assets - - 1,625
Change in trade and other
receivables 158 32 103
Change in trade and other
payables (57) (252) 123
-------------------------------- --------- --------- ----------
Cash used in operating
activities (780) (1,354) (2,471)
-------------------------------- --------- --------- ----------
Taxation paid - - -
Interest paid - - -
Net cash used in operating
activities (780) (1,354) (2,471)
-------------------------------- --------- --------- ----------
Cash flows from investing
activities
Repayments from joint venture
company 1,082 2,022 3,331
Settlement of Deferred
Consideration (67) (992) (1,257)
-------------------------------- --------- --------- ----------
Net cash generated from
investing activities 1,015 1,030 2,074
-------------------------------- --------- --------- ----------
Net cash inflow / (outflow) before financing activities 235 (324) (397) -------------------------------- --------- --------- ---------- Cash flows from financing activities Loan Principal Repayments - - (320) Loan Interest Repayments - - (80) -------------------------------- --------- --------- ---------- Net cash used in financing activities - - (400) -------------------------------- --------- --------- ---------- Increase / (decrease) in cash 235 (324) (797) and cash equivalents ------------------------------- --------- --------- ---------- Cash and cash equivalents at 163 960 960 start of period ------------------------------- --------- --------- ---------- Cash and cash equivalents at end of period 398 636 163
RURELEC PLC
Notes to the Interim Statement
for the six months ended 30 June 2018
1. Basis of preparation
These condensed consolidated interim financial statements do not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The comparative figures for the year ended 31 December 2017 were derived from the statutory accounts for that year which have been delivered to the Registrar of Companies. The financial information contained in this interim statement has been prepared in accordance with all relevant International Reporting Standards as adopted by the European Union and expected to apply to the Group's results for the year ending 31 December 2018 and on interpretations of those Standards released to date.
2. Accounting policies
These condensed consolidated interim financial statements have been prepared in accordance with the accounting policies set out in the Group's financial statements for the year ended 31 December 2017.
3. Earnings per share 6 months 6 months 12 months
to to to
30/6/18 30/6/17 31/12/17
--------- ---------- ----------
Basic and diluted
Average number of shares 561m 561m 561m
in issue during the period
Profit / (loss) attributable GBP1.1m GBP(1.9m) GBP(5.8m)
to equity holders of the parent
from continuing operations
Basic and diluted profit /
(loss) per share on continuing
operations 0.20p (0.35p) (1.04p)
--------- ---------- ----------
4. Assets held for Sale
As reported in the December 2017 financial statements, the assets held for sale relate to entities within Peru, which have been held for sale following the commitment of the Group to restructure the business. Since the year end this sale has been completed, these interims reflect the disposal.
5. Other Reserve
The Capital Reduction that took place during December 2014 resulted in the creation of a non-distributable reserve. The condition for this reserve to become distributable is for the outstanding creditors in December 2014 to be settled. At the date of approval of these accounts there are some GBP0.2 million of these creditors outstanding. The Board of Directors consider that these amounts will be settled in the short term and therefore the GBP45 million remains within the Other Reserve, which is non-distributable until these settlements have occurred.
6. The Board of Directors approved this interim statement on 25 September 2018. This interim statement has not been audited.
7. Copies of this statement are available at the Company's website www.rurelec.com
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR LFMMTMBATBAP
(END) Dow Jones Newswires
September 26, 2018 07:00 ET (11:00 GMT)
1 Year Rurelec Chart |
1 Month Rurelec 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
