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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Saffron Eng | LSE:SRON | London | Ordinary Share | GB00BDCFP425 | ORD 0.1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 4.10 | 4.00 | 4.20 | 0.00 | 00:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMSRON
RNS Number : 6290Q
Saffron Energy PLC
13 September 2017
13 September 2017
Saffron Energy Plc
("Saffron" or the "Company")
Interim Financial Statements
Saffron Energy plc (AIM: SRON), the natural gas producer with interests in northern Italy, is pleased to announce its Interim Financial Statements for the six months ended 30 June 2017.
A copy of these is also available on the Company's website https://saffronenergy.co.uk/investors/financial-reports/
About Saffron Energy PLC
Saffron Energy is a natural gas producer with interests in Northern Italy. Its portfolio includes two gas production fields (Sillaro and Bezzecca (90%)), and an application for a near-term gas production field (Sant'Alberto), all near Milan and Bologna. Saffron Energy commenced trading on the London AIM Market under the ticker of SRON on 24 February 2017.
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
For more information, please visit www.saffronenergy.co.uk or contact the following:
Saffron Energy plc +44 (0) 7791288381 Michael Masterman, CEO info@saffronenergy.co.uk Grant Thornton UK LLP (Financial +44 (0) 207 383 & Nominated Adviser) 5100 Colin Aaronson Harrison J Clarke Turner Pope Investments (TPI) Ltd (Broker) +44 (0)2036214120 Ben Turner info@turnerpope.com James Pope Cassiopeia Services (PR/IR) +44 (0) 7949690338 Stefania Barbaglio Stefania@cassiopeia-ltd.com
CHIEF EXECUTIVE OFFICER'S STATEMENT
Total Production for the first six months of 2017 amounted to 2.6 million standard cubic metres of gas (circa 91 million standard cubic feet). Production in 2016 for the same period was 2.4 million standard cubic metres (circa 83 million standard cubic feet).
Production for the period was from the Company's Sillaro and Bezzecca gas fields. Sillaro which is currently producing from a single level - CO - was expected to stop production early in the year, however despite a slight decrease in the daily rate, production from this level continues strong averaging between 5,000 to 10,000 scm/day. As announced to the market in March, the development and tie in of the Bezzecca gas field was completed and commissioned in Q2 on time and on budget with first gas flows on 18 April and full commercial production commencing at a steady rate from the Level A interval in mid-May 2017. Over the first two weeks of July, the Company installed a downhole choke at Bezzecca and production from the field recommenced immediately afterwards from level, A and S. Production rates in Level A were adjusted in order to allow for increased aggregate production from both levels.
The Company continues to make good progress in its application for a full production concession for the gas field Sant'Alberto. The Company is currently awaiting the granting of an Intesa (agreement) from the Emilia Romagna regional government, following which the Ministry of Economic Development in Rome will issue the production concession. The Company had originally anticipated that the Intesa and the production concession would have been granted by the end of the first half of 2017. Saffron now anticipates that this will have been achieved by Q3 2017. Development of Sant'Alberto will follow the grant of the production concession and first gas is now expected in or around Q1 2018.
Finance
In February, the Company successfully listed on the AIM board of the London Stock Exchange following an oversubscribed GBP2.5m book build and capital raising.
The net loss of the Company after income tax amounted to EUR916k for the half-year ended 30 June 2017. The operating results for the first six months of the year reflect the fact that commercial production from Bezzecca was only captured in the last two months of the period and include some additional one-off IPO related costs. Consequently the half year results presented in this report are not indicative of the ongoing earnings potential of the Company.
Health and Safety
The Company places a high importance on its commitment to Health, Safety and the Environment (HS&E). Saffron ensures that the various stages of business activities from initial planning to carrying-out daily operational procedures are designed and performed with the implemented HS&E safety systems in mind. A total of 16,058 man- hours worked both on-site and within the administrative office with no incidents or near misses to report is testament to the importance and effectiveness the internal HS&E management systems. Saffron is committed to maintaining environmental sustainability and health and safety in the workplace as they are an integral part of our business strategy and corporate citizenship.
Outlook
During the period, Saffron has reached major milestones with mechanical completion of the tie-in development and commencement of commercial production from Bezzecca, whilst progressing the final stages of approval for its Sant'Alberto field which is intended to come on stream in the next 12 months. On behalf of the Board, I would like to thank our hardworking team in Italy and our valued shareholders for their support during the listing process. We look forward to prospering with the development work as we head towards production from Sant'Alberto in 2018 and prepare for the second phase of production ramp-up which will include a sidetrack well at Sillaro and a second development well at Bezzecca.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2017
31 December 30 June 2017 2016 NOTE EUR'000 EUR'000 Non-Current Assets Inventory 733 - Other assets 138 - Deferred tax assets 3 1,995 - Property, plant & equipment 5 2,294 - Resource property costs 6 6,077 - ------------- ------------ Total non-current assets 11,237 - ------------- ------------ Current Assets Cash and cash equivalents 522 60 Trade and other receivables 698 - ------------- ------------ Total current assets 1,220 60 ------------- ------------ Total assets 12,457 60 ============= ============ Liability and equity Current Liabilities Trade and other payables 1,836 - Provisions 7 52 - Interest bearing loans 8 393 - ------------- ------------ Total current liabilities 2,281 - ------------- ------------ Non-Current Liabilities Provisions 7 4,992 - Total non-current liabilities 4,992 - ------------- ------------ Total Liabilities 7,273 - ------------- ------------ Equity Issued capital Nominal share capital 181 60 Share premium 9 2,455 - Merger reserve 9 3,464 - Accumulated losses 9 (916) - ------------- ------------ Total equity 5,184 60 ------------- ------------ Total equity and liabilities 12,457 60 ------------- ------------
CONSOLIDATED INCOME STATEMENT AND OTHER COMPREHENSIVE INCOME FOR THE SIX MONTHSED 30 JUNE 2017
NOTE 30 June 2017 EUR'000 Revenue(**) 560 Operating costs (307) Depreciation and amortisation expense (132) --------- Gross profit 121 Other income 7 Technical & administrative employee benefits(*) (442) Depreciation expense (4) Corporate overheads (inc. IPO costs) (*) (582) Exploration costs expensed (4) --------- Loss from operating activities (904) Finance income - Finance expense (12) --------- Net finance expense (12) --------- Loss before income tax expense (916) Income tax expense 2 - --------- Loss for the period (916) Other comprehensive income - Total comprehensive
loss for the period (916) ========= Loss attributable to: Owners of the Company (916) Non-controlling interests - --------- Loss for the period (916) ========= Total comprehensive loss attributable to: Owners of the Company (916) Non-controlling interests - --------- Total comprehensive loss for the period (916) ========= Basic and diluted loss per share (EUR) 4 (0.0068)
*Both these line items include one off costs associated with the restructuring and lead up to the IPO on 24 February 2017.
**The Bezzecca gas field started steady production in May 2017 and so revenue from this new production field is only for just over 2 months.
No comparative information has been included in the consolidated income statement and other comprehensive income as trading commenced in 2017.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 JUNE 2017
Attributable to equity holders of the Company Share Share Merger Accumulated capital Premium Reserve Losses Total EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 Balance at incorporation - - - - - Contributions by owners 60 - - - 60 ---- ------ -------- ------ -------- Balance at 31 December 2016 60 - - - 60 ==== ====== ======== ====== ======== Balance at 1 January 2017 60 - - - 60 Total comprehensive loss for the period: Loss for the period - - - (916) (916) Other comprehensive income - - - - - ---- ------ -------- ------ -------- Total comprehensive loss for the period - - - (916) (916) ---- ------ -------- ------ -------- Transactions with owners recorded directly in equity: Contributions by owners 59 2,884 - - 2,943 Share based payments for services rendered (non-cash) 4 210 - - 214 Share based payments for acquisition of subsidiary (non-cash) 58 - 9,942 - 10,000 Goodwill written off - - (6,478) - (6,478) Transaction costs relating to issue of shares - (639) - - (639) ---- ------ -------- ------ -------- Balance at 30 June 2017 181 2,455 3,464 (916) 5,184 ==== ====== ======== ====== ========
.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 JUNE 2017
30 June 31 December 2017 2016 EUR'000 EUR'000 Cash flows from operating activities Receipts from customers 441 - Payments to suppliers and employees (1,634) - Interest paid (12) - Income tax paid --------- ------------ Net cash used in operating activities (1,205) - --------- ------------ Cash flows from investing activities Acquisition of cash balances 107 - Receipts for resource property costs from joint operations partners 100 - Payments for resource property costs and production plant and equipment (313) - --------- ------------ Net cash used in investing activities (106) - --------- ------------ Cash flows from financing activities Proceeds from issues of shares 2,944 60 Transaction costs relating to issue of shares (582) - Proceeds from borrowings 678 - Repayment of borrowings (1,267) - Payment of borrowing costs other than interest - --------- ------------ Net cash provided by financing activities 1,773 60 --------- ------------ Net increase in cash and cash equivalents 462 60 --------- ------------ Cash and cash equivalents brought forward 60 - --------- ------------ Cash and cash equivalents carried forward 522 60 ========= ============
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHSED 30 JUNE 2017
NOTE 2: INCOME TAX EXPENSE
Numerical reconciliation between aggregate tax expense recognised in the statement of comprehensive income and tax expenses calculated per the statutory income tax rate
30 June 2017 EUR'000 Loss for the year before tax (916) Income tax benefit using the Group tax rate of 24% (220) Current year losses and temporary differences for which no deferred tax asset was recognised 220 Changes in temporary differences - Other non-deductible expenses ------------- Income tax expense / (benefit) - =============
Tax benefits have not been recognised in respect of tax losses and temporary differences for the first six months based on management's conservative assessment of future taxable profit that would be available against which the Group can utilise the benefits therefrom.
NOTE 3: DEFERRED TAX ASSETS
Deferred tax assets have been recognised in respect of tax losses and temporary differences based on management assessment that future taxable profit will be available against which the Group can utilise the benefits therefrom. Deferred tax assets amounting to EUR1,994,913 have been recognised in relation to the Italian subsidiary's available tax losses and temporary differences.
NOTE 4: LOSS PER SHARE
30 June 2017 Basic loss per share (EUR) (0.0068) Diluted loss per share (EUR) (0.0068) The calculation of basic loss per share was based on the loss attributable to shareholders of EUR916,039 and a weighted average number of ordinary shares outstanding during the half year of 134,165,967.
NOTE 5: PROPERTY, PLANT & EQUIPMENT
30 June 31 December 2017 2016 EUR'000 EUR'000 Office Furniture & Equipment: At cost 200 - Accumulated depreciation (193) - --------- ------------ 7 - --------- ------------ Gas producing plant and equipment At cost 8,524 Accumulated depreciation (6,237) - --------- ------------ 2,287 - --------- ------------ 2,294 - ========= ============
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHSED 30 JUNE 2017
NOTE 5: PROPERTY, PLANT & EQUIPMENT (Continued)
30 June 31 December 2017 2016 EUR'000 EUR'000 Reconciliations: Reconciliation of the carrying amounts for each class of Plant & equipment are set out below: Office Furniture & Equipment: Carrying amount at beginning of period - Acquisition of assets 11 Depreciation expense (4) - --------- ------------ Carrying amount at end of period 7 - --------- ------------ Gas Producing plant and equipment: Carrying amount at beginning of period - - Acquisition of assets 2,325 - Additions 21 - Depreciation expense (60) - --------- ------------
Carrying amount at end of period 2,286 - --------- ------------ 2,293 - ========= ============
NOTE 6: RESOURCE PROPERTY COSTS
31 December 30 June 2017 2016 EUR'000 EUR'000 Resource Property costs Exploration Phase 2,554 - Production Phase 3,523 - ------------- ------------ 6,077 - ============= ============ Reconciliation of carrying amount of resource properties Exploration Phase Carrying amount at beginning of period - - Acquisition of assets (refer note 10) 5,003 Exploration expenditure 516 - Transfer to Production phase (2,965) - Exploration expenditure written off - - ------------- ------------ Carrying amount at end of period 2,554 - ============= ============ Resource property costs in the exploration and evaluation phase have not yet reached a stage which permits a reasonable assessment of the existence of, or otherwise, economically recoverable reserves. The ultimate recoupment of resource property costs in the exploration phase is dependent upon the successful development and exploitation, or alternatively sale, of the respective areas of interest at an amount greater than or equal to the carrying value. During the period, the Group completed the development of the Bezzecca field. Accumulated costs relating to this field were transferred to production phase assets as production commenced in the second quarter of the year.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2017
NOTE 6: RESOURCE PROPERTY COSTS (Continued)
30 June 31 December 2017 2016 Production Phase EUR'000 EUR'000 Carrying amount at beginning of period - - Acquisition of assets (refer note 10) 599 Additions 1 - Transfer from exploration 2,965 Change in estimate of rehabilitation assets - - Amortisation of producing assets (42) - Impairment loss - -------- ------------ Carrying amount at end of period 3,523 - ======== ============
NOTE 7: PROVISIONS
30 June 31 December 2017 2016 EUR'000 EUR'000 Current: Employee leave entitlements 32 - Other provisions 20 - -------- ------------ 52 - -------- ------------ Non-Current: Restoration provision 4,992 - ======== ============ Reconciliation of restoration provision: Opening balance 4,962 - Increase in provision from unwind of discount rate 30 - -------- ------------ Closing balance 4,992 - ======== ============
NOTE 8: INTEREST BEARING LIABILITIES
30 June 31 December 2017 2016 EUR'000 EUR'000 Current liabilities Loans 393 - --------- -------------------- 393 - ========= ==================== Terms and debt repayment schedule: Terms and conditions of outstanding loans were as follows: 31 December 30 June 2017 2016 Nominal Year Face Carrying Face Carrying Interest of value Amount value Amount Currency rate maturity EUR'000 EUR'000 EUR'000 EUR'000 Unsecured loans AUD 10% 2018 393 393 - -
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2017
NOTE 9: ISSUED CAPITAL
30 June 30 June 2017 Nominal Share Merger 2017 Number value Premium Reserve Total 000's EUR'000 EUR'000 EUR'000 EUR'000 Issued Capital Opening balance - 1 January 50,000 60 - - 60 Shares issued during the year: Issued for the acquisition of subsidiary 50,000 58 - 9,942 10,000 Goodwill on acquisition of subsidiary - - - (6,478) (6,478) Issued for services rendered 3,720 4 210 - 214 Issued for cash on subscription on AIM listing 50,000 59 2,884 - 2,943 Share issue costs - (639) - (639) ------------ --------- --------- --------- ------------ Closing balance - 30 June 2017 153,720 181 2,455 3,464 6,100 ============ ========= ========= ========= ============ 31 December 31 December 2016 Nominal Share Merger 2016 Number value Premium Reserve Total 000's EUR'000 EUR'000 EUR'000 EUR'000 Opening balance 1 share issued on incorporation - - - - - Issued for cash (i) 50,000 60 - - 60 Closing balance - 31 December 2016 50,000 60 - - 60 ============ ========= ========= ========= ============
(i) 49,999 Shares were issued for cash on 10 November 2016 and on 9 December 2016, the total shares on issue were subdivided into 50,000,000 shares.
All ordinary shares are fully paid and carry one vote per share and the right to dividends. In the event of winding up the Company, ordinary shareholders rank after creditors. Ordinary shares have a par value of GBP0.001 per share.
No dividends were paid or declared during the current period.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GCGDCCDBBGRX
(END) Dow Jones Newswires
September 13, 2017 05:36 ET (09:36 GMT)
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