We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for streaming realtime charts, analysis tools, and prices.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Sound Energy Plc | LSE:SOU | London | Ordinary Share | GB00B90XFF12 | 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% | 0.847 | 0.81 | 0.87 | 50,558 | 09:35:42 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Crude Petroleum & Natural Gs | 0 | 4.97M | 0.0026 | 3.27 | 16.29M |
From Apr 2019 to Apr 2024
TIDMSOU
RNS Number : 8681M
Sound Energy PLC
19 September 2019
19 September 2019
Sound Energy plc
("Sound Energy" or the "Company")
HALF YEARLY REPORT FOR THE SIX MONTHSED 30 JUNE 2019
Sound Energy, the Morocco focused upstream gas company, announces its unaudited half year report for the six months ended 30 June 2019.
OPERATIONAL AND CORPORATE HIGHLIGHTS
-- Initiation of marketing process of Eastern Moroccan licences -- Completion of interpretation of seismic data for Eastern Moroccan licences -- Preparation for 2D seismic for Sidi Moktar
FINANCIAL SUMMARY
-- Structural reduction in administrative expenses going forward -- Cash balances as at 30 June 2019 of GBP11.1 million
-- Equity placing to raise GBP2.4 million at 10 pence per ordinary share completed in June 2019
Statement from the Chairman and Chief Executive Officer
The first half of 2019 was an incredibly active, if from an exploration perspective, rather disappointing period for the Company as it safely completed the first two wells of its 2018/19 Eastern Morocco exploration campaign on budget but without having achieved commercial gas flow rates. The Company subsequently went on to initiate a process to explore monetisation options in respect of its Eastern Morocco portfolio. The Eastern Morocco portfolio marketing process is ongoing and the Board continues to expect the marketing process to conclude prior to the end of 2019.
Exploration Drilling Programme
Following the completion of the TE-10 exploration well in December 2018 and following analysis of the well logs and well results which indicated the presence of a potential gross reservoir interval between a measured depth ("MD") of 1899m MD and 2009m MD, along with the recovery of an unstimulated gas sample to surface, the Company began planning to conduct an unstimulated and stimulated well test over the reservoir interval in early 2019. Following mobilisation of key equipment, the TE-10 well test was safely completed within schedule and within budget, further underlining the Company's operational capabilities.
Unfortunately, following stimulation, the well did not achieve a commercial gas flow rate and the decision was taken to end the well test and suspend the well after the installation of a downhole pressure gauge.
Following the test at the TE-10 well, the Company has taken an impairment charge of GBP6.5 million against the Company's intangible assets during the period.
The Company remains confident in the potential of its Eastern Moroccan portfolio which, following the drilling of five wells and the interpretation of new seismic data acquired by the Company, continues to contain a number of high impact opportunities and plays, including the existing Tendrara Production Concession and the TE-5 Horst discovery it contains and additional exploration potential in the TAGI and Palaeozoic formations across multiple leads and prospects.
Tendrara TE-5 Development
During the period the Company continued to make progress in advancing the development of the Tendrara TE-5 discovery, including the continuation of Front End Engineering & Design by the Enagas-led consortium together with the progression of the Moroccan environmental permitting process and has continued to progress discussions in relation to a gas sales agreement ("GSA") for offtake from the Tendrara Production Concession. The GSA is a critical element required to support project sanction. The Company has to date received a non-binding GSA offer from Morocco's Office National de l'Electricité et de l'Eau Potable ("ONEE") and negotiations on the terms of a GSA continue.
Structural Cost Reductions
The Company continues to manage its cash resources prudently and accordingly, having paused its operational programme, the Company initiated a structural cost reduction programme aimed at materially reducing the Company's ongoing operating expenditure during the period, including reductions in staff numbers and staff costs. Whilst these actions did not deliver a reduction in administrative costs during the period under review, the actions that have been and are being implemented are expected to deliver an annualised reduction in general and administrative expenses of over 50% from end 2019.
Sidi Moktar
The Company continues to view its Sidi Moktar licences as an exciting opportunity to explore for high impact prospectivity within the pre-salt Triassic and Palaeozoic plays in the underexplored Essaouira Basin in Southern Morocco. An Environmental Impact Assessment for the proposed seismic programme was initiated and the Company continues to pursue discussions for a potential farm-down of its interest ahead of the programme commencing.
Italy Disposal
Following the disposal of the Company's Italian licence portfolio, work has continued with the new owners on the restoration of the Badile land, to which the Company retains its economic rights to receive the proceeds from a future sale.
Corporate
In June, the Company successfully completed an equity placing of US$3 million (before expenses) to strengthen the Company's cash position as it continues to explore monetisation options for its Eastern Morocco portfolio. The Company remains well positioned for the second half of 2019 with a 30 June 2019 cash balance of GBP11.1 million.
Simon Davies
Non-Executive Chairman
James Parsons
Chief Executive Officer
For further information please contact:
Vigo Communications - PR Adviser Tel: 44 (0)20 7390 0230 Patrick d'Ancona Chris McMahon Sound Energy questions@soundenergyplc.com James Parsons, Chief Executive Officer JJ Traynor, Chief Financial Officer Cenkos Securities - Nominated Adviser Tel: 44 (0)20 7397 8900 Azhic Basirov David Jones Ben Jeynes RBC - Joint Broker Tel: 44 (0)20 7653 4000 Matthew Coakes Martin Copeland Macquarie Capital (Europe) Limited Tel: 44 (0)20 3031 2000 - Joint Broker Alex Reynolds Nick Stamp
Condensed Interim Consolidated Income Statement
Hot Features
Premium
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec
2019 2018 2018
Unaudited Unaudited Audited
Notes GBP'000s GBP'000s GBP'000s
------------------------------------------------- ----- ---------- ---------- ---------
Continuing operations
Exploration costs (6,494) - (4,058)
------------------------------------------------- ----- ---------- ---------- ---------
Gross loss (6,494) - (4,058)
------------------------------------------------- ----- ---------- ---------- ---------
Administrative expenses (3,995) (4,077) (8,857)
------------------------------------------------- ----- ---------- ---------- ---------
Group operating loss from continuing operations (10,489) (4,077) (12,915)
------------------------------------------------- ----- ---------- ---------- ---------
Finance revenue 57 35 233
Foreign exchange gain 116 1,885 3,387
Other (losses
- derivative financial instruments - (80) (80)
External interest costs (1,151) (1,195) (2,374)
------------------------------------------------- ----- ---------- ---------- ---------
Loss for period from continuing operations
before taxation (11,467) (3,432) (11,749)
------------------------------------------------- ----- ---------- ---------- ---------
Tax credit/(expense) - - -
------------------------------------------------- ----- ---------- ---------- ---------
Profit/(loss) for period from continuing
operations after taxation (11,467) (3,432) (11,749)
Discontinued operations
Profit from discontinued operations 10 - 5,236 4,953
------------------------------------------------- ----- ---------- ========== =========
Total profit/(loss) for the period (11,467) 1,804 (6,796)
------------------------------------------------- ----- ---------- ========== =========
Other comprehensive (loss)/income
Items that may be subsequently be reclassified
to profit and loss account:
Foreign currency translation income 349 2,872 7,614
------------------------------------------------- ----- ========== ========== =========
Total comprehensive profit/(loss) for
the period attributable to equity holders
of the parent (11,118) 4,676 818
------------------------------------------------- ----- ========== ========== =========
Pence Pence Pence
------------------------------------------------- ----- ---------- ========== =========
Basic and diluted profit/(loss) per share
for the period from continuing and discontinued
operations attributable to equity holders
of the parent 3 (1.08) 0.17 (0.66)
------------------------------------------------- ----- ---------- ---------- ---------
Basic and diluted loss per share for the period from continuing operations attributable to equity holders of the parent 3 (1.08) (0.34) (1.14) ------------------------------------------------- ----- ---------- ---------- ---------
Condensed Interim Consolidated Balance Sheet
As at 30 June 2019
30 June 30 June 31 Dec
2019 2018 2018
Unaudited Unaudited Audited
Notes GBP'000s GBP'000s GBP'000s
-------------------------------- ----- ---------- ----------- ----------
Non-current assets
Property, plant and equipment 4 152,844 680 151,005
Intangible assets 5 30,996 170,585 32,008
Interest in Badile land 10 985 - 1,618
-------------------------------- ----- ---------- ----------- ----------
184,825 171,265 184,631
-------------------------------- ----- ---------- ----------- ----------
Current assets
Inventories 1,020 602 929
Other receivables 6 1,963 8,235 3,365
Prepayments 126 227 178
Cash and short term deposits 11,091 14,664 20,536
-------------------------------- ----- ---------- ----------- ----------
14,200 23,728 25,008
-------------------------------- ----- ---------- ----------- ----------
Total assets 199,025 194,993 209,639
-------------------------------- ----- ---------- ----------- ----------
Current liabilities
Trade and other payables 6,243 5,925 10,068
Lease liabilities 8 181 - -
-------------------------------- ----- ---------- ----------- ----------
6,424 5,925 10,068
-------------------------------- ----- ---------- ----------- ----------
Non-current liabilities
Lease liabilities 8 151 - -
Loans and borrowings 7 21,337 19,290 20,476
-------------------------------- ----- ---------- ----------- ----------
21,488 19,290 20,476
-------------------------------- ----- ---------- ----------- ----------
Total liabilities 27,912 25,215 30,544
-------------------------------- ----- ---------- ----------- ----------
Net assets 171,113 169,778 179,095
-------------------------------- ----- ---------- ----------- ----------
Capital and reserves
Share capital and share premium 24,835 10,974 22,600
Warrant reserve 4,090 4,090 4,090
Foreign currency reserve 2,512 (2,579) 2,163
Accumulated surplus 139,676 157,293 150,242
-------------------------------- ----- ---------- ----------- ----------
Total equity 171,113 169,778 179,095
-------------------------------- ----- ---------- ----------- ----------
Condensed Interim Consolidated Statement of Changes in Equity
Accumulated Foreign
Share Share surplus/ Warrant currency Total
capital premium (deficit) reserve reserves equity
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
---------------------------- --------- --------- ----------- --------- --------- ---------
At 1 January 2019 10,551 12,049 150,242 4,090 2,163 179,095
---------------------------- --------- --------- ----------- --------- --------- ---------
Total loss for the period - - (11,467) - - (11,467)
Other comprehensive income - - - - 349 349
---------------------------- --------- --------- ----------- --------- --------- ---------
Total comprehensive income
for the period - - (11,467) - 349 (11,118)
Issue of share capital 245 2,228 - - - 2,473
Share issue costs - (238) - - - (238)
Share based payments - - 901 - - 901
---------------------------- --------- --------- ----------- --------- --------- ---------
At 30 June 2019 (unaudited) 10,796 14,039 139,676 4,090 2,512 171,113
---------------------------- --------- --------- ----------- --------- --------- ---------
At 1 January 2018 10,159 277,670 (115,508) 4,090 (3,918) 172,493
------------------------------ ------ --------- --------- ----- ------- -------
Total loss for the year - - (6,796) - - (6,796)
Other comprehensive loss - - - - 7,614 7,614
------------------------------ ------ --------- --------- ----- ------- -------
Total comprehensive loss - - (6,796) - 7,614 818
Issue of share capital 392 12,687 - - - 13,079
Share issue costs - (570) - - - (570)
Reclassification to profit
and loss account on Italy
divestment - - - - (1,533) (1,533)
Reclassification on share
premium account cancellation - (277,738) 277,738 - - -
Distribution to shareholders
on Italy divestment - - (7,994) - - (7,994)
Share based payments - - 2,802 - - 2,802
------------------------------ ------ --------- --------- ----- ------- -------
At 31 December 2018 10,551 12,049 150,242 4,090 2,163 179,095
------------------------------ ------ --------- --------- ----- ------- -------
Shares Foreign
Share Share to be Accumulated Warrant currency Total
capital premium issued deficit reserve reserves equity
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
----------------------------- --------- --------- --------- ----------- --------- --------- ---------
At 1 January 2018 10,159 277,670 - (115,508) 4,090 (3,918) 172,493
----------------------------- --------- --------- --------- ----------- --------- --------- ---------
Total loss for the
period - - - 1,804 - - 1,804
Other comprehensive
income - - - - - 2,872 2,872
----------------------------- --------- --------- --------- ----------- --------- --------- ---------
Total comprehensive
income for the period - - - 1,804 - 2,872 4,676
Reclassification to
profit and loss account
on Italy divestment - - - - - (1,533) (1,533)
Reclassification on
share premium account
cancellation - (277,738) - 277,738 - - -
Distribution to shareholders
on Italy divestment - - - (7,994) - - (7,994)
Issue of share capital 41 842 - - - - 883
Share based payments - - - 1,253 - - 1,253
----------------------------- --------- --------- --------- ----------- --------- --------- ---------
At 30 June 2018 (unaudited) 10,200 774 - 157,293 4,090 (2,579) 169,778
----------------------------- --------- --------- --------- ----------- --------- --------- ---------
Condensed Interim Consolidated Cash Flow Statement
Year
Six months Six months ended
ended ended 31 Dec
30 June 30 June 2018
2019 Unaudited 2018 Unaudited Audited
GBP'000s GBP'000s GBP'000s
-------------------------------------------- --------------- --------------- ---------
Cash flow from operating activities
Cash flow from operations (6,591) (1,202) (281)
Interest received 57 61 259
--------------------------------------------- --------------- --------------- ---------
Net cash flow from operating activities (6,534) (1,141) (22) --------------------------------------------- --------------- --------------- --------- Cash flow from investing activities Capital expenditure and disposals (963) (382) (937) Exploration expenditure (4,351) (3,122) (8,855) Disposed of Italian operations 761 (2,655) (2,655) --------------------------------------------- --------------- --------------- --------- Net cash flow from investing activities (4,553) (6,159) (12,447) --------------------------------------------- --------------- --------------- --------- Cash flow from financing activities Net proceeds from equity issue 2,235 607 12,218 Interest payments (627) (634) (1,274) Lease payments (83) - - --------------------------------------------- --------------- --------------- --------- Net cash flow from financing activities 1,525 (27) 10,944 --------------------------------------------- --------------- --------------- --------- Net decrease in cash and cash equivalents (9,562) (7,327) (1,525) Net foreign exchange difference 117 (20) 50 Cash and cash equivalents at the beginning of the period 20,536 22,011 22,011 --------------------------------------------- --------------- --------------- --------- Cash and cash equivalents at the end of the period 11,091 14,664 20,536 --------------------------------------------- --------------- --------------- --------- Cash flow from operations reconciliation Profit/(loss) before tax from continuing operations (11,467) (3,432) (11,749) Profit/(loss) before tax from discontinued operations - 5,236 4,953 ---------------------------------------------------- -------- ------- -------- Total profit/(loss) for the period before tax (11,467) 1,804 (6,796) Finance revenue (57) (61) (259) Exploration expenditure written off and impairment of assets 6,494 - 4,058 Gain on disposal of Italian operations - (3,967) (3,684) Decrease in accruals and short term payables (4,365) (379) 1,078 Depreciation 266 176 164 Share based payments charge and bonuses paid in shares 901 1,529 3,094 Decrease/(Increase) in drilling inventories (91) 28 (299) Loss on derivative financial instruments - 80 80 Finance costs and exchange differences 1,035 (690) (1,013) Foreign currency translation gain reclassified from other comprehensive income - (1,533) (1,533) Decrease in short term receivables and prepayments 693 1,811 4,829 ---------------------------------------------------- -------- ------- -------- Cash flow from operations (6,591) (1,202) (281) ---------------------------------------------------- -------- ------- --------
Notes to the Condensed Interim Consolidated Financial Statements
1. Basis of preparation
The condensed interim consolidated financial statements do not represent statutory accounts within the meaning of section 435 of the Companies Act 2016. The financial information for the year ended 31 December 2018 is based on the statutory accounts for the year ended 31 December 2018. Those accounts, upon which the auditors issued an unqualified opinion, have been delivered to the Registrar of Companies and did not contain statements under section 498(2) or (3) of the Companies Act 2006.
The condensed interim financial information is unaudited and has been prepared on the basis of the accounting policies set out in the Group's 2018 statutory accounts, except for the adoption of IFRS 16, Leases and in accordance with IAS 34 Interim Financial Reporting. The Group adopted IFRS 16 which became effective on 1 January 2019. As allowed by IFRS 16, the Group used the modified retrospective method and therefore the comparatives were not restated and the reclassifications and adjustments arising from the adoption of IFRS 16 were recognised in the opening balance sheet on 1 January 2019. The Group's leases are in respect of the UK and Morocco office premises. On adoption of IFRS 16, the Group recognised GBP0.3 million as lease liability and right of use assets of the same amount, adjusted for prepaid amounts relating to the lease. The Group elected to recognise as an expense on a straight-line basis for short-term leases (lease term of 12 months or less) and leases of low value assets. Further information on the leases is provided in note 8.
The seasonality or cyclicality of operations does not impact on the interim financial statements.
Going concern
As at 30 June 2019, the Company's cash balance was GBP11.1 million. The Company's Condensed Interim Consolidated Financial Statements have been prepared on a going concern basis, which contemplates the realisation of assets and the settlement of liabilities and commitments in the normal course of operations. The Company has paused further operations as it explores the monetisation options available to the Company in respect of its Eastern Moroccan licences. The Company has initiated a structural cost reduction programme to conserve cash resources and meet its ongoing obligations including the settlement of coupon interest on the Company's EUR28.8 million bond. The Company's cashflow forecast for the twelve-month period to September 2020 indicates that additional funding will be required to enable the Company to meet its obligations.
These conditions indicate the existence of a material uncertainty which, were it not for the expected funding due from the marketing process, may cast significant doubt about the Company's ability to continue as a going concern. These Condensed Interim Consolidated Financial Statements do not include adjustments that would be required if the Company was unable to continue as a going concern. The directors have formed a judgement based on the Company's proven success in raising capital and a review of the strategic options available to the Company, that the going concern basis should be adopted in preparing the Condensed Interim Consolidated Financial Statements.
2. Segment information
The Group categorises its operations into three business segments based on Corporate, Exploration and Appraisal and Development and Production. The Group's Exploration and Appraisal activities are carried out in Morocco. The Group's reportable segments are based on internal reports about the components of the Group which are regularly reviewed by the Board of Directors, being the Chief Operating Decision Maker ("CODM"), for strategic decision making and resources allocation to the segment and to assess its performance. The segment results for the period ended 30 June 2019 are as follows:
Segment results for the period ended 30 June 2019
Development Exploration
Corporate & Production & Appraisal Total
GBP'000s GBP'000s GBP'000s GBP'000s
--------------------------------------- --------- ------------- ------------ ---------
Exploration costs - - (6,494) (6,494)
--------------------------------------- --------- ------------- ------------ ---------
Administration expenses (3,995) - - (3,995)
--------------------------------------- --------- ------------- ------------ ---------
Operating loss segment result (3,995) - (6,494) (10,489)
--------------------------------------- --------- ------------- ------------ ---------
Finance revenue 57 - - 57
Finance costs and exchange adjustments (1,035) - - (1,035)
--------------------------------------- --------- ------------- ------------ ---------
Loss for the period before taxation (4,973) - (6,494) (11,467)
--------------------------------------- --------- ------------- ------------ ---------
The segments assets and liabilities at 30 June 2019 are as follows:
Development Exploration
Corporate & Production & Appraisal Total
GBP'000s GBP'000s GBP'000s GBP'000s
-------------------- --------- ------------- ------------ ---------
Capital expenditure 1,590 152,247 30,988 184,825
Other assets 12,490 - 1,710 14,200
Total liabilities (22,820) - (5,092) (27,912)
-------------------- --------- ------------- ------------ ---------
The geographical split of non-current assets is as follows:
UK Morocco
GBP'000s GBP'000s
---------------------------------------- --------- ---------
Development and production assets - 152,247
Interest in Badile land 985 -
Fixtures, fittings and office equipment 75 198
Right of use assets 120 204
Exploration and evaluation assets - 30,824
Software 8 164
---------------------------------------- --------- ---------
Total 1,188 183,637
---------------------------------------- --------- ---------
Segment results for the period ended 30 June 2018
Development Exploration
Corporate & Production & Appraisal Total
GBP'000s GBP'000s GBP'000s GBP'000s
------------------------------------------------ --------- ------------- ------------ ---------
Administration expenses (4,077) - - (4,077)
------------------------------------------------ --------- ------------- ------------ ---------
Operating loss segment result (4,077) - - (4,077)
------------------------------------------------ --------- ------------- ------------ ---------
Finance revenue 35 - - 35
Gain/(loss) on derivative financial instruments (80) - - (80)
Finance costs and exchange adjustments 690 - - 690
------------------------------------------------ --------- ------------- ------------ ---------
Profit/(loss) for the period before taxation (3,432) - - (3,432)
------------------------------------------------ --------- ------------- ------------ ---------
The segments assets and liabilities at 30 June 2018 were as follows:
Development Exploration
Corporate & Production & Appraisal Total
GBP'000s GBP'000s GBP'000s GBP'000s
-------------------------------------------------- --------- ------------- ------------ ---------
Capital expenditure 680 - 170,585 171,265
Other assets 19,999 - 3,729 23,728
Liabilities attributable to continuing operations (21,080) - (4,135) (25,215)
-------------------------------------------------- --------- ------------- ------------ ---------
The geographical split of non-current assets is as follows:
UK Morocco
GBP'000s GBP'000s
---------------------------------------- --------- ---------
Fixtures, fittings and office equipment 148 532
Exploration and evaluation assets - 170,449
Software 45 91
---------------------------------------- --------- ---------
Total 193 171,072
---------------------------------------- --------- ---------
Segment results for the year ended 31 December 2018
Exploration
Development &
Corporate & Production Appraisal Total
GBP'000s GBP'000s GBP'000s GBP'000s
----------------------------------------- --------- ------------- ----------- ---------
Exploration costs - - (4,058) (4,058)
----------------------------------------- --------- ------------- ----------- ---------
Administration expenses (8,857) - - (8,857)
----------------------------------------- --------- ------------- ----------- ---------
Operating loss segment result (8,857) - (4,058) (12,915)
----------------------------------------- --------- ------------- ----------- ---------
Interest receivable 233 - - 233
Loss on derivative financial instruments (80) - - (80)
Finance costs and exchange adjustments 1,013 - - 1,013
----------------------------------------- --------- ------------- ----------- ---------
Loss for the period before taxation from
continuing operations (7,691) - (4,058) (11,749)
----------------------------------------- --------- ------------- ----------- ---------
The segments assets and liabilities at 31 December 2018 were as follows:
Exploration
Development &
Corporate & Production Appraisal Total
GBP'000s GBP'000s GBP'000s GBP'000s
-------------------------------------------------- --------- ------------- ----------- ---------
Non-current assets 405 150,600 33,626 184,631
Current assets 22,056 - 2,952 25,008
Liabilities attributable to continuing operations (22,377) (320) (7,847) (30,544)
-------------------------------------------------- --------- ------------- ----------- ---------
The geographical split of non-current assets is as follows:
UK Morocco
GBP'000s GBP'000
---------------------------------------- --------- --------
Development and production assets - 150,600
Interest in Badile land 1,618 -
Fixtures, fittings and office equipment 113 292
Exploration and evaluation assets - 31,799
Software 24 185
---------------------------------------- --------- --------
Total 1,755 182,876
---------------------------------------- --------- --------
3. Profit/(loss) per share
The calculation of basic profit/(loss) per Ordinary Share is based on the profit/(loss) after tax and on the weighted average number of Ordinary Shares in issue during the period. The calculation of diluted profit/(loss) per share is based on the profit/(loss) after tax on the weighted average number of ordinary shares in issue plus weighted average number of shares that would be issued if dilutive options and warrants were converted into shares. Basic and diluted profit/(loss) per share is calculated as follows:
30 June 30 June 31 December
2019 2018 2018
GBP'000 GBP'000 GBP'000
----------------------------------------------------- -------- -------- -----------
Loss after tax from continuing operations (11,467) (3,432) (11,749)
Profit/(loss) after tax from discontinued operations - 5,236 4,953
----------------------------------------------------- -------- -------- -----------
Total profit/(loss) for the period (11,467) 1,804 (6,796)
----------------------------------------------------- -------- -------- -----------
million million million
------------------------------------------ ------- ------- -------
Weighted average shares in issue 1,057 1,019 1,035
Dilutive potential ordinary shares - 33 18
------------------------------------------ ------- ------- -------
Diluted weighted average number of shares 1,057 1,052 1,053
------------------------------------------ ------- ------- -------
Basic profit/(loss) per share
Pence Pence Pence
----------------------------------------------------------- ------ ------ ------
Basic loss per share from continuing operations (1.08) (0.34) (1.14)
Basic profit/(loss) per share from discontinued operations - 0.51 0.48
Basic profit/(loss) per share from continuing and
discontinued operations (1.08) 0.17 (0.66)
----------------------------------------------------------- ------ ------ ------
Diluted profit/(loss) per share
Pence Pence Pence
---------------------------------------------------- ------ ------ ------
Diluted loss per share from continuing operations (1.08) (0.34) (1.14)
Diluted profit/(loss) per share from discontinued
operations - 0.50 0.47
Diluted profit/(loss) per share from continuing and
discontinued operations (1.08) 0.17 (0.66)
---------------------------------------------------- ------ ------ ------
The effect of the potential dilutive shares noted above on the earnings per share from continuing operations would be anti-dilutive and therefore are not included in the above calculation of diluted earnings per share from continuing operations.
4. Property, plant and equipment
30 June 30 June 31 Dec
2019 2018 2018
GBP'000s GBP'000s GBP'000s
-------------------------------- ---------- ---------- ----------
Cost
At start of period 151,394 646 646
Transfer from intangible assets - - 146,245
Additions 1,390 382 882
Exchange adjustments 620 6 3,625
Disposal (1) - (4)
-------------------------------- ---------- ---------- ----------
At end of period 153,403 1,034 151,394
-------------------------------- ---------- ---------- ----------
Depreciation
At start of period 389 274 274
Exchange adjustments (51) 2 21
Disposals - - (2)
Charge for period 221 78 96
-------------------------------- ---------- ---------- ----------
At end of period 559 354 389
-------------------------------- ---------- ---------- ----------
Net book amount 152,844 680 151,005
-------------------------------- ---------- ---------- ----------
5. Intangibles
30 June 30 June 31 Dec
2019 2018 2018
Unaudited Unaudited Audited
GBP'000s GBP'000s GBP'000s
---------------------------------------- ----------- ----------- ----------
Cost
At start of period 36,412 164,018 164,018
Additions 5,268 3,408 11,447
Transfer to property, plant & equipment - - (146,245)
Exchange adjustments 383 3,304 7,192
---------------------------------------- ----------- ----------- ----------
At end of period 42,063 170,730 36,412
---------------------------------------- ----------- ----------- ----------
Impairment and Depreciation
At start of period 4,404 79 79
Charge for period 6,539 64 4,126
Exchange adjustments 124 2 199
---------------------------------------- ----------- ----------- ----------
At end of period 11,067 145 4,404
---------------------------------------- ----------- ----------- ----------
Net book amount 30,996 170,585 32,008
---------------------------------------- ----------- ----------- ----------
Approximately GBP6.5 million impairment charge was recognised during the period following sub-commercial well results at TE-10 well,
Onshore Morocco. The impairment charge is reported within exploration costs in the profit and loss account.
6. Other receivables
30 June 30 June 31 Dec
2019 2018 2018
Unaudited Unaudited Audited
GBP'000s GBP'000s GBP'000s
------------------------ ----------- ---------- ---------
Italian Vat refundable - 2,730 -
Interest in Badile land - 1,592 -
Other receivable 1,963 3,913 3,365
------------------------ ----------- ---------- ---------
1,963 8,235 3,365
------------------------ ----------- ---------- ---------
7. Loans and Borrowings
30 June 30 June 31 Dec
2019 2018 2018
Unaudited Unaudited Audited
GBP'000s GBP'000s GBP'000s
---------------------- ----------- ----------- ----------
Non-current liability
5-year secured bonds 21,337 19,290 20,476
---------------------- ----------- ----------- ----------
21,337 19,290 20,476
---------------------- ----------- ----------- ----------
The Company has 5-year non-amortising secured bonds with an aggregate value of EUR28.8 million. The bonds are secured over the share capital of Sound Energy Morocco South Limited, have a 5% coupon and were issued at a 32% discount to par value. Alongside the bonds, the Company issued 70,312,500 warrants to subscribe for new ordinary shares in the Company at an exercise price of 30 pence per ordinary share and an exercise period of approximately five years, concurrent with the term of the bonds. The effective interest rate is approximately 16.3%. The 5-year secured bonds are due in June 2021.
8. Lease liabilities
30 June 30 June 31 December
2019 2018 2018
Unaudited Unaudited Audited
GBP'000s GBP'000s GBP'000s
------------------------------------- ----------- ----------- -------------
Amounts due within one year 181 - -
Amounts due after more than one year 151 - -
------------------------------------- ----------- ----------- -------------
332 - -
------------------------------------- ----------- ----------- -------------
The Group has adopted IFRS 16 Leases, from 1 January 2019. As allowed by IFRS 16, the comparatives were not restated and the reclassifications and the adjustments arising from the new leasing rules were recognised in the opening balance sheet on 1 January 2019. The Group's leases are in respect of the UK and Morocco offices premises. On adoption of IFRS 16, the Group recognised lease liabilities in relation to the office leases which were previously classified as operating leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the individual entities incremental borrowing rates. The weighted average incremental borrowing rate was 5.6%.
The associated right of use assets for the office leases were measured at an amount equal to the lease liability but adjusted for prepaid amounts relating to the lease recognised in the balance sheet as at 31 December 2018. The right of use assets are reported within property, plant and equipment and had a carrying value of GBP0.3 million as at 30 June 2019.
9. Shares in issue and share based payments
As at 30 June 2019, the Company had 1,079,570,324 ordinary shares in issue. On 18 June 2019, the Company announced the issue of 23,830,328 shares at 10 pence per share following a placing. The net proceeds of the placing were approximately GBP2.1 million.
During the period to 30 June 2019, the Company granted 0.8 million restricted stock units awards to staff under its long term incentive plan. 625,000 share options were exercised and 550,000 expired during the period.
10. Discontinued operations
On 5 October 2017, the Company announced that it had entered into non-binding conditional heads of terms with Saffron Energy plc ("Saffron") and Po Valley Energy Limited under which it was proposed that the Company disposed of its portfolio of Italian interests and permits through the sale of Sound Energy Holdings Italy ("SEHIL") and Apennine Energy SpA ("APN") (the "disposal") for the consideration of 185,907,500 new ordinary shares in Saffron (subsequently renamed Coro Energy plc) issued directly to the Company's shareholders. On 23 January 2018, the Company announced that it had entered into a binding agreement with Saffron for the disposal and the transaction completed on 9 April 2018. The value of the 185, 907, 500 Coro Energy plc shares distributed to the Company's shareholders was GBP8.0 million using the completion date share price of 4.3 pence. The Company was also entitled to receive proceeds of VAT refund from the Badile well operations and retained economic interest in Badile land. The Company was also obligated to fund Badile land restoration for a fixed amount. During the period to 30 June 2019 the Company received approximately GBP0.8 million VAT refund from the Badile well operations and recognised GBP0.6 million impairment charge in respect of the interest in Badile land due to decline in expected sale price.
The results of the Italian operations for the period are presented below:
Twelve
Six months Six months months
ended ended ended
30 June 30 June 31 December
2019 2018 2018
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------------------------------------- ---------- ---------- ------------
Revenue - 140 140
Operating costs - (170) (170)
Exploration costs - (25) (25)
------------------------------------------------------- ---------- ---------- ------------
Gross loss - (55) (55)
------------------------------------------------------- ---------- ---------- ------------
Administrative expenses - (235) (235)
------------------------------------------------------- ---------- ---------- ------------
Operating loss from discontinued operations - (290) (290)
------------------------------------------------------- ---------- ---------- ------------
Finance revenue - 26 26
Foreign currency translation gain reclassified from
other comprehensive income - 1,533 1,533
Gain on disposal of Italian operations - 3,967 3,684
------------------------------------------------------- ---------- ---------- ------------
Profit/(loss) for the period before and after taxation
from discontinued operations - 5,236 4,953
------------------------------------------------------- ---------- ---------- ------------
The net cash flows for the period were as follows:
Net cash flow from operating activities - 1,897 1,897 Net cash flow from investing activities 761 - (2,655) Net cash flow from financing activities - - - ---------------------------------------- --- ----- ------- Net cash outflow 761 1,897 (758) ---------------------------------------- --- ----- -------
11. Post Balance Sheet events
There are no significant subsequent events to report.
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 CKFDKABKDCCD
(END) Dow Jones Newswires
September 19, 2019 02:00 ET (06:00 GMT)
1 Year Sound Energy Chart |
1 Month Sound Energy 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
