REG-Salamander EnergyPLC Interim Results - Part 2
Released: 27/08/2009
Part 2 : For preceding part double-click [nRn1a0782Y]
31 December 2008 29,844 378,685 244,519 (70,945) 582,103
Share based payments - - 1,532 - 1,532
Loss for the period - - - (14,342) (14,342)
30 June 2009 29,844 378,685 246,051 (85,287) 569,293
Other reserves comprise:
Six months Six months Year ended
ended 30 June ended 30 June 31 December 2008
2009 2008
Unaudited Unaudited
$'000s $'000s $'000s
Share based payment reserve 4,320 1,705 2,788
Merger reserve 241,731 245,305 241,731
Total other reserves 246,051 247,010 244,519
CONDENSED CONSOLIDATED BALANCE SHEET
30 June 2009
30 June 30 June 31 December
2009 2008 2008
Unaudited Unaudited
Note $'000s $'000s $'000s
ASSETS
Non-current assets
Intangible assets 9. 226,660 174,775 214,814
Property, plant and equipment 10. 577,669 531,646 552,138
Other receivables:
Restricted bank deposits 12,118 21,360 12,084
Other 5,173 3,218 4,475
Deferred tax assets 503 - 387
Total non-current assets 822,123 730,999 783,898
Current assets
Asset held for sale 60 1,000 60
Inventories 10,382 7,794 7,894
Trade and other receivables 64,580 44,446 39,240
Financial assets - hedges - - 5,708
Cash and cash equivalents 59,194 55,566 103,012
Total current assets 134,216 108,806 155,914
Total assets 956,339 839,805 939,812
LIABILITIES
Non-current liabilities
Borrowings 11. 154,755 138,453 157,016
Financial liabilities - hedges 2,364 - -
Provisions 6,880 4,153 4,713
Deferred tax liability 141,583 173,853 147,889
Total non-current liabilities 305,582 316,459 309,618
Current liabilities
Trade and other payables 39,758 41,420 41,829
Financial liabilities - hedges 11,967 - -
Borrowings due within one year 11. 15,988 19,069 -
Current tax payable 13,751 4,642 6,262
Total current liabilities 81,464 65,131 48,091
Total liabilities 387,046 381,590 357,709
Net assets 569,293 458,215 582,103
EQUITY
Share capital 12. 29,844 23,443 29,844
Share premium 378,685 198,856 378,685
Other reserves 246,051 247,010 244,519
Retained loss (85,287) (11,094) (70,945)
Total equity 569,293 458,215 582,103
The interim financial information was approved by the Board of Directors on 26
August 2009.
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Six months ended 30 June 2009
Six months Six months Year ended
ended 30 June ended 30 June 31 December 2008
2009 2008
Unaudited Unaudited
$'000s $'000s $'000s
Cash flow from operating activities
(Loss)/Profit before tax (5,771) 3,844 (75,472)
Adjustments for:
Profit on disposal of assets - - (807)
Exploration write offs - 10,226 39,065
Amortisation and depreciation 29,201 9,784 83,104
Interest revenue (906) (3,865) (5,814)
Finance costs 783 2,687 2,953
Other financial losses/(gains) 16,330 466 (3,564)
Share based payment 905 643 939
Operating cash flow prior to working capital 40,542 23,785 40,404
Increase in inventories (2,488) (76) (176)
(Increase)/Decrease in trade and other receivables (13,983) (426) 1,326
Increase/(Decrease) in trade and other payables 3,270 2,051 (128)
Cash generated from operations 27,341 25,334 41,426
Payment of tax (7,504) (9,919) (15,916)
Net cash inflows from operating activities 19,837 15,415 25,510
Cash flow from investing activities
Acquisition of subsidiary - (32,675) (32,676)
Expenditures on intangible assets (19,296) (42,937) (133,110)
Purchase of property, plant and equipment (51,008) (52,133) (113,315)
Disposal of assets - - 1,500
Loan advances (5,000) (32,350) (32,350)
Repayment/(Payment) of other receivables (34) (3,371) 5,905
Interest received 906 1,595 3,545
Net cash used in investing activities (74,432) (161,871) (300,501)
Cash flow from financing activities
Interest paid (2,685) (1,700) (5,848)
Other financial receipts/(payments) - - (3,401)
Cash flows in respect of long term borrowings 13,425 90,796 89,670
Net proceeds from the issue of shares - - 192,019
Costs of issuing new shares - (3,489) (12,851)
Net cash from financing activities 10,740 85,607 259,589
Net decrease in cash and cash equivalents (43,855) (60,849) (15,402)
Cash and cash equivalents at the beginning of the period 103,012 116,881 116,881
Effect of foreign exchange rate change 37 (466) 1,533
Cash and cash equivalents at the end of the period 59,194 55,566 103,012
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AT 30 JUNE 2009
1. General information
The information for the year ended 31 December 2008 does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985. A copy
of the statutory accounts for that year has been delivered to the Registrar of
Companies. The auditors' report on those accounts was not qualified, did not
draw attention to any matters by way of emphasis and did not contain statements
under section 237(2) or (3) of the Companies Act 1985.
2. Accounting policies
The annual financial statements of Salamander Energy plc are prepared in
accordance with International Financial Reporting Standards (IFRSs) as adopted
by the European Union. The condensed set of financial statements included in
this interim report has been prepared in accordance with International
Accounting Standard 34 "Interim Financial Reporting" as adopted by the European
Union.
Basis of preparation
The Group's business activities, together with the factors likely to affect its
future development, performance and position are set out in the interim
management report on pages 1 to12. The interim management report also includes a
summary of the Group's financial position, its cash flows and borrowing
facilities.
The directors believe the Group is adequately placed to manage its business
risks successfully despite the current uncertain economic outlook. The Group's
forecasts and projections, taking account of reasonably possible changes in
trading performance, show that the Group should be able to operate within the
level of its current committed facilities.
After making enquiries, the directors have a reasonable expectation that the
Group has adequate resources to continue in operational existence for the
foreseeable future. Accordingly, they continue to adopt the going concern basis
in preparing the half-yearly condensed financial statements.
The same accounting policies, presentation and methods of computation are
followed in the condensed set of financial statements as applied in the Group's
latest annual audited financial statements except as noted below.
Changes in accounting policy
In the current financial year, the Group has adopted International Financial
Reporting Standard 8 "Operating Segments", International Accounting Standard 1
"Presentation of Financial Statements" (revised 2007) and International
Accounting Standard 23 "Borrowing Costs" (March 2007),
IFRS 8 requires operating segments to be identified on the basis of internal
reports about components of the Group. The adoption of IFRS 8 has had no effect
on the identified operating segments for the Group which are also the reportable
segments.
IAS 1 (revised) requires the presentation of a statement of changes in equity as
a primary statement, separate from the income statement and statement of
recognised income and expense. As a result, a condensed consolidated statement
of changes in equity has been included in the primary statements, showing
changes in each component of equity for each period presented. As the Group has
only recognised losses in the periods presented, no statement of recognised
income and expenses is included.
IAS 23 (March 2007) had no impact on the Group, as the Group already capitalises
borrowing costs directly attributable to the construction of qualifying assets
under its existing accounting policies.
3. Segmental analysis
The Group currently operates in five geographical areas, namely Thailand,
Indonesia, Philippines, Lao PDR and Vietnam. This is the basis on which
information is reported to management for the purpose of resource allocation and
assessment of segment performance. Other operating expenses, assets and
liabilities relate to general management, finance and administration and tax of
the Group.
The operations of the Group comprise one class of business, being oil and gas
exploration, development and production.
Six months ended 30 June 2009
Thailand Indonesia Philippines Lao PDR Vietnam Other Total
$'000s $'000s $'000s $'000s $'000s $'000s $'000s
Revenue (external) 53,277 24,251 - - - (377) 77,151
Operating profit/(loss) 15,650 461 (5) (27) (9) (5,634) 10,436
Interest revenue - - - - - 906 906
Finance cost - - - - - (783) (783)
Other financial losses - - - - - (16,330) (16,330)
Profit/(Loss)before tax 15,650 461 (5) (27) (9) (21,841) (5,771)
Tax - - - - - (8,571) (8,571)
Profit/(Loss) for the period 15,650 461 (5) (27) (9) (30,412) (14,342)
Segment assets 375,466 471,144 5,942 7,309 25,738 70,740 956,339
Segment liabilities 29,929 27,187 30 693 637 328,570 387,046
Six months ended 30 June 2008
Thailand Indonesia Philippines Lao PDR Vietnam Other Total
$'000s $'000s $'000s $'000s $'000s $'000s $'000s
Revenue (external) 12,250 34,595 - - - - 46,845
Operating profit/(loss) 8,615 2,178 (33) (38) (5) (7,585) 3,132
Interest revenue - - - - - 3,865 3,865
Finance cost - - - - - (2,687) (2,687)
Other financial losses - - - - - (466) (466)
Profit/(Loss)before tax 8,615 2,178 (33) (38) (5) (6,873) 3,844
Tax - - - - - (10,488) (10,488)
Profit/(Loss) for the period 8,615 2,178 (33) (38) (5) (17,361) (6,644)
Segment assets 414,631 342,346 10,660 7,161 4,546 60,461 839,805
Segment liabilities 15,608 183,686 421 2,192 235 179,448 381,590
Year ended 31 December 2008
Thailand Indonesia Philippines Lao PDR Vietnam Other Total
$'000s $'000s $'000s $'000s $'000s $'000s $'000s
Revenue (external) 40,452 60,301 - - - - 100,753
Operating loss (40,496) (887) (22,748) (72) (10) (17,684) (81,897)
Interest revenue - - - - - 5,814 5,814
Finance cost - - - - - (2,953) (2,953)
Other financial gains - - - - - 3,564 3,564
Loss before tax (40,496) (887) (22,748) (72) (10) (11,259) (75,472)
Tax - - - - - 8,977 8,977
Loss for the year (40,496) (887) (22,748) (72) (10) (2,282) (66,495)
Segment assets 357,913 464,345 6,042 10,802 22,879 77,830 939,812
Segment liabilities 17,200 28,778 265 755 2,522 308,189 357,709
4. Revenue
Revenue, excluding interest revenue of $906,000 (1H'08: $3,865,000, FY'08:
$5,814,000), comprises:
Six Months ended 30 June Six Months ended 30 June Year ended 31
2009 2008 December 2008
$'000s $'000s $'000s
Sales of Oil 64,835 27,673 62,218
Sales of Gas 12,692 19,172 38,535
Realised loss on hedges (376) - -
Total Revenue (excluding Interest Revenue) 77,151 46,845 100,753
5. Cost of sales
Cost of Sales comprises:
Six Months ended 30 June Six Months ended 30 June Year ended 31
2009 2008 December 2008
$'000s $'000s $'000s
Operating Costs 25,183 14,198 42,573
Royalty Payable 4,911 1,531 4,254
Amortisation of Oil and Gas Properties 28,884 9,537 27,725
Impairment - - 55,000
Overlift/(Underlift) 2,612 491 (1,303)
Movement in inventories of Oil (75) - (2,697)
Total cost of sales 61,515 25,757 125,552
Royalties of $4,073,000 (1H'08: $1,531,000, FY'08: $3,113,000) were payable in
respect of certain of the Group's Thailand assets and in accordance with the
applicable Thailand tax regulations, was deductible as an advance payment of
income tax to the extent income tax was payable (see note 7).
6. Other Financial Gains and Losses
Six Months ended 30 June Six Months ended 30 June Year ended 31
2009 2008 December 2008
$'000s $'000s $'000s
Financial exchange gains/(losses) 37 (466) 1,533
Mark to market movements (16,367) - 3,031
Total other financial gains/(losses) (16,330) (466) 3,564
Mark to market movements for the first half of 2009 are explained in the
financial review.
7. Tax
The tax charge for the six month period of $8,571,000 (1H'08: $10,488,000, FY'08
credit: $8,977,000) comprised corporate income tax of $14,993,000 (1H'08:
$8,688,000, FY'08: $14,651,000) and deferred tax of $6,422,000 (1H'08:
$1,800,000, FY'08 net credit: $23,628,000) primarily arising from the Group's
Indonesia and Thailand operations. The tax charge/(credit) can be reconciled to
(loss)/profit before tax per the income statement as follows:
Six Months ended 30 June Six Months ended 30 June Year ended 31
2009 2008 December 2008
$'000s $'000s $'000s
(Loss)/Profitbefore tax (5,771) 3,844 (75,472)
Applicable rate of tax 28% 29% 28.5%
Tax at applicable rate of tax (1,616) 1,115 (21,509)
Tax effect of:
Items which are not deductible for tax 6,913 5,751 18,783
UKlosses not recognised 682 512 306
Foreign profits not recognised (431) 508 276
Royalty tax credit (469) (888) (1,774)
Different foreign tax rates 3,492 3,490 (5,059)
Total income tax charge/(credit) 8,571 10,488 (8,977)
The average applicable tax rate is assumed as 28% being the UK corporation tax
rate for the period since 1 April 2008.
8. Loss per share
The calculation of the basic and diluted loss per share is based on the
following data:
Units Six months to 30 June 2009 Six months to 30 June 2008 Year to 31 December 2008
Loss for the purpose of basic and diluted earnings per $'000s (14,342) (6,644) (66,495)
share being the net loss attributable to equity holders of
the parent
Weighted average number of ordinary shares for the purpose $'000s 152,781 106,399 126,268
of basic and diluted earnings per share(1)
Loss per ordinary share
Basic and Diluted $'s (0.09) (0.06) (0.53)
1. As there is a loss for the period, there is no difference
between the basic and diluted loss per share. Potentially
dilutive ordinary shares, in respect of the Company's PSP,
for the six month period were 4,567,509 (1H'08: 2,620,212,
FY'08: 2,502,959).
9. Intangible assets
30 June 30 June 31
2009 2008 December 2008
$'000s $'000s $'000s
Exploration and evaluation
At 1 January 214,814 54,523 54,523
Additions 11,846 130,478 206,770
Transfers to property, plant and equipment - - (7,414)
Costs written off - (10,226) (39,065)
Net book amount at end of period 226,660 174,775 214,814
10. Property, plant and equipment
Oil and gas properties Other fixed assets Total netbookamount
Cost Amortisat'n Total Cost Depreciat'n Total
$'000s $'000s $'000s $'000s $'000s $'000s $'000s
1 January 2008 141,725 (22,998) 118,727 1,756 (592) 1,164 119,891
Additions for the period 421,457 - 421,457 82 - 82 421,539
Charge for the period - (9,537) (9,537) - (247) (247) (9,784)
30 June 2008 563,182 (32,535) 530,647 1,838 (839) 999 531,646
Additions for the period 86,373 - 86,373 25 - 25 86,398
Transfers from intangible assets 7,414 - 7,414 - - - 7,414
Charge for the period - (73,188) (73,188) - (132) (132) (73,320)
31 December 2008 656,969 (105,723) 551,246 1,863 (971) 892 552,138
Additions for the period 54,337 - 54,337 395 - 395 54,732
Charge for the period - (28,884) (28,884) - (317) (317) (29,201)
30 June 2009 711,306 (134,607) 576,699 2,258 (1,288) 970 577,669
11. Borrowings
30 June 30 June 31
2009 2008 December 2008
$'000s $'000s $'000s
Principal repayable on maturity 174,343 160,918 160,918
Less deferred fees (3,600) (3,396) (3,902)
Total borrowings 170,743 157,522 157,016
Less amounts due withinone year (15,988) (19,069) -
Total longterm borrowings 154,755 138,453 157,016
Net debt
30 June 30 June 31
2009 2008 December 2008
$'000s $'000s $'000s
Longterm borrowings 154,755 138,453 157,016
Add amounts due within one year 15,988 19,069 -
Less cash and cash equivalents (59,194) (55,566) (103,012)
Total net debt 111,549 101,956 54,004
12. Equity
Share capital as at 30 June 2009 amounted to $29,844,000 (FY'08 $29,844,000).
The number of shares in issue is 152,781,255 (FY'08: 152,751,255).
13. Post Balance Sheet Events
On 24 July 2009, the Group purchased further commodity price hedges; a zero cost
collar for 1,500 bpd with a put and call strike price of $60.00/bbl and
$90.50/bbl respectively.
On 11 August 2009, the Glagah-Kambuna gas-condensate field in Indonesia came on
stream.
On 13 August 2009, the Group announced it had completed drilling operations on
the South Sebuku-1 exploration well. The well tested gas at a rate of 10.9
MMscfd and has been suspended as a potential future producer pending further
appraisal work expected in 2010.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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