TIDMAEN
RNS Number : 1331K
Andes Energia PLC
19 September 2016
19 September 2016
ANDES ENERGIA PLC
("Andes" or the "Company" or with its subsidiaries the
"Group")
UNAUDITED INTERIM RESULTS TO 30 JUNE 2016
Andes (AIM: AEN; BCBA: AEN), the Latin American E&P group,
announces its unaudited interim results for the six month period
ending 30 June 2016.
Operational Review
Period highlights
-- 6% increase in average daily production from 3,287* boepd in
the first six months of 2015 to 3,481* boepd in the first six
months of 2016
-- Average oil production of 2,322 bpd in Argentina; average net
price received US$60.8/bbl
-- Average oil production of 695 bpd in Colombia; average net
price received US$33.3/bbl
-- Average gas production of 464 boepd in Colombia; average price received US$19.6/boe (US$2.89MBTU)
-- 44 development wells drilled on the Chachahuen licence in
Argentina, in partnership with YPF, all successfully brought into
production
-- 4 exploration wells drilled on the Chachahuen licence of
which 3 are located in the Chachahuen Sur block and 1 in the
Chachahuen Centro block
-- Revenues of US$34.2 million for the six months ending 30 June
2016 compared to US$32.5 million for the corresponding period last
year; an increase of 5%
-- EBITDA of US$7.7 million for the six months ending 30 June
2016 compared to US$5.5** million for the corresponding period last
year; an increase of 40%
-- Half year end oil prices being received: Argentina $61.3/bbl; Colombia $34.1/bbl
Post period highlights
-- A further 15 development wells drilled on the Chachahuen licence, all now producing
-- Ongoing well testing of 2 Chachahuen exploration wells
-- 1 exploration well "Cerro Morado Este x-1" was spudded on 5
July with the main target to investigate the Centenario formation
and is currently under extended production testing
-- Discussions ongoing with YPF regarding new Development
Program at Chachahuen for the next 2-3 years
Alejandro Jotayan, CEO, commented:
"Andes continues to grow through the development of its assets
and in particular the development of the Chachahuen licence, which
has driven production higher against a backdrop of higher domestic
oil prices compared to international prices. Furthermore, the new
government is stimulating activity in Argentina, which we believe
will lead to new and increased investment in the country and help
drive value from our 250,000 net acres in the Vaca Muerta. "
*Includes 100% of Interoil's net production in which Andes holds
a 26% indirect controlling interest
**Before exceptional item of US$1.3 million and one time
settlement fee of US$4 million, to ensure consistency with 2015
comparatives
Enquiries:
Andes Energia plc Nicolas Mallo Huergo, T: +54 11
Chairman 5530 9920
Alejandro Jotayan,
CEO
Billy Clegg, Head
of Communications
Stockdale Securities Antonio Bossi T: +44 20
David Coaten 7601 6100
Camarco Gordon Poole T: +44 20
3757 4980
Qualified Person Review
In accordance with AIM guidance for mining, oil and gas
companies, Mr. Juan Carlos Esteban has reviewed the information
contained in this announcement. Mr. Juan Carlos Esteban, an Officer
of the Group, is a petroleum engineer with over 30 years of
experience and is a member of the SPE (Society of Petroleum
Engineers).
Note to Editors:
Andes Energia plc is an oil and gas exploration and production
company focused on onshore assets in South America with a market
capitalisation of circa GBP90m. The Company has its main operations
in Argentina and Colombia.
The Company has approximately 25* MMbbls of conventional 2P
reserves, and it also has certified prospective resources of 640
MMboe, primarily in the Vaca Muerta unconventional development in
Argentina and over 7.5 million acres across South America.
The Company has approximately 250,000 net acres in the Vaca
Muerta formation, which is the second largest shale oil deposit in
the world and the only producing shale oil deposit outside of North
America, currently producing 45,000 boepd. Over 300 wells have
already been drilled and fracked in the Vaca Muerta formation.
Andes is the only AIM quoted company on the London Stock
Exchange with exposure to the Vaca Muerta shale.
The Company currently produces approximately 3,525* boepd in
Argentina and Colombia from six conventional fields in Argentina
and two in Colombia, with positive cash flows generated.
*Includes 100% of Interoil's net reserves and production in
which Andes holds a 26% indirect controlling interest
Chief Executive Officer's Review
Introduction
We have made significant progress in the first half of 2016 with
48 wells drilled, which has driven production higher. In Argentina,
we are receiving over $60 per barrel of oil produced. The new
pro-business administration is improving foreign capital inflows,
some of which will be deployed in the oil industry and specifically
the Vaca Muerta shale formation where we have 250,000 net
acres.
Oil and Gas Interests
Production
Andes's production base is diverse. The Company now produces
from 2 countries, from 8 oil fields and 269 wells. Production in
the period increased 6%, with average daily production of 3,481
boepd for the period compared to 3,287 boepd* in the first half of
2015. Oil production in Argentina averaged 2,322 bpd, with average
net prices of US$60.8/bbl; oil and gas production in Colombia
averaged 1,159* boepd, with average oil net prices of US$33.3/bbl
and gas average prices of US$19.6/boe (US$2.89MBTU).
Strategy
Andes has net 2P reserves of 25* MMbbls and certified resources
of 640 MMboe mostly in the Vaca Muerta shale, where Andes holds
250,000 net acres in the oil window. We are making considerable
progress in line with our stated strategy to develop our 2P reserve
base to increase production and strengthen cash flows of the
company so that capital can be deployed to convert resources into
cash generating reserves and continue developing our acreage in the
Vaca Muerta.
Argentina
Chachahuen
Development drilling
The 2014-2016 Chachahuen development program, in joint venture
with YPF, was accelerated in 2016, having up to 4 rigs working
simultaneously in the field during the first half of the year. In
the period 43 new producing wells were drilled and successfully
completed. At the end of the period there were 133 wells on stream
producing approximately 7,094 bpd (1,418 bpd net to Andes).
Enhanced Oil Recovery -Water Flood project
Under the ongoing water flood project 1 injector well was
drilled during the period and 3 reconversions from producing into
injection wells have been performed since the end of December 2015.
At the half year end, Andes reached an average rate of injection of
2,332 bpd through a total of 21 injection wells.
Exploration drilling
Current production in Chachahuen comes from less than 5% of the
total area of the licence and only one formation (Rayoso). In order
to expand the area and number of formations/horizons in production,
Andes undertook a five well exploration program on certain
prospects on the block with different targets and objectives.
Valuable information was obtained from the drilling, and two wells
were chosen to carry out a long production test in the forthcoming
weeks. The main technical results are as follows:
La Orilla x-1
The well is located approximately 17 km southeast of the first
discovery well "Chus x-2", on the "Chachahuen Sur" evaluation block
and was drilled to test a four-way closure structure at multiple
horizons investigating the complete stratigraphic column, with the
primary target the Centenario formation and the deeper Tordillo and
Lotena formations the secondary targets. The Centenario formation
occupies the eastern margin of the Neuquén Basin. The facies of
this formation is fluvial/lacustrine, typical of the basin margin
and these non-marine deposits interfinger with the marine
formations of the upper part of the Mendoza Cycle and with the
evaporitic facies of the Rayoso Cycle.
The well reached a total depth of 1,353 metres and encountered
oil and gas shows in the lower Centenario, Tordillo and Lotena
formations. During the completion stage, the deeper horizon of the
Lotena formation (depth 1,266 metres) was tested for intermittent
natural flows of gas and water, with the gas flared at the
location. A production string was installed in order to perform
extended well tests to define productivity.
Remanso del Colorado x-1
The well is situated approximately 9.5 km southeast of the
discovery well "Chus x-2" on the "Chachahuen Sur" evaluation block
with the primary target to investigate the sandstone of cycle 1 of
the Rayoso formation into the combined structural/stratigraphic
traps where the updip seal is the claystones of the Neuquen Group
above an unconformity.
The well was drilled to a total depth of 2,418 metres
investigating the complete stratigraphic column. A comprehensive
well test program was carried out testing separately the following
formations: Rayoso, Agrio, Mulichinco, and an intrusive of the Vaca
formation. Formation water was recovered from each one, whilst the
deeper horizon of the Group Cuyo formation tested for natural flows
of gas and water with the gas flared at the location. An extended
well test is planned to define productivity.
Cerro Redondo x-1
The well is situated approximately 4.3 km northeast of the
discovery well "Chus x-2" on the "Chachahuen Sur" evaluation block
with the primary target to investigate the sandstone of cycle 1 of
the Rayoso formation into the combined structural/stratigraphic
traps where the updip seal is the claystones of the Neuquen Group
above an unconformity.
The well was drilled to a total depth of 1,810 metres
investigating the complete stratigraphic column. Oil shows were
seen during the drilling process, and the shallow horizon
encountered good quality reservoir sandstone with a net oil pay of
6 metres. The well was cased at a depth of 845 metres to test the
Rayoso formation. After fracture stimulation the well produced by
natural flow 135 bpd with a water cut of approximately 15%. A
buildup test was performed to further evaluate the potential
reservoir properties of cycle 1 of the Rayoso formation.
The well came on stream on 27 June and after an initial clean up
period produced at a rate of 81 bpd. This oil discovery is
currently flowing at 95 bpd.
An appraisal program and extensive follow-up exploration
activities will now be considered targeting cycle 1 of the Rayoso
formation.
Cerro Montoso x-1
The well is located approximately 37 km northeast of the
discovery well "Chus x-2", on the "Chachahuen Centro" block and was
drilled to test a three way closure against a bounding fault
structure at multiple horizons with the primary target the lower
Centenario formation and the deeper Tordillo formation the
secondary target.
The well was drilled to a total depth of 980 metres. Lost
circulation was encountered whilst drilling and no oil shows were
seen. The well was cased and formation water was recovered from the
Centenario and Tordillo formations through swabbing. The well was
subsequently plugged and abandoned.
Oil production
Oil production increased 65%, from 4,235 bpd (847 bpd net to
Andes) in the first semester of 2015 to 6,975 bpd (1,395 bpd net to
Andes) in the first half of 2016, with 43 new producing wells
drilled in the period. A total of 133 producing wells were on
stream at the end of the period.
Puesto Pozo Cercado and Chañares Herrados blocks - Mendoza
Oil production decreased 7% during the period, from 1,645 bpd
during the first half of 2015 (821 bpd net to Andes) to 1,533 bpd
(765 bpd net to Andes) in the first six months of 2016.
Vega Grande - Mendoza
In Vega Grande oil production remained stable, going from 59 bpd
during first semester of 2015 to 58 bpd in the first six months of
2016. Oil production was kept at the same level minimising oil
production losses. The oilfield was kept operational during the
whole winter season, despite severe climatic conditions. Andes
holds a 100% working interest in the block.
La Brea (Puesto Muñoz) - Mendoza
In La Brea (Puesto Muñoz), oil production showed a minor
decrease of 6 bpd, going from 61 bpd in 2015 first semester to 56
bpd during the first half of 2016. Production was kept at the same
level through the application of acid stimulations in PMu.a-7 well.
Andes holds a 100% working interest in the block.
El Manzano West (Agrio formation) - Mendoza
In El Manzano (Agrio formation), oil production decreased 31%
during the period, falling from 44 bpd during the first semester of
2015 to 30 bpd in 2016 first half. Andes holds a 100% working
interest in production from the Agrio Formation.
El Manzano West (Other formations) - Mendoza
In a joint venture with YPF, the licence's block operator,
production from the El Manzano West block decreased 54% (total of
22 bpd), falling from 40 bpd during the first semester of 2015 to
18 bpd during 2016 first half. Andes holds a 40% working interest
in production from all formations other than the Agrio formation,
including Vaca Muerta.
Ñirihuau block - Chubut
Andes has fulfilled the work commitments agreed with the Chubut
Province for the first exploration period and is currently awaiting
the Province's approval for the proposed work program for the next
exploration period.
Colombia
Andes has interests in 13 exploration licences and 2 producing
licences including licences held through its 26% interest in
Interoil.
Exploration licences
Andes is currently conducting regional geological studies,
petrophysical interpretation and reprocessing of existing seismic
data on its exploration licences in Colombia. In the YDND-2 block
300 soil gas samples were collected and another 300 soil gas
samples were collected in the YDND-8 block. The sample analysis was
conducted by GeoFrontiers laboratories and reports were submitted
to the ANH. The exploration team is currently integrating and
carrying out a technical evaluation of the geological, geochemical
and geophysical data in order to define the prospectivity in these
blocks.
In blocks LLA-2, LLA-28 and LLA-79, the Agencia Nacional de
Hidrocarburos ("ANH") has approved the company's proposal to
replace the seismic acquisition commitment with high density
geochemical sampling.
In COR-6 a conciliation meeting was held on 26 May 2016 with the
ANH to consider the extrajudicial conciliation petition filed by
the company in respect of the COR-6 situation. Subject to Court
approval, agreement has been reached with the ANH, pursuant to
which Interoil has reached agreement with the ANH to transfer the
COR-6 exploration commitments of US$22 million to the Altair and
LLA-47 licences also held by the company. It should be noted that
after the period end Interoil has been advised that the Court has
not approved the agreement. The company is evaluating the
implications of this decision and the different legal alternatives
it has to protect its interest.
The commitments include:
1) High density geochemical sampling of 30,000 surface points to
be completed by March 2017 with 10,000 samples (80 km(2)) to be
taken on Altair and 20,000 samples (447 km(2)) on LLA-47.
2) Drilling of 1 stratigraphic well on the Altair licence to be
completed by April 2018.
3) Drilling of 2 exploratory wells on the Altair licence to be
completed by April 2018.
The company will be required to increase the guarantees on the
Altair and LLA-47 licences consistent with these additional
commitments.
Paraguay
Based on an analysis of the data collected and our strategy to
prioritise low risk projects at a time of low international oil
prices, Andes's Management has decided to relinquish the Itapua
licence.
Financial Highlights
Period ended 30 June 2016 2015
------------------------------ ----- --------
US$m US$m
------------------------------ ----- --------
Revenue 34.2 32.5
------------------------------ ----- --------
Operating profit/(loss) 1.5 **(0.8)
------------------------------ ----- --------
EBITDA (see note 6) 7.7 **5.5
------------------------------ ----- --------
Net operating cash generated
from operations 13.6 5.3
------------------------------ ----- --------
** Before exceptional item of US$1.3 million and one time
settlement fee of US$4 million, to ensure consistency with 2015
comparatives
Revenue has increased to US$34.2 million for the first 6 month
period of 2016 compared to US$32.5 million in the same period last
year. Revenues from Andes's underlying operations excluding
Interoil increased by 16% from US$22.7 million to US$26.3 million
primarily from the increased production on the Chachahuen licence
whilst Interoil's revenues fell by 19% from US$9.8 million to
US$7.9 million primarily due to a fall in production and lower oil
prices.
The group recorded an operating profit of US$1.5 million
representing an increase of US$2.3 million compared to the 2015
operating loss of US$**0.8 million. This increase is derived
primarily from Andes's operating activities excluding Interoil.
Administrative costs in the period have fallen 37% compared to the
comparative period last year.
EBITDA increased by 40% to US$7.7 million from US$5.5 million in
the comparative period last year. Andes excluding Interoil
contributed EBITDA of US$5.4 million compared to US$2.5 million in
2015, a 116% increase; Interoil EBITDA of US$2.3 million compared
to US$3.0 million in 2015.
The net loss for the group increased from US$3.5 million for the
comparative period in 2015 to US$9.2 million 2016. The main reasons
for this resulted from an increase of US$0.9 million in finance
costs; a decrease in finance income of US$2.2 million; and an
increase in unrealised net exchange losses of US$ 3.9 million (a
non-cash item) primarily resulting from the weakening of GBP
against the US$ in relation to US$ denominated loans held by group
companies with a functional currency of GBP.
The Group's total assets have decreased by US$75 million from
US$318 million, at 30 June 2015 to US$243 million as at 30 June
2016 reflecting the impact of the devaluation of the Argentine
Peso. The devaluation of the Argentine Peso resulted in US$56
million of exchange losses (a non-cash item) being recognised in
comprehensive loss for the 12 months ending 30 June 2016.
At the period end the Group had cash resources of US$19.1
million compared to US$21.7 million at 30 June 2015, of which
US$10.0 million is restricted as security for stand by letters of
credit to support guarantees in Colombia compared to US$11.0
million at 30 June 2015.
Andes's borrowings fell by US$ 12.5 million, from US$ 65.4 to
US$52.9 million, while Interoil, in which Andes holds a 26.01%
interest, fell by US$1.4 million, from US$ 44.4 to US$43.0 million
(which is ring fenced from the rest of the Group). It should also
be noted that the majority of the finance costs of US$9.5 million
are accrued costs with only US$0.9 million satisfied in cash during
the period.
Outlook
The Board is pleased with the overall results delivered by the
development program carried through in the Chachahuen licence. The
team is currently in discussions with YPF regarding a possible new
development program to be put in place, which will lead to another
increase in production from this important field. The increased
production rate and the successful ongoing water flood program in
the Chachahuen licence, together with the reduction of production
losses in other assets of the Company, augurs well for the future.
The Company is pleased with the results of the latest exploration
program on the Chachahuen block, which have opened the possibility
to develop new horizons.
The business environment in Argentina is improving under the new
pro-business administration. Foreign capital is beginning to flow
into the country and into the oil industry. This trend augurs well
for the future development of the vast Vaca Muerta shale formation;
of which Andes has an interest in a very valuable 250,000 net
acres.
Alejandro Jotayan
Chief Executive Officer
19 September 2016
*Includes 100% of Interoil's net reserves in which Andes holds a
26% indirect controlling interest
Group income statement for the period ended 30 June 2016
30-Jun-16 30-Jun-15 31-Dec-15
US$'000 US$'000 US$'000
Revenue 34,195 32,488 66,815
Production cost (26,008) (22,608) (45,705)
Gross profit 8,187 9,880 21,110
------------------------------- ---------- ---------- ----------
Other operating income 347 4,674 4,010
Exceptional items - 1,309 -
Total other operating
income 347 5,983 4,010
------------------------------- ---------- ---------- ----------
Distribution costs (1,310) (2,218) (4,657)
Administrative expenses (5,770) (9,162) (17,626)
---------- ---------- ----------
Operating profit 1,454 4,483 2,837
Finance income 1,737 3,945 1,109
Finance costs (9,523) (8,625) (18,272)
Exchange (loss)/gain (3,204) 682 1,879
---------- ---------- ----------
(Loss)/profit before taxation (9,536) 485 (12,447)
Taxation 331 (3,979) (5,938)
----------
Loss for the year from
continuing operations (9,205) (3,494) (18,385)
---------- ---------- ----------
Loss attributable to:
Equity holders of the
parent (8,878) (3,756) (15,226)
Non-controlling interests (327) 262 (3,159)
(9,205) (3,494) (18,385)
========== ========== ==========
Loss per ordinary share Cents Cents Cents
Adjusted basic and diluted
loss per share (1.47) (0.92) (2.68)
Basic and diluted loss
per share (1.47) (0.68) (2.68)
Consolidated statement of comprehensive income for the period
ended 30 June 2016
30-Jun-16 30-Jun-15 31-Dec-15
US$'000 US$'000 US$'000
Loss for the period (9,205) (3,494) (18,385)
Translation differences (10,570) (11,493) (56,869)
Total comprehensive loss
for the period (19,775) (14,987) (75,254)
---------- ---------- ----------
Total comprehensive loss
attributable to:
Equity holders of the
parent (19,448) (15,249) (72,095)
Non-controlling interests (327) 262 (3,159)
(19,775) (14,987) (75,254)
========== ========== ==========
The loss on exchange results primarily from the revaluation of
intangible assets and property, plant and equipment that are
carried in Argentine pesos. This resulted in a drop in the carrying
value of these intangible assets and property, plant and equipment
but is not indicative of an impairment in value.
Consolidated statement of financial position as at 30 June
2016
30-Jun-16 30-Jun-15 31-Dec-15
US$'000 US$'000 US$'000
Non-current assets
Intangible assets 96,112 154,659 109,258
Property, plant and equipment 92,595 103,665 94,145
Available for sale financial
assets 5,604 1,667 5,599
Trade and other receivables 9,828 10,932 10,039
Deferred income tax assets 1,111 1,041 1,547
Total non-current assets 205,250 271,964 220,588
---------- ---------- ----------
Current assets
Inventories 1,113 1,813 1,954
Available for sale financial
assets 1,223 3,782 1,414
Trade and other receivables 16,583 18,312 14,088
Restricted cash 9,087 10,713 9,593
Cash and cash equivalents 10,030 11,018 17,702
Total current assets 38,036 45,638 44,751
---------- ---------- ----------
Current liabilities
Trade and other payables 30,990 27,591 22,644
Financial liabilities 18,373 25,726 22,259
Provisions 691 1,260 691
Total current liabilities 50,054 54,577 45,594
---------- ---------- ----------
Non-current liabilities
Trade and other payables 17,123 8,434 18,169
Financial liabilities 77,534 84,120 76,767
Deferred income tax liabilities 31,099 44,553 38,005
Provisions 3,888 6,013 3,596
Total non-current liabilities 129,644 143,120 136,537
---------- ---------- ----------
Net assets 63,588 119,905 83,208
---------- ---------- ----------
Capital and reserves
Called up share capital 98,414 90,225 98,414
Share premium account 86,865 73,448 86,865
Other reserves (136,993) (81,047) (126,423)
Retained earnings 12,962 31,109 21,685
Equity attributable to
equity holders of the
parent 61,248 113,735 80,541
Non-controlling interests 2,340 6,170 2,667
Total equity 63,588 119,905 83,208
========== ========== ==========
Unaudited consolidated statement of changes in equity for the
period ended 30 June 2016
Capital and reserves Share Share Retained Other Attributable Non Total
to equity
capital premium earnings reserves holders controlling
of the
parent interests
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
At 1 January 2015 90,164 73,248 34,700 (69,554) 128,558 - 128,558
-------- -------- --------- ------------ ------------- -------------- ----------
Loss for the period - - (3,756) - (3,756) 262 (3,494)
Translation differences - - - (11,493) (11,493) - (11,493)
Total comprehensive
loss for the period - - (3,756) (11,493) (15,249) 262 (14,987)
-------- -------- --------- ------------ ------------- -------------- ----------
Issue of ordinary
shares 61 200 - - 261 - 261
Fair value of share
based payments - - 165 - 165 - 165
Acquisition of subsidiary - - - - - 5,908 5,908
At 30 June 2015 90,225 73,448 31,109 (81,047) 113,735 6,170 119,905
-------- -------- --------- ------------ ------------- -------------- ----------
Loss for the period - - (11,470) - (11,470) (3,421) (14,891)
Translation differences - - - (45,376) (45,376) - (45,376)
Total comprehensive
loss for the period - - (11,470) (45,376) (56,846) (3,421) (60,267)
-------- -------- --------- ------------ ------------- -------------- ----------
Issue of ordinary
shares 8,189 13,417 - - 21,606 - 21,606
Fair value of share
based payments - - 167 - 167 - 167
Acquisition of subsidiary - - - - - (1,255) (1,255)
Reduction of interest
in subsidiary - - 1,879 - 1,879 1,173 3,052
At 31 December 2015 98,414 86,865 21,685 (126,423) 80,541 2,667 83,208
-------- -------- --------- ------------ ------------- -------------- ----------
Loss for the period - - (8,878) - (8,878) (327) (9,205)
Translation differences - - - (10,570) (10,570) - (10,570)
Total comprehensive
loss for the period - - (8,878) (10,570) (19,448) (327) (19,775)
-------- -------- --------- ------------ ------------- -------------- ----------
Fair value of share
based payments - - 155 - 155 - 155
At 30 June 2016 98,414 86,865 12,962 (136,993) 61,248 2,340 63,588
-------- -------- --------- ------------ ------------- -------------- ----------
Other reserves Merger Warrant Reverse Translation Deferred Total
reserve reserve acquisition reserve Consideration other
reserve Reserve reserves
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
At 1 January 2015 55,487 2,105 - (133,172) 6,026 (69,554)
-------- --------- ------------ ------------- -------------- ----------
Translation differences - - - (11,493) - (11,493)
Total comprehensive
loss for the period - - - (11,493) - (11,493)
-------- --------- ------------ ------------- -------------- ----------
At 30 June 2015 55,487 2,105 - (144,665) 6,026 (81,047)
-------- --------- ------------ ------------- -------------- ----------
Translation differences - - - (45,376) - (45,376)
Total comprehensive
loss for the period - - - (45,376) - (45,376)
-------- --------- ------------ ------------- -------------- ----------
At 31 December 2015 55,487 2,105 - (190,041) 6,026 (126,423)
-------- --------- ------------ ------------- -------------- ----------
Translation differences - - - (10,570) - (10,570)
Total comprehensive
loss for the year - - - (10,570) - (10,570)
-------- --------- ------------ ------------- -------------- ----------
At 30 June 2016 55,487 2,105 - (200,611) 6,026 (136,993)
-------- --------- ------------ ------------- -------------- ----------
Consolidated cash flow statement for the period ended 30 June
2016
30-Jun-16 30-Jun-15 31-Dec-15
US$'000 US$'000 US$'000
Cash generated from operations 13,941 5,781 18,751
Tax paid (380) (502) (643)
Cash flows generated from
operating activities 13,561 5,279 18,108
---------- ---------- ----------
Cash flows from investing
activities
Purchase of property, plant
and equipment (11,852) (8,596) (24,418)
Proceeds from sale of property,
plant and equipment 6 - 17
Proceeds from sale of interest
in subsidiary - - 814
Purchase of exploration
assets (846) (425) (2,233)
Purchase of financial assets (738) (2,318) (6,402)
Acquisition of subsidiary
net of cash acquired - 16,863 12,018
Proceeds from sale of investments
in group companies - - 3,128
Net cash used in /(generated
from) investing activities (13,430) 5,524 (17,076)
---------- ---------- ----------
Cash flows from financing
activities
Repayments of borrowings (14,250) (3,350) (1,794)
Funds from borrowing 7,588 5,335 6,107
Interest paid (872) (1,943) (837)
Interest received 1 18 392
Proceeds from issue of shares - 261 12,315
Net cash (used in)/generated
from financing activities (7,533) 321 16,183
---------- ---------- ----------
Exchange losses on cash
and cash equivalents (777) (37) (564)
Net (decrease)/increase
in cash and cash equivalents (8,179) 11,087 16,651
Cash and cash equivalents
at the beginning of the
period 27,296 10,644 10,644
Cash and cash equivalents
at the end of the period 19,117 21,731 27,295
---------- ---------- ----------
Notes
1. Basis of preparation
The Group consolidates the financial statements of the Company
and its subsidiary undertakings.
The financial information has been prepared under the historical
cost convention in accordance with International Financial
Reporting Standards (IFRSs). The financial information set out in
this half-yearly report does not constitute statutory accounts as
defined in Section 434 of the Companies Act 2006. The same
accounting policies, presentation and methods of computation are
followed in this unaudited interim condensed consolidated report as
were applied in the Group's annual financial statements for the
year ended 31 December 2015. The auditor's report on those
financial statements was unqualified and did not contain any
statements under section 498(2) or section 498(3) of the Companies
Act 2006.
2. Segment reporting
2016 2015
--------------------------------------------- ---------------------------------------------
Argentina Colombia Unallocated Total Argentina Colombia Unallocated Total
Analysis of
revenue and
profit: Corporate Corporate
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Revenue 26,268 7,927 - 34,195 22,727 9,761 - 32,488
---------- --------- ------------ -------- ---------- --------- ------------ --------
Operating
profit/(loss) 2,429 555 (1,530) 1,454 1,390 7,241 (4,148) 4,483
Finance income 1,517 - 220 1,737 1,285 2,494 166 3,945
Finance costs (4,352) (453) (4,718) (9,523) (2,208) (3,586) (2,831) (8,625)
Exchange (loss)/gain 759 (133) (3,830) (3,204) (12) - 694 682
---------- --------- ------------ -------- ---------- --------- ------------ --------
Loss before
tax 353 (31) (9,858) (9,536) 455 6,149 (6,119) 485
Taxation (1,339) 1,670 - 331 (516) (3,463) 0 (3,979)
Loss for the
year (986) 1,639 (9,858) (9,205) (61) 2,686 (6,119) (3,494)
Less: Exceptional
gain on acquisition - - - - - - (1,309) (1,309)
Less: Settlement
fee - - - - - (4,000) - (4,000)
Add: Depreciation
and amortisation 3,655 2,611 - 6,266 4,408 1,920 - 6,328
Less: Finance
income (1,517) - (220) (1,737) (1,285) (2,494) (166) (3,945)
Add: Finance
costs 4,352 453 4,718 9,523 2,208 3,586 2,831 8,625
Add: Exchange
gains and losses (759) 133 3,830 3,204 12 - (694) (682)
Add: Tax 1,339 (1,670) - (331) 516 3,463 - 3,979
EBITDA 6,084 3,166 (1,530) 7,720 5,798 5,161 (5,457) 5,502
---------- --------- ------------ -------- ---------- --------- ------------ --------
3. Andes and Interoil
Andes Interoil Group Andes Interoil Group
30-Jun-16 30-Jun-16 30-Jun-16 30-Jun-15 30-Jun-15 30-Jun-15
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Revenue 26,268 7,927 34,195 22,727 9,761 32,488
Production cost (21,119) (4,889) (26,008) (17,747) (4,861) (22,608)
Gross profit 5,149 3,038 8,187 4,980 4,900 9,880
Other operating income 499 (152) 347 296 4,378 4,674
Exceptional gain - - - 1,309 - 1,309
Distribution costs (508) (802) (1,310) (1,067) (1,151) (2,218)
Administrative expenses (3,416) (2,354) (5,770) (6,125) (3,037) (9,162)
---------- ---------- ---------- ---------- ----------
Operating profit 1,724 (270) 1,454 (607) 5,090 4,483
Finance income 1,737 - 1,737 1,451 2,494 3,945
Finance costs (7,814) (1,709) (9,523) (5,039) (3,586) (8,625)
Exchange (loss)/exchange (3,071) (133) (3,204) 682 - 682
---------- ---------- ---------- ---------- ---------- ----------
Profit/(loss) before
taxation (7,424) (2,112) (9,536) (3,513) 3,998 485
Taxation (1,339) 1,670 331 (516) (3,463) (3,979)
---------- ----------
Loss for the year
from continuing operations (8,763) (442) (9,205) (4,029) 535 (3,494)
---------- ---------- ---------- ---------- ---------- ----------
Andes Interoil Group Andes Interoil Group
30-Jun-16 30-Jun-16 30-Jun-16 30-Jun-15 30-Jun-15 30-Jun-15
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Loss for the period
from continuing operations (8,763) (442) (9,205) (4,029) 535 (3,494)
Add: Depreciation
and amortisation 3,655 2,611 6,266 4,408 1,920 6,328
Less: Exceptional
gain - - - (1,309) - (1,309)
Less: Settlement
fee - - - - (4,000) (4,000)
Less: Finance income (1,737) - (1,737) (1,451) (2,494) (3,945)
Add: Finance costs 7,814 1,709 9,523 5,039 3,586 8,625
Add: Exchange gains
and losses 3,071 133 3,204 (682) - (682)
Add: Tax 1,339 (1,670) (331) 516 3,463 3,979
EBITDA 5,379 2,341 7,720 2,492 3,010 5,502
---------- ---------- ---------- ---------- ---------- ----------
4. Finance costs
Only US$0.3 million of the finance costs were paid in cash
during the period (2015: US$ 1.9 million). The other finance costs
were not due to be paid and relate primarily to convertible
loans.
5. Loss per share
Basic loss per share is calculated by dividing the net loss for
the period attributable to ordinary shareholders of the Group by
the weighted average number of ordinary shares outstanding during
the period. The basic and diluted loss per share are the same as
there are no instruments that have a dilutive effect on earnings.
Adjusted basic and diluted loss per share are presented after
adjustment of exceptional items.
30-Jun-16 30-Jun-15 31-Dec-15
Cents Cents Cents
Basic and diluted loss per
share (1.47) (0.68) (2.68)
Adjusted basic and diluted
loss per share (1.47) (0.92) (2.68)
US$'000 US$'000 US$'000
Loss for the period attributable
to equity holders (8,878) (3,756) (15,226)
Exceptional items - (1,309) -
Adjusted loss for the period
attributable to equity holders (8,878) (5,065) (15,226)
---------- ---------- ----------
No.'000 No.'000 No.'000
Weighted average number
of shares 605,505 551,975 569,064
Effect of dilutive warrants - - -
Diluted weighted average
number of shares 605,505 551,975 569,064
---------- ---------- ----------
No.'000 No.'000 No.'000
Potential number of dilutive
warrants 59,240 45,656 59,240
---------- ---------- ----------
6. EBITDA
30-Jun-16 30-Jun-15 31-Dec-15
US$'000 US$'000 US$'000
Loss for the period from
continuing operations (9,205) (3,494) (18,385)
Less: Exceptional gain on
acquisition - (1,309) -
Less: Settlement fee - (4,000) -
Add: Depreciation and amortisation 6,266 6,328 13,909
Less: Finance income (1,737) (3,945) (1,109)
Add: Finance costs 9,523 8,625 18,272
Add: Exchange gains and
losses 3,204 (682) (1,879)
Add: Tax (331) 3,979 5,938
EBITDA 7,720 5,502 16,746
---------- ---------- ----------
7. Comprehensive income
The translation loss primarily arises as a result of the
devaluation of the AR$ against the US$ during the period. The
carrying value of intangibles assets, other assets and liabilities
in Argentina are held in AR$ and on consolidation translated to
US$, the presentation currency. The resulting exchange gains and
losses are classified as equity and transferred to the Group's
translation reserve. This is not indicative of an impairment in the
carrying value of these assets.
8. Cash generated from operations
Group
----------------------------------
30-Jun-16 30-Jun-15 31-Dec-15
US$'000 US$'000 US$'000
(Loss)/profit for the period
before taxation (9,536) 485 (12,447)
Exceptional items - (1,309) -
----------
Loss for the period before taxation
and exceptional items (9,536) (824) (12,447)
Adjustments from operating
activities
Depreciation and amortization 6,266 6,328 13,909
Exchange movements and gains
and losses 3,320 (672) (5,434)
Revaluation of investments - 450 56
Decrease/(increase) in inventories 773 (663) (1,032)
Increase in trade and other
receivables (4,718) (3,447) (6,196)
Increase/(decrease) in creditors
and other payables 10,748 (172) 15,513
Finance costs 9,523 8,625 18,272
Finance income (1,737) (3,945) (1,109)
Movement in provisions (853) (64) (2,735)
Profit on sale of investments - - (378)
Share based payments 155 165 332
Net cash generated from operating
activities 13,941 5,781 18,751
---------- ---------- ----------
9. Other
A copy of the interim report will be made available on Andes's
website at www.andesenergiaplc.com.ar
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SFAFIWFMSESU
(END) Dow Jones Newswires
September 19, 2016 02:00 ET (06:00 GMT)
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