TIDMDGO
RNS Number : 3777V
Dragon Oil PLC
07 August 2015
7 August 2015
DRAGON OIL PLC
(the "Company" or together with its subsidiaries "Dragon Oil" or
the "Group")
2015 Interim Results
Dragon Oil plc (Ticker: DGO), an international oil and gas
exploration, development and production company, today announces
its interim financial and operational results for the period ended
30 June 2015. These results are prepared in accordance with
International Accounting Standard 34, "Interim financial reporting"
("IAS 34") as adopted by the European Union.
Financial highlights
(US$ million, unless
stated otherwise) 1H 2015 1H 2014 Change
------------------------------- -------- -------- -------
Revenue 449.9 547.0 (18%)
Operating profit 179.1 388.5 (54%)
Profit for the period 139.0 289.0 (52%)
Earnings per share, basic
(US cents) 28.26 58.79 (52%)
Interim dividend per
share (US cents) 0.00 20.00 (100%)
Capital expenditure 313.2 313.0 0.1%
Net cash generated from
operating activities 265.1 300.7 (12%)
Cash and cash equivalents
and term deposits, excluding
A&D funds 1,855.9 1,858.8 (0.2%)
------------------------------- -------- -------- -------
Operational performance
-- Average gross production rate of approximately
92,060 barrels of oil per day ("bopd")
in 1H 2015 compared to 73,440 bopd in 1H
2014;
-- Average gross production for June 2015
was 98,890 bopd (June 2014: 76,100 bopd);
-- Gross production rate of 100,658 bopd achieved
on 9 June 2015;
-- Eight wells were completed from 1 January
2015 to-date;
-- Revenue was lower by 18% primarily due
to lower realised crude oil price of US$44/barrel.
Outlook
-- Production growth target for 2015 updated
to around 15%;
-- Further seven to 10 wells expected to be
completed by the year-end;
-- Commence drilling operations by the Caspian
Driller jack-up rig;
-- Maintain an average gross production rate
of 100,000 bopd for a minimum of five years
from 2016.
Dr Abdul Jaleel Al Khalifa, Chief Executive Officer,
commented:
"Gross production has increased compared to the level in 1H 2014
on the back of strong initial flow rates from new development
wells, additional perforations in certain existing wells and the
application of jet pumping systems. The significant decline in
crude oil prices is reflected in the financial results, and we
generated US$139mn of net income, a drop of 52% from the levels
achieved in the corresponding period last year.
"We surpassed the 100,000 bopd mark on 9 June 2015 - an
achievement of which, we, the team at Dragon Oil, are very proud
of. Since then, we are hovering around that rate. Work on our
exploration assets progresses in line with programmes agreed with
our respective partners and host governments."
Update on Offer from Emirates National Oil Company Ltd L.L.C
("ENOC")
On 1 July 2015, ENOC issued a document containing (among other
things) the full terms of, and conditions to, a recommended cash
offer by ENOC of 750 pence for each Dragon Oil ordinary share not
already owned by ENOC (the "Offer") and the procedures for
acceptance (the "Offer Document") together with a form of
acceptance.
On 2 August 2015, the Board of ENOC announced a revision to the
Offer (the "Increased Offer") and declared the Increased Offer
unconditional in all respects. Under the terms of the Increased
Offer, Dragon Oil Shareholders are entitled to receive 800 pence in
cash for each Dragon Oil ordinary share.
The Increased Offer will remain open for acceptance until 3:00
p.m. (Dublin time) on 28 August 2015 (or such later time as ENOC
may determine). Dragon Oil Shareholders who have not already done
so should complete and return a Form of Acceptance as soon as
possible. Completion and return of the Form of Acceptance that
accompanied the Offer Document, being the Form of Acceptance for
the Original Offer will be treated by ENOC as an acceptance of the
Increased Offer.
For further information please contact:
Investor and analyst enquiries Media enquiries
Dragon Oil plc (+44 (0)20 Citigate Dewe Rogerson
7647 7804) (+44 (0)20 7638 9571)
Anna Gavrilova Martin Jackson
About Dragon Oil
Dragon Oil plc is an international oil and gas exploration,
development and production company, quoted on the London and Irish
Stock exchanges (Ticker symbol: DGO). Its principal producing asset
is in the Cheleken Contract Area, in the eastern section of the
Caspian Sea, offshore Turkmenistan.
Dragon Oil (Turkmenistan) Ltd., a wholly owned subsidiary of
Dragon Oil plc, holds 100% interest in, and is the operator of, the
Production Sharing Agreement for the Cheleken Contract Area. The
operational focus is on the re-development of two oil and gas
producing fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov).
The Group has exploration blocks in Tunisia, Iraq, Afghanistan,
Egypt, the Philippines and Algeria. Dragon Oil's diversification
strategy is to add exploration and production assets within Africa,
parts of Asia and the Middle East in order to create a diversified
and balanced portfolio of assets for the Group.
www.dragonoil.com
Disclaimer
This news release may contain forward-looking statements
concerning the financial condition and results of operations of
Dragon Oil. Forward-looking statements are statements of future
expectations that are based on management's current expectations
and assumptions and involve known and unknown risks and
uncertainties that could cause actual results, performance or
events to differ materially from those expressed or implied in
these statements. No assurances can be given as to future results,
levels of activity and achievements and actual results, levels of
activity and achievements may differ materially from those
expressed or implied by any forward-looking statements contained in
this report. Dragon Oil does not undertake any obligation to update
publicly or revise any forward-looking statement as a result of new
information, future events or other information.
Glossary/Definitions/Abbreviations
----------------------------------------------------------------
A&D Abandonment and Decommissioning
------------------ --------------------------------------------
bbl barrel
------------------ --------------------------------------------
bopd barrels of oil per day
------------------ --------------------------------------------
Dragon Oil Dragon Oil plc and its various subsidiary
/ the Group companies
------------------ --------------------------------------------
EPS Earnings Per Share
------------------ --------------------------------------------
mn million
------------------ --------------------------------------------
Overlifts crude oil overlifts and underlifts
and underlifts arise on differences in quantities
between the Group's entitlement production
and the production either sold or
held as inventory
------------------ --------------------------------------------
Platform large structure used to house employees
and machinery needed to drill wells
in a reservoir to extract oil and
gas for transportation to shore
------------------ --------------------------------------------
PSA Production Sharing Agreement is a
contractual arrangement for exploration,
development and production of hydrocarbon
resources in the Cheleken Contract
Area, Turkmenistan
------------------ --------------------------------------------
Sidetrack an efficient way to drill a new well
via re-entering and then deviating
from an existing wellbore with drilling
equipment to access reserves from
alternate zones or pools of hydrocarbons
------------------ --------------------------------------------
Single completion one pay zone in a development well
that produces an independent flow
path
------------------ --------------------------------------------
US cents United States cents
------------------ --------------------------------------------
US$ United States Dollars
------------------ --------------------------------------------
2015 Interim Results
Chief Executive Officer's Statement
OVERVIEW
We generated US$450mn in revenues in the first half of the year,
18% lower than during the same period in 2014. This was primarily
due to lower realised crude oil prices at US$44 per barrel given
the average Dated Brent of US$58/barrel during this period and the
weighted average discount of US$13.9/barrel between two buyers to
export our entitlement share of gross production from the Cheleken
Contract Area. This was partially offset by higher sales volumes of
10.2 million barrels of crude oil as a result of a higher
entitlement share for Dragon Oil in the Cheleken Contract Area.
Average gross production in 1H 2015 increased to 92,060 bopd and
we surpassed the 100,000 bopd mark on 9 June 2015. Since the
beginning of the year, Dragon OiI completed eight wells; two of
which were completed early in 3Q 2015 and will be contributing to
production in 2H 2015. We have also been adding perforations in
certain existing wells improving or in some instances restoring the
wells' production potential. The Group expects to commence drilling
operations using the Caspian Driller later this quarter. We plan to
drill a further seven to 10 wells before the end of the year.
We have installed four jet pumping systems and are in the
process of installing and commissioning more systems later this
year. The pilot water injection project is ongoing in the Dzheitune
(Lam) 75 area and we plan to roll out water injection programmes at
other platforms.
Total capital expenditure of the Group was US$313mn during the
period, of which US$306mn is attributable to the Cheleken Contract
Area. Fabrication of the new wellhead and production platform
Dzheitune (Lam) E is ongoing. The Dzheitune (Lam) F platform has
been installed and is ready for drilling operations. Work continues
on structural upgrades to a number of platforms to extend their
useful lives and accelerate production from these areas.
Our diversification strategy remains to screen, evaluate and
acquire development and exploration targets that fit our criteria
within Africa, parts of Asia and the Middle East, in order to
create a diversified and balanced portfolio of assets for the
Group.
OPERATIONAL OVERVIEW
DEVELOPMENT
Turkmenistan
Production and Entitlement
In 1H 2015, the gross average field production was 92,060 bopd
(1H 2014: 73,440 bopd). Eight wells were completed from 1 January
2015 to date, including two wells completed in July 2015.
The entitlement production for 1H 2015 was approximately 68% (1H
2014: 52%) of the gross production. Entitlement barrels are
finalised in arrears and are dependent on, amongst other factors,
fiscal terms of the Production Sharing Agreement, operating and
development expenditure in the period and the realised crude oil
price. Entitlement barrels are higher in 1H 2015 primarily due to
lower realised crude oil prices, coupled with increased
production.
Marketing
Dragon Oil sold 10.2 million barrels of crude oil in 1H 2015 (1H
2014: 5.9 million barrels). The sales volumes increased over the
comparable period's level as a result of higher entitlement and
changes in the lifting position.
In 1H 2015, Dragon Oil exported 87% (1H 2014: 100%) of its crude
oil production through Baku, Azerbaijan with the balance of volumes
exported through Makhachkala in Russia (1H 2014: nil).
In December 2014, the Dragon Oil Group reached one-year
agreements with two buyers for all of its anticipated entitlement
export production in 2015, achieving a diversification in its
export marketing routes, via Baku, Azerbaijan as well as via
Makhachkala, Russia. The discount to Brent is expected to be
approximately US$13.50 - US$14.00 per barrel in 2015. The current
contracts are valid until 31 December 2015 and we continue to
examine options, which include renewal of existing contracts and
the development of alternative arrangements.
The Group was in an underlift position of approximately 2.9
million barrels of crude oil as at 30 June 2015 (31 December 2014:
underlift position of 2.1 million barrels of crude oil).
Drilling
Since the beginning of the year, Dragon Oil has completed eight
wells, with a further three wells in progress, in the Dzheitune
(Lam) and Dzhygalybeg (Zhdanov) fields. The following table
summarises the results of the drilling programme:
Well Rig Completion date Depth (metres) Type Initial test rate (bopd)
------------ ------------ ----------------- --------------- ------------------------ -------------------------
Lam C/198 Neptune January 2,540 Development 1,796
------------ ------------ ----------------- --------------- ------------------------ -------------------------
Lam 13/199 Elima February 2,021 Development 1,952
------------ ------------ ----------------- --------------- ------------------------ -------------------------
Lam 13/200 Elima March 2,100 Development 2,001
------------ ------------ ----------------- --------------- ------------------------ -------------------------
Lam C/201 Neptune April 2,799 Development 1,944
------------ ------------ ----------------- --------------- ------------------------ -------------------------
Zhd A/102 Land Rig 2 June 3,745 Appraisal Temporarily suspended
------------ ------------ ----------------- --------------- ------------------------ -------------------------
Lam B/202 Elima June 2,065 Development 2,168
------------ ------------ ----------------- --------------- ------------------------ -------------------------
Appraisal/
Lam C/184A Neptune July 2,850 Development Being perforated
------------ ------------ ----------------- --------------- ------------------------ -------------------------
Appraisal/
Lam B/203 Elima July 3,730 Development Being perforated
------------ ------------ ----------------- --------------- ------------------------ -------------------------
Zhd A/103 Land Rig 2 In progress Appraisal Being drilled
------------ ------------ ----------------- --------------- ------------------------ -------------------------
Lam 4/187 Neptune In progress Appraisal / Development Being drilled
------------ ------------ ----------------- --------------- ------------------------ -------------------------
Lam B/141 Elima In progress Workover Being performed
------------ ------------ ----------------- --------------- ------------------------ -------------------------
Production has been added through additional perforations in
certain existing wells as well as four jet pump installations in
the area.
Post completion of the Dzheitune (Lam) 22/194 well by Land Rig 1
in December 2014, an additional perforation was performed in late
May followed by jet pump application in early June resulting in
current production of 1,398 bopd.
The Caspian Driller is expected to commence operations in 3Q
2015.
The Group is working with its contractor and anticipates to
resolve intermittent issues with certain critical equipment on Land
Rig 2.
Water injection project and artificial lift
The water injection pilot project is ongoing in the pilot
Dzheitune (Lam) 75 area. We are in the process of acquiring
additional water injection facilities to be installed and
commissioned in the Dzheitune (Lam) field. The aim of the water
injection programme is for pressure maintenance, to arrest
reservoir pressure decline, sustain production rates and increase
reserves recovery.
Four jet pumping systems have been installed so far in 2015 in
the Cheleken Contract Area, including one system on the Dzheitune
(Lam) 22 platform, while additional jet pumping systems are
currently being installed and expected to be commissioned during 2H
2015 on other platforms. The objective of this artificial lift
application is to increase production and enhance recovery.
In parallel, Dragon Oil is procuring electric submersible pumps
(ESP) with an aim to commence their application in a pilot in 1H
2016.
Infrastructure
Fabrication of the topside structure and jacket is ongoing for
the new wellhead and production platform Dzheitune (Lam) E. The
platform will have eight slots with provision for another four
slots to be installed later, and is suitable for drilling by a
jack-up drilling rig. It is anticipated that the platform will be
ready in 1H 2016.
Installation of the Dzheitune (Lam) F production platform is
completed and the platform is ready for drilling. Work on remaining
items is ongoing to prepare for the commissioning of the
platform.
We are currently conducting tenders to award contracts to extend
the Dzheitune (Lam) A and B platforms with an aim to add slots for
future drilling.
The project to quadruple our crude oil storage capacity at the
Central Processing Facility is ongoing. The tank farm is
anticipated to be completed in 1Q 2016, of which three tanks will
be built on a priority basis and commissioning is expected to be in
2H 2015.
The previously deferred project to build another 30-inch
trunkline from the Dzheitune (Lam) field will be re-tendered. While
the new trunkline will transport oil, water and gas, its principal
benefit is to transport more gas onshore, which otherwise would
have had to be flared. This gas will feed the planned Gas Treatment
Plant, which will have capacity to process 360 mmscf/day of gas.
The Gas Treatment Plant will be constructed over three years after
the contract has been awarded, and is expected to produce
approximately 4,000 barrels of condensate per day. The Group
believes that re-tendering for this trunkline in the current lower
oil price environment may lead to cost savings.
Dragon Oil is increasing the loading capacity at the Aladja
Jetty by installing another 16-inch pipeline and associated loading
arms to support simultaneous loading of two tankers in 2H 2015.
Within the first phase of its strategy for plugging, abandonment
and decommissioning of the old non-producing wells and
non-producing platforms in the Cheleken Contract Area, Dragon Oil
confirmed that another two non-producing old wells have already
been plugged and abandoned, bringing the total of plugged and
abandoned wells to 13 to-date. Up to 26 non-producing old wells are
scheduled to be plugged and abandoned over a three-year period
commencing in 2016. The execution of this strategy is part of the
abandonment and decommissioning activities the Group plans to
undertake to fulfil its obligations under the Production Sharing
Agreement. The cost of these activities will be charged to the
abandonment and decommissioning funds.
Gas Treatment Plant
The bids for an engineering, procurement, installation and
construction project of the Gas Treatment Plant are in the
evaluation stage. We anticipate the construction phase to take
three years after the contract is awarded.
EXPLORATION
Iraq
In 2014, the partners in Block 9 in Iraq, announced the
discovery of oil in two formations in the consortium's first
exploration well, Faihaa-1, in which Dragon Oil holds 30%. Open and
cased hole tests were conducted in the Mishrif and Yamama
formations with encouraging results. The well has been tested at
5,230 bopd on a 32"/64" choke from the Yamama reservoir. A
completion string has been run in the well and the drilling rig has
been released. The consortium plans to drill two additional
appraisal wells in 2H 2015 in order to fast track the
development.
Commencing in 2016, the operator, Kuwait Energy Company, plans
to accelerate the first production from the Faihaa field utilising
a temporary production facility.
Algeria
In 2014, Dragon Oil in partnership with ENEL Trade S.p.A.
("Enel") was awarded two exploration perimeters in Algeria,
Tinrhert Nord Perimeter (Dragon Oil 70% paying interest and
operator, Enel 30%) and Msari Akabli Perimeter (Dragon Oil 30%
paying interest, Enel 70% and operator). The contract for the
exploration and exploitation of hydrocarbons was signed on 29
October 2014. Work is ongoing to secure environmental permits,
interpret available 3D seismic data, select drilling targets and
progress the necessary tenders to enable the drilling of the first
exploration well in 2H 2016.
Egypt
Work as per the Concession Agreement is ongoing for the
exploration of the East Zeit Bay (Dragon Oil 100%), offshore the
Gulf of Suez, Egypt. We are currently employing an international
contractor to reprocess existing seismic data in the block using
advanced technologies with an aim to improve the quality of
analysis and interpretation of the data. The Group has commenced
the implementation of the approved work programme for the year.
Afghanistan
In early 2015, the consortium, comprising Dragon Oil (40%,
operator of Sanduqli block), TP Afghanistan Ltd. (TPAL, 40% and
operator of Mazar-i-Sharif block) and the Ghazanfar Group (20%),
commenced the airborne gravity and magnetic survey in both blocks,
which is expected to resume in August pending the delivery of a new
aircraft and be completed at the end of 2015.
Tunisia
The joint venture partners (Dragon Oil, 55%; Cooper Energy, 30%
and operator; and Jacka Resources Ltd, 15%) are seeking to extend
the permit for one year taking it to 6 August 2016 in order to
abandon the Hammamet-West 3 well in a rigless operation and to
acquire 500 square kilometres of 3D seismic survey to assess
further potential.
The Philippines
As we reported on 17 February 2015, the partners, Dragon Oil
(Philippines SC 63) Limited (40%), Nido Petroleum Philippines Pty
Ltd (ASX: NDO, 20% participating interest) and PNOC-EC (40% and
operator) are in the process of integrating information and data
obtained from the Baragatan-1 well into current geological models
and Dragon Oil is assessing its future interest in the block.
MATERIAL EVENTS
Update on Offer from ENOC
On 17 March 2015, Dragon Oil announced that it had received an
approach from ENOC regarding a possible offer for the entire issued
and to be issued share capital of Dragon Oil that it does not
already own. The proposal received valued Dragon Oil at 650 pence
per Dragon Oil Share. The Independent Committee rejected this
proposal, engaged in extensive discussions with ENOC, and undertook
shareholder consultation regarding the approach.
On 21 May 2015, after a series of further proposals, which were
also rejected, ENOC announced a revised proposal of 735 pence per
Dragon Oil Share. The Independent Committee considered this
proposal and again consulted with shareholders as part of its
assessment.
On 15 June 2015, the Independent Committee and ENOC announced a
recommended cash offer by ENOC of 750 pence per Dragon Oil
Share.
In coming to a view on its recommendation, the Independent
Committee had taken into account the value being offered by ENOC
and the Independent Committee's views on the current position and
the future prospects of Dragon Oil. The Independent Committee,
assisted by its financial advisers, Nomura and Davy Corporate
Finance, had modelled numerous macro and operational growth
scenarios and undertaken a detailed valuation exercise of the
assets and prospects of the Dragon Oil Group. In addition, the
Independent Committee had engaged with minority shareholders
throughout its consideration of the proposed transaction.
The Independent Committee has confidence in the management of
Dragon Oil and the future prospects of the Dragon Oil Group and was
of the view that the Offer reflected these prospects, offering
Dragon Oil minority shareholders an attractive exit price, and was
in the best interests of Dragon Oil minority shareholders as a
whole.
The document containing (among other things) the full terms of,
and conditions to, the Offer and the procedures for acceptance (the
"Offer Document") was posted by ENOC to Dragon Oil Shareholders
together with the Form of Acceptance on 1 July 2015.
As at 1:00 p.m. (Dublin time) on 31 July 2015, ENOC had received
acceptances of the Original Offer valid in all respects relating to
76,568,990 Dragon Oil Shares (the "Valid Acceptances"),
representing (i) approximately 15.5 per cent of the current issued
share capital of Dragon Oil and (ii) approximately 33.1 per cent of
the voting rights held by the Independent Shareholders on the date
of the Rule 2.5 Announcement, which ENOC may count towards the
satisfaction of the acceptance condition to the Offer. ENOC also
had intended acceptances of the Original Offer relating to
6,502,572 Dragon Oil Shares (the "Intended Acceptances"),
representing approximately 1.32 per cent of the current issued
share capital of Dragon Oil.
On 2 August 2015, the Board of ENOC announced a revision to the
original offer price of 750 pence for each Dragon Oil Share (the
"Increased Offer"). Under the terms of the Increased Offer, Dragon
Oil Shareholders are entitled to receive 800 pence in cash for each
Dragon Oil Share. The Independent Committee unanimously recommended
that minority shareholders accept the Increased Offer.
ENOC received firm irrevocable undertakings from Baillie Gifford
and Elliott Capital Advisors to accept or procure the acceptance of
the Increased Offer in respect of 64,505,038 Dragon Oil Shares
representing 13.1 per cent (in aggregate) of the issued share
capital of Dragon Oil (the "Further Irrevocables").
ENOC waived the acceptance condition set out in paragraph 2(a)
of Appendix I of the Offer Document together with the conditions
set out in paragraphs 2(b) to (i) in Appendix I of the Offer
Document and declared the Offer unconditional in all respects on 2
August 2015.
Subject to the applicable requirements being met, ENOC intends
to procure the de-listing of the Dragon Oil Shares from the Irish
Stock Exchange and the London Stock Exchange.
Dragon Oil Shareholders who have already validly accepted the
Original Offer need take no further action; their acceptances will
be treated as acceptances of the Increased Offer.
The Increased Offer will remain open for acceptance until 3:00
p.m. (Irish time) on 28 August 2015 (or such later time as ENOC may
determine).
The procedure for acceptance of the Offer is set out in
paragraph 10 (Procedure for acceptance of the Offer) of Part II of
the Offer Document and in the Form of Acceptance.
Dragon Oil Shareholders who have not already done so should
complete and return a Form of Acceptance as soon as possible.
Completion and return of the Form of Acceptance that accompanied
the Offer Document, being the Form of Acceptance for the Original
Offer will be treated by ENOC as an acceptance of the Increased
Offer.
The Offer Document and Form of Acceptance are available at
www.dragonoiloffer.com and www.dragonoil.com/investors. For the
avoidance of doubt, the content of such website is not incorporated
into, and does not form part of, this announcement.
Defined terms used but not defined in this announcement have the
meanings set out in the Offer Document.
Change of Membership of the Independent Committee
On 22 July 2015, Dragon Oil plc was notified that Mr Ahmad Al
Muhairbi had resigned from the independent committee of the Board
of Dragon Oil (the "Independent Committee") effective 13 July 2015
as a result of his appointment as a Director to the Board of ENOC
on 12 July 2015. This is as a result of a broader restructuring
process of the ENOC Board.
Mr Ahmad Al Muhairbi confirmed that he would recuse himself from
any discussions and decision-making with respect to the ENOC offer
process.
Mr Ahmad Al Muhairbi will remain on the Board of Dragon Oil as a
non-independent Non-executive Director. However, owing to his
appointment to the ENOC Board, he ceases to be a member of the
Audit Committee.
References to the Independent Committee post 13 July 2015
therefore refer to the committee comprising the three remaining
members of the Independent Committee.
Interim dividend
According to the terms of the offer set out in the Offer
Document, the offer is conditional on no dividend being
recommended, announced or declared. The Board of Dragon Oil
therefore advises that no interim dividend for 1H 2015 is being
declared.
2015 Principal risks and uncertainties
In accordance with the Transparency (Directive 2004/109/EC)
Regulations 2007, a description of the principal risks and
uncertainties facing the Group in the six months to 31 December
2015 is set out below:
-- Oil prices
The Group's primary business is the production of hydrocarbons
from the Cheleken Contract Area in the Caspian Sea, Turkmenistan.
The financial performance of the Group and its ability to fund its
exploration and development plans may, therefore, be negatively
affected by adverse movements in the price of oil. The Group
actively monitors its exposure to oil prices and retains
flexibility in sizing its development programme.
-- Export routes
Current available export routes to sell crude oil from the
Caspian Sea region to international markets are via Azerbaijan,
Russia and Kazakhstan. The Group currently exports its entitlement
of crude oil production via Azerbaijan and Russia. Opportunities to
continue using this marketing arrangement are constantly evaluated
over the longer term. At the same time, we are also evaluating
alternative export arrangements.
-- Other
Other medium to long-term principal risks and uncertainties
facing the Group include, among other risks and uncertainties,
strategic, operational, financial and compliance risks as disclosed
in the 2014 Annual Report, available on Dragon Oil's website at
www.dragonoil.com.
FINANCIAL OVERVIEW
US$mn (unless stated) 1H 2015 1H 2014 Change
============================= ======== ======== =======
Revenue 449.9 547.0 (18%)
============================= ======== ======== =======
Gross Profit 207.4 426.4 (51%)
============================= ======== ======== =======
Operating profit 179.1 388.5 (54%)
============================= ======== ======== =======
Profit for the period 139.0 289.0 (52%)
============================= ======== ======== =======
Earnings per share, basic
(US cents) 28.26 58.79 (52%)
============================= ======== ======== =======
Earnings per share, diluted
(US cents) 28.25 58.77 (52%)
============================= ======== ======== =======
Total equity 3,778.9 3,443.7 10%
============================= ======== ======== =======
Net cash from operating
activities 265.1 300.7 (12%)
============================= ======== ======== =======
Net cash used in investing
activities (154.6) (176.4) (12%)
============================= ======== ======== =======
Income Statement
Revenue
In the first half of 2015, the Group's revenue decreased by 18%
to US$449.9mn (1H 2014: US$547.0mn). The Group sold 10.2mn barrels
of crude oil (1H 2014: 5.9mn barrels) at a realised price of
US$44/bbl (1H 2014: US$93/bbl). The overall revenue decrease was
attributed to a lower realised crude oil price, significantly
offset by higher sales volumes.
Operating profit
Cost of sales increased by US$121.8mn to US$242.4mn (1H 2014:
US$120.6mn). Cost of sales includes operating and production costs
and the depletion charge. The depletion charge of US$221.4mn (1H
2014: US$133.2mn) was higher by 66% than the charge in the
corresponding period in 2014, primarily due to increased
entitlement barrels during the period. Operating and production
costs are higher by US$33.6mn primarily attributed to changes in
the lifting positions. The operating costs per barrel have
marginally reduced over the comparable period on account of higher
production.
The Group generated an operating profit of US$179.1mn in 1H 2015
(1H 2014: US$388.5mn), which was lower by 54% over the comparable
period. The decrease in operating profit of US$209.4mn was
primarily on account of lower revenue and higher cost of sales.
Administrative expenses (net of other income) at US$28.3mn (1H
2014: US$19.9mn) were higher by 42% on account of increased
manpower costs and higher corporate activities. A provision for
impairment of US$0.04mn (1H 2014: US$18.1mn) was recognised towards
the exploration and evaluation costs of the Baragatan-1A well,
offshore the Philippines. The exploration well did not discover
commercial hydrocarbons and has been plugged and abandoned. The
future interest in the block remains to be assessed.
Profit for the period
The profit for the first six months of 2015, at US$139.0mn (1H
2014: US$289.0mn), includes a taxation charge of US$43.8mn (1H
2014: US$105.0mn), and finance income of US$5.6mn (1H 2015:
US$5.5mn). The taxation charge was lower during the period on
account of lower profits and a lower applicable tax rate at 20% for
2015 (2014: 25%). The finance income was marginally higher by
US$0.1mn due to higher interest yields achieved despite lower
average cash balance on deposit during the first six months of the
year. Finance costs of US$1.9mn (1H 2014: nil) during the period
were on account of the unwinding of the discount on the provision
for corporate social obligations relating to Turkmenistan.
Basic EPS of 28.26 US cents in the first half of this year were
52% lower than the basic EPS in the same period last year (1H 2014:
58.79 US cents) primarily due to lower net profit combined with an
increase in the number of shares in issue during the period.
Balance Sheet
Net book value of property, plant and equipment increased by
US$84.5mn due to capital expenditure of US$306.0mn incurred (1H
2014: US$278.7mn) offset by the depletion and depreciation charge
of US$221.5mn (1H 2014: US$133.3mn) during the period. Of the total
capital expenditure, US$160.3mn (1H 2014: US$134.8mn) was
attributable to development and appraisal drilling with the balance
spent on infrastructure in Turkmenistan. The infrastructure spend
during the period included construction of the Dzheitune (Lam) E
and infield pipelines, installation of the Dzheitune (Lam) F
platform and construction of the tank farm.
The net book value of intangible assets increased by US$7.2mn,
net of a further provision for impairment of US$0.04mn towards the
Baragatan-1A well exploration and evaluation costs, and is
primarily attributable to the spend on exploration and evaluation
assets.
Current Assets and Liabilities
Current assets decreased by US$124.4mn, due to lower term
deposits, trade and other receivables and inventories held at the
period-end, offset primarily by higher cash and cash equivalents
and abandonment and decommissioning funds, as compared to 2014
year-end. The trade and other receivables decreased by US$18.9mn
primarily due to a decrease in receivables from the sale of crude
oil, offset primarily by an increase in underlift receivables.
Cash and cash equivalents and term deposits as at 30 June 2015
were US$1,855.9mn (31 December 2014: US$1,974.9mn), excluding funds
held for abandonment and decommissioning activities. Funds held for
abandonment and decommissioning activities as at 30 June 2015 were
US$686.7mn (31 December 2014: US$664.0mn).
Current liabilities decreased by US$106.9mn due to a decrease of
US$101.6mn in the current income tax liability and US$24.8mn trade
and other payables, partly offset by a higher abandonment and
decommissioning liability at the period end.
Cash flows
Net cash generated from operating activities in 1H 2015 of
US$265.1mn was 12% lower than net cash generated in the same period
last year (1H 2014: US$300.7mn). The decrease was primarily
attributable to lower revenue and higher tax paid, despite the
change in the working capital position and lower amounts
transferred to abandonment and decommissioning funds.
Net cash used in investing activities in 1H 2015 was US$154.6mn
(1H 2014: US$176.4mn) comprising of capital expenditure of
US$319.9mn offset by withdrawal from term deposits of US$159.7mn
and interest income of US$5.6mn received during the period.
Net cash used in financing activities in 1H 2015 was US$69.8mn
(1H 2014: US$86.5mn), primarily due to the payment of 2014 final
dividends of US$78.7mn and partly offset by an inflow of US$9.1mn
on issue of new shares following the exercise of share options.
OUTLOOK
On 15 June 2015, Dragon Oil updated its target for average
production growth for 2015 to be around 15%. We expect to drill and
complete between 15 and 18 wells, of which eight wells have already
been completed; we will continue to add perforations in existing
wells to maintain and grow production.
The Group maintains its guidance for an exit rate of 100,000
bopd - the level we first achieved on 9 June 2015 - in 2015 and
plans to sustain the 100,000 bopd average gross production for a
minimum of five years from 2016.
Our capital expenditure for infrastructure and drilling
excluding the Gas Treatment Plant cost in Turkmenistan in 2015 is
estimated to be at the upper end of the US$500mn to US$600mn
guidance at around US$600mn and around US$50-100mn for exploration
assets.
Dr Abdul Jaleel Al Khalifa
Chief Executive Officer
Dragon Oil plc
end -
Legal Information
The directors of Dragon Oil accept responsibility for the
information contained in this announcement. To the best of the
knowledge and belief of the directors of Dragon Oil (who have taken
all reasonable care to ensure such is the case), the information
contained in this announcement is in accordance with the facts and
does not omit anything likely to affect the import of such
information.
The members of the Independent Committee accept responsibility
for the information in relation to the Offer contained in this
announcement. To the best of the knowledge and belief of the
members of the Independent Committee (who have taken all reasonable
care to ensure that such is the case), the information contained in
this announcement for which they accept responsibility is in
accordance with the facts and does not omit anything likely to
affect the import of such information.
Nomura, which is authorised by the Prudential Regulation
Authority and regulated in the United Kingdom by the Financial
Conduct Authority and Prudential Regulation Authority, is acting
exclusively for the Independent Committee and no one else in
connection with this announcement and will not be responsible to
anyone other than the Independent Committee for providing the
protections afforded to clients of Nomura nor for providing advice
in connection with this announcement or any matter referred to
herein.
Davy, which is authorised and regulated by the Central Bank of
Ireland, is acting exclusively for the Independent Committee and no
one else in connection with this announcement and will not be
responsible to anyone other than the Independent Committee for
providing the protections afforded to clients of Davy nor for
providing advice in connection with this announcement or any matter
referred to herein
Condensed group balance sheet
Unaudited
30 June 31 December
Note 2015 2014
US$'000 US$'000
ASSETS
Non-current assets
Property, plant and equipment 6 1,975,879 1,891,346
Intangible assets 7 99,918 92,731
------------------------ ------------------------
2,075,797 1,984,077
------------------------ ------------------------
Current assets
Inventories 26,184 35,434
Trade and other receivables 282,763 301,697
Term deposits 9a 1,776,137 1,935,884
Cash and cash equivalents 9a 79,726 38,994
Abandonment and decommissioning
funds 9b 686,736 663,970
------------------------ ------------------------
2,851,546 2,975,979
------------------------ ------------------------
Total assets 4,927,343 4,960,056
========== ==========
EQUITY
Capital and reserves attributable
to the Company's
equity shareholders
Share capital 10a 77,878 77,767
Share premium 10a 256,228 247,264
Capital redemption reserve 10b 80,644 80,644
Other reserve 10b 9,357 9,936
Retained earnings 3,354,791 3,292,593
------------------------ ------------------------
Total equity 3,778,898 3,708,204
------------------------ ------------------------
LIABILITIES
Non-current liabilities
Trade and other payables 11 83,819 77,586
Deferred income tax liabilities 143,645 146,380
------------------------ ------------------------
227,464 223,966
------------------------ ------------------------
Current liabilities
Trade and other payables 11 205,559 230,401
Abandonment and decommissioning
liability 12 688,942 669,367
Current income tax liabilities 26,480 128,118
------------------------ ------------------------
920,981 1,027,886
------------------------ ------------------------
Total liabilities 1,148,445 1,251,852
------------------------ ------------------------
Total equity and liabilities 4,927,343 4,960,056
========== ==========
Condensed group income statement
Unaudited Unaudited
6 months 6 months
ended ended
30 June 30 June
Note 2015 2014
US$'000 US$'000
Revenue 13 449,870 546,993
Cost of sales (242,425) (120,564)
------------------- -------------------
Gross profit 207,445 426,429
Administrative expenses (28,619) (20,027)
Provision for impairment of
exploration and evaluation
assets (35) (18,087)
Other income 337 177
------------------- -------------------
Operating profit 179,128 388,492
Finance income 5,557 5,479
Finance costs 11 (1,919) -
------------------- -------------------
Profit before income tax 182,766 393,971
Income tax expense 17 (43,782) (104,982)
------------------- -------------------
Profit attributable to equity
holders of the Company 138,984 288,989
======== ========
Earnings per share attributable US Cents US Cents
to equity holders of the Company per share per share
Basic 15 28.26c 58.79c
Diluted 15 28.25c 58.77c
======== ========
Condensed group statement of comprehensive income
Unaudited Unaudited
6 months 6 months
ended ended
30 June 30 June
2015 2014
US$'000 US$'000
Profit attributable to equity
holders of the Company 138,984 288,989
------------------- -------------------
Total comprehensive income
for the period 138,984 288,989
======== ========
Condensed group statement of changes in equity
Capital
Share Share redemption Other Retained
capital premium reserve reserve earnings Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
For the six
months ended
30 June 2015
(Unaudited)
At 1 January
2015 77,767 247,264 80,644 9,936 3,292,593 3,708,204
----------------- ------------------- ----------------- --------------- ---------------------- ----------------------
Total
comprehensive
income for
the period - - - - 138,984 138,984
----------------- ------------------- ----------------- --------------- ---------------------- ----------------------
Shares issued
during the
period 111 8,964 - - - 9,075
Employee share
option scheme:
-value of
services
provided - - - 1,506 - 1,506
Transfer on
exercise of
share options - - - (2,085) 2,085 -
Dividends
(Note 14) - - - - (78,673) (78,673)
Employee share
purchase plan
contribution - - - - (198) (198)
----------------- ------------------- ----------------- --------------- ---------------------- ----------------------
Total
transactions
with owners 111 8,964 - (579) (76,786) (68,290)
----------------- ------------------- ----------------- --------------- ---------------------- ----------------------
At 30 June
2015 77,878 256,228 80,644 9,357 3,354,791 3,778,898
======= ======== ======= ====== ========== ==========
For the six
months ended
30 June 2014
(Unaudited)
At 1 January
2014 77,731 245,101 80,644 7,640 2,828,383 3,239,499
----------------- ------------------- ----------------- --------------- ---------------------- ----------------------
Total
comprehensive
income for
the period - - - - 288,989 288,989
----------------- ------------------- ----------------- --------------- ---------------------- ----------------------
Shares issued
during the
period 36 2,163 - - - 2,199
Employee share
option scheme:
-value of
services
provided - - - 1,689 - 1,689
Transfer on
exercise of
share options - - - (701) 701 -
Dividends
(Note 14) - - - - (88,480) (88,480)
Employee share
purchase plan
contribution - - - - (193) (193)
----------------- ------------------- ----------------- --------------- ---------------------- ----------------------
Total
transactions
with owners 36 2,163 - 988 (87,972) (84,785)
----------------- ------------------- ----------------- --------------- ---------------------- ----------------------
At 30 June
2014 77,767 247,264 80,644 8,628 3,029,400 3,443,703
----------------- ------------------- ----------------- --------------- ---------------------- ----------------------
Condensed group cash flow statement
Restated
Unaudited Unaudited
6 months 6 months
ended ended
Note 30 June 2015 30 June 2014
US$'000 US$'000
Cash generated from operating activities before tax and transfer to
abandonment and decommissioning
funds 16 436,041 485,069
Income tax paid (148,155) (120,695)
Amounts transferred to abandonment and decommissioning funds 9b (22,766) (63,625)
------------------ ------------------
Net cash generated from operating activities 265,120 300,749
------------------ ------------------
Cash flows from investing activities
Additions to property, plant and equipment (312,628) (250,204)
Additions to intangible assets (7,268) (34,283)
Interest received on bank deposits 5,557 5,479
Amounts withdrawn from term deposits (with original
maturities of over three months) 1,435,259 1,894,410
Amounts placed on term deposits (with original
maturities of over three months) (1,275,512) (1,791,838)
------------------ ------------------
Net cash used in investing activities (154,592) (176,436)
------------------ ------------------
Cash flows from financing activities
Proceeds from issue of share capital 10a 9,075 2,199
Dividends paid 14 (78,673) (88,480)
Employee contribution towards ESPP 1,142 1,076
Shares purchased for ESPP (1,340) (1,269)
------------------ ------------------
Net cash used in financing activities (69,796) (86,474)
------------------ ------------------
Net increase in cash and cash equivalents 40,732 37,839
Cash and cash equivalents at the beginning of the period 38,994 29,168
------------------ ------------------
Cash and cash equivalents at the end of the period 79,726 67,007
======== ========
Comparative information presented above has been amended to
accord to the current period presentation (refer to Note 21).
1 General information
Dragon Oil plc (the "Company") and its subsidiaries (together,
"the Group") are engaged in upstream oil and gas exploration,
development and production activities primarily in Turkmenistan
under a Production Sharing Agreement (PSA) signed between Dragon
Oil (Turkmenistan) Limited and The State Agency for Management and
Use of Hydrocarbon Resources at the President of Turkmenistan ("the
Agency"). The production of crude oil is shared between the Group
and the Government of Turkmenistan as determined in accordance with
the fiscal terms as contained in the PSA. The Group headquarters is
based in Dubai, United Arab Emirates.
The Company is a public limited company, incorporated and
domiciled in the Republic of Ireland in September 1971. The address
of its registered office is 6th Floor, South Bank House, Barrow
Street, Dublin 4, Ireland. The registration number is 35228.
The Company's ordinary shares have a primary listing on the
Irish Stock Exchange and premium listing on the London Stock
Exchange.
This condensed consolidated interim financial information
(interim financial information) was approved for issue by the Board
of Directors on 6 August 2015.
2 Basis of preparation of interim financial information
This interim financial information for the six months ended 30
June 2015 has been prepared in accordance with the Transparency
(Directive 2004/109/EC) Regulations 2007, the related Transparency
Rules of the Central Bank of Ireland and with International
Accounting Standard 34, "Interim financial reporting" ("IAS 34") as
adopted by the European Union. The interim financial information
should be read in conjunction with the annual financial statements
for the year ended 31 December 2014, which have been prepared in
accordance with International Financial Reporting Standards (IFRS),
as adopted by the European Union. The interim financial information
has been prepared under the historical cost convention except for
the measurement at fair value of under lift receivables/over lift
payables.
The preparation of the interim financial information includes
the use of estimates and assumptions that affect items reported in
the condensed Group balance sheet and the condensed Group income
statement. Although these estimates are based on management's best
knowledge of current circumstances and assumptions about future
events and actions, actual results may differ from those
estimates.
Taxes on income in the interim periods are accrued using the tax
rate that would be applicable to expected total annual
earnings.
3 Accounting policies
The accounting policies applied are consistent with those of the
annual financial statements for the year ended 31 December 2014, as
described in those annual financial statements, except for the
adoption of new standards and interpretations as of 1 January
2015.
New standards, interpretations and amendments adopted by the
Group
The Group applies, for the first time, certain standards and
amendments. As required by IAS 34, the nature and the effect of
these changes are disclosed below.
The following amended standards and interpretations became
effective for the first time in 2015 but have no impact on the
annual consolidated financial statements of the Group or the
interim condensed consolidated financial statements of the
Group.
-- Defined benefit plans: Employee contributions (Amendments to IAS 19)
4 Segment information
In accordance with IFRS 8 'Operating Segments', the Group has
three principal reporting segments which are as follows:
-- Central Asia : Development and production assets located in
Turkmenistan in the Caspian region
-- North Africa : Exploration and evaluation assets in Tunisia, Egypt and Algeria
-- South East Asia and Middle East: Exploration and evaluation
assets in Philippines, Iraq and Afghanistan
The segment information presented is based on the financial
performance as reported in the internal reporting provided to the
Chief Operating Decision-maker (CODM). The Board of Directors
(BOD), which is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the
CODM that makes strategic decisions.
The financial information reviewed by the CODM is based on the
IFRS financial information for the Group.
'Corporate' primarily includes cash resources held by the Group,
interest income earned and other operational expenditure incurred
by the Group which are not specifically attributable to identified
operating segments.
For the six months ended 30 June 2015 (Unaudited)
South
East
Asia
and
Central North Middle
Asia Africa East Corporate Eliminations Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Revenue
External
customers 449,870 - - - - 449,870
======== ======== ======== ======== ======== =========
Segment
result before
tax 198,381 (3,156) (1,624) - - 193,601
======== ======== ======== ======== ========
Unallocated
Corporate
expenses - - - - - (14,810)
Other income - - - - - 337
--------------------
Operating
profit - - - - - 179,128
Finance
income - - - - - 5,557
Finance
costs - - - - - (1,919)
--------------------
Profit before
tax - - - - - 182,766
Income tax
expense - - - - - (43,782)
-------------------
Profit after
tax - - - - - 138,984
=========
Total assets 3,023,790 67,435 32,992 3,414,416 (1,611,290) 4,927,343
========= ======== ======== ========= ========= =========
Total liabilities (2,598,602) (73,918) (62,608) (24,607) 1,611,290 (1,148,445)
========= ======== ======== ========= ======== =========
4 Segment information (continued)
South East
Central Asia and
Asia North Africa Middle East Corporate Eliminations Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Other segment
information
Capital expenditure
for the period:
Property, plant
and equipment 305,864 - - 155 - 306,019
Intangible exploration
& evaluation
assets - 1,453 5,066 - - 6,519
Other Intangible
assets 703 - - - - 703
Impairment losses
recognised in
income statement - - (35) - - (35)
For the six months ended 30 June 2014 (Unaudited)
South
East
Asia
and
Central North Middle
Asia Africa East Corporate Eliminations Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Revenue
External
customers 546,993 - - - - 546,993
======== ======== ======== ======== ======== =========
Segment
result before
tax 429,019 (31) (18,135) - - 410,853
======== ======== ======== ======== ========
Unallocated
Corporate
expenses - - - - - (22,538)
Other income - - - - - 177
--------------------
Operating
profit - - - - - 388,492
Finance
income - - - - - 5,479
--------------------
Profit before
tax - - - - - 393,971
Income tax
expense - - - - - (104,982)
-------------------
Profit after
tax - - - - - 288,989
=========
Total assets 4,687,115 67,048 16,998 2,514,094 (2,614,730) 4,670,525
========= ======== ======== ========= ========= =========
Total liabilities (1,796,528) (67,076) (35,168) (1,942,780) 2,614,730 (1,226,822)
========= ======== ======== ========= ======== =========
4 Segment information (continued)
South East
Central Asia and
Asia North Africa Middle East Corporate Eliminations Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Other segment
information
Capital expenditure
for the period:
Property, plant
and equipment 278,624 - - 115 - 278,739
Intangible exploration
& evaluation
assets - 13,166 20,790 - - 33,956
Other Intangible
assets 327 - - - - 327
Impairment losses
recognised in
income statement - - (18,087) - - (18,087)
5 Critical accounting judgements and estimates
The preparation of the interim financial information in
conformity with IAS 34 requires the use of estimates and
assumptions that affect the reported amounts of assets and
liabilities as well as contingent assets and liabilities at the
date of the balance sheet, and the reported amounts of revenues and
expenses during a reporting period. The resulting accounting
estimates will, by definition, seldom equal the related actual
results.
The critical accounting judgements and estimates that could
result in material adjustments to the income statement and the
carrying amounts of assets and liabilities are discussed below:
(a) Carrying value of development and production assets
In arriving at the carrying value of the Group's development and
production assets, significant assumptions in respect of the
depletion charge have been made. These significant assumptions
include estimates of oil and gas reserves, future oil and gas
prices, finalisation of the gas sales agreement and future
development costs including the cost of drilling, infrastructure
facilities and other capital and operating costs.
If the gas sales were delayed to 2019, the depletion charge
would increase by US$ 3.2 million for 1H 2015. Should there be a
significant delay in signing of the gas sales agreement at
appropriate commercial terms beyond 2019, it would change the
timing of the recognition of the depletion charge. Inclusion of the
gas reserves has deferred a current period depletion charge in the
amount of US$ 57.5 million over the remaining life of the PSA.
Effective August 2014, the Group's estimated long-term view of
oil prices was based on a 3 year Brent forward curve for 2015-17
and US$ 85 per barrel thereafter. Effective 1 January 2015, the
Group revised its estimated long-term view of oil prices based on a
5 year Brent forward curve and US$ 75 per barrel in real terms
thereafter.
Effective 1 January 2015, the Group revised its estimated
long-term view of netback prices for gas from US$ 0.5 per Mscf to
US$ 0.5 per Mscf for 5 years and stated in real terms thereafter,
based on the current outlook.
If the estimate of the long-term oil price had been US$ 40 per
barrel higher and the netback price of gas had been US$ 2 per Mscf
higher from 1 January 2015, the reserves attributable to the Group
would decrease, with a consequent increase in the depletion charge
of US$ 34.9 million for the six months period ended 30 June
2015.
If the estimate of the long-term oil price had been US$ 40 per
barrel lower and the netback price of gas had been US$ 0.25 per
Mscf lower from 1 January 2015, reserves attributable to the Group
would increase, with a consequent decrease in the depletion charge
of US$ 82.5 million for the six months period ended 30 June
2015.
The depletion computation assumes the continued development of
the field to extract the assessed oil and gas reserves and the
required underlying capital expenditure to achieve the same. For
this purpose, it assumes that a gas sales agreement will be signed
and that the PSA, which is valid up to 2025, will be extended on
similar terms up to 2035 under an exclusive right to negotiate for
an extension period of not less than ten years, provided for in the
PSA.
5. Critical accounting judgements and estimates (continued)
(b) Exploration and evaluation (E&E) assets
The application of the Group's accounting policy for exploration
and evaluation expenditure requires judgement to determine whether
it is likely that future economic benefits will arise, from either
exploitation or sale, or whether activities have not reached a
stage which permits a reasonable assessment of the existence of
reserves.
(c) Classifications of joint arrangements
Judgement is required to determine when the Group has joint
control over an arrangement, which requires an assessment of the
relevant activities and when the decisions in relation to those
activities require unanimous consent. The Group has determined that
the relevant activities for its joint arrangements are those
relating to the operating and capital decisions of the arrangement,
as stated in the joint operating agreement such as approval of the
capital expenditure program for each year. The considerations made
in determining joint control are similar to those necessary to
determine control over subsidiaries. Classifying a joint
arrangement requires the Group to assess its rights and obligations
arising from the arrangement. Specifically, the Group considers
whether it is structured through a separate vehicle.
6 Property, plant and equipment
During the six months period ended 30 June 2015, the Group
acquired development and production assets with a cost of US$ 306
million (1H 2014: US$ 278.6 million). The depletion and
depreciation charge was US$ 221.5 million (1H 2014: US$ 133.3
million).
7 Intangible assets
The intangible assets consist of exploration and evaluation
assets and other intangible assets which total US$ 99.9 million (31
December 2014: US$ 92.7 million) primarily relating to the Group's
interest in certain exploration blocks in North Africa, South East
Asia and Middle East and is net of a provision for impairment of
US$ 24 million (1H 2014: US$ 18.1 million) towards the Baragatan-1A
well, offshore the Philippines. The exploration well did not
discover commercial hydrocarbons and has been plugged and
abandoned. The future interest in the block remains to be
assessed.
8 Financial instruments
(i) Financial instruments by category
Unaudited Restated*
30 June 31 December
2015 2014
US$'000 US$'000
Assets as per balance sheet
Loans and receivables
Trade and other receivables excluding
prepayments, advances to suppliers
and underlift receivables 95,577 150,999
Term deposits 1,776,137 1,935,884
Cash and cash equivalents 79,726 38,994
Abandonment and decommissioning
funds 686,736 663,970
--------------------- --------------------
2,638,176 2,789,847
========== =========
Fair value through profit or loss
Crude oil underlift receivable 134,800 84,867
========== =========
Liabilities as per balance sheet
Liabilities at amortised cost
Trade and other payables 289,378 307,987
Abandonment and decommissioning
liability 688,942 669,367
--------------------- --------------------
978,320 977,354
========== ==========
The carrying value of the financial instruments is a reasonable
approximation of their fair value.
* In the disclosure for the year ended 31 December 2014 the
crude oil underlift receivable of US$ 84.9 million was also
included in loans and receivables, and as such has been amended.
This does not have an impact upon the balance sheet or upon
earnings per share.
8 Financial instruments (continued)
(ii) Fair value hierarchy
All financial instruments for which fair value is recognised or
disclosed are categorised within the fair value hierarchy,
described as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:
Level 1: Quoted market prices in an active market (that are
unadjusted) for identical assets or liabilities;
Level 2: Valuation techniques (for which the lowest level input
that is significant to the fair value measurement is directly or
indirectly observable); and
Level 3: Valuation techniques (for which the lowest level input
that is significant to the fair value measurement is
unobservable).
As at 30 June 2015, the Group held the following classes of
financial instruments measured at fair value:
Unaudited Level Level Level
30 June 1 2 3
2015
US$'000 US$'000 US$'000 US$'000
Financial assets measured
at fair value
Fair value through profit
and loss - Crude oil
underlift receivable 134,800 - 134,800 -
========== ========= ========= =========
31 December Level Level Level
2014 1 2 3
US$'000 US$'000 US$'000 US$'000
Financial assets measured
at fair value
Fair value through profit
and loss - Crude oil
underlift receivable 84,867 - 84,867 -
========== ========= ========= =========
9 Cash and bank balances
(a) Term deposits and cash and cash equivalents
Unaudited
30 June 31 December
2015 2014
US$'000 US$'000
Cash at bank and in hand 79,726 38,994
--------------- ---------------
Cash and cash equivalents 79,726 38,994
Term deposits with an original
maturity of over 3 months 1,776,137 1,935,884
------------------ ------------------
1,855,863 1,974,878
========= =========
Cash and cash equivalents do not include any interest bearing
deposits with original maturities of three months or less during
the period (31 December 2014: nil).
9 Cash and bank balances (continued)
(b) Abandonment and decommissioning funds
Unaudited
30 June 31 December
2015 2014
US$'000 US$'000
Cash at bank 14,731 8,810
Term deposits with an original
maturity of over 3 months 672,005 655,160
------------------ ------------------
686,736 663,970
========= =========
The related abandonment and decommissioning liability is shown
under Note 12.
10a Share capital and premium
Number
of Ordinary Share
shares shares premium Total
('000) US$'000 US$'000 US$'000
At 1 January 2014 491,445 77,731 245,101 322,832
Shares issued during
the period in respect
of
share options vested 260 36 2,163 2,199
------------------ ---------------- ------------------ ------------------
At 30 June 2014 491,705 77,767 247,264 325,031
======== ======= ======== ========
At 1 January 2015 491,705 77,767 247,264 325,031
Shares issued during
the period in respect
of
share options vested 1,019 111 8,964 9,075
------------------ ---------------- ------------------ ------------------
At 30 June 2015 492,724 77,878 256,228 334,106
======== ======= ======== ========
10b Capital redemption reserve and other reserve
The capital redemption reserve arises from a reorganisation of
the Company's share capital in 2002. This reserve is
non-distributable.
Other reserve comprises amounts expensed in the income statement
in connection with awards made under the Company's share option
schemes less any exercises or lapses of such awards.
11 Trade and other payables
Unaudited
30 June 31 December
2015 2014
US$'000 US$'000
Trade payables 67,395 88,384
Accruals 122,705 125,538
Corporate social obligations 89,833 87,856
Other creditors 9,445 6,209
------------------- -------------------
289,378 307,987
Less: Non-current portion
Trade and other payables (4,800) (544)
Corporate social obligations (79,019) (77,042)
------------------- -------------------
Non-current portion (83,819) (77,586)
------------------- -------------------
Current portion 205,559 230,401
======== ========
Trade payables and accruals include amounts of US$ 59.6 million
(31 December 2014: US$ 64.7 million) and US$ 90.1 million (31
December 2014: US$ 91.6 million) respectively, relating to
additions to property, plant and equipment - development and
production assets. The carrying value of trade and other payables
approximate their fair values.
11 Trade and other payables (continued)
Corporate social obligations
Unaudited
30 June 31 December
2015 2014
US$'000 US$'000
At 1 January 87,856 -
Provision made during the period - 87,856
Unwinding of discount on corporate
social obligations provision
(a) Relating to Turkmenistan 1,919 -
(b) Relating to other exploration
and evaluation assets 58 -
---------------- ----------------
89,833 87,856
======== ========
Current 10,814 10,814
Non-current portion 79,019 77,042
---------------- ----------------
89,833 87,856
======== ========
In December 2014, the Group and the state authorities in
Turkmenistan agreed to amend the provisions of the PSA to clarify
the tax rate applicable to the Group and to include certain
contractual obligations for community social expenses. Under the
terms of the amendment, the Group is committed to corporate social
obligations and training programmes in Turkmenistan of
approximately US$ 10 million per year over the remaining initial
period of the PSA. A number of the joint operations in which the
Group participates have similar contractual obligations. These
obligations are measured at the present value of future payments.
The present value was determined using a discount rate of 4.5%.
Corporate social obligations include US$ 87.2 million (31
December 2014: US$ 85.3 million) relating to Turkmenistan and US$
2.6 million (31 December 2014: US$ 2.6 million) relating to other
exploration and evaluation assets.
12 Abandonment and decommissioning liability
Unaudited
30 June 31 December
2015 2014
US$'000 US$'000
Abandonment and decommissioning
liability 688,942 669,367
======== ========
The abandonment and decommissioning liability represents amounts
relating to the sale of crude oil set aside to cover abandonment
and decommissioning liabilities under the terms of the PSA. The
related abandonment and decommissioning fund is shown under Note
9b.
13 Revenue
Revenue of US$ 449.9 million (1H 2014: US$ 547.0 million)
comprises an amount of US$ 391.7 million (1H 2014: US$ 546.9
million) arising from the sale of crude oil through Baku,
Azerbaijan and US$ 58.1 million (1H 2014: nil) arising from the
sale of crude oil through Makhachkala, Russia and US$ 0.1 million
(1H 2014: US$ 0.1 million) arising from other sales.
Revenue from the sales of crude oil was from two customers (1H
2014: one customer).
14 Dividends paid and proposed
Unaudited Unaudited
6 months 6 months
ended ended
30 June 30 June
2015 2014
US$'000 US$'000
Dividends on ordinary shares declared
and paid during the six month period:
Final dividend: US cents 16 per
share (US cents 18 per share) 78,673 88,480
---------------- ----------------
78,673 88,480
======= =======
Interim dividends on ordinary shares
approved subsequent to the period-end
(not recognised as a liability as
at 30 June):
Interim dividend nil (Interim 2014:
US cents 20 per share) - 98,341
======= =======
15 Earnings per share
The calculation of basic earnings per ordinary share is based on
the weighted average number of 491,758,475 ordinary shares in issue
during the six months to 30 June 2015 (1H 2014: 491,552,245
ordinary shares) and on the profit for the period of US$ 139
million (1H 2014: US$ 289 million).
The calculation of diluted earnings per ordinary share is based
on the number of 492,033,456 ordinary shares in issue during the
six months to 30 June 2015 (1H 2014: 491,737,410 ordinary shares)
adjusted to assume conversion of potential dilutive options over
ordinary shares.
16 Cash generated from operating activities
Restated
Unaudited Unaudited
6 months 6 months
ended ended
30 June 2015 30 June 2014
US$'000 US$'000
Profit before income tax 182,766 393,971
Adjustments for:
- Depletion and depreciation 221,486 133,300
- Crude oil underlifts (49,933) (60,499)
- Crude oil overlifts - (11,007)
- Employee share option schemes - value of services provided 1,506 1,689
- Interest on bank deposits (5,557) (5,479)
- Write-off of intangible assets 35 18,087
- Finance costs 1,919 -
* Abandonment and decommissioning liability 19,575 52,905
------------------- -------------------
Operating cash flow before changes in working capital 371,797 522,967
Changes in working capital:
- Inventories 9,250 (2,078)
- Trade and other receivables 68,867 (51,221)
- Trade and other payables (13,873) 15,401
------------------- -------------------
Cash generated from operating activities before tax and transfer to
abandonment and decommissioning
funds 436,041 485,069
======== ========
17 Income tax expense
Income tax expense is recognised based on management's best
estimate of the weighted average annual income tax rate expected
for the full financial year. The estimated average annual tax rate
used for 2015 is 20% (2014: 25%).
During 2008, the effective tax rate applicable to the Group's
operations in Turkmenistan was increased by 5% to 25% by the
Hydrocarbon Resources Law of 2008. The Group had applied this rate
in determining its tax liabilities in prior years.
In December 2014, the Group and the state authorities in
Turkmenistan agreed to amend the provisions of the PSA to bring the
tax rate into line with the provisions of the Tax Code of
Turkmenistan. The rate of 20% is now applicable to the Group in
respect of its petroleum operations in Turkmenistan. The impact of
the reduction in the tax rate in 2014 was a reversal of US$160
million in respect of an overprovision for prior years up to 2013,
no longer payable. The Group has applied this rate in determining
its tax liabilities as at 30 June 2015.
During the period, the Group recognised a current tax charge of
US$ 46.5 million (1H 2014: US$ 90.9 million) and a net deferred tax
credit of US$ 2.7 million (1H 2014: net deferred tax charge of US$
14.1 million).
18 Related party transactions
a) Transactions and balances
The Company's largest shareholder is Emirates National Oil
Company Limited (ENOC) L.L.C ("ENOC"), which owns approximately
53.84% of the Company's ordinary share capital. ENOC is ultimately
a wholly owned entity of the Government of Dubai. Three members of
the Board, Mr. Ahmad Sharaf, Mr. Mohammed Al Ghurair and Mr. Ahmad
Al Muhairbi are nominees of ENOC. All transactions with related
parties are on an arm's length basis.
(i) The following transactions are with ENOC and its subsidiaries:
Unaudited Unaudited
6 months 6 months
ended ended
30 June 2015 30 June 2014
US$'000 US$'000
Trading transactions:
Sale of services 155 233
----------------- -----------------
Purchase of services 1,176 1,448
----------------- -----------------
Unaudited
30 June 31 December
2015 2014
US$'000 US$'000
Period end balances:
Receivables 69 71
----------------- -----------------
Payables 1,353 1,076
----------------- -----------------
(ii) The following transactions are with financial institutions under common control and associates:
Unaudited Unaudited
6 months 6 months
ended ended
30 June 2015 30 June 2014
US$'000 US$'000
Other transactions:
Finance income 727 739
----------------- -----------------
18 Related party transactions (continued)
a) Transactions and balances (continued)
Unaudited
30 June 31 December
2015 2014
US$'000 US$'000
Period end balances:
Term deposits 182,117 181,428
----------------- -----------------
Abandonment and decommissioning funds 686,736 663,970
----------------- -----------------
Cash and cash equivalents 3,130 1,939
----------------- -----------------
b) Key management compensation
Unaudited Unaudited
6 months 6 months
ended ended
30 June 30 June
2015 2014
US$'000 US$'000
Non-executive directors' fees 782 576
Salaries and short-term benefits 4,108 2,227
-------------- --------------
Short term benefits 4,890 2,803
End of service benefits 512 296
Share-based payments 534 516
-------------- --------------
5,936 3,615
====== ======
19 Commitments and contingencies
a) Capital commitments
(i) The capital commitments at 30 June 2015 were as follows:
Unaudited
6 months
ended 31 December
30 June 2014
2015
US$'000 US$'000
Contracted for but not yet incurred 849,846 1,033,574
Other commitments 144,880 150,353
------------------- -------------------
994,726 1,183,927
========= =========
b) Operational commitments
Letters of credit of US$110.6 million were in issue at 30 June
2015 (31 December 2014: US$112.4 million) towards the supply of
equipment and services.
At 30 June 2015, the Company had a continuing guarantee for
US$200 million (31 December 2014: US$172 million) for undrawn trade
finance facilities of subsidiary undertakings.
19 Commitments and contingencies (continued)
c) Others
The Group's operations in Turkmenistan, conducted through Dragon
Oil (Turkmenistan) Ltd., are undertaken in accordance with the
terms of the PSA, which became effective on 1 May 2000 between
Dragon Oil (Turkmenistan) Ltd. and the Turkmenistan government. The
agreement determines the rights and obligations of Dragon Oil
(Turkmenistan) Ltd, inter alia, to carry out development activities
through work plans and annual budgets. It also grants various tax,
currency control and related concessions.
Other commitments includes the Group's share of minimum work and
expenditure obligations in Iraq, Afghanistan, Egypt and
Algeria.
There are no financial commitments, other than those disclosed
above.
However, the Group's operations in the above countries are
ultimately subject to the political, socio-economic and legal
uncertainties arising from the respective political and legal
systems.
20 Statutory accounts
The interim financial information presented in this report does
not represent full statutory accounts. Full statutory accounts for
the year ended 31 December 2014, prepared in accordance with IFRS,
as adopted by the European Union, and containing an unqualified
audit report, will be delivered by the extended date of 27 August
2015 to the Registrar of Companies.
21 Retrospective restatement
During the second half of 2014, the Group had changed the
presentation of the abandonment and decommissioning fund and the
related liability on the balance sheet. Funds held in designated
accounts towards abandonment and decommissioning activities and the
related liability previously included in term deposits and cash and
cash equivalents and trade and other payables respectively are now
shown separately on the balance sheet. The Group has unrestricted
access and control over these funds.
The presentation was amended to reflect the specific nature of
the fund and the related liability and accordingly the change has
been applied retrospectively and the prior period comparatives on
the condensed Group cash flow statement have been restated.
Unaudited Unaudited
6 months 6 months
ended ended
30 June 30 June
2014 2014
Previously Impact
stated of restatement Restated
US$'000 US$'000 US$'000
Effect on Condensed group
cash flow statement
Profit before income
tax 393,971 - 393,971
Adjustments for:
- Depletion and depreciation 133,300 - 133,300
- Crude oil underlifts (60,499) (60,499)
- Crude oil overlifts (11,007) - (11,007)
- Employee share options
- value of services provided 1,689 - 1,689
- Interest on bank deposits (5,479) - (5,479)
- Write-off of intangible
assets 18,087 18,087
* Abandonment and decommissioning liability - 52,905 52,905
------------------- ------------------- -------------------
Operating cash flow before
changes in working capital 470,062 52,905 522,967
------------------- ------------------- -------------------
21 Retrospective restatement (continued)
Unaudited Unaudited
6 months 6 months
ended ended
30 June 30 June
2014 2014
Previously Impact
stated of restatement Restated
US$'000 US$'000 US$'000
Effect on Condensed group
cash flow statement (continued)
Changes in working capital:
- Inventories (2,078) - (2,078)
- Trade and other receivables (51,221) - (51,221)
- Trade and other payables 68,306 (52,905) 15,401
------------------- ------------------- -------------------
Cash generated from operating
activities before tax
and transfer to abandonment
and decommissioning funds 485,069 - 485,069
Income tax paid (120,695) - (120,695)
Amounts transferred to
abandonment and decommissioning
funds - (63,625) (63,625)
------------------- ------------------- -------------------
Net cash generated from
operating activities 364,374 (63,625) 300,749
------------------- ------------------- -------------------
Cash flows from investing
activities
Additions to property,
plant and equipment (250,204) - (250,204)
Additions to intangible
assets (34,283) - (34,283)
Interest received on
bank deposits 5,479 - 5,479
Amounts withdrawn from
term deposits (with original
maturities of over three
months) 2,438,342 (543,932) 1,894,410
Amounts placed on term
deposits (with original
maturities of over three
months) (2,403,180) 611,342 (1,791,838)
------------------- ------------------- -------------------
Net cash used in investing
activities (243,846) 67,410 (176,436)
------------------- ------------------- -------------------
Net cash used in financing
activities (86,474) - (86,474)
------------------- ------------------- -------------------
Net increase in cash
and cash equivalents 34,054 3,785 37,839
Cash and cash equivalents
at the beginning of the
period 34,208 (5,040) 29,168
------------------- ------------------- -------------------
Cash and cash equivalents
at the end of the period 68,262 (1,255) 67,007
======== ======== ========
22 Subsequent event
On 1 July 2015, ENOC issued a document containing (among other
things) the full terms of, and conditions to, a recommended cash
offer by ENOC of 750 pence for each Dragon Oil ordinary share not
already owned by ENOC (the "Offer") and the procedures for
acceptance (the "Offer Document") together with a form of
acceptance.
On 2 August 2015, the Board of ENOC announced a revision to the
Offer (the "Increased Offer") and declared the Increased Offer
unconditional in all respects. Under the terms of the Increased
Offer, Dragon Oil Shareholders are entitled to receive 800 pence in
cash for each Dragon Oil ordinary share.
The Increased Offer will remain open for acceptance until 3:00
p.m. (Dublin time) on 28 August 2015 (or such later time as ENOC
may determine).
Directors' responsibilities statement
We, the Board of Directors, confirm our responsibility for the
half year report and that to the best of our knowledge:
(a) the interim financial information comprising the condensed
Group balance sheet, the condensed Group income statement, the
condensed Group statement of comprehensive income, the condensed
Group statement of changes in equity, the condensed Group cash flow
statement and related notes 1 to 22 have been prepared in
accordance with IAS 34 as adopted by the European Union.
(b) the interim management report includes a fair review of the information required by:
(i) Regulation 8(2) of the Transparency (Directive 2004/109/EC)
Regulations 2007, being an indication of important events that have
occurred during the first six months of the current financial year
and their impact on the interim financial information; and a
description of the principal risks and uncertainties for the
remaining six months of the year; and
(ii) Regulation 8(3) of the Transparency (Directive 2004/109/EC)
Regulations 2007, being related party transactions that have taken
place in the first six months of the current financial year and
that have materially affected the financial position or performance
of the entity during that period; and any changes in the related
party transactions described in the last annual report that could
do so.
The Directors are confident that the Group will have adequate
financial resources to continue in operational existence for the
foreseeable future after reviewing the Group's plans for 2015 and
future years. We have therefore continued to adopt the going
concern basis in preparing the accounts.
The directors of Dragon Oil plc are listed in the Dragon Oil plc
Annual Report for the year ended 31 December 2014. A list of
current directors is maintained on the Dragon Oil plc website
www.dragonoil.com.
The maintenance and integrity of the Dragon Oil plc web site is
the responsibility of the directors; the work carried out by the
auditor does not involve consideration of these matters and,
accordingly, the auditor accepts no responsibility for any changes
that may have occurred to the interim report since it was initially
presented on the web site. Legislation in the Republic of Ireland
governing the preparation and dissemination of financial
information may differ from legislation in other jurisdictions.
On behalf of the Board
Mohammed Al Ghurair
Chairman
Justin Crowley
Director
Date: 6 August 2015
INDEPENDENT REVIEW REPORT TO DRAGON OIL PLC
Introduction
We have been engaged by the Company to review the condensed set
of financial statements in the half year financial report for the
six months ended 30 June 2015 which comprises the condensed Group
balance sheet, the condensed Group income statement, the condensed
Group statement of comprehensive income, the condensed Group
statement of changes in equity, the condensed Group cash flow
statement and the related explanatory notes 1 to 22. We have read
the other information contained in the half yearly financial report
and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set
of financial statements.
This report is made solely to the Company in accordance with
guidance contained in International Standards on Review Engagements
2410 (UK and Ireland) "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the
Auditing Practices Board. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the
Company, for our work, for this report, or for the conclusions we
have formed.
Directors' Responsibilities
The half year financial report is the responsibility of, and has
been approved by, the directors. The directors are responsible for
preparing the half year financial report in accordance with the
Transparency (Directive 2004/109/EC) Regulations 2007 and the
Transparency Rules of the Central Bank of Ireland.
As disclosed in note 2, the annual financial statements of the
Group are prepared in accordance with IFRSs as adopted by the
European Union. The condensed set of financial statements included
in this half year financial report has been prepared in accordance
with International Accounting Standard 34, "Interim Financial
Reporting", as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the half year
financial report based on our review.
Scope of Review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Auditing Practices Board for use in
the United Kingdom and Ireland. A review of interim financial
information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying
analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with
International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half year financial report for the six months ended 30 June
2015 is not prepared, in all material respects, in accordance with
International Accounting Standard 34 as adopted by the European
Union and the Transparency (Directive 2004/109/EC) Regulations 2007
and the Transparency Rules of the Central Bank of Ireland.
Ernst & Young
Dublin
Date: 6 August 2015
Supplementary information - Movement in oil, condensate and gas
reserves and resources (Not reviewed by auditors)
PROVED AND PROBABLE COMMERCIAL RESERVES AND RESOURCES
Working interest Entitlement
Oil and Total Oil and Total
condensate Gas Petroleum condensate Gas Petroleum
mmbbl bscf mmboe mmbbl bscf mmboe
-------------------- ------------- ------- ------------ ------------- ------- ------------
Commercial reserves -
Turkmenistan
As at 1 January
2015 663 1,329 884 332 584 429
Production (17) - (17) (11) - (11)
Revision - - - 7 - 7
-------------------- ------------- ------- ------------ ------------- ------- ------------
As at 30 June 2015 646 1,329 867 328 584 425
-------------------- ------------- ------- ------------ ------------- ------- ------------
Notes:
1. Commercial reserves are estimated quantities of proven and
probable oil and gas reserves that available data demonstrates,
with a specified degree of certainty, to be recoverable in future
from known reservoirs that are considered commercially producible.
The working interest of the proved and probable commercial reserves
is based on a reserves report produced by an independent engineer.
Reserves estimates are reviewed by the independent engineer based
on significant new data or a material change with a review of the
field undertaken generally every year. The Group's entitlement to
the proved and probable commercial reserves are derived based on
the terms of the PSA and certain assumptions made by the management
in respect of estimates of oil and gas reserves, future oil and gas
prices, future development costs including the cost of drilling,
infrastructure facilities, signing of the gas sales agreement and
other capital and operating costs.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFFRTFIRIIE
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