TIDMFEP
RNS Number : 2254K
Forum Energy Plc
26 July 2013
26 July 2013
Forum Energy Plc
("Forum" or "the Company")
Interim Results
Forum, the UK incorporated oil and gas exploration and
production company with a focus on the Philippines, today announces
its unaudited interims for the six months ended 30 June 2013.
Forum recorded a loss of US$2,751,000 for the interim period
ended 30 June 2013 (Loss - US$1,696,000 for interim period ended 30
June 2012) (Loss - US$26,424,000 for year ended 31 December
2012).
Revenues for the period were US$2,244,000 (US$1,346,000 for the
interim period ended 30 June 2012) (US$4,522,000 for the year ended
31 December 2012). This increased revenue reflected the fact that
the Galoc field operated normally throughout the period, whereas it
did not operate for the first four months of 2012 whilst the
facilities were being refurbished.
Operational Highlights
-- Unable to commence SC72 drilling programme due to the
on-going territorial dispute between the Philippine and Chinese
governments and granted an extension to August 2015 to complete the
second sub-phase obligations of drilling wells on SC72; and
-- Participated in the Galoc Phase II development which is
progressing on schedule with the first oil expected in the fourth
quarter of 2013.
Financial Highlights
-- Revenues of US$2,244,000 (US$1,346,000 - 30 June 2012) (US$4,522,000 - 31 December 2012);
-- Gross Profit of US$374,000 (US$30,000 - 30 June 2012) (US$918,000 - 31 December 2012);
-- Loss before tax of US$2,228,000 (US$1,696,000 - 30 June 2012)
(US$26,424,000 - 31 December 2012);
-- Net loss of US$2,751,000 (US$1,696,000 - 30 June 2012) (US$26,424,000 - 31 December 2012);
-- Cash of US$2,807,000 at 30 June 2013 (US$1,171,000 - 30 June
2012) (US$5,760,000 - 31 December 2012);
-- Drawdown of US$1,161,000 under the BNP facility agreement for
the development of Galoc Phase II;
-- Continued discussions with major shareholders, Philex Mining
Corporation, regarding the potential extension of the loan
agreement of US$15,000,000 which is expected to be approved in the
coming months; and
-- The directors continue to review the funding options required
for the SC72 drilling programme.
For further information please contact:
Forum Energy Plc
Andrew Mullins, Executive Director Tel: +44 (0) 1932 445 344
Execution Noble & Company Limited
Harry Stockdale / John Llewellyn-Lloyd Tel: +44 (0) 20 7456 9191
Or visit the Company's website:
www.forumenergy.com
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended 30 June 2013
___________________________________________________________________________________________
Six months Six months
Ended Ended Year ended
30 June 30 June 2012 31 December
2013 2012
US$000 US$000 US$000
Note Unaudited Unaudited Audited
Revenue 2,244 1,346 4,522
Cost of sales (1,870) (1,316) (3,604)
______ ______ ______
Gross profit 374 30 918
______ ______ ______
Other Income - - 1,804
______ ______ ______
Administrative expenses (1,631) (1,288) (2,750)
Impairment of deferred exploration
assets - - (25,359)
Write down of inventory (573) - -
______ ______ ______
Total operating expenses (2,204) (1,288) (28,109)
______ ______ ______
Loss from operations (1,830) (1,258) (25,387)
Finance expenses (565) (176) (582)
Finance income 1 5 1
______ ______ ______
Loss before tax (2,394) (1,429) (25,968)
Tax expense 4 (523) - -
______ ______ ______
Loss from continuing operations (2,917) (1,429) (25,968)
Other comprehensive income
Exchange gains/(losses) 166 (267) (456)
______ ______ ______
Total comprehensive loss for the
period (2,751) (1,696) (26,424)
_____ ______ ______
Total comprehensive loss attributable
to:
Owners of the parent (2,803) (1,607) (26,256)
Non-controlling interest 52 (89) (168)
______ ______ ______
(2,751) (1,696) (26,424)
______ ______ ______
US Cents US Cents US Cents
Loss per ordinary share (US
Cents) attributable to equity
holders of the company
Basic & Diluted 5 (7.88) (4.75) (73.9)
______ ______ ______
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2013
30 June 30 June 2012 31 December
2013 2012
US$000 US$000 US$000
Note Unaudited Unaudited Audited
Assets
Non-current assets
Property, plant and equipment 6,168 8,525 7,104
Intangible assets 6 29,868 51,394 28,051
Investments 10 29 11
______ ______ ______
Total non-current assets 36,046 59,948 35,166
______ ______ ______
Current assets
Inventories 7 1,475 103 70
Trade and other receivables 3,719 2,009 2,351
Cash and cash equivalents 2,807 1,171 5,760
______ ______ ______
Total current assets 8,001 3,283 8,181
______ ______ ______
Total assets 44,047 63,231 43,347
______ ______ ______
Liabilities
Non-current liabilities
Other liabilities and provisions 4,040 5,075 4,181
Loans 587 10,000 -
______ ______ ______
Total non-current liabilities 4,627 15,075 4,181
______ ______ ______
Current liabilities
Loans 15,574 - 15,000
Trade payables and other payables 8 4,536 1,367 2,105
______ ______ ______
Total current liabilities 20,110 1,367 17,105
______ ______ ______
Total liabilities 24,737 16,442 21,286
______ ______ ______
Total net assets 19,310 46,789 22,061
______ ______ ______
Capital and reserve attributable
to equity
holders of the company
Share capital 6,322 6,322 6,322
Share premium reserve 51,680 51,680 51,680
Retained deficit (39,873) (12,421) (37,070)
______ ______ ______
18,129 45,581 20,932
Non-controlling interest 1,181 1,208 1,129
______ ______ ______
Total equity 19,310 46,789 22,061
______ ______ ______
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 30 June 2013
--------------------___________________________________________________________________________________________
Share
Share Share option Retained Non- Total
capital premium reserve deficit Total controlling capital
and
interest reserves
US$000 US$000 US$000 US$000 US$000 US$000 US$000
Balance as at 1
January 2012 5,982 50,964 438 (11,252) 46,132 1,297 47,429
Loss for the period - - - (1,340) (1,340) (89) (1,429)
Other comprehensive
income - - - (267) (267) - (267)
Transfer to retained
deficit - - (438) 438 - - -
Issue of shares
(net costs) 340 716 - - 1,056 - 1,056
_______ _______ _________ _______ _______ __________ _________
Balance as at 30
June 2012 (Unaudited) 6,322 51,680 - (12,421) 45,581 1,208 46,789
_______ _______ _________ _______ _______ __________ _________
Loss for the period - - - (24,460) (24,460) (79) (24,539)
Other comprehensive
income - - - (189) (189) - (189)
_______ _______ _________ _______ _______ __________ _________
Balance as at 31
December 2012 (audited) 6,322 51,680 - (37,070) 20,932 1,129 22,061
Loss for the period - - - (2,969) (2,969) 52 (2,917)
Other comprehensive
income - - - 166 166 - 166
_______ _______ _________ _______ _______ __________ _________
Balance as at 30
June 2012 (Unaudited) 6,322 51,680 - (39,873) 18,129 1,181 19,310
_______ _______ _________ _______ _______ __________ _________
CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended 30 June 2013
___________________________________________________________________________________________
Six months Six months Year
Ended Ended Ended
30 June 30 June 2012 31 December
2013 2012
US$000 US$000 US$000
Unaudited Unaudited Audited
Cash flows from operating activities
Loss before tax for the period (2,394) (1,429) (25,968)
Adjustments for:
Depreciation 910 575 2,039
Impairment charge - - 25,359
Write down of inventory 573 - -
Loss/(gain) on investments 1 (5) 13
Finance income (1) - (1)
Finance expenses 565 176 582
______ ______ ______
(346) (683) 2,024
Increase in trade and other receivables (1,206) (147) (489)
Increase in inventories (85) (46) (13)
Increase/(decrease) in trade and
other payables 2,215 (1,597) 381
(Decrease)/increase in provisions
and employee benefits (9) - 57
______ ______ ______
Cash flows from operating activities 569 (2,473) 1,960
Taxes paid (390) - -
______ ______ ______
Net cash flow from operating activities 179 (2,473) 1,960
______ ______ ______
Investing activities
Purchase of property, plant and
equipment (15) (2,265) (4,329)
Sale of property, plant and equipment 41 - -
Purchase of intangible assets (3,710) (1,609) (3,903)
______ ______ ______
Net cash from investing activities (3,684) (3,874) (8,232)
______ ______ ______
Financing activities
Issue of ordinary shares (net
of issue costs) - 1,056 1,056
Loan facility proceeds 1,161 4,000 9,000
Finance income 1 - 1
Finance expenses (565) (176) (582)
______ ______ ______
Net cash flow from financing activities 597 4,880 9,475
______ ______ ______
Net (decrease)/increase in cash and
cash equivalents (2,908) (1,467) 3,203
Cash and cash equivalents at beginning
of period 5,760 2,761 2,761
Exchange losses on cash and cash
equivalents (45) (123) (204)
______ ______ ______
Cash and cash equivalents at end
of period 2,807 1,171 5,760
______ ______ ______
.
UNAUDITED NOTES FORMING PART OF THE CONSOLIDATED INTERIM
FINANCIAL STATEMENTS
For the period ended 30 June 2013
1. Accounting policies
Basis of preparation
The annual financial statements of Forum Energy are prepared in
accordance with International Financial Reporting Standards as
adopted by the European Union. The unaudited condensed consolidated
financial information for the six months ended 30 June 2013
included in this interim financial report has been prepared in
accordance with International Accounting Standard 34 "Interim
Financial Reporting", as adopted by the European Union.
The interim financial report does not include all the
information and disclosures required in the annual financial
statements, and should be read in conjunction with the consolidated
financial statements in the Forum Energy Annual Report and Accounts
for the year ended 31 December 2012. The accounting policies
adopted in the preparation of the interim financial report, the
significant judgments made by management in applying the Group's
accounting policies, and the key sources of estimation uncertainty
are consistent with those followed in the preparation of the
Group's financial statements for the year ended 31 December 2012.
Any new and revised standards have had no effect on the reported
financial results or the disclosures in this interim financial
report.
2. Segment Analysis
The Group has three reportable segments:
- Producing assets
- Exploration assets
- Head office costs
The operating results of each of these segments are regularly
reviewed by the Board of Directors in order to make decisions about
the allocation of resources and assess their performance:
The segmental results for the period ended 30 June 2013 are as
follows:
Producing Exploration Head Office
assets assets costs Total
US$'000 US$'000 US$'000 US$'000
Revenue 2,244 - - 2,244
Cost of sales (1,870) - - (1,870)
Gross profit 374 - - 374
Administrative expenses (328) (220) (1,083) (1,631)
Write down of inventory - (573) - (573)
Profit/(loss) from operations 46 (793) (1,083) (1,830)
Finance income - - 1 1
Finance expenses (115) (362) (88) (565)
Loss before tax (69) (1,155) (1,170) (2,394)
The segmental results for the period ended 30 June 2012 are as
follows:
Producing Exploration Head Office
assets assets costs Total
US$'000 US$'000 US$'000 US$'000
Revenue 1,346 - - 1,346
Cost of sales (1,316) - - (1,316)
Gross profit 30 - - 30
Administrative expenses (123) (180) (985) (1,288)
Loss from operations (93) (180) (985) (1,258)
Finance income - 5 - 5
Finance expenses - (176) - (176)
Loss before tax (93) (351) (985) (1,429)
The segmental results for the year ended 31 December 2012 are as
follows:
Producing Exploration Head Office
Assets assets costs Total
US$'000 US$'000 US$'000 US$'000
Revenue 4,522 - - 4,522
Cost of sales (3,604) - - (3,604)
Gross profit 918 - - 918
Other income 1,804 - - 1,804
Administrative expenses (267) (292) (2,191) (2,750)
Impairment charge of deferred
exploration assets - (25,359) - (25,359)
Profit/(loss) from operations 2,455 (25,651) (2,191) (25,387)
Finance income - - 1 1
Finance expenses - (582) - (582)
Profit/(loss) before tax 2,455 (26,233) (2,190) (25,968)
The segmented assets and liabilities at 30 June 2013 are as
follows:
Producing Exploration Head Office
assets assets costs Total
US$'000 US$'000 US$'000 US$'000
Total non-current assets 6,108 29,878 60 36,046
Total current assets 2,616 2,720 2,665 8,001
Total assets 8,724 32,598 2,725 44,047
Total non-current liabilities (68) (4,559) - (4,627)
Total current liabilities (1,405) (18,705) - (20,110)
Total liabilities (1,473) (23,264) - (24,737)
Net assets 7,251 9,334 2,725 19,310
The segmented assets and liabilities at 30 June 2012 are as
follows:
Producing Exploration Head Office
assets assets costs Total
US$'000 US$'000 US$'000 US$'000
Total non-current assets 8,503 51,398 47 59,948
Total current assets 1,876 506 901 3,283
Total assets 10,379 51,904 948 63,231
Total non-current liabilities (1,000) (14,075) - (15,075)
Total current liabilities (1,163) (139) (65) (1,367)
Total liabilities (2,163) (14,214) (65) (16,442)
Net assets 8,216 37,690 883 46,789
The segmented assets and liabilities at 31 December 2012 are as
follows:
Producing Exploration Head Office
assets assets costs Total
US$'000 US$'000 US$'000 US$'000
Total non-current assets 7,036 28,051 79 35,166
Total current assets 2,805 988 4,388 8,181
Total assets 9,841 29,039 4,467 43,347
Total non-current liabilities - (4,181) - (4,181)
Total current liabilities (1,221) (15,804) (80) (17,105)
Total liabilities (1,221) (19,985) (80) (21,286)
Net assets 8,620 9,054 4,387 22,061
Other segmented items 30 June 2013 are as follows:
Producing Exploration Head Office
assets assets costs Total
US$'000 US$'000 US$'000 US$'000
Capital expenditure 15 3,710 - 3,725
Depreciation 902 - 8 910
Other segmented items 30 June 2012 are as follows:
Producing Exploration Head Office
assets assets costs Total
US$'000 US$'000 US$'000 US$'000
Capital expenditure 2,265 1,609 - 3,874
Depreciation 575 - - 575
Other segmented items 31 December 2012 are as follows:
Producing Exploration Head Office
assets assets costs Total
US$'000 US$'000 US$'000 US$'000
Capital expenditure 4,253 3,903 76 8,232
Depreciation 2,030 - 9 2,039
Revenue
All of the 2013 revenues (2012 - 100%) were generated from
Philippine based assets the Galoc, Nido & Matinloc fields.
3. Financial reporting period
The interim financial information for the period from 1 January
2013 to 30 June 2013 is unaudited. In the opinion of the Directors
the interim financial information for the period presents fairly
the financial position, and results from operations and cash flows
for the period and are in conformity with generally accepted
accounting principles consistently applied. The accounts
incorporate comparative figures for the interim period 1 January
2012 to 30 June 2012 and the audited financial year to 31 December
2012.
The financial information contained in this interim report does
not constitute statutory accounts as defined by section 435 of the
Companies Act 2006.
The comparatives for the full year ended 31 December 2012 are
not the Company's full statutory accounts for that year. A copy of
the statutory accounts for that year has been delivered to the
Registrar of Companies. The auditor's report on those accounts was
unqualified, but included a reference to going concern issues,
which the auditors drew attention to by way of emphasis, without
qualifying their report and did not contain a statement under
section 498(2)-(3) of the Companies Act 2006.
4. Taxation expense
The taxation expense is due to tax charges on other income of
US$1,804,000 received in 2012 (2012: $nil).
5. Loss per share
The calculation of basic and diluted loss per share has been
based on the loss for the period attributable to equity holders of
the Company of US$2,803,000 (30 June 2012 - US$1,607,000).
The basic and diluted weighted average number of equity shares
in issue for the period is 35,549,533 ordinary (30 June 2012:
33,799,450).
The corresponding figures for the year ended 31 December 2012
were: basic and diluted loss attributable to equity holders of the
Company of US$26,256,000 and weighted average number of shares
35,549,533.
6. Intangible assets
The net book values of assets included within intangible fixed
assets are as follows:
SC40 - US$3,410,000 (31 December 2012: US$3,250,000) (30 June
2012: US$27,920,000)
SC72 - US$24,072,000 (31 December 2012: US$23,765,000) (30 June
2012: US$23,007,000)
SC6/SC14 - US$2,386,000 (31 December 2012: US$1,036,000) (30
June 2012: US$467,000).
7. Inventories
Inventories include $1,321,000 (2012: $nil)of surplus drilling
equipment stated at the lower of their net book value and net
realisable value.
8. Trade payables and other payables
Trade payables include $2,705,000 (2012: $nil) due for drilling
equipment which is due for payment in August 2013.
9. Functional Currency
All amounts have been prepared in US dollars, this being the
Group's functional currency and its presentational currency.
10. Going Concern
The Directors are of the opinion that the Group currently has
sufficient funds to meet their obligations and commitments as they
fall due in the foreseeable future and has therefore adopted the
going concern basis in preparing the interim financial
statements.
The Group is currently conducting exploration and development
activities using existing funds including those generated by the
Group's interests in producing assets, including Galoc and SC14.
The Directors are currently in discussions with Philex Mining
Corporation regarding the outstanding US$15 million loan facility
which is due for repayment by 24 November 2013 and are confident
that they can reach an agreement on revised terms to extend the
repayment date beyond 2014, before repayment comes due. The
Directors are currently reviewing various funding options to fund
the continued development of SC72 once the territorial dispute
between the Philippine and Chinese governments has been
resolved.
The Group considers that it retains the strong support of its
ultimate controlling shareholder, Philex Mining Corporation as
exercised through its shareholdings in Philex Petroleum
Corporation. The Directors are confident that the required loan
extension will be obtained but note that as this has not been
secured as at the date of this report this creates a material
uncertainty which may cast significant doubt about the Group's
ability to continue as a going concern.
11. Additional Information
Copies of the Interim Statement are available from the Company
Secretary, Forum Energy plc, 120 Bridge Road, Chertsey, Surrey KT16
8LA, United Kingdom, Tel: +44 (0)1932 445 344 E-mail:
info@forumenergyplc.com or downloaded from the website:
www.forumenergyplc.com.
- End -
This information is provided by RNS
The company news service from the London Stock Exchange
END
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