Crudecorp AS Quarterly financial statement Q4 2014

Transcription

1 Crudecorp AS Quarterly financial statement Q4 2014

2 Crudecorp AS Condensed Consolidated Income Statement Unaudited figures in USD Note Q4 14 Q Revenues Other operating income Production costs Salaries Depreciation and impairment 2, Other operating expenses Other income and expenses Operating profit Net financial items Profit before tax Taxes Net profit/(loss)* Consolidated Statement of Comprehensive Income Unaudited figures in USD Note Q4 14 Q Net profit Comprehensive income items Translation differences Other comprehensive income, net after tax Total comprehensive income Net profit allocated The shareholders of the parent Total comprehensive income allocated The shareholders of the parent Earnings per. share is calculated by dividing net profit attributable to equity shareholders of the weighted average number of ordinary shares outstanding during the period Q4 14 Q Profit attributable to equity shareholders Weighted average number of ordinary shares outstanding (in thousands) Earnings per share 0,12-0,07-0,07-0,13 Diluted earnings per share0,12-0,07-0,07-0,13 *Net profil/(loss) exluding MTM is

3 Crudecorp AS Consolidated Balance Sheet Unaudited figures in USD Note ASSETS Non-current assets Deferred tax assets Fixed Assets Working Interest Chico Martinez Other non-current assets Derivatives Other long-term recivables Total non-current assets Current Assets Inventories Derivatives Trade Receivables and other receivables Cash and cash equivalents Total current assets Total assets Unaudited figures in USD Note EQUITY Equity attributable to parent company shareholders Share capital Share premium Retained Earnings Total shareholders' equity Liabilities Long Term Liabilities Loan Derivatives Decommissioning and Abandonment Total long term liabilities Short Term Debt Loan Derivatives Trade and other payables , Total short term debt Total liabilites Total equity and liabilities Note 1 to 9 forms an integral part of the group accounts.

4 Consolidated cash flow Unaudited figures in USD Crudecorp AS Note Cash flow from operating activities Cash flow from operations Interest paid Taxes paid Net cash from operating activites Cash flow from investing activities Purchase of tangible fixed assets Disposal of tangible fixed assets Loans to third parties Translation differences on investments Net cash flow from investing activities Cash flow from financing activities Issue of ordinary shares Bond Issue Credit Suisse facility Net cash from financing activities Net change in cash, cash equivalents and bank overdrafts Cash, cash equivalents and bank overdrafts as of 1 January Exchange rate gain-/loss on cash, cash equivalents, bank overdrafts and recievables Cash, cash equivalents and bank overdrafts at end of period

5 Changes in Group Equity Crudecorp AS Unaudited figures in USD Note Share Capital Share Premium Retained Earnings Sum Equity Equity 31 December 2012* Repair issue February Share issue April Share issue cost Capital increase options Share issue December Share issue cost December Net profit (loss) Comprehensive income Translation differences equity Equity 31 December Repair issue february Net profit (loss) YTD Comprehensive income Translation differences equity Equity 31 December

6 Note 1 General accounting principles Crudecorp AS (the Company ) and its subsidiaries (together with the Company the Group ) is an international oil company. The Group owns 90 % of the working interest in the oilfield Chico Martinez in California. The Group prepares its consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) and these financial statements have been prepared in accordance with the International Accounting Standard for Interim Financial Reporting (IAS 34). As the interim financial statements do not include the full information and disclosures as required in the annual financial statements, it should be read in connection with the Annual Financial Statements for 2013.

7 2 Fixed Assets Carrying value as of beginning of period Conversion differences (Translation) - - Additions Disposals Capitalization of interest - - Decommissioning and Abandonment Impairment* Depreciation Carrying value as of end of period As of end of period Acquisition Cost Capitalization of interest Accumulated depreciation and impairment Carrying value as of end of period *An impairment charge of tusd and was made during the third quarter, resulting in the carrying amount of the assets being written down to its estimated recoverable amount. If the budgeted cost saving used in the value-in-use calculation for the assets had been lower than management s estimates at 30 September 2014 (for example, 0 USD/bbl instead of 5 USD/bbl), the group would have recognised a further impairment of the assets by tusd and would need to reduce the carrying value of the assets accordingly. If the estimated cost of capital used in determining the pre-tax discount rate for the assets had been 1% higher than management s estimates (for example, 11% instead of 10%), the group would have recognised a further impairment against the assets of tusd and would need to reduce the carrying value of the assets accordingly. Management would like to emphasize that based on the value-in-use calculation the estimate is highly sensitive to changes in main assumptions. Reserves and production (not audited) Estimated total P90 reserves as of is 2.18 million boe (net Crudecorp). Total production in Q was 54,175 boe.

8 3 Oil field production rights Carrying Value as of beginning of period Impairment* Depreciation Conversion differences (Translation) Carrying value as of end of period As of end of period Acquisition Cost Accumulated depreciation, amortization and impairment Carrying value as of end of period * see note 2

9 4 Share capital and share premium Number of shares (1,000s) Share capital (NOK) Share capital (USD) Share premium (USD) Total (USD) Total as of 31 December Share issue January Share issue April Share issue cost Capital increase options Share issue December Share issue cost Conversion differences (Translation) Total as of 31 December Share issue february Conversion differences (Translation) Total as of 31 December

10 5 Loans and Derivatives Long-term debt Loan from Paladin Bond Issue Credit Suisse Derivatives Decommissioning and Abandonment Total long-term debt Short-term debt Credit Suisse Trade and other payables Derivatives Total short-term debt Nominal value Loan from Paladin Bond Issue Credit Suisse Total Other income and expenses Q4 14 Q Loan Profit/loss on MTM value on oil and gas contract Credit Suisse Total The carrying value of the Bond Issue is in NOK. Remaining Group's loan is in USD. The loan from Paladin has a nominal interest rate 0% and a repayment schedule that is in step with production with installments of $2 per barrel produced in the Chico Martinez field

11 The Company has in July 2012 successfully completed a bond issue of NOK 21 million. This bond issue was in September 2013 increased to NOK 50 million. The bond issue has a nominal interest rate of 3 month NIBOR + 12,5 %. Maturity date of the bond issue is 17 July The bond issue is unsecured and subordinated to the Credit Suisse facility. The Bond Issue agreement includes a call option and Crudecorp may redeem parts of the Bond Issue or the entire Bond Issue as stated in the agreement between Crudecorp ASA and Norsk Tillitsmann (on behalf of the Bondholders). Book value of Bond Issue is USD 8,1 million and consists of principal reduced by costs and transaction fee and added with the period's amortization of costs/transaction fee. Accrued interest related to Bond Issue is USD 0,30 million as per 31 March. Interest is to be paid every third month. The Company has in July 2012 signed a USD 30 million crude oil prepaid swap facility with Credit Suisse. The Prepay Facility also involves a cash-settled embedded derivative forward swap over 986,000 barrels of crude oil spread across March December 2016 and priced in reference to ICE Brent. Repayment of principal and interests/margin cost on oil swap started in April Oil sale will be treated as income as before, without any changes. The loan will be accounted for as a fixed interest loan using amortized cost method. The fixed interest will be the margin inherent in the Oil swap agreement. The sale of oil will be recognized at market price, and the change in fair value (MTM) in the Oil swap agreement will be recognized as other gain and losses in the financial statement (operating section, above EBITDA). Crudecorp treats the arrangement as one contract and then bifurcate the embedded derivative for MTM (Market to Market), leaving the host instrument for as fixed interest loan, accounted as amortized cost, where the fixed interest is the margin (incl. funding cost) of USD 15,71 on each bbl. The rest of the oils swap (MTM value) is accounted for as fair value through profit and loss on the line other gains and losses. MTM (Market to Market) value will be calculated each quarter. A positive value of the embedded derivatives will result in a accrual against the interest of the embedded derivative of the accounted fixed interest loan. As of December this accrual amounted to MUSD 8,8 The income/loss related to the oil contract is presented as other income/expenses in the Condensed Consolidated Income Statement and included in derivatives in the balance sheet. Gas purchase agreement will be treated at fair value, as the purchase is accounted for as own use under IAS 39 definitions. MTM (Market to Market) value is to be calculated each quarter. This gain/loss is presented as other income/expenses in the Condensed Consolidated Income Statement and included in derivatives in the balance sheet. The table below anlyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows: Level 1: Quoted prices (unadjusted) in active markrets for identical assets or liabilities Level 2: Inputs other than quotes prices included within Level 1 that are observable for the assets or liability, either directly (that is, as prices) or indirectly (that is, derived prom prices) Level 3: inputs for the assets or liability that are not based on observable market data (that is, unobseervable inputs) 2014 Level 1 Level 2 Level 3 Sum Assets Financial derivatives Liabilities Financial derivatives Level 1 Level 2 Level 3 Sum Assets Financial derivatives Liabilities Financial derivatives

12 6 Other non-current assets Warranty Bond related to production rights Third parties' share of investment Other non-current assets According to the Purchase Agreement related to 90 % of Working interest in the Chico Martinez oil field Sea Industries, Inc. and Petrov Enterprises, Inc, which owns 5 % each (in total the remaining 10% working interest) of the working interest in Chico Martinez, shall not be required to bear any of the first 20 Million USD in costs and expenses incurred in the development of the leases. Third parties' share of investment is reflecting the amount due in the period.

13 7 Financial income and expenses Q4 14 Q Interest expense Credit Suisse and Bond Foreign exchange losses Interest expense on Plugging and Abandonment Financial expenses Foreign exchange gain Interest income on short-term bank deposits Financial Income Net financial expenses Due to the fact that the parent company has NOK as functional currency, any intercompany receivables with USD entities generate foreign exchange gains and losses. These are in general offset by translation differences presented within Other Comprehensive Income.

14 8 Income tax expense Tax payable Q4 14 Q Total tax payable Deferred tax assets Total deferred tax Taxes Tax payble consists of 2013 State and Federal income taxes in US. The management s evaluation at this stage is that the company are able to utilize the deferred tax asset in the future.

15 9 Events after balance date There have been no material subsequent events that affect the accounts.