Sea Production Ltd. Financial Information Second Quarter 2015

Transcription

1 Financial Information Second Quarter 2015 Background This financial information has been prepared in accordance with International Financial Reporting Standards. General Information Sea Production Ltd. and its subsidiaries own and operate two floating, production, storage and offloading ( FPSO ) vessels. Financial Statements Income Statement (Second quarter 2014 figures in brackets) The Group s revenue in the quarter was US$4.7 million (US$4.7 million), with EBITDA of US$3.2 million (US$2.7 million). All charter revenues relate to Crystal Ocean. Front Puffin was laid-up. Operating expenses for the quarter amounted to US$0.6 million (US$0.9 million) and administrative expenses for the period were US$0.9 million (US$1.1 million). Total depreciation for the quarter was US$3.8 million (US$3.8 million). The Group s vessels are depreciated on a straight-line basis over their economically useful lives, taking into account their estimated residual value. Assessment of the remaining economic life of the assets is done on a yearly basis. Capital costs incurred in relation to a specific contract are depreciated over the expected life of the relevant contract. At the end of the contract any remaining balance is written-off. Net financing charges for the period were US$7.9 million (US$2.5 million). Interest expense on the outstanding US$ bonds was US$7.0 million (US$2.5 million). The net result for the quarter was a loss of US$8.9 million (loss of US$4.1 million). Balance Sheet Current assets as at 30 June 2015 were US$16.6 million (US$4.7 million) and non-current assets were US$136.1 million (US$143.4 million). The Company has a 5 year callable bond loan with a nominal value of US$88.2 million outstanding as at 30 June 2015 and a final maturity of 14 September The Company had no other borrowings at the end of the quarter. The Company s equity as at 30 June 2015 was US$18.7 million (US$48.1 million).

2 Group Update Second Quarter 2015 Crystal Ocean continued its charter with Blue Marine to the end of the contract firm period on 25 June The Group has been in discussions with the charterer regarding an extension of the contract and the parties have agreed an extension for a further two years from 22 July 2015 at a day rate of US$31,000/day. The contract extension includes an allowance for a day rate of US$15,000/day for a maximum of 30 days whilst the vessel is dry-docked, expected to be in Q3/Q dry-docking costs are payable by Blue Marine. The extension is conditional on, inter alia, Blue Marine putting in place the agreed contract security. In the meantime, the vessel has remained on hire to Blue Marine throughout. Front Puffin entered Keppel Shipyard in Singapore on 29 May 2015 to undergo refurbishment and upgrade works for the contract with Folawiyo Aje Services Limited. These works are expected to be completed in Q4 2015, at which point the vessel will be ready for sailaway to the Aje Field, offshore Nigeria. US$ bonds The Group has been in discussions with an ad hoc group of holders of the US$ bonds with a view to rescheduling the maturity of the bonds and an agreement was reached to extend the maturity to 14 September Board of Directors, August 2015 Important Information: This document does not constitute an invitation or inducement to sell or an offer to purchase shares in Sea Production Ltd. It is not intended to form the basis of any investment decision, does not constitute and may not be relied upon as constituting any form of investment advice, and is not to be construed as an undertaking or assurance that any specific course of action will be followed. Prospective investors are advised to ensure that they obtain appropriate independent professional advice before making any investment. The information and any opinions contained in this document have been compiled in good faith, but no representation or warranty, express or implied, is made as to their accuracy, completeness or correctness. Save to the extent (if any) that exclusion of liability is prohibited by any applicable law or regulation, Sea Production Ltd, its officers, employees, representatives and agents expressly advise that they shall not be liable in any respect whatsoever for any loss or damage, whether direct, indirect, consequential or otherwise however arising (whether in negligence or otherwise) out of or in connection with the contents of or any omissions from this document. Statements contained in this document may constitute "forward-looking statements" which are generally identifiable by the use of the words "may", "will", "should", "plan", "expect", "anticipate", "estimate", "believe", "intend", "project", "goal" or "target" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements involve a number of known and unknown risks, uncertainties and other factors that could cause Sea Production s actions to be materially different from any actions expressed or implied by such forward-looking statements. Sea Production Ltd cannot guarantee that such actions will be put into effect in whole or in part in the future, nor does Sea Production Ltd undertake publicly to update or revise any forward looking statement that may be made in this document, whether as a result of new information, future events or otherwise.

3 Consolidated Income Statement Q2 Year-to-date Operating revenues Charter revenues 4,653 4,651 9,253 9,251 Total operating revenues 4,653 4,651 9,253 9,251 Operating expenses Operating expenses (569) (900) (1,428) (1,700) Administrative expenses (871) (1,056) (1,705) (1,942) Total operating expenses (1,440) (1,956) (3,133) (3,642) Profit before depreciation 3,213 2,695 6,120 5,609 Depreciation (3,783) (3,798) (7,566) (7,596) Net operating loss (570) (1,103) (1,445) (1,987) Other income/(expenses) Miscellaneous income/expense (34) Interest expense (6,960) (2,515) (10,127) (4,375) Other financial items (861) (29) (3,200) (1,238) Net other expenses (7,856) (2,543) (13,224) (5,609) Taxation (467) (465) (928) (925) Net loss (8,893) (4,111) (15,597) (8,521) Attributable to: Equity holders of the Company (8,893) (4,111) (15,597) (8,521) 1

4 Consolidated Balance Sheet ASSETS 30-Jun Jun Dec-14 Current assets Cash and cash equivalents 13,614 2,412 21,976 Trade accounts receivable 2,215 1, Prepaid expenses and accrued income Other receivables Total current assets 16,599 4,673 22,929 Non-current assets Vessels and equipment 136, , ,573 Total non-current assets 136, , ,573 Total assets 152, , ,502 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Trade and other payables 830 1,922 3,407 Deferred revenue 20,095 1,150 17,600 Short term debt 88,152 76,409 78,111 Amounts due to related companies 19,129 18,843 21,255 Total current liabilities 128,207 98, ,373 Non-current liabilities Deferred income tax liabilities 5,800 1,666 5,800 Total non-current liabilities 5,800 1,666 5,800 Total liabilities 134,006 99, ,173 Stockholders' equity Share capital 96,423 96,423 96,423 Other equity 19,703 19,703 19,703 Retained losses (97,394) (68,056) (81,797) Stockholders' equity 18,731 48,070 34,329 Total liabilities and stockholders' equity 152, , ,502 2

5 Consolidated Cashflow Statement Q2 Year-to-date Full Year OPERATING ACTIVITIES Net loss before tax (9,927) (3,646) (16,170) (7,596) (16,367) Adjustments to reconcile net income to net cash generated from operating activities: Net interest expense 6,960 2,515 10,127 4,375 10,033 Depreciation and amortization 3,783 3,798 7,566 7,596 15,189 Tax paid (467) (465) (928) (925) (1,866) Net change in working capital/non-current items (3,759) (174) (4,240) ,816 Cash generated from operating activities (3,410) 2,028 (3,646) 3,651 28,805 INVESTING ACTIVITIES Purchases of property, plant and equipment (3,274) - (6,131) - (1,633) Net cash provided by investing activities (3,274) - (6,131) - (1,633) FINANCING ACTIVITIES Restructuring fee on bonds 3,062-4, Repayment of borrowings and interest - (2,363) (3,178) (4,326) (9,783) Net cash provided by financing activities 3,062 (2,363) 1,415 (4,326) (9,783) Net increase/(decrease) in cash and cash equivalents (3,622) (335) (8,362) (675) 18,889 Cash and cash equivalents at start of period 17,236 2,746 21,976 3,087 3,087 Cash and cash equivalents at end of period 13,614 2,412 13,614 2,412 21,976 3

6 Statement of Changes in Equity Attributable to equity holders of the Company Other Retained Share capital Total equity reserves earnings Balance as at 1 January ,423 19,703 (81,797) 34,329 Total recognized income and expense for the period from 1 January 2015 to 30 June (15,597) (15,597) Currency translation difference Balance as at 30 June ,423 19,703 (97,394) 18,731 4