TIDMSEA
RNS Number : 1703Z
SeaEnergy PLC
16 September 2015
16 September 2015
SeaEnergy PLC
("SeaEnergy" or the "Company")
2015 Interim Results
SeaEnergy (LSE: "SEA"), the innovative energy services group,
today announces half year results for the six months ended 30 June,
2015.
Main points
Operational
-- Low oil prices have impacted levels of work in R2S VAM and SE
Innovation; R2S Forensic ahead of budget
-- Signs of recovery into 2016, based on Operators' intentions
-- Increased focus on R2S VAM
-- Internationalisation generating prospects in West Africa, Australia, Netherlands and others
-- Diversification leads to first R2S VAM work secured in nuclear sector
-- Exit from Ship Management close to completion
Financial
-- Turnover from continuing operations of GBP1.8 million (2014:
GBP2.5 million) due to oil price weakness
-- Operating loss from continuing operations before
non-recurring expenses of GBP653,000 (2014: GBP78,000 profit)
-- Working capital position being addressed
-- Impairments to legacy assets of GBP2.0 million, due to
Lansdowne share price decline and reduction in royalty acreage
Commenting on today's announcement David Sigsworth, Chairman,
said: "The business has been impacted by the decline in oil price
and deferrals and reductions in Operators' budgets. However, the
steps it was already taking, to focus on R2S VAM, to reduce central
costs and to internationalise and diversify, are positioning us
well to benefit from the recovery expected in 2016 when we
anticipate a return to profitability.
For further information contact:
SeaEnergy PLC
John Aldersey-Williams, Chief Executive +44 1224 748480
Steven Bertram, Finance & Commercial
Director
Stifel Nicolaus Europe Limited (NOMAD + 44 20 7710
& Broker) 7600
James Grace
Jessica Kalyanpur
www.seaenergy-plc.com
www.r2s.co.uk
www.maxandco.co.uk
www.lansdowneoilandgas.com
SeaEnergy PLC
Interim Results for the six months ended 30 June 2015
Chairman's Statement
Dear shareholder,
For the six months ended 30 June 2015 the company recorded
revenues from continuing operations of GBP1.8 million (2014: GBP2.5
million) and a pre-tax operating loss of GBP881,000 (2014:
GBP22,000 loss). Impairments totalling GBP2.0 million (2014: nil)
relating to the legacy assets have increased the loss for the
period to GBP3.0 million.
As we reported on 30 June, the sustained low oil prices in the
first half of 2015, following their fall in late 2014, has impacted
business levels across the Group, reducing turnover and
profitability in the first half of the year and affecting
expectations for the full year.
Following the decision, announced early this year, to exit
Marine activities, SeaEnergy is focussing on R2S Visual Asset
Management ("VAM"), the most profitable part of our business and
where we see the greatest potential for growth.
The oil services sector is enduring a major slowdown in
activity, as operators retrench in response to sustained lower oil
prices. The Company's core activity - the provision of R2S VAM
software and services - has been affected by cost cutbacks and work
deferrals, although there are emerging signs of recovery. SE
Innovation has also been affected by the oil industry downturn and
is taking steps to restore profitability. However the Forensic
division is unaffected by lower oil prices, and is performing ahead
of budget at this stage.
The planned exit from Marine and Ship Management is almost
complete with the team's employment having transferred to Go
Offshore (UK) Limited as of 1 September and the formal handover of
responsibilities expected to be completed in the next few weeks. It
remains our plan to realise the value of the legacy assets when
market conditions are appropriate.
Central cost savings have been achieved by a reduction in the
number of Executive Directors, by all of the main board Directors
waiving part of their remuneration, and by renegotiation or
cancellation of some third party contracts. These savings will
become more evident in the second half of the year and further cost
reductions are planned for 2016 as the Group structure is
simplified for a more focussed business following the exit from
Ship Management and the planned relinquishment of part of the lease
on the head office.
The Company will be leaner and more tightly focussed on R2S
going into 2016.
Current Trading
The final quarter of each year has historically been our busiest
with new orders and new work, and the Company is currently seeing
an increase in the number of new enquiries. However, following a
detailed review of the projects which may contribute to R2S VAM
revenues in 2015, and the outlook for SE Innovation, we are now
reducing our earlier expectations of performance. While a number of
opportunities for reducing this shortfall remain and are being very
actively pursued, the exact timing of orders and the commencement
dates for projects is uncertain and as a result, at the date of
this report, the Company considers that it is no longer confident
that it can meet its previous expectations of performance and now
anticipates an operating loss for 2015 before a recovery into
profitability in 2016.
SeaEnergy began the year with a small overdraft. At 30 June our
overdraft stood at GBP461,000 of a facility of GBP650,000. The
Company has an agreement in principle for additional working
capital funding, to reinforce its financial position before the
anticipated upturn in 2016, and expects to make further
announcements on this in due course.
The expansion of our business development team and some signs of
recovery in the market have resulted in the Company seeing an
increase in the number of new enquiries for late 2015 and 2016.
Interim Results
Turnover from continuing operations in the first half of 2015
was GBP1.8 million, excluding revenues of GBP908,000 from Ship
Management, which has been treated as a discontinued operation.
Reduced activity levels combined with higher business
development cost and international activity to reduce the first
half gross profit from GBP1.1 million in 2014 to GBP183,000 in
2015. After reflecting central costs and non-recurring expenses the
Group recorded an operating loss from continuing operations of
GBP881,000 compared with GBP22,000 in 2014. This is after
reflecting non-recurring expenses of GBP228,000 in connection with
the departure of the Operations Director.
The Company's planning for the early part of 2016 is already
showing an upturn in expected activity levels and we anticipate a
return to profitability in 2016.
A further fall in the share price of Lansdowne Oil & Gas
plc, in which we now hold 18.67%, gave rise to an impairment in the
carrying value of our investment of GBP1.1 million. Our interest in
Lansdowne fell below 20% in early March 2015 when our holding was
diluted through an equity issue by Lansdowne in which we did not
participate. Up until that date, we accounted for Lansdowne as an
Associate; since that date we have treated it as an investment.
Following the reduction in the acreage over which we hold
royalty interests we have also recognised an impairment to the
carrying value of our royalties through an impairment provision of
GBP875,000.
Operational Review
R2S
Clients' budgets that were set in 2014 in the expectation of oil
prices above $100 per barrel have been severely reduced or deferred
and operators have reduced discretionary spending activities. This
has reduced volumes of work for R2S VAM. Our internationalisation
strategy, to which we committed in 2014, has been vindicated as the
majority of work in the year to date has come from international
markets, primarily Canada and the US Gulf of Mexico. These efforts
are continuing to generate leads in West Africa, the Netherlands,
Australia, Indonesia, Thailand, Mexico and Iraq. We expect to see
more international activity in the second half and into 2016.
We are also pleased to announce our first work in the nuclear
sector, as we have been awarded small contract for a proof of
concept pilot project. We will be starting work on this project in
the next few weeks and see this as an opportunity to build a
significant presence in this sector. Diversification has also seen
sales of software into non-oil sectors such as pharmaceuticals and
chemicals, through our North American agents, which may also lead,
in time, to full R2S VAM capture opportunities.
We have also achieved cost reductions within R2S, as the duties
undertaken by the former senior management team, who left the
business following completion of the earn-out last year, have been
taken on by other existing employees, allowing for career
development, cost savings and involving a greater day to day
involvement in the business by the Executive Directors.
We are now entering the period of the year in which oil
companies set their budgets for 2016, and this is being undertaken
in the expectation of oil prices remaining at around current
levels. Despite this, we are already receiving strong indications
from operators that R2S VAM projects are being built into these
budgets and this supports our anticipation of a return to growth
and profit in 2016.
Where markets are difficult to access, for example for reasons
of health and safety of our staff, regulatory or tax complexity,
risk of corruption or barriers to entry, we are investigating
alternative models for monetising them, through franchising or
other arrangements.
During 2016, we will continue to develop our suite of products.
We are continuing to invest in R2S VAM to deliver functionality and
usability enhancements to the product. This will help to maintain
our strong client relationships and competitive position.
SE Innovation
(MORE TO FOLLOW) Dow Jones Newswires
September 16, 2015 02:01 ET (06:01 GMT)
SE Innovation, comprising Max and Co, Consulting and R2S
Forensic, has also seen overall activity levels impacted by the oil
price weakness in the first half of 2015. Max and Co is performing
well below budgeted levels. We are addressing this by developing
business outside the oil sector, improving contractual terms and by
allowing staff turnover to contribute to cost reductions.
Consulting activities are focussed on supporting the penetration
and use of R2S VAM within our clients, to generate additional
software licences and R2S VAM captures. In the current climate, the
consulting team is being kept to a minimum and also seeking other
near term revenue opportunities.
Forensic has not been affected by the oil price fall and is
expected to exceed its budget for the full year largely through the
expansion of its network of agents in North America. This expansion
has generated a significant increase in sales of the R2S software
and is a trend we expect to continue into 2016 as these new agents
become more established.
Ship Management
Following our decision, announced early this year, to cease
tendering for the supply of offshore wind farm vessels, we have
been investigating the possible exit routes for the associated Ship
Management operation we had established in support of potential
offshore wind farm vessels.
The Ship Management team had three vessels under management, all
owned by Otto Marine Group's GO Offshore ("GO") subsidiary. GO has
been impressed with the team's performance and we are pleased to
announce that on 1 September, the team's employment transferred to
GO, and we expect to be able to transfer responsibility for all
remaining aspects of the Ship Management business over the next few
weeks.
This will lead to opportunities to simplify Group structure and
help reduce central costs further.
Legacy assets
As a result in the decline of Lansdowne's share price between 1
January and 30 June, we have further impaired the carrying value of
this holding in the balance sheet, resulting in an impairment
provision in the first half of GBP1.1m.
In August, Lansdowne Oil and Gas plc participated in a well on
its Midleton prospect, having successfully farmed this out to
Kinsale Energy. Unfortunately, the well contained non-commercial
quantities of gas, and was plugged and abandoned. This has further
impacted Lansdowne's share price, but it remains SeaEnergy's
strategy to divest this investment at the best price possible, when
there is acceptable liquidity in the stock.
EnQuest, the Operator of the Scolty field, over which SeaEnergy
holds a royalty interest, stated in its results for 2014 that it
anticipated submitting a Field Development Plan for the field
during 2015. This should improve the value of this royalty
interest. In the meantime as a result of a reduction in potential
reserves in that block, following a partial relinquishment of the
acreage to which the royalty interest relates, the Company has
impaired the carrying value of its royalties by GBP875,000.
Health, Safety and the Environment
The health and safety of our employees, contractors, clients and
stakeholders is critical to our success, and we are pleased to
report that the Group has had no reportable incidents in the Group
in the six months to 30 June 2015. SeaEnergy continues to manage
its activities for minimal HSE exposure.
Outlook
Although business performance during the first half of the year
has been significantly impacted by the oil price collapse, we have
taken steps to minimise this impact and to position the business
for recovery as activity levels pick up into 2016. The focus of the
business on R2S positions it well for growth, and
internationalisation and diversification have near term potential
to contribute strongly.
David Sigsworth
Chairman
Consolidated Interim Balance Sheet
30 June 31 December 30 June
2015 2014 2014
(unaudited) (audited) (unaudited)
Note GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Goodwill and other intangible assets 4 10,985 11,912 11,953
Property, plant & equipment 236 270 266
Investments 1,810 2,981 5,373
13,031 15,163 17,592
------------- ------------ -------------
Current assets
Trade and other receivables 2,620 2,722 1,431
Deferred income tax asset - - 44
Current income tax asset 6 57 - -
Cash and cash equivalents - - 676
------------- ------------ -------------
2,677 2,722 2,151
------------- ------------ -------------
Total assets 15,708 17,885 19,743
LIABILITIES
Current liabilities
Trade and other payables 5 (2,149) (1,796) (1,302)
Bank overdraft (461) (22) -
Provisions (13) (12) (11)
------------- ------------ -------------
(2,623) (1,830) (1,313)
------------- ------------ -------------
Non-current liabilities
Deferred income tax liabilities (350) (350) (448)
Other non-current liabilities - (2) (4)
------------- ------------ -------------
(350) (352) (452)
------------- ------------ -------------
Total liabilities (2,973) (2,182) (1,765)
Net assets 12,735 15,703 17,978
------------- ------------ -------------
EQUITY
Ordinary shares 5,636 5,636 5,636
Treasury shares (500) (500) (500)
Share premium 1,225 1,225 1,225
Redemption reserve 1,920 1,920 1,920
Special reserve 1,404 1,404 1,404
Retained earnings 3,050 6,018 8,293
------------- ------------ -------------
Total equity 12,735 15,703 17,978
------------- ------------ -------------
Consolidated Interim Statement of Comprehensive Income
Half-year ended 30
June
2015 2014
(unaudited) (unaudited)
Note GBP'000 GBP'000
Continuing operations
Turnover 1,838 2,462
Rental income 37 49
Revenue 1,875 2,511
Cost of sales (1,692) (1,418)
------------- -------------
Gross profit 183 1,093
Operating expenses (836) (1,015)
Non-recurring expenses (228) (100)
Operating loss (881) (22)
Finance income 7 7
Finance expense (4) (2)
------------- -------------
Finance income - net 3 5
Impairment of investment in royalties (875) -
Impairment of investment (1,130) -
Share of loss of associate and other
movements (57) (88)
Loss before taxation (2,940) (105)
Taxation 6 23 -
------------- -------------
Loss from continuing operations (2,917) (105)
------------- -------------
Discontinued operation
Loss from discontinued operations (net
of tax) (51) (133)
------------- -------------
Loss for the financial period (2,968) (238)
(MORE TO FOLLOW) Dow Jones Newswires
September 16, 2015 02:01 ET (06:01 GMT)
------------- -------------
Loss per share
Basic and diluted 2 (5.27)p (0.43)p
Continuing operations
Basic and diluted 2 (5.18)p (0.19)p
Consolidated Interim Statement of Cash Flows
Half-year ended 30
June
2015 2014
(unaudited) (unaudited)
Note GBP'000 GBP'000
Cash flows (used in) / generated by operating
activities: 7 (399) 417
Cash flows from investing activities:
Interest received 7 7
Acquisition of intangible assets (34) (83)
Acquisition of property, plant and equipment (14) (54)
Acquisition of subsidiary - deferred consideration - (4,284)
Net cash used in investing activities (41) (4,414)
Cash flows from financing activities:
Payment of finance lease liabilities (2) (2)
Interest paid (4) -
Net cash used in financing activities (6) (2)
Effect of exchange rate fluctuations on
cash held 7 (2)
------------- -------------
Net decrease in cash and cash equivalents (439) (4,001)
Cash and cash equivalents at start of period (22) 4,677
Cash and cash equivalents at end of period (461) 676
------------- -------------
Consolidated Statement of Changes in Equity
Share Treasury Share Redemption Special Retained Total
capital shares premium reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------- ----------- --------- ------------- --------- ---------- ----------
At 1 January 2014 5,546 (500) 1,000 1,920 1,404 8,516 17,886
Loss for the financial
year - - - - - (2,527) (2,527)
Issue of new shares 90 - 225 - - - 315
Share based payment
transactions - - - - - 29 29
At 31 December 2014 5,636 (500) 1,225 1,920 1,404 6,018 15,703
--------- ----------- --------- ------------- --------- ---------- ----------
At 1 January 2015 5,636 (500) 1,225 1,920 1,404 6,018 15,703
Loss for the period - - - - - (2,968) (2,968)
At 30 June 2015 5,636 (500) 1,225 1,920 1,404 3,050 12,735
--------- ----------- --------- ------------- --------- ---------- ----------
At 1 January 2014 5,546 (500) 1,000 1,920 1,404 8,516 17,886
Loss for the period - - - - - (237) (237)
Issue of new shares 90 - 225 - - - 315
Share based payment
transactions - - - - - 14 14
At 30 June 2014 5,636 (500) 1,225 1,920 1,404 8,293 17,978
--------- ----------- --------- ------------- --------- ---------- ----------
Notes to the Interim Statement
1. Basis of Presentation
Accounting Policies
The interim financial information for the six months ended 30
June 2015 has been prepared on the basis of the accounting policies
which will be adopted in the 2015 Annual Report and Accounts, and
IAS 34, "Interim Financial Reporting" as adopted by the European
Union.
The interim financial information does not comprise statutory
accounts within the meaning of section 434 of the Companies Act
2006. The results for the six months to 30 June 2015 and the
comparative results for six months to 30 June 2014 are unaudited.
The comparative figures for the year ended 31 December 2014 do not
constitute the statutory financial statements for that year. 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 IFRSs as adopted
by the European Union. Those financial statements have been
delivered to the Registrar of Companies and include the auditor's
report which was unqualified and did not contain a statement under
Section 498 of the Companies Act 2006.
Going Concern
The Directors have prepared the interim financial information on
the going concern basis which assumes that the Group and Company
and its subsidiaries will continue in operational existence for the
foreseeable future.
Principal Risks and Uncertainties
The management of the business and the execution of the Group's
strategy are subject to a number of risks. Risks are reviewed by
the Board and appropriate processes put in place to monitor and
mitigate them. If more than one event occurs, it is possible that
the overall effect of such events would compound the possible
adverse effects on the Group. Further details of the Group's risk
profile analysis can be found on pages 23 of our 2014 Annual
Report, available from the website: www.seaenergy-plc.com
2. Loss per Ordinary Share
The calculation of the basic loss per share from continuing
operations attributable to equity holders of the Company is based
on the loss for the period of GBP2.9 million (6 months to 30 June
2014: loss GBP0.1 million) and 56,364,823 (6 months to 30 June
2014: 55,839,568) ordinary shares, being the weighted average
number of shares in issue during the period.
Continuing operations Half year ended 30 June
2015 2014
Pence per share
Loss per share - basic and diluted (5.18) (0.19)
-------------- -------
Discontinued operations
Loss per share - basic and diluted (0.09) (0.24)
-------------- -------
Continuing and discontinued operations
Loss per share - basic and diluted (5.27) (0.43)
-------------- -------
For diluted earnings per share, the weighted average number of
ordinary shares in issue is adjusted to assume conversion of all
dilutive potential ordinary shares. At the reporting date the
Company had one class of potential ordinary shares; share options.
As a loss was recorded in the current period, the issue of
potential ordinary shares would have been anti-dilutive.
3. Segmental Reporting
Group - continuing operations R2S Consulting Corporate Group
GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------- ---------- ----------- ---------- ---------
2015
Turnover 1,467 371 - 1,838
Rental Income - - 37 37
---------- ----------- ---------- ---------
Revenue 1,467 371 37 1,875
Non-recurring expenses - - (228) (228)
Operating profit/(loss) 455 (233) (875) (653)
-------------------------------- ---------- ----------- ---------- ---------
(881)
Finance income net 3
Impairment of royalties (875)
Impairment of investment (1,130)
Share of associates ( oil &
gas) (57)
Taxation 23
Loss for the period (2,917)
2014
Turnover 1,740 722 - 2,462
Rental Income - - 49 49
---------- ----------- ---------- ---------
Revenue 1,740 722 49 2,511
Non-recurring expenses (98) - (2) (100)
Operating profit/(loss) 863 151 (936) 78
(MORE TO FOLLOW) Dow Jones Newswires
September 16, 2015 02:01 ET (06:01 GMT)
-------------------------------- ---------- ----------- ---------- ---------
(22)
Finance income net 5
Share of associates ( oil &
gas) (88)
Taxation -
-------------------------------- ---------- ----------- ---------- ---------
Loss for the period (105)
-------------------------------- ---------- ----------- ---------- ---------
Non -recurring expenses of GBP228,000 relate to the departure of
M B Comerford, a director who resigned on 6 February 2015.
A decision to cease the Marine activities of the Group was taken
earlier in 2015 and cessation of our Ship Management operation
agreed in August 2015 consequently it has been treated as a
discontinued operation in these interim accounts. The figures for
the discontinued business have been removed from the figures above
and are disclosed separately here.
Discontinued operation 2015 2014 restated
Turnover 908 604
Revenue 908 604
Operating loss (51) (133)
------------------------ ----- --------------
Loss for the period (51) (133)
------------------------ ----- --------------
The comparative revenue figure above has been restated to remove
flow through vessel costs, the cost of sales for the same period
has likewise been reduced.
The Group's revenues and operating results of the three
operating segments are highlighted in the above table. The Chief
Operating Decision Maker (the Board) monitors the operating results
of its operating segments separately for the purposes of making
decisions and performance assessment.
4. Goodwill and Other Intangible Assets
Goodwill Oil & Gas Other Total
GBP'000 GBP'000 GBP'000 GBP'000
--------- ----------- --------- ---------
At 1 January 2014 9,785 1,790 368 11,943
Additions - - 137 137
Amortisation - - (168) (168)
At 31 December 2014 9,785 1,790 337 11,912
--------- ----------- --------- ---------
At 1 January 2015 9,785 1,790 337 11,912
Additions - - 34 34
Impairment provision - (875) - (875)
Amortisation - - (86) (86)
At 30 June 2015 9,785 915 285 10,985
--------- ----------- --------- ---------
At 30 June 2014 9,785 1,790 378 11,953
--------- ----------- --------- ---------
5. Trade and Other Payables
30 June 31 December 30 June
2015 2014 2014
(unaudited) (audited) (unaudited)
GBP'000 GBP'000 GBP'000
Trade payables 949 721 575
Overseas corporation tax 34 - -
Other taxes and social security 219 220 249
Accruals 703 683 337
Amounts due under finance leases 4 4 4
Other payables 240 168 137
2,149 1,796 1,302
------------- ------------ -------------
6. Taxation
It is anticipated that for the period, the UK Corporation tax
payable by the Group's subsidiaries will be fully absorbed by group
relief and credit for overseas taxes therefore no provision for UK
tax payable has been made. The net tax credit of GBP23,000
represents Canadian and US taxes payable of GBP34,000 offset by a
tax credit of GBP57,000 on the carry back of losses arising in R2S
LLC during the period.
7. Reconciliation of Loss for the Period to Net Cash (Used In) /
Generated by Operating Activities
Half year ended 30
June
2015 2014
GBP'000 GBP'000
Loss for period from continuing operations (2,940) (105)
Loss for period from discontinued operations (51) (133)
---------- ---------
Loss before tax (2,991) (238)
Adjustments for:
Depreciation of property, plant and equipment 44 42
Amortisation of intangible assets 86 73
Impairment of investment in royalties 875 -
Impairment of investment 1,130 -
Share of loss from associates 57 125
Loss on sale of property, plant and equipment 4 -
Other movements relating to associates - (37)
Equity settled share-based payment transactions - 14
Operating cash flows before movements in working
capital (795) (21)
Change in trade and other receivables 45 137
Change in trade and other payables 353 305
Change in provisions 1 1
---------- ---------
Cash (used in) / generated by operations (396) 422
Net finance income (3) (5)
---------- ---------
Net cash (used in) generated / by operating activities (399) 417
---------- ---------
8. Related Party Transactions
(a) Directors of Return To Scene Limited ("R2S")
In addition to her role as Director of wholly owned subsidiary
R2S, S Khan is a partner in Nathan Maknight, Chartered Accountants,
the Group incurred accountancy fees of GBP20,000 in the six months
to 30 June 2015 (6 months to 30 June 2014: GBP7,700) for services
provided by Nathan Maknight.
(b) Associates
During the period to 30 June 2015 the Group made payments for
administrative expenses on behalf of its associate company
Mesopotamia Petroleum Company Limited ("MPC"). The balance owed by
MPC to the Group as at 30 June 2015 is GBP482,000 (30 June 2014:
GBP450,000). In January 2011 the Company, along with all other MPC
creditors, agreed to defer the amount owed by MPC until January
2013. The Company has subsequently extended the deferred period. No
interest is charged and no guarantee has been given. The Company
has made full provision against this debt.
9. Post Balance Sheet Events
(a). Discontinued operation
A decision to cease tendering for offshore wind farm support
vessels was taken earlier in 2015 and ceased immediately. The
related Ship Management business has continued until an appropriate
exit was found. The Ship Management team had been managing three
vessels, all a part of the Otto Marine Group owned via GO Offshore
("GO"). During the second quarter it was agreed in principle that
GO will take over the Ship Management team and the office from
which they are operating.
On 1 September, the team's employment and the office lease
transferred to GO, and we expect to be able to close all remaining
aspects of the Ship Management business over the next few weeks.
Consequently the Ship Management operation has been treated as a
discontinued operation in these interim accounts.
10. Contingent Liability
Under the terms of a joint venture ("JV") agreement dated 26
February 2009 between the Iraqi Drilling Company ("IDC") and the
Company's associate Mesopotamia Petroleum Company Limited ("MPC"),
MPC was required to confirm its share of the initial JV funding by
a prescribed date and failure to do so was to result in liability
for a penalty of US $2.2 million. MPC's liability for this penalty
was guaranteed jointly and severally by the Company, another MPC
shareholder and an associate of that shareholder.
In July 2009 IDC unilaterally purported to terminate the JV
while MPC argued that it was entitled to an extension of the date
by which its share of JV funding was to be confirmed.
In October 2011 IDC commenced an action against MPC in the
Specialised Commercial Civil Court in Baghdad claiming payment of
the penalty sum. A Power of Attorney has been provided to local
Counsel to allow them to manage the Court proceedings as
appropriate. On 28 August 2012 the Court upheld a ruling against
MPC that it is liable to pay the penalty. MPC has appealed against
this decision and its Directors are reviewing the Court's latest
decision and the options available to it. As the date of the
Interim Report, no further Court rulings have been announced since
August 2012 and it is unclear when the next ruling will be
made.
11. Copies of the Interim Report
(MORE TO FOLLOW) Dow Jones Newswires
September 16, 2015 02:01 ET (06:01 GMT)
Ramco Energy (LSE:ROS)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
Ramco Energy (LSE:ROS)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024
