28th Jul 2010 07:00
Forum Energy Plc
('Forum Energy' or the 'Company')
Interim Results
Forum Energy, the UK incorporated oil and gas exploration and production company with a focus on the Philippines, today announces its unaudited interim results for the six months ended 30 June 2010.
Forum recorded a loss of US$285,000 for the six months ended 30 June 2010, a 77% decrease on the comparative period in 2009 of US$1,243,000.
This substantial reduction in the loss for the period was due to the following achievements:
·; Full six months revenue from the Galoc field, increasing total revenues to US$2,528,000 (US$203,000 - 30 June 2009); and
·; Increased share of revenue from the Galoc field, as the operator has now fully recovered development costs, which resulted in a gross profit of US$880,000, compared to gross loss in the six months ended 30 June 2009 of US$173,000.
Operational Highlights
·; Company changing development via award of Service Contract 72 (SC72) over the GSEC101 licence area, as announced on 15 February 2010;
·; The Company is actively considering a number of ways of progressing the contract work programme in respect of SC72;
·; Galoc production of 1.6 million barrels of oil for first 6 months of 2010 (2.5 million barrels of oil gross for 12 months in 2009); and
·; Further exploration using gravity survey, over the SC40 licence area.
Financial Highlights
·; Revenues of US$2,528,000 (US$203,000 - 30 June 2009);
·; Gross Profit of US$880,000 (Gross loss of US$173,000 - 30 June 2009);
·; Loss before tax of US$285,000 (US$1,243,000 - 30 June 2009);
·; Working capital of US$3.5 million as of 30 June 2010 (US$2.9m - 30 June 2009); and
·; Continued reduction in administrative expenses.
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
Pelham Bell Pottinger
Nick Lambert / Henry Lerwill Tel: +44 (0) 20 7337 1500
Or visit the Company's website:
www.forumenergyplc.com
INDEPENDENT REVIEW REPORT TO Forum Energy Plc
Introduction
We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2010 which comprises the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Changes in Equity, the Consolidated Statement of Financial Position, the Consolidated Cash Flow Statement and the related explanatory notes.
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.
Directors' responsibilities
The interim report, including the financial information contained therein, is the responsibility of and has been approved by the directors. The directors are responsible for preparing the interim report in accordance with the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market which require that the half-yearly report be presented and prepared in a form consistent with that which will be adopted in the company's annual accounts having regard to the accounting standards applicable to such annual accounts.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.
Our report has been prepared in accordance with the terms of our engagement to assist the company in meeting the requirements of the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market and for no other purpose. No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorised to do so by our prior written consent. Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability
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. 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-yearly financial report for the six months ended 30 June 2010 is not prepared, in all material respects, in accordance with the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market.
BDO LLP
Chartered Accountants and Registered Auditors
Address
Date
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended 30 June 2010
___________________________________________________________________________________________
|
Six months |
Six months |
|||
|
Ended |
ended |
Year ended |
||
|
30 June 2010 |
30 June 2009 |
31 December 2009 |
||
|
US$000 |
US$000 |
US$000 |
||
|
Note |
Unaudited |
Unaudited |
Audited |
|
|
Revenue |
2,528 |
203 |
1,786 |
|
|
Cost of sales |
(1,648) |
(376) |
(1,590) |
|
|
______ |
______ |
______ |
||
|
Gross profit/( loss) |
880 |
(173) |
196 |
|
|
Administrative expenses |
(1,060) |
(1,099) |
(2,578) |
|
|
______ |
______ |
______ |
||
|
Loss from operations |
(180) |
(1,272) |
(2,382) |
|
|
Finance expense |
(107) |
- |
(117) |
|
|
Finance income |
2 |
54 |
2 |
|
|
______ |
______ |
______ |
||
|
Loss before tax |
(285) |
(1,218) |
(2,497) |
|
|
Tax expense |
- |
- |
102 |
|
|
______ |
______ |
______ |
||
|
Loss from continuing operations |
(285) |
(1,218) |
(2,395) |
|
|
Loss on discontinued operation, net of tax |
- |
(25) |
(1,332) |
|
|
______ |
______ |
______ |
||
|
Loss for the period/year |
(285) |
(1,243) |
(3,727) |
|
|
______ |
______ |
______ |
||
|
Total comprehensive loss for the period/year |
(285) |
(1,243) |
(3,727) |
|
|
______ |
______ |
______ |
||
|
Loss and total comprehensive income attributable to: |
||||
|
Owners of the parent |
(269) |
(1,225) |
(3,618) |
|
|
Non-controlling interest |
(16) |
(18) |
(109) |
|
|
______ |
______ |
______ |
||
|
(285) |
(1,243) |
(3,727) |
||
|
______ |
______ |
______ |
||
|
|
||||
|
Loss per ordinary share (US$) attributable to equity holders of the parent |
|
|
|
|
|
Basic and diluted |
3 |
(0.008) |
(0.041) |
(0.119) |
|
______ |
______ |
______ |
||
|
Loss per share (US$) on continued operations |
||||
|
Basic and diluted |
3 |
(0.008) |
(0.040) |
(0.075) |
|
______ |
______ |
______ |
||
|
Loss per share (US$) on discontinued operations |
||||
|
Basic and diluted |
3 |
- |
(0.001) |
(0.044) |
|
______ |
______ |
______ |
||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2010
|
30 June 2010 |
30 June 2009 |
31 December 2009 |
||
|
US$000 |
US$000 |
US$000 |
||
|
Unaudited |
Unaudited |
Audited |
||
|
Assets |
||||
|
Non-current assets |
||||
|
Property, plant and equipment |
3,159 |
3,568 |
4,168 |
|
|
Intangible assets |
41,370 |
40,711 |
40,859 |
|
|
Investments |
13 |
4 |
5 |
|
|
______ |
______ |
______ |
||
|
Total non-current assets |
44,542 |
44,283 |
45,032 |
|
|
Current assets |
||||
|
Inventories |
297 |
65 |
65 |
|
|
Trade and other receivables |
1,004 |
279 |
639 |
|
|
Advances to associated companies |
- |
3,165 |
- |
|
|
Cash and cash equivalents |
3,705 |
1,517 |
4,172 |
|
|
Non-current assets classified as held for sale |
- |
967 |
- |
|
|
______ |
______ |
______ |
||
|
Total current assets |
5,006 |
5,993 |
4,876 |
|
|
______ |
______ |
______ |
||
|
Total assets |
|
49,548 |
50,276 |
49,908 |
|
______ |
______ |
______ |
||
|
Liabilities |
|
|
||
|
Non-current liabilities |
||||
|
Provisions |
3,757 |
3,693 |
4,667 |
|
|
Deferred tax liability |
- |
102 |
- |
|
|
______ |
______ |
______ |
||
|
Total non-current liabilities |
3,757 |
3,795 |
4,667 |
|
|
Current liabilities |
||||
|
Trade payables, other payables and advances to associated companies |
1,510 |
2,136 |
810 |
|
|
______ |
______ |
______ |
||
|
Total current liabilities |
1,510 |
2,136 |
810 |
|
|
______ |
______ |
______ |
||
|
Total liabilities |
(5,267) |
(5,931) |
(5,477) |
|
|
______ |
______ |
______ |
||
|
Total net assets |
44,281 |
44,345 |
44,431 |
|
|
______ |
______ |
______ |
||
|
Capital and reserve attributable to equity |
||||
|
holders of the company |
||||
|
Share capital |
5,981 |
5,443 |
5,941 |
|
|
Share premium reserve |
50,964 |
48,938 |
50,869 |
|
|
Share options reserve |
493 |
352 |
493 |
|
|
Retained deficit |
(14,595) |
(11,933) |
(14,326) |
|
|
______ |
______ |
______ |
||
|
42,843 |
42,800 |
42,977 |
||
|
Non-controlling interest |
1,438 |
1,545 |
1,454 |
|
|
______ |
______ |
______ |
||
|
Total equity |
44,281 |
44,345 |
44,431 |
|
|
______ |
______ |
______ |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 30 June 2010
--------------------___________________________________________________________________________________________
|
|
|
||||||
|
Share capital |
Share premium |
Share option reserve |
Retained deficit |
Total |
Non-controlling interest |
Total capital and reserves |
|
|
US$000 |
US$000 |
US$000 |
US$000 |
US$000 |
US$000 |
US$000 |
|
|
Balance as at 1 January 2009 |
5,443 |
48,938 |
157 |
(10,708) |
43,830 |
1,563 |
45,393 |
|
Total comprehensive income |
|||||||
|
for the period |
- |
- |
- |
(1,225) |
(1,225) |
(18) |
(1,243) |
|
Share based payments |
- |
- |
195 |
- |
195 |
- |
195 |
|
______ |
______ |
______ |
______ |
______ |
______ |
______ |
|
|
|
|||||||
|
Balance as at 30 June 2009 |
|||||||
|
(Unaudited) |
5,443 |
48,938 |
352 |
(11,933) |
42,800 |
1,545 |
44,345 |
|
Total comprehensive income |
|||||||
|
for the period |
- |
- |
- |
(2,393) |
(2,393) |
(91) |
(2,484) |
|
Share based payments |
- |
- |
141 |
- |
141 |
- |
141 |
|
Issue of shares (net of costs) |
498 |
1,931 |
- |
- |
2,429 |
- |
2,429 |
|
______ |
______ |
______ |
______ |
______ |
______ |
______ |
|
|
Balance as at 31 December |
|||||||
|
2009 |
5,941 |
50,869 |
493 |
(14,326) |
42,977 |
1,454 |
44,431 |
|
Total comprehensive income |
|||||||
|
for the period |
- |
- |
- |
(269) |
(269) |
(16) |
(285) |
|
Issue of shares (net of costs) |
40 |
95 |
- |
- |
135 |
- |
135 |
|
______ |
______ |
______ |
______ |
______ |
______ |
______ |
|
|
Balance as at 30 June 2010 |
|||||||
|
(Unaudited) |
5,981 |
50,964 |
493 |
(14,595) |
42,843 |
1,438 |
44,281 |
|
______ |
______ |
______ |
______ |
______ |
______ |
______ |
CONSOLIDATED CASH FLOW STATEMENT
For the period ended 30 June 2010
___________________________________________________________________________________________
|
Six months |
Six months |
Year |
||
|
ended |
ended |
Ended |
||
|
30 June 2010 |
30 June 2009 |
31 December 2009 |
||
|
US$000 |
US$000 |
US$000 |
||
|
Unaudited |
Unaudited |
Audited |
||
|
Cash flows from operating activities |
||||
|
Loss before tax for the period/year |
(285) |
(1,243) |
(3,829) |
|
|
Adjustments for: |
||||
|
Depreciation |
1,106 |
226 |
796 |
|
|
Foreign exchange loss/(gain) |
86 |
(11) |
- |
|
|
(Gain)/Loss on sale financial assets |
(8) |
4 |
3 |
|
|
Finance income |
(2) |
(1) |
(2) |
|
|
Share of loss/(profit) of associates |
- |
25 |
- |
|
|
Equity settled share-based payment expense |
- |
195 |
336 |
|
|
______ |
______ |
______ |
||
|
1,182 |
438 |
1,133 |
||
|
______ |
______ |
______ |
||
|
Cash flows from operating activities before |
||||
|
changes in working capital and provisions |
897 |
(805) |
(2,696) |
|
|
(Increase)/Decrease in trade and other receivables |
(365) |
(4) |
1,124 |
|
|
(Increase)/Decrease in inventories |
(232) |
12 |
12 |
|
|
(Decrease)/Increase in trade and other payables |
(211) |
(65) |
178 |
|
|
Increase in provisions and employee benefits |
14 |
18 |
21 |
|
|
______ |
______ |
______ |
||
|
(794) |
(39) |
1,335 |
||
|
______ |
______ |
______ |
||
|
Net cash flows from operating activities |
103 |
(844) |
(1,361) |
|
|
Investing activities |
||||
|
Purchases of property, plant and equipment |
(97) |
(10) |
(21) |
|
|
Purchase of intangible assets |
(511) |
(105) |
(253) |
|
|
Sale of discontinued operations |
- |
- |
813 |
|
|
(Repayments)/Advances from/to associated companies |
- |
(64) |
- |
|
|
Interest received |
2 |
1 |
2 |
|
|
______ |
______ |
______ |
||
|
Net cash (used in)/from investing activities |
(606) |
(178) |
541 |
|
|
Financing activities |
||||
|
Issue of ordinary shares (net of issue costs) |
135 |
- |
2,429 |
|
|
______ |
______ |
______ |
||
|
Net cash from financing activities |
135 |
- |
2,429 |
|
|
______ |
______ |
______ |
||
|
Net (decrease)/increase in cash and cash equivalents
|
(368) |
(1,022) |
1,609 |
|
|
Cash and cash equivalents at beginning of period/year
|
4,172 |
2,574 |
2,574 |
|
|
Exchange losses on cash and cash equivalents |
(99) |
(35) |
(11) |
|
|
______ |
______ |
______ |
||
|
Cash and cash equivalents at end of period/year |
3,705 |
1,517 |
4,172 |
|
|
______ |
______ |
______ |
||
UNAUDITED NOTES FORMING PART OF THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the period ended 30 June 2010
1. Accounting Policies
Basis of preparation
The condensed interim financial statements have been prepared using policies based on International Financial Reporting Standards (IFRS and IFRIC interpretations) issued by the International Accounting Standards Board (IASB) as adopted for use in the EU. The condensed interim financial information has been prepared using the accounting policies applied for the year ended 31 December 2009 and which will be applied in the Group's statutory financial statements for the year ended 31 December 2010.
2. Financial Reporting Period
The condensed interim financial information for the period 1 January 2010 to 30 June 2010 is unaudited. In the opinion of the Directors the condensed 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 2009 to 30 June 2009 and the audited financial year ended 31 December 2009.
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 2009 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 auditors' report on those accounts was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498(2)-(3) of the Companies Act 2006.
3. 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 parent of US$269,000 (2009: US$1,225,000) and the weighted average number of shares being 33,145,130 ordinary shares issued for the period ended 30 June 2010 (2009: 30,084,121). The corresponding figures for the year ended 31 December 2009 were: loss for the period attributable to equity holders of the parent of US$3,618,000 and weighted average number of shares 30,372,599.
4. Functional Currency
All amounts have been prepared in US dollars, this being the Group's functional currency and its presentational currency.
5. Additional Information
Further copies of the Interim Results are available from the Company Secretary, Forum Energy plc, 120 Bridge Road, Chertsey, Surrey KT16 8LA, United Kingdom, Tel: +44 (0)1932 445 344, Fax: +44 (0)1932 445 345, [email protected] or downloaded from the website: www.forumenergyplc.com.
SHAREHOLDER INFORMATION
Directors
Walter W Brown (Chief Executive Officer)
Barry Stansfield (Non-Executive Chairman)
Andrew J Mullins (Executive Director)
Roberto V Ongpin (Non-Executive Director)
Robert C Nicholson (Non-Executive Director) - Appointed 9 March 2010
Company Secretary
Andrew Mullins
Registered office
120 Bridge Road
Chertsey
Surrey KT16 8LA
Principal place of business
14F Pearlbank Centre
146 Valero Street
Salcedo Village
Makati City
Metro Manila
The Philippines
Company number
05411224
(England and Wales)
Independent Auditors
BDO LLP
55 Baker Street
London W1U 7EU
Brokers & Financial Advisers
Execution Noble & Company Limited
The Old Truman Brewery
91 Brick Lane
London E1 6QL
Registrars
Share Registrars Ltd
9 Lion and Lamb Yard
Farnham
Surrey GU9 7LL
Solicitors
Osborne Clarke
2 Temple Back East
Temple Quay
Bristol BS1 6EG
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