22nd Jul 2009 07:00
22 July 2009
Forum Energy Plc
('Forum' or the 'Company')
Interim results to 30 June 2009
Forum recorded a loss of US$1,243,000 for the interim period ended 30 June 2009 (US$1,657,000 for interim period ended 30 June 2008). This was primarily attributed to administrative expenses and share-based payments.
Revenues for the period were US$203,000 (2008: US$389,000) attributable to oil production from the offshore North West Palawan interests.
Operational Highlights
Completed further evaluation of the COC131 asset and initiated programme to convert licence into full production contract to enhance value;
Signed Gas Sale and Purchase Agreement with DESCO on the development of the Libertad Gas Field and commenced negotiations with the DOE on power plant installation;
First revenues from Galoc expected Q3 2009;
Continued to refine the overall business and strategically position the Company for the GSEC101 Service Contract expected in H2 2009; and
Evaluated other strategic investments in the Oil & Gas sector for possible future participation.
Financial Highlight
Revenues of US$203,000 for the interim period ended 30 June 2009 (US$389,000 - 30 June 2008);
Loss of US$1,243,000 for the interim period ended 30 June 2009 (US$1,657,000 - 30 June 2008);
Shareholders' equity of US$44.3 million as of 30 June 2009 (US$47.3m - 30 June 2008);
Working capital of US$2.9 million as of 30 June 2009 (US$6.2m - 30 June 2008);
Substantial 40% reduction in administrative expenses to US$1.1 million as of 30 June 2009 (US$1.8m - 30 June 2008).
For further information please contact:
Forum Energy plc Tel: +44 (0) 1932 445 344
Dr Walter W. Brown
Andrew Mullins
Noble & Company Ltd, Nominated Adviser & Broker Tel: +44 (0) 20 7763 2200
Brian Stockbridge
Jarod Casey
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 2009 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 2009 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 Stoy Hayward LLP
Chartered Accountants and Registered Auditors
London
Date: 21 July 2009
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended 30 June 2009
___________________________________________________________________________________________
|
Six months |
Six months |
|
||
|
ended |
ended |
Year ended |
||
|
30 June 2009 |
30 June 2008 |
31 December 2008 |
||
|
US$000 |
US$000 |
US$000 |
||
|
Note |
Unaudited |
Unaudited |
Audited |
|
|
Revenue |
203 |
389 |
706 |
|
|
Cost of sales |
(376) |
(524) |
(1,017) |
|
|
______ |
______ |
______ |
||
|
Gross loss |
(173) |
(135) |
(311) |
|
|
Administrative expenses |
(1,099) |
(1,822) |
(4,364) |
|
|
______ |
______ |
______ |
||
|
Loss from operations |
(1,272) |
(1,957) |
(4,675) |
|
|
Finance expense |
- |
(10) |
- |
|
|
Finance income |
54 |
307 |
306 |
|
|
______ |
______ |
______ |
||
|
Loss before tax |
(1,218) |
(1,660) |
(4,369) |
|
|
Tax expense |
- |
(10) |
(68) |
|
|
______ |
______ |
______ |
||
|
Loss from continuing operations |
(1,218) |
(1,670) |
(4,437) |
|
|
(Loss)/Profit on discontinued operation, net of tax |
(25) |
13 |
90 |
|
|
______ |
______ |
______ |
||
|
Loss for the period/year |
(1,243) |
(1,657) |
(4,347) |
|
|
______ |
______ |
______ |
||
|
Total comprehensive income for the period/year |
(1,243) |
(1,657) |
(4,347) |
|
|
______ |
______ |
______ |
||
|
Total comprehensive income attributable to: |
||||
|
Owners of the parent |
(1,225) |
(1,744) |
(4,425) |
|
|
Non-controlling interest |
(18) |
87 |
78 |
|
|
______ |
______ |
______ |
||
|
(1,243) |
(1,657) |
(4,347) |
||
|
______ |
______ |
______ |
||
|
Loss per ordinary share (US$) attributable to equity holders of the parent |
||||
|
Basic and diluted |
3 |
(0.041) |
(0.060) |
(0.152) |
|
Loss per share (US$) on continued operations |
||||
|
Basic and diluted |
3 |
(0.040) |
(0.061) |
(0.155) |
|
______ |
______ |
______ |
||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2009
|
30 June 2009 |
30 June 2008 |
31 December 2008 |
||
|
US$000 |
US$000 |
US$000 |
||
|
Unaudited |
Unaudited |
Audited |
||
|
Assets |
||||
|
Non-current assets |
||||
|
Property, plant and equipment |
3,568 |
3,865 |
3,784 |
|
|
Intangible assets |
40,711 |
40,292 |
40,606 |
|
|
Investments |
4 |
15 |
8 |
|
|
______ |
______ |
______ |
||
|
Total non-current assets |
44,283 |
44,172 |
44,398 |
|
|
Current assets |
||||
|
Inventories |
65 |
68 |
77 |
|
|
Trade and other receivables |
279 |
285 |
275 |
|
|
Advances to associated companies |
3,165 |
3,882 |
3,165 |
|
|
Cash and cash equivalents |
1,517 |
2,619 |
2,574 |
|
|
Non-current assets classified as held for sale |
967 |
901 |
991 |
|
|
______ |
______ |
______ |
||
|
Total current assets |
5,993 |
7,755 |
7,082 |
|
|
______ |
______ |
______ |
||
|
Total assets |
50,276 |
51,927 |
51,480 |
|
|
______ |
______ |
______ |
||
|
Liabilities |
||||
|
Non-current liabilities |
||||
|
Provisions |
3,693 |
3,949 |
3,739 |
|
|
Deferred tax liability |
102 |
43 |
102 |
|
|
______ |
______ |
______ |
||
|
Total non-current liabilities |
3,795 |
3,992 |
3,841 |
|
|
Current liabilities |
||||
|
Trade payables |
19 |
53 |
19 |
|
|
Advances from associated companies |
1,948 |
- |
2,011 |
|
|
Employee benefits |
89 |
76 |
71 |
|
|
Tax payable |
7 |
117 |
25 |
|
|
Other payables |
73 |
396 |
120 |
|
|
______ |
______ |
______ |
||
|
Total current liabilities |
2,136 |
642 |
2,246 |
|
|
______ |
______ |
______ |
||
|
Total liabilities |
(5,931) |
(4,634) |
(6,087) |
|
|
______ |
______ |
______ |
||
|
Total net assets |
44,345 |
47,293 |
45,393 |
|
|
______ |
______ |
______ |
||
|
Capital and reserve attributable to equity holders of the company |
||||
|
|
||||
|
Share capital |
5,443 |
5,197 |
5,443 |
|
|
Share premium reserve |
48,938 |
48,696 |
48,938 |
|
|
Share options reserve |
352 |
1,699 |
157 |
|
|
Retained deficit |
(11,933) |
(9,871) |
(10,708) |
|
|
______ |
______ |
______ |
||
|
42,800 |
45,721 |
43,830 |
||
|
Non-controlling interest |
1,545 |
1,572 |
1,563 |
|
|
______ |
______ |
______ |
||
|
Total equity |
44,345 |
47,293 |
45,393 |
|
|
______ |
______ |
______ |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 30 June 2009
___________________________________________________________________________________________
|
Share capital |
Share premium |
Share option reserve |
Retained earnings |
Total |
Non-controlling interest |
Total equity |
|
|
US$000 |
US$000 |
US$000 |
US$000 |
US$000 |
US$000 |
US$000 |
|
|
Balance as at 1 Jan 2008 |
5,197 |
48,696 |
1,667 |
(8,127) |
47,433 |
1,485 |
48,918 |
|
Total comprehensive income for the period |
- |
- |
- |
(1,744) |
(1,744) |
87 |
(1,657) |
|
Share based payments |
- |
- |
32 |
- |
32 |
- |
32 |
|
______ |
______ |
______ |
______ |
______ |
______ |
______ |
|
|
Balance at 30 June 2008 |
5,197 |
48,696 |
1,699 |
(9,871) |
45,721 |
1,572 |
47,293 |
|
Total comprehensive income for the period |
- |
- |
- |
(2,681) |
(2,681) |
(9) |
(2,690) |
|
Share based payments |
- |
- |
302 |
- |
302 |
- |
302 |
|
Transfer to retained deficit |
- |
- |
(1,844) |
1,844 |
- |
- |
- |
|
Issue of shares |
246 |
242 |
- |
- |
488 |
- |
488 |
|
______ |
______ |
______ |
______ |
______ |
______ |
______ |
|
|
Balance as at 31 Dec 2008 |
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 |
5,443 |
48,938 |
352 |
(11,933) |
42,800 |
1,545 |
44,345 |
|
______ |
______ |
______ |
______ |
______ |
______ |
______ |
CONSOLIDATED CASH FLOW STATEMENT
For the period ended 30 June 2009
___________________________________________________________________________________________
|
Six months |
Six months |
Year |
||
|
ended |
ended |
Ended |
||
|
30 June 2009 |
30 June 2008 |
31 December 2008 |
||
|
US$000 |
US$000 |
US$000 |
||
|
Unaudited |
Unaudited |
Audited |
||
|
Cash flows from operating activities |
||||
|
Loss before tax for the period/year |
(1,243) |
(1,647) |
(4,279) |
|
|
Adjustments for: |
||||
|
Depreciation |
226 |
246 |
458 |
|
|
Foreign exchange gain |
(11) |
(289) |
(285) |
|
|
Loss on sale financial assets |
4 |
10 |
17 |
|
|
Finance income |
(1) |
(19) |
(21) |
|
|
Share of loss/(profit) of associates |
25 |
(13) |
(90) |
|
|
Equity settled share-based payment expense |
195 |
32 |
334 |
|
|
______ |
______ |
______ |
||
|
Cash flows from operating activities before |
||||
|
changes in working capital and provisions |
(805) |
(1,680) |
(3,866) |
|
|
(Increase)/Decrease in trade and other receivables |
(4) |
79 |
22 |
|
|
Decrease in inventories |
12 |
49 |
40 |
|
|
(Decrease)/Increase in trade and other payables |
(65) |
251 |
(80) |
|
|
Increase in provisions and employee benefits |
18 |
52 |
47 |
|
|
______ |
______ |
______ |
||
|
Cash expended by operations |
(844) |
(1,249) |
(3,837) |
|
|
Income taxes paid |
- |
- |
(2) |
|
|
______ |
______ |
______ |
||
|
Net cash flows from operating activities |
(844) |
(1,249) |
(3,839) |
|
|
Investing activities |
||||
|
Purchases of property, plant and equipment |
(10) |
(9) |
(141) |
|
|
Purchase of intangible assets |
(105) |
(92) |
(406) |
|
|
Disposal of intangible assets |
- |
1,700 |
1,700 |
|
|
(Repayments)/Advances from/to associated companies |
(64) |
(21) |
2,694 |
|
|
Interest received |
1 |
19 |
21 |
|
|
______ |
______ |
______ |
||
|
Net cash (used in)/from investing activities |
(178) |
1,597 |
3,868 |
|
|
Financing activities |
||||
|
Issue of ordinary shares |
- |
- |
488 |
|
|
______ |
______ |
______ |
||
|
Net cash from financing activities |
- |
- |
488 |
|
|
______ |
______ |
______ |
||
|
Net (decrease)/increase in cash and cash equivalents |
(1,022) |
348 |
517 |
|
|
Cash and cash equivalents at beginning of period/year |
2,574 |
2,319 |
2,319 |
|
|
Exchange losses on cash and cash equivalents |
(35) |
(48) |
(262) |
|
|
______ |
______ |
______ |
||
|
Cash and cash equivalents at end of period/year |
1,517 |
2,619 |
2,574 |
|
|
______ |
______ |
______ |
||
.
UNAUDITED NOTES FORMING PART OF THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the period ended 30 June 2009
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 which will be applied in the Group's statutory financial statements for the year ended 31 December 2009. This results in the adoption of the revision to IAS 1; this revision prohibits the presentation of items of income and expenses (that is, "non-owner changes in equity") in the statement of changes in equity, requiring "non-owner changes in equity" to be presented separately from owner changes in equity. All non-owner changes in equity will be required to be shown in a performance statement. This revision has been applied throughout these interim financial statements.
2. Financial Reporting Period
The condensed interim financial information for the period 1 January 2009 to 30 June 2009 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 are in conformity with generally accepted accounting principles consistently applied. The accounts incorporate comparative figures for the interim period 1 January 2008 to 30 June 2008 and the audited financial year to 31 December 2008.
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 2008 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 of US$1,225,000 (2008: US$1,744,000) and the weighted average number of shares being 30,084,121 ordinary shares issued for the period ended 30 June 2009 (2008: 28,711,709). The corresponding figures for the year ended 31 December 2008 were: loss attributable to equity holders of the Company of US$4,425,000 and weighted average number of shares 29,167,761.
4. Functional Currency
All amounts have been prepared in US dollars, this being the Group's presentational currency.
5. Additional Information
Further 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, 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)
Andrew J Mullins (Executive Director)
Barry Stansfield (Non-Executive Chairman)
Roberto V Ongpin (Non-Executive Director) - appointed 17/06/09
Company Secretary
Andrew Mullins
Registered office
120 Bridge RoadChertseySurrey KT16 8LA
Principal place of business
14F Pearlbank Centre146 Valero StreetSalcedo VillageMakati City
Metro Manila
The Philippines
Company number
05411224
(England and Wales)
Independent Auditors
BDO Stoy Hayward LLP55 Baker Street
London W1U 7EU
Bankers
Royal Bank of Scotland PLC
Natural Resources
8th Floor
135 Bishopsgate
London EC2M 3UR
Brokers & Financial Advisers
Noble & Company Limited76 George Street
Edinburgh EH2 3BU
Registrars
Share Registrars Ltd
First Floor
9 Lion and Lamb Yard
Farnham
Surrey GU9 7LL
Solicitors
Osborne Clarke
2 Temple Back EastTemple Quay
Bristol BS1 6EG
Related Shares:
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