4th Apr 2017 07:00
4 April 2017
Saffron Energy Plc
("Saffron" or the "Company")
Northsun Italia 2016 Results
Saffron Energy plc, the AIM listed natural gas producer and explorer with interest in northern Italy (AIM: SRON), announces the financial results for Northsun Italia Spa ("NSI") for the financial year to 31 December 2016. Saffron acquired 100% of NSI in January 2017 and subsequently completed an IPO of Saffron Energy on AIM on 24 February 2017.
Investors should note that a number of restructuring transactions mentioned in the document were completed in the period from December 2016 to February 2017 and these are set out in detail in the Company's AIM Admission Document.
During the period:
- In September 2016, NSI entered into a construction contract for the Bezzecca gas field
- Production from the Sillaro gas field for 2016 was 4.4m cubic meters (gross) and, in December 2016, NSI acquired the remaining 35% of the Sillaro gas field it did not already own.
Subsequent to 31 December 2016, NSI has:
- Been acquired by Saffron, which then completed a £2.5m capital raising on 24 February 2017
- Completed construction of the Bezzecca gas field
- Extended its offtake agreement with Shell Italia to 1 October 2018
- Repaid approximately €470k of short term shareholders' loans used to advance construction of Bezzecca and Sant'Alberto
Chief Executive Officer of Saffron Energy, Michael Masterman commented: "The results for NSI in 2016 reflect the now historic fully completed restructuring and associated asset value alignments that had to be undertaken in preparation for the successful IPO of Saffron Energy which was completed in February. Revenues and cash flows are expected to increase substantially with Bezzecca commencing production in April 2017 and Sant'Alberto at the end of 2017. Saffron is now in excellent shape going forward."
A full copy of the Northsun Italia Consolidated Financial Statements for the year ended 31 December 2016 is available on the Company's website at www.saffronenergy.co.uk and an extract of the Consolidated Financial Statements for the year ended 31 December 2016 is presented below.
Please click to view the Saffron Energy AIM Admission Document - https://saffronenergy.co.uk/investors/aim-rule-26/
About Saffron Energy PLC
Saffron Energy is a natural gas producer with interests in Northern Italy. Its portfolio includes one gas production (Sillaro), one near-term gas production field (Bezzecca (90%)) and an application for a near-term gas production field (Sant'Alberto), all near Milan and Bologna. Saffron Energy commenced trading on the London AIM Market under the ticker of SRON on 24 February 2017.
For more information, please visit www.saffronenergy.co.uk or contact the following:
Saffron Energy plc | +44 (0) 7791288381 |
Michael Masterman, CEO | |
Grant Thornton UK LLP (Financial & Nominated Adviser) | +44 (0) 207 383 5100 |
Colin Aaronson | |
Samantha Harrison | |
Harrison J Clarke | |
Turner Pope Investments (TPI) Ltd (Broker) | +44 (0)2036214120 |
Ben Turner | |
James Pope | |
Cassiopeia Services PR/IR | +44 (0) 7949690338 |
Stefania Barbaglio |
NORTHSUN ITALIA S.P.A
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2016
Note: | 31 December 2016 € | 31 December 2015 € | |
Assets | |||
Non-Current Assets Inventory Other assets Deferred tax assets Property, plant & equipment Resource property costs | 7 10 11 | 732,801 138,378 1,994,913 2,337,111 5,602,367 | 732,801 30,378 1,488,853 1,925,314 6,884,618 |
Total non-current assets | 10,805,570 | 11,061,964 | |
Current Assets Cash and cash equivalents Trade and other receivables | 8 9 | 107,207 240,832 | 2,409,801 1,198,542 |
Total current assets | 348,039 | 3,608,343 | |
Total assets | 11,153,609 | 14,670,307 | |
Equity and liabilities | |||
Equity
Issued capital Reserves Accumulated losses | 15 15
| 19,179,160 11,340,407 (27,798,703) | 15,245,323 386,916 (21,832,754) |
Total shareholders' equity | 2,720,864 | (6,200,515) | |
Non-Current Liabilities | |||
Intercompany loans Provisions | 14 13 | 1,446,072 4,961,907 | 11,610,863 3,615,822 |
Total non-current liabilities | 6,407,979 | 15,226,685 | |
Current Liabilities Trade and other payables Short term borrowings Provisions | 12 14 13 | 1,627,272 345,677 51,817 | 5,503,253 - 140,884 |
Total current liabilities | 2,024,766 | 5,644,137 | |
Total Liabilities | 8,432,745 | 20,870,822 | |
Total shareholders' equity and liabilities | 11,153,609 | 14,670,307 | |
NORTHSUN ITALIA S.P.A
STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2016
Note: | 31 December 2016 € | 31 December 2015 € | |
Revenue | 6 | 701,339 | 1,704,083 |
Operating costs | (439,544) | (762,016) | |
Depreciation and amortisation expense | 11 | (591,258) | (1,024,660) |
Gross loss | (329,463) | (82,593) | |
Other income | 170,088 | 164,694 | |
Employee benefits Depreciation expense General and Administrative expenses Impairment Exploration costs expensed Loss on sale of project |
3 4 5 11 11
|
(722,893) (10,482) (605,919) (4,615,215) (287,286) - | (996,381) (13,819) (669,362) (1,345,624) (28,854) (822,203) |
Operating loss | (6,401,170) | (3,794,142) | |
Finance income Finance expense | 469 (71,308) | 121 (80,924) | |
Net finance expense | (70,839) | (80,803) | |
Loss before income tax expense
Income tax benefit / (expense) | 7 |
(6,472,009)
506,060 | (3,874,945)
(153,420) |
Loss for the year | (5,965,949) | (4,028,365) | |
Other comprehensive income | - | - | |
Total comprehensive loss for the year | (5,965,949) | (4,028,365) | |
NORTHSUN ITALIA S.P.A
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2016
Issued capital € | Reserves € | Accumulated Losses € | Total equity € |
As at 1 January 2015 | 15,245,323 | 386,916 | (17,804,389) | (2,712,150) |
Total comprehensive loss for the period: | ||||
Loss for the period | - | - | (4,028,365) | (4,028,365) |
Other comprehensive income | - | - | - | - |
Total comprehensive loss for the period | - | - | (4,028,365) | (4,028,365) |
Transactions with owners recorded directly in equity: | ||||
Contributions by owners | - | - | - | - |
At as 1 January 2016 | 15,245,323 | 386,916 | (21,832,754) | (6,200,515) |
Total comprehensive loss for the period: | ||||
Loss for the period | - | - | (5,965,949) | (5,965,949) |
Other comprehensive income | - | - | - | - |
Total comprehensive loss for the period | - | - | (5,965,949) | (5,965,949) |
Transactions with owners recorded directly in equity: | ||||
Contributions by owners | 14,887,328 | - | - | 14,887,328 |
Transfer to reserves | (10,953,454) | 10,953,454 | - | - |
As at 31 December 2016 | 19,179,197 | 11,340,370 | (27,798,703) | 2,720,864 |
NORTHSUN ITALIA S.P.A
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2016
31 December 2016 € | 31 December 2015 € | |
Cash flows from operating activities | ||
Receipts from customers | 1,103,291 | 1,664,214 |
Payments to suppliers and employees | (2,610,165) | (1,538,566) |
Interest received | 469 | 121 |
Interest paid | (2,266) | - |
Net (cash used in) / generated from operating activities | (1,508,671) | 125,769 |
Cash flows from investing activities | ||
Payments for non-producing property plant and equipment | - | (6,523) |
Receipts for resource property costs from joint operations partners | 521,741 | 64,572 |
Proceeds from sale of resource property project | - | 1,850,000 |
Payments for resource property costs, inventory and production plant and equipment | (764,721) | (1,092,610) |
Net cash generated from / (used in) investing activities | (242,980) | 815,439 |
Cash flows from financing activities | ||
Proceeds from borrowings | 1,745,820 | 674,549 |
Repayment of borrowings | (2,296,763) | (633,499) |
Net cash (used in) / generated from financing activities | (550,943) | 41,050 |
Net (decrease) / increase in cash and cash equivalents | (2,302,594) | 982,258 |
Cash and cash equivalents at 1 January | 2,409,801 | 1,427,543 |
Cash and cash equivalents at 31 December | 107,207 | 2,409,801 |
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