Cadogan Energy Solutions Plc - Half Yearly Report for the Six Months ended 30 June 2024
Half Yearly Report for the Six Months ended
(Unaudited and unreviewed)
Highlights
-- The first half of 2024 remained challenging for Ukraine and its energy
sector due to the ongoing Russian invasion. The conflict has led to
disrupted energy supplies, significant infrastructure damage, and
numerous operational challenges. Despite these severe conditions during
reported period, the Group successfully maintained its oil production
without shutdowns.
-- H1 2024 has been another semester without LTI and TRI. All employees and
assets have been secured.
-- In H1 2024, the average production was 370 bpd in (298 bpd in H1 2023),
a 25% increase versus H1 2023, and the highest ever for Cadogan.
-- The Group completed the assessment by an independent expert of Blazhiv
oil field hydrocarbon reserves, according to PRMS standards. The
expected volumes of 1P reserves are higher than the ones shown in the
previous assessment.
-- The project to convert non-commercial associated gas into electricity is
ongoing and the completeness of the installation of the 0,85 MW
gas-to-power generator and the related infrastructure is expected for
the end of 2024.
-- The ISO 14001 and ISO 45001 certifications have been revalidated for a
new 3-year term. In H1 2024, the services segment was dedicated totally
to supporting the production activities in Ukraine . Production entities
activities together with services entity activities are presented as
Exploration and Production segment results.
-- The production revenues increased by 105 % versus the same period in
2023, mainly due to a 65% increase in the average realised oil price and
a 25% increase of the production volumes.
-- In November 2023 , Cadogan initiated a second arbitration procedure to
assert its right to restitution of the Loan plus the accumulated
interests, and obtain Proger's condemnation of the consequent payment.
The first audiences took place in May and June 2024 and were dedicated
by the Arbitrators to find an amicable settlement to the controversy.
-- The cash position at the period end was $15.1 million (30 June 2023 :
$14.2 million ). This level of cash is sufficient to sustain on-going
operations and business development initiatives.
Overall, Cadogan continued operating in an environment with tremendous challenges caused by the ongoing war in
Key performance indicators
During H1 2024, the Group has monitored its performance in conducting its business with reference to a number of key performance indicators (`KPIs'):
-- to maintain stable oil production measured on the barrels of oil
produced per day (`bpd');
-- to decrease administrative expenses,
-- to increase the Group's basic earnings per share,
-- to maintain no lost time incident,
-- to grow and geographically diversify the portfolio, and
-- to secure its staff and operations.
The Group's performance during the first six months of 2024, measured against these targets, is set out in the table below, together with the prior year performance data. No changes have been made to the sources of data or calculations used in the period/year. The positive trend in the HSE performances continues with zero incidents.
______________________________________________________________________________ | |Unit |30 June 2024|30 June 2023|31 December 2023| |________________________|__________|____________|____________|________________| |Average production | | | | | |(working interest basis)|Boepd |370 |298 |326 | |(a) | | | | | |________________________|__________|____________|____________|________________| |Administrative expenses |$million |1.5 |1.6 |3.6 | |________________________|__________|____________|____________|________________| |Basic profit/(loss) per |Cent |0.1 |(0.1) |0.5 | |share (b) | | | | | |________________________|__________|____________|____________|________________| |Lost time incident (c) |Incidents |- |- |- | |________________________|__________|____________|____________|________________| |Geographical |New assets|- |- |- | |diversification | | | | | |________________________|__________|____________|____________|________________|
a. Average production is calculated as the average daily production during the
period/year
b. Basic profit/loss per ordinary share is calculated by dividing the net
profit/loss for the year attributable to equity holders of the parent
company by the weighted average number of ordinary shares during the period
c. Lost time incident relate to injuries where an employee/contractor is
injured and has time off work (IOGP classification)
Enquiries:
______________________________________________________________________________ |Cadogan Energy Solutions Plc| | |____________________________|_________________________________________________| |Fady Khallouf |Chief Executive Officer|f.khallouf@cadogan-es.com| |____________________________|_______________________|_________________________| |Ben Harber |Company Secretary |+44 (0) 207 264 4366 | |____________________________|_______________________|_________________________|
Operations Review
Introduction
First semester 2024 was another dramatic period for
Despite these challenges, the Group has managed to ensure oil production from the Blazhiv field without shutdowns. Through proper planning, robust safety measures, and efficient resource management, we have maintained consistent output levels, demonstrating our resilience and commitment to operational stability even in these circumstances.
In H1 2024, Cadogan employees in
In this context, the Group has continued to focus on safely and efficiently operating the existing wells, on controlling its costs and on cash preservation while continuing to look for opportunities to grow and diversify its portfolio of activities.
Operations
E&P activity remained focused on maintaining and securing its activities for the new term and safely and efficiently producing from the existing wells within the Blazhiv oil field. During H1 2024, the average gross production rated at 370 bpd, which is 25% higher than in H1 2023 (298 bpd). Such significant increase in production is attributed to the fact that operations were not halted, unlike during H1 2023.
Operational excellence of the Group has been confirmed again by zero LTI or TRI 1 , with a total over 1,809,000 manhours since the last incident, and the renewal of ISO 14001 & 45001 certifications for a new 3-year term.
CO
2
emissions level in H1 2024 increased to the level of 147,26 tons of CO
2
,e/boe produced compared to 125,08 tons of CO
2
,e/boe for the same reporting period of the last year. The increase of the emissions level is caused by the increase of oil production and the CH4 conversion factor increase as established by
In
Trading
The Company had no operations for the first half of 2024.
Cadogan continues to monitor the gas markets in
Proger
In
Cadogan did not exercise the Call Option. In
The Arbitration proceeding ended in
The Arbitral Committee:
- Rejected Proger's principal claim, and declared that the Loan Agreement is valid and effective,
- Deemed to qualify the Call Option as a preliminary contract under condition, but
- Rejected Proger's claim ex art. 2932 Italian Civil Code, stating that it is impossible to give an award producing the same effects of a final contract ex art. 2932 Italian Civil Code,
-
This is because of the duties established by the rules of the
- Subordinated the stipulation of the final contract to the precedent completion of the proceeding and bureaucratic process as per the British rules, stating that, otherwise,
- There is the obligation on Proger Ingegneria to return the money received under the Loan Agreement.
Cadogan introduced an appeal, still pending with a next hearing on
According to the provisions of the aforementioned Award, the right to reimbursement of the amount covered by the Loan Agreement has arisen in favour of Cadogan, plus interest accrued, and of which Cadogan then demanded immediate payment.
Last
Financial position
Cash at
The Directors believe that the capital available at the date of this report is sufficient for the Group to continue its operations for the foreseeable future.
In H1 2024, the Group held working interests in an oil production licence in the West of
The Group's primary focus during the period continued to be on cost optimisation and enhancement of current production, through the existing well stock and new drilling.
Summary of the Group's licences (as of30 June 2024 ) Working Licence Expiry Licence type interest (%) 100 BlazhivNovember 2039 Production
Below we provide an update to the full Operations Review contained in the 2023 Annual Report published on
Blazhiv licence
Through the reporting period the Group has been working to safely and efficiently producing from the existing wells located in the Blazhiv licence area. At the end of the reporting period, the average gross production rated at 370 bpd vs 298 bpd in H1 2023. All wells have been operational during the reported period without unscheduled stoppages.
In H1 2024, an independent expert completed Blazhiv field reserves re-assessment. As reported, the field contains 3.05 million boe of 3P reserves and additionally 0,64 million boe of 2C contingent resources associated with Blazhiv licence. The results of this assessment indicate a strong reserves base, highlighting our robust position and revealing significant potential for new development drilling.
In H1 2024, efforts were accelerated on the implementation of the gas-to-power project. The Group has placed a contract for a 0.85 MW gas-driven generator with a European producer, which is expected to be ready by the end of the year. This initiative is a strategic step towards enhancing our energy efficiency and sustainability, leveraging our gas resources to generate power and support our operations more effectively.
In H1 2024,
Financial Review
Overview
Income statement
In H1 2024, revenues increased to
Trading business had no activities during the first half of 2024.
The cost of sales of the production segment consists of
Half year gross profit from production activities increased to
The Group recorded a
Other administrative expenses were kept under control at
Balance sheet
At
The Property, Plant and Equipment ("PP&E") balance of
Trade and other receivables of
The
Cash flow statement
The Consolidated Cash Flow Statement shows positive cash-flow from operating activities of
Group capital expenditure was
Commitments
There has been no material change in the commitments and contingencies reported as at
The Group continually monitors its exposure to currency risk. It maintains a portfolio of cash mainly in US dollars ("USD") in the
The cash held in
Going concern
The Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the Interim Financial Statements. For further details, refer to the detailed presentation of the assumptions outlined in note 2(a) of the Interim Financial Statements.
Cautionary Statement
The business review and certain other sections of this Half Yearly Report contain forward looking statements that have been made by the Directors in good faith based on the information available to them up to the time of their approval of this report. However they should be treated with caution due to inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information and no statement should be construed as a profit forecast.
Risks and Uncertainties
There are a number of potential risks and uncertainties inherent in the oil and gas sector which could have a material impact on the long-term performance of the Group and which could cause the actual results to differ materially from expected and historical results. The Company has taken reasonable steps to mitigate these where possible. Full details are disclosed on pages 9 to 12 of the 2023 Annual Financial Report. There have been no changes to the risk profile during the first half of the year. The risks and uncertainties are summarised below.
War risks
-- Missile attacks
-- Occupation of territories
-- Forced evacuations
-- Cyber attacks
Operational risks
-- Health, safety, and environment
-- Climate change
-- Drilling and work-over operations
-- Production and maintenance
Subsurface risks
Financial risks
-- Changes in economic environment
-- Counterparty
-- Default on the Proger loan repayment
-- Commodity price
Country risk
-- Regulatory and licence issues
-- Emerging market
Other risks
-- Risk of losing key staff members
-- Risk of entry into new countries
-- Risk of delays in projects related to dialogue with local communities
Directors' Responsibility Statement
We confirm that to the best of our knowledge:
(a)
the Interim Financial Statements have been prepared in accordance with the
(b) the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year);
(c) the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein); and
(d) the condensed set of financial statements, which has been prepared in accordance with the applicable set of accounting standards, gives a true and fair view of the assets, liabilities, financial position and profit or loss of the issuer, or the undertakings included in the consolidation as a whole as required by DTR 4.2.4R.
This Half Yearly Report consisting of pages 1 to 23 has been approved by the Board and signed on its behalf by:
Chief Executive Officer
Consolidated Income Statement
Six Months ended
Six months ended 30 Year ended
June
31 December
2024 2023 2023
$'000 $'000 $'000
Notes (Unaudited) (Unaudited) (Audited)
CONTINUING OPERATIONS
Revenue 3 4,952 2,414 7,550
Cost of sales 3 (2,671) (2,099) (5,391)
Gross profit 2,281 315 2,159
Administrative expenses (1,508) (1,550) (3,574)
Reversal of impairment of other assets - - 56
Impairment of gas and oil assets (10) (70) 218
Impairment of other assets - - (49)
Net foreign exchange (losses)/gains (542) 290 538
Other operating (losses)/income, net (1) 63 25
Operating profit /(loss) 256 (952) (627)
Finance income 4 767 779 1,885
Profit/(loss) before tax 1,023 (173) 1,258
Tax (expense)/benefit 13 (805) - -
Profit/(loss) for the period/year 219 (173) 1,258
Attributable to:
Owners of the Company 5 219 (172) 1,259
Non-controlling interest - (1) (1)
219 (173) 1,258
Profit/(loss) per Ordinary share Cents Cents Cents
Basic and diluted 5 0.1 (0.1) 0.5
Consolidated Statement of Comprehensive Income
Six Months ended
Six months ended 30 Year ended
June
31 December
2024 2023 2023
$'000 $'000 $'000
(Unaudited) (Unaudited) (Audited)
Profit / (loss) for the period/year 219 (173) 1,258
Other comprehensive profit/(loss)
Items that may be reclassified subsequently
to profit or loss
Unrealised currency translation differences (444) 41 (321)
Other comprehensive (loss) /profit (444) 41 (321)
Total comprehensive (loss) for the (225) (132) 937
period/year
Attributable to:
Owners of the Company (225) (131) 938
Non-controlling interest - (1) (1)
(225) (132) 937
Consolidated Statement of Financial Position
Six Months ended
Six months ended 30 June Year ended 31 December
2024 2023 2023
$'000 $'000 $'000
Notes (Unaudited) (Unaudited) (Audited)
ASSETS
Non-current assets
Intangible exploration and - - -
evaluation assets
Property, plant and equipment 6 5,231 6,407 5,768
Right-of-use assets 191 61 246
Deferred tax asset - 318 370
5,422 6,786 6,384
Current assets
Inventories 7 365 141 364
Trade and other receivables 8 355 233 310
Loan provided 11 16,959 16,441 17,074
Cash and cash equivalents 15,141 14,195 14,155
32,820 31,010 31,903
Total assets 38,242 37,796 38,287
LIABILITIES
Non-current liabilities
Deferred tax liabilities (101) - -
Long-term lease liability (112) - (148)
Provisions (117) (286) (114)
(330) (286) (262)
Current liabilities
Trade and other payables 9 (1,487) (1,938) (1,366)
Short-term lease liability (85) (65) (87)
Current provisions (124) (135) (131)
(1,696) (2,138) (1,584)
Total liabilities (2,026) (2,424) (1,846)
Net assets 36,216 35,372 36,441
EQUITY
Share capital 12 13,832 13,832 13,832
Share premium 514 514 514
Retained earnings 186,022 184,372 185,803
Cumulative translation (165,741) (164,935) (165,297)
reserves
Other reserves 1,589 1,589 1,589
Equity attributable to equity 36,216 35,372 36,441
holders of the parent
Non-controlling interest - - -
Total equity 36,216 35,372 36,441
Consolidated Statement of Cash Flows Six Months ended30 June 2024 Six months ended 30 Year ended June 31 December 2024 2023 2023 $'000 $'000 $'000 (Unaudited) (Unaudited) (Audited) Operating profit/(loss) 256 (952) (627) Adjustments for: Depreciation of property, plant and 449 286 821 equipment Impairment of inventories - - 44 Loss on disposal of property, plant and - - 19 equipment Reversal of impairment of VAT recoverable (36) - (54) Impairment of oil and gas assets 10 70 (218) Impairment of receivables - - 3 Effect of foreign exchange rate changes 542 (290) (538) Operating cash flows before movements in 1,221 (886) (550) working capital Increase /(Decrease) in inventories (3) 153 (131) Increase /(Decrease) in receivables 121 145 (127) Increase/(Decrease) in payables and (134) 496 238 provisions Cash from operations 1,205 (92) (570) Income taxes paid (228) - - Interest received - 199 - Net cash inflow/(outflow) from operating 977 107 (570) activities Investing activities Purchases of property, plant and equipment (334) (33) (58) Purchase of shares in subsidiaries from - (24) - minority shareholders Interest received 396 176 796 Net cash used in investing activities 62 119 738 Financing activities Net cash from financing activities - - - Net increase (decrease) in cash and cash 1,039 226 168 equivalents Effect of foreign exchange rate changes (53) 35 53 Cash and cash equivalents at beginning of 14,155 13,934 13,934 period/year Cash and cash equivalents at end of 15,141 14,195 14,155 period/year
Consolidated Statement of Changes in Equity
Six Months ended
Share Cumulative Equity
Share premium Retained translation Other attributable Non-controlling Total
capital account earnings reserves reserves to owners of interest
the Company
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
As at 1 January 13,832 514 184,331 (164,976) 1,589 35,290 237 35,527
2023
Net loss for - - (172) - - (172) (1) (173)
the period
Other
comprehensive - - - 41 - 41 - 41
income\loss
Total
comprehensive - - (172) 41 - (131) (1) (132)
loss for the
year
Acquisition of
non-controlling - - 213 - - 213 (236) (23)
interests
As at 30 June 13,832 514 184,372 (164,935) 1,589 35,372 - 35,372
2023
Net profit for - - 1,431 - - - - -
the period
Other
comprehensive - - - (362) - - - -
income\loss
Total
comprehensive - - 1,431 (362) - - - -
income for the
year
As at 31
December 2023 13,832 514 185,803 (165,297) 1,589 36,441 - 36,441
Net profit for - - 219 - - 219 - 219
the period
Other
comprehensive - - - (444) - (444) - (444)
loss
Total
comprehensive - - 219 (444) - (225) - (225)
income for the
year
As at 30 June 13,832 514 186,022 (165,741) 1,589 36,216 - 36,216
2024
Notes to the Condensed Financial Statements
Six Months ended
1. General information
This Half Yearly Report has not been audited or reviewed in accordance with the Auditing Practices Board guidance on `Review of Interim Financial Information'.
A copy of this Half Yearly Report has been published and may be found on the Company's website at https://www.cadoganenergysolutions.com .
1. Basis of preparation
The annual financial statements of the Group are prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and in accordance with international financial reporting standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the
The same accounting policies and methods of computation are followed in the condensed financial statements as were followed in the most recent annual financial statements of the Group except as noted, which were included in the Annual Report issued on
The Group has not early adopted any amendment, standard or interpretation that has been issued but is not yet effective. It is expected that where applicable, these standards and amendments will be adopted on each respective effective date.
This consolidated interim financial information does not constitute accounts within the meaning of section 434 and of the Companies Act 2006. Statutory accounts for the year ended
(a) Going concern
The Directors have continued to use the going concern basis in preparing these condensed financial statements. The Group's business activities, together with the factors likely to affect future development, performance and position are set out in the Operations Review. The financial position of the Group, its cash flow and liquidity position are described in the Financial Review.
The Group's cash balance at
The Directors have carried out a robust assessment of the principal risks facing the Group .
The Group's forecasts and projections, taking into account reasonably possible changes in trading activities, operational performance, flow rates for commercial production and the price of hydrocarbons sold to Ukrainian customers, show that there are reasonable expectations that the Group will be able to operate on funds currently held and those generated internally, for the foreseeable future.
Notwithstanding the Group's current financial performance and position, the Board are cognisant of the actual impacts of the war situation in
In addition to sensitivities that reflect future expectations regarding country, commodity price and currency risks that the Group may encounter reverse stress tests have been run to reflect possible negative effects of war in
After making enquiries and considering the uncertainties described above, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future and consider the going concern basis of accounting to be appropriate and, thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
(b) Foreign currencies
The individual financial statements of each Group company are presented in the currency of the primary economic environment in which it operates (its functional currency). The functional currency of the Company is US dollar. For the purpose of the consolidated financial statements, the results and financial position of each Group company are expressed in US dollars, which is the presentation currency for the consolidated financial statements.
The relevant exchange rates used were as follows:
1 £ =xUS$ Six months ended 30 June
Year ended
2024 2023 31 Dec 2023
Closing rate 1.26473 1.2663 1.2732
Average rate 1.2651 1.2336 1.2440
1 US$ = xUAH Six months ended 30 June
Year ended
2024 2023 31 Dec 2023
Closing rate 40.7683 37.2401 38.3480
Average rate 39.2932 37.1364 37.0867
1 Euro = xUS$ Six months ended 30 June Year ended
2024 2023 31 Dec 2023
Closing rate 1.07177 1.0886 1.1038
Average rate 1.0812 1.0809 1.0817
(c) Dividend
The Directors do not recommend the payment of a dividend for the period (
(d) Critical accounting judgments and estimates
Impairment indicator assessment for E&E assets
Where there are indications of impairment, the E&E assets concerned are tested for impairment. Where the E&E assets concerned fall within the scope of an established full cost pool, which are not larger than an operating segment, they are tested for impairment together with all development and production assets associated with that cost pool, as a single cash generating unit.
The aggregate carrying value of the relevant assets is compared against the expected recoverable amount of the pool, generally by reference to the present value of the future net cash flows expected to be derived from production of commercial reserves from that pool. Where the assets fall into an area that does not have an established pool or if there are no producing assets to cover the unsuccessful exploration and evaluation costs, those assets would fail the impairment test and be written off to the income statement in full.
Impairment losses are recognized in the income statement and are separately disclosed.
Impairment of PP&E
Management assesses the development and production assets for impairment indicators and performs an impairment test if indicators of impairment are identified. Management performed an impairment assessment using a value in use discounted cash flow model which required estimates including forecast oil prices, reserves and production, costs and discount rates.
Recoverability and measurement of VAT
Judgment is required in assessing the recoverability of VAT assets and the extent to which historical impairment provisions remain appropriate, particularly noting the recent recoveries against historically impaired VAT. In forming this assessment, the Group consider the nature and age of the VAT, the likelihood of eligible future supplies to VAT, the pattern of recoveries and risks and uncertainties associated with the operating environment.
Loan provided
The recoverability of the carrying value of the loan to PMP represents a significant accounting judgment. In making their assessment over estimated recoverability of the loan, management considered the projected outcome of arbitration, assessment of the security provided by the pledge over shares, and the delay in the recovery of the expected amount. As a result, management concluded that
1. Segment information
Segment information is presented on the basis of management's perspective and relates to the parts of the Group that are defined as operating segments. Operating segments are identified on the basis of internal assessment provided to the Group's chief operating decision maker ("CODM"). The Group has identified its executive management team as its CODM and the internal assessment used by the top management team to oversee operations and make decisions on allocating resources serve as the basis of information presented.
Segment information is analysed on the basis of the type of activity, products sold, or services provided. The majority of the Group's operations are located within
The Group's reportable segments under IFRS 8 are therefore as follows:
Exploration and Production
-- E&P activities on the production licences for natural gas, oil and
condensate
Service
-- Drilling services to exploration and production companies
-- Construction services to exploration and production companies
Trading
-- Import of natural gas from European countries
-- Local purchase and sales of natural gas operations with physical
delivery of natural gas
The accounting policies of the reportable segments are the same as the Group's accounting policies. Sales between segments are carried out at market prices. The segment result represents profit under IFRS before unallocated corporate expenses. Unallocated corporate expenses include management and Board remuneration and expenses incurred in respect of the maintenance of
The Group does not present information on segment assets and liabilities as the CODM does not review such information for decision-making purposes.
As at
Exploration and Production Trading Consolidated
$'000 $'000 $'000
Sales of hydrocarbons 4,933 - 4,933
Other revenue 19 - 19
Sales between segments - - -
Total revenue 4,952 - 4,952
Other cost of sales (2,670) (1) (2,671)
Other administrative expenses (196) (25) (221)
Impairment of oil & gas (10) - (10)
Other operating costs 35 - 35
Finance income/costs, net 226 - 226
Segment results 2,337 (26) 2,311
Unallocated other administrative - - (1,287)
expenses
Other finance income, net 541
Net foreign exchange gains - - (542)
Profit before tax - - 1,023
As at
Exploration and Production Trading Consolidated
$'000 $'000 $'000
Sales of hydrocarbons 2,410 - 2,410
Other revenue 4 - 4
Total revenue 2,414 - 2,414
Other cost of sales (2,097) (2) (2,099)
Other administrative expenses (204) (22) (226)
Impairment of oil & gas (70) - (70)
Other operating costs 63 - 63
Finance income/costs, net 199 - 199
Segment results 305 (24) 281
Unallocated other administrative - - (1,324)
expenses
Other income/loss, net - - 580
Net foreign exchange gains - - 290
Loss before tax - - (173)
1. Finance income/(costs), net
Six months Year ended
ended 30
June 31 December
2024 2023 2023
$'000 $'000 $'000
Interest expense on lease (11) (5) (10)
Total interest expenses on financial liabilities (11) (5) (10)
Interest income on cash deposit 396 375 798
Reversal of liability accrual - - 395
Total interest income on financial assets 396 375 1,193
-
Interest on loan 381 354 757
Unwinding of discount on decommissioning provision 1 55 (55)
Total 767 779 1,885
1. Profit/(loss) per ordinary share
Profit/(loss) per ordinary share is calculated by dividing the net profit/(loss) for the period/year attributable to Ordinary equity holders of the parent by the weighted average number of Ordinary shares outstanding during the period/year. The calculation of the basic profit/(loss) per share is based on the following data:
Year ended
Six months ended 30 June
31 December
Profit /(Loss) attributable 2024 2023 2023
to owners of the Company
$'000 $'000 $'000
profit /(loss) for the purposes of basic
(loss)/profit per share being net profit/(loss) 219 (172) 1,259
attributable to owners of the Company
Number Number Number
Number of shares `000 `000 `000
Weighted average number of Ordinary shares for the 244,128 244,128 244,128
purposes of basic profit/(loss) per share
Cent Cent Cent
Profit/(loss) per Ordinary share
Basic 0.1 (0.1) 0.5
1. Proved properties
As of
1. Inventories
As of
The impairment provision as at
1. Trade and other receivables
Six months Year ended
ended 30
June 31 December
2024 2023 2023
$'000 $'000 $'000
VAT recoverable 834 1,111 1,079
Impairment provision for VAT (829) (999) (918)
Prepayments 326 62 81
Trade receivables 29 66 68
Other receivables 30 45 31
Impairment provision for bad debts (35) (52) (49)
355 233 310
VAT recoverable asset was realized through natural gas and crude oil sales during the first half of 2024. The Directors consider that the carrying amount of the other receivables approximates their fair value. Management expects to realise VAT recoverable through the activities of the business segments.
1. Trade and other payables
The
1. Commitments and contingencies
There have been no significant changes to the commitments and contingencies reported on page 80 of the Annual Report.
1. Loan provided
In
In
Since the Call Option was not exercised before the Maturity Date and the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows, the Loan provided was reclassified from `Financial assets at fair value through profit and loss' to `Financial assets at amortized cost'.
Financial assets at amortised cost
$'000
As at 1 January 2023 15,825
Interest 704
Change in provision (350)
Exchange differences 262
As at 30 June 2023 16,441
Interest 753
Change in provision (350)
Exchange differences 230
As at 1 January 2024 17,074
Interest 751
Change in provision (370)
Exchange differences (496)
As at 30 June 2024 16,959
- rejected Proger's principal claim and declared that the Loan Agreement is valid and effective,
- deemed to qualify the Call Option as a preliminary contract under condition, but
- rejected Proger's claim ex art.2932 Italian Civil Code, stating that it is impossible to give an award producing the same effects of a final contract ex art.2932 Italian Civil Code,
-
this because of the duties established by the rules of the
- subordinated the stipulation of the final contract to the precedent completion of the proceeding and bureaucratic process as per the British rules, stating that, otherwise,
- there is the obligation on Proger Ingegneria to return the payment received under the Loan Agreement,
- compensated all the expenses of the proceeding.
Proger refused to apply the requirements of the award and thus, Proger must reimburse the amount covered by the Loan Agreement plus interest accrued in the meantime. Cadogan is taking the necessary legal actions to recover these amounts. Cadogan initiated a second arbitration in
The recoverability of the Loan had been assessed in
1. Share capital
Authorized and issued equity share capital (x000)
30/06/2024 31/12/2023
Number $'000 Number $'000
Authorized
1,000,000 57,713 1,000,000 57,713
Ordinary shares of £0.03 each
Issued
244,128 13,832 244,128 13,832
Ordinary shares of £0.03 each
Authorized but unissued share capital of £30 million has been translated into US dollars at the historic exchange rate of the issued share capital. The Company has one class of Ordinary shares, which carry no right to fixed income.
Issued equity share capital
Ordinary shares
of £0.03
At 31 December 2021 244,128,487
Issued during year -
At 31 December 2022 244,128,487
Issued during year -
At 31 December 2023 244,128,487
Issued during first-half year -
At 30 June 2024 244,128,487
1. Tax
Six months
ended 30 Year ended 31-Dec
June
2024 2023 2023
$'000 $'000 $'000
Current tax 333 - -
Deferred tax 471 - -
805 - -
The current income tax has been accrued on the profits of the oil extraction company LLC Usenco-Nadra. The deferred tax represents the amount of tax asset utilized during the first half of 2024.
1. Events subsequent to the reporting date
The Group decided to accelerate its business diversification in electricity sector and to invest in new power generation opportunities in
