REG-Cadogan Petroleum: Annual Financial Report <Origin Href="QuoteRef">CADP.L</Origin> - Part 4
30/04/2015 18:40
- Part 4: For the preceding part double click ID:nPRrU112Ac
(24,492) (4,801) (29,293)
At 31 December 2014 8,778 5,190 13,968
Accumulated depreciation and impairment
At 1 January 2013 13,511 3,038 16,549
Charge for the year 1,062 326 1,388
Disposals (360) (82) (442)
Exchange differences (724) (65) (789)
At 1 January 2014 13,489 3,217 16,706
Impairment 5,134 - 5,134
Charge for the year 614 359 973
Transfer to intangible exploration and (3,826) - (3,826)
evaluation assets
Disposals (188) (76) (264)
Exchange differences (6,787) (1,814) (8,601)
At 31 December 2014 8,436 1,686 10,122
Carrying amount
At 31 December 2014 342 3,504 3,846
At 31 December 2013 39,122 4,764 43,886
As a result of the latest geological works and the 3D seismic assessments
performed during 2014 on the Pirkovska licence the Group did not identify
viable 2P reserves in the geological levels indicated by the GCA report.
However, the results of the 3D seismic assessment indicated that gas reserves
are located on other geological levels and require additional exploration and
evaluation work to be performed. Due to the above findings management
performed the impairment assessment of the development and production assets of
the Pirkovska licence.
Management identified that the cost of the licence and the carrying value of
the existing wells of $14.6 million are to be used in further exploration and
evaluation works. Management identified that as of 31 December 2014 the assets
previously used in production and development of the Pirkovska licence with
carrying value of $2.9 million were obsolete and therefore were written off.
As a result of the production and development assets value assessment the Group
has reclassified the carrying value of assets in amount of $14.6 million to
exploration and evaluation (note 16) and written off certain obsolete assets
of $2.9 million for the year ended 31 December 2014 (note 9).
As of 31 December 2014 management of the Group carried out the assessment of the
Debeslavetska and Cheremkhivska licences value in use and recognised an
additional impairment of these oil and gas assets of $2.2 million (note 9)
Recoverable amount was assessed at $0.4 million as at 31 December 2014. Key
assumptions used in impairment assessment were as follows:
Future gas price was assumed to be flat $300 real per m3;
The pre-tax discount rate used was 15% real; and
The growth rate used for the future costs projections was estimated based on
inflation level in Ukraine for 2014 of 30% with a steady decline over the next
10 years. Foreign exchange effects were assumed to be flat.
During the year ended 31 December 2014 the depreciation charge of $0.1 million
(2013: $0.2 million) of development and production assets used in exploration
and evaluation activities has been capitalised and accounted as additions to
the exploration and evaluation assets (note 16).
18. Subsidiaries
The Company had investments in the following subsidiary undertakings as at 31
December 2014, which principally affected the profits and net assets of the
Group:
Country of Proportion
incorporation of voting
Name and operation interest % Activity
Directly held
Cadogan Petroleum Holdings UK 100 Holding company
Ltd
Ramet Holdings Ltd Cyprus 100 Holding company
Indirectly held
Rentoul Ltd Isle of Man 100 Holding company
Cadogan Petroleum Holdings Netherlands 100 Holding company
BV
Cadogan Bitlyanske BV Netherlands 100 Holding company
Cadogan Delta BV Netherlands 100 Holding company
Cadogan Astro Energy BV Netherlands 100 Holding company
Cadogan Pirkovskoe BV Netherlands 100 Holding company
Cadogan Zagoryanske Netherlands 100 Holding company
Production BV
Momentum Enterprise (Europe) Cyprus 100 Holding company
Ltd
Cadogan Ukraine Holdings Cyprus 100 Holding company
Limited
Cadogan Momentum Holdings Canada 100 Holding company
Inc
Radley Investments Ltd UK 100 Holding company
Cadogan Petroleum Trading Switzerland 100 Trading company
SAGL
LLC AstroInvest-Ukraine Ukraine 100 Exploration
LLC Zagvydobuvannya Ukraine 100 Exploration
LLC Astro Gas Ukraine 100 Exploration
DP USENCO Ukraine Ukraine 100 Exploration
LLC USENCO Nadra Ukraine 95 Exploration
JV Delta Ukraine 100 Exploration
LLC WestGasInvest Ukraine 100 Exploration
LLC Astro-Service Ukraine 100 Service Company
OJSC AgroNaftoGasTechService Ukraine 79.9 Construction
services
LLC Cadogan Ukraine Ukraine 100 Corporate services
During the year ended 31 December 2014, the Group structure continued to be
rationalised both so as to reduce the number of legal entities inside Ukraine
and also to replace the structure of multiple jurisdictions with one based on a
series of sub-holding companies incorporated in the Netherlands for each
licence area.
19. Joint ventures
Details of each Group's joint ventures at the end of the 2014 and 2013
reporting periods are as follows:
Country of
incorporation Ownership
Company name Licenses held and operation share % Activity
LLC Zagoryanska exploration Ukraine 40 Exploration
Astroinvest-Energy licence
LLC Industrial Pokrovska exploration Ukraine 70 Exploration
Company licence
Gazvydobuvannya
LLC Westgasinvest Reklynetska, Ukraine 15 Exploration
Zhuzhelianska,
Cheremkhivsko-Strupkivska,
Baulinska, Filimonivska,
Kurinna, Sandugeyivska,
Yakovlivska, and
Debeslavetska Exploration,
Debeslavetska Production
licence
All of the above joint ventures are accounted for using the equity method in
these consolidated financial statements. According to the shareholders'
agreements, which regulate the activities of the jointly controlled entities,
all key decisions require unanimous approval from the shareholders, therefore
these entities are jointly controlled.
Summarised financial information in respect of each of the Group's material
joint ventures is set out below. The summarised financial information below
represents amounts shown in the joint venture's financial statements prepared
in accordance with IFRSs.
LLC Astroinvest-Energy
2014 2013
$'000 $'000
Non-current assets 886 34
Current assets 1,234 3,001
Non-current liabilities (598) (1,194)
Current liabilities (4,742) (4,288)
Revenue - -
Loss for the period (3,058) (6,997)
Other comprehensive (loss)/income (73) 111
Total comprehensive loss (3,131) (6,886)
Net deficit of the joint venture (3,220) (2,447)
LLC Industrial Company Gazvydobuvannya
2014 2013
$'000 $'000
Non-current assets 26,047 101,041
Current assets 2,106 1,041
Non-current liabilities (6,086) (8,484)
Current liabilities (2,821) (2,617)
Revenue - -
Loss for the period (56,559) (4,899)
Other comprehensive income/(loss) (18,727) 71
Total comprehensive loss (75,286) (4,828)
Net assets of the joint venture 19,246 90,981
As of 31 December 2014 joint venture LLC Industrial Company Gazvydobuvannya
conducted an impairment assessment of its exploration and evaluation assets.
The impairment charge of $57.4 million recognised as the result of exploration
and evaluation assets value recoverability assessment was included in the loss
for the period.
LLC Westgasinvest
2014 2013
$'000 $'000
Non-current assets 73 164
Current assets 123 662
Non-current liabilities - -
Current liabilities (2,893) (2,672)
Revenue - -
Loss for the period (3,717) (3,364)
Other comprehensive income (1,024) 55
Total comprehensive loss (4,741) (3,309)
Net assets of the joint venture (2,697) (1,846)
The carrying amounts of the Group's interest in joint ventures recognized in
the financial statements of the Group using the equity method are set out in
the tables below:
LLC LLC Industrial LLC Total
Astroinvest-Energy company Westgasinvest
Gazvydo-buvannya
$'000 $'000 $'000 $'000
(Deficit)/net
assets recognised (1,240) 62,283 4,922 65,965
as at 31 December
2013
Investments 224 2,800 - 3,024
during the year
Loss for the year (1,253) (52,700) (711) (54,664)
Carrying amount
of Group's
interest (2,269) 12,383 4,211 14,325
as at 31 December
2014
The Group's share of loss for the year includes the amount of impairment of $40.2
million recognised as the result of exploration and evaluation assets value
recoverability assessment; $12.7 million (2013: nil) of translation loss which
arose mainly on translation of non-current assets from UAH to USD being the
presentation currency of the Group and $0.2million profit from operations
(mainly as the result of VAT recovery which were impaired in the prior period).
Key assumptions used in the impairment assessment were as follows:
Future gas price was assumed to be flat $300, real per m3;
The pre-tax discount rate used was 15%, real; and
The growth rate used for the future costs projections was estimated based on
inflation level in Ukraine for 2014 of 30% with a steady decline over the next
10 years. Foreign exchange effects were assumed to be flat.
The Group is committed together with ENI to fund LLC Astroinvest-Energy
subsequently to the year end with the necessary amount of $2.3 million in order
to close current liabilities of the joint venture. Most of the funds will be
used to repay the costs charged by the partners.
20. Inventories
2014 2013
$'000 $'000
Natural gas 8,124 -
Diesel 258 -
Other inventories 1,751 3,846
Impairment provision for obsolete inventory (193) (895)
Carrying amount 9,940 2,951
The impairment provision as at 31 December 2014 and 2013 is made so as to
reduce the carrying value of the obsolete inventories to net realisable value.
During 2014 impairment charge $0.3 million (2013: $0.1 million release) has
been recognised in respect of other inventories.
21. Trade and other receivables
2014 2013
$'000 $'000
Trading prepayments 8,584 -
Trading receivables 5,060 -
Receivable from joint venture 1,938 4,077
VAT recoverable 1,674 251
Prepayments 166 401
Loans issued - 1,559
Other receivables 469 591
17,891 6,879
Trading prepayments represent actual payments made by the Group to suppliers
for the January 2015 gas supply.
Trading receivables represent current receivables from customers that have been
paid in January 2015. As of 31 December 2014 there were no past due
receivables and no related impairment provision. The Group considers that the
carrying amount of receivablesapproximates their fair value.
VAT Receivable is presented net of the cumulative provision of $4.4 million
(2013: $9.5 million) against Ukrainian VAT receivable has been recognised as
at 31 December 2014. Ageing of VAT receivable varies from 2 months to 2 years.
Receivable from joint ventures comprise $1.2 million from Astroinvest-Energy
LLC (2013: $1.6 million) and $0.7 million from Gazvydobuvannya LLC (2013: $2.5
million).
Loans issued of $1.6 million as at 31 December 2013 represent loan issued in
June 2013 to Oil and Gas Management Services Group Limited ("OAGSG") as part of
$3 million Loan Facility on a fully secured basis against receivables due to
OAGSG with the term of loan of 24 months and annual interest of 15%. It was
fully repaid on 9 July 2014. In July 2014 the agreement was cancelled and the
loan was settled by the counterparty in full amount.
22. Cash and cash equivalents
Cash and cash equivalents as at 31 December 2014 of $48.9 million (2013: $56.5
million) comprise cash held by the Group. The Directors consider that the
carrying amount of these assets approximates to their fair value.
As of 31 December 2014 part of the cash and cash equivalents in amount of $20
million related to security of borrowings and held at UK bank is considered to
be restricted cash balance (note 24).
23. Deferred tax
The following are the major deferred tax liabilities and assets recognised by
the Group and movements thereon during the current and prior reporting period:
Temporary differences
$'000
Liability as at 1 January 2013 586
Deferred tax expense 120
Exchange differences (31)
Liability as at 1 January 2014 675
Deferred tax benefit (207)
Exchange differences (180)
Liability as at 31 December 2014 288
At 31 December 2014, the Group had the following unused tax losses available
for offset against future taxable profits:
2014 2013
$'000 $'000
UK 10,274 13,623
Netherlands - 938
Ukraine 69,010 46,719
79,284 61,280
Deferred tax assets have not been recognised in respect of these tax losses
owing to the uncertainty that profits will be available in future periods
against which they can be utilised.
The Group's unused tax losses of $10.3 million (2013: $13.6 million) relating
to losses incurred in the UK are available to shelter future non-trading
profits arising within the Company. These losses are not subject to a time
restriction on expiry.
Unused tax losses incurred by Ukraine subsidiaries amount to $69.0 million
(2013: $46.7 million). Under general provisions, these losses may be carried
forward indefinitely to be offset against any type of taxable income arising
from the same company of origination. Tax losses may not be surrendered from
one Ukraine subsidiary to another. However, in the past, Ukrainian legislation
has been imposed which restricted the carry forward of tax losses. During 2011
a new tax legislation in Ukraine was implemented which resulted in the
restriction to recognition of accumulated losses at 1 April 2011. Starting 1
January 2012 only 25% of accumulated losses as at this date are allowed to be
utilised each year for the period from 2012 till 2015 in the calculation of
taxable income of the company. Tax losses accumulated after 1 January 2012 have
no restrictions.
24. Short-term borrowings
In October 2014 the Group started to use short-term borrowings as a financing
facility for its trading activities. Borrowings are represented by credit line
drawn in UAH at Ukrainian bank, 100% subsidiary of UK bank. Credit line is
secured by $20 million of cash balance placed at UK bank.
Outstanding amount as at 31 December 2014 was $17.3 million with average
effective interest rate 16% p.a. Interest is paid monthly and as at 31 December
2014 accrued interest amounted to $0.2million.
25. Trade and other payables
2014 2013
$'000 $'000
Prepayments received 2,470 -
Trade creditors 723 1,125
Accruals 631 1,148
Taxes and social security 425 21
Trading payables 312 -
Payables to joint ventures 159 801
Other payables 348 347
5,068 3,442
Prepayments received represent payments from the customers for the natural gas
to be supplied in January 2015.
Trading payables represent liability to suppliers for the natural gas supply in
December 2014.
Trade creditors and accruals principally comprise amounts outstanding for
capital work programme purchases and ongoing costs. The average credit period
taken for trade purchases is 91 days (2013: 70 days). The Group has financial
risk management policies to ensure that all payables are paid within the credit
timeframe.
The Directors consider that the carrying amount of trade and other payables
approximates to their fair value. No interest is generally charged on
outstanding balances.
26. Provisions
$'000
At 1 January 2013 671
Change in estimate (note 16 and 17) 58
Unwinding of discount on decommissioning provision (note 13) 6
Exchange differences (27)
At 1 January 2014 708
Change in estimate (note 16 and 17) 296
Unwinding of discount on decommissioning provision (note 13) 48
Exchange differences (350)
At 31 December 2014 702
At 1 January 2013 671
Non-current 195
Current 513
At 1 January 2014 708
Non-current 55
Current 647
At 31 December 2014 702
In accordance with the Group's environmental policy and applicable legal
requirements, the Group intends to restore the sites it is working on after
completing exploration or development activities.
A short-term provision of $0.6 million (2013: $0.5 million) has been made for
decommissioning costs, which are expected to be incurred within the next year
as a result of the demobilisation of drilling equipment and respective site
restoration.
The long-term provision recognised in respect of decommissioning reflects
management's estimate of the net present value of the Group's share of the
expenditure expected to be incurred in this respect. This amount has been
recognised as a provision at its net present value, using a discount rate that
reflects the market assessment of time value of money at that date, and the
unwinding of the discount on the provision has been charged to the income
statement. These expenditures are expected to be incurred at the end of the
producing life of each field in the removal and decommissioning of the
facilities currently in place (currently estimated to be between 1 and 17
years).
27. Share capital
Authorised and issued equity share capital
2014 2013
'000 $'000 '000 $'000
Authorised
Ordinary shares of £0.03 each 1,000,000 57,713 1,000,000 57,713
Issued
Ordinary shares of £0.03 each 231,092 13,337 231,092 13,337
Authorised 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 2013 and 2014 231,091,734
28. Financial instruments
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able
to continue as a going concern, while maximising the return to shareholders.
The capital resources of the Group consists of cash and cash equivalents
arising from equity attributable to owners of the Company, comprising issued
capital, reserves and retained earnings as disclosed in the Consolidated
Statement of Changes in Equity.
Externally imposed capital requirement
The Group is not subject to externally imposed capital requirements.
Categories of financial instruments
2014 2013
$'000 $'000
Financial assets - loans and receivables (includes cash and cash
equivalents)
Cash and cash equivalents 48,927 56,484
Trading receivable 5,060 -
Receivable from joint venture 1,938 4,077
Loans issued - 1,559
Other receivables 469 590
56,394 62,710
Financial liabilities - measured at amortised cost
Short-term borrowings 17,327 -
Trade creditors 723 1,125
Accruals 631 1,148
Other payables 348 347
Trading payables 312 -
Payables to joint ventures 159 801
Taxes and social security 425 21
19,925 3,442
Financial risk management objectives
Management provides services to the business, co-ordinates access to domestic
and international financial markets and monitors and manages the financial
risks relating to the operations of the Group in Ukraine through internal risks
reports which analyse exposures by degree and magnitude of risks. These risks
include commodity price risks, foreign currency risk, credit risk, liquidity
risk and cash flow interest rate risk. The Group does not enter into or trade
financial instruments, including derivative financial instruments, for
speculative purposes.
The Audit Committee of the Board reviews and monitors risks faced by the Group
through meetings held throughout the year.
Financial instruments
Interest rate risk
Interest rate risk arises from the possibility that changes in interest rates
will affect the value of the financial instruments.
The Group is not exposed to interest rate risk because entities of the Group
borrow funds at fixed interest rates.
Commodity price risk
The commodity price risk related to Ukrainian gas and condensate prices and, to
a lesser extent, prices for crude oil are the Group's most significant market
risk exposures. World prices for gas and crude oil are characterised by
significant fluctuations that are determined by the global balance of supply
and demand and worldwide political developments, including actions taken by the
Organisation of Petroleum Exporting Countries.
These fluctuations may have a significant effect on the Group's revenues and
operating profits going forward. The principal factor in the current Ukrainian
gas price is bilateral negotiations with Gazprom to establish the price of gas
imports from Russia. The price for Ukrainian gas is based on the current price
of these gas imports from Russia, which are nonetheless influenced by world
prices. Management continues to expect that the Group's principal market for
gas will be the Ukrainian domestic market.
The Group does not hedge market risk resulting from fluctuations in gas,
condensate and oil prices, and holds no financial instruments which are
sensitive to commodity price risk.
Foreign exchange risk and foreign currency risk management
The Group undertakes certain transactions denominated in foreign currencies.
Hence, exposures to exchange rate fluctuations arise. The Group to date has
elected not to hedge its exposure to the risk of changes in foreign currency
exchange rates.
The carrying amounts of the Group's foreign currency denominated monetary
assets and monetary liabilities at the reporting date are as follows:
Liabilities Assets
2014 2013 2014 2013
$'000 $'000 $'000 $'000
GBP ('£') 105 106 - -
Foreign currency sensitivity analysis
The Group is exposed primarily to movements in currencies against the US dollar
as this is the presentation currency of the Group. In order to fund
operations, US dollar funds are converted to UAH just before being contributed
to the Ukrainian subsidiaries. Sensitivity analyses have been performed to
indicate how the profit or loss would have been affected by changes in the
exchange rate between the GBP and US dollar. The analysis is based on a
weakening of the US dollar by 10 per cent against GBP, a functional currency in
the entities of the Group which have significant monetary assets and
liabilities at the end of each respective period. A movement of 10 per cent
reflects a reasonably possible sensitivity when compared to historical
movements over a three to five year timeframe. The sensitivity analysis
includes only outstanding foreign currency denominated monetary items and
adjusts their translation at the period end for a 10 per cent change in foreign
currency rates.
A number below indicates a decrease in profit where US dollar strengthens 10
per cent against the other currencies. For a 10 per cent weakening of the US
dollar against the other currencies, there would be an equal and opposite
impact on the profit or loss, and the balances would be negative.
The Group is not exposed to significant foreign currency risk in other
currencies.
The following table details the Group's sensitivity to a 10 per cent decrease
in the US dollar against the GBP.
2014 2013
$'000 $'000
Income statement (4,473) (4,587)
Inflation risk management
Inflation in Ukraine and in the international market for oil and gas may affect
the Group's cost for equipment and supplies. The Directors will proceed with
the Group's practices of keeping deposits in US dollar accounts until funds are
needed and selling its production in the spot market to enable the Group to
manage the risk of inflation.
Credit risk management
Credit risk refers to the risk that counterparty will default on its
contractual obligations resulting in financial loss to the Group. The Group's
credit management process includes the assessment, monitoring and reporting of
counterparty exposure on a regular basis. Credit risk with respect to
receivables and advances is mitigated by active and continuous monitoring the
credit quality of its counterparties through internal reviews and assessment.
Trading receivables as at 31 December 2014 have been paid in January 2015.
The Group makes allowances for impairment of receivables where there is an
identified event which, based on previous experience, is evidence of a
reduction in the recoverability of cash flows.
The credit risk on liquid funds (cash) is considered to be limited because the
counterparties are financial institutions with high and good credit ratings,
assigned by international credit-rating agencies in the UK and Ukraine
respectively.
The carrying amount of financial assets recorded in the financial statements
represents the Group's maximum exposure to credit risk.
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Board of
Directors, which has built an appropriate liquidity risk management framework
for the management of the Group's short, medium and long-term funding and
liquidity management requirements. The Group manages liquidity risk by
maintaining adequate cash reserves and by continuously monitoring forecast and
actual cash flows.
The following tables sets out details of the expected contractual maturity of
financial liabilities.
Within
3 months 3 months to 1 year More than 1 year Total
$'000 $'000 $'000 $'000
At 31 December 2014
Short-term borrowings 17,327 - - 17,327
Trade and other payables 1,683 915 - 2,598
At 31 December 2013
Trade and other payables 1,192 2,250 - 3,442
29. Commitments and contingencies
Joint activity agreements
The Group has working interests in nine licences to conduct its exploration and
development activities in Ukraine. Each licence is held with the obligation to
fulfil a minimum set of exploration activities within its term and is
summarised on an annual basis, including the agreed minimum amount forecasted
expenditure to fulfil those obligations. The activities and proposed
expenditure levels are agreed with the government licensing authority.
The required future financing of exploration and development work on fields
under the licence obligations are as follow:
2014 2013
$'000 $'000
Within one year 580 1,258
Between two and five years 520 1,863
1,100 3,121
The Group has revised its minimum working programmes and resubmitted the
required documentation to the government authorities; updated commitments have
decreased for all licences from $3.1 million to $1.1 million. Licence
obligations of the joint ventures as at 31 December 2014 amounted to $0.5
million (2013: $0.4 million) of obligations within one year and $0.4 million
(2013: $0.1 million) of obligations between two and five years.
In addition to licence commitments, the Group is committed together with ENI to
fund LLC Astroinvest-Energy subsequently to year end with the necessary amount
of $2.3 million in order to close current liabilities of the joint venture.
Tax contingent liabilities
The Group assesses its liabilities and contingencies for all tax years open for
audit by UK tax authority based upon the latest information available. For
those matters where it is probable that an adjustment will be made, the Group
records its best estimate of these tax liabilities, including related interest
charges. Inherent uncertainties exist in estimates of tax contingencies due to
complexities of interpretation and changes in tax laws.
Whilst the Group believes it has adequately provided for the outcome of these
matters, certain periods are under audit by the UK tax authority, and therefore
future results may include favourable or unfavourable adjustments to these
estimated tax liabilities in the period the assessments are made, or resolved.
The final outcome of tax examinations may result in a materially different
outcome than assumed in the tax liabilities.
30. Related party transactions
All transactions between the Company and its subsidiaries, which are related
parties, have been eliminated on consolidation and are not disclosed in this
note. The application of IFRS 11 has resulted in the existing joint ventures
LLC Astroinvest-Energy, LLC Gazvydobuvannya and LLC Westgasinvest being
accounted for under the equity method and disclosed as related parties.
During the period, Group companies entered into the following transactions with
joint ventures who are considered as related parties of the Group:
2014 2013
$'000 $'000
Revenues from services provided and sales of goods 597 1,892
Purchases of goods 87 22
Amounts owed by related parties 1,938 4,077
Amounts owed to related parties 159 801
Remuneration of key management personnel
The remuneration of the Directors, who are the key management personnel of the
Group, is set out below in aggregate for each of the categories specified in
IAS 24 Related Party Disclosures. Further information about the remuneration of
individual Directors is provided in the audited part of the Annual Report on
Remuneration 2014 on pages 39 and 53.
Purchase of services Amounts owing
2014 2013 2014 2013
$'000 $'000 $'000 $'000
Short-term employee benefits 1,148 911 137 69
The total remuneration of the highest paid Director was $0.4 million in the
year (2013: $0.4 million).
The amounts outstanding are unsecured and will be settled in cash. No
guarantees have been given or received and no provisions have been made for
doubtful debts in respect of the amounts owed by related parties.
31. Events after the balance sheet date
Political and economic turmoil in Ukraine
We are monitoring the current political situation in Ukraine carefully and
there have been no disruptions to the Company's operations in either of our
operating locations.
As a result of the recent political and economic turmoil in Ukraine, there has
been a further significant devaluation of the Ukrainian Hryvnia against the US
Dollar which is likely to affect the carrying value of the Group's assets in
the future. Since 1 January 2015, the Ukrainian Hryvnia has devalued against
the US Dollar by approximately 45%.
We have reassessed the key judgements and critical accounting estimates as at
the date of this report and, based on the current status of operations, no
adjustments have been made.
Company Balance Sheet
As at 31 December 2014
2014 2013
Notes $'000 $'000
ASSETS
Non-current assets
Investments 34 - -
Receivables from subsidiaries 35 73,750 77,506
73,750 77,506
Current assets
Trade and other receivables 35 3,333 1,763
Cash and cash equivalents 35 46,634 50,280
49,967 52,043
Total assets 123,717 129,549
LIABILITIES
Current liabilities
Trade and other payables 36 (370) (1,211)
(370) (1,211)
Total liabilities (370) (1,211)
Net assets 123,347 128,338
EQUITY
Share capital 37 13,337 13,337
Retained earnings 212,902 210,297
Cumulative translation reserves 38 (102,892) (95,296)
Share-based payment reserve - -
Total equity 123,347 128,338
The financial statements of Cadogan Petroleum plc, registered in England and
Wales no. 5718406, were approved by the Board of Directors and authorised for
issue on 30 April 2015.
They were signed on its behalf by:
Bertrand Des Pallieres
Chief Executive Officer
30 April 2015
The notes on pages 67 to 106 form part of these financial statements.
Company Cash Flow Statement
For the year ended 31 December 2014
2014 2013
Note $'000 $'000
Net cash inflow/(outflow) from operating activities 39 194 (4,034)
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