REG-Cadogan Petroleum: Annual Financial Report <Origin Href="QuoteRef">CADP.L</Origin> - Part 5
30/04/2015 18:40
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Investing activities
Interest received 827 258
Repayment of loans to subsidiary companies - 19,783
Net cash from investing activities 827 20,041
Net increase in cash and cash equivalents 1,021 16,007
Effect of foreign exchange rate changes (4,667) 2,181
Cash and cash equivalents at beginning of year 50,280 32,092
Cash and cash equivalents at end of year 46,634 50,280
Company Statement of Changes in Equity
For the year ended 31 December 2014
Cumulative
Share Retained translation Share-based
capital earnings reserves payment reserve Total
$'000 $'000 $'000 $'000 $'000
As at 1 January 2013 13,337 212,497 (97,734) 93 128,193
Share-based - 93 - (93) -
payment
Net loss for the - (2,293) - - (2,293)
year
Exchange - - 2,438 - 2,438
translation
differences
As at 1 January 2014 13,337 210,297 (95,296) - 128,338
Net income for the - 2,605 - - 2,605
year
Exchange - (7,596) - - (7,596)
translation
differences
As at 31 December
2014 13,337 212,902 (102,892) - 123,347
32. Significant accounting policies
The separate financial statements of the Company are presented as required by
the Companies Act 2006 (the "Act"). As permitted by the Act, the separate
financial statements have been prepared in accordance with International
Financial Reporting Standards.
The financial statements have been prepared on the historical cost basis. The
principal accounting policies adopted are the same as those set out in note 3
to the Consolidated Financial Statements except as noted below.
As permitted by section 408 of the Act, the Company has elected not to present
its profit and loss account for the year. Cadogan Petroleum plc reports a
profit for the financial year ended 31 December 2014 of $2.6 million (2013:
loss $2.3 million).
Investments
Investments in subsidiaries are stated at cost less, where appropriate,
provisions for impairment.
Critical accounting judgements and key sources of estimation uncertainty
The Company's financial statements, and in particular its investments in and
receivables from subsidiaries, are affected by certain of the critical
accounting judgements and key sources of estimation uncertainty described in
note 4 to the Consolidated Financial Statements.
33. Auditor's remuneration
The auditor's remuneration for audit and other services is disclosed in note 10
to the Consolidated Financial Statements.
34. Investments
The Company's subsidiaries are disclosed in note 18 to the Consolidated
Financial Statements. The investments in subsidiaries are all stated at cost
less any provision for impairment.
35. Financial assets
The Company's principal financial assets are bank balances and cash and cash
equivalents, prepayments and receivables from related parties none of which are
past due. The Directors consider that the carrying amount of receivables from
related parties approximates to their fair value.
Receivables from subsidiaries
At the balance sheet date gross amounts receivable from the fellow Group
companies were $329.0 million (2013: $348.5 million). No impairment was
recognised in 2014 or 2013. The carrying value of the receivables from the
fellow Group companies as at 31 December 2014 was $73.8 million (2013: $77.5
million). There are no past due receivables.
Trade and other receivables
2014 2013
$'000 $'000
Prepayments 3,272 51
VAT recoverable 37 138
Loans issued - 1,559
Other receivables 24 15
3,333 1,763
In December 2014 the Company has made a prepayment for the natural gas on
behalf of its Ukrainian subsidiary due to difficulties of currency purchase in
Ukraine. In 2015 this prepayment has been settled in full to the Company.
Cash and cash equivalents
Cash and cash equivalents comprise cash held by the Company and short-term bank
deposits with an original maturity of three months or less. The carrying value
of these assets approximates to their fair value.
As of 31 December 2014, cash and cash equivalents in amount of $20 million,
related to security of the loan provided to the Ukrainian subsidiary and held
at UK bank, was restricted (note 24).
36. Financial liabilities
Trade and other payables
2014 2013
$'000 $'000
Trade creditors 179 317
Other creditors and payables - 238
Accruals 191 656
370 1,211
Trade payables principally comprise amounts outstanding for trade purchases and
ongoing costs. The average credit period taken for trade purchases is 82 days
(2013: 45 days).
The Directors consider that the carrying amount of trade and other payables
approximates to their fair value. No interest is charged on balances
outstanding.
37. Share capital
The Company's share capital is disclosed in note 27 to the Consolidated
Financial Statements.
38. Cumulative translation reserve
The functional currency of the Company is pounds sterling. The financial
statements of the Company are expressed in US dollars, which is its
presentation currency. Cumulative translation reserve represents the effect of
translating the results and financial position of the Company into US dollars.
39. Notes to the cash flow statement
2014 2013
$'000 $'000
Operating loss from continuing operations 2,605 (2,293)
Operating cash flows before movements in working capital 2,605 (2,293)
Increase in receivables (1,570) (1,662)
Decrease in payables (841) (79)
Cash used in operations 194 (4,034)
Income taxes paid - -
Net cash outflow from continuing operations 194 (4,034)
40. Financial instruments
The Company manages its capital to ensure that it is able to continue as a
going concern while maximising the return to shareholders. Refer to note 28 for
the Group's overall strategy and financial risk management objectives.
The capital resources of the Group consist of cash and cash equivalents arising
from equity, comprising issued capital, reserves and retained earnings.
Categories of financial instruments
2014 2013
$'000 $'000
Financial assets - loans and receivables (includes cash and
cash equivalents)
Cash and cash equivalents 46,634 50,280
Amounts due from subsidiaries 73,750 77,506
120,384 127,786
Financial liabilities - measured at amortised cost
Trade creditors (179) (317)
(179) (317)
Interest rate risk
All financial liabilities held by the Company are non-interest bearing. As the
Company has no committed borrowings, the Company is not exposed to any
significant risks associated with fluctuations in interest rates.
Credit risk
Credit risk refers to the risk that a counterparty will default on its
contractual obligations resulting in financial loss to the Company. For cash
and cash equivalents, the Company only transacts with entities that are rated
equivalent to investment grade and above. Other financial assets consist of
amounts receivable from related parties.
The Company's credit risk on liquid funds is limited because the counterparties
are banks with high credit-ratings assigned by international credit-rating
agencies.
The carrying amount of financial assets recorded in the Company financial
statements, which is net of any impairment losses, represents the Company'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 Company's short, medium and long-term funding and
liquidity management requirements. The Company maintains adequate reserves, by
continuously monitoring forecast and actual cash flows.
The Company's financial liabilities are not significant and therefore no
maturity analysis has been presented.
Foreign exchange risk and foreign currency risk management
The Company undertakes certain transactions denominated in foreign currencies.
Hence, exposures to exchange rate fluctuations arise. The Company holds a
large portion of its foreign currency denominated monetary assets and monetary
liabilities in US dollars. More information on the foreign exchange risk and
foreign currency risk management is disclosed in note 28 to the Consolidated
Financial Statements.
41. Related parties
Amounts due from subsidiaries
The Company has entered into a number of unsecured related party transactions
with its subsidiary undertakings. The most significant transactions carried out
between the Company and its subsidiary undertakings are mainly for short and
long-term financing. Amounts owed from these entities are detailed below:
2014 2013
$'000 $'000
Cadogan Petroleum Holdings Limited 73,750 77,506
73,750 77,506
Refer to note 35 for details on the Company's receivables due from
subsidiaries.
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 to 53.
Remuneration Amounts owing
2014 2013 2014 2013
$'000 $'000 $'000 $'000
Short-term employee benefits 334 326 54 -
The total remuneration of the highest paid Director was $0.4 million in the
year (2013: $0.4 million).
42. Events after the balance sheet date
Events after the balance sheet date are disclosed in note 31 to the
Consolidated Financial Statements.
Glossary
IPO Initial public offering
IFRSs International Financial Reporting Standards
JAA Joint activity agreement
UAH Ukrainian hryvnia
GBP Great Britain pounds
$ United States dollars
bbl Barrel
boe Barrel of oil equivalent
mmboe Million barrels of oil equivalent
mboe Thousand barrels of oil equivalent
mboepd Thousand barrels of oil equivalent per day
boepd Barrels of oil equivalent per day
bcf Billion cubic feet
mmcm Million cubic metres
mcm Thousand cubic metres
Reserves Those quantities of petroleum anticipated to be commercially
recoverable by application of development projects to known
accumulations from a given date forward under defined conditions.
Reserves include proved, probable and possible reserve
categories.
Proved Those additional Reserves which analysis of geoscience and
Reserves engineering data can be estimated with reasonable certainty to be
commercially recoverable, from a given date forward, from
reservoirs and under defined economic conditions, operating
methods and government regulations.
Probable Those additional Reserves which analysis of geoscience and
Reserves engineering data indicate are less likely to be recovered than
proved Resources but more certain to be recovered than possible
Reserves.
Possible Those additional Reserves which analysis of geoscience and
Reserves engineering data indicate are less likely to be recoverable than
probable Reserves.
Contingent Those quantities of petroleum estimated, as of a given date, to
Resources be potentially recoverable from known accumulations by
application of development projects, but which are not currently
considered to be commercially recoverable due to one or more
contingencies.
Prospective Those quantities of petroleum which are estimated as of a given
Resources date to be potentially recoverable from undiscovered
accumulations.
1P Proved Reserves
2P Proved plus probable Reserves
3P Proved plus probable plus possible Reserves
Carboniferous A geological period 295 million to 354 million years before
present
Devonian A geological period between 417 million and 354 million years
before present
Visean Geological period within the early to middle Carboniferous
Spud To commence drilling, once the cement cellar and conductor pipe
at the well-head have been constructed
TD Target depth
Workover The process of performing major maintenance or remedial treatment
of an existing oil or gas well
LWD Logging while drilling
Shareholder Information
Financial calendar 2015/2016
Annual General Meeting 25 June 2015
Half Yearly results announced August 2015
Annual results announced April 2016
Investor relations
Enquiries to: info@cadoganpetroleum.com
Registered office
1st Floor, 40 Dukes Place, London EC3A 7NH
Registered in England and Wales no. 5718406
27A Taras Shevchenko Boulevard
01032 Kyiv
Ukraine
Email: info@cadoganpetroleum.com
Tel: +38 044 591 03 90
Fax: +38 044 591 03 91
www.cadoganpetroleum.com
All references to page numbers in the announcement are to the page numbers in
the full Annual Report and Financial Statements which can be found on the
Company's website www.cadoganpetroleum.com.
END
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