REG-Cadogan Petroleum: Half Yearly Report for the Six Months ended 30 June 2017 <Origin Href="QuoteRef">CADP.L</Origin> - Part 2

Cadogan Energy SolutionsAnnouncement

29/08/2017 12:45

- Part 2: For the preceding part double click  ID:nPRrTA8D1a 

 Other revenue                                                        -    1,272              -         1,272 
 Sales between segments                                             451        -          (451)             - 
 Total revenue                                                      559    1,272         10,464        12,295 
 Other cost of sales                                              (427)    (644)       (10,097)      (11,168) 
 Depreciation                                                      (55)     (39)              -          (94) 
 Other administrative expenses                                    (193)     (22)          (215)         (430) 
 Finance cost, net                                                    -        -  (290) ((1)())         (290) 
 Segment results                                                  (116)      567          (138)           313 
 Unallocated other administrative expenses                                                            (2,093) 
 Share of losses in joint ventures                                                                    (1,360) 
 Net foreign exchange gain ((2))                                                                           42 
 Other losses, net                                                                                       (14) 
 Loss before tax                                                                                      (3,112) 

(1) Finance cost includes $1,141 thousand of interest on short-term
borrowings, $823 thousand of interest income on receivables and $28 thousand
of interet on cash deposits used for trading.
(2) The group changed its functional currency from GBP to USD as at 1 January
2016. Results of H1 2016 (loss of $3.2 million) have been amended to reflect
this change and make such a comparison correct.

4. Reversal of impairment of other assets

Reversal of impairment of other assets includes reversal of impairment of VAT
provision of $0.4 million due to the received refund of VAT that was
previously impaired and reversal of impairment of inventores of $0.1 million
for the inventories that have been impaired in previous periods and were sold
higher than the cost.

5. Finance cost, net

                                                                   Six months ended 30 June  Year ended  31 December 
                                                                        2017           2016                     2016 
                                                                       $’000          $’000                    $’000 
 Interest on short-term borrowings                                     (108)        (1 141)                  (1 414) 
 Interest on tax provision                                              (17)              -                     (33) 
                                                                                                                     
 Total interest expenses on financial liabilities                      (125)        (1 141)                  (1 447) 
                                                                                                                     
 interest income on receivbles                                             -            823                      230 
 Investment revenue                                                       59             69                      125 
 Interest income on cash deposit in Ukraine                               20             28                       31 
                                                                                                                     
 Total interest income on ecommiss assets                                 79            920                      386 
                                                                                                                     
 Unwinding of discount on ecommissioning provision (note 24)             (5)              5                     (26) 
                                                                        (51)          (216)                  (1 087) 

6. Loss per ordinary share

Profit per ordinary share is calculated by dividing the net 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 loss per share is based on the following data:

                                                    Six months ended 30 June  Year ended  31 December 
 Loss attributable to owners of the Company     2017  $ ’000    2016  $ ’000             2016  $ ’000 
                                                                                                      

   

 Loss for the purposes of basic loss per share being net loss attributable to owners of the Company   (1,991)  (3,223)  (5,912) 
                                                                                                                                
                                                                                                       Number   Number   Number 
 Number of shares                                                                                        ‘000     ‘000     ‘000 
 Weighted average number of Ordinary shares for the purposes of basic loss per share                  231 092  231,092  231,092 
                                                                                                                                
                                                                                                         Cent     Cent     Cent 
 Loss per Ordinary share                                                                                                        
 Basic                                                                                                  (0.9)    (1.4)    (2.6) 

7. Intangible exploration and evaluation assets

As of 30 June 2017 the intangible assets balance has increased in comparison
to 31 December 2016 due to work overs on Monastyretska licence.

8. Investments in joint ventures

Share of losses in joint ventures represents the recognition of Cadogan share
of losses of Westgasinvest LLC.

9. Inventories

The Group had significant volumes of natural gas as at 31 December 2016 which
have been sold during the six months ended 30 June 2017 that resulted in a
reduction of the natural gas balance from $0.9 million to $0.1 million. No
other substantial changes in inventories balances occurred.

10. Trade and other receivables

                                              Six months ended 30 June  Year ended  31 December      
                                          2017  $ ’000    2016  $ ’000             2016  $ ’000      
 Trading receivables                             1,405           2,662                         2,163 
 Trading prepayments                               445              53                           777 
 VAT recoverable                                   277           1,466                           829 
 Prepayments                                       269             148                             1 
 Receivable from joint-ventures                      -           2,412                            58 
 Other receivables                                 465             402                           318 
                                                 2,861           7,143                         4,146 
                                                                                                     

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.

11. Short-term borrowings

In 2017 the Group continued to use short-term borrowings as a financing
facility for its trading activities. Borrowings are represented by a credit
line drawn in UAH at a Ukrainian bank, a 100% subsidiary of a European bank.
The credit line is secured by $5 million of cash balance placed at a European
bank in the UK.

During the six months ended 30 June 2017 the Group repaid the credit line in
full using the proceeds from VAT refund using proceeds from VAT refund and the
outstanding amount as at 30 June 2017 was nil (30 June 2016: $7.5 million, 31
December 2016: $3.6 million). Interest is paid monthly and as at 30 June 2017
the accrued interest is nil (30 June 2016: $0.2 million, 31 December 2016:
$0.04 million).

12. Trade and other payables

The $1.5 million of trade and other payables as of 30 June 2017 (30 June 2016:
$1.3 million, 31 December 2016: $1,6 million) represent $0.8 million (30 June
2016: $0.9 million, 31 December 2016: $0.8 million) of other creditors and
$0.7 million of accruals (30 June 2016: $0.4 million, 31 December 2015: $0.8
million).

13. Commitments and contingencies

There have been no significant changes to the commitments and contingencies
reported on page 71 of the Annual Report.



Copyright (c) 2017 PR Newswire Association,LLC. All Rights Reserved