REG - Capricorn Energy PLC - Half-Year Report Announcement
19/09/2024 07:00
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RNS Number : 7761E Capricorn Energy PLC 19 September 2024
FOR IMMEDIATE RELEASE
19 September 2024
CAPRICORN ENERGY PLC ("Capricorn" or "the Company")
Half-Year Report Announcement
Randy Neely, Chief Executive, Capricorn Energy PLC said:
"I am delighted to report that Capricorn's clear value opportunity offering
has been confirmed by the Company's production performance in Egypt indicating
that we are on track to meet guidance targets for the full year. Maximising
the value of the Company was the driving force behind the wholesale
restructure of the business early last year, and this strategy has transformed
Capricorn into the cash flow focused energy producer it is today.
Following material cash collections in Egypt, we have resumed investing. A key
catalyst in improving production and unlocking value from these assets will be
an amendment to the terms of our Production Sharing Contracts (PSCs) and we
are formally engaged with our operating partner, Cheiron, and the Egyptian
General Petroleum Corporation (EGPC) to achieve this. We were pleased to meet
with Egypt's new Minister of Petroleum & Mineral Resources, Karim Badawi,
who has publicly outlined his intent to improve the investment environment to
boost oil and gas production in country. We also met with the newly appointed
Cheiron CEO and look forward to working together on this mutually beneficial
objective.
We welcome the consistency of regular payments received from EGPC to date in
2024, improving the Company's financial position and reinforcing our assertion
that the Egyptian government honours its financial obligations. This gives us
confidence that Capricorn will continue to collect receivables as we move
forward with a focus on production enhancement, asset optimisation and value
creation.
With a strong balance sheet and up to $72m of contingent and deferred receipts
due in the months ahead, the Company moves into H2/24 with positive momentum
as we prioritise opportunities for further shareholder returns and to create
value in the UK North Sea, supported by our Egyptian asset base."
H1 2024 Financial and Operational Highlights
Ø ~$50m returned to shareholders in June and ~$21m of the $25m share buyback
repurchased
Ø Revenue in Egypt of $80m with realised oil price of $78.6 per bbl and gas
price of $2.97 per mscf
Ø Material improvement of collections against Capricorn's Egypt accounts
receivable since YE/23 with cash receipts of $93m in H1/24 compared to $50m in
H1/23
Ø Egypt receivables due have reduced from $169m at YE/23 to $155m at H1/24,
with a further ~$20m received to date Q3/24
Ø Operating cost per boe of $4.7 on WI basis
Ø Sangomar Field first oil condition satisfied: $50m contingent payment
anticipated early 2025 subject to satisfying oil price and performance
conditions
Ø Balance sheet: Group cash $148m, net cash $40m after debt
Ø Development & Production capex of $32m
Ø Drilling resumed in Egypt with a liquids focused strategy
Ø Egypt H1 2024 WI production averaged ~26,200 boepd
Ø New Non-Executive Chair and Non-Executive Director appointed
2024 Outlook
Ø FY24 production expected to meet guidance of 20,000 - 24,000 boepd,
reflecting robust asset performance and the resumption of development
drilling. Average production to date of ~24,700 boepd
Ø Full year forecast capital expenditure of $50-60m following the resumption
of drilling, with opex expected to average <$6 per boe
Ø Progress negotiations with EGPC towards an improved PSC
Ø Gross G&A remains on target to reach a run rate of ~$20m annually, by
year end
Ø Continue to actively evaluate opportunities to create shareholder value in
the UK North Sea
Enquiries to:
Analysts / Investors
Nathan Piper, Commercial Director Tel: 0131 475 3000
Media
Diana Milford, Corporate Affairs Tel: 0131 475 3000
Billy Clegg/Georgia Edmonds, Camarco Tel: 0203 757 4980
Webcast
There will be a live audio webcast of the results presentation available to
view on the website (www.capricornenergy.com) at 12 noon BST. This can be
accessed on PC, Mac, iPad, iPhone, and Android mobile devices.
An 'on demand' version of the webcast will be available on the website as soon
as possible after the event. This can be viewed on PC, Mac, iPad, iPhone, and
Android mobile devices.
Presentation
The results presentation slides will be available on the website from 12 noon
BST.
Conference call
You can listen to the results presentation by dialling in to a conference call
at 12 noon BST using the below dial-in-details. Analysts who wish to ask a
question should use the conference call facility.
Dial-in Details:
United Kingdom (Local): +44 (0) 33 0551 0200
Access code: Quote 'Capricorn Half Year Results' when prompted by the operator
Transcript
A transcript of the results presentation will be available on the website as
soon as possible after the event.
Corporate overview
Following entry into a Relationship Agreement with Palliser Capital in March,
Capricorn welcomed Sachin Mistry as Non-Executive Director with effect from
the close of the 2024 AGM. Capricorn's Board underwent further changes in H1
2024 as Craig van der Laan, who had been Non-Executive Chair since February
2023, decided not to stand for re-election, and with Maria Gordon being
elected as Non-Executive Chair at the Company's AGM in May. Towards the end of
the period Hesham Mekawi, independent Non-Executive Director, stepped down
from the Board.
Capricorn made significant strides in increasing its management team
capabilities in the first half of 2024 with the appointments of Eddie Ok as
CFO and Geoff Probert as COO. Both Eddie and Geoff bring deep industry
experience and strong relationships in Egypt, coupled with strategic,
financial and operational leadership.
A year and a half on from the renewal of the Board in Q1 2023, Capricorn has
made significant progress across the five key priorities it set out which
included capital returns, cost savings, scaling back non-core operations,
maximisation of value from Egypt and a comprehensive corporate culture change.
During the first half of 2024, Capricorn declared another special dividend of
approximately $50m (~£39.35m) to shareholders and completion of a
consolidation of Capricorn's ordinary share capital. The special dividend was
paid on 7 June 2024 with a contemporaneous share consolidation reflecting the
cash return relative to the Group's market capitalisation.
As well as shareholder returns through its special dividends in June,
Capricorn announced the resumption of the $25m share buyback programme
initially announced in May 2023, of which approximately $21m has been
repurchased. Returning excess capital to shareholders will continue to be a
focus of the Board. The Company will consider the extension of the current
$25m buyback programme. As at 30 June 2024 the employee benefit trust held
~700,000 shares. Since then, the trust has been instructed to carry out
further acquisitions to seek to reach a balance of ~1.7m shares by 31 December
2024.
Against an improved fiscal environment in Egypt, Capricorn approved an Egypt
budget in May for the year, with a total net capex spend forecast to be in the
range of $50-60m including various infrastructure projects and the drilling of
11 development and two committed exploration wells. Capricorn will continue to
actively manage investment in Egypt aligned with funds available in-country
exclusive of exploration commitments.
Reducing the Group's receivables position in Egypt remains a key focus. During
the period from year end 2023 to the half year, Capricorn collected $93m of
receivables, and subsequent to June 30 we have received ~$20m.
Since August, Capricorn together with our Partner, has proposed to EGPC an
amendment to the eight concessions jointly owned by Capricorn and Cheiron
(excluding AESW and NEAG at this time). EGPC has formed a committee and
negotiations have commenced. This process is well established in Egypt with
several operators having secured improved fiscal terms, acting as a stimulus
to production-generating investment. It is typical for this process to take an
extended number of months, however the Company is encouraged by the
government's stated priorities and pleased to have initiated the process to
maximise production and value.
Egypt Operations
Following resumption of drilling activity in July, Capricorn has continued
with its liquids focused strategy, principally focused in the BED area. We
have been working closely with the Operator, Cheiron, to manage the delivery
of an optimised well sequence with a reduced rig count. Our strategy remains
focused on managing the subsurface risk and extending the field limits of the
Abu Roash G accumulations. A new development lease application was submitted
in the first half of 2024, with the aim of securing the potential extension of
such accumulations.
In addition to the development activity, exploration drilling is due to
recommence in October to fulfil outstanding work commitments across three
licences. In early 2024 licence extensions were secured to allow the deferment
of this activity, enabling an increased level of development activity.
Exploration targets include the well-established reservoirs of the Western
Desert and the emerging Abu Roash F unconventional play.
Senegal
On 10 June 2024, Capricorn noted Woodside Energy's announcement confirming
first oil had commenced, triggering a potential $50m contingent payment due in
early 2025 if average Brent prices for the six months after first oil are
greater than $60 (or $25m if Brent exceeds $55 per barrel) and there has been
30 days of continuous production. Year to date Brent prices from 10 June
averaged ~$81/bbl. Capricorn remains committed to returning any available
proceeds of this contingent payment to its shareholders. The precise amount of
distribution remains subject to retaining flexibility to fund any disputed tax
obligations.
Tax dispute
The Government of Senegal has sought to impose a 5% registration duty on
Capricorn's $520m sale to Woodside. Capricorn had been informed in writing in
2014 by the Ministry of Energy that this tax would not be applicable to
transactions taking place before first oil (as was consistent with Capricorn's
analysis of the applicable legislation). The Government has also sought to
impose capital gains tax at 5% on a supposed ~$202m profit made by Capricorn
on the disposal of its assets in Senegal. This tax should also not be
applicable to transactions taking place before first oil, in addition to being
a misunderstanding of the terms of the disposal - Capricorn recorded a ~$230m
loss on the transaction.
Woodside, as recipient of the tax assessment, has filed an action with the
High Court of Dakar disputing this assessment in Q3 2024. Woodside is also
preserving its rights under its Host Government Agreement and international
treaties in relation to this matter.
Future opportunities
We continue to focus attention on leveraging our advantaged UK North Sea
position and pursuing other opportunities.
Principal risks and uncertainties
Managing Capricorn's key risks and associated opportunities is essential to
the company's long-term success and sustainability. The Group endeavours to
pursue investment opportunities which offer an appropriate level of return
whilst ensuring the level of associated political, commercial and technical
risk remains within the defined risk appetite of the company.
Capricorn's risk management framework provides a systematic process for the
identification and management of the key risks and opportunities which may
affect the delivery of the Group's strategic objectives. Key Performance
Indicators are set annually and determining the level of risk the business is
willing to accept in the pursuit of these objectives is a fundamental
component of Capricorn's risk management framework.
Overall responsibility for the system of risk management and internal control
and reviewing the effectiveness of such systems rests with the Board.
Principal risks, as well as progress against key risk projects, are reviewed
at each Board meeting and at least once a year the Board undertakes a risk
workshop to review the Group's principal risks. This integrated approach to
risk management has been and continues to be critical to the delivery of
strategic objectives.
Responding to Changing Risks during H2 2024
Capricorn has assessed the risks and uncertainties at the end of H1 2024 and
the principal risks are:
➢ Volatile oil and gas prices
➢ Increasing EGPC receivables balance
➢ Failure to replace long-term reserves and resources
➢ Counterparty credit risk
➢ Political and fiscal uncertainties
➢ Future challenges and costs as markets transition to Net Zero
➢ Lack of adherence to health, safety, environment and security policies
➢ Material breach of the Group Code of Ethics
Within the Group's risk assessment framework, emerging risks are considered as
part of the identification phase. These are risks that cannot yet be fully
assessed, risks that are known but are not likely to have an impact for
several years, or risks which are unknown but could have implications for the
business moving forward.
Egypt continues to be the focus of the discussions and work continues to
identify potential known and emerging threats and opportunities which could
impact on Capricorn's ability to grow the Egypt business both organically and
inorganically.
Financial Review
Key production statistics
Period Period Year
ended ended ended
30 June 30 June 31 December
2024 2023 2023
26,215 31,496 30,044
Production - net WI share (boepd)
Sales volumes - net EI oil (boepd) 4,290 5,536 5,367
Sales volume - net EI gas (mscfd) 34,562 40,435 38,049
Average price per bbl ($)* 78.6 78.6 81.2
Revenue from production ($m) 80.3 98.3 199.9
Average production costs per boe ($) 4.7 4.8 5.4
Profit/(Loss) for the Period
Period
ended Year
Period ended 30 June ended
30 June 2023 31 December
2024 (restated) 2023
$m $m $m
Profit/(Loss) from Egypt operating segment 5.2 4.1 (60.4)
Loss from other Group continuing operations (2.7) (58.3) (82.2)
Loss from discontinued operations (0.7) (10.8) (1.4)
Profit/(Loss) after taxation 1.8 (65.0) (144.0)
Egypt Operating Segment Results
In Egypt, total revenue was $80.3m. $61.4m was generated on sale of liquids
with an average price of $78.6 per bbl on net sales volumes of 1.0 mmbbls. Gas
revenue was $18.9m from volumes of 6,361,615 mscf with an average rate of
$2.97/mscf.
Cost of sales in the year were $22.5m, including a $0.2m offset for inventory
movements. Production costs decreased slightly to $4.7 per boe, on working
interest production over the six-month period, taking advantage of the
devaluation in EGP against the $, while depletion charges were $37.3m, at a
weighted average rate of $17.11 per boe across the concessions.
Capricorn records other income on additional production that is notionally
allocated to the Group to cover tax due on profits from the concessions. This
is offset by an equal and opposite tax charge. In the current period, the
value of this income and notional tax gross-up is $23.0m.
Net finance costs in Egypt of $10.0m, including loan interest and charges, and
the Group recognised a fair value loss of $4.5m on deferred consideration
payable on the 2021 business combination.
The total tax charge on Egypt operations for the period is $19.8m, being the
tax gross-up charge of $23.0m offset by deferred tax credits on asset
temporary differences of $3.2m.
Results from other continuing operations
The loss on other continuing operations of $2.7m results from administration
charges of $11.9m and unsuccessful exploration costs of $1.8m, being increased
abandonment provisions for historic UK exploration wells, reduced by other
income of $1.1m, net finance income of $4.0m and tax refunds in India of
$5.9m.
Discontinued operations
The loss on discontinued operations of $0.7m reflects an increase on the
expected credit loss provision against remaining consideration receivable from
Waldorf. The transfer of the Columbus asset to Capricorn, agreed as part of
the settlement agreement with Waldorf in December 2023 and with an economic
effective date of 1 January 2024, remains subject to approval from the UK
authorities.
Contingent consideration on Senegal asset sale
Capricorn disposed of its interests in Senegal in 2020. Under the sale
agreement, Capricorn is due further consideration of up to $50m. With first
oil having been achieved prior to 30 June, confirmation of 30 days continuous
production and certainty over the prevailing oil price will finalise the
amount to be received, but at the time of writing is expected to be the full
$50m. No revenue has been recognised for this possible payment to date.
Senegal tax assessment
In November 2023 Capricorn received notice under the sales agreement from the
purchaser that it has received an assessment from the Senegal tax authorities
relating to operations in Senegal, with two assessments raised that would
impact Capricorn. The Company believes that neither claim is valid and is
working with the purchaser to defend the Group's position. The purchaser has
filed an action with the High Court of Dakar disputing the tax assessment from
the Senegalese tax authorities. No provision has been made in the financial
statements at the balance sheet date.
Net cash inflow for the Period
$m
Opening net cash as at 1 January 2024 75.9
Dividend paid and share re-purchase (53.4)
Net cash inflow from Egypt operations 80.4
Net cash inflow from UK discontinued operations 2.0
Exploration expenditure (2.5)
Development expenditure - Egypt (16.2)
Deferred consideration - Egypt (25.0)
Proceeds on disposal of financial assets 3.0
Administration expenses, corporate assets, and office lease costs (15.7)
Net finance costs, equity and other movements (8.0)
Closing net cash as at 30 June 2024 40.5
Cash and cash equivalent balances at 30 June 2024 of $148.3m were offset by
borrowings in Egypt of $107.8m. Cash includes restricted cash balances of
$55.2m which may not be distributed to shareholders. Of this amount, $54.3m is
available for use to fund non-operated concessions in Egypt and meet loan
interest payments. Loan repayments in the period were $5.8m, with a further
$7.7m repaid in July. At the balance sheet date, and the date of this
report, the Company is working with lenders to secure a waiver to events of
default that have occurred on the facility. Meanwhile, the lenders have
approved monthly rollovers of the borrowings and repayment schedule in line
with the most recent banking model.
Cash inflows from operations in Egypt of $80.4m can be reconciled to cash
flows from operations per the statutory cash flow as follows:
$m
Operating cash flow per statutory cash flow statement 62.6
Non-GAAP Adjustments:
Royalty income - non-Egypt (0.5)
Administration expenses 15.8
General exploration costs 2.5
Net cash inflow from Egypt operations 80.4
During the six months to 30 June 2024, Capricorn received payments of $92.8m
against outstanding trade receivables. The Company continues to engage with
Government officials in Egypt to agree measures to reduce the receivables
position. Closing trade receivables in Egypt were $155.4m at 30 June 2024,
after expected credit loss adjustments.
Balance Sheet
The Group's net asset position at 30 June 2024 is summarised as follows:
$m
Development assets and goodwill - Egypt 222.6
Other long-term assets 20.6
Net deferred tax assets 1.3
Working capital - non-Egypt 111.0
Cash and cash equivalents 93.6
Deferred consideration receivable 19.9
Trade and other receivables and payables, and provisions (2.5)
Working capital - Egypt 26.1
Trade and other receivables and payables, and inventory 77.9
Net debt, including unamortised facility fees (51.8)
Lease liabilities (7.1)
Deferred consideration on business combination (24.3)
Net assets 350.2
Development assets and goodwill
At the period end, the carrying value of the Group's producing assets in Egypt
was $211.8m, after additions in the period of $31.5m.
The Group reviewed its producing assets in Egypt for indicators of impairment,
however no indicators were identified, and no impairment tests have therefore
been performed at the half-year.
Other assets and liabilities
Other long-term assets include $7.0m due if the Group's acquisition of the
Columbus asset fails to gain approval from the UK authorities. Deferred
consideration receivable on the settlement agreement with Waldorf is due in
January 2025 and is disclosed net of expected credit loss adjustments.
Deferred consideration due on the Egypt business combination is also held at
fair value with a total liability of $24.3m for the remaining payment due in
2025.
The Group's net deferred tax position at 30 June 2024 fully relates to assets
in Egypt.
Equity movements
Shareholder returns and share premium cancellation
Capricorn returned $53.8m to shareholders by way of a dividend of $50.1m and
$3.7m of share re-purchase in H1 2024. The Company undertook a share
consolidation at the same time as paying the dividend. This completed on 24
May 2024 where the existing 91,937,909 of ordinary shares of 735/143 pence
each were replaced with 72,153,802 ordinary shares of 799/122 pence each.
Statement of Directors' Responsibilities
The directors confirm that these condensed consolidated interim financial
statements have been prepared in accordance with UK adopted International
Accounting Standard 34, 'Interim Financial Reporting', and the Disclosure
Guidance and Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority and give a true and fair view of the assets, liabilities,
financial position and loss for the period and that the interim management
report includes a fair review of the information required by DTR 4.2.7 and DTR
4.2.8, namely:
Ø an indication of important events that have occurred during the first six
months and their impact on the condensed set of financial statements, and
Ø a description of the principal risks and uncertainties for the remaining
six months of the financial year.
There were no material related-party transactions in the first six months and
no material changes in the related-party transactions described in the last
annual report.
The directors of Capricorn Energy PLC are listed in the Capricorn Energy PLC
Annual Report for 31 December 2023. A list of current directors is maintained
on the Capricorn Energy PLC website: www.capricornenergy.com
(https://eur02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.capricornenergy.com%2F&data=05%7C01%7CLinda.Bain%40capricornenergy.com%7C466d244d71fa4f529e0208da868fec1c%7C6a30739f42ae4fff976f6454dfbc8f84%7C0%7C0%7C637970249936334273%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=PLOzunmcCxzEkwwnnrRz4i%2FUEzriI1akRT04lU6gKJM%3D&reserved=0)
.
By order of the Board.
Randy Neely
Chief Executive
18 September 2024
About Capricorn Energy PLC
Capricorn is an Egypt-focused energy producer, with an attractive portfolio of
onshore exploration, development and production assets in the Western Desert.
For further information on Capricorn please see: www.capricornenergy.com
(http://www.capricornenergy.com) .
Independent review report to Capricorn Energy PLC
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed Capricorn Energy PLC's condensed consolidated interim
financial statements (the "interim financial statements") in the Financial
Statements of Capricorn Energy PLC for the 6 month period ended 30 June 2024
(the "period").
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
The interim financial statements comprise:
· the Group Balance Sheet as at 30 June 2024;
· the Group Income Statement and Group Statement of Comprehensive
Income for the period then ended;
· the Group Statement of Cash Flows for the period then ended;
· the Group Statement of Changes in Equity for the period then
ended; and
· the explanatory notes to the interim financial statements.
The interim financial statements included in the Financial Statements of
Capricorn Energy PLC have been prepared in accordance with UK adopted
International Accounting Standard 34, 'Interim Financial Reporting' and the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the Financial Statements and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The Financial Statements, including the interim financial statements, is the
responsibility of, and has been approved by the directors. The directors are
responsible for preparing the Financial Statements in accordance with the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority. In preparing the Financial Statements, including
the interim financial statements, the directors are responsible for assessing
the group's ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the group or to
cease operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the Financial Statements based on our review. Our conclusion,
including our Conclusions relating to going concern, is based on procedures
that are less extensive than audit procedures, as described in the Basis for
conclusion paragraph of this report. This report, including the conclusion,
has been prepared for and only for the company for the purpose of complying
with the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority and for no other purpose. We do not, in
giving this conclusion, accept or assume responsibility for any other purpose
or to any other person to whom this report is shown or into whose hands it may
come save where expressly agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
Edinburgh
18 September 2024
Capricorn Energy PLC
Financial Statements
For the six months ended 30 June 2024
Contents
Group Income Statement
Group Statement of Comprehensive Income
Group Balance Sheet
Group Statement of Cash Flows
Group Statement of Changes in Equity
Section 1 - Basis of Preparation
1.1 Accounting Policies: Basis of Preparation
1.2 Going Concern
1.3 Restatement of Comparative Information
Section 2 - Oil and Gas Assets and Operations
2.1 Gross Profit: Revenue and Cost of Sales
2.2 Intangible Exploration/Appraisal Assets
2.3 Property, Plant & Equipment - Development/Producing Assets
2.4 Other Property, Plant & Equipment and Intangible Assets
2.5 Capital Commitments
Section 3 - Working Capital, Financial Instruments and Long-Term Liabilities
3.1 Cash and Cash Equivalents
3.2 Loans and Borrowings
3.3 Lease Liabilities
3.4 Trade and Other Receivables
3.5 Financial Assets and Liabilities at Fair Value Through Profit and Loss
3.6 Trade and Other Payables
Section 4 - Income Statement Analysis
4.1 Segmental Analysis
4.2 Administrative and Other Expenses
4.3 Finance Income
4.4 Finance Costs
4.5 Earnings per Ordinary Share
Section 5 - Taxation
5.1 Tax Charge on Profit/(Loss) for the Period
5.2 Deferred Tax Asset and Liabilities
Section 6 - Discontinued Operations
6.1 Loss from Discontinued Operations
6.2 Cash Flow Information for Discontinued Operations
6.3 Discontinued Operations - Senegal Contingent Asset
6.4 Discontinued Operations - Senegal Contingent Liability
Section 7 - Share Capital
7.1 Called-Up Share Capital
7.2 Return of Cash to Shareholders
7.3 Share Buyback
Capricorn Energy PLC
Group Income Statement
For the six months ended 30 June 2024
Note Six months ended Six months ended Year
30 June 30 June ended
2024 2023 31 December
(unaudited) (unaudited) 2023
$m (restated) (audited)
$m $m
Continuing operations
Revenue 2.1 80.8 98.8 201.0
Other income 2.1 23.0 29.8 54.1
Cost of sales (22.5) (27.5) (59.6)
Depletion charge 2.3 (37.3) (59.8) (120.4)
Gross profit 44.0 41.3 75.1
Pre-award costs - (1.0) (1.1)
General exploration costs (1.4) (15.8) (26.9)
Unsuccessful exploration well costs 2.2 (4.3) (18.6) (20.5)
Impairment of property, plant and equipment - development/producing assets 2.3 - - (29.1)
Impairment of goodwill - - (14.6)
Expected credit loss adjustment on revenue receivable - - (9.0)
Other operating income -0.6 0.4 0.6
Administrative and other expenses 4.2 (12.0) (41.3) (61.9)
Operating profit/(loss) 26.9 (35.0) (87.4)
Fair value loss - deferred consideration on business combination (4.5) (3.4) (8.0)
Gain on financial assets at fair value through profit or loss - - 0.8
Impairment of an asset held-for-sale - - (4.0)
Finance income 4.3 5.0 16.3 21.8
Finance costs 4.4 (11.0) (14.9) (25.3)
Profit/(Loss) before taxation from continuing operations 16.4 (37.0) (102.1)
Tax charge 5.1 (13.9) (17.2) (40.5)
Profit/(Loss) from continuing operations 2.5 (54.2) (142.6)
Loss from discontinued operations 6.1 (0.7) (10.8) (1.4)
Profit/(Loss) for the period attributable to equity holders of the Parent 1.8 (65.0) (144.0)
Earnings per share for profit/(loss) from continuing operations:
Profit/(Loss) per ordinary share - basic ($) 4.5 0.03 (0.18) (0.74)
Profit/(Loss) per ordinary share - diluted ($) 4.5 0.03 (0.18) (0.74)
Earnings per share for profit/(loss) attributable to equity holders of the
Parent:
Profit/(Loss) per ordinary share - basic ($) 4.5 0.02 (0.22) (0.75)
Profit/(Loss) per ordinary share - diluted ($) 4.5 0.02 (0.22) (0.75)
Capricorn Energy PLC
Group Statement of Comprehensive Income
For the six months ended 30 June 2024
Six months ended Six months ended Year
30 June 30 June ended
2024 2023 31 December
(unaudited) (unaudited) 2023
$m (restated) (audited)
$m $m
Profit/(Loss) for the period attributable to equity holders of the Parent 1.8 (65.0) (144.0)
Other Comprehensive (Expense)/Income - items that may be recycled to the
Income Statement
Currency translation differences (0.5) 5.3 5.1
(0.5) 5.3 5.1
Other Comprehensive (Expense)/Income for the period
Total Comprehensive Income/(Expense) for the period attributable to equity 1.3 (59.7) (138.9)
holders of the Parent
Total Comprehensive Income/(Expense) from:
Continuing operations 2.0 (48.9) (137.5)
Discontinuing operations (0.7) (10.8) (1.4)
1.3 (59.7) (138.9)
Capricorn Energy PLC
Group Balance Sheet
As at 30 June 2024
30 June 30 June 31 December
2024 2023 2023
(unaudited) (unaudited) (audited)
(restated)
Note $m $m $m
Non-current assets
Intangible exploration/appraisal assets 2.2 - 0.8 2.5
Property, plant & equipment - development/producing assets 2.3 211.8 257.8 217.6
Goodwill 10.8 25.4 10.8
Other property, plant & equipment and intangible assets 2.4 13.6 28.4 14.5
Financial assets at fair value through profit or loss 3.5 - 36.7 -
Deferred tax asset 5.2 10.0 10.9 7.6
Other long-term receivables 6.1 7.0 - 27.6
253.2 360.0 280.6
Current assets
Cash and cash equivalents 3.1 148.3 301.0 189.5
Inventory 8.5 9.0 8.3
Trade and other receivables 3.4 192.7 197.0 186.0
Financial assets at fair value through profit or loss 3.5 - 38.0 -
349.5 545.0 383.8
Asset held-for-sale - - 3.2
602.7 905.0 667.6
Total assets
Current liabilities
Loans and borrowings 3.2 12.4 20.3 15.4
Lease liabilities 3.3 1.3 1.1 1.0
Deferred consideration on business combinations 3.5 24.3 23.3 25.0
Trade and other payables 3.6 98.7 114.3 82.0
Provisions - well abandonment - 0.8 -
136.7 159.8 123.4
Non-current liabilities
Loans and borrowings 3.2 94.1 104.2 96.4
Lease liabilities 3.3 5.8 18.1 6.4
Deferred consideration on business combinations 3.5 - 16.9 19.8
Deferred tax liabilities 5.2 8.7 13.8 9.6
Provisions - well abandonment 7.2 3.6 5.5
115.8 156.6 137.7
252.5 316.4 261.1
Total liabilities
350.2 588.6 406.5
Net assets
Equity attributable to equity holders of the Parent
Called-up share capital 7.1 7.4 7.8 7.6
Share premium 7.1 0.9 0.8 0.8
Shares held by ESOP/SIP Trusts (3.6) (11.9) (6.3)
Foreign currency translation (86.2) (85.5) (85.7)
Merger and capital reserves 46.1 45.7 45.9
Retained earnings 385.6 631.7 444.2
350.2 588.6 406.5
Total equity
Capricorn Energy PLC
Group Statement of Cash Flows
For the six months ended 30 June 2024
Six months ended Six months ended Year
30 June 30 June ended
2024 2023 31 December
(unaudited) (unaudited) 2023
$m (restated) (audited)
$m $m
Cash flows from operating activities:
Profit/(Loss) before taxation from continuing operations 16.4 (37.0) (102.1)
Loss before tax from discontinued operations (note 6.1) (0.7) (14.9) (5.5)
Profit/(Loss) before tax including discontinued operations 15.7 (51.9) (107.6)
Adjustments for non-cash income and expense and non-operating cash flows:
Other income - tax entitlement volumes (23.0) (29.8) (54.1)
Unsuccessful exploration costs 4.3 18.6 20.5
Depreciation, depletion and amortisation charges 38.7 63.9 127.1
Impairment of property, plant and equipment - development/producing assets - - 29.1
Impairment of goodwill - - 14.6
Expected credit loss adjustment on revenue receivable - - 9.0
Share-based payments charge 0.9 0.7 2.5
Fair value loss - deferred consideration on business combination 4.5 3.4 8.0
Loss on financial assets at fair value through profit or loss - discontinued - 19.2 10.4
operations
Gain on financial assets at fair value through profit or loss - continuing - - (0.8)
operations
Impairment of an asset held-for-sale - - 4.0
Loss on disposal of a financial asset - discontinued operations 0.7 - 1.7
Finance income (5.0) (16.3) (21.8)
Finance costs 11.0 14.9 25.3
Adjustments in current assets and liabilities:
Inventory movement (0.2) (0.9) (0.2)
Decrease/(Increase) in trade and other receivables (note 3.4) 17.2 (36.7) (69.0)
Decrease in trade and other payables (note 3.6) (2.2) (0.6) (38.6)
62.6 (15.5) (39.9)
Net cash flows from/(used in) operating activities
Cash flows from investing activities:
Expenditure on intangible exploration/appraisal assets - (13.0) (16.4)
Expenditure on development/producing assets (16.2) (37.7) (44.2)
Expenditure on other property, plant & equipment and intangible assets - (0.1) (0.3)
Deferred consideration received - discontinued operations 2.0 134.4 182.4
Deferred consideration paid on business combination (25.0) (25.0) (25.0)
Sale of an asset held-for-sale 3.0 - -
Interest received and other finance income 5.2 20.7 24.3
(31.0) 79.3 120.8
Net cash flows (used in)/from investing activities
Cash flows from financing activities:
Dividends paid (50.1) (445.7) (542.1)
Share re-purchase (3.3) (11.4) (18.9)
Other interest and charges (8.8) (9.5) (16.0)
Repayment of loans and borrowings (5.8) (33.5) (48.3)
Proceeds from issue of shares 0.1 0.8 0.8
Cost of shares purchased (3.9) (16.9) (19.5)
Lease payments (0.4) (1.5) (2.2)
Net cash flows used in financing activities (72.2) (517.7) (646.2)
Net decrease in cash and cash equivalents (40.6) (453.9) (565.3)
Opening cash and cash equivalents at the beginning of the period 189.5 756.8 756.8
Foreign exchange differences (0.6) (1.9) (2.0)
148.3 301.0 189.5
Closing cash and cash equivalents (note 3.1)
Capricorn Energy PLC
Group Statement of Changes in Equity
For the six months ended 30 June 2024
Equity Shares held by ESOP/ SIP Trusts Foreign currency translation Merger and capital reserves Retained earnings Total equity
share capital and share premium (restated) (restated)
$m $m $m $m $m $m
At 1 January 2023 503.4 (15.3) (90.8) 45.5 678.8 1,121.6
Loss for the year - - - - (144.0) (144.0)
Currency translation differences - - 5.1 - - 5.1
- - 5.1 - (144.0) (138.9)
Total comprehensive income/(expense)
Dividends paid - - - - (541.1) (541.1)
Share repurchase (0.4) - - 0.4 (18.9) (18.9)
Share based payments - - - - 2.5 2.5
Exercise of employee share options 0.8 - - - - 0.8
Share premium cancelled (495.4) - - - 495.4 -
Cost of shares purchased - (19.5) - - - (19.5)
Cost of shares vesting - 28.5 - - (28.5) -
8.4 (6.3) (85.7) 45.9 444.2 406.5
At 31 December 2023
Profit for the period - - - - 1.8 1.8
Currency translation differences - - (0.5) - - (0.5)
- - (0.5) - 1.8 1.3
Total comprehensive (expense)/income
Share-based payments - - - - 0.9 0.9
Exercise of employee share options 0.1 - - - - 0.1
Cost of shares purchased - (4.8) - - - (4.8)
Cost of shares vesting - 7.5 - - (7.5) -
Dividends paid - - - - (50.1) (50.1)
Share repurchase (0.2) - - 0.2 (3.7) (3.7)
8.3 (3.6) (86.2) 46.1 385.6 350.2
At 30 June 2024
Capricorn Energy PLC
Group Statement of Changes in Equity (continued)
For the six months ended 30 June 2023
Equity share capital and share premium Shares held by ESOP/ SIP Trusts Foreign currency translation Merger and capital reserves Retained earnings Total
(restated) equity
(restated)
$m $m $m $m $m $m
503.4 (15.3) (90.8) 45.5 678.8 1,121.6
At 1 January 2023
Loss for the period - - - - (65.0) (65.0)
Currency translation differences - - 5.3 - - 5.3
- - 5.3 - (65.0) (59.7)
Total comprehensive income/(expense)
Share-based payments - - - - 0.7 0.7
Exercise of employee share options 0.8 - - - - 0.8
Share premium cancelled (495.4) - - - 495.4 -
Cost of shares purchased - (16.9) - - - (16.9)
Cost of shares vesting - 20.3 - - (20.3) -
Dividends paid - - - - (445.7) (445.7)
Share re-purchase (0.2) - - 0.2 (12.2) (12.2)
8.6 (11.9) (85.5) 45.7 631.7 588.6
At 30 June 2023
Section 1 - Basis of Preparation
1.1 Accounting Policies: Basis of Preparation
The half-year condensed consolidated Financial Statements (the "Financial
Statements") for the six months ended 30 June 2024 have been prepared in
accordance with the Disclosure and Transparency Rules of the Financial Conduct
Authority and with UK adopted International Accounting Standard IAS 34,
'Interim financial reporting'. They should be read in conjunction with the
annual Financial Statements for the year ended 31 December 2023, which have
been prepared in accordance with UK-adopted International Accounting Standards
and with the requirements of the Companies Act 2006 as applicable to companies
reporting under those standards.
This half-yearly report was approved by the Directors on 18 September 2024.
The disclosed figures, which have been reviewed but not audited, are not
statutory accounts in terms of Section 434 of the Companies Act 2006.
Statutory accounts for the year ended 31 December 2023, on which the auditors
gave an unqualified audit report, which did not contain an emphasis of matter
paragraph or any statement under section 498 of the Companies Act 2006, have
been filed with the Registrar of Companies.
This half-yearly report has been prepared on a basis consistent with the
accounting policies expected to be applied for the year ending 31 December
2023 and uses the same accounting and financial risk management policies and
methods of computation as those applied for the year ended 31 December 2023.
Changes to IFRS effective 1 January 2024 have no significant impact on
Capricorn's accounting policies or Financial Statements.
Material key estimates and assumptions are unchanged from those applied in the
year ended 31 December 2023 and therefore apply to these Financial
Statements.
1.2 Going Concern
The Directors have considered the factors relevant to support a statement of
going concern. In assessing whether the going concern assumption is
appropriate, the Board considered the Group cash flow forecasts under various
scenarios, identifying risks and mitigating factors and ensuring the Group has
sufficient funding to meet its current and contracted commitments as and when
they fall due for a period of at least 12 months from the date of signing
these Financial Statements.
At the balance sheet date and the date of this report, the Group has surplus
cash balances exceeding debt drawn on the Senior Secured Borrowing and Junior
Debt Facilities within the Egypt business. Under both Capricorn's and the
lenders assumptions, the Group has sufficient resources to maintain compliance
with the financial covenants associated with the facilities in terms of a
12-month forward-looking liquidity test. There are currently events of
default existing on the facilities. Capricorn are seeking a waiver from the
lenders and, while this remains outstanding, monthly rollovers of the debt
drawn, under existing repayment forecasts, have been approved by the lenders.
The lenders approved a rollover of the debt on 27(th) June 2024 allowing
Capricorn to continue to disclose payments forecast to fall due outwith 12
months from the balance sheet date as non-current liabilities.
A downside scenario run includes a return to lower oil prices, with a
reduction to $65 per bbl over the remainder of 2024 and an oil price of $60
per bbl from 2025 onward, a 10% reduction in forecast production, no
improvement in Egypt trade receivables and a failure to fully recover
remaining deferred consideration due from Waldorf. An oil-price crash scenario
assumes a fall in the oil price to $40 per bbl in Q3 2024 with a recovery of
$60 per bbl by mid-year 2025. Under both scenarios the Group has sufficient
cash headroom to continue to operate as a going concern.
Under the terms of the borrowing facilities entered into in connection with
the Group's Egypt assets, Capricorn Egypt Limited, the subsidiary holding the
Egypt assets, as borrower jointly and severally guarantees the performance of
the obligations of the joint venture counterparty. Should the counterparty
fail to meet its repayment obligations, the lender could enforce this
guarantee, though other routes to recovery would be more likely. Though
considered highly remote, default by the counterparty could result in the
lenders assuming control of the Egypt assets. However, as the facilities are
non-recourse to the rest of the Group, Capricorn would continue to operate as
a going concern with sufficient cash balances held outside Egypt and further
consideration forecast allowing the Group to meet its remaining liabilities as
they fall due.
Section 1 - Basis of Preparation
1.3 Restatement of Comparative Information
At 31 December 2022, Capricorn reversed accruals of $29.2m relating to opening
balances recognised on acquisition of the Group's Egypt development/producing
assets. The seller had provided insufficient information to allow the
reconciliation of opening balances to subsequent costs and the operator had
declined to perform such an exercise. With no supporting evidence to continue
to accrue these opening costs, the amounts were reversed as a cost adjustment
against property, plant & equipment - development/producing assets.
Early in 2024 and in light of concerns that accounts payable balances may be
understated, Capricorn was able to access the underlying accounting records of
Bapetco who maintain the gross accounting records of the joint operations on
behalf of the operator. The subsequent reconciliations performed by Capricorn
of those Bapetco gross numbers to the working interest working capital
balances recorded in Capricorn's accounting records, identified an under
accrual equivalent to the amounts reversed through the opening balance cost
adjustment processed in 2022.
The 2022 adjustment has therefore been reversed resulting in an increase to
the prior period carrying value of property, plant & equipment -
development/producing assets and an increase in working capital balances
relating to joint operations equal to $29.2m. The increase in the carrying
value of assets had a subsequent impact on the year-end 31 December 2022 and
period ended 30 June 2023 depletion charge and the related deferred tax
credit, though there was no material impact on the prior year impairment
charge, which remains unchanged.
1.3.1 Group Income Statement - Restatement of Comparative Information
2022 year-end restatement Prior
period
restatement
Income Statement (extract) $m
Continuing operations
Depletion charge (7.2)
Gross profit (7.2)
Loss before taxation from continuing operations (7.2)
Tax charge 2.8
Loss from continuing operations (4.4)
For the six months ended 30 June 2023:
Statement of profit or loss (extract) Note Six months ended Prior Six months
30 June period restatement ended
2023 $m 30 June
As originally presented 2023
$m (restated)
$m
Continuing operations
Depletion charge 2.2 (55.1) (4.7) (59.8)
Gross profit 46.0 (4.7) 41.3
Loss before taxation from continuing operations (32.3) (4.7) (37.0)
Tax charge 5.1 (19.1) 1.9 (17.2)
Loss from continuing operations (51.4) (2.8) (54.2)
Section 1 - Basis of Preparation
1.3 Restatement of Comparative Information (continued)
1.3.2 Group Balance Sheet - Restatement of Comparative Information
30 June Prior 30 June
As at 30 June 2023: 2023 period 2023
As originally presented restatement (restated)
Balance Sheet (extract) Note $m $m $m
Non-current assets
Property, plant & equipment - development/producing assets 2.3 240.5 17.3 257.8
Deferred tax assets 5.2 8.5 2.4 10.9
249.0 19.7 268.7
Current liabilities
Trade and other payables (85.1) (29.2) (114.3)
Non-current liabilities
Deferred tax liabilities 5.2 (16.1) 2.3 (13.8)
(101.2) (26.9) (128.1)
Net assets 595.8 (7.2) 588.6
Equity
Retained earnings 638.9 (7.2) 631.7
595.8 (7.2) 588.6
Total equity
1.3.3 Group Statement of Cash Flows - Restatement of Comparative
Information
For the six months ended 30 June 2023:
Six months ended Prior Six months ended
Statement of cash flows (extract) 30 June period 30 June
2023 restatement 2023
As originally $m (restated)
presented $m
$m
Cash flows from operating activities:
Loss before taxation from continuing operations (32.3) (4.7) (37.0)
Adjustments for non-cash income and expense and non-operating cash flows:
Depreciation, depletion and amortisation charges 59.2 4.7 63.9
(15.5) - (15.5)
Net cash flows used in operating activities
Section 2 - Oil and Gas Assets and Operations
2.1 Gross Profit: Revenue and Cost of Sales
Six months Six months ended Year
ended 30 June ended
30 June 2023 31 December
2024 2023
$m $m $m
Oil sales 61.4 76.6 159.1
Gas sales 18.9 21.7 40.8
Revenue from oil and gas sales 80.3 98.3 199.9
Royalty income 0.5 0.5 1.1
Total revenue 80.8 98.8 201.0
Other Income - Tax entitlement volumes 23.0 29.8 54.1
Other income 23.0 29.8 54.1
Production costs and inventory movements (22.5) (27.5) (59.6)
Cost of sales (22.5) (27.5) (59.6)
Depletion (note 2.3) (37.3) (59.8) (120.4)
Gross profit 44.0 41.3 75.1
Oil and gas revenue in Egypt for the half year ended 30 June 2024 was $80.3m
(30 June 2023: $98.3m; 31 December 2023: $199.9m), from net entitlement
volumes of 1.9 mmboe (30 June 2023: 2.4 mmboe; 31 December 2023: 4.4 mmboe).
Oil sales price realised averaged $78.6/boe (30 June 2023: $78.6/boe; 31
December 2023: $81.2/boe) and gas sales price at $3.0/mscf (30 June 2023:
$2.9/mscf; 31 December 2023; $2.9/mscf). Other income represents additional
entitlement to cover tax due which is paid on Capricorn's behalf by EGPC; see
section 5.
Cost of sales over the period were $22.5m (30 June 2023: $27.5m; 31 December
2023: $59.6m), or $4.7/boe (30 June 2023: $4.8/boe; 31 December 2023:
$5.4/boe) (on a WI basis).
Section 2 - Oil and Gas Assets and Operations (continued)
2.2 Intangible Exploration/Appraisal Assets
Egypt Mexico Other Total
Countries
$m $m $m $m
Cost
At 1 January 2023 - 1.0 - 1.0
Additions 3.0 14.6 0.8 18.4
Unsuccessful exploration costs (2.2) (15.6) (0.8) (18.6)
At 30 June 2023 (restated) 0.8 - - 0.8
Additions 2.1 0.4 1.1 3.6
Unsuccessful exploration costs (0.4) (0.4) (1.1) (1.9)
2.5 - - 2.5
At 31 December 2023
Additions - - 1.8 1.8
Unsuccessful exploration costs (2.5) - (1.8) (4.3)
- - - -
At 30 June 2024
Net book value
At 30 June 2023 0.8 - - 0.8
At 31 December 2023 2.5 - - 2.5
- - - -
At 30 June 2024
Other countries additions and unsuccessful exploration costs of $1.8m relate
to further estimated abandonment costs for the historic Tybalt well.
Section 2 - Oil and Gas Assets and Operations (continued)
2.3 Property, Plant & Equipment - Development/Producing Assets
Egypt
(restated)
$m
Cost
At 1 January 2023 480.9
Additions 41.8
At 30 June 2023 522.7
Additions 49.5
572.2
At 31 December 2023
Additions 31.5
At 30 June 2024 603.7
Depletion, amortisation and impairment
At 1 January 2023 205.1
Depletion and amortisation charges 59.8
At 30 June 2023 264.9
Depletion 60.6
Impairment 29.1
354.6
At 31 December 2023
Depletion 37.3
At 30 June 2023 391.9
Net book value
At 30 June 2023 257.8
At 31 December 2023 217.6
211.8
At 30 June 2024
Additions on development activity in the period were funded through cash and
working capital.
In Egypt, depletion of $37.3m (30 June 2023 (restated): $59.8m, 31 December
2023: $120.4m) was charged to the Income Statement based on entitlement
interest production. The costs for depletion include future capital
costs-to-complete consistent with the life-of-field reserves estimates used in
the calculation.
The Group reviewed its producing assets in Egypt for indicators of impairment,
but no indicators were identified, and no impairment tests have therefore been
performed at the half-year.
Section 2 - Oil and Gas Assets and Operations (continued)
2.4 Other Property, Plant & Equipment and Intangible assets
Carbon Intangible Property, plant Right-of-use Total
credits assets & equipment assets
$m $m $m $m $m
Cost
At 1 January 2023 6.8 41.3 10.8 12.8 71.7
Additions - 0.9 0.2 15.5 16.6
Foreign exchange - 2.9 0.2 1.3 4.4
At 30 June 2023 6.8 45.1 11.2 29.6 92.7
Additions - 1.0 0.1 - 1.1
Disposals - (32.8) (11.2) (11.7) (55.7)
Foreign exchange - (1.1) 0.2 (0.5) (1.4)
6.8 12.2 0.3 17.4 36.7
At 31 December 2023
Disposals - - - (9.6) (9.6)
Foreign exchange - (0.1) - (0.1) (0.2)
6.8 12.1 0.3 7.7 26.9
At 30 June 2024
Depreciation and amortisation
At 1 January 2023 - 38.7 10.6 8.3 57.6
Charge for the period - 1.9 0.1 1.0 3.0
Foreign exchange - 2.3 0.5 0.9 3.7
At 30 June 2023 - 42.9 11.2 10.2 64.3
Charge for the period - 2.0 0.1 1.6 3.7
Disposals - (32.7) (11.2) (0.7) (44.6)
Foreign exchange - (0.6) (0.1) (0.5) (1.2)
At 31 December 2023 - 11.6 - 10.6 22.2
Charge for the period - 0.4 0.1 0.4 0.9
Disposals - - - (9.7) (9.7)
Foreign exchange - (0.1) - - (0.1)
At 30 June 2024 - 11.9 0.1 1.3 13.3
Net book value
At 30 June 2023 6.8 2.2 - 19.4 28.4
At 31 December 2023 6.8 0.6 0.3 6.8 14.5
6.8 0.2 0.2 6.4 13.6
At 30 June 2024
2.5 Capital Commitments At At At
30 June 30 June 31 December
2024 2023 2023
Oil and gas expenditure: $m $m $m
Intangible exploration/appraisal assets 6.4 12.6 7.9
Property, plant & equipment - development/producing assets 24.4 - -
30.8 12.6 7.9
Contracted for
Capital commitments represent Capricorn's share of obligations relating to its
interests in joint operations. These commitments include Capricorn's share of
the capital commitments of the joint operations themselves.
Capital commitments of $6.4m (30 June 2023: $12.6m, 31 December 2023: $7.9m)
for intangible exploration/appraisal assets relate to planned exploration
wells in Egypt. Capital commitments of $24.4m (30 June 2023: $nil, 31 December
2023: $nil) for property, plant & equipment - development/producing assets
relate to planned expenditure in Egypt in line with approved budgets.
Section 3 - Working Capital, Financial Instruments and Long-Term Liabilities
3.1 Cash and Cash Equivalents
At At At
30 June 30 June 31 December
2024 2023 2023
$m $m $m
Cash at bank 7.6 38.3 12.8
Bank deposits less than three months - 40.0 20.0
Money market funds 140.7 222.7 156.7
148.3 301.0 189.5
At 30 June 2024, $55.2m (30 June 2023: $35.1m, 31 December 2023: $10.6m) of
cash and cash equivalents are restricted and not available for immediate
ordinary business use. Of this restricted amount of cash and cash equivalents
$54.3m (30 June 2023: $33.9m, 31 December 2023: $5.6m) is held in Egypt.
Restricted cash in Egypt may be used to fund ongoing costs of the Egypt
operations and local administration costs.
3.2 Loans and Borrowings
Reconciliation of opening and closing liabilities to cash flow movements: At At At
30 June 30 June 31 December
2024 2023 2023
$m $m $m
Opening liabilities 111.8 158.6 158.6
Loan repayments in the period disclosed in the Cash Flow Statement:
Senior Debt Facility (5.8) (33.5) (48.3)
(5.8) (33.5) (48.3)
Non-cash movements:
Accrued debt facility interest - (1.1) 0.6
Amortisation of debt arrangement fees 0.5 0.5 0.9
Closing liabilities 106.5 124.5 111.8
12.4 20.3 15.4
Amounts due less than one year
Amounts due greater than one year 94.1 104.2 96.4
Closing liabilities 106.5 124.5 111.8
Section 3 - Working Capital, Financial Instruments and Long-Term Liabilities
(continued)
3.3 Lease Liabilities
Reconciliation of opening and closing liabilities to cash flow movements: At At At
30 June 30 June 31 December
2024 2023 2023
$m $m $m
Opening liabilities 7.4 4.3 4.3
Lease payments in the period disclosed in the Cash Flow Statement as financing
cash flows:
Total lease payments (0.4) (1.5) (2.2)
(0.4) (1.5) (2.2)
Non-cash movements:
Lease additions - 15.5 15.5
Lease termination - - (1.6)
Lease interest charges 0.2 0.2 0.5
Lease disposal - - (9.5)
Foreign exchange (0.1) 0.7 0.4
Closing liabilities 7.1 19.2 7.4
1.3 1.1 1.0
Amounts due less than one year
Amounts due greater than one year 5.8 18.1 6.4
Closing liabilities 7.1 19.2 7.4
As at 30 June 2024 the balance of $7.1m wholly relates to the office lease
costs in the UK and Egypt. Amortisation charges on the Right-of-Use assets are
disclosed in note 4.1.
For the six months ended 30 June 2024 the Group did not incur any further
fixed or variable lease costs.
3.4 Trade and Other Receivables
At At At
30 June 30 June 31 December
2024 2023 2023
$m $m $m
Trade receivables 155.4 144.2 168.5
Other receivables 32.9 13.4 11.0
Prepayments 1.4 4.2 1.5
Joint operation receivables 3.0 35.2 5.0
192.7 197.0 186.0
Trade receivables relate to the Group's producing assets in Egypt. The
receivables position is net of expected credit loss adjustments of $5.0m.
Discussions are ongoing with EGPC and the operator to manage the receivables
position and capital expenditure outflows in Egypt are being managed with the
partner to match incoming receipts.
Other receivables of $32.9m include an India tax refund due of $5.9m and
remaining deferred consideration receivable from Waldorf of $19.9m, expected
in January 2025. The remaining balance in other receivables include VAT
recoverable in the UK and Mexico.
Joint operation receivables include Capricorn's working interest share of the
receivables relating to joint operations and amounts recoverable from partners
in joint operations.
Section 3 - Working Capital, Financial Instruments and Long-Term Liabilities
(continued)
3.4 Trade and Other Receivables (continued)
Reconciliation of opening and closing receivables to operating cash flow 30 June 30 June 31 December 2023
movements:
2024 2023 $m
$m $m
Opening trade and other receivables 186.0 142.5 142.5
Closing trade and other receivables (192.7) (197.0) (186.0)
Increase in trade and other receivables (6.7) (54.5) (43.5)
Foreign exchange (0.8) (0.2) (1.2)
Decrease in joint operation receivables relating to investing activities for 1.5 27.2 (18.5)
expenditure on oil and gas assets
Increase/(decrease) in other debtors relating to investing activities 19.9 (5.3) (4.2)
Decrease in prepayments relating to investing activities - (1.9) (2.2)
Decrease in prepayments and other receivables relating to financing activities (0.6) (2.0) (1.4)
Trade and other receivables (received)/recognised on earnout settlement (2.0) - 2.0
Other receivable recognised on India tax refund 5.9 - -
Increase in trade and other receivables movement recorded in operating cash 17.2 (36.7) (69.0)
flows
3.5 Financial Assets and Liabilities at Fair Value Through Profit
and Loss
At At At
30 June 30 June 31 December
2024 2023 2023
Financial Assets $m $m $m
Non-current assets
Financial assets at fair value through profit or loss - earnout consideration - 30.1 -
Financial assets at fair value through profit or loss - non-listed investment - 6.6 -
fund
- 36.7 -
Current assets
Financial assets at fair value through profit or loss - earnout consideration - 38.0 -
- 38.0 -
Financial Liabilities At At At
30 June 30 June 31 December
2024 2023 2023
$m $m $m
Non-current liabilities
Financial liabilities at fair value through profit or loss - deferred - (16.9) (19.8)
consideration on business combinations
Current liabilities
Financial liabilities at fair value through profit or loss - deferred (24.3) (23.3) (19.8)
consideration on business combinations
Deferred consideration, based on future oil prices, is due to Shell following
the Egypt business combination in 2021.
Section 3 - Working Capital, Financial Instruments and Long-Term Liabilities
(continued)
3.5 Financial Assets and Liabilities at Fair Value Through Profit
and Loss (continued)
Fair Value measurements
At At At
30 June 30 June 31 December
2024 2023 2023
$m $m $m
Assets measured at fair value - Level 2
Financial assets at fair value through profit or loss
Earnout consideration - 68.1 -
Non-listed investment fund - 6.6 -
Liabilities measured at fair value - Level 2
Financial liabilities at fair value through profit or loss
Deferred consideration on business combinations (24.3) (38.5) (43.8)
Liabilities measured at fair value - Level 3
Financial liabilities at fair value through profit or loss
Deferred consideration on business combinations - (1.7) (1.0)
(24.3) 34.5 (44.8)
3.6 Trade and Other Payables
At At At
30 June 30 June 31 December
2024 2023 2023
(restated)
$m $m $m
Trade payables 0.9 0.2 0.3
Other taxation and social security 0.4 2.2 0.5
Accruals and other payables 5.3 9.9 7.9
Joint operation payables 92.1 102.0 73.3
98.7 114.3 82.0
Joint operation payables include Capricorn's share of the trade and other
payables of the joint operations in which the Group participates.
The reduction in accruals and other payables from the year end reflects the
reduction in bonus and employer national insurance accruals.
Reconciliation of opening and closing payables to operating cash flow 30 June 30 June 31 December 2023
movements:
2024 2023 $m
$m (restated)
$m
Opening trade and other payables (82.0) (84.9) (84.9)
Closing trade and other payables 98.7 114.3 82.0
Increase/(Decrease) in trade and other payables 16.7 29.4 (2.9)
Foreign exchange (1.2) 1.5 1.6
(Increase)/Decrease in trade payables relating to investing activities (1.2) 0.7 0.7
Increase in joint operation payables relating to investing (15.8) (31.6) (38.1)
activities
Increase in accruals relating to other financing activities - repurchase of (0.4) (0.8) -
shares
Increase in accruals relating to other financing activities - cost of shares (0.3) - -
purchased
Decrease in accruals and other payables relating to financing activities - 0.2 0.1
Decrease in trade and other payables recorded in operating cash flows (2.2) (0.6) (38.6)
Section 4 - Income Statement Analysis
4.1 Segmental Analysis
Operating segments
Capricorn's assets are managed by the Board on a geographical basis, with each
country forming an operating segment. The Board monitors each segment
separately for the purposes of making decisions about resource allocation and
performance assessment.
At 30 June 2024, Capricorn identified two reporting segments: Egypt and Other
countries. The Other countries operating segment includes costs associated
with exploration interests in Mauritania, Mexico, UK North Sea and Suriname.
In 2023, Mexico was disclosed as a separate segment.
The Other Capricorn Energy Group segment exists to accumulate the activities
and results of the Parent and other holding companies together with other
unallocated expenditure and net assets/liabilities including amounts of a
corporate nature not specifically attributable to any of the business units.
Non-current assets as analysed on a segmental basis consist of: intangible
exploration/appraisal assets; property, plant & equipment -
development/producing assets; goodwill; and other property, plant &
equipment and intangible assets.
Section 4 - Income Statement Analysis (continued)
4.1 Segmental Analysis (continued)
The segment results for the six months ended 30 June 2024 are as follows:
Egypt Other countries Other Capricorn Energy Group Total
$m $m $m $m
Revenue 80.3 - 0.5 80.8
Other income 23.0 - - 23.0
Cost of sales (22.5) - - (22.5)
Depletion and amortisation charges (37.3) - - (37.3)
Gross profit 43.5 - 0.5 44.0
Unsuccessful exploration costs (2.5) (1.8) - (4.3)
General exploration costs (1.4) - - (1.4)
Other operating income - - 0.6 0.6
Depreciation - purchased assets - - (0.1) (0.1)
Amortisation - right-of-use assets (0.1) - (0.3) (0.4)
Amortisation of other intangible assets - (0.2) (0.2) (0.4)
Other administrative expenses - (0.9) (10.2) (11.1)
Operating profit/(loss) 39.5 (2.9) (9.7) 26.9
Fair value loss on deferred consideration (4.5) - - (4.5)
Interest income 0.6 - 4.4 5.0
Interest expense (6.7) - (0.3) (7.0)
Other net finance (expense)/income (3.9) (0.5) 0.4 (4.0)
Profit/(Loss) before taxation from continuing operations 25.0 (3.4) (5.2) 16.4
Tax (charge)/credit (19.8) - 5.9 (13.9)
Profit/(Loss) for the period from continuing operations 5.2 (3.4) 0.7 2.5
- - (0.7) (0.7)
Loss from discontinued operations
Profit/(Loss) attributable to equity holders of the Parent 5.2 (3.4) - 1.8
Balances at 30 June 2024:
Capital expenditure 31.5 1.8 - 33.3
Total assets 454.6 33.3 114.8 602.7
Total liabilities 230.5 11.2 10.8 252.5
Non-current assets 233.5 7.0 12.7 253.2
Section 4 - Income Statement Analysis (continued)
4.1 Segmental Analysis (continued)
The segment results for the six months ended 30 June 2023 were as follows:
Egypt Mexico Other countries Other Capricorn Energy Group Total
(restated) (restated)
$m $m $m $m $m
Revenue 98.3 - - 0.5 98.8
Other income 29.8 - - - 29.8
Cost of sales (27.5) - - - (27.5)
Depletion and amortisation charges (59.8) - - - (59.8)
Gross profit 40.8 - - 0.5 41.3
Pre-award costs (0.6) - - (0.4) (1.0)
Unsuccessful exploration costs (2.2) (15.6) (0.8) - (18.6)
General exploration costs (4.4) (6.0) (5.4) - (15.8)
Other operating income - - - 0.4 0.4
Depreciation - purchased assets - - - (0.2) (0.2)
Amortisation - right-of-use assets (0.2) - - (1.2) (1.4)
Amortisation of other intangible assets - - - (2.5) (2.5)
Other administrative expenses (0.6) (1.0) - (35.6) (37.2)
Operating profit/(loss) 32.8 (22.6) (6.2) (39.0) (35.0)
Fair value loss on deferred consideration (3.4) - - - (3.4)
Gain on fair value of financial asset - - - - -
Interest income 0.6 1.4 0.1 14.2 16.3
Interest expense (8.1) - - (0.1) (8.2)
Other net finance (expense)/income (0.6) 1.0 (0.6) (6.5) (6.7)
Profit/(Loss) before taxation from continuing operations 21.3 (20.2) (6.7) (31.4) (37.0)
Tax charge (17.2) - - - (17.2)
Profit/(Loss) for the period from continuing operations 4.1 (20.2) (6.7) (31.4) (54.2)
- - - (10.8) (10.8)
Loss from discontinued operations
Profit/(Loss) attributable to equity holders of the Parent 4.1 (20.2) (6.7) (42.2) (65.0)
Balances at 30 June 2023:
Capital expenditure 44.7 14.6 0.8 3.8 63.9
Total assets 520.0 12.6 68.6 303.8 905.0
Total liabilities 273.1 9.9 5.0 28.4 316.4
Non-current assets 285.4 0.3 - 26.7 312.4
Section 4 - Income Statement Analysis (continued)
4.1 Segmental Analysis (continued)
The segment results for the year ended 31 December 2023 were as follows:
Egypt Mexico Other countries Other Capricorn Total
Energy
Group
$m $m $m $m $m
Revenue 199.9 - - 1.1 201.0
Other income 54.1 - - - 54.1
Cost of sales (59.6) - - - (59.6)
Depletion and amortisation (120.4) - - - (120.4)
Gross profit 74.0 - - 1.1 75.1
Pre-award costs (0.7) - - (0.4) (1.1)
General exploration costs (10.4) (10.3) (6.2) - (26.9)
Unsuccessful exploration costs (2.6) (16.0) (1.9) - (20.5)
Impairment of property, plant & equipment - development/producing assets (29.1) - - - (29.1)
Impairment of goodwill (14.6) - - - (14.6)
Expected credit loss adjustment on revenue receivable (9.0) - - - (9.0)
Other operating income - - - 0.6 0.6
Depreciation - purchased assets - - - (0.2) (0.2)
Amortisation - right-of-use assets (0.3) - - (2.3) (2.6)
Amortisation of other intangible assets - (0.3) - (3.6) (3.9)
Other administrative expenses (1.9) (2.9) (0.1) (50.3) (55.2)
Operating profit/(loss) 5.4 (29.5) (8.2) (55.1) (87.4)
Fair value loss on deferred consideration (8.0) - - - (8.0)
Gain on fair value of financial asset - - - 0.8 0.8
Impairment of an asset held-for-sale - - - (4.0) (4.0)
Interest income 0.4 - 0.1 19.9 20.4
Interest expense (15.0) - - (0.5) (15.5)
Other net finance (expense)/income (2.7) 1.7 (0.5) (6.9) (8.4)
Loss before taxation from continuing operations (19.9) (27.8) (8.6) (45.8) (102.1)
Tax charge (40.5) - - - (40.5)
Loss for the year from continuing operations (60.4) (27.8) (8.6) (45.8) (142.6)
Loss on disposal of discontinued operations - - - (1.4) (1.4)
(Loss)/Profit attributable to equity holders of the Parent (60.4) (27.8) (8.6) (47.2) (144.0)
Balances at 31 December 2023:
Capital expenditure 96.4 15.0 1.9 1.9 115.2
Total assets 426.8 8.6 29.8 202.4 667.6
Total liabilities 237.2 5.2 5.9 12.8 261.1
Non-current assets 232.0 0.2 27.6 13.2 273.0
Section 4 - Income Statement Analysis (continued)
4.2 Administrative and Other Expenses
Six months ended Six months ended Year
30 June 30 June ended
2024 2023 31 December
2023
$m $m $m
Administrative expenses 12.0 34.4 55.0
Other expenses - corporate transactions - 6.9 6.9
12.0 41.3 61.9
4.3 Finance Income
Six months ended Six months ended Year
30 June 30 June ended
2024 2023 31 December
2023
$m $m $m
Bank and other interest receivable 5.0 16.3 21.8
5.0 16.3 21.8
4.4 Finance Costs
Six months ended Six months ended Year
30 June 30 June ended
2024 2023 31 December
2023
$m $m $m
Loan interest 6.7 8.0 15.0
Facility fee amortisation 0.5 0.5 0.9
Other finance charges and unwind of discount 1.8 0.6 1.7
Exchange loss 2.0 5.8 7.7
11.0 14.9 25.3
Section 4 - Income Statement Analysis (continued)
4.5 Earnings per Ordinary Share
Basic and diluted earnings per share are calculated using the following
measures of (loss)/profit:
Six months ended Six months ended Year
30 June 30 June ended
2024 2023 31 December
2023
$m $m $m
Profit/(Loss) and diluted loss after taxation from continuing operations 2.5 (54.2) (142.6)
Profit/(Loss) and diluted loss attributable to equity holders of the Parent 1.8 (65.0) (144.0)
The following reflects the share data used in the basic and diluted earnings
per share computations:
Six months ended Six months ended Year
30 June 30 June ended
2024 2023 31 December
2023
'000 '000 '000
Weighted average number of shares 88,252 305,875 196,128
Less weighted average shares held by the ESOP and SIP Trusts (1,104) (4,250) (2,777)
87,148 301,625 193,351
Basic and diluted weighted average number of shares
Potentially dilutive effect of shares issuable under employee share plans:
LTIP awards 1,584 - -
Approved and unapproved plans 9 - -
Employee share awards 93 - -
Deferred bonus 37 - -
88,871 301,625 193,351
Diluted weighted average number of shares
Potentially issuable shares not included above:
LTIP awards 6,349 - -
Approved and unapproved plans 85 - -
Employee share awards 626 - -
7,060 - -
Number potentially issuable shares
The share repurchase programme and share consolidation reduced weighted number
of shares in 2024.
Section 5 - Taxation
5.1 Tax Charge on Loss for the Period
Six months ended Six months ended Year
30 June 30 June ended
2024 2023 31 December
2023
$m $m $m
Current tax charge:
Overseas corporation tax - Egypt 23.0 29.9 54.1
Overseas corporation tax refund - India (5.9) - -
Total current tax charge on loss from continuing operations 17.1 29.9 54.1
Deferred tax credit:
Deferred tax credit on intangible/tangible assets - Egypt (3.2) (12.7) (12.3)
Deferred tax charge on non-current assets - Egypt - prior year adjustment - - (1.4)
Total deferred tax credit on loss from continuing operations (3.2) (12.7) (13.7)
Total tax charge on loss from continuing operations 13.9 17.2 40.5
UK deferred tax credit - (4.1) (4.1)
Total deferred tax credit on profit from discontinued operations - (4.1) (4.1)
5.2 Deferred Tax Assets and Liabilities
Reconciliation of movement in deferred tax assets/(liabilities):
Temporary difference
in respect of
non-current asset
$m
Deferred tax assets
At 1 January 2023 8.7
Deferred tax charge through the Income Statement 2.2
At 30 June 2023 10.9
Deferred tax credit through the Income Statement (3.3)
At 31 December 2023 7.6
Deferred tax credit through the Income Statement 2.4
At 30 June 2024 10.0
Section 5 - Taxation (continued)
5.2 Deferred Tax Assets and Liabilities (continued)
Temporary differences in respect of:
Intangible/tangible assets Losses Other temporary differences Total
(restated) (restated) (restated)
$m $m $m $m
Deferred tax liabilities
At 1 January 2023 (24.3) 9.1 (13.2) (28.4)
Deferred tax credit through the Income Statement - continuing operations 10.5 - - 10.5
Deferred tax (charge)/credit through the Income Statement - discontinued - (9.1) 13.2 4.1
operations (note 6.1)
At 30 June 2023 (13.8) - - (13.8)
Deferred tax credit through the Income Statement - continuing operations 4.2 - - 4.2
At 31 December 2023 (9.6) - - (9.6)
Deferred tax credit through the Income Statement - continuing operations 0.9 - - 0.9
At 30 June 2024 (8.7) - - (8.7)
Deferred tax assets and liabilities in Egypt:
At At At
30 June 30 June 31 December
2024 2023 2023
(restated)
$m $m $m
Deferred tax assets 10.0 10.9 7.6
Deferred tax liabilities (8.7) (13.8) (9.6)
1.3 (2.9) (2.0)
Section 6 - Discontinued Operations
6.1 Loss from Discontinued Operations
Sale of Capricorn's interest in the Catcher and Kraken Producing Assets ("UK
Producing Assets")
On 8 March 2021, Capricorn agreed to sell its interests in the UK Catcher and
Kraken producing assets to Waldorf Production UK PLC.
Consideration under the agreement was an initial cash consideration of
$425.0m, subject to adjustments for working capital and other customary
interim period adjustments, further purchaser bonds of $30.0m, sold shortly
after completion, and additional contingent consideration ("earnout
consideration") from 2021 to the end of 2025 dependent on oil prices and
minimum production levels being met. 2021 earnout consideration of $75.7m,
plus interest, was settled in June 2022. 2022 earnout consideration of
$134.4m, plus interest, was settled in March 2023.
On 18 December 2023, the Company entered into a settlement agreement with
Waldorf for the full and final settlement of the remaining earnout
consideration due. Under the agreement, the Company received an initial
payment of $48.0m in December 2023, with a further $2.0m received in March
2024. In addition, the Company will receive Waldorf's 25% non-operated WI in
the Columbus gas field, subject to approval from the North Sea Transition
Agency ("NSTA"). As at 30 June 2024, a balance of $7.0m has been recognised as
a long-term receivable relating to the transfer of the Columbus asset, being
the cash alternative due should approval not be received from the NSTA. A
final payment of $22.5m is also due in January 2025.
The financial performance of the discontinued operations is expanded in the
tables below for the periods ended 30 June 2024, 30 June 2023 and 31 December
2023 respectively.
Six months Six months Year
ended ended ended
30 June 2024 30 June 31 December
$m 2023 2023
$m $m
Cost of sales - 4.3 4.3
Operating Profit - 4.3 4.3
Loss on financial asset at fair value through profit or loss - earnout - (21.5) (10.4)
consideration
Loss on disposal of a financial asset - (1.7)
Expected credit loss (0.7) - -
Finance income - 2.3 2.3
Loss before tax from discontinued operations (0.7) (14.9) (5.5)
Taxation - 4.1 4.1
(0.7) (10.8) (1.4)
Loss after tax from discontinued operations
Earnings per Share for Loss from Discontinued Operations $ $
$
Loss per ordinary share - basic and diluted ($) (0.01) (0.04) (0.01)
6.2 Cash Flow Information for Discontinued Operations
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2024 2023 2023
$m $m $m
Net cash flows from operating activities - 4.3 4.3
Net cash flows from investing activities 2.0 136.7 184.7
Net increase in cash and cash equivalents 2.0 141.0 189.0
Section 6 - Discontinued Operations
6.3 Discontinued Operations - Senegal Contingent Asset
In December 2020, Capricorn disposed of its entire 40% working interest in its
Senegal exploration and development assets. Further deferred consideration of
up to $50.0m is due, dependant on the average Brent oil price during the first
six months of production, which commenced on 10 June 2024, and on the asset
achieving 30 days of continuous production. Assuming average Brent oil prices
remain above $60/bbl during the first six months of production, Capricorn will
receive $50.0m. In accordance with IFRS 15, no amount was recognised at the
balance sheet date as there was no reasonable certainty that any revenue
recorded would not reverse in future periods.
6.4 Discontinued Operations - Senegal Contingent Liability
On 14 November 2023, Capricorn received notification that Woodside Energy
("Woodside") had received a notice from the Senegalese Tax Authority. The
notice from the Senegalese Tax Authority states that:
‒ Senegalese registration duty ($29.0m including interest and penalties)
should have been paid on the transfer (in December 2020) by Capricorn to
Woodside of its PSC interests offshore Senegal; and
‒ Senegalese real estate capital gains tax ($14.5m including interest and
penalties) should have been withheld by Woodside from the price paid to
Capricorn in respect of the sale of those PSC interests.
Under the terms of the sale agreement between Capricorn and Woodside,
Capricorn is responsible for any registration duty and for any capital gains
tax arising in connection with the sale of the PSC interests.
Capricorn's analysis remains that no Senegalese registration duty or capital
gains tax is payable, based on analysis at the time of the transaction.
Capricorn will continue to vigorously defend its position on this matter,
including exercising rights under the sale agreement to participate in the
defence of any such claim.
Section 7 - Share Capital
7.1 Called-Up Share Capital
Number 21/13p ordinary '000 Number 490/143p ordinary Number 735/143p ordinary Number 799/122p ordinary 490/143p ordinary 735/143p ordinary 799/122p ordinary
'000 '000 '000 21/13p ordinary $m $m $m
$m
Allotted, issued and fully paid ordinary shares
At 1 January 2023 315,702 - - - 8.0 - - -
Consolidation of shares (315,702) 148,534 - - (8.0) 8.0 - -
Share re-purchase - (4,494) - - - (0.2) - -
At 30 June 2023 - 144,040 - - - 7.8 - -
Share re-purchase - (1,203) - - - (0.1) - -
Consolidation of shares - (142,837) 95,225 - - (7.7) 7.7 -
Share re-purchase - - (1,447) - - - (0.1) -
At 31 December 2023 - - 93,778 - - - 7.6 -
Share re-purchase pre consolidation - - (1,840) - - - (0.2) -
Consolidation of shares - - (91,938) 72,154 - - (7.4) 7.4
Share re-purchase post consolidation - - - (280) - - - -
- - - 71,874 - - - 7.4
At 30 June 2024
Share premium $m
At 1 January 2023 495.4
Arising on shares issued for employee share options 0.8
Share premium cancelled (495.4)
At 30 June 2023 and 0.8
31 December 2023
Arising on shares issued for employee share options 0.1
0.9
At 30 June 2024
A share consolidation completed on 24 May 2024 where existing ordinary shares
of 91,937,909 ordinary shares of 735/143 pence each were replaced with
72,153,802 ordinary shares of 799/122 pence each.
7.2 Return of Cash to Shareholders
On 28 March 2024, Capricorn announced the proposal to return approximately
$50m to shareholders via a special dividend.
The return was paid to shareholders on 7 June 2024. The return of cash to
shareholders of 43 pence per eligible ordinary share totalled £39.3m. The
total return to shareholders, after exchange differences from the date of
conversion from $ to £ and associated costs, was $50.1m.
7.3 Share Buyback
In May 2023, the Company commenced a share repurchase programme of its
ordinary shares of up to $25m. In 2023, the Company repurchased 7,143,720
shares. The value of shares purchased in 2023 was £14.2m ($16.9m). In the
first half of 2024, for the period ended 30 June 2024, Capricorn repurchased
2,119,888 ordinary shares, totalling £2.9m ($3.7m).
Glossary
AESW - Alam El Shawish West
Bbl - Barrel of oil
BED - Badr El Din concession
Boe - Barrels of Oil Equivalent
Boepd - Barrels of Oil Equivalent Per Day
Bopd - Barrels of Oil Per Day
EGP - Egyptian Pound
GAAP - Generally Accepted Accounting Principles
G&A - General and administrative expenses
JV - Joint Venture
M - Million
MMbbls - Million barrels of oil
Mscf - Thousand standard cubic feet
NEAG - North East Abu Gharadig
$ - US dollar
WI - Working Interest
YTD - Year to date
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