REG - Indus Gas Limited - Half-year Report
20/12/2024 07:00
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RNS Number : 8265Q Indus Gas Limited 20 December 2024
Indus Gas Limited and its subsidiaries
("Indus" or the "Company")
Unaudited Condensed Consolidated Interim Financial
Statements for the six-month period ended 30 September 2024
Indus Gas Limited (AIM: INDI), an oil & gas exploration and development
company, is pleased to report its interim results for the six-month period
ending 30 September 2024.
Consolidated reported adjusted revenues, operating profit and profit before
tax for the interim period ended 30 September 2024 were US$ 2.34m (US$ 26.18m
interim 2023), US$ 1.24m (US$ 22.61m interim 2023) and US$ 1.24m (US$ 22.63m
interim 2023), respectively.
The Company has continued to make provision for a notional deferred tax
liability of US$ 0.61m (US$9.88m interim 2023), in accordance with IFRS
requirements.
Production is from the SGL field as well as the SSF & SSG fields with all
gas production from the three fields currently being sold to GAIL. As
previously announced, GAIL has been off taking a lesser quantity of Gas since
February 2024 on account of maintenance of the Gas Turbine of the ultimate
Customer.
As of today's date, the Company continues to see disruption to the quantity of
gas supplied to its ultimate customer's power plant due to ongoing maintenance
of the turbine at the plant. The Company will announce the PSC extension when
granted. Due to the ongoing disruption of gas supply, the Company will seek
further external funding and/or shareholder funding in near future if
required.
As per the revised Domestic gas pricing Guidelines, sales gas price shall be
10 pct of monthly average of Indian crude basket as notified by PPAC on a
monthly basis from 8th April 2023. The Gas sale price in the period ended
September 2024 ranged from highest of US$ 8.90 per MMBTU to the lowest of US$
7.85 per MMBTU.
Jonathan Keeling, Chairman of Indus Gas, commented:
"The Group is following up with GAIL through the operator for an increase in
Gas off take."
For further information, please contact:
Indus Gas Limited
Jonathan Keeling +44 (0) 20 81333375
Executive Chairman
Strand Hanson Limited (Nominated & Financial Adviser and Broker)
Ritchie Balmer, Rory Murphy +44 (0) 20 7409 3494
Unaudited Condensed Consolidated Statement of Financial Position
(All amounts in US$, unless otherwise stated)
Notes As at As at As at
30 September 2024 30 September 2023 31 March 2024
(Unaudited) (Unaudited) (Audited)
ASSETS
Non-current assets
Property, plant and equipment 6 1,302,111,915 1,257,875,924 1,291,623,066
Tax assets 783,134 1,427,667 763,236
Other assets 8,722 7,886 9,132
Total non-current assets 1,302,903,771 1,259,311,477 1,292,395,434
Current assets
Inventories 7,332,245 7,841,685 8,944,689
Trade and other receivables 310,041 5,689,457 621,664
Receivable from related party 109,268,500 106,832,686 107,305,566
Cash and cash equivalents 218,271 4,796,883 2,069,244
Total current assets 117,129,058 125,160,711 118,941,163
Total assets 1,420,032,829 1,384,472,188 1,411,336,597
LIABILITIES AND EQUITY
Shareholders' equity
Share capital 3,619,443 3,619,443 3,619,443
Additional paid-in capital 46,733,689 46,733,689 46,733,689
Currency translation reserve (9,313,782) (9,313,782) (9,313,782)
Merger reserve 19,570,288 19,570,288 19,570,288
Retained earnings 303,657,986 295,579,974 303,018,938
Total shareholders' equity 364,267,624 356,189,612 363,628,576
(The accompanying notes are an integral part of these Unaudited Condensed
Consolidated Interim Financial Statements)
Unaudited Condensed Consolidated Statement of Comprehensive Income
(All amounts in US $, unless otherwise stated)
Notes Six months ended Six months ended
30 September 2024 30 September 2023
Unaudited Unaudited
Revenue 2,336,556 26,180,911
Cost of sales (651,992) (3,184,107)
Administrative expenses (440,812) (385,179)
Profit from operations 1,243,752 22,611,625
Foreign exchange gain/(loss), net 714 21,869
Interest income - -
Profit before tax 1,244,466 22,633,494
Income taxes
Provision for Deferred tax charge (605,418) (9,887,206)
Profit for the period (attributable
639,048
12,746,288
to the shareholder of the Group)
Total comprehensive income for the period (attributable to the shareholders of 639,048 12,746,288
the Group)
Earnings per share 10
Basic 0.01 0.07
Diluted 0.01 0.07
(The accompanying notes are an integral part of these Unaudited Condensed
Consolidated Interim Financial Statements)
Unaudited Condensed Consolidated Statement of Changes in Equity
(All amounts in US $, unless otherwise stated)
Common Stock Number Amount Additional paid-in capital Currency translation reserve Merger reserve (Accumulated Profits)/ Retained earnings Total stockholders' equity
Balance as at 1 April 2024 182,973,924 3,619,443 46,733,689 (9,313,782) 19,570,288 303,018,938 363,628,576
Profit for the period - - - - - 639,048 639,048
Total comprehensive income for the period - - - - - 639,048 639,048
Balance as at 30 September 2024 182,973,924 3,619,443 46,733,689 (9,313,782) 19,570,288 303,657,986 364,267,624
Balance as at 1 April 2023 182,973,924 3,619,443 46,733,689 (9,313,782) 19,570,288 282,833,686 343,443,324
Profit for the period - - - - - 12,746,288 12,746,288
Total comprehensive income for the period - - - - - 12,746,288 12,746,288
Balance as at 30 September 2023 182,973,924 3,619,443 46,733,689 (9,313,782) 19,570,288 295,579,974 356,189,612
(The accompanying notes are an integral part of these Unaudited Condensed
Consolidated Interim Financial Statements)
Unaudited Condensed Consolidated Statement of Cash Flows
(All amounts in US $, unless otherwise stated)
Six months ended Six months ended
30 September 2024 30 September 2023
(Unaudited) (Unaudited)
(A) Cash flow from operating activities
Profit before tax 1,244,023 22,633,494
Adjustments
Unrealised exchange loss/ (gain) (714) (21,869)
Depreciation 471,469 2,832,274
Changes in operating assets and liabilities
Inventories 1,612,444 2,090,362
Trade receivables 303,664 980,864
Trade and other payables 832,004 2,845,043
Other current and non-current assets 7,959 (29,924)
Provisions for decommissioning - (13,190)
Other liabilities (30,975) (491,168)
Cash generated from operations 4,439,874 30,825,886
Income taxes paid/refund (19,898) (287,062)
Net cash generated from operating activities 4,419,976 30,538,824
(B) Cash flow from investing activities
Purchase of property, plant and equipment (A) (6,849,192) (10,988,404)
Interest received - -
Net cash used in investing activities (6,849,192) (10,988,404)
(C) Cash flow from financing activities
Repayment of long-term debt from banks (10,800,000) (12,168,000)
Proceeds from Related Party 18,425,000 (6,500,000)
Payment of interest (7,047,469) (7,872,920)
Net cash used in financing activities 577,531 (26,540,920)
Net change in cash and cash equivalents (1,851,687) (6,990,500)
Cash and cash equivalents at the beginning of the period
2,069,244 11,765,514
Effect of exchange rate change on cash and cash equivalents 714 21,869
Cash and cash equivalents at the end of the period 218,271 4,796,883
(The accompanying notes are an integral part of these Unaudited Condensed
Consolidated Interim Financial Statements)
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(All amounts in US $, unless otherwise stated)
1. INTRODUCTION
Indus Gas Limited ("Indus Gas" or "the Company") was incorporated in the
Island of Guernsey on 4 March2008 pursuant to an Act of the Royal Court of the
Island of Guernsey. The Company was set up to act as the holding company of
iServices Investments Limited. ("iServices") and Newbury Oil Co. Limited
("Newbury"). iServices and Newbury are companies incorporated in Mauritius and
Cyprus, respectively. iServices was incorporated on 18 June 2003 and Newbury
was incorporated on 17 February 2005. The Company was admitted to trading on
the AIM of the London Stock Exchange on 6 June 2008. Indus Gas, through its
wholly owned subsidiaries iServices and Newbury (together the "Group"), is
engaged in the business of oil and gas exploration, development and
production.
Focus Energy Limited ("Focus"), an entity incorporated in India, entered into
a Production Sharing Contract("PSC") with the Government of India ("GOI") and
Oil and Natural Gas Corporation Limited ("ONGC") on 30 June 1998 for petroleum
exploration and development concession in India known as RJ-ON/06 ("the
Block"). Focus is the Operator of the Block. On 13 January 2006, iServices and
Newbury entered into an interest sharing agreement with Focus and obtained a
65 per cent and 25 per cent share respectively in the Block. The balance 10
per cent of participating interest is owned by Focus. The participating
interest explained above is subject to any option to acquire 30 per cent
Participating Interest exercised by ONGC in respect of discoveries. ONGC has
already exercised 30 per cent PI option for SGL field (as further explained in
Note 3).
2. BASIS OF PREPARATION
The unaudited condensed consolidated interim financial statements are for the
six months ended 30 September 2024 and are presented in United States Dollar
(US$), which is the functional currency of the parent company and other
entities in the Group. They have been prepared in accordance with IAS 34
Interim Financial Reporting. They do not include all of the information
required in annual financial statements in accordance with International
Financial Reporting Standards as adopted by the European union, and should be
read in conjunction with the consolidated financial statements and related
notes of the Group for the year ended 31 March 2024.
The unaudited condensed consolidated interim financial statements have been
prepared on a going concern basis. The accounting policies applied in these
unaudited condensed consolidated interim financial statements are consistent
with the policies that were applied for the preparation of the consolidated
financial statements for the year ended 31 March 2024.
These unaudited condensed consolidated interim financial statements are for
the six months ended 30 September 2024 and have been approved for issue by the
Board of Directors.-
3. JOINTLY CONTROLLED ASSETS
As explained above, the Group through its subsidiaries iServices and Newbury
has an "Interest sharing arrangement" with Focus in the block, which under
IFRS 11 Joint Arrangements, is classified as a 'Joint operation'. All rights
and obligations in respect of exploration, development and production of oil
and gas resources under the 'Interest sharing agreement' are shared between
Focus, iServices and Newbury in the ratio of 10 per cent, 65 per cent and 25
per cent respectively.
Under the PSC, the GOI, through ONGC has an option to acquire a 30 per cent
participating interest in any discovered field, upon such successful discovery
of oil or gas reserves, which has been declared as commercially feasible to
develop.
The block is divided into 3 fields - SGL, SSG and SSF.
The SGL field received its declaration of commercial discovery on 21 January
2008. Subsequent to the declaration of commercial discovery in SGL field, ONGC
exercised the option to acquire a 30 per cent participating interest in the
discovered fields on 6 June 2008. The exercise of this option has reduced the
interest of the existing partners proportionately.
However, on exercise of this option, ONGC is liable to pay its share of 30 per
cent of the SGL field development costs and production costs incurred after 21
January 2008 and in order to be entitled to their 30 per cent share in the
production of gas subject to recovery of contract costs as explained below.
The allocation of the production from the field to each participant in any
year is determined on the basis of the respective proportion of each
participant's cumulative unrecovered contract costs paid as at the end of the
previous year or where there is no unrecovered contract cost at the end of
previous year on the basis of participating interest of each such participant
in the field. As per PSC the recovery shall be first made of Production Costs
and next recovery be made of Exploration costs and the remaining shall be made
of Development costs.
On the basis of the above, gas production for the period ended 30(th)
September 2024 continues to be shared between Focus, iServices and Newbury in
the ratio of 10 percent, 65 percent, and 25 percent, respectively. ONGC will
not be entitled to any participating interest in the production until the full
exploration and development cost is recovered by other participants.
The aggregate amounts relating to jointly controlled assets, liabilities,
expenses, and commitments related thereto that have been included in the
consolidated financial statements are as follows:
Particular Period ended Period ended Year ended
30 September 2024 30 September 2023 31 March 2024
(Unaudited) (Unaudited) (Audited)
Non-current assets 1,302,111,915 1,257,875,924 1,291,623,477
Current assets 116,600,745 114,674,371 116,250,255
Non-current liabilities 1,881,607 1,881,607 1,881,607
Expenses (net of finance income) 832,004 2,845,043 5,551,919
Further, the SSF and SSG field had also received its declaration of
commerciality on 24th November 2014. Subsequent to the declaration of
commerciality for SSF and SSG discovery, ONGC did not exercise the option to
acquire 30 percent in respect of SSG and SSF field. The participating interest
in SSG and SSF field between Focus, iServices and Newbury will remain in ratio
of 10 percent, 65 percent and 25 percent respectively for exploration,
evaluation and development cost, and production revenue for SSF and SSG in the
block.
4. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES
The preparation of interim financial statements requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expense. Actual results may differ from these estimates.
In preparing these unaudited condensed interim consolidated financial
statements, the significant judgments made by management in applying the
Group's accounting policies and the key sources of estimation uncertainty were
consistent with those that applied to the consolidated financial statements as
at and for the year ended 31 March 2024.
5. SEGMENT REPORTING
Operating segments are identified on the basis of internal reports about
components of the Group that are regularly reviewed by the management in order
to allocate resources to the segments and to assess their performance. The
Company considers that it operates in a single operating segment being the
production and sale of gas.
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