REG - Petroneft Resources - Half-year Report <Origin Href="QuoteRef">PTR.I</Origin> - Part 2

Petroneft ResourcesAnnouncement

29/09/2017 07:07

- Part 2: For the preceding part double click  ID:nRSc1698Sa 

                                            -                              -                              -                            
   Gross profit                                                                          -                              -                              -                            
   Administrative expenses                                                               (45,987)                       (56,435)                       (66,718)                     
   Operating loss                                                                        (45,987)                       (56,435)                       (66,718)                     
   Finance revenue                                                                       228                            204                            294                          
   Finance costs                                                                         (138,915)                      (116,446)                      (239,079)                    
   Loss for the period for continuing operations before taxation                         (184,674)                      (172,677)                      (305,503)                    
                                                                                                                                                                                    
   Taxation                                                                              -                              -                              17,305                       
                                                                                                                                                                                    
   Loss for the period                                                                   (184,674)                      (172,677)                      (288,198)                    
                                                                                                                                                                                    
   Loss for the period                                                                   (184,674)                      (172,677)                      (288,198)                    
   Other comprehensive income to be reclassified to profit or loss in subsequent years:                                                                                             
   Currency translation adjustments                                                      109,246                        424,702                        592,300                      
   Total comprehensive (loss)/ profit for the period                                     (75,428)                       252,025                        304,102                      
 
 
                              Unaudited       Audited           
                              30 June 2017    31 December 2016  
                              US$             US$               
   Non-current assets         4,230,634       4,069,104         
   Current assets             15,462          198,788           
   Total assets               4,246,096       4,267,892         
                                                                
   Non-current liabilities    (4,651,703)     (4,512,667)       
   Current liabilities        (202,509)       (287,913)         
   Total liabilities          (4,854,212)     (4,800,580)       
                                                                
   Net liabilities            (608,116)       (532,688)         
 
 
 10.  Financial assets - loans and receivables                                                                                 
                                                                                Unaudited                  Audited             
      Group                                                                     30 June 2017               31 December 2016    
                                                                                US$                        US$                 
                                                                                                                               
      Loans to WorldAce Investments Limited (Note 15)              53,814,552                 52,235,829   
      Less: share of WorldAce Investments Limited loss (Note 8)    (9,186,571)                (8,246,586)  
                                                                                44,627,981                 43,989,243          
      Loans to Russian BD Holdings B.V. (Note 15)                  4,387,671                  4,256,866    
      Less: share of Russian BD Holdings B.V. loss (Note 9)        (608,116)                  (532,688)    
                                                                                3,779,555                  3,724,178           
                                                                                48,407,536                 47,713,421          
                                                                                                                                   
 
 
The Company has granted a loan facility to its joint venture undertaking
WorldAce Investments Limited of up to US$45 million. This loan facility is US$
denominated and unsecured. Interest currently accrues on the loan at USD LIBOR
plus 6.0% but the Company has agreed not to seek payment of interest until
2018 at the earliest. The loan is set to mature on 31 December 2022. As at 30
June 2017 the loan was fully drawn down. The loan from the Company to Russian
BD Holdings is repayable on demand. Interest currently accrues on the loan at
LIBOR plus 5.0% per annum. 
 
 11.  Inventories      Unaudited       Audited           
                       30 June 2017    31 December 2016  
                       US$             US$               
      Materials        19,679          28,973            
                       19,679          28,973            
 
 
 12.  Trade and other receivables                            Unaudited       Audited           
                                                             30 June 2017    31 December 2016  
                                                             US$             US$               
      Other receivables                                      25,232          155,651           
      Receivable from jointly controlled entity (Note 15)    745,539         920,390           
      Advances to contractors                                2,437           8,047             
      Prepayments                                            52,059          59,816            
                                                             825,267         1,143,904         
 
 
Other receivables are non-interest-bearing and are normally settled on 60-day
terms. 
 
 13.  Cash and Cash Equivalents                                        
                                     Unaudited       Audited           
      Group                          30 June 2017    31 December 2016  
                                     US$             US$               
      Cash at bank and in hand       152,130         319,618           
                                     152,130         319,618           
 
 
Bank deposits earn interest at floating rates based on daily deposit rates.
Short-term deposits are made for varying periods of between one day and one
month depending on the immediate cash requirements of the Group, and earn
interest at the respective short-term deposit rates. 
 
 14.  Trade and other payables                                                                     
                                                                 Unaudited       Audited           
                                                                 30 June 2017    31 December 2016  
                                                                 US$             US$               
      Trade payables                                             292,269         337,208           
      Trade payables to jointly controlled entity (Note 15)      231,078         108,338           
      Corporation tax                                            55,816          55,750            
      Oil taxes, VAT and employee taxes                          58,602          56,165            
      Other payables                                             116,293         318,074           
      Accruals                                                   290,484         206,546           
                                                                 1,044,542       1,082,081         
 
 
The Directors consider that the carrying amount of trade and other payables
approximates their fair value. 
 
Trade and other payables are non-interest-bearing and are normally settled on
60-day terms. 
 
Trade payables and accruals principally comprise amounts outstanding for trade
purchases and ongoing costs. 
 
15.        Related party disclosures 
 
Transactions with subsidiaries 
 
Transactions between the Group and its subsidiaries, Granite and Dolomite,
have been eliminated on consolidation. 
 
Transactions with joint ventures 
 
PetroNeft Resources plc had the following transactions with its joint ventures
during the six months ended 30 June 2017 and year ended 31 December 2016: 
 
   Group                                            Russian BD Holdings BV Group    WorldAce Investments Limited Group  
                                                    US$                             US$                                 
                                                                                                                        
   Receivable by PetroNeft Group at 1 January 2016  3,389,708                       40,883,592                          
   Advanced during the year                         10,000                          -                                   
   Transactions during the year                     159,260                         2,622,188                           
   Interest accrued in the year                     234,402                         3,011,025                           
   Payments for services made during the year       (10,821)                        (3,426,007)                         
   Share of joint venture's translation adjustment  304,102                         1,270,032                           
   Translation adjustment                           (5,769)                         83,761                              
   At 1 January 2017                                4,080,882                       44,444,591                          
   Advanced during the period                       -                               -                                   
   Transactions during the period                   66,883                          1,073,548                           
   Interest accrued in the period                   130,805                         1,578,723                           
   Payment for services made during the period      (160,472)                       (1,300,206)                         
   Share of joint venture's translation adjustment  (75,428)                        (939,985)                           
   Translation adjustment                           18,392                          4,269                               
   At 30 June 2017                                  4,061,062                       44,860,940                          
                                                                                                                        
   Balance at 31 December 2016 comprised of:                                                                            
   Loan facility advanced                           3,724,178                       43,989,243                          
   Trade and other receivables                      356,704                         563,686                             
   Trade Payables                                   -                               (108,338)                           
                                                    4,080,882                       44,444,591                          
   Balance at 30 June 2017 comprised of:                                                                                
   Loans receivable                                 3,779,555                       44,627,981                          
   Trade and other receivables                      281,502                         464,037                             
   Trade and other payables                         -                               (231,078)                           
                                                    4,061,057                       44,860,940                          
 
 
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