TIDMRUR
RNS Number : 1616S
Rurelec PLC
29 September 2017
Rurelec PLC
("Rurelec" or "the Company")
Interim results for the six months ended 30 June 2017
Rurelec PLC (AIM: RUR), the owner, operator and developer of
power generation capacity internationally, today announces its
unaudited interim results for the six months ended 30 June
2017.
Financial Highlights:
-- Post tax (loss) / profit GBP1.9 million loss (2015: GBP2.0
million profit)
-- (Loss) / profit per share 0.35 pence loss (2016: 0.36 pence
profit)
-- Net asset value per share 5.1 pence (2016: 7.2 pence)
Operational and Post Half-Year Highlights:
-- GBP1.9 million loss for the period (2016: GBP2.0 million
profit) is primarily due to foreign exchange losses of GBP1.0
million associated with loans to Argentine operations (2016: gains
GBP2.0 million).
-- The other main driver is the fall in Finance Income to GBP0.4
million (2016: GBP1.3 million), this is due to accruing interest on
loans net of provisions.
-- Reduction in Trade and Other Payables to GBP1.2 million
(2016: GBP3.0 million), with a GBP1.0 million repayment of the
Turbine deferred consideration creditor in the six months.
-- Finance expense was GBP0.214 million compared to GBP0.156
million for the same six months of 2016, the increase is due to the
drawdown of further loan facilities from Bridge Properties (Arena
Central) Limited.
-- Significant improvement in cash repayments from Argentine JV
of GBP2.0 million (2016: GBP0.2 million).
-- Despite the previously announced plant shut down revenues in
Argentina are still performing well locally with Argentine Pesos
Arg $176 million (2016: Arg $204 million). In US$ revenues were
$11.0 million (2016: $14.0 million).
-- Peru - continues to explore the sale of its developments.
-- Chile - one project (255 MW) still under development.
Commenting on the results, Simon Morris, Rurelec's Executive
Director, said:
"The Company continues to pursue measures to restore value to
the Company and its shareholders through developments in Argentina
and Chile, whilst pursuing cost savings at the head office in
London and the sale of the Peruvian assets."
For further information please contact:
Rurelec PLC WH Ireland Limited
Simon Morris Paul Shackleton and
Executive Director James Bavister
Andrew Coveney
Executive Director
+44 (0)20 7025
8026/28 +44(0) 20 7220 1666
Executive Director's Statement
Review of Operations:
In Argentina our 50% owned operating entity, Energia del Sur
S.A., and its parent company, Patagonia Energy Limited, have
outstanding borrowings and interest before impairments of GBP37.9
million (2016: GBP37.7 million) due to the Group. The company is
operating well at the local level, however it has been subject to
two significant operational outages (as previously reported). The
second outage occurring in September 2017 involved a shutdown of
the plant following problems identified in the steam turbine. A
temporary engineering modification was implemented. The plant
resumed generation of electricity from one of its two gas turbines
on 24 September 2017 and further announcements are expected to be
made soon regarding the resumption of output from the steam
turbine, which will be at a reduced output. These outages have not
prevented the operating entity from remitting loan repayments of
GBP2.0 million (2016: GBP0.2 million) to the UK during the
period.
In Peru, the projects owned by the Group are still being
actively marketed. Interest has been shown by a number of potential
purchasers, but no purchase and sale agreement has been signed to
date.
In Chile, the Illapa project is making progress.
A very tight rein continues to be maintained on overheads in the
UK.
As previously announced, the Group has arranged for extended
facilities from BPAC, totalling GBP1.6 million. Despite the
operational problems experienced at our Argentinian investment (as
previously reported), Rurelec has received repayments during the
period against its outstanding loans to the Argentinian plant. This
has enabled Rurelec to now start repaying the loan received from
BPAC. In the event that cash receipts from Argentina continue as
forecast, it is expected that all the facilities from BPAC will be
repaid by no later than June 2018.
Cash flows remain a concern. However, the current liquidity
position of Rurelec is stronger than it has been for at least two
years.
Given the progress on the sale of the Group's assets and the
improved cash remittances from our Argentine operation, the
directors continue to adopt the going concern basis of
accounting.
Review of future strategy
The strategy of the Group continues to be focussed on
stabilising the financial position, keeping costs under tight
control, whilst certain assets are sold. The underlying strategy is
to preserve the value of the Group assets, which will in turn
enable all creditors Rurelec to be repaid and maximise returns to
shareholders.
Simon Morris
Executive Director
RURELEC PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(unaudited)
for the half year ended 30 June 2017
(expressed in thousands of pounds)
________
Audited
Notes 6 months 6 months 12 months
to to to
30/06/17 30/06/16 31/12/16
GBP'000 GBP'000 GBP'000
--------------------------- ------ ------------------------- ------------------------- ----------
Revenue - 116 95
Cost of sales - (6) -
--------------------------- ------ ------------------------- ------------------------- ----------
Gross profit - 110 95
Administrative
expenses (1,134) (1,213) (2,420)
Other Expense - - (10,500)
Operating loss (1,134) (1,103) (12,825)
Foreign exchange
(losses) / gains (963) 1,976 1,243
Finance income 364 1,318 2,683
Finance expense (214) (156) (355)
--------------------------- ------ ------------------------- ------------------------- ----------
(Loss) / Profit
before tax (1,947) 2,035 (9,254)
Tax expense - - (4)
--------------------------- ------ ------------------------- ------------------------- ----------
(Loss) / Profit
for the period (1,947) 2,035 (9,258)
(Loss) / Profit
per share 3 (0.35p) 0.36p (1.65p)
--------------------------- ------ ------------------------- ------------------------- ----------
Other comprehensive
income
Items that will
be subsequently
reclassified to
Profit & Loss
Exchange differences
on translation
of foreign operations (1,025) 927 3,171
Total other comprehensive
(loss) / income (1,025) 927 3,171
Total comprehensive
(loss) / profit
for the period (2,972) 2,962 (6,087)
RURELEC PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(unaudited)
at 30 June 2017
(expressed in thousands of pounds)
Audited
30/6/17 30/6/16 31/12/16
Notes GBP'000 GBP'000 GBP'000
--------------------------- -------- -------------------------- ----------------------- ---------
Assets
Non-current assets
Property, plant
and equipment 11,153 19,864 11,176
Intangible assets 30 29 29
11,183 19,893 11,205
--------------------------- -------- -------------------------- ----------------------- ---------
Current assets
Trade and other
receivables 21,818 24,747 24,761
Cash and cash equivalents 636 9 960
--------------------------- -------- -------------------------- ----------------------- ---------
22,454 24,756 25,721
--------------------------- -------- -------------------------- ----------------------- ---------
Assets Classified
as held for sale 4 1,819 3,355 2,207
--------------------------- -------- -------------------------- ----------------------- ---------
Total assets 35,456 48,004 39,133
--------------------------- -------- -------------------------- ----------------------- ---------
Equity and liabilities
Shareholders' equity
Share capital 11,228 11,228 11,228
Share premium account 22,754 22,754 22,754
Foreign currency
reserve (67) (1,285) 958
Other reserve 5 45,000 45,000 45,000
Profit and loss
reserve (50,467) (37,228) (48,520)
--------------------------- -------- -------------------------- ----------------------- ---------
Total equity attributable
to 28,448 40,469 31,420
shareholders of
Rurelec PLC
--------------------------- -------- -------------------------- ----------------------- ---------
Non-controlling - - -
interest
Total equity 28,448 40,469 31,420
Current liabilities
Trade and other
payables 1,192 2,989 2,434
Current tax liabilities 13 19 12
Borrowings 4,345 3,710 4,037
--------------------------- -------- -------------------------- ----------------------- ---------
5,550 6,718 6,483
--------------------------- -------- -------------------------- ----------------------- ---------
Liabilities Classified
as held for sale 1,458 817 1,230
--------------------------- -------- -------------------------- ----------------------- ---------
Total liabilities 7,008 7,535 7,713
--------------------------- -------- -------------------------- ----------------------- ---------
Total equity and
liabilities 35,456 48,004 39,133
--------------------------- -------- -------------------------- ----------------------- ---------
RURELEC PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(unaudited)
for the half year ended 30 June 2017
(expressed in thousands of pounds)
Share Share Foreign Retained Other Total
capital premium currency earnings reserve equity
GBP'000 GBP'000 reserve GBP'000 GBP'000 GBP'000
GBP'000
---------------------- ----------- ------------ -------------- ------------ ----------- ---------------
Balance at 01.01.16 11,228 22,754 (2,212) (39,262) 45,000 37,508
---------------------- ----------- ------------ -------------- ------------ ----------- ---------------
Gain (Loss) for the
first 6 months - - - 2,035 - 2,035
---------------------- -------------- ------------ ----------- ---------------
Exchange differences - - 927 - - 927
----------- ----------- ---------------
Total comprehensive
Loss - - 927 2,035 - 2,962
---------------------- ----------- ------------ -------------- ------------ ----------- ---------------
Balance at 30.06.16 11,228 22,754 (1,285) (37,228) 45,000 40,469
---------------------- ----------- ------------ -------------- ------------ ----------- ---------------
Loss for the Period - - - (11,292) - (11,292)
---------------------- ----------- ------------ -------------- ------------ ----------- ---------------
Exchange differences - - 2,243 - - 2,243
Total comprehensive
Loss - - 2,243 (11,292) - (9,049)
---------------------- ----------- ------------ -------------- ------------ ----------- ---------------
Balance at 31.12.16 11,228 22,754 958 (48,520) 45,000 31,420
---------------------- ----------- ------------ -------------- ------------ ----------- ---------------
Gain (Loss) for the
first 6 months - - - (1,947) - (1,947)
---------------------- -------------- ------------ ---------------
Exchange differences - - (1,025) - - (1,025)
---------------
Total comprehensive
Loss - - (1,025) (1,947) - (2,972)
---------------------- ----------- ------------ -------------- ------------ ----------- ---------------
Balance at 30.06.17 11,228 22,754 (67) (50,467) 45,000 28,448
---------------------- ----------- ------------ -------------- ------------ ----------- ---------------
RURELEC PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
for the half year ended 30 June 2017
(expressed in thousands of pounds)
Audited
6 months 6 months 12 months
to to to
30/06/17 30/06/16 31/12/16
---------------------------- ------------------- --------- ----------
Result for the period
before tax (1,947) 2,035 (9,254)
from continuing operations
Net finance income (150) (1,161) (2,328)
Adjustments for:
Depreciation - 48 26
Unrealised exchange
losses / (gains) 963 (1,976) (1,243)
Impairment of Goodwill - - (6)
Impairment Assets - - 9,102
Change in trade and
other receivables 32 (142) 1,096
Change in trade and
other payables (252) 264 541
----------------------------- ------------------- --------- ----------
Cash used in operating
activities (1,354) (933) (2,066)
----------------------------- ------------------- --------- ----------
Taxation paid - (3) -
Interest paid - - -
Net cash used in
operating activities (1,354) (936) (2,066)
Cash flows from investing
activities
Purchase of plant - (97) -
and equipment
Repayments from joint
venture company 2,022 178 2,311
Net cash generated
from investing activities 2,022 81 2,311
----------------------------- ------------------- --------- ----------
Net cash inflow /
(outflow) before 668 (855) 245
financing activities
---------------------------- ------------------- --------- ----------
Cash flows from financing
activities
Settlement of Deferred
Consideration (992) - (321)
Loan Drawdowns - 1,150 1,500
Loan Principal Repayments - (672) (830)
Loan Interest Repayments - - (20)
Net cash (used in)
/ generated from (992) 478 329
financing activities
---------------------------- ------------------- --------- ----------
(Decrease) / increase
in cash (324) (377) 574
and cash equivalents
---------------------------- ------------------- --------- ----------
Cash and cash equivalents
at 960 386 386
start of period
---------------------------- ------------------- --------- ----------
Cash and cash equivalents
at end of period 636 9 960
RURELEC PLC
Notes to the Interim Statement
for the six months ended 30 June 2017
1. Basis of preparation
These condensed consolidated interim financial statements do not
constitute statutory accounts within the meaning of Section 435 of
the Companies Act 2006. The comparative figures for the year ended
31 December 2016 were derived from the statutory accounts for that
year which have been delivered to the Registrar of Companies. Those
accounts were qualified. The financial information contained in
this interim statement has been prepared in accordance with all
relevant International Reporting Standards as adopted by the
European Union and expected to apply to the Group's results for the
year ending 31 December 2017 and on interpretations of those
Standards released to date.
2. Accounting policies
These condensed consolidated interim financial statements have
been prepared in accordance with the accounting policies set out in
the Group's financial statements for the year ended 31 December
2016.
3. Earnings per share 6 months 6 months 12 months
to to to
30/6/17 30/6/16 31/12/16
---------- --------- ----------
Basic and diluted
Average number of shares 561m 561m 561m
in issue during the
period
(Loss) / Profit attributable GBP(1.9m) GBP2.0m GBP(9.3m)
to equity holders of
the parent from continuing
operations
Basic and diluted (loss)
/ profit per share on
continuing operations (0.35p) 0.36p (1.65p)
---------- --------- ----------
4. Assets held for Sale
As reported in the December 2016 financial statements, the
assets held for sale relate to entities within Peru, which have
been held for sale following the commitment of the Group to
restructure the business. Two disposals have been identified, one
of which is the outstanding amounts due to the sale of Canchayllo
run-of-river hydro plant with the rest of the assets included
within the second group.
At 30(th) June 2017, the Group has been in discussions with a
number of potential buyers for the rest of the Group's Peruvian
assets. No further provision has been made against the carrying
value of these assets since the latest annual financial
statements.
5. Other Reserve
The Capital Reduction that took place during December 2014
resulted in the creation of a non-distributable reserve. The
condition for this reserve to become distributable is for the
outstanding creditors in December 2014 to be settled. At the date
of approval of these accounts there are some GBP0.5 million of
these creditors outstanding. The Board of Directors consider that
these amounts will be settled in the short term and therefore the
GBP45 million remains within the Other Reserve, which is
non-distributable until these settlements have occurred.
6. The Board of Directors approved this interim statement on
28(th) September 2017. This interim statement has not been
audited.
7. Copies of this statement are available at the Company's
website www.rurelec.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BLGDCXDDBGRI
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