RNS Number:6711Z
Sodra Petroleum AB
28 February 2001
28 February 2001
Sodra Petroleum AB (publ)
Report for the financial year ended 31 December 2000
COMMENTS FROM MANAGEMENT
In 2000 it was agreed between Sodra and the Falkland Islands Government to
exchange the remaining work obligation on Tranche F, consisting of one well,
into the acquisition of 2,000 km of seismic. The seismic acquisition was
completed in January 2001. The largest part of this survey (approximately
1,250 km) is located in open acreage, giving the right to the Company to sell
the data to interested third parties.
In November 2001, the owners of convertible shares will have the right to
exchange those shares for shares in the parent company, Lundin Oil, according
to a ratio of 12 convertible shares of Sodra to one new B share of Lundin Oil.
Other business opportunities have been investigated, none of which have been
found to be sufficiently attractive to pursue.
RESULTS AND CASH FLOW
The Group
Sodra reports a Group net loss for the year ended 31 December 2000 of TSEK
27,145 (TSEK 4,054 net profit for the year ended December 1999) corresponding
to SEK 0.34 per share (SEK 0.05). Write off of oil and gas exploration
expenditures amounted to TSEK 27,730 as a result of the write off of the
capitalized exploration costs incurred offshore the Falkland Islands.
Sodra incurred administration expenses of TSEK 4,724 (TSEK 4,557) during the
year. Net financial income and expenses were TSEK 5,309 (TSEK 8,611). Included
was interest received of TSEK 7,470 (TSEK 8,261) and a charge for
mervardesskatt (the Swedish eqvivalent for VAT) on past costs of TSEK 1,899
(TSEK nil).
Parent Company
The parent company reported a net loss for the year ended 31 December 2000 of
TSEK 6,557 (TSEK 1,324 ). The loss was the result of service income of TSEK
322 (TSEK 2,847) offset by net financial expenses of TSEK 2,302 (TSEK 49) and
administration costs of TSEK 4,577 (TSEK 4,122). Service income is the fee
charged to operated joint ventures based on the levels of expenditure within
the joint venture in accordance with the production sharing agreements to
offset corporate expenditure.
GROUP STRUCTURE
Sodra is the parent company of the group also consisting of Sodra's 100%-owned
subsidiary Sodra Petroleum BV, a company registered in the Netherlands. Sodra
is more than 50% owned by Lundin Oil AB.
The Sodra Group does not have any employees. Ongoing management and
administration is carried out by Lundin Oil AB according to a management
agreement.
FINANCING AND LIQUIDITY
Liquid assets at 31 December 2000 amounted to TSEK 110,962 (TSEK 7,946).
Sodra has entered into a revised loan agreement with its parent company Lundin
Oil AB (Lundin Oil) under which Lundin Oil can borrow up to USD 9 million. The
loan is callable with a two week notice period. Under the terms of the loan
agreement Lundin Oil is prohibited from entering into any unsecured interest
bearing loan or debt facility whilst this loan facility is outstanding. Under
the loan agreement no monies are currently outstanding.
Parent Company
Liquid assets at 31 December 1999 amounted to TSEK 179 (TSEK 1,749).
INVESTMENTS
During the period, investments in oil and gas assets have been made to an
amount of TSEK 6,523 (TSEK 19,505). This represented Sodra's share of ongoing
exploration expenditure offshore the Falkland Islands.
Whilst the Group records exploration expenditure under the full cost method of
accounting whereby exploration costs would only be written-off when an area is
relinquished, management decided to write-off the costs incurred offshore the
Falkland Islands.
Parent Company
Shares in subsidiaries at 31 December 1999 amounted to TSEK 106,013 (TSEK
106,013).
OPERATIONS
Sodra holds an 87.5% interest in six exploration and production licenses
covering an area known as Tranche F in Falkland Island territorial waters. The
remaining 12.5% interest in these licenses is held by Sodra's joint venture
partner Desire Petroleum plc, a company quoted on the Alternative Investment
Market (AIM) of the London Stock Exchange. Sodra is the operator of Tranche F
which is held through Sodra's Dutch subsidiary Sodra Petroleum BV.
SHARE DATA AND OWNERSHIP
The total number of shares in Sodra amount to 81,012,976 divided into two
classes of shares, ordinary shares and convertible shares. There are
40,506,500 ordinary shares outstanding and 40,506,476 convertible shares
outstanding. The convertible shares can be exchanged for shares in the parent
company Lundin Oil according to the ratio 12 convertible shares of Sodra for
one new B share of Lundin Oil at the nominal price of SEK 0.50. The exchange
may take place in November 2001. All ordinary shares, corresponding to just
above 50% of the share capital, are owned by Lundin Oil.
Sodra's second largest shareholder is its Chairman Adolf H. Lundin holding
10,214,834 convertible shares, corresponding to 12.6% of the share capital.
BOARD OF DIRECTORS
At the Annual General meeting all the directors were re-elected. Ian Lundin,
President of Lundin Oil replaced Magnus Nordin as Managing Director from 1
January, 2001.
DIVIDEND
The Directors propose that no dividend be declared for the year.
Financial Information
The Annual General Meeting of the company will be held in Stockholm on 16 May
2001.The Company expects to publish its financial results for the First
Quarter on 15 May, 2001The Annual Report will be mailed to shareholders in
mid-April and will also be available at this time from the Company's office at
Hovslagargatan 5, Stockholm.
KEY FINANCIAL RATIOS
1 Jan 2000 - 1 Jan 1999 - 1 Jan 2000 - 1 Jan 1999 -
31 Dec 2000 31 Dec 1999 31 Dec 2000 31 Dec 1999
Group Group Parent Parent
Company Company
Equity ratio, % 1 91.94 95.59 92.45 97.69
Shareholders' equity SEK 1.27 1.44 1.22 1.30
per share 2
Earnings SEK per share 3 (0.34) 0.05 (0.08) (0.02)
Number of shares at the 81,012,976 81,012,976 81,012,976 81,012,976
year end
Weighted average number of 81,012,976 81,012,976 81,012,976 81,012,976
shares for the period 4
Definitions
1. Equity ratio is defined as the shareholders' equity in relation to
total assets.
2. Shareholders' equity SEK per share is defined as the shareholders'
equity divided by the number of shares at the year end.
3. Earnings SEK per share is defined as the net result divided by the
weighted average number of shares for the period of operations.
4. Weighted average number of shares for the period is defined as the
number of shares at the beginning of the period, with new issues of shares
weighted for the proportion of the period they are in issue and with
regard to the period of operations.
INCOME STATEMENT
Group and Parent Company Income Statement in summary
1 Jan 2000 - 1 Jan 1999 - 1 Jan 2000 - 1 Jan 1999 -
31 Dec 2000 31 Dec 1999 31 Dec 2000 31 Dec 1999
TSEK Group Group Parent Parent
Company Company
Service income - - 322 2,847
Write off of (27,730) - - -
exploration
expenditure
Administration (4,724) (4,557) (4,577) (4,122)
expenses
Operating loss (32,454) (4,557) (4,255) (1,275)
Financial income and 5,309 8,611 (2,302) (49)
expenses, net
NET RESULT (27,145) 4,054 (6,557) (1,324)
BALANCE SHEET
Group and Parent Company Balance Sheet in summary
31 Dec 31 Dec 31 Dec 31 Dec
2000 1999 2000 1999
TSEK Group Group Parent Parent
Company Company
ASSETS
Tangible fixed assets
Oil and gas properties - 19,725 - -
Financial fixed assets
Shares in subsidiaries - - 106,013 106,013
Current assets
Loan to associated company 43 92,185 - -
Other current assets 747 2,379 583 -
Cash and bank 110,962 7,946 179 1,749
111,752 102,510 762 1,749
Total assets 111,752 122,235 106,775 107,762
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity including net 102,747 116,848 98,716 105,273
result for the year
Current liabilities 9,005 5,387 8,059 2,489
Total shareholders' equity and 111,752 122,235 106,775 107,762
liabilities
Pledged assets None None None None
Contingent liabilities None 261 None 261
STATEMENT OF CASH FLOW
Group and Parent Company Statement of Cash Flow in summary
1 Jan 2000 - 31 Dec 2000 1 Jan 1999 - 31
Dec 1999
TSEK Group Group Parent Parent
Company Company
Cash flow from operations
Net result (27,145) 4,054 (6,557) (1,324)
Adjustments for non cash related
items
Write off of exploration 27,730 - - -
expenditure
Changes in working capital 5,002 (36,473) 4,987 (30,777)
Total cash flow from operations 5,587 (32,419) (1,570) (32,101)
Cash flow used for investments
Investment in oil and gas (6,523) (19,505) - -
expenditure
Change in loan to associated 99,251 (10,725) - -
companies
Total cash flow used for 92,728 (30,230) - -
investments
Change in cash and bank 98,315 (62,649) (1,570) (32,101)
Cash and bank at the beginning 7,946 68,916 1,749 33,850
of the period
Currency exchange difference in 4,701 1,679 - -
cash and bank
Cash and bank at the end of the 110,962 7,946 179 1,749
year
Stockholm, 28 February 2001
Ian Lundin
Managing Director
For further information, please contact:
Ian Lundin Tel: +41 22 319 6600
Maria Hamilton Tel: +41 22 319 6600
Sodra Petroleum AB is quoted on the New Market (Nya Marknaden) of the
Stockholm Stock Exchange and on the Alternative Investment Market (AIM) of the
London Stock Exchange.
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