RNS Number:2912I
Sodra Petroleum AB
9 August 2001
Sodra Petroleum AB announces that it's parent company Lundin Oil AB (Lundin)
has today issued the following:
Report for the Six Months ended 30 June 2001
BOARD RECOMMENDS ACCEPTANCE OF TALISMAN OFFER
* Talisman offers SEK 36.50 per share for Lundin Oil AB
* Talisman offer expires on 17 August, 2001
* Sudan assets to be spun off into new company
* Profit after tax MSEK 100.8 (SEK 0.98 per share)
* Operating cashflow MSEK 302.5
* Major oil discoveries in Malaysia/Vietnam
Lundin Oil AB is a Swedish independent oil company with exploration and
production activities in eight different countries worldwide. The Company is
listed on NASDAQ (symbol "LOILY") and the Stockholm Stock Exchange (symbol
"LOILB").
For further information, please contact:
Ian H Lundin
President
Tel: +41 22 319 66 00
or
Ashley Heppenstall
Finance Director
Tel:+ 41 22 319 66 00
or
Maria Hamilton
Corporate Communications
Tel:+ 41 22 319 66 00
Visit our website: www.lundinoil.com
Letter to shareholders
Dear fellow shareholders,
Board recommends Talisman offer
Review of Operations
During the six months ended June 30, 2001 the Company made a profit after tax
of MSEK 100.8 (MUSD 9.9), which corresponds to a 21% drop from the same period
last year.
Average working interest production for the period was 13,632 boepd and
average realised oil price was USD 26.21 per barrel, which correspond to a 7%
decrease and a 7% increase, respectively, over the same period in the previous
year.
The lower profit figure is partially due to the write-off of the exploration
costs related to Falkland Islands and partially due to the deferred tax
benefit recorded in the first six months of 2000. The lower production figure
is due to the natural decline observed in the UK North Sea.
On the drilling front, the East Bunga Raya-1 exploration well on Block PM3CAA
offshore Malaysia/Vietnam flowed at 5,500 bopd confirming the presence of a
new oil and gas accumulation on this highly prospective Block. In Sudan the
Company drilled another exploration well on Block 5A after successfully
testing the Thar Jath-1 well at a combined rate of 4,260 bopd from four zones.
The second exploration well encountered sub-commercial quantities of oil. The
drilling rig was then moved back to Thar Jath where it successfully drilled
and tested the first appraisal well on the oil-bearing structure. This well
flowed at a combined rate of over 2,000 bopd from two zones. The Company is
currently evaluating the best manner in which to proceed with the development
of this significant find. Up to 100,000 bopd is reserved for the third party
users in the 1600-km pipeline connecting the nearby oil fields in Blocks 1 and
2 with Port Sudan on the Red Sea Coast. In April 2001, the Company signed a
new Exploration and Production Sharing Contract covering Block 5B (immediately
adjacent to Block 5A). The consortium, which consists of Petronas Carigali
Overseas SDN BHD, OMV AG, Sudapet Ltd and Lundin Oil now control the entire
southern half of the highly prolific Muglad Basin.
In Albania, the Company withdrew from Block 2 after a deep well, (drilled on
the Block) failed to encounter commercial quantities of hydrocarbons.
Finally, on the corporate front, the Company increased its shareholding in
Sodra Petroleum AB from 50.01% to 95.4% as a result of the conversion of Sodra
shares into Lundin Oil shares by the Sodra shareholders. On 17 July 2001 the
Company has commenced compulsory acquisition of the remaining shares in
accordance with the Swedish Companies Act.
The Talisman Offer
June 20, 2001 was an historic day in the life of Lundin Oil AB. On that day,
the Board of the Company considered and approved an offer from Talisman Energy
AB to purchase all the outstanding shares in Lundin Oil for SEK 36.50 in cash.
In addition to the cash offer, the Lundin Oil shareholders will receive one
share in Lundin Petroleum AB for each share held in Lundin Oil. It is expected
that the shares of Lundin Petroleum will start trading on the New Market in
Stockholm during September 2001.
Lundin Petroleum AB will inherit from Lundin Oil the assets in Sudan, an
approximate 10% investment in a US Company with large oil reserves in the
Russian Federation and approximately US$ 6.5 million in cash.
The core management team of Lundin Oil and the Board of Directors will remain
in place to manage Lundin Petroleum giving the new Company the full benefit of
the experience and expertise acquired by Lundin Oil over the years.
The prospects for Lundin Petroleum are indeed exciting:
* In Sudan there is a major discovery known as Thar Jath on Block 5A. We
are together with our partners and the Government of Sudan committed to
the fast track development of the Thar Jath field through the installation
of a pipeline connecting Thar Jath to the main trunk line that goes to
Port Sudan.
* The remaining prospectivity of Block 5A and Block 5B is significant. The
potential of these two Blocks (which cover most of the Southern Half of
the Muglad Basin) is similar to the northern half of the Basin where
approximately 1 billion barrels of oil have been discovered to date.
* As part of the transaction, Lundin Petroleum will also inherit certain
rights, which may result in the acquisition of other highly prospective
blocks in the Middle East and North Africa.
* The new Company will have the management resources to build Lundin
Petroleum into a force in the oil business. We are all fully committed to
achieve this objective.
After spending the better part of two decades building an oil company with a
strong asset base in different parts of the world, the shareholders now have
the opportunity to realize part of their investment while maintaining an
interest in a new company with enormous potential.
The Future
Demand for oil keeps growing (although the growth rate has shown some signs of
slowing down recently) and new oil fields are becoming very difficult to find,
especially in so-called "politically stable areas". This is why we believe
that a small oil company (such as Lundin Petroleum AB) with exposure to large
discoveries (wherever they may be) has the opportunity to realise enormous
value over the next few years. The reason for this is that major oil
companies, as well as large independents, are finding it more and more
difficult to replace their reserves let alone actually add to them through
exploration. Therefore, they have no choice but to acquire these reserves in
the market. Having said that our objective is not simply to find oil so we can
turn around and sell it to the best bidder. We are aiming to recreate the
success of Lundin Oil through a new vehicle by focusing on a few selected
areas with large reserves potential. Finally, we will inherit the Code of
Conduct (adopted by Lundin Oil recently) and will continue to ensure that
wherever we invest the local population will see direct benefits in terms of
community development and job creation.
I sincerely hope that you will join us on our next journey in the quest to
meet the world's energy requirements.
Yours sincerely,
Ian H Lundin
President
RESULT AND CASH FLOW
The Group
The Lundin Oil AB Group (Lundin Oil or the Group) reports a profit after tax
for the six months ended 30 June 2001 of MSEK 100.8 (MSEK 128.2 for the
corresponding period during 2000) corresponding to SEK 0.98 per share (1.47
SEK per share). The six months result has been adversely affected by the
write-off of the explorationexpenditure in the Falkland Islands whilst the
result for the corresponding period of 2000 benefited from a reversal of
deferred tax charge.
Operating cash flow for the six months ended 30 June 2001 was MSEK 302.5 (MSEK
293.6) corresponding to 2.94 SEK per share (3.36 SEK per share). The operating
cash flow for the first six months is at the same level as for the same period
in the prior year.
Lundin Oil received an average price on its crude oil sales of USD 26.21 (USD
24.35) per barrel for the six months after the effects of the oil price hedge
during 2001. The average price received for crude oil sales for the six months
without the effects of the hedge was USD 26.16 (USD 28.29). The average price
achieved for the year ended 31 December 2000 after the effects of the oil
price hedge was USD 24.35.
Oil and gas related income for the six months ended 30 June 2001 amounted to
MSEK 592.7(MSEK 465.6) and relates to Lundin Oil's assets in the UK North Sea
and Malaysia which generated operating income of MSEK 351.7 (MSEK 327.7) and
MSEK 232.7 (MSEK 135.3), respectively. Production cost in the first six months
ended 30 June 2001 was MSEK 211.8 (MSEK 106.1). The increase in production
costs is primarily related to stock movements of MSEK 53.4, an amount of MSEK
11.1 for non-recurring well work-over cost in Malaysia and higher FPSO costs
in Malaysia compared to the previous period. The benefit from the well
work-over costs has been increased production in this and subsequent quarters.
The depletion charge on oil and gas assets for the six months ended 30 June
2001 was MSEK 134.4 (MSEK 129.1).
Administration expenses were MSEK 45.9 (MSEK 28.2) for the six months ended 30
June 2001. The increase was partially due to costs incurred with the Talisman
bid process. Within the transaction agreement between Talisman and Lundin Oil
it has been agreed that an amount of MUSD 8.5 will be paid by Lundin Oil for
the payment of assignment fees, reorganisation costs and severance and bonus
payments to the management and employees of Lundin Oil, of which payments of
MUSD 1.0 have been included within the half year results.
Net financial income and expenses for the six months ended 30 June 2001 were
MSEK -8.0 (MSEK -11.4). Included within the six months ended 30 June 2001 was
interest income of MSEK 8.3 (MSEK 10.8) offset by interest expenses of MSEK
19.2 (MSEK 20.3) arising from bank debt.
Tax for the six months ended 30 June 2001 was MSEK 94.3 (MSEK 65.5). The
current corporation tax charge for the six months ended 30 June 2001 was MSEK
64.5 (MSEK 45.8) and current Petroleum Revenue Tax, PRT, was MSEK 13.9 (MSEK
20.2). The increase in current tax charges was due to the tax charge incurred
in Malaysia following the full utilisation of tax losses carried forward
during 2000. The deferred corporation tax charge for the six months ended 30
June 2001 was MSEK 11.7 (tax benefit of MSEK 7.9) relating primarily to the
Malaysian operation. The deferred corporation tax benefit for 2000 is the
reversal of a deferred tax provision in the UK following the reorganisation of
the UK Group.
Parent Company
The net profit for the parent company for the six months ended 30 June 2001
amounted to MSEK 29.2 (net loss of MSEK 9.7). The profit resulted mainly from
the receipt of a dividend from the Lundin UK Group of MSEK 42.9.
Administration charges of MSEK 16.1 (MSEK 8.2) and interest expense of MSEK
9.6 (MSEK 10.2) were offset by a foreign exchange gain of MSEK 10.6 (MSEK
4.2).
PRODUCTION
Production for the six months ended 30 June 2001 on a working interest basis
amounted to 2,467,562 (2,644,738) barrels of oil equivalents of which
2,155,351 (2,309,073) were barrels of oil. This corresponds to a production of
13,633 (14,531) barrels of oil equivalents per day (boepd) for the six months
ended 30 June 2001 including production from the UK North Sea and Malaysia of
7,404 (8,696) boepd and 6,229 (5,835) boepd, respectively. Production
allocated for the six months ended 30 June 2001 from Malaysia on an
entitlement basis after government share amounted to 773,247 (732,830) barrels
or 4,272 (4,026) bopd.
FINANCING AND LIQUIDITY
The Group
Liquid assets at 30 June 2001 amounted to MSEK 344.2 (MSEK 344.7).
Parent Company
Liquid assets at 30 June 2001 amounted to MSEK 20.6 (MSEK 57.0).
INVESTMENTS
During the six months ended 30 June 2001, investments in oil and gas assets
have been made in an amount of MSEK 359.8 (MSEK 149.2). These primarily relate
to ongoing exploration costs in Libya of MSEK 15.2, Sudan of MSEK 94.2 and
Albania of MSEK 21.9, and development costs in Malaysia of MSEK 129.4 and
Libya of MSEK 37.9.
FINANCIAL INSTRUMENTS
The Group entered into interest rate hedging contracts to tie the LIBOR based
floating rate for part of the Group's USD borrowings to a fixed rate of
interest for a period of three years expiring December 2001. The contracts are
in the amount of USD 50.0 million with an interest rate fixed at 5.87%.
The Group had bought a put option set at USD 19.00 for Dated Brent in respect
of 5,000 bopd for the calendar year 2001. The put option was sold in April
2001.
The Group entered into forward oil price sales that are tied to forecast
production from the UK and Malaysia/Vietnam. From 1 January 2001 to 31
December 2001, 2,750 bopd of production have been fixed at a West Texas
Intermediate price of USD 28.55 per barrel and from 1 April 2001 to 31
December 2001, 2,500 bopd of production have been fixed at an average Dated
Brent price of USD 26.505 per barrel.
Lundin Oil AB has entered into a share swap agreement with Skandinaviska
Enskilda Banken AB (SEB) under which SEB has purchased 2.3 million Lundin Oil
AB B shares to hedge Lundin Oil AB's obligation under the 1999 and 2000
employee stock option programs. In the event that the Lundin Oil share price
falls below the purchase price at which the shares were acquired by SEB,
Lundin Oil will be responsible for any financial exposures resulting there
from. In the event that employees exercise under these programs, it is
expected that SEB will deliver shares purchased under this swap agreement. As
a result, if such options are exercised, Lundin Oil will not need to issue new
shares for which the Company has existing shareholder approval. Lundin Oil AB
entered into a second share swap agreement with SEB to hedge the employee
stock options proposed to be issued in 2001. SEB had acquired 150,000 shares
when purchasing was suspended during the period when the Lundin Oil shares
were subject to an acquisition offer from Talisman Energy.
CHANGES IN BOARD OF DIRECTORS
At the Annual General meeting all the directors were re-elected with the
exception of Magnus Nordin who declined re-election and resigned from the
Board.
SHARE DATA
Lundin Oil AB's registered share capital at 30 June 2001 amounts to SEK
51,430,641.50 represented by 102,861,283 shares of nominal value SEK 0.50
each. The shares are divided into 678,200 A shares with 10 votes each and
102,183,083 B shares with one vote each. In addition, 3,342,501 B shares have
been issued but not registered as at 30 June 2001 resulting from the
conversion of Sodra Petroleum shares as detailed below.
Lundin had outstanding, at the start of the financial period, 3,400,000
warrants with an exercise price of SEK 0.50, exercisable between 5 and 23
November 2001, to Sodra Petroleum AB (Sodra). Sodra and Lundin shareholders at
the Annual General Meetings of the companies approved an amendment to the
convertible shares allowing the convertible shares to be exchangeable for
shares in Lundin at the ratio of 11 convertible shares of Sodra for one new B
share of Lundin at the nominal price of SEK 0.50. The conversion period for
this exchange was between 21 May and 14 June 2001. 36,767,511 convertible
shares in Sodra were submitted for conversion and as a result of the
transaction 34,195 shares were bought by the Company at a price of SEK 2.00
per share. The process of compulsory acquisition to purchase the outstanding
Sodra Petroleum convertible shares was instigated on 17 July 2001.
Under the Group incentive program for employees 1,250,000 incentive warrants
with a strike price of SEK 49 expiring on 15 May 2001 had been issued. These
warrants have expired. A further 1,150,000 incentive warrants with a strike
price of SEK 24 expiring on 11 March 2002 and 1,200,000 incentive warrants
issued at a strike price of SEK 23.00 expiring on 22 May 2003 have been
issued. At the Annual General Meeting of Lundin Oil AB the issue of 1,200,000
warrants expiring on 1 June 2004 were authorised for issue. If the Talisman
offer is completed the warrants expiring in 2004 will not be issued.
ACCOUNTING PRINCIPLES
This interim report has been prepared using the accounting principles applied
to the Financial Statements for the year ended 31 December 2000 and in
accordance with the Swedish Financial Accounting Standards Council's
recommendation RR 20 Interim Financial Reporting except for the change
described below.
CHANGE IN ACCOUNTING PRINCIPLES
Inventories of hydrocarbons have been valued at cost whereas previously they
have been valued at market prices prevailing at the balance sheet date. The
effect of this change in accounting principle is a reduction in profit for the
year ended 31 December 1999 from TSEK 12,622 to TSEK 8,505, a reduction in the
profit for the six months ended 30 June 2000 from TSEK 127,961 to TSEK 128,165
and a reduction in the profit for the year ended 31 December 2000 from TSEK
225,503 to TSEK 224,754. The comparative financial statements have been
restated in this report.
KEY FINANCIAL RATIOS
1 Jan 1 Apr 1 Jan 1 Apr 1 Jan
2001- 2001- 2000- 2000- 2000-
30 Jun 30 Jun 30 Jun 30 Jun 31 Dec
2001 2001 2000 2000 2000
6 3 6 3 12
months months months months months
Key Financial Ratios
Return on capital
employed1, % 4.2 1.9 7.2 5.2 12.0
Return on total
assets2, % 6.5 2.9 8.7 4.9 14.4
Equity ratio3, % 68.5 68.5 68.4 68.4 68.8
Shareholders' equity
SEK per share4 25.7 25.7 20.1 20.1 22.2
Operating cash flow
SEK per share5 2.9 1.6 3.4 1.7 5.7
Number of shares
at the period end 106,203,784 106,203,784 102,861,283 102,861,283 102,861,283
Weighted average
number of shares for
the period 103,175,220 103,485,706 87,276,530 89,093,414 95,107,259
Weighted average
number of shares for
the period, fully
diluted 102,861,283 102,861,283 87,276,530 89,093,414 95,107,259
Definitions
1 Return on capital employed is defined as the Group's net result divided by
the average capital employed (the average of the net assets for the financial
period).
2 Return on total assets is defined as the Group's result after financial
items plus interest expenses plus/less exchange differences on financial loans
divided by the average total assets (the average total assets less
non-interest bearing liabilities for the period).
3 Equity ratio is defined as the Group's shareholders' equity including
minority interest in relation to total assets.
4 Shareholders' equity SEK per share is defined as the Group's shareholders'
equity divided by the number of shares at the period end.
5 Operating cash flow SEK per share is defined as the Group's operating income
less production costs and less current taxes divided by the weighted average
number of shares for the period.
GROUP INCOME STATEMENT IN SUMMARY
1 Jan 1 Apr 1 Jan 1 Apr 1 Jan
Note 2001- 2001- 2000- 2000- 2000-
Expressed in TSEK
30 Jun 30 Jun 30 Jun 30 Jun 31 Dec
2001 2001 2000 2000 2000
6 3 6 3 12
months months months months months
Operating income
Net sales of oil and 1 550,398 261,138 430,823 244,746 907,932
gas
Tariff income 34,054 16,449 32,158 16,512 63,267
Service income 8,217 4,037 2,662 1,331 6,622
592,669 281,624 465,643 262,589 977,821
Cost of sales
Production costs 2 (211,759)(82,133) (106,063) (69,868)(296,463)
Depletion of oil and (134,409)(69,538) (129,069) (66,620)(256,269)
gas properties
Write-off of oil and (12,233)(12,233) - - (29,122)
Gross profit 234,268 117,720 230,511 126,101 395,967
Other income 8,960 2,382 4,427 1,849 13,265
Administration (45,896)(32,590) (28,156) (14,748) (55,045)
expenses
Operating profit 197,332 87,512 206,782 113,202 354,187
Financial income and (8,030) 144 (11,376) (1,582) 5,887
expenses, net
Profit before tax 189,302 87,656 195,406 111,620 360,074
and minority
interests
Tax 3 (94,342)(45,265) (65,548) (17,932)(148,387)
Minority interests 5,794 6,303 (1,693) (1,019) 13,067
Net result 100,754 48,694 128,165 92,669 224,754
Earnings SEK per 0.98 0.47 1.47 1.04 2.36
share1
Earnings SEK per share 0.98 0.47 1.47 1.04 2.36
fully diluted1
1 See Key financial ratios for number of
shares
GROUP BALANCE SHEET IN SUMMARY
Expressed in TSEK Note 30 June 30 June 31 December
2001 2000 2000
ASSETS
Tangible fixed assets
Oil and gas properties 4 3,368,153 2,501,048 2,754,924
Other fixed assets 15,753 12,518 14,281
Total tangible fixed assets 3,383,906 2,513,566 2,769,205
Financial fixed assets 5 109,762 61,211 68,219
Total fixed assets 3,493,668 2,574,777 2,837,424
Current Assets
Current receivables and inventories 154,540 192,416 284,441
Cash and bank,
short term investments 344,230 344,722 258,159
Total current assets 498,770 537,138 542,600
Total assets 3,992,438 3,111,915 3,380,024
SHAREHOLDERS' EQUITY
AND LIABILITIES
Shareholders' equity including net result
for the period 2,730,090 2,066,853 2,275,622
Minority interest 4,867 61,614 51,374
Provisions and long-term liabilities 367,415 297,890 306,322
Long-term interest bearing debt 396,687 385,581 379,510
Current liabilities 493,379 299,977 367,196
Total shareholders' equity and
liabilities 3,992,438 3,111,915 3,380,024
Pledged assets 6 1,980,868 842,038 1,825,996
Contingent liabilities - - -
STATEMENT OF CHANGES IN GROUP EQUITY
Shareholders' equity comprises: Share Restricted Retained Net
2001 Capital reserves earnings result
Balance at 1 January 51,431 1,852,335 151,569 225,503
Restatement of prior years - 28 (4,495) (749)
results
Adjusted balance at 1 January 51,431 1,852,363 147,074 224,754
Transfer of prior year net result - - 224,754 (224,754)
New share issue 1,671 48,365 - -
Share issue costs - (2,188) - -
Currency translation difference - 292,747 13,119 -
Net result - - - 100,754
Balance at 30 June 53,102 2,191,287 384,947,497 100,754
GROUP CASH FLOW STATEMENT IN SUMMARY
Expressed in TSEK 1 Jan 1 Apr 1 Jan 1 Apr 1 Jan
2001- 2001- 2000- 2000- 2000-
30 Jun 30 Jun 30 Jun 30 Jun 31 Dec
2001 2001 2000 2000 2000
6 months 3 months 6 months 3 months 12 months
Cash flow from
operations
Net result 100,754 48,694 128,165 92,669 224,754
Adjustment for 243,071 124,223 138,107 51,750 401,390
depletion and
other non cash
related items
Changes in 166,843 44,757 (31,713) (35,076) (183,570)
working capital
Total cash flow 510,668 217,674 234,559 109,343 442,574
from operations
Investment in (359,751) (212,101) (149,249) (79,391) (390,661)
oil and gas
properties
Investment in (3,511) (2,129) (2,703) (16) (8,588)
other fixed
assets
Sale 10,000 - 249 249 (10,000)
of/(investment)
in short term
investments
Investment in - - - - (10,086)
shares and
participations
Investment in - - - - (12,389)
loan note
receivable
Sale of assets - - - - 4,056
Total cash flow (353,252) (214,229) (151,703) (80,593) (427,668)
used for
investments
Decrease in - - - - (6,486)
long-term
liabilities
Paid financing (8,177) (1,180) - - (572)
fees
Repayment of (58,674) (58,674) (63,278) (63,278) (117,322)
long term loan
Change in (30,361) (30,361) - - 16,426
restricted cash
Proceeds from 1,671 1,671 1,353 1,353 1,353
share issues
Proceeds from - - 27,564 - 27,564
share issues in
subsidiary
Share issue costs (2,188) (2,188) (3,941) (3,941) (4,567)
Total cash flow (97,729) (90,732) (38,302) (65,866) (83,604)
from financing
Change in cash 59,687 (87,288) 44,554 (37,116) (68,698)
and bank
Cash and bank at 247,048 423,670 293,543 377,400 293,543
the beginning of
the period
Currency 36,120 6,473 5,953 3,766 22,203
exchange
difference in
cash and bank
Cash and bank at 342,855 342,855 344,050 344,050 247,048
the end of the
period
Note 1. Sales, TSEK 1 Jan 2001- 1 Apr 2001- 1 Jan 2000- 1 Apr 2000- 1 Jan 2000-
30 Jun 2001 30 Jun 2001 30 Jun 2000 30 Jun 2000 31 Dec 2000
6 months 3 months 6 months 3 months 12 months
Crude oil - 232,720 106,054 135,250 69,631 347,422
Malaysia
Crude oil - UK 264,028 128,938 253,765 156,016 466,996
Gas - UK 49,943 24,353 37,761 17,384 74,640
NGLs - UK 3,707 1,793 4,047 1,715 18,874
550,398 261,138 430,823 244,746 907,932
Note 2. Production 1 Jan 1 Apr 1 Jan 1 Apr 1 Jan
costs, TSEK 2001 - 2001 - 2000 - 2000 - 2000 -
30 Jun 30 Jun 30 Jun 30 Jun 31 Dec
2001 2001 2000 2000 2000
6 months 3 months 6 months 3 months 12 months
Costs of operations 138,278 69,283 88,140 42,508 209,625
Tariff expenses 51,931 24,292 48,073 25,359 101,863
United Kingdom 10,164 4,834 11,776 6,859 25,283
royalty
Changes in 11,386 (16,276) (41,926) (4,858) (40,308)
inventories and
underlift/overlift
position
211,759 82,133 106,063 69,868 296,463
Note 3. Tax, 1 Jan 1 Apr 1 Jan 1 Apr 2000- 1 Jan
TSEK 2001- 2001- 2000- 30 Jun 2000 2000-
30 Jun 30 Jun 30 Jun 3 months 31 Dec
2001 2001 2000 2000
6 months 3 months 6 months 12 months
The tax charge
comprises
Corporation tax
- current 64,522 27,809 45,763 25,419 93,815
- deferred 11,734 8,485 (7,940) (22,940) 1,860
76,256 36,294 37,823 2,479 95,675
PRT (Petroleum
revenue tax)
- current 13,932 6,612 20,215 11,633 43,898
- deferred 4,154 2,359 7,510 3,820 8,814
18,086 8,971 27,725 15,453 52,712
Total charge 94,342 45,265 65,548 17,932 148,387
to income
Note 4. Oil and gas Book value Book value Book value
properties, TSEK 30 June 2001 31 June 2000 31 December 2000
United Kingdom 857,063 842,038 813,926
Malaysia 686,376 481,930 539,118
Libya 1,240,899 837,638 1,002,070
Falkland Islands - 18,951 -
Sudan 462,114 257,182 314,571
Papua New Guinea 45,946 37,542 40,496
Albania 71,511 22,819 41,771
Others 4,244 2,948 2,972
3,368,153 2,501,048 2,754,924
Note 5. Financial fixed assets includes shares in, and a loan note receivable
from Khanty Mansiysk Oil Corporation.
Note 6. Pledged assets represent the UK North Sea assets, the shares of the
companies owning the Libyan assets and an amount of TSEK 17,500 as security
for the liabilities under the share swap agreement with SEB.
PARENT COMPANY INCOME STATEMENT IN SUMMARY
Expressed in 1 Jan 1 Apr 1 Jan 1 Apr 1 Jan
TSEK 2001- 2001- 2000- 2000- 2000-
30 Jun 30 Jun 30 Jun 30 Jun 31 Dec
2001 2001 2000 2000 2000
6 months 3 months 6 months 3 months 12
months
Other income 716 347 968 492 4,705
Administration (16,130) (9,007) (8,222) (4,852) (18,510)
expenses
Operating loss (15,414) (8,660) (7,254) (4,360) (13,805)
Financial income 44,628 46,361 (2,425) 1,236 18,573
and expenses, net
Net profit/(loss) 29,214 37,701 (9,679) (3,124) 4,768
before tax
Tax - - - - -
Net result 29,214 37,701 (9,679) (3,124) 4,768
PARENT COMPANY CASH FLOW STATEMENT IN SUMMARY
Expressed in 1 Jan 2001- 1 Apr 1 Jan 1 Apr 1 Jan
TSEK 30 Jun 2001 2001- 2000- 2000- 2000-
6 months 30 Jun 30 Jun 30 Jun 31 Dec
2001 2000 2000 2000
3 months 6 months 3 months 12 months
Cash flow from
operations
Net result 29,214 37,701 (9,679) (3,124) 4,768
Adjustment for non (1,651) (1,745) 294 134 (2,155)
cash related items
Changes in working 5,560 2,303 1,212 179 (350)
capital
Total cash flow from 33,123 38,259 (8,173) (2,811) 2,263
operations
Investment in other - - (27) (16) (28)
fixed assets
Investment in shares - - - - (10,086)
and participations
Investment in loan - - - - (12,389)
note receivable
Investment in short 10,000 10,000 - - (10,000)
term investments
Investment in shares (1,097) (1,097) - - -
in subsidiaries
Loans to subsidiary (305,406) (297,026) (74,811) 17,223 (76,105)
companies
Sale of other fixed 9 - - - 4,056
assets
Total cash flow used (296,494) (288,123) (74,838) 17,207 (104,552)
for investments
Loans from subsidiary 280,715 267,252 34,688 8,677 -
companies
Paid deferred (895) (895) - - -
financing fees
Proceeds from share 1,671 1,671 1,353 1,353 1,353
issue
Share issue costs - - (3,941) (3,941) (4,567)
Total cash flow from 281,491 268,028 32,100 6,089 (3,214)
financing
Change in cash and 18,120 18,164 (50,911) 20,485 (105,503)
bank
Cash and bank at the 2,432 2,388 107,935 36,539 107,935
beginning of the
period
Cash and bank at the 20,552 20,552 57,024 57,024 2,432
end of the period
STATEMENT OF CHANGES IN PARENT COMPANY EQUITY
Parent company Share Share premium Legal Retained Net
Capital reserve reserve result
2001 earnings
Balance at 1 51,431 1,973,579 372,455 - 4,768
January
Transfer of prior - - - 4,768 (4,768)
year net result
New share issue 1,671 48,318 - - -
Net result - - - - 29,214
Balance at 30 June 53,102 2,021,897 372,455 4,768 29,214
FINANCIAL INFORMATION
The Company will publish the following interim reports:
* Nine months report (January - September 2001) will be published on 8
November 2001.
Stockholm, 9 August 2001
Ian H. Lundin
President
AUDITORS' REPORT
We have performed a limited review of this six months interim report at 30
June 2001 of Lundin Oil AB in accordance with a recommendation issued by FAR
(The Swedish Institute of Accountancy Profession in Sweden). A limited review
is considerably less in scope than a full audit. Nothing has come to our
attention that caused us to believe that this six months interim report at 30
June 2001 of Lundin Oil AB does not comply with the requirements of the
Swedish Annual Accounts Act.
Stockholm, 9 August 2001
Carl-Eric Bohlin Klas Brand
Authorised Public Accountant Authorised Public Accountant
PricewaterhouseCoopers AB
Notes for editors:
1. Lundin is the parent company of Sodra by virtue of its holding of
40,506,500 Ordinary Shares of SEK0.05 each. The 40,506,476 Convertible Shares
of SEK0.05 each in Sodra listed on the AIM market are effectively convertible
into the right to subscribe for B Shares in Lundin in November 2001. Upon
exercise of the conversion right, for every 12 Convertible Shares, the holder
will receive a warrant to subscribe for 1 new Lundin B Share at the nominal
value of SEK0.50.
2. Convertible Shares in Sodra are also listed on the New Market of the
Stockholm Stock Exchange. Lundin B Shares are currently quoted on the
Stockholm Stock Exchange, Toronto Stock Exchange and the Nasdaq National
Market.
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