RNS No 3147x
SODRA PETROLEUM AB
20 August 1999
Sodra Petroleum AB (publ)
Report for the period 1 January 1999 - 30 June 1999
RESULT AND CASH FLOW
The Group
Sodra Petroleum AB (Sodra) reports a group net profit of TSEK 1,406
(period to 30 June 1998 TSEK 7,880) corresponding to SEK 0.02 (SEK 0.10) per
share.
Sodra incurred administration expenses of TSEK 2,560 during the period (TSEK
1,641).
Net financial income and expenses were TSEK 3,966 (TSEK 9,521). Included was
interest received of TSEK 3,985 (TSEK 1,397) and net currency exchange losses
of TSEK 19 (profit of TSEK 8,124). Currency exchange movements arose primarily
as a result of translating loans receivable from USD to SEK.
Parent Company
The parent company reported a net profit for the period ended 30 June 1999 of
TSEK 477 (loss for the period of TSEK 2,519). The profit was the result of
service income of TSEK 2,685 (TSEK nil) and net financial income of TSEK 5
(TSEK -928) offset by administration costs of TSEK 2,213 (TSEK 1,591). 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 and IPC
Falklands Ltd, a Bermudan registered company. Sodra in its turn is a
more than 50% owned subsidiary of Lundin Oil AB.
FINANCING AND LIQUIDITY
The Group
Liquid assets at 30 June 1999 amounted to TSEK 9,507 (TSEK 220,272).
Sodra has entered into a loan agreement with its parent company Lundin Oil AB
under which Lundin Oil can borrow up to MUSD 12 from Sodra. The loan is
callable with a two week notice period. Under the terms of the loan agreement
Lundin Oil is prohibited from securing assets not currently secured under its
existing MUSD 125 bank facility. Under the loan agreement, MUSD 10.9 were
outstanding at the period end.
Parent Company
Liquid assets at 30 June 1999 amounted to TSEK 7,693 (TSEK 219,596).
INVESTMENTS
The Group
During the period, investment in oil and gas assets have been made to an
amount of TSEK 17,293 (TSEK 108,946). This represented Sodra's share of
ongoing exploration and interpretation expenditure offshore the Falkland
Islands. Oil and gas assets decreased during the period April to June
1999 due to an adjustment of the oil and gas expenditure recorded and a
reallocation of January to March 1999 expenditure between Sodra and its
joint venture partner in the Falkland Islands concession.
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 during 1998 given the disappointing drilling result and the
high level of costs incurred to that date. Expenditure of MSEK 17.3 has been
capitalised against the Falkland Islands concession during 1999. Management
will assess whether a further write-off will be required after the Robertson
Research report, as mentioned below under operations, has been completed.
Parent Company
Shares in subsidiaries at 30 June 1999 amounted to TSEK 106,013 (TSEK 96)
OPERATIONS
Sodra holds an 87.5% interest in six exploration and production licenses
covering an area known as Tranche F in Falkland territorial waters. The
remaining 12.5% interest in these licenses is held by Sodra's 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.
On the drilling operations, demobilisation of the Borgny Dolphin and the
reconciliation of the operations contract carried through most of the first
half of 1999. Analyses of geological data from the completed 14/24-1 well
were finalised and final reports were received and sent to partners.
A study of the North Falkland Basin was commissioned to Robertson Research in
the first quarter of 1999. This study attempts to analyse all the existing
data acquired through our own study and through trade with adjoining operators
to assess the hydrocarbon potential of Tranche F and the rest of the North
Falkland Basin. To date, Robertson Research has compiled all the data
available and started the first studies which involved seismic processing and
interpretation of the 9000 km of 2D seismic available in the Basin. All the
time maps have been converted to depth and the depth maps have been handed
over to a petroleum geologist for analysis and integration with the well data.
The Robertson Research report will be completed during the second half of
1999.
Sodra has one commitment well outstanding which must be completed by October
2001. Sodra's Annual General Meeting of shareholders on May 20, 1999 changed
the bylaws of the company to enable Sodra to look for oil in any part of the
world. When the Robertson report has been completed, Sodra will assess its
options for the future.
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 AB (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 are
owned by Lundin Oil, corresponding to 50.01% of the share capital.
Sodra's second largest shareholder is its Chairman Adolf H. Lundin holding
10,214,834 convertible shares, corresponding to approximately 12.6% of
the share capital.
BOARD OF DIRECTORS
At the Annual General meeting all the directors were re-elected.
GROUP KEY FINANCIAL RATIOS
1 Jan 1999 15 Dec 15 Dec
30 Jun 1997- 1997-
1999 30 Jun 31 Dec
1998 1998
Key Financial Ratios
Equity ratio, %1 92.5 95.5 72.31
Shareholders' equity SEK 1.40 3.91 1.32
per share2
Earnings SEK per share3 0.02 0.10 (2.48)
Number of shares at the 81,012,976 81,012,976 81,012,976
period end
Weighted average number
of shares for the period4 81,012,976 81,012,976 81,012,976
Definitions
1 Equity ratio is defined as the Group's shareholders' equity in relation
to total assets.
2 Shareholders' equity SEK per share is defined as the Group's
shareholders' equity divided by the number of shares at the period end.
3 Earnings SEK per share is defined as the Group's net result divided by
the weighted average number of shares for the period.
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.
GROUP INCOME STATEMENT IN SUMMARY
1 Jan 15 Dec 15 Dec
Expressed in TSEK 1999- 1997 - 1997-
30 Jun 30 Jun 31 Dec
1999 1998 1998
Write off of exploration - - (209,861)
expenditure
Administration expenses (2,560) (1,641) (3,255)
-------------------------------
Operating loss (2,560) (1,641) (213,116)
Financial income and 3,966 9,521 12,086
expenses, net -------------------------------
Net result 1,406 7,880 (201,030)
GROUP BALANCE SHEET IN SUMMARY
Expressed in TSEK 30 June 30 June 31 Dec
1999 1998 1998
ASSETS
Tangible fixed assets
Oil and gas properties 17,293 108,946 -
-------------------------------
17,293 108,946 -
Current Assets
Loan to associated 92,230 - 75,456
company
Other current assets 3,490 2,390 3,040
Cash and bank 9,507 220,272 68,916
-------------------------------
Total current assets 105,227 222,662 147,412
-------------------------------
Total assets 122,520 331,608 147,412
SHAREHOLDERS' EQUITY
AND LIABILITIES
Shareholders' equity 113,299 316,612 106,597
including net result for
the financial period
Current liabilities 9,221 14,996 40,815
-------------------------------
Total shareholders' equity 122,520 331,608 147,412
and liabilities
Pledged assets - - -
Contingent liabilities 250 - -
GROUP STATEMENTS OF CASH FLOWS
Expressed in TSEK 1 Jan 15 Dec 15 Dec
1999 1997- 1997-
30 Jun 30 Jun 31 Dec
1999 1998 1998
Cash flow from operations:
Net result 1,406 7,880 (201,030)
Adjustments for non-cash - - 198,443
related items
Change in working capital (45,241) 12,024 (38,915)
-------------------------------
Total cash flow from (43,835) 19,904 (41,502)
operations
Cash flow used for
investments:
Investment in oil and gas (17,293) (108,945) (209,861)
properties -------------------------------
Total cash flow used for (17,293) (108,945) (209,861)
investments
Cash flow from financing
Proceeds from share issues - 309,313 320,279
-------------------------------
Total cash flow from - 309,313 320,279
financing
Other 1,719 - -
-------------------------------
Change in cash and bank (59,409) 220,272 68,916
PARENT COMPANY INCOME STATEMENT IN SUMMARY
1 Jan 15 Dec 15 Dec
Expressed in TSEK 1999- 1997- 1997-
30 Jun 30 Jun 31 Dec
1999 1998 1998
Service income 2,685 - -
Administration expenses (2,213) (1,591) (3,127)
------------------------------
Operating profit / loss 472 (1,591) (3,127)
Financial income and 5 (928) (210,555)
expenses, net ------------------------------
Net result 477 (2,519) (213,682)
PARENT COMPANY STATEMENTS OF CASH FLOWS IN SUMMARY
Expressed in TSEK 1 Jan 15 Dec 15 Dec
1999- 1997- 1997 -
30 Jun 30 Jun 31 Dec
1999 1998 1998
Cash flow from operations:
Net result 477 (2,519) (213,682)
Adjustments for non-cash - - 209,169
related items
Change in working capital (26,634) (98,068) 33,266
-------------------------------
Total cash flow from (26,157) (100,587) 28,753
operations
Cashflow used for
investments:
Investments in subsidiaries - (96) (315,182)
-------------------------------
Total cash flow used for - (96) (315,182)
investments
Cash flow from financing
Proceeds from share issues - 320,279 320,279
-------------------------------
Total cash flow from - 320,279 320,279
financing -------------------------------
Change in cash and bank (26,157) 219,596 33,850
Stockholm, 20 August 1999
Magnus Nordin
Managing Director
9 month report (January - September) will be published 19 November 1999.
For further information, please contact:
Magnus Nordin, Managing Director Tel: +46 8 440 54 50
Sodra Petroleum AB
Simon Rothschild/Nicholas Nelson Tel: 0171 256 5756
Millham Communications
AUDITORS' REPORT
We have performed a limited review of this six months interim report at 30
June 1999 of Sodra Petroleum AB in accordance with a recommendation issued by
the Swedish Institute of Authorised Public Accountants (FAR). This 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 1999 of Sodra Petroleum AB does not comply with the requirements of
the Swedish Annual Accounts Act.
Stockholm, 20 August 1999
Carl-Eric Bohlin Klas Brand
Authorised Public Accountant Authorised Public Accountant
PriceWaterhouseCoopers KB
END
IR SEIFSSUUUFLA
Spg Media (LSE:SPM)
Historical Stock Chart
From May 2024 to Jun 2024
Spg Media (LSE:SPM)
Historical Stock Chart
From Jun 2023 to Jun 2024
