Final Results -4-
March 17 2009 - 3:00AM
UK Regulatory
2008, the Directors have recommended paying an ordinary final dividend of 13
pence per share, an 8% increase over last year.
If approved at the forthcoming Annual General Meeting the final dividend will be
paid on 28 May 2009 to shareholders on the register at the close of business on
24 April 2009, with an ex-dividend date of 22 April 2009.
Going forward, Venture's capital return policy will continue to reflect the
principal uncertainties in its business namely commodity price volatility,
variable capital expenditure requirements and the unpredictable timing of
acquisition opportunities.
Annual General Meeting
The Company will be holding its Annual General Meeting at The Marcliffe Hotel
and Spa, North Deeside Road, Aberdeen on Thursday 14 May 2009 at 2.00pm and the
2008 Annual Report & Accounts, Notice of Meeting and Form of Proxy will be
issued in early April 2009.
Current Trading and Outlook
Overall, during 2008 Venture made excellent progress in a challenging operating
environment and difficult global economic conditions with the Company benefiting
from record cash flow from production operations and a strong balance sheet.
While global oil prices fell significantly during the second half of 2008, the
majority of Venture's production was gas, thereby lessening the impact of oil
price on Venture's financial performance. While UK gas prices have weakened
recently and we anticipate short term volatility, the longer term fundamentals
and overall outlook for gas pricing remains favourable. In addition, we already
have commodity price hedging in place which will protect a significant
proportion of our production during 2009 and 2010.
Venture's balance sheet remains strong, with cash and cash equivalents of
approximately GBP200 million at year end and a fully committed GBP365 million
syndicated corporate bank facility which is as yet undrawn apart from letters of
credit.
Our 2009 capital expenditure programme, excluding acquisitions, is expected to
total approximately GBP300 million and, based on the current commodity price
outlook, is anticipated to be predominately funded out of operating cash flow.
2009 has started well and we are seeing the impact of our 2008 development
projects and the continuing strong underlying performance of our core fields.
During 2009 we also anticipate additional production contributions from the
second Chestnut production well and the Eris and Ceres gas fields. As a result,
in aggregate we expect modest production growth in 2009 over 2008 levels.
The Board is mindful of the very challenging and volatile external economic
conditions and remains focused on preserving flexibility to respond as external
circumstances change. However, as a result of the strong operating performance
of our business combined with our financial position, the Board remains
confident of the outlook for Venture's business in 2009 and beyond.
17 March 2009
John Morgan
Mike Wagstaff
Chairman
Chief Executive
Group Income Statement
For the year ended 31 December 2008
+--------------------------------------+-------+-----------+-----------+
| | | | |
+--------------------------------------+-------+-----------+-----------+
| | | 2008 | 2007 |
+--------------------------------------+-------+-----------+-----------+
| |Notes | GBP'000 | GBP'000 |
+--------------------------------------+-------+-----------+-----------+
| | | | |
+--------------------------------------+-------+-----------+-----------+
| Revenue | 2 | 494,878 | 358,295 |
+--------------------------------------+-------+-----------+-----------+
| Cost of sales | | (248,085) | (171,703) |
+--------------------------------------+-------+-----------+-----------+
| Development costs written off | 3 | - | (11,207) |
+--------------------------------------+-------+-----------+-----------+
| Impairment of assets | 3 | (6,200) | (33,463) |
+--------------------------------------+-------+-----------+-----------+
| | | | |
+--------------------------------------+-------+-----------+-----------+
| Gross profit | | 240,593 | 141,922 |
+--------------------------------------+-------+-----------+-----------+
| | | | |
+--------------------------------------+-------+-----------+-----------+
| Exploration costs written off | 3 | - | (18,144) |
+--------------------------------------+-------+-----------+-----------+
| Administrative expenses | | (9,047) | (8,815) |
+--------------------------------------+-------+-----------+-----------+
| (Loss)/gain on foreign exchange | 3 | (491) | 496 |
+--------------------------------------+-------+-----------+-----------+
| Gain on disposal of subsidiary | 4 | - | 251 |
+--------------------------------------+-------+-----------+-----------+
| Other operating income | | 19 | 929 |
+--------------------------------------+-------+-----------+-----------+
| | | | |
+--------------------------------------+-------+-----------+-----------+
| Operating profit | 3 | 231,074 | 116,639 |
+--------------------------------------+-------+-----------+-----------+
| | | | |
+--------------------------------------+-------+-----------+-----------+
| Finance income | 5 | 4,998 | 4,442 |
+--------------------------------------+-------+-----------+-----------+
| Finance expense | 5 | (39,499) | (19,122) |
+--------------------------------------+-------+-----------+-----------+
| Change in fair value of derivative | 22 | (6,253) | (1,903) |
| financial instruments | | | |
+--------------------------------------+-------+-----------+-----------+
| Share of (loss)/profit of associates | 12 | (6,131) | 1,151 |
+--------------------------------------+-------+-----------+-----------+
| | | | |
+--------------------------------------+-------+-----------+-----------+
| Profit before tax | | 184,189 | 101,207 |
+--------------------------------------+-------+-----------+-----------+
| | | | |
+--------------------------------------+-------+-----------+-----------+
| Income tax expense | 6 | (107,533) | (53,032) |
+--------------------------------------+-------+-----------+-----------+
| | | | |
+--------------------------------------+-------+-----------+-----------+
| Profit for the financial year | | 76,656 | 48,175 |
+--------------------------------------+-------+-----------+-----------+
| | | | |
+--------------------------------------+-------+-----------+-----------+
| Earnings per ordinary share | | | |
+--------------------------------------+-------+-----------+-----------+
| Basic earnings per share | 7 | 52.7p | 35.6p |
+--------------------------------------+-------+-----------+-----------+
| Diluted earnings per share | 7 | 50.5p | 33.9p |
+--------------------------------------+-------+-----------+-----------+
| Dividends paid per ordinary share | | | |
+--------------------------------------+-------+-----------+-----------+
| Special dividend paid per share | 8 | - | 40.0p |
+--------------------------------------+-------+-----------+-----------+
| Ordinary dividend paid per share | 8 | 12.0p | 10.0p |
+--------------------------------------+-------+-----------+-----------+
All items dealt with in arriving at the profit for the year relate to continuing
activities.
Statement of Recognised Income and Expense
For the year ended 31 December 2008
+-------------------------------+----------+----------+----------+----------+
| | Group | Company |
+-------------------------------+---------------------+---------------------+
| | 2008 | 2007 | 2008 | 2007 |
+-------------------------------+----------+----------+----------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------------------------+----------+----------+----------+----------+
| Profit for the financial year | 76,656 | 48,175 | 33,060 | 105,527 |
+-------------------------------+----------+----------+----------+----------+
| | | | | |
+-------------------------------+----------+----------+----------+----------+
| Cash flow hedges: | | | | |
+-------------------------------+----------+----------+----------+----------+
| - Fair value | 30,078 | (42,453) | - | - |
| gains/(losses) net | | | | |
| of tax (Note 26) | | | | |
+-------------------------------+----------+----------+----------+----------+
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