Information from Q3 2015 Misen Energy AB (publ)
Following is a summary of the financial information given in the Q3 2015 report from Misen Energy AB (publ) published today, 27 November 2015. The complete report is available in both English and Swedish on the Company's website: http://misenenergy.se/en/main/investors/reports_eng
Summary of results:
- Investment program was negatively affected by constantly increasing subsoil charge levels during Q1-Q3 2015 what resulted only in marginal increase of production levels during the nine months of 2015.
- During nine months 2015 Misen led Joint Activity (hereinafter JA) faced lower sales prices, increased subsoil charges and weakening Ukrainian currency, what resulted in consolidated operating group income being lower by 87% when compared to nine month 2014 and consolidated group net turnover being lower by 14%.
- Accumulated earnings per share for nine months 2015 are 93.6% lower than for nine months 2014.
- For the period of Q3 2015, the subsoil use charge for JAs operating in Ukraine was increased from 65% to 70%.
- During Q3 2015, JA commissioned four booster compressor stations.
- During Q3 2015, Ukrainian currency remained relatively stable in its value in relation to SEK, however, the net effect during nine month 2015 remains negative with the rate of UAH towards SEK decreasing by -19.8%.
January – September 2015 (2014):
- Consolidated operating group income: KSEK 50,109 (389,800)
- Consolidated group net turnover: KSEK 673,921 (784,565)
- Earnings per share: SEK 0.10 (1.57)
- Production of natural gas: 523.7 million cubic meters (515.0)
Key events after end of Q3 2015:
- In early October 2015, Misen has submitted an investment dispute notice to the Government of Ukraine under the Ukrainian-Swedish Bilateral Investment Treaty. Misen notified Ukraine that a dispute has arisen between it and Ukraine concerning the Company’s investment in Ukraine, which is being continuously targeted with discriminatory 70% royalty on gas prices fixed by the regulator, and invited Ukraine to resolve the dispute by consultation and negotiation.
For further information, please contact:
Göran Wolff, MD
Misen Energy AB (publ) is a Swedish upstream oil and gas company with operations in Ukraine. The company was founded in 2004 and its shares are since 12 June 2007 traded on Nasdaq First North Stockholm.
In 2011, Misen Energy AB (publ) acquired Misen Enterprises AB and its Ukrainian subsidiary, LLC Karpatygaz, including the rights to 50.01% of the revenue and profit from a gas production project in Ukraine. In consideration of this acquisition, a new share issue was carried out.
The gas producing assets have been acquired by production cooperation via a joint activity project governed by a Joint Activity Agreement between the wholly-owned direct and indirect subsidiaries of Misen Energy AB (publ), i.e. Misen Enterprises AB and LLC Karpatygaz (together 50.01%) and PJSC Ukrgasvydobuvannya (49.99%), the largest producer of natural gas in Ukraine and subsidiary of the National Joint Stock Company Naftogaz of Ukraine. The value of the assets is estimated to be substantially higher than the purchase price for Misen Enterprises AB. The purpose of the project is to significantly increase production of gas and oil by providing modern technologies via a large-scale investment program.
The registered office of Misen Energy AB (publ) is in Stockholm and the shares are traded on First North under identification ticker MISE. The Certified Adviser of the company at Nasdaq First North Stockholm is Consensus Asset Management AB.
For further information, please visit our website www.misenenergy.se.