Financial Management Accounts
Salamander Energy Group (a subsidiary group of Ophir Energy Plc) submits its Financial Management Accounts for the six month period ending 30thJune 2015
Salamander Energy PLC Group - Management Accounts
Consolidated statement of comprehensive income
Six months ended 30 June 2015
| Six months ended 30 June 2015(Unaudited) | Six months ended 30 June 2014(Unaudited) | Year ended 31 December 2014 | |
| $’000s | $’000s | $’000s | |
| CONTINUING OPERATIONS | |||
| Revenue | 139,873 | 177,781 | 415,157 |
| Cost of sales: | |||
| Operating costs | (19,071) | (39,689) | (75,891) |
| Royalty payable | (12,670) | (15,460) | (38,496) |
| Amortisation of oil and gas properties | (62,073) | (40,813) | (105,952) |
| Movement in inventories of oil | (11,947) | 6,602 | (765) |
| Total cost of sales | (105,761) | (89,360) | (221,104) |
| Gross profit | 34,112 | 88,421 | 194,053 |
| Exploration expenses: | |||
| Pre-licence exploration expenses | (8,448) | (3,973) | (4,027) |
| Exploration costs written off | (392) | (2,729) | (55,865) |
| Total exploration expenses | (8,840) | (6,702) | (59,892) |
| Share of profit of investments accounted for using the equity method | 5,750 | 7,856 | 13,558 |
| Loss on disposal of assets | (549) | - | - |
| Administration expenses | (6,491) | (4,996) | (26,079) |
| Operating profit | 23,982 | 84,579 | 121,640 |
| Interest revenue | 28 | 81 | 124 |
| Finance costs | (15,375) | (16,917) | (33,257) |
| Other financial losses | (1,836) | (1,332) | (3,965) |
| Profit before tax | 6,799 | 66,411 | 84,542 |
| Taxation: | |||
| Current tax | (45,490) | (49,189) | (89,838) |
| Deferred tax | 23,832 | (45,107) | (43,710) |
| Total Taxation | (21,658) | (94,296) | (133,548) |
| Loss after taxation | (14,859) | (27,885) | (49,006) |
| Loss on cash flow hedges | (9,584) | (2,135) | 19,779 |
| Total comprehensive loss for the period | (24,443) | (30,020) | (29,227) |
| Salamander Energy PLC Group - Management AccountsConsolidated statement of change in equitySix months ended 30 June 2015 | |||||
| Share Capital | Share Premium | Other Reserves | Retained Loss | Total | |
| $'000s | $'000s | $'000s | $'000s | $'000s | |
| 1 January 2014 | 46,842 | 563,703 | 273,389 | (481,521) | 402,413 |
| Ordinary shares issued | 87 | - | - | - | 87 |
| Share-based payments | - | - | 2,538 | - | 2,538 |
| Comprehensive loss for the period | - | - | (2,135) | (27,885) | (30,020) |
| 30 June 2014 | 46,929 | 563,703 | 273,792 | (509,406) | 375,018 |
| Ordinary shares issued | 48 | - | - | - | 48 |
| Share-based payments | - | - | 3,922 | - | 3,922 |
| Convertible bond | - | - | (44) | - | (44) |
| Comprehensive loss for the period | - | - | 21,914 | (21,121) | 793 |
| 31 December 2014 | 46,977 | 563,703 | 299,584 | (530,527) | 379,737 |
| Ordinary shares issued | 1,084 | 246,880 | - | - | 247,964 |
| Share-based payments | - | - | (4,247) | - | (4,247) |
| Convertible bond | (12) | (12) | |||
| Comprehensive loss for the period | - | - | (9,584) | (14,859) | (24,443) |
| 30 June 2015 | 48,061 | 810,571 | 285,753 | (545,386) | 598,999 |
Other reserves
Other reserves comprise:
| Six months ended 30 June 2015(Unaudited) | Six months ended 30 June 2014(Unaudited) | Year ended 31 December 2014 | |
| $’000s | $’000s | $’000s | |
| Share-based payment reserve | 26,949 | 27,271 | 31,193 |
| Convertible bonds | 11,224 | 11,271 | 11,227 |
| Hedge reserve | 5,849 | (6,481) | 15,433 |
| Merger reserve | 241,731 | 241,731 | 241,731 |
| Total other reserves | 285,753 | 273,792 | 299,584 |
| Salamander Energy PLC Group - Management AccountsConsolidated balance sheetAt 30 June 2015 | |||
| 30 June2015(Unaudited) | 30 June2014(Unaudited) | 31 December2014 | |
| $’000s | $’000s | $’000s | |
| Assets | |||
| Non-current assets | |||
| Intangible exploration and evaluation assets | 292,912 | 325,979 | 284,098 |
| Property, plant and equipment | 716,391 | 725,104 | 763,869 |
| Other receivables: | |||
| Restricted bank deposits | 18,000 | 19,439 | 18,000 |
| Other | 38,224 | 37,772 | 40,258 |
| Investments accounted for using the equity method | 43,388 | 36,664 | 34,784 |
| Total non-current assets | 1,108,915 | 1,144,958 | 1,141,009 |
| Current assets | |||
| Inventories | 19,621 | 51,228 | 29,347 |
| Trade and other receivables | 42,067 | 25,033 | 41,316 |
| Restricted bank deposits | 1,839 | 843 | 1,446 |
| Cash and cash equivalents | 78,096 | 133,773 | 98,917 |
| Total current assets | 141,623 | 210,877 | 171,026 |
| Total assets | 1,250,538 | 1,355,835 | 1,312,035 |
| Liabilities | |||
| Non-current liabilities | |||
| Bank borrowings | (150,387) | (223,632) | (170,551) |
| Bonds payable | (102,272) | (145,596) | (145,986) |
| Provisions | (64,597) | (52,614) | (64,127) |
| Deferred tax liability | (190,329) | (215,559) | (214,161) |
| Total non-current liabilities | (507,585) | (637,401) | (594,825) |
| Current liabilities | |||
| Trade and other payables | (40,853) | (95,857) | (84,200) |
| Bank borrowings due within one year | (53,332) | (80,226) | (76,871) |
| Convertible bonds | - | (91,897) | (93,543) |
| Current tax liability | (49,769) | (75,436) | (82,859) |
| Total current liabilities | (143,954) | (343,416) | (337,473) |
| Total liabilities | (651,539) | (980,817) | (932,298) |
| Net assets | 598,999 | 375,018 | 379,737 |
| Equity | |||
| Share capital | 48,061 | 46,929 | 46,977 |
| Share premium | 810,571 | 563,703 | 563,703 |
| Other reserves | 285,753 | 273,792 | 299,584 |
| Retained loss | (545,386) | (509,406) | (530,527) |
| Total equity | 598,999 | 375,018 | 379,737 |
| Salamander Energy PLC Group - Management AccountsConsolidated cash flow statementSix months ended 30 June 2015 | |||
| Six months ended 30 June 2015(Unaudited) | Six months ended 30 June 2014(Unaudited) | Year ended 31 December 2014 | |
| $’000s | $’000s | $’000s | |
| Cash flow from operating activities | |||
| Profit before tax | 6,799 | 66,411 | 84,542 |
| Adjustments for: | |||
| Amortisation, depreciation and impairment of PPE | 62,940 | 41,053 | 106,944 |
| Exploration write-offs | 8,840 | 2,729 | 55,865 |
| Loss on disposal of assets | 549 | - | - |
| Interest revenue | (28) | (81) | (124) |
| Finance costs | 15,375 | 16,917 | 33,257 |
| Other financial losses | 1,836 | 1,332 | 3,965 |
| Share of profit of investments in APICO | (5,750) | (7,856) | (13,558) |
| Share-based payment | 4,247 | 2,179 | 5,472 |
| Operating cash flow prior to movement in working capital | 94,808 | 122,684 | 276,363 |
| Decrease/(Increase) in oil inventories | 11,947 | (6,496) | 765 |
| (Increase)/decrease in trade and other receivables | (15,388) | 5,845 | 7,311 |
| (Increase) in trade and other payables | (9,155) | (6,847) | (1,813) |
| Cash generated from operations | 82,212 | 115,186 | 282,626 |
| Payment of tax | (78,582) | (111,338) | (144,527) |
| Net cash from operating activities | 3,630 | 3,848 | 138,099 |
| Investing activities | |||
| Expenditure on intangible assets | (23,143) | (33,946) | (90,890) |
| Purchase of property, plant and equipment | (39,644) | (96,124) | (195,344) |
| Dividend received from investments | 1,087 | 1,359 | 8,969 |
| Increase in investments | (3,941) | (272) | (167) |
| Proceeds from disposal of assets | (549) | - | - |
| Insurance receipts | - | - | 53,761 |
| Movement in other receivables | (404) | (3) | 833 |
| Interest received | 28 | 81 | 124 |
| Net cash used in investing activities | (66,566) | (128,905) | (222,714) |
| Financing activities | |||
| Interest paid | (18,882) | (16,787) | (30,537) |
| Other financial receipts and payments | (446) | (7,652) | (4,817) |
| Cash flows in respect of long-term bank borrowings: | |||
| Repayment of borrowings facilities | (44,088) | (6,242) | (31,460) |
| Drawdown of borrowings facilities | - | 42,758 | 9,842 |
| Cash flow in respect of shares issued (gross proceeds) | 247,084 | 87 | 135 |
| Cash flow in respect of bonds issued: | |||
| Redemption of convertible bond | (94,000) | - | (6,000) |
| Settlement of bonds payable | (45,652) | - | - |
| Net cash from financing activities | 44,016 | 12,164 | (62,837) |
| Net (decrease) in cash and cash equivalents | (18,920) | (112,893) | (147,452) |
| Cash and cash equivalents at the beginning of the year | 98,917 | 244,769 | 244,769 |
| Effect of foreign exchange rate changes | (1,901) | 1,897 | 1,600 |
| Cash and cash equivalents at the end of the year | 78,096 | 133,773 | 98,917 |