CADOGAN PETROLEUM PLC
Half Yearly Report
for the Six Months ended 30 June
2020
(Unaudited and
unreviewed)
Highlights
Cadogan Petroleum plc (“Cadogan” or the “Company”), an
independent, diversified oil & gas company listed on the main
market of the London Stock Exchange, is pleased to announce its
unaudited results for the six months ended 30 June 2020.
- H1 2020 has been another semester without LTI and TRI with no
cases of covid-19 infection among our employees
- Average production was 230bpd in H1 2020 (297 boepd in H1
2019), a 23% decrease versus H1 2019. This was mainly due to the
shut-down during this period of the Blazhiv-3 and
Blazhiv-Monastyrets-3 wells for 5,5 months.
- License authority of Ukraine
(State Geological Service) rejected in May
2020 the Biltyanska 20-year exploration and production
license application notwithstanding full compliance and timely
submission. The Company introduced a claim before the Kiev District
Administrative Court to challenge the decision of non granting the
license.
- In Ukraine from January to
July 2020, hydrocarbon prices
decreased significantly compared to the same period in 2019, the
price of natural gas decreased by more than 45% and more than 30%
for oil and gas condensate.
- Cadogan decided not to sell
its stored gas acquired during 2019 waiting for appropriate market
prices.
- The services business continued to support the
Group’activities, thus retaining funds within the Group.
- Production revenues decreased by 46 % versus the same period in
2019, due to a 33% reduction in the average realized oil price and
a 23% decrease of the production volumes. Overall revenues
were down by 62% versus the same period in 2019 due to the absence
of sales of gas . Cost saving initiatives have been taken to
mitigate the negative effects.
- As a result of the above initiatives, cash position at
the period end was $11.6 million
(30 June 2019: $13.7 million). This level of cash is sufficient
to sustain on-going operations.
Overall, the first half of 2020 was impacted by the global
impact of covid-19 pandemic, extreme price volatility in oil
market, a severe drop down of gas prices, and the shut-down for 5,5
months of the production of Blazhiv-3 and Blazhiv-Monastyrets-3
wells. This affected Cadogan’s strategy in 2020 and constrained the
Group to review and partly postpone its investment strategy (incl.
new drilling). Looking ahead, the Company is confident that strong
management and competent staff will ensure a positive outcome for
the company in such uncertain and challenging environment.
Key performance indicators
During H1 2020, The Group has monitored its performance in
conducting its business with reference to a number of key
performance indicators (‘KPIs’):
- to increase oil, gas and condensate production measured on the
barrels of oil equivalent produced per day (‘boepd’);
- to decrease administrative expenses;
- to increase the Group’s basic earnings per share;
- to maintain no lost time incident; and
- to grow and geographically diversify the portfolio.
The Group’s performance during the first six months of 2020,
measured against these targets, is set out in the table below,
together with the prior year performance data. No changes have been
made to the sources of data or calculations used in the
period/year. The positive trend in the HSE performances continues
with zero incidents.
|
Unit |
30
June 2020 |
30
June 2019 |
31
December 2019 |
|
|
|
|
|
Average production
(working interest basis) (a) |
Boepd |
230 |
297 |
288 |
Administrative
expenses |
$million |
1.5 |
2.0 |
5.7 |
Basic (loss)/profit
per share (b) |
Cent |
(0.6) |
1.1 |
(0.9) |
Lost time incidents
(c) |
Incidents |
0 |
0 |
0 |
Geographical
diversification |
New
assets |
- |
- |
1(d) |
- Average production is calculated as the average daily
production during the period/year
- Basic (loss)/profit per ordinary share is calculated by
dividing the net (loss)/profit for the year attributable to equity
holders of the parent company by the weighted average number of
ordinary shares during the period
- Lost time incidents relate to injuries where an
employee/contractor is injured and has time off work (IOGP
classification)
- Loan agreement with Proger Management & Partners with its
option to convert. The loan was signed in February 2019
An update of the KPI’s table will be proposed to the Board in
order to better reflect the current status of the Company and its
medium-term objectives. The new KPI’s will become effective from
2021 if approved by the Board.
Enquiries:
Cadogan Petroleum
Plc |
|
|
Fady
Khallouf
Ben Harber |
Chief
Executive Officer
Company Secretary |
fady.khallouf@cadogan petroleum.com
+44 (0) 207 264 4366 |
Summary
Introduction
The world economic crisis which resulted from the pandemic of
corona virus and the oil & gas market turbulence has severely
affected Ukraine and Cadogan’s
activities. The first half of the year witnessed a substantial drop
of the Brent oil price, from more than 65 $/bbl in
January 2020 to 20 $/bbl in April and
slight recovery to 35 $/bbl in June
2020.
The first semester of 2020 has been another challenging time for
Ukraine. After last year’s
presidential and parliament elections, the new empowered officials
have not yet been successful in resolving the military
confrontation with Russia at the
East of Ukraine as well as
in improving the economic situation in the Country. The Cabinet of
Ministers headed by the Prime Minister Olkesiy Goncharuk has been
replaced, in March 2020, after 6
months of work, by the one of Denys Shmygal.
The continued efforts of Ukraine to attract new investments in its oil
and gas sector, with the modernization of oil and gas regulatory
framework, have been countered by the shut down period and the
economic turmoil of this market. An amendment to the license award
procedure was introduced and took effect on 25 February 2020. The new regulatory framework
introduced changes in the necessary criteria for the awarding of
licenses out of the auction procedure without taking into account
the prior licenses’ applications already engaged before that date.
This created retroactiveness effects of the new law and led to
automatic rejections in the award process on this basis. As for
several other companies, this has also affected the Biltyanska
20-year operation license application engaged by Cadogan in 2019.
In this challenging context the Group has continued to focus on
safely and efficiently operating the existing wells, on controlling
its costs in order to preserve cash while continuing to look at
opportunities to grow and diversify its portfolio.
Operations
E&P activity remained focused on maintaining and securing
its licenses for the new term and safely and efficiently producing
from the existing wells within the Blazhiv oil field. During
H1 2020,the average gross production rated at 230 bpd, which is 23%
lower than in H1 2019 (297 boepd). The production decrease in the
reported period was caused by the shut-down of the Blazhiv-3 and
Blazhiv-Monasterets-3 wells due to the expiry of the lease
agreements with Ukrnafta and the necessary needed time for their
renewal. Production in these wells has been resumed on June 19th. In order to mitigate oil
price volatility and in preparation of the future strategy for the
increase of the production, the Company installed on the Blazhiv
field additional 350 m3 oil storage tanks .
Regarding the Bitlyanska 20-year exploration and development
license, given the delay to award the license by the State
Geological Service (SGS) beyond the regular timeline provided by
legislation and the further rejection of the application on the
basis of the new regulatory framework that took effect on
25 February 2020, Cadogan launched a claim before the
Administrative Court to challenge the non-granting of the license
by the Licensing Authority.
All activities were executed without LTI or TRI[1], with a total
of nearly 1,200,000 manhours since the last incident, which
occurred to a sub-contractor, in February
2016. Emission to the atmosphere were reduced to 62.37 tons
of Co2,e/boe produced, compared to 89.4 tons of Co2,e/boe of the
same reporting period of last year.
In Italy, given the on-going
moratorium for the approval of new licenses, activity was focused
on maintaining liaisons with the local authorities and fulfilling
the mandatory license requirements.
Trading
The signing of an agreement on gas transportation between
Russia and Ukraine, an abnormally warm winter in
Europe and Asia, and the economic impact of the pandemic
Covid 19 ended in a further extraordinary decrease of the gas
prices.
Cadogan continues to monitor
the gas markets in Europe and
Ukraine, in particular the
unbundling of gas transmission system operator, with the final
stage of the process of separating the gas transmission system of
Ukraine from Naftogaz. The unsold
gas during last year was kept in storage with the expectation of
higher prices during the following heating season.
Proger
During the first half of 2020, Cadogan has been monitoring the protection of
its interests in Proger through the Loan Agreement and the Option
to convert it, subject to Cadogan’s shareholders approval,
into a 33% direct equity position in Proger Ingegneria. This
led at the end of July 2020 in the
effective nomination of a new representative of the Group as Board
Director of Proger Ingegneria and Proger, and the effective
nomination of another Group’s representative as member of the Board
of Statutory Auditors of Proger Ingegneria. Prior to this date, the
Company has had no representation on the Board of Proger Ingegneria
and Proger since the resignation of Guido Michelloti as a Director
of the Company in November 2019 and
had been unable to effectively exercise its right to Board
representation under the loan agreement. Cadogan has recently received legal and
financial information communicated by Proger and related to
Proger’s activities for 2019 which the Company is presently
analyzing. However, the Company is still to receive information
regarding H1 2020 trading and critical information regarding
forecasts and the new business plan of Proger for the next
years.
[1] Lost Time Incident, Total Recordable Incident
Financial position
Cash at 30 June 2020 was
$11.6 million ($13.7 million). The Group continually monitors
its exposure to currency risk. It maintains a portfolio of cash
mainly in US Dollars (“USD”) and EURO held primarily in the UK.
The Directors believe that the capital available at the date of
this report is sufficient for the Group to continue its operations
for the foreseeable future.
Outlook
Cadogan remains with a solid
balance sheet with no debts and a good cash position, with the
resources and competences necessary to continue its activities and
pursue its development.
In Ukraine, gas trading, which
had become unprofitable, cannot be a major activity for
Cadogan. The company is focusing
on its oil operations and a more value accretive and comprehensive
diversification of its activities.
Additionally, while our assets are robust and cash generative,
the situation regarding Covid-19 and its potential impact on the
global economy and our operations remains uncertain and is rapidly
changing. We continue to monitor the impact of these developments
on our industry, our operations and - most importantly - our staff
and contractors.
The Company will continue to actively pursue opportunities
outside of Ukraine, to leverage
its competence and low-cost structure in order to create long term
value for its shareholders. In parallel, the Company will
work with Proger to develop all necessary actions to ensure the
proper fulfilment of the counterparts’ obligations under this
agreement.
Operations
Review
In H1 2020, the Group held working interests in two (2019: two)
conventional gas-condensate and oil exploration and production
licences in the West of Ukraine.
These assets are operated by the Group and are located in the
prolific Carpathian basin, close to the Ukrainian oil & gas
distribution infrastructure.
The Group’s primary focus during the period continued to be on
cost optimisation and enhancement of current production, through
the existing well stock and new drilling.
Summary of the Group’s licences (as of 30 June
2020) |
Working
interest (%) |
Licence |
Expiry |
Licence type |
99.8 |
Blazhiv |
November 2039 |
Production |
99.2 |
Bitlyanska(1) |
December 2019 |
Exploration and
Development |
(1) The Bitlyanska license expired on 23
December 2019 and its renewal was not granted within
the due legal period. The Company is involved in ongoing court
proceeding to defend its rights and challenge the Licensing
Authority actions after the rejection by the State Geological
Service of its Bitlyanska 20-year production license application
and its Pirkivska exploration and development license
application.
Below we provide an update to the full Operations Review
contained in 2019 Annual Report published on 4 May 2020.
Bitlyanska license
Cadogan has filed to the State
Geological Service an application for a 20-year production license
5 months ahead the license expiry date of the 23rd
December 2019 and secured all
intermediary approvals including Environmental Impact Assessment
study by the Ministry of Ecology, the approval of the Reserves
Report by the State Commission of Reserves and the approval of the
license award by the Lviv Regional Council. Due to the delay to
award the new license beyond the regular timeline provided by
legislation to the State Geological Service and further rejection
of the application on the basis of the new regulatory requirements
that were enforced six months after the fully compliance of
Cadogan’s application which was submitted according to the previous
law, Cadogan launched a claim
before the Kiev Administrative Court to challenge the non-granting
of the license by the Licensing Authority.
All operational activities as well as area farm-out have been
put on-hold waiting for the license award.
Blazhiv licence
Through the reporting period the Company has been working to
safely and efficiently producing from the existing wells located in
the Blazhiv license area. At the end of the reporting period, the
average gross production rated at 230 bpd vs 297 bpd in H1 2019.
The production decrease was caused by the shut-down of the
Blazhiv-3 and Blazhiv-Monastyrets-3 wells, due to the expiry of the
lease agreements with Ukrnafta. These agreements have been extended
on June 19th for a new
3-year term with minor adjustments.
The Company has performed successful work-over on the Blazhiv-10
well with the replacement of the sucker rod pump. Currently, all
the four wells are producing with an average rate over 390 bpd as
of 30 June 2020.
The company has also commissioned additional crude oil storage
facilities on the Blazhiv field by increasing the cumulative volume
up to 800m3. This should allow to manage favorably short term oil
price volatility.
Service Company
activities
In H1 2020, Cadogan’s 100% owned subsidiary, Astro Service LLC,
focused its activities on serving intra-group operational
needs in wells’ work-over/ re-entry operations as well as field
on-site activities.
Financial
Review
Overview
Income statement
In H1 2020, revenues decreased to $1.2
million (30 June 2019:
$3.3 million), due to the absence
of gas trading sales (30 June
2019: $0.9 million) and the
reduced production . Revenues from production decreased to
$1.2 million (30 June 2019: $2.3
million) due to a lower realized price (decrease of 33%) and
a decrease in the production volumes by 23%. This latter is mainly
due to the delay in obtaining the renewal of the lease agreements
for Blazhiv 3 and Blazhiv-Monastyrets 3.
Due to the covid 19 shut-down, the services business
concentrated its activities on intra-group services, in particular,
for the Blazhivska license.
The cost of sales of the production segment consists of
$0.5 million of production royalties
($1.1 million), $0.2 million of
operating costs ($0.2 million),
$0.3 million of depreciation and
depletion of producing wells ($0.3
million), and $0.1 million of
direct staff costs for production ($0.1
million).
Half year gross profit from production activities decreased
marginally to $0.2 million
(30 June 2019: $0.5 million), driven by decrease in production
and lower oil prices.
Provision against gas inventory of $0.6
million (30 June 2019:
$0.7 million) represents the
impairment loss on the value of its natural gas in storage due to
revaluation to market price at the end of the reporting period.
Impairment of other assets of $0.1
million (30 June 2019:
reversal of impairment $0.3 million)
represents movement in provision for recoverable VAT.
The Group recorded a $0.4 million
increase in the fair value of the Proger Loan, which is held at
fair value through profit and loss under IFRS. Refer to note 11 for
details.
Other administrative expenses were kept under control at
$1.5 million (30 June 2019: $2.0
million). They comprise other staff costs, professional
fees, Directors’ remuneration and depreciation charges on
non-producing property, plant and equipment.
Balance sheet
At 30 June 2020, the cash position
of $11.6 million (30 June 2019: $13.7
million) decreased compared with the $12.8 million at 31
December 2019, because of negative cash flows
generated from operating activities.
Intangible Exploration and Evaluation (“E&E”) assets of
$2.6 million (30 June 2019: $2.5
million, 31 December 2019:
$2.97 million) represent the carrying
value of the Group’s investment in E&E assets as at
30 June 2020. The Property, Plant and
Equipment (“PP&E”) balance of $10.7
million at 30 June 2020
(30 June 2019: $11.4 million, 31 December
2019: $12.3 million) includes
$10.3 million of development and
production assets on the Blazhyvska licence and other PP&E of
the Group.
Trade and other receivables of $2.3
million (30 June 2019:
$3.0 million, 31 December 2019: $2.6
million) include recoverable VAT of $2 million[2] (30 June
2019: $2.1 million,
31 December 2019: $2.4 million), $0.3
million of other receivables and prepayments (30 June 2019: $0.8
million, 31 December 2019:
$0.2 million).
The $0.9 million of trade and
other payables as of 30 June 2020
(30 June 2019: $2.4 million, 31 December
2019: $1.3 million) represent
$0.2 million (30 June 2019: $1.7
million, 31 December 2019:
$0.7 million) of other creditors and
$0.7 million of accruals
(30 June 2019: $0.7 million, 31 December
2019: $0.6 million).
Cash flow statement
The Consolidated Cash Flow Statement shows negative cash-flow
from operating activities of $1.2
million (30 June 2019: inflow
$1.2 million, 31 December 2019: outflow $4.2 million). Cashflow, before movements in
working capital, was an outflow of $0.9
million (30 June 2019: outflow
$1.3 million, 31 December 2019: outflow $4.5 million).
Group capital expenditure was $0.1
million on Property, Plant and Equipment which related to
the Blazhyvska license.
Commitments
There has been no material change in the commitments and
contingencies reported as at 31 December
2019 (refer to page 78 of the Annual Report).
Treasury
The Group monitors continuously its exposure to currency risk.
It maintains a portfolio of cash , mainly in both US dollars
(‘USD’) and EURO held primarily in the UK, and holds these in call
deposits. Production revenues from the sale of hydrocarbons are
received in the local currency in Ukraine (‘UAH’) and to date funds from such
revenues have been held in Ukraine
for further use in operations. When funds are needed for
operations, they are transferred to the Company’s subsidiaries in
USD, and then converted to UAH.
Going concern
The Directors have a reasonable expectation that the Company and
the Group have adequate resources to continue in operational
existence for the foreseeable future. Accordingly, they continue to
adopt the going concern basis in preparing the Interim Financial
Statements. For further details refer to the detailed discussion of
the assumptions outlined in note 2(a) to the Interim Financial
Statements.
Cautionary Statement
The business review and certain other sections of this Half
Yearly Report contain forward looking statements that have been
made by the Directors in good faith based on the information
available to them up to the time of their approval of this report.
However they should be treated with caution due to inherent
uncertainties, including both economic and business risk factors,
underlying any such forward-looking information and no statement
should be construed as a profit forecast.
[2] Most of the recoverable VAT is VAT paid on drilling services
which will be off-set by VAT due on crude sales in future periods
under local legislation
Risks and
uncertainties
There are a number of potential risks and uncertainties inherent
in the oil and gas sector which could have a material impact on the
long-term performance of the Group and which could cause the actual
results to differ materially from expected and historical results.
The Company has taken reasonable steps to mitigate these where
possible. Full details are disclosed on pages 11 to 13 of the 2019
Annual Financial Report. There have been no changes to the risk
profile during the first half of the year. The risks and
uncertainties are summarised below.
Operational risks
- Health, safety, and environment
- COVID-19
- Climate change
- Drilling and work-over operations
- Production and maintenance
Subsurface risks
Financial risks
- Changes in economic environment
- Counterparty
- Commodity price
Country risk
- Regulatory and licence issues
- Emerging market
Other risks
- Risk of losing key staff members
- Risk of entry into new countries
- Risk of delays in projects related to local communities
dialogue
Director’s
Responsibility Statement
We confirm that to the best of our knowledge:
(a) the Interim
Financial Statements have been prepared in accordance with IAS 34
‘Interim Financial Reporting’;
(b) the interim
management report includes a fair review of the information
required by DTR 4.2.7R (indication of important events during the
first six months and description of principal risks and
uncertainties for the remaining six months of the year);
(c) the
interim management report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related parties’
transactions and changes therein); and
(d) the
condensed set of financial statements, which has been prepared in
accordance with the applicable set of accounting standards, gives a
true and fair view of the assets, liabilities, financial position
and profit or loss of the issuer, or the undertakings included in
the consolidation as a whole as required by DTR 4.2.4R.
This Half Yearly Report consisting of pages 1 to 24 has been
approved by the Board and signed on its behalf by:
Fady Khallouf
Chief Executive Officer
09 September 2020
CADOGAN PETROLEUM PLC
Consolidated
Income Statement
Six months ended 30 June 2020
|
|
Six
months ended 30 June |
Year ended
31 December |
|
|
2020
$’000 |
2019
$’000 |
2019
$’000 |
|
Notes |
(Unaudited) |
(Unaudited) |
(Audited) |
CONTINUING OPERATIONS |
|
|
|
|
Revenue |
3 |
1,266 |
3,319 |
5,876 |
Cost of sales |
3 |
(1,090) |
(2,866) |
(4,872) |
Provision against unsold gas
inventory |
|
(614) |
(650)* |
(1,946) |
Gross profit |
|
(438) |
(197) |
(942) |
|
|
|
|
|
Administrative expenses |
|
(1,495) |
(2,051) |
(5,652) |
Reversal of impairment of other
assets |
|
4 |
330 |
345 |
Impairment of other assets |
|
(125) |
- |
(162) |
Net foreign exchange
gains/(losses) |
|
129 |
(16) |
(385) |
Other operating
(losses)/income,net |
|
(4) |
41 |
3,972 |
Operating (loss)/profit |
|
(1,929) |
(1,893) |
(2,824) |
|
|
|
|
|
Net fair value gain on convertible
loan** |
11 |
409 |
4,421 |
697 |
Finance income |
4 |
45 |
124 |
25 |
(Loss)/profit before tax |
|
(1,475) |
2,652 |
(2,102) |
|
|
|
|
|
Tax (expense)/benefit |
|
- |
(97) |
- |
(Loss)/profit for the
period/year |
|
(1,475) |
2,555 |
(2,102) |
|
|
|
|
|
Attributable to: |
|
|
|
|
Owners of the Company |
5 |
(1,470) |
2,550 |
(2,103) |
Non-controlling interest |
|
(5) |
5 |
1 |
|
|
(1,475) |
2,556 |
(2,102) |
|
|
|
|
|
(Loss)/profit per Ordinary
share |
|
Cents |
cents |
cents |
Basic and diluted |
5 |
(0.6) |
1.1 |
(0.9) |
*Provision against unsold inventory in H1 2019 was previously
classified as an impairment of other assets below gross profit. The
provision movement of $650,000 has
been reclassified above gross profit to reflect its nature and
provide comparability with the presentation at H1 2020 and FY
2019.
**The net fair value gains on convertible loan for H1 2019 and
FY 2019 was previously classified as part of operating
profit/(loss) and have been reclassified as a non-operating item in
these results for consistency with the H1 2020 presentation.
Classification as non-operating is considered applicable as the
Company anticipates, at present, repayment of the loan at maturity
and the instrument is not considered a core operating activity of
the Group.
CADOGAN PETROLEUM PLC
Consolidated
Statement of Comprehensive Income
Six months ended 30 June 2020
|
|
Six
months ended 30 June |
Year ended
31 December |
|
|
2020
$’000 |
2019
$’000 |
2019
$’000 |
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
(Loss)/profit for the
period/year |
|
(1,475) |
2,555 |
(2,102) |
Other comprehensive
(loss)/profit |
|
|
|
|
Items that may be reclassified
subsequently to profit or loss |
|
|
|
|
Unrealised currency translation
differences |
|
(2,466) |
1,367 |
3,541 |
Other comprehensive
(loss)/profit |
|
(2,466) |
1,367 |
3,541 |
Total comprehensive profit/(loss)
for the period/year |
|
(3,941) |
3,922 |
1,439 |
|
|
|
|
|
Attributable to: |
|
|
|
|
Owners of the Company |
|
(3,936) |
3,917 |
1,438 |
Non-controlling interest |
|
(5) |
5 |
1 |
|
|
(3,941) |
3,922 |
1,439 |
CADOGAN PETROLEUM PLC
Consolidated
Statement of Financial Position
Six months ended 30 June 2020
|
|
Six
months ended 30 June |
Year ended
31 December |
|
|
2020
$’000 |
2019
$’000 |
2019
$’000 |
|
Notes |
(Unaudited) |
(Unaudited) |
(Audited) |
ASSETS |
|
|
|
|
Non-current assets |
|
|
|
|
Intangible exploration and
evaluation assets |
|
2,642 |
2,514 |
2,971 |
Property, plant and equipment |
6 |
10,715 |
11,442 |
12,338 |
Loan classified at fair value
through profit and loss |
11 |
- |
20,030 |
15,707 |
Deferred tax asset |
|
501 |
405 |
501 |
|
|
13,858 |
34,391 |
31,517 |
Current assets |
|
|
|
|
Inventories |
7 |
3,079 |
3,322 |
4,453 |
Trade and other receivables |
8 |
2,273 |
2,950 |
2,639 |
Loan classified at fair value
through profit and loss |
11 |
16,145 |
- |
- |
Cash and cash equivalents |
|
11,601 |
13,724 |
12,834 |
|
|
33,098 |
19,996 |
19,926 |
Total assets |
|
46,956 |
54,387 |
51,443 |
|
|
|
|
|
LIABILITIES |
|
|
|
|
Non-current liabilities |
|
|
|
|
Provisions |
|
(256) |
(41) |
(289) |
|
|
(256) |
(41) |
(289) |
Current liabilities |
|
|
|
|
Trade and other payables |
9 |
(938) |
(2,388) |
(1,266) |
|
|
(938) |
(2,388) |
(1,266) |
Total liabilities |
|
(1,194) |
(2,429) |
(1,555) |
|
|
|
|
|
Net assets |
|
45,762 |
51,958 |
49,888 |
|
|
|
|
|
EQUITY |
|
|
|
|
Share capital |
12 |
13,832 |
13,525 |
13,525 |
Share premium |
|
329 |
329 |
329 |
Retained earnings |
|
190,489 |
196,612 |
191,959 |
Cumulative translation reserves |
|
(160,741) |
(160,449) |
(158,275) |
Other reserves |
|
1,589 |
1,668 |
2,081 |
Equity attributable to equity
holders of the parent |
|
45,498 |
51,685 |
49,619 |
Non-controlling interest |
|
264 |
273 |
269 |
Total equity |
|
45,762 |
51,958 |
49,888 |
CADOGAN PETROLEUM PLC
Consolidated
Statement of Cash Flows
Six months ended 30 June 2020
|
Six
months ended 30 June |
Year ended
31 December |
|
2020
$’000 |
2019
$’000 |
2019
$’000 |
|
(Unaudited) |
(Unaudited) |
(Audited) |
Operating loss |
(1,929) |
(1,893) |
(2,824) |
Adjustments for: |
|
|
|
Depreciation of property, plant and
equipment |
369 |
355 |
653 |
Reversal of impairment of
inventories |
614 |
650 |
1,946 |
Impairment of other assets |
125 |
- |
162 |
Reversal of impairment of other
assets |
- |
(287) |
(345) |
Interest received |
- |
- |
(431) |
Gain on disposal of property, plant
and equipment |
- |
- |
(4,000) |
Effect of foreign exchange rate
changes |
(129) |
(88) |
385 |
Operating cash flows before
movements in working capital |
(955) |
(1,263) |
(4,454) |
Decrease/(Increase) in
inventories |
279 |
597 |
(971) |
(Increase)/Decrease in
receivables |
(74) |
717 |
664 |
Increase/(Decrease) in payables and
provisions |
(514) |
1,081 |
78 |
Cash from operations |
(1,264) |
1,132 |
(4,683) |
Interest received |
9 |
44 |
480 |
Net cash inflow/(outflow) from
operating activities |
(1,255) |
1,176 |
(4,203) |
|
|
|
|
Investing activities |
|
|
|
Proceeds from disposal of
subsidiaries |
- |
- |
4,000 |
Purchases of property, plant and
equipment |
(132) |
(7,021) |
(6,952) |
Purchases of intangible exploration
and evaluation assets |
(5) |
(11) |
(241) |
Loan provided |
- |
(15,609) |
(15,246) |
Proceeds from sale of property,
plant and equipment |
4 |
- |
345 |
Interest received |
36 |
81 |
140 |
Net cash used in investing
activities |
(97) |
(22,560) |
(17,954) |
|
|
|
|
Financing activities |
|
|
|
Net cash from financing
activities |
- |
- |
- |
|
|
|
|
Net increase (decrease) in cash
and cash equivalents |
(1,352) |
(21,384) |
(22,157) |
Effect of foreign exchange rate
changes |
119 |
(28) |
(145) |
Cash and cash equivalents at
beginning of period/year |
12,834 |
35,136 |
35,136 |
Cash and cash equivalents at end
of period/year |
11,601 |
13,724 |
12,834 |
|
|
|
|
|
CADOGAN PETROLEUM PLC
Consolidated
Statement of Changes in Equity
Six months ended 30 June 2020
|
Share capital |
Share premium account |
Retained earnings |
Cumulative translation reserves |
Other reserves |
Equity attributable to owners of the Company |
Non-controlling interest |
Total |
|
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
As at 1 January 2019 |
13,525 |
329 |
194,062 |
(161,816) |
1,668 |
47,768 |
268 |
48,036 |
Net profit for the period |
- |
- |
2,550 |
- |
- |
2,550 |
5 |
2,555 |
Other comprehensive profit |
- |
- |
- |
1,367 |
- |
1,367 |
- |
1,367 |
Total comprehensive profit for the year |
- |
- |
2,550 |
1,367 |
- |
3,917 |
5 |
3,922 |
As at 30 June 2019 |
13,525 |
329 |
196,612 |
(160,741) |
1,668 |
45,498 |
264 |
51,958 |
Net profit for the period |
- |
- |
(4,653) |
- |
- |
(4,653) |
(4) |
(4,657) |
Other comprehensive profit |
- |
- |
- |
2,174 |
- |
2,174 |
- |
2,174 |
Total comprehensive profit for the year |
- |
- |
(4,653) |
2,174 |
- |
(2,479) |
(4) |
(2,483) |
Shares based award |
- |
- |
- |
- |
413 |
413 |
- |
413 |
As at 31 December 2019 |
13,525 |
329 |
191,959 |
(158,275) |
2,081 |
49,619 |
269 |
49,888 |
Net loss for the period |
- |
- |
(1,470) |
- |
- |
(1,470) |
(5) |
(1,475) |
Other comprehensive profit |
- |
- |
- |
(2,466) |
- |
(2,466) |
- |
(2,466) |
Total comprehensive profit for the year |
- |
- |
(1,470) |
(2,466) |
- |
(3,936) |
(5) |
(3,941) |
Issue of ordinary shares |
307 |
|
|
|
(492) |
(185) |
|
(185) |
As at 30 June 2020 |
13,832 |
329 |
190,489 |
(160,741) |
1,589 |
45,498 |
264 |
45,762 |
CADOGAN PETROLEUM PLC
Notes to the
Condensed Financial Statements
Six months ended 30 June 2020
1. General
information
Cadogan Petroleum plc (the ‘Company’, together with its
subsidiaries the ‘Group’), is incorporated in England and Wales under the Companies Act. The address of
the registered office is 6th Floor, 60 Gracechurch Street,
London EC3V 0HR. The nature of the
Group’s operations and its principal activities are set out in the
Operations Review on pages 3 to 5 and the Financial Review on pages
6 to 7.
This Half Yearly Report has not been audited or reviewed in
accordance with the Auditing Practices Board guidance on ‘Review of
Interim Financial Information’.
A copy of this Half Yearly Report has been published and may be
found on the Company’s website at www.cadoganpetroleum.com.
2. Basis of
preparation
The annual financial statements of the Group are prepared in
accordance with International Financial Reporting Standards
(‘IFRS’) as issued by the International Accounting Standards Board
(‘IASB’) and as adopted by the European Union (‘EU’). These
Condensed Financial Statements have been prepared in accordance
with IAS 34 Interim Financial Reporting, as issued by the
IASB.
The same accounting policies and methods of computation are
followed in the condensed financial statements as were followed in
the most recent annual financial statements of the Group except as
noted, which were included in the Annual Report issued on
1 May 2020.
The Group has not early adopted any amendment, standard or
interpretation that has been issued but is not yet effective. It is
expected that where applicable, these standards and amendments will
be adopted on each respective effective date.
The Group has adopted the standards, amendments and
interpretations effective for annual periods beginning on or after
1 January 2020. The adoption of these
standards and amendments did not have a material effect on the
financial statements of the Group, including a specific assessment
of the impact of IFRS 16 ‘Leases’.
This consolidated interim financial information does not
constitute accounts within the meaning of section 434 and of the
Companies Act 2006. Statutory accounts for the year ended
31 December 2019 were approved by the
Board of Directors on 1 May 2020 and
delivered to the Registrar of Companies. The report of the auditors
on those accounts was qualified as the auditors were unable to
obtain sufficient and appropriate evidence to conclude as to
whether the fair value of the Proger loan instrument of
$15.7 million was materially
accurate.
(a) Going concern
The Directors have continued to use the going concern basis in
preparing these condensed financial statements. The Group's
business activities, together with the factors likely to affect
future development, performance and position are set out in the
Operations Review. The financial position of the Group, its cash
flow and liquidity position are described in the Financial
Review.
The Group’s cash balance at 30 June
2020 was $11.6 million
(31 December 2019: $12.8 million).
The Group’s forecasts and projections, taking into account
reasonably possible changes in operational performance, and the
price of hydrocarbons sold to Ukrainian customers, show that there
are reasonable expectations that the Group will be able to operate
on funds currently held and those generated internally, for the
foreseeable future.
The Group’s farm-out strategy on Bitlyanska license is on-hold
waiting for the outcome of the claim introduced against the
Licensing Authority for non granting the 20-year production
license.
Having considered the Company’s financial position and its
principal risks and uncertainties, including the assessment of
potential risks associated with Covid-19 including a) restrictions
applied by governments, illness amongst our workforce and
disruption to supply chain and sales channels; and b) market
volatility in respect of commodity prices associated with Covid-19
in addition to geopolitical factors, the Directors have a
reasonable expectation that the Group have adequate resources to
continue in operational existence for the foreseeable future.
After making enquiries and considering the uncertainties
described above, the Directors have a reasonable expectation that
the Company and the Group have adequate resources to continue in
operational existence for the foreseeable future and consider the
going concern basis of accounting to be appropriate and, thus, they
continue to adopt the going concern basis of accounting in
preparing the financial statements. In making its statement the
Directors have considered the recent political and economic
uncertainty in Ukraine.
(b) Foreign currencies
The individual financial statements of each Group company are
presented in the currency of the primary economic environment in
which it operates (its functional currency). The functional
currency of the Company is US dollar. For the purpose of the
consolidated financial statements, the results and financial
position of each Group company are expressed in US dollars, which
is the presentation currency for the consolidated financial
statements.
The relevant exchange rates used were as follows:
1 £ =
xUS$ |
Six
months ended 30 June |
|
|
2020 |
2019 |
Year ended
31 Dec 2019 |
Closing rate |
1.2322 |
1.2719 |
1.3263 |
Average rate |
1.2613 |
1.2943 |
1.2773 |
|
|
|
|
1 US$ = xUAH |
Six
months ended 30 June |
|
|
2020 |
2019 |
Year ended
31 Dec 2019 |
Closing rate |
26.7105 |
26.4487 |
23.7100 |
Average rate |
26.0227 |
27.0363 |
25.9003 |
|
|
|
|
(c) Dividend
The Directors do not recommend the payment of a dividend for the
period (30 June 2019: $nil;
31 December 2019: $nil).
(d) Critical
accounting judgments and estimates
Impairment indicator assessment for
E&E assets
The outcome of ongoing exploration, and therefore the
recoverability of the carrying value of intangible exploration and
evaluation assets, is inherently uncertain. Management assesses its
E&E assets, and perform an impairment test if indicators of
impairment are identified . In assessing potential indicators
of impairment, management considered factors such as the
remaining term of the license, plans for renewal of the license,
conversion to a production license, reports on reserves, the net
present value of economic models, the results of drilling and
exploration in the year and the future plans including farm out
proposals. In respect of the renewal and conversion of the license
which remains outstanding and overdue management considered the
status of license commitments, the status of submissions necessary
for the renewal, trends in the relevant region of the Ukraine with respect to license application
approval together with legal advice in respect of the standing of
the license in the event of delays by the authorities.
Impairment of PP&E
Management assess its development and production assets for
impairment indicators and performs an impairment test if indicators
of impairment are identified. Management performed an impairment
assessment using a value in use discounted cash flow model which
required estimates including forecast oil prices, reserves and
production, costs and discount rates.
Recoverability and measurement of
VAT
Judgment is required in assessing the recoverability of VAT
assets and the extent to which historical impairment provisions
remain appropriate, particularly noting the recent recoveries
against historically impaired VAT. In forming this assessment, the
Group consider the nature and age of the VAT, the likelihood of
eligible future supplies to VAT, the pattern of recoveries and
risks and uncertainties associated with the operating
environment.
Loan classified at fair value through
profit and loss
In February 2019, the Group
advanced a Euro 13,385,000 loan to
Proger Managers & Partners Srl (“PMP”), a privately owned
Italian company whose only interest is a 72.92% participation in
Proger Ingegneria Srl (“Proger Ingegneria”), a privately owned
company which has a 75.95% participating interest in Proger Spa
(“Proger”). The loan carries an entitlement to interest at a rate
of 5.5% per year, payable at maturity (which is 24 months after the
execution date (February 2019) and
assuming that the call option described below is not exercised).
The principal of the loan is secured by a pledge over PMP’s current
participating interest in Proger Ingegneria, up to a maximum
guaranteed amount of Euro
13,385,000.
As part of the instrument, the Group was granted a call option
to acquire, at its sole discretion, a direct 33% equity interest in
Proger Ingegneria; the exercise of the option would give
Cadogan, through CPHBV, an
equivalent indirect 25 interest in Proger. The call option was
granted at no additional cost and can be exercised at any time
between the 6th (sixth) and 24th (twenty-fourth) months following
the execution date of the loan agreement and subject to
Cadogan shareholders having
approved the exercise of the call option. The Board note that
the Group has no current equity interest and the option is not
considered to be currently exercisable at 30
June 2020 given the substantive requirement for shareholder
approval. Should CPHBV exercise the call option, the price for the
purchase of the 33% participating interest in Proger Ingegneria
shall be paid by setting off the corresponding amount due by PMP to
CPHBV, by way of reimbursement of the principal, pursuant to the
loan agreement. If the call option is exercised, then the
obligation on PMP to pay interest is extinguished.
Under the Group’s accounting policies the instrument is held at
fair value through profit and loss and determination of fair value
requires assessment of both key investee specific information
regarding financial performance and prospects and market
information.
The Group’s original investment decision involved assessment of
Proger’s business plan and analysis with professional advisers
including valuations performed using the income method (discounted
cash flows) and market approach using both the precedent
transactions and trading multiples methods.
Whilst Proger has provided Cadogan information regarding its 2019
financial performance, no information in respect of 2020 or updated
forecasts have been provided which are considered necessary to
undertake a detailed fair value assessment using the income method
or market approach at 30 June 2020.
As a consequence, management assessed the fair value of the
instrument based on the terms of the agreement, including the
pledge over shares, together with financial information in respect
of prior periods and determined that $16.1
million represented the best estimate of fair value, being
equal to anticipated receipts discounted at a market rate of
interest of 5.5%. However, the absence of information regarding
Proger’s 2020 financial performance and prospects represents a
significant limitation on the fair value exercise and, as a result,
once received, the fair value could be materially higher or lower
than this value. (Note 11).
3. Segment
information
Segment information is presented on the basis of management’s
perspective and relates to the parts of the Group that are defined
as operating segments. Operating segments are identified on the
basis of internal assessment provided to the Group’s chief
operating decision maker (“CODM”). The Group has identified its
executive management team as its CODM and the internal assessment
used by the top management team to oversee operations and make
decisions on allocating resources serve as the basis of information
presented.
Segment information is analysed on the basis of the type of
activity, products sold or services provided. The majority of the
Group’s operations are located within Ukraine. Segment information is analyzed on
the basis of the types of goods supplied by the Group’s operating
divisions.
The Group’s reportable segments under IFRS 8 are therefore as
follows:
Exploration and Production
· E&P activities on the production
licences for natural gas, oil and condensate
Service
· Drilling services to exploration and
production companies
· Construction services to exploration and
production companies
Trading
· Import of natural gas from European
countries
· Local purchase and sales of natural gas
operations with physical delivery of natural gas
The accounting policies of the reportable segments are the same
as the Group’s accounting policies. Sales between segments are
carried out at market prices. The segment result represents profit
under IFRS before unallocated corporate expenses. Unallocated
corporate expenses include management and Board remuneration and
expenses incurred in respect of the maintenance of Kiev office premises. This is the measure
reported to the CODM for the purposes of resource allocation and
assessment of segment performance.
The Group does not present information on segment assets and
liabilities as the CODM does not review such information for
decision-making purposes.
As of 30 June 2020 and for the six
months then ended the Group’s segmental information was as
follows:
|
Exploration and
Production |
Services |
Trading |
Consolidated |
|
$’000 |
$’000 |
$’000 |
$’000 |
Sales of hydrocarbons |
1,263 |
- |
- |
1,263 |
Other revenue |
- |
3 |
- |
3 |
Total revenue |
1,263 |
3 |
- |
1,266 |
Other cost of sales |
(1,087) |
(3) |
- |
(1,090) |
Other administrative expenses |
(281) |
(20) |
(27) |
(328) |
Impairment |
- |
- |
(614) |
(614) |
Finance income/costs, net |
- |
- |
9 |
9 |
Segment results |
(105) |
(20) |
(634) |
(757) |
Unallocated other administrative
expenses |
- |
- |
- |
(1,167) |
Net fair value gain on convertible
loan |
- |
- |
- |
409 |
Net foreign exchange gains |
- |
- |
- |
129 |
Other income/loss, net |
- |
- |
- |
(89) |
Loss before
tax |
- |
- |
- |
(1,475) |
As of 30 June 2019 and for the six
months then ended the Group’s segmental information was as
follows:
|
Exploration and
Production |
Services(1) |
Trading |
Consolidated |
|
$’000 |
$’000 |
$’000 |
$’000 |
Sales of hydrocarbons |
2,349 |
- |
916 |
3,265 |
Other revenue |
- |
54 |
- |
54 |
Total revenue |
2,349 |
54 |
916 |
3,319 |
Other cost of sales |
(1,842) |
(48) |
(976) |
(2,866) |
Other administrative expenses |
(234) |
(34) |
(62) |
(330) |
Finance income/costs, net |
- |
- |
27 |
27 |
Segment results |
273 |
(28) |
(95) |
150 |
Unallocated other administrative
expenses |
- |
- |
- |
(1,721) |
Net fair value gain on convertible
loan |
- |
- |
- |
4,421 |
Net foreign exchange gains |
- |
- |
- |
(16) |
Other income, net |
- |
- |
- |
(182) |
Profit before
tax |
- |
- |
- |
2,652 |
(1) In first half 2019 and in the first
half 2020 the Service business was focused on internal projects, in
particular, providing services to Blazhyvska licence.
4. Finance income/(costs), net
|
Six months ended 30 June |
Year
ended
31 December |
|
2020 |
2019 |
2019 |
|
$’000 |
$’000 |
$’000 |
Interest expense on
short-term borrowings |
- |
(9) |
- |
|
|
|
|
Total interest
expenses on financial liabilities |
- |
(9) |
- |
|
|
|
|
Interest income on
receivables,net |
- |
27 |
36 |
Investment
revenue |
36 |
62 |
104 |
Interest income on
cash deposit in Ukraine |
9 |
44 |
49 |
|
|
|
|
Total interest
income on financial assets |
45 |
133 |
189 |
|
|
|
|
Unwinding of discount
on decommissioning provision |
- |
- |
(164) |
|
45 |
124 |
25 |
5. (Loss)/profit per
ordinary share
(Loss)/profit per ordinary share is calculated by dividing the
net (loss)/profit for the period/year attributable to Ordinary
equity holders of the parent by the weighted average number of
Ordinary shares outstanding during the period/year. The calculation
of the basic (loss)/profit per share is based on the following
data:
|
Six months ended 30 June |
Year
ended
31 December |
(Loss)/profit
attributable to owners of the Company |
2020
$’000 |
2019
$’000 |
2019
$’000 |
(Loss)/profit for the
purposes of basic (loss)/profit per share being net (loss)/profit
attributable to owners of the Company |
(1,475) |
2,550 |
(2,103) |
|
|
|
|
|
Number |
Number |
Number |
Number of shares |
‘000 |
‘000 |
‘000 |
Weighted average number of Ordinary
shares for the purposes of basic (loss)/profit per share |
244,128 |
235,729 |
235,729 |
|
|
|
|
|
Cent |
Cent |
Cent |
(Loss)/profit per Ordinary
share |
|
|
|
Basic |
(0.6) |
1.1 |
(0.9) |
6. Proved properties
As of 30 June 2020 the development
and production assets balance which forms part of PP&E has
increased in comparison to 31 December
2019 due to the installation of additional 350m3 oil storage
tanks at Blazhiv field and decreased due to the exchange rate
between UAH and US Dollar, depreciation and depreciation charges
for the reporting period.
7. Inventories
The Group had volumes of natural gas stored at 31 December 2019 which were not sold during the
six months ended 30 June 2020. The
Group plan to realise it in the second half of the year, as this
represents the start of the heating season which typically sees
higher prices. No other substantial changes in inventories balances
occured.
The impairment provision as at 30 June
2020 is made so as to reduce the carrying value of the
inventories to net realizable value.
8. Trade and other
receivables
|
|
Six months ended 30 June |
Year
ended
31 December |
|
|
2020
$’000 |
2019
$’000 |
2019
$’000 |
VAT recoverable |
|
2,067 |
2,115 |
2,402 |
Prepayments |
|
114 |
285 |
- |
Trading
prepayments |
|
- |
31 |
- |
Trade receivables |
|
14 |
404 |
- |
Other receivables |
|
78 |
115 |
237 |
|
|
2,273 |
2,950 |
2,639 |
The Directors consider that the carrying amount of the other
receivables approximates their fair value. Management expects to
realise VAT recoverable through the activities of the business
segments.
9. Trade and other
payables
The $0.9 million of trade and
other payables as of 30 June 2020
(30 June 2019: $2.4 million, 31 December
2019: $1.3 million) represent
$0.2 million (30 June 2019: $1.7
million, 31 December 2019:
$0.7 million) of payables and
$0.7 million of accruals
(30 June 2019: $0.7 million, 31 December
2019: $0.6 million).
10. Commitments and contingencies
There have been no significant changes to the commitments and
contingencies reported on page 78 of the Annual Report.
11. Loan classified at fair value through
profit and loss
In February 2019, Cadogan used part of its cash (Euro 13.385 million) to enter into a 2-year loan
agreement with Proger Managers & Partners, with an option to
convert it into a direct 33% equity interest in Proger Ingegneria,
equivalent to an indirect 25 % equity interest in Proger. According
to IFRS, the option has to be represented in our balance sheet at
fair value.
The Group’s original investment decision involved assessment of
Proger Spa business plan and analysis with professional advisers
including valuations performed using the income method (discounted
cash flows) and market approach using both the precedent
transactions and trading multiples methods.
Financial assets at fair value through
profit and loss
Refer to note 2 for details of the terms of the Proger loan
recorded as a financial asset at fair value through profit and
loss. The instrument is recorded at management’s best
estimate of fair value as set out in note 2 although management
have not been able to undertake a valuation exercise under the
income method or market based method which would incorporate
relevant recent financial information on the investee or its
prospects.
|
$’000 |
As at 1 January
2019 |
- |
Loan provided |
15,246 |
Movement in FVPL |
4,421 |
Exchange differences
* |
364 |
As at 30 June
2019 |
20,030 |
Movement in FVPL |
(3,724) |
Exchange
differences |
(599) |
As at 1 January
2020 |
15,707 |
Movement in FVPL |
409 |
Exchange
differences |
29 |
As at 30 June
2020 |
16,145 |
* Exchange differences are calculaded based on USD/EURO currency
exchange rates on the date of transaction which is 26 February 2019 and end of the period
30 June 2019.
The Group has applied a level 3 valuation under IFRS as inputs
to the valuation have included assessment of the cash repayments
anticipated under the loan terms at maturity, historical financial
information for the periods prior to H1 2020 and assessment of the
security provided by the pledge over shares.
The Group is still lacking sufficient and reliable information
in respect of Proger’s H1 2020 financial performance, forecasts and
business plan, post covid-19, taking into account all the effects
of the important changes that have occurred in its markets and its
customers’ decisions regarding future investments. If the Group had
been provided with information to complete a valuation under the
income method or market method the key assumptions would have
included: a) In terms of the income method: forecast revenues,
EBITDA and unlevered free cash flows of the investee including
assessment of performance against its original business plan at the
time the loan was advanced, revisions to the business plan, growth
rates and terminal values, determination of an appropriate discount
rate, adjustments to the enterprise value for debt and working
capital adjustments; b) In terms of the market method: first
semester 2020 EBITDA and information to assess the quality of such
earnings, enterprise value multiples based on a basket of
comparable transactions and companies, adjustments to the
enterprise value for debt and working capital adjustments and other
risk adjustment factors.
As a consequence, management assessed the fair value of the
instrument based on the terms of the agreement, including the
pledge over shares, together with financial information in respect
of prior periods and determined that $16.1
million represented the best estimate of fair value, being
equal to anticipated receipts discounted at a market rate of
interest of 5.5%.
The Group considers that the carrying amount of financial
instruments approximates their fair value.
12.
Share capital
Authorized and issued equity share
capital
|
30/06/2020 |
31/12/2019 |
|
Number |
$’000 |
Number |
$’000 |
Authorized
Ordinary shares of £0.03 each |
1,000,000 |
57,713 |
1,000,000 |
57,713 |
Issued
Ordinary shares of £0.03 each |
244,128 |
13,832 |
235,729 |
13,525 |
Authorized but unissued share capital of £30 million has been
translated into US dollars at the historic exchange rate of the
issued share capital. The Company has one class of Ordinary shares,
which carry no right to fixed income.
Issued equity share capital
|
|
Ordinary shares
of £0.03 |
At 31 December
2017 |
|
|
235,729,322 |
Issued during
year |
|
|
- |
At 31 December
2018 |
|
|
235,729,322 |
Issued during
year |
|
|
- |
At 31 December
2019 |
|
|
235,729,322 |
Issued during
first-half year |
|
|
8,399,165 |
At 30 June
2020 |
|
|
244,128,487 |
On 26 May 2020 the Company issued
8,399,165 ordinary shares of £0.03 each in the capital of the
Company for cash on the basis of £0.03 per share:
- 2,270,549 ordinary shares were issued to the previous
CEO, Mr Guido Michelotti, to be
satisfied in full using the entire amount of the 2018 and 2019
bonuses due (but which had not yet been paid), totalling
€75,900,
- 628,616 ordinary shares were issued to Mr Andriy Bilyy (General Director of Cadogan
Ukraine), to be satisfied in full using the entire amount of the
2019 bonus due (but which had not yet been paid), totalling
$23,040,
- 5,500,000 ordinary shares were issued to the CEO, Mr
Fady Khallouf, to be satisfied in full using the entire amount of
the welcome bonus due.