This announcement contains
inside information as stipulated under the UK version of the Market
Abuse
Regulation No 596/2014
which is part of English Law by virtue of the European (Withdrawal)
Act 2018, as
amended. On
publication of this announcement via a Regulatory Information
Service, this information is
in the public
domain.
27
September 2024
Trinity Exploration &
Production plc
("Trinity" or "the Company"
or "the Group")
Interim
Results
Trinity Exploration & Production plc (AIM:
TRIN), the independent E&P company
focused on Trinidad and Tobago ("T&T"), announces its unaudited
interim results for the six-month period ended 30 June 2024
("H1 2024" or "the Period").
Update on takeover
offers
On 1 May 2024, Trinity and
Touchstone Exploration Inc (TSX, LSE: TXP)
("Touchstone")
announced that they had reached agreement on the
terms of a recommended all share offer, pursuant to which
Touchstone would acquire each Trinity share for 1.5 new Touchstone
Shares, to be effected by means of a Court-sanctioned scheme of
arrangement under Part 26 of the Companies Act 2006 ("scheme of
arrangement") (the "Touchstone
Offer").
On 2 August 2024, Trinity and
Lease Operators Limited ("Lease
Operators") announced that they had reached agreement on the
terms of a recommended all cash
acquisition, pursuant to which Lease Operators would acquire each
Trinity share for 68.05 pence in cash (the "Acquisition"), also to be effected by
means of a scheme of arrangement. At the same time, the
Trinity board of directors withdrew its recommendation of the
Touchstone Offer as it considered the Acquisition to be superior
and in the best interests of Trinity Shareholders.
On 25
September 2024, the Court granted Trinity permission to formally
withdraw the scheme of arrangement relating to the Touchstone Offer
and, as a result, the Touchstone Offer lapsed with immediate
effect.
The Acquisition remains subject to
certain other conditions, including the approval of Trinity
Shareholders at a Court Meeting and a General Meeting and the
Court's sanction of the Scheme at a Court
Hearing.
A further update, including the
timetable for the Acquisition will be made in due
course.
H1 2024 Operational
Highlights
H1 2024 saw a production decline
of nine percent (9%) against H1 2023 which is within the expected
natural decline range for mature fields in the absence of
development drilling activities. Production was supported with a
programme of recompletions and workovers.
·
H1 2024 average net sales volume was 2,595 bopd
(H1 2023: 2,861 bopd).
Sales volumes were supported by
five recompletions (H1 2023: three) and 51 workovers and
reactivations (H1 2023: 62) undertaken during the Period. Swabbing
production continued across the Onshore and West Coast assets and
contributed approximately ten percent (10%) of Trinity's
production. A program of six heavy workovers is scheduled for the second half of
2024.
·
The decrease in production between H1 2024 vs H1
2023 was largely a result of the failure to return a large
producing Trintes well
to potential production in July 2023 due to operational issues. A
workover was conducted on this well in
February 2024 to investigate and optimise production, but
ultimately the workover was unsuccessful. A
further workover of this well is being
planned for H2 2024.
·
The production decline from Onshore Assets was
attributed to three major wells being shut-in during H1 2024 due to
mechanical/wellbore problems. Workovers were carried out during the
period to restore production, but they have proved unsuccessful to
date. Further workovers are planned for H2 2024.
·
The Jacobin exploration well drilled in 2023 was
recompleted in the Lower Forest horizon in May 2024 following
disappointing production results in the deeper Cruse horizons. The
well was placed on pump and is currently producing around 11
bopd.
·
The ABM-151 well in the Brighton Marine block,
offshore the West Coast of Trinidad, which was returned to
production on 21 March 2023 following an extensive refurbishment of
surface facilities and the installation of remote surveillance
technology, has maintained production with no significant decline
between H2 2023 (106 bopd) and H1 2024 (109 bopd). Trinity
continues to monitor this well closely as this well has a high risk
of sand production.
H1 2024 Financial
Highlights
·
Average oil price realisation of USD
71.5/bbl for H1 2024 (H1 2023: USD 65.2/bbl). During the
Period, the realised price that the Company received for Onshore
and West Coast oil sales was at an average discount of 13.9% to
Brent; less than the long-term average discount of approximately
15%. East Coast oil sales are made under a fixed arrangement
that is a 15% discount to Brent.
·
The Company remains unhedged.
·
Cash balance of USD 8.0 million as at 30 June
2024 (YE 2023: USD 9.8 million) reflecting a combination
of stable operating cash generation net of finalisation of
2023 undisputed Jacobin
costs paid in 2024, limited investment in capex, and cash
outflows of USD 1.7m to support the
ongoing acquisition.
·
Stable net cashflows generated from operating
activities as at H1 2024 USD 4.8 million (H1 2023: USD 6.3
million).
·
Revenues of USD 33.8 million were generated
in the Period (H1 2023: USD 33.8 million) driven by lower sales
production offset by higher oil prices.
·
Cash operating costs of USD 23.2/bbl (H1 2023:
USD 20.1/bbl) mainly driven by the overall impact of lower sales
production (2,595 in H1 2024 vs 2,861 in H1 2023).
·
General and administrative costs of USD 6.8/bbl
(H1 2023: USD 6.3/bbl) mainly due to the impact of lower sales
production.
· Average operating break-even for H1 2024 was increased at USD
42.6/bbl (unaudited) (H1 2023: USD
34.5/bbl) resulting from a slightly higher operating cost and lower
sales volume.
·
The Group had drawn borrowings (overdraft) of USD
3.0 million at 30 June 2024 (YE 2023: USD 4.0
million).
2024 Guidance
The sales guidance range for 2024
has been reduced to 2,450-2,550 bopd.
Enquiries
|
Trinity Exploration & Production
Jeremy Bridglalsingh, Chief
Executive Officer
Julian Kennedy, Chief Financial
Officer
Nick Clayton, Non-Executive
Chairman
|
Via Vigo
Consulting
|
|
SPARK Advisory Partners Limited (Nominated
Adviser)
Mark Brady
James Keeshan
|
+44
(0)20 3368 3550
|
|
Cavendish Capital Markets
Limited (Broker)
Leif Powis
Derrick Lee
Neil McDonald
|
+44
(0)20 7397 8900
+44
(0)131 220 6939
|
|
Vigo Consulting Limited
Finlay Thomson
Patrick d' Ancona
|
trinity@vigoconsulting.com
+44
(0)20 7390 0230
|
About Trinity (www.trinityexploration.com)
Trinity is an independent oil
production company focused solely on Trinidad and Tobago.
Trinity operates producing and development assets both onshore and
offshore, in the shallow water West and East Coasts of
Trinidad. Trinity's portfolio includes current production,
significant near-term production growth opportunities from low-risk
developments and multiple exploration prospects with the potential
to deliver meaningful reserves/resources growth. The Company
operates all of its licences and, across all of the Group's assets,
management's estimate of the Group's 2P reserves as at the end of
2023 was 12.91 mmstb. Group 2C contingent resources are
estimated to be 38.68 mmstb. The Group's overall 2P plus
2C volumes are therefore 51.58 mmstb.
Trinity is quoted on AIM, a market
operated and regulated by the London Stock Exchange Plc, under the
ticker TRIN.
Qualified Person's Statement
The technical information
contained in the announcement has been reviewed and approved by
Mark Kingsley, Trinity's Chief Operating Officer. Mark
Kingsley (BSc (Hons) Chemical Engineering, Birmingham University)
has over 35 years of experience in international oil and gas
exploration, development and production and is a Chartered
Engineer.
Disclaimer
This document contains certain
forward-looking statements that are subject to the usual risk
factors and uncertainties associated with the oil exploration and
production business. Whilst the Group believes the
expectation reflected herein to be reasonable in light of the
information available to it at this time, the actual outcome may be
materially different owing to macroeconomic factors either beyond
the Group's control or otherwise within the Group's
control.
Publication on website
In accordance with Rule 26.1 of
the Takeover Code a copy of this announcement will be available
free of charge, subject to certain restrictions relating to persons
resident in Restricted Jurisdictions, on the investor relations
section of Trinity's website at https://trinityexploration.com/investors/lease-operators-offer/
by no later than 12.00 noon (London time) on the
business day immediately following this announcement. The content
of the website referred to in this announcement is not incorporated
into and does not form part of this announcement.
Summary of 2024 half-year performance
OPERATIONAL REVIEW
The Group achieved net sales of
2,595 bopd in H1 2024 (H1 2023: 2,861 bopd). Investment in
production-related activities such as recompletions, workovers and
swabbing, together with already automated wells enabled the Company
to limit the decline in first half-year production to 9%, when
compared to H1 2023, which is broadly in line with the expected
longer term annual decline rate.
Annual and Half-Year Sales by Region (bopd)
|
|
12m 2023
|
H1 2023
|
H2 2023
|
H1 2024
|
|
Onshore
|
1,495
|
1,512
|
1,478
|
1,343
|
|
East Coast
|
943
|
1,011
|
876
|
867
|
|
West Coast
|
353
|
338
|
367
|
385
|
|
Total
|
2,790
|
2,861
|
2,721
|
2,595
|
Onshore operations
·
H1 2024 average net sales were 1,343 bopd, a
11.2% decrease on 2023 (H1 2023 1,512 bopd). This movement
was attributed to expected natural decline,
coupled with reduced workover activity and deferral of volumes due
to unplanned disruptions to electrical power supplies (outside
Trinity's control), which caused temporary shut-in for certain key
wells in Q2 2024 and the loss of three major wells due to
mechanical/wellbore problems. Trinity progressed various
initiatives in H1 2024 to mitigate, where possible, disruptions to
electrical power supplies.
·
A technical study of circa 250 inactive wells was
conducted during the first two months of 2024 resulting in an
increased swab well stock in H1 2024. Work programmes are
being reviewed for the upcoming budget cycle to allocate funding
for implementation of the recommended work.
A total of 39 workovers and
reactivations were completed in H1 2024 (H1 2023: 54) in
conjunction with five recompletions in H1 2024 (H1 2023:
three).
The H2 2024 work programme
involves the progression of five heavy workovers (recompletions,
sand controls, casing repairs) and ongoing base management via
workovers, reactivations and swabbing across all onshore
fields.
East Coast operations
·
H1 2024 average net sales were 867 bopd (H1 2023:
1,011 bopd) a 14.2% decrease. The decrease in production
sales was largely a result of the failure
to return a large producing well to production in July 2023.
Comparing H1 2024 sales with H2 2023 shows minimal decline. A
total of seven workovers
were undertaken during H1 2024 (H1 2023:
seven workovers).
The H2 2024 work programme will
include routine workovers
and reactivations.
West Coast operations
·
H1 2024 average net sales were 385 bopd (H1 2023:
338 bopd). The 13.9% increase in sales was the result of
additional swabbing resources which increased swab production and
stabilised the field's production. One workover was conducted
during this period (H1 2023: one workover).
H2 2024 work programme is expected
to include continued optimisation of swab production and ongoing
base management via workovers.
H1
2024 Key Performance Indicators
The Group was profitable in H1
2024 under Alternative Performance Measures ("APM") and IFRS basis. Higher oil
price realisations offset by lower sales volumes resulted in no
change in Revenues to USD 33.8 million (H1 2023: USD 33.8 million)
and a 11% decrease in Adjusted EBITDA (Note 19 in the financial
statements) to USD 9.3 million (H1 2023: USD 10.4 million). The
Period-end cash balance was USD 8.0 million (H1 2023: USD 11.3
million) lower than the opening position at the start of the Period
of USD 9.8 million. A summary of the period-on-period
operational and financial highlights are set out below:
|
|
|
H1 2024
|
H1 2023
|
Change %
|
|
Average realised oil
price1
|
USD/bbl
|
71.5
|
65.2
|
10
|
|
Average net
sales2
|
bopd
|
2,595
|
2,861
|
(9)
|
|
Revenues
|
USD
million
|
33.8
|
33.8
|
0
|
|
Cash balance
|
USD
million
|
8.0
|
11.3
|
(29)
|
|
IFRS Results
|
|
|
|
|
|
Operating Profit before
SPT
|
USD
million
|
6.1
|
5.8
|
5
|
|
Total Comprehensive
Income
|
USD
million
|
3.1
|
0.7
|
347
|
|
Earnings per share -
diluted
|
USD cents
|
7.9
|
1.7
|
363
|
|
APM Results
(APM measures exclude
non-cash items)
|
|
Adjusted
EBITDA3
|
USD
million
|
9.3
|
10.4
|
(11)
|
|
Adjusted
EBITDA4
|
USD/bbl
|
19.6
|
20.1
|
(3)
|
|
Adjusted EBITDA
margin5
|
%
|
27.4
|
30.8
|
(11)
|
|
Adjusted EBIDA after Current
Taxes6
|
USD
million
|
8.6
|
6.7
|
29
|
|
Adj. EBIDA after Current Taxes per
share - diluted
|
US cents
|
21.6
|
16.9
|
28
|
|
Consolidated operating
break-even7
|
USD/bbl
|
42.6
|
34.5
|
23
|
|
Net cash plus working capital
surplus8
|
USD
million
|
12.5
|
10.9
|
15
|
Notes:
1. Realised price: Actual price
received for crude oil sales per barrel ("bbl").
2. Average net sales: This refers to
average sales attributable to Trinity per day for all operations;
lease operatorships and joint ventures.
3. Adjusted EBITDA: Operating Profit
before Taxes for the period, adjusted for Depreciation, Depletion
& Amortisation ("DD&A") and other non-cash expenses,
namely Share Option Expenses, Impairment of Financial Assets, FX
Gains/Losses and Fair Value Gains/Losses on Derivative financial
instruments.
4. Adjusted EBITDA (USD/bbl):
Adjusted EBITDA/sales volume over the Period.
5. Adjusted EBITDA Margin (%):
Adjusted EBITDA/Revenues.
6. Adjusted EBIDA after Current
Taxes: Adjusted EBITDA less Supplemental Petroleum Taxes
("SPT"), Petroleum Profits
Tax ("PPT") and
Unemployment Levy ("UL").
7. Group operating break-even: The
realised price/bbl where the Adjusted EBITDA/bbl for the Group is
equal to zero.
8. Net cash plus working capital
surplus: Current Assets less Current Liabilities (other than
Derivative financial asset / liability and Provision for other
liabilities).
FINANCIAL REVIEW
Income Statement
Analysis
|
|
|
H1 2024
|
H1 2023
|
Change %
|
|
Production
|
|
|
|
|
|
Average realised oil price
(USD/bbl)
|
|
71.5
|
65.2
|
10
|
|
Average net Sales (bopd)
|
|
2,595
|
2,861
|
(9)
|
|
|
|
|
|
|
|
Statement of Comprehensive
Income
|
|
USD'000
|
USD'000
|
USD'000
|
|
Operating revenues
|
|
33,804
|
33,754
|
50
|
|
Operating expenses excluding
non-cash items and SPT
|
|
(24,533)
|
(23,367)
|
(1,166)
|
|
Operating profit before non-cash
items and SPT
|
|
9,271
|
10,387
|
(1,116)
|
|
DD&A
|
|
(2,984)
|
(4,472)
|
1,488
|
|
Other Non-Cash Items
|
|
(225)
|
(87)
|
(138)
|
|
Operating profit before SPT
|
|
6,062
|
5,828
|
234
|
|
SPT
|
|
--
|
(3,247)
|
3,247
|
|
Operating profit before Impairment, Exceptional items and
Decommissioning reduction
|
|
6,062
|
2,581
|
3,481
|
|
Impairment
|
|
(398)
|
--
|
(398)
|
|
Exceptional items
|
|
(1,714)
|
(371)
|
(1,343)
|
|
Decommissioning reduction
|
|
826
|
--
|
826
|
|
Operating Profit after Exceptional items
|
|
4,776
|
2,210
|
2,566
|
|
Finance income
|
|
13
|
25
|
(12)
|
|
Finance cost
|
|
(1,001)
|
(1,124)
|
123
|
|
Profit Before Taxation
Income Taxation expense
|
|
3,788
(662)
|
1,111
(428)
|
2,677
(234)
|
|
Profit After Taxation
|
|
3,126
|
683
|
2,443
|
|
Total Comprehensive Income for the
period
|
|
|
|
|
|
Exchange differences on translation
of foreign operations
|
|
1
|
(6)
|
6
|
|
Total Comprehensive Income
|
|
3,127
|
677
|
2,449
|
Operating Revenues
Operating revenues of USD 33.8
million (H1 2023: USD 33.8 million), unchanged.
Operating expenses (excluding non-cash
items)
Operating expenses (excluding
non-cash items) of USD (24.5) million (H1 2023: USD (23.4) million)
comprised:
·
Royalties of USD (10.3) million (H1 2023: USD
(9.7) million), mainly due to higher average oil prices.
·
Production costs ("Opex") of USD (11.0) million (H1 2023:
USD (10.4) million), increase driven by additional safety measures
on the East Coast which included vessel stand by response, and
swabbing activities.
·
G&A expenditure of USD (3.2) million (H1
2023: USD (3.3) million), mainly due to a
reduction in business travel costs.
Non-cash operating expenses
Non-cash operating expenses of USD
(3.2) million (H1 2023: USD (4.7) million) comprised:
·
Depreciation, Depletion and Amortisation
("DD&A") charges of USD
(3.0) million (H1 2023: USD (4.5) million).
·
Share option expense USD (0.2) million (H1 2023:
USD (0.3) million).
·
Foreign exchange gain USD 0.0 million (H1 2023:
USD 0.1 million).
Operating Profit Before Supplemental Petroleum Taxes
("SPT")
The operating profit before SPT for the Period
amounted to USD 6.1 million
(H1 2023: USD 5.8 million). The increase is
mainly due to a combination of maintaining revenues through higher
prices received, lower depreciation expense and operating cost
maintenance.
SPT
There were no SPT liabilities
incurred for the period as the weighted average realised price of
crude oil was below the SPT threshold of USD 75.0/bbl. There is
unused Investment Tax Credit of USD 3.4 million from 2023 and USD
0.5 million for H1 2024 which will be carried forward for future
use, limited to a one-year period. SPT is classified as operating
expenses rather than income taxation under IFRS.
Exceptional items
Exceptional items charge of
USD (1.7) million (H1 2023: USD (0.4) million) relates
to:
·
USD (1.7) million in financial advisory and legal
costs associated with the pending acquisition of the Trinity Group
(H1 2023: USD 0.4 million incurred in cyber incident and Trintes
Bravo fire incident).
Net Finance Cost
Net finance costs for the period
of USD (1.0) million (H1 2023: USD (1.1) million),
comprising:
·
Unwinding of the discount on the decommissioning
provision of USD (1.0) million (H1 2023: USD (1.1)
million).
Income Taxation
Taxation charge for the period was
USD (0.7) million (H1 2023: USD (0.4) million),
comprising:
·
Petroleum Profits Tax ("PPT") of USD (0.5) million (H1 2023:
USD (0.3) million).
·
Unemployment Levy ("UL") of USD (0.2) million (H1 2023: USD
(0.1) million).
·
Net deferred tax of nil (H1 2023: nil), refer to
note 15.
As at 30 June 2024, the Group had
unrecognised tax losses of USD 191.0 million (H1 2023: USD 199.3
million) which have no expiry date.
Total Comprehensive Income
Total Comprehensive Income for the
Period was USD 3.1 million (H1 2023: USD 0.7
million.)
Cash Flow
Analysis
Opening Cash Balance
Trinity began the year with an
initial cash balance of USD 9.8 million (2023: USD 12.1
million).
|
Summary of Statement of Cash Flows
|
|
|
|
|
H1 2024
|
H1 2023
|
|
|
USD'000
|
USD'000
|
|
Opening cash balance
|
9,819
|
12,131
|
|
Cash movement
|
|
|
|
Cash inflow from operating
activities
|
7,543
|
6,769
|
|
Changes in working
capital
|
(2,506)
|
(37)
|
|
Income taxation paid
|
(240)
|
(475)
|
|
Net cash inflow from operating
activities
|
4,797
|
6,257
|
|
Net cash outflow from investing
activities
|
(5,214)
|
(5,576)
|
|
Net cash outflow from financing
activities
|
(1,366)
|
(1,603)
|
|
Decrease in cash and cash
equivalents
|
(1,783)
|
(922)
|
|
Effects of foreign exchange rates on
cash
|
(5)
|
92
|
|
Closing cash balance
|
8,031
|
11,301
|
Net cash inflow from operating activities
Net cash inflow from operating
activities was USD 4.8 million (H1 2023:
USD 6.3 million):
·
Operating activities for H1 2024 generated an
operating cash flow before changes in working capital and income
taxes of USD 7.5 million (H1 2023: USD 6.8 million).
·
Changes in working capital resulted in a net
decrease of USD (2.5) million (H1 2023: net decrease of USD (0.0)
million).
·
Income Taxation - PPT and UL paid USD (0.2)
million (H1 2023: USD (0.5) million) resulting from lower taxable
profits resulting from lower oil price.
Cash outflow from investing activities
Investing cash outflows for H1
2024 was USD (5.2) million (H1 2023: USD (5.6) million) which
included infrastructure investments across Trinity's assets,
production capex including recompletions in H1 2024, subsurface
capex and exploration and evaluation capex.
Net cash outflow from financing activities
The financing cash outflow for H1
2024 was USD (1.4) million (H1 2023: USD (1.6) million), comprising
USD (1.0) million repayment of bank overdraft, USD (0.4) million
cash payment on leases.
Closing Cash Balance
Trinity's cash balance at 30 June
2024 was USD 8.0 million (31 December 2023: USD 9.8
million).
Statement of Financial
Position Analysis
|
|
H1 2024
|
YE 2023
|
Change
|
|
USD'000
|
USD'000
|
USD'000
|
|
|
|
|
|
Assets:
|
|
|
|
|
Non-current Assets
|
86,968
|
88,170
|
(1,202)
|
|
Current Assets
|
25,175
|
25,953
|
(778)
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
Non-Current Liabilities
|
46,360
|
47,106
|
(746)
|
|
Current Liabilities
|
13,406
|
17,972
|
(4,566)
|
|
|
|
|
|
|
Equity and Reserves:
|
|
|
|
|
Capital and Reserves to Equity Holders
|
52,377
|
49,045
|
3,332
|
|
|
|
|
|
|
Cash plus working capital surplus
|
12,491
|
8,603
|
3,888
|
Non-current Assets
Non-current assets decreased by
(USD 1.2 million) to USD 87.0 million at H1 2024 from USD 88.2
million at YE 2023:
·
Property, plant and equipment USD 31.3 million
(YE 2023: USD 35.2 million) decrease of USD 3.9 million relates to
USD 1.7 million additions less DDA of USD (3.0) million and
decommissioning reduction USD (2.6) million and impairment of USD
(0.2) million.
·
Intangible assets USD 31.7 million (YE 2023: USD
31.4 million) increase of USD 0.3 million mainly relates to
exploration G&G costs for the Galeota and Buenos Ayres Block
USD 0.4 million less amortisation of USD (0.1) million.
·
Deferred tax asset of USD 16.4 million (YE 2023:
USD 15.7 million).
·
Abandonment fund and performance bond of USD 5.8
million (YE 2023: USD 5.6 million).
·
Right of use asset of USD 1.8 million (YE 2023:
USD 0.3 million) relating to motor vehicles, office building, staff
house and office equipment leases that met the recognition criteria
of a lease under IFRS 16.
Current Assets
Current assets decreased by USD
0.8 million to USD 25.2 million at H1 2024 from USD 25.9 million at
YE 2023:
·
Cash and cash equivalents of USD 8.0 million (YE
2023: USD 9.8 million). Reduction of USD 1.8 million mainly due to
repayment of overdraft facility (USD 1.0 million) and a
combination of stable operating cash generation
mainly being impacted by spillover Jacobin-1 well costs paid in
2024, business development/acquisition costs and payments of USD 1.7 million made in connection with the
takeover offers.
·
Trade and other receivables of USD 12.7 million
(YE 2023: USD 11.7 million).
o Trade and other receivables (less impairment) of USD 3.9
million (YE 2023: USD 4.4 million)
o VAT recoverable of USD 7.6 million (YE 2023: USD 6.0
million).
o Prepayments and other receivables (less impairment) of USD
1.2 million (YE 2023: USD 1.3 million).
·
Inventories USD 4.0 million (YE 2023: USD 3.9
million) to support normal business operations.
·
Taxation recoverable USD 0.5 million (YE 2023:
USD 0.5 million)
Non-current Liabilities
Non-current liabilities decreased
to USD 46.4 million at H1 2024 from USD 47.1 million at YE 2023,
primarily due to:
·
Provision for other liabilities (predominantly
decommissioning costs) of USD 42.6 million (YE 2023: USD 45.1
million). The decrease is mainly due to revision of the discount
rate at H1 2024.
·
Deferred tax liability USD 2.5 million (YE 2023:
USD 1.9 million).
·
Lease liability of USD 1.3 million (YE 2023: USD
0.1 million). The increase is mainly due to new leases entered into
in H1 2024.
Current Liabilities
Current liabilities decreased to
USD 13.4 million at H1 2024 (YE 2023: USD 18.0 million) primarily
due to:
·
Trade and other payables of USD 8.7 million (YE
2023: USD 13.1 million).
o Trade payables of USD 3.5 million (YE 2023: USD 3.2
million).
o Accruals and other payables of USD 4.6 million (YE 2023: USD
8.3 million) significantly reduced due to payments of Jacobin-1
Well related costs accrued in 2023 and paid in 2024.
o SPT payable of nil (YE 2023: USD 1.4 million).
o VAT payable of USD 0.6 million (YE 2023: USD 0.2
million)
·
CIBC FirstCaribbean bank overdraft facility USD
3.0 million (YE 2023: USD 4.0 million). The reduction is
mainly due to partial repayment of overdraft facility.
·
Provision for other liabilities of USD 0.7
million (YE 2023: USD 0.6 million) mainly related to the Jacobin-1
well disputed drilling cost provision.
·
Lease liability of USD 0.5 million (YE 2023: USD
0.2 million).
·
Taxes payable of USD 0.5 million (YE 2023: USD
0.1 million).
Cash plus Working Capital Surplus
Cash plus working capital surplus
calculated as Current Assets less Current Liabilities (excluding
Provisions for other liabilities and Derivative
assets/(liabilities)) increased by 45% to USD 12.5 million (YE
2023: USD 8.6 million).
Reconciliation between Adjusted EBIDA after Current Taxes and
Cash Inflow from Operating Activities
|
|
H1 2024
USD'000
|
H1 2023
USD'000
|
|
Adjusted EBIDA after Current Taxes
|
8,595
|
6,670
|
|
Exceptional items
|
(1,714)
|
(371)
|
|
Changes in Working
Capital
|
(2,506)
|
(37)
|
|
Income tax incurred
|
662
|
470
|
|
Income tax paid
|
(240)
|
(475)
|
|
Cash flow from operating activities
|
4,797
|
6,257
|
APPENDIX 1: TRADING SUMMARY
A summary of realised price,
production, royalties, Opex, G&A and operating break-evens
expenditure metrics is set out below:
Trading Summary
Table
|
Details
|
H1 2024
|
H1 2023
|
Change %
|
|
|
|
|
|
|
Realised price (USD/bbl)
|
71.5
|
65.2
|
10
|
|
Sales (bopd)
|
|
|
|
|
Onshore
|
1,343
|
1,512
|
(11)
|
|
West Coast
|
385
|
338
|
14
|
|
East Coast
|
867
|
1,011
|
(14)
|
|
Group Consolidated
|
2,595
|
2,861
|
(9)
|
|
|
|
|
|
|
Metrics (USD/bbl)
|
|
|
|
|
Royalties/bbl - Onshore
|
29.8
|
24.3
|
23
|
|
Royalties/bbl - West
Coast
|
13.3
|
12.0
|
11
|
|
Royalties/bbl - East
Coast
|
13.5
|
12.7
|
6
|
|
Royalties/bbl -
Consolidated
|
21.9
|
18.8
|
17
|
|
|
|
|
|
|
Opex/bbl - Onshore
|
22.7
|
16.9
|
34
|
|
Opex/bbl - West Coast
|
29.6
|
26.9
|
10
|
|
Opex/bbl - East Coast
|
30.6
|
22.5
|
36
|
|
Opex/bbl - Group
Consolidated
|
23.2
|
20.1
|
15
|
|
|
|
|
|
|
G&A/bbl - Group
Consolidated
|
6.8
|
6.3
|
9
|
|
Operating break-even (USD/bbl)
|
|
|
|
|
Onshore
|
32.5
|
22.8
|
43
|
|
West Coast
|
34.1
|
32.3
|
6
|
|
East Coast
|
36.5
|
26.3
|
39
|
|
Group Consolidated
|
42.6
|
34.5
|
31
|
Notes: Group consolidated operating break-even: The realised
price/bbl for which the adjusted EBITDA/bbl exclusive of net
derivative expense/income for the Group is equal to
zero.
STATEMENT OF DIRECTORS' RESPONSIBILITY
The Directors confirm that this
condensed consolidated interim financial information has been
prepared in accordance with International Accounting Standards
("IAS") and that the interim management report includes:
·
an indication of important events that have
occurred during the first six (6) months and their impact on the
condensed set of financial statements, and a description of the
principal risks and uncertainties for the remaining six (6) months
of the financial year; and
·
the management report, which is incorporated into
the directors' report, includes a fair review of the development
and performance of the business and the position of the Company and
the undertakings included in the consolidation taken as a whole,
together with a description of the principal risks and
uncertainties that they face; and
·
material related party transactions in the first
six (6) months and any material changes in the related-party
transactions described in the last annual report.
A list of the current Directors is
maintained on the Trinity Exploration & Production plc website
www.trinityexploration.com.
By order of the Board
Jeremy Bridglalsingh
Chief Executive Officer
26 September 2024
INDEPENDENT REVIEW REPORT TO TRINITY EXPLORATION &
PRODUCTION plc
Conclusion
Based on our review, nothing has
come to our attention that causes us to believe that the condensed
set of financial statements in the half-yearly financial report for
the six months ended 30 June 2024 is not prepared, in all material
respects, in accordance with UK adopted International Accounting
Standard 34 and the London Stock Exchange AIM Rules for
Companies.
We have been engaged by the
company to review the condensed set of financial statements in the
half-yearly financial report for the six months ended 30 June 2024
which comprises of Condensed Consolidated Statement of
Comprehensive Income, Condensed Consolidated Statement of Financial
Position, Condensed Consolidated Statement of Changes in Equity and
Condensed Consolidated Cash Flow Statements and notes to the
Condensed Consolidated Interim Financial Statements.
Basis for conclusion
We conducted our review in
accordance with Revised International Standard on Review
Engagements (UK) 2410, "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" ("ISRE (UK)
2410 (Revised)"). A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
As disclosed in note 1, the annual
financial statements of the Group are prepared in accordance with
UK adopted international accounting standards. The condensed set of
financial statements included in this half-yearly financial report
has been prepared in accordance with UK adopted International
Accounting Standard 34, "Interim Financial Reporting.
Conclusions relating to going concern
Based on our review procedures,
which are less extensive than those performed in an audit as
described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors
have inappropriately adopted the going concern basis of accounting
or that the directors have identified material uncertainties
relating to going concern that are not appropriately
disclosed.
This conclusion is based on the
review procedures performed in accordance with ISRE (UK) 2410
(Revised), however future events or conditions may cause the Group
to cease to continue as a going concern.
Responsibilities of directors
The directors are responsible for
preparing the half-yearly financial report in accordance with the
London Stock Exchange AIM Rules for Companies which require that
the half-yearly report be presented and prepared in a form
consistent with that which will be adopted in the Company's annual
accounts having regard to the accounting standards applicable to
such annual accounts.
In preparing the half-yearly
financial report, the directors are responsible for assessing the
company's ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to
liquidate the company or to cease operations, or have no realistic
alternative but to do so.
Auditor's responsibilities for the review of the financial
information
In reviewing the half-yearly
report, we are responsible for expressing to the Company a
conclusion on the condensed set of financial statement in the
half-yearly financial report. Our conclusion, including our
Conclusions Relating to Going Concern, are based on procedures that
are less extensive than audit procedures, as described in the Basis
for Conclusion paragraph of this report.
Use of our report
Our report has been prepared in
accordance with the terms of our engagement to assist the Company
in meeting the requirements of the rules of the London Stock
Exchange AIM Rules for Companies for no other purpose. No
person is entitled to rely on this report unless such a person is a
person entitled to rely upon this report by virtue of and for the
purpose of our terms of engagement or has been expressly authorised
to do so by our prior written consent. Save as above, we do
not accept responsibility for this report to any other person or
for any other purpose and we hereby expressly disclaim any and all
such liability.
BDO LLP
Chartered Accountants
London, UK
26 September 2024
BDO LLP is a limited liability
partnership registered in England and Wales (with registered number
OC305127).
|
Trinity Exploration &
Production plc
Condensed Consolidated Statement
of Comprehensive Income
for the period ended 30 June
2024
(Expressed in United States Dollars)
|
|
|
Notes
|
6 months to 30 June
2024
|
|
6 months to 30 June
2023
|
|
Year ended 31 December
2023
|
|
|
|
$'000
|
|
$'000
|
|
$'000
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(audited)
|
|
Operating Revenues
|
|
|
|
|
|
|
|
Crude oil sales
|
|
33,787
|
|
33,751
|
|
69,819
|
|
Other income
|
|
17
|
|
3
|
|
7
|
|
|
|
33,804
|
|
33,754
|
|
69,826
|
|
Operating Expenses
|
|
|
|
|
|
|
|
Royalties
|
|
(10,359)
|
|
(9,711)
|
|
(20,864)
|
|
Production costs
|
|
(10,958)
|
|
(10,402)
|
|
(22,402)
|
|
Depreciation, depletion and
amortisation
|
8-10
|
(2,984)
|
|
(4,472)
|
|
(8,935)
|
|
General and administrative
expenses
|
|
(3,230)
|
|
(3,254)
|
|
(7,375)
|
|
(Impairment)/reversal of financial
assets
|
|
(24)
|
|
25
|
|
(64)
|
|
Share option expense
|
14
|
(222)
|
|
(254)
|
|
(528)
|
|
Foreign exchange
gain/(loss)
|
|
35
|
|
142
|
|
(65)
|
|
|
|
(27,742)
|
|
(27,926)
|
|
(60,233)
|
|
Operating Profit Before Supplemental Petroleum Taxes
("SPT")
|
|
6,062
|
|
5,828
|
|
9,593
|
|
|
|
|
|
|
|
|
|
SPT
|
|
--
|
|
(3,247)
|
|
(5,697)
|
|
Operating Profit Before Impairment, Exceptional items and
Decommissioning reduction
|
|
6,062
|
|
2,581
|
|
3,896
|
|
|
|
|
|
|
|
|
|
Impairment
|
3
|
(398)
|
|
--
|
|
(13,462)
|
|
Exceptional items
|
5
|
(1,714)
|
|
(371)
|
|
(307)
|
|
Decommissioning
reduction
|
4
|
826
|
|
--
|
|
2,508
|
|
Operating Profit/(Loss)
|
|
4,776
|
|
2,210
|
|
(7,365)
|
|
|
|
|
|
|
|
|
|
Finance Income
|
7
|
13
|
|
25
|
|
50
|
|
Finance cost
|
7
|
(1,001)
|
|
(1,124)
|
|
(2,214)
|
|
Profit/(Loss) Before Income Taxation
|
|
3,788
|
|
1,111
|
|
(9,529)
|
|
Income Taxation expense
|
6
|
(662)
|
|
(428)
|
|
2,725
|
|
Profit/(Loss) for the period
|
|
3,126
|
|
683
|
|
(6,804)
|
|
|
|
|
|
|
|
|
|
Other Comprehensive Income/(loss)
|
|
|
|
|
|
|
|
Exchange differences on
translation of foreign operations
|
|
1
|
|
(6)
|
|
1
|
|
Total Comprehensive Income/(loss) for the
period
|
|
3,127
|
|
677
|
|
(6,803)
|
|
Earnings per share (expressed in dollars per
share)
|
|
|
|
|
|
|
|
Basic
|
20
|
0.08
|
|
0.02
|
|
0.00
|
|
Diluted
|
|
0.08
|
|
0.02
|
|
0.00
|
|
Trinity Exploration &
Production plc
Condensed Consolidated Statement
of Financial Position
for the period ended 30 June
2024
(Expressed in United States
Dollars)
|
|
|
Notes
|
As at 30 June
2024
|
As at 30 June
2023
|
As at 31 December
2023
|
|
ASSETS
|
|
$'000
|
$'000
|
$'000
|
|
|
|
(unaudited)
|
(unaudited)
|
(audited)
|
|
Non-current Assets
|
|
|
|
|
|
Property, plant and
equipment
|
8
|
31,337
|
44,134
|
35,188
|
|
Right-of-use assets
|
9
|
1,798
|
572
|
312
|
|
Intangible assets
|
10
|
31,685
|
38,799
|
31,399
|
|
Abandonment fund
|
|
5,175
|
4,750
|
4,962
|
|
Performance bond
|
|
606
|
602
|
606
|
|
Deferred tax asset
|
15
|
16,367
|
12,465
|
15,703
|
|
|
|
86,968
|
101,322
|
88,170
|
|
Current Assets
|
|
|
|
|
|
Inventories
|
|
3,939
|
5,100
|
3,916
|
|
Trade and other
receivables
|
11
|
12,702
|
9,773
|
11,709
|
|
Taxation recoverable
|
|
503
|
--
|
509
|
|
Cash and cash
equivalents
|
|
8,031
|
11,301
|
9,819
|
|
|
|
25,175
|
26,174
|
25,953
|
|
Total Assets
|
|
112,143
|
127,496
|
114,123
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Capital and Reserves Attributable to Equity
Holders
|
|
|
|
|
|
Share capital
|
12
|
399
|
399
|
399
|
|
Share based payment
reserve
|
14
|
2,465
|
3,224
|
2,812
|
|
Reverse acquisition
reserve
|
|
(89,268)
|
(89,268)
|
(89,268)
|
|
Treasury shares
|
13
|
(1,481)
|
(2,088)
|
(1,553)
|
|
Translation reserve
|
|
(1,667)
|
(1,654)
|
(1,666)
|
|
Retained earnings
|
|
141,929
|
145,877
|
138,321
|
|
Total Equity
|
|
52,377
|
56,490
|
49,045
|
|
|
|
|
|
|
|
Non-current Liabilities
|
|
|
|
|
|
Lease liabilities
|
9
|
1,314
|
239
|
137
|
|
Deferred tax liability
|
15
|
2,525
|
1,898
|
1,862
|
|
Provision for other
liabilities
|
16
|
42,475
|
53,469
|
45,076
|
|
Employee benefits
|
|
46
|
28
|
31
|
|
|
|
46,360
|
55,634
|
47,106
|
|
Current Liabilities
|
|
|
|
|
|
Trade and other
payables
|
17
|
8,744
|
12,833
|
13,094
|
|
Bank overdraft
|
18
|
3,000
|
2,000
|
4,000
|
|
Lease liabilities
|
9
|
476
|
394
|
208
|
|
Provision for other
liabilities
|
|
722
|
145
|
622
|
|
Dividend Payable
|
|
4
|
--
|
5
|
|
Taxation Payable
|
|
460
|
--
|
43
|
|
|
|
13,406
|
15,372
|
17,972
|
|
Total Liabilities
|
|
59,766
|
71,006
|
65,078
|
|
Total Shareholders' Equity and Liabilities
|
|
112,143
|
127,496
|
114,123
|
|
Trinity Exploration &
Production plc
Condensed Consolidated Statement
of Cashflows
for the period ended 30 June
2024
(Expressed in United States
Dollars)
|
|
|
Notes
|
6 months to 30 June
2024
|
6 months to 30 June
2023
|
Year ended 31 December
2023
|
|
|
|
|
|
|
|
|
|
$'000
|
$'000
|
$'000
|
|
|
|
(unaudited)
|
(unaudited)
|
(audited)
|
|
Operating Activities
|
|
|
|
|
|
Profit /(Loss) before
taxation
|
|
3,788
|
1,111
|
(9,529)
|
|
Adjustments for:
|
|
|
|
|
|
Foreign exchange
difference
|
|
(35)
|
(142)
|
65
|
|
Finance Income
|
|
(13)
|
(25)
|
(50)
|
|
Finance cost
|
7
|
92
|
71
|
137
|
|
Share option expense
|
|
222
|
254
|
528
|
|
Finance cost - decommissioning
provision
|
7
|
909
|
1,053
|
2,077
|
|
Depreciation, depletion and amortisation
|
8-10
|
2,984
|
4,472
|
8,935
|
|
Loss on disposal
|
|
--
|
--
|
15
|
|
Impairment of exploration and
evaluation assets
|
|
72
|
--
|
11,766
|
|
Impairment of property, plant and
equipment
|
8
|
210
|
--
|
1,542
|
|
Inventory Impairment
|
3
|
116
|
--
|
--
|
|
Impairment/(reversal of
impairment) loss on financial assets
|
|
24
|
(25)
|
64
|
|
Other non-cash items
|
|
--
|
--
|
147
|
|
Net release of decommissioning
costs
|
|
(826)
|
--
|
(2,508)
|
|
|
|
7,543
|
6,769
|
13,189
|
|
|
|
|
|
|
|
Changes In Working Capital
|
|
|
|
|
|
(Increase)/decrease in
Inventory
|
|
(139)
|
(485)
|
699
|
|
(Increase)/decrease
in Trade and other receivables
|
|
(1,141)
|
691
|
(1,664)
|
|
(Decrease)/Increase in Trade and
other payables
|
|
(1,226)
|
(243)
|
1,822
|
|
|
|
(2,506)
|
(37)
|
857
|
|
Income taxation paid
|
|
(240)
|
(475)
|
(831)
|
|
|
|
|
|
|
|
Net Cash Inflow From Operating Activities
|
|
4,797
|
6,257
|
13,215
|
|
Investing Activities
|
|
|
|
|
|
Exploration and Evaluation
Assets
|
|
(1,287)
|
(2,052)
|
(8,972)
|
|
Computer software and investment
in research & development
|
|
--
|
(284)
|
(492)
|
|
Purchase of property, plant &
equipment
|
|
(3,927)
|
(3,240)
|
(5,917)
|
|
Net Cash Outflow From Investing Activities
|
|
(5,214)
|
(5,576)
|
(15,381)
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
Finance income
|
|
13
|
25
|
50
|
|
Finance cost
|
|
(33)
|
(28)
|
(50)
|
|
Principal paid on lease
liability
|
|
(286)
|
(291)
|
(589)
|
|
Interest paid on lease
liability
|
|
(59)
|
(43)
|
(86)
|
|
Dividends paid
|
|
(1)
|
--
|
(231)
|
|
Bank overdraft
repayment
|
|
(1,000)
|
(700)
|
1,300
|
|
Acquisition of treasury
shares
|
|
--
|
(566)
|
(566)
|
|
|
|
|
|
|
|
Net Cash Outflow From Financing Activities
|
|
(1,366)
|
(1,603)
|
(172)
|
|
|
|
|
|
|
|
Decrease in Cash and Cash Equivalents
|
|
(1,783)
|
(922)
|
(2,338)
|
|
Cash And Cash Equivalents
|
|
|
|
|
|
At beginning of period
|
|
9,819
|
12,131
|
12,131
|
|
Effects of foreign exchange rates
on cash
|
|
(5)
|
92
|
26
|
|
Decrease
|
|
(1,783)
|
(922)
|
(2,338)
|
|
At end of period
|
|
8,031
|
11,301
|
9,819
|
|
|
|
|
|
|
|
|
|
|
|
|
Trinity Exploration & Production
plc
Notes to the Condensed
Consolidated Financial Statements for the
period ended 30 June 2024
1 Background, Accounting Policies and Estimates
Background
Trinity Exploration &
Production plc ("Trinity")
is incorporated and registered in England and trades on the
Alternative Investment Market ("AIM"), a market operated by London
Stock Exchange plc. Trinity ("the Company") and its subsidiaries
(together "the Group") are
involved in the exploration, development and production of oil
reserves in Trinidad and Tobago ("T&T").
Basis of Preparation
These condensed consolidated
interim financial statements for the six months ended 30 June 2024
have been prepared in accordance with international accounting
standards as adopted in the United Kingdom. The condensed
consolidated interim financial statements should be read in
conjunction with the annual financial statements for the year ended
31 December 2023, which have also been prepared in accordance with
UK IFRS.
The results for the six months
ended 30 June 2024 and 30 June 2023 have been reviewed, not
audited, and do not comprise statutory accounts within the meaning
of section 434 of the Companies Act 2006. Statutory accounts for
the year ended 31 December 2023 were approved by the board of
directors and delivered to the Registrar of Companies. The report
of the independent auditors on those accounts was unqualified. The
interim report has been reviewed by the auditor.
Going Concern
The Board has adopted the going
concern basis in preparing the condensed consolidated interim
financial statements.
In making their going concern
assessment, the Board have considered the Group's current financial
position, budget and cash flow forecast. The base case
cashflow forecast at a minimum contemplated a 12-month outlook
illustrating the ability of the Group to operate on a going concern
basis one year post completion of the interim review. The base
cashflow forecast demonstrated that the Group will remain with a
positive cash flow position, and as such being able to meet its
liabilities as they fall due.
The base case cashflow forecast
was prepared considering the follow:
· Future oil prices are assumed to be in line with the forward
curve prevailing as at 1 August 2024. The forward price curve
applied in the cash flow forecast starts at a realised price of
$69.3/bbl in August 2024, fluctuating each month down to $67.5/bbl
in December 2024 through to $64.3/bbl in December 2025;
· Average forecast production for the years to December 2024
and December 2025 are in line with the Group's asset development
plans, with production being maintained by recompletions, workovers
and swabbing activities;
· No
SPT is assumed to be incurred on both onshore and offshore assets
in 2024 or 2025, as the forecast realised price is below
$75.0/bbl;
· Trinity continuing to progress various growth and business
development opportunities;
· No
derivative instruments being put in place for 2024; and
· No
drawdown of working capital overdraft facility
Management considers this is a
reasonable base scenario, reflecting a prudent outlook for the
future oil price, production profile and costs. The cash flow
forecast showed that the Group will remain in a strong financial
position for at least the next twelve months, and as such being
able to meet its liabilities as they fall due.
Management considered a separate
stressed scenario including:
· the
effect of reductions in Brent oil prices at USD 60.0/bbl being
sustained across the forecast period, noting that the base case
pricing is in line with market prices; and
· the
compounded impact of a reduction in production by 10%.
The stressed case cash flow
forecast allows for the impact of mitigating actions that are
within the Group's control which include:
· Reducing non-core and discretionary opex and administrative
costs across the forecast period.
· Reducing discretionary capital expenditure and capital
returns over the forecast period.
The stressed case cashflow
forecasts demonstrate that the Group's cash balances are maintained
under such scenarios and as such are sufficient to meet the Group's
obligations as they fall due.
As a result, at the date of
approval of the interim financial statements, the Board have a
reasonable expectation that the Group has sufficient and adequate
resources to continue in existence for at least twelve months post
approval of these financial statements . For this reason, the Board
have concluded it is appropriate to continue to adopt the going
concern basis of accounting in the preparation of the condensed
consolidated interim financial statements.
Accounting policies
The accounting policies adopted
are consistent with those of the previous financial year 31
December 2023 and corresponding interim reporting period, except
for those set out in the standards below:
- New standards and
amendments effective for periods beginning on 1 January 2024 and
therefore relevant to these condensed consolidated interim
financial statements.
· IFRS
17 Insurance Contracts
· Disclosure of Accounting Policies (Amendments to IAS 1
Presentation of Financial Statements and IFRS Practice Statement 2
Making Materiality Judgements); Definition of Accounting Estimates
(Amendments to IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors); Deferred Tax related to Assets and
Liabilities arising from a Single Transaction (Amendments to IAS 12
Income Taxes); and
· International Tax Reform - Pillar Two Model Rules (Amendment
to IAS 12 Income Taxes) (effective immediately upon the issue of
the amendments and retrospectively).
Cash and cash equivalents
For the purpose of presentation in
the condensed consolidated statement of cash flows, cash and cash
equivalents includes cash on hand, deposits held at call with
financial institutions, and other short-term, highly liquid
investments with original maturities of three months or less that
are readily convertible to known amounts of cash.
Trade receivables
Trade receivables are amounts due
from the Group's sole customer for crude oil sold in the ordinary
course of business. They are generally due for settlement within 30
days and therefore are all classified as current. Trade receivables
are recognised initially at the amount of consideration that is
unconditional unless they contain significant financing components,
when they are recognised at fair value.
Impairment of financial assets
The Group applied the simplified
approach to determine impairment of its trade and other
receivables. The simplified approach requires expected lifetime
losses to be recognised from initial recognition of the
receivables. This involves determining the expected loss rates
using a provision matrix that is based on the Group's historical
default rates observed over the expected life of the receivables
and adjusted for forward looking estimates. This is then applied to
the gross carrying amount of the receivables to arrive at the loss
allowance for the period.
Financial assets recognition of
impairment provisions under IFRS 9 is based on the expected credit
losses ("ECL") model. The
ECL model is applicable to financial assets classified at amortised
cost and contract assets under IFRS 15: Revenue from Contracts with
Customers. The measurement of ECL reflects an unbiased and
probability weighted amount that is available without undue cost or
effort at the reporting date, about past events, current conditions
and forecasts of future economic conditions.
Trade and other payables
Trade and other payables are
recognised initially at fair value and subsequently measured at
amortised cost using the effective interest rate method.
Segment Information
Management have considered the
requirements of IFRS 8 Operating Segments, in regard to the
determination of operating segments, and concluded that the Group
has only one significant operating segment being the exploration
and development, production and extraction of
hydrocarbons.
All revenue is generated from
crude oil sales in T&T to one customer, Heritage Petroleum
Company Limited ("Heritage"). All non-current assets of
the Group are located in T&T.
Derivative financial instruments and hedging
activities
The Company has not applied hedge
accounting and all derivatives are measured at fair value through
profit and loss.
Estimates
The preparation of condensed
consolidated interim financial statements requires management to
make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of
assets and liabilities, income and expenses. Actual results may
differ from these estimates.
In preparing these condensed
consolidated interim financial statements, the significant
judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were the
same as those that applied to the consolidated financial statements
for the year ended 31 December 2023. Reference can be made note
3 (Critical Accounting Estimates and Judgements), in the Annual
Report December 2023.
2
Financial risk
management
Financial risk factors
The Group's activities expose it
to a variety of financial risks: market risk (including currency
risk, fair value interest rate risk, cash flow interest rate risk
and price risk), credit risk and liquidity risk. The Group's
overall risk management program seeks to minimise potential adverse
effects on the Group's financial performance.
The condensed consolidated interim
financial statements do not include all financial risk management
information and disclosures required in the annual financial
statements; they should be read in conjunction with the Group's
annual financial statements for 2022, which can be found at
www.trinityexploration.com.
Liquidity risk
Prudent liquidity risk management
implies maintaining sufficient cash and short-term funds and the
availability of funding through an adequate amount of committed
credit facilities. Management monitors rolling forecasts of the
Group's liquidity and cash and cash equivalents on the basis of
expected cash flow. As at 30 June 2024, the Group held cash
at bank of USD 8.0 million (31 December 2023: USD 9.8
million).
Credit risk
Credit risk arises from Cash and
Cash equivalents, deposits with banks and financial institutions,
as well as credit exposures to customers, including outstanding
receivables. For banks and financial institutions, management
determines the placement of funds based on its judgement and
experience to minimise risk.
All sales are made to a
state-owned entity -Heritage.
3
Impairment
|
|
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
|
|
$'000
|
$'000
|
$'000
|
|
Impairment of inventory
|
|
116
|
--
|
--
|
|
Impairment of Jacobin Well
Costs
|
|
72
|
--
|
9,634
|
|
Impairment of PS4 E&E
costs
|
|
--
|
--
|
2,132
|
|
Impairment of property, plant and
equipment
|
|
210
|
--
|
1,549
|
|
Other impairment of property,
plant and equipment
|
|
--
|
--
|
147
|
|
Total
|
|
398
|
--
|
13,462
|
Management performed an impairment
assessment at 30 June 2024 resulting in USD 0.2 million in
impairment.
4 Decommissioning Release/Reduction
|
|
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
|
|
$'000
|
$'000
|
$'000
|
|
Reduction of Decommissioning costs
estimates
|
|
(826)
|
--
|
(114)
|
|
Release of Decommissioning
Liability-Tabaquite Field
|
|
--
|
--
|
(2,394)
|
|
|
|
|
|
|
|
Decommissioning release/reduction
total
|
|
(826)
|
--
|
(2,508)
|
5 Exceptional Items
Items that are material either
because of their size, their nature, or that are non-recurring are
considered as exceptional items and are presented within the line
items to which they best relate. During the current period,
exceptional items as detailed below have been included in the
condensed consolidated statement of comprehensive income. An
analysis of the amounts presented as exceptional items in these
condensed interim financial statements are highlighted
below.
|
|
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
|
|
$'000
|
$'000
|
$'000
|
|
Legal fees
|
|
1,252
|
--
|
--
|
|
Financial adviser fees
|
|
254
|
--
|
--
|
|
Other fees
|
|
208
|
--
|
--
|
|
ICT incident costs
|
|
--
|
280
|
161
|
|
Bravo fire costs
|
|
--
|
91
|
146
|
|
Total
|
|
1,714
|
371
|
307
|
6 Income
taxation
expense
|
a. Taxation
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
Current tax
|
$'000
|
$'000
|
$'000
|
|
|
|
|
|
|
Petroleum profits tax
|
474
|
336
|
422
|
|
Unemployment levy
|
188
|
134
|
169
|
|
Deferred tax
|
|
|
|
|
- Current period
|
|
|
|
|
Movement in asset due to tax
losses recognised (Note 16)
|
(664)
|
--
|
(3,238)
|
|
Movement in liability due to
accelerated tax depreciation (note 16)
|
705
|
--
|
(78)
|
|
Unwinding of deferred tax on fair
value uplift
|
(41)
|
(42)
|
--
|
|
Income tax expense
|
662
|
428
|
(2,725)
|
Current tax: The Group's effective tax rate varies based on
jurisdiction.
|
Tax rates:
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
|
$'000
|
$'000
|
$'000
|
|
Corporation Tax UK
|
19%
|
19%
|
19%
|
|
Corporation Tax TT
|
30%
|
30%
|
30%
|
|
Petroleum Profits Tax
|
50%
|
50%
|
50%
|
|
Unemployment levy
|
5%
|
5%
|
5%
|
Deferred tax:
The Group has a deferred tax asset
of $16.4 million on its condensed consolidated statement of
financial position which is the amount it expects to recover within
3 years based on the expected taxable profits generated by Group
companies over that period.
7 Finance income
|
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
|
$'000
|
$'000
|
$'000
|
|
Interest income
|
13
|
25
|
50
|
Finance costs
|
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
|
$'000
|
$'000
|
$'000
|
|
Decommissioning - Unwinding of
discount
|
(909)
|
(1,053)
|
(2,077)
|
|
Interest and other expenses on
overdraft
|
(33)
|
(28)
|
(51)
|
|
Interest on leases
|
(59)
|
(43)
|
(86)
|
|
|
(1,001)
|
(1,124)
|
(2,214)
|
8 Property, Plant and Equipment
|
|
Plant &
Equipment
|
Leasehold &
Buildings
|
Oil & Gas
Property
|
Total
|
|
|
$'000
|
$'000
|
$'000
|
$'000
|
|
Opening net book amount at 1
January 2024
|
5,141
|
1,106
|
28,941
|
35,188
|
|
Additions
|
1,131
|
3
|
577
|
1,711
|
|
Reduction to decommissioning
estimate
|
--
|
--
|
(2,679)
|
(2,679)
|
|
Impairment (note 3)
|
--
|
--
|
(210)
|
(210)
|
|
DD&A charge for
period
|
(473)
|
(91)
|
(2,109)
|
(2,673)
|
|
Closing net book amount at 30 June
2024
|
5,799
|
1,018
|
24,520
|
31,337
|
|
|
|
|
|
|
|
At 30 June 2024
|
|
|
|
|
|
Cost
|
20,840
|
3,513
|
327,821
|
352,174
|
|
Accumulated DD&A and
impairment
|
(15,041)
|
(2,495)
|
(303,301)
|
(320,837)
|
|
Closing net book amount at 30 June
2024
|
5,799
|
1,018
|
24,520
|
31,337
|
|
|
Plant &
Equipment
|
Leasehold &
Buildings
|
Oil & Gas
Property
|
Total
|
|
|
$'000
|
$'000
|
$'000
|
$'000
|
|
Opening net book amount at 1
January 2023
|
4,255
|
1,271
|
39,461
|
44,987
|
|
Additions
|
868
|
12
|
2,368
|
3,248
|
|
DD&A charge for
period
|
(293)
|
(96)
|
(3,712)
|
(4,101)
|
|
Closing net book amount at 30 June
2023
|
4,830
|
1,187
|
38,117
|
44,134
|
|
|
|
|
|
|
|
At 30 June 2023
|
|
|
|
|
|
Cost
|
19,061
|
3,495
|
325,865
|
348,421
|
|
Accumulated DD&A and
impairment
|
(14,231)
|
(2,308)
|
(287,748)
|
(304,287)
|
|
Closing net book amount at 30 June
2023
|
4,830
|
1,187
|
38,117
|
44,134
|
|
|
Plant &
Equipment
|
Leasehold &
Buildings
|
Oil & Gas
Assets
|
Total
|
|
|
$'000
|
$'000
|
$'000
|
$'000
|
|
Year ended 31 December 2023
|
|
|
|
|
|
Opening net book amount at 1
January 2022
|
4,255
|
1,271
|
39,461
|
44,987
|
|
Additions
|
1,573
|
27
|
5,306
|
6,906
|
|
Transfers
|
--
|
--
|
319
|
319
|
|
Disposals
|
(21)
|
--
|
(6)
|
(27)
|
|
Tabaquite decommissioning asset
relinquishment
|
--
|
--
|
(632)
|
(632)
|
|
Reduction to decommissioning
estimate
|
--
|
--
|
(6,508)
|
(6,508)
|
|
Impairment charge (note
3)
|
(36)
|
--
|
(1,653)
|
(1,689)
|
|
DD&A charge for
year
|
(630)
|
(192)
|
(7,346)
|
(8,168)
|
|
Closing net book amount 31 December 2023
|
5,141
|
1,106
|
28,941
|
35,188
|
|
|
|
|
|
|
|
At 31 December 2023
|
|
|
|
|
|
Cost
|
19,709
|
3,510
|
327,454
|
350,673
|
|
Accumulated DD&A and
impairment
|
(14,568)
|
(2,404)
|
(298,513)
|
(315,485)
|
|
Closing net book amount
|
5,141
|
1,106
|
28,941
|
35,188
|
9 Leases
(i)
Amounts recognised in the condensed consolidated statement of
financial position.
The condensed consolidated
statement of financial position shows the following amounts
relating to leases:
|
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
|
$'000
|
$'000
|
$'000
|
|
Right-of-use assets
|
|
|
|
|
Non-current assets
|
1,798
|
572
|
312
|
|
|
|
|
|
|
Lease Liabilities
|
|
|
|
|
Current
|
476
|
394
|
208
|
|
Non-current
|
1,314
|
239
|
137
|
|
|
1,790
|
633
|
345
|
The ROU assets relate to motor vehicles, office building,
staff house and office equipment leases that met the recognition
criteria of a Lease under IFRS 16.
(ii) Amounts
recognised in the condensed consolidated statement of comprehensive
income.
The condensed consolidated
statement of comprehensive income shows the following amounts
relating to leases:
|
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
|
$'000
|
$'000
|
$'000
|
|
Depreciation charge of ROU assets
|
|
|
|
|
Depreciation
|
(174)
|
(265)
|
(534)
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense (including
finance cost)
|
(59)
|
(43)
|
(135)
|
The total cash outflow for leases
in June 2024 was $0.3 million (June 2023: $0.3 million)
10 Intangible Assets
|
|
Computer
Software
|
Exploration and evaluation
assets
|
Research and
Development
|
Total
|
|
|
$'000
|
$'000
|
$'000
|
$'000
|
|
Opening net book amount at 1
January 2024
|
664
|
30,239
|
496
|
31,399
|
|
Additions
|
--
|
450
|
45
|
495
|
|
Impairment charge
|
--
|
(72)
|
--
|
(72)
|
|
Amortisation charge for the
year
|
(137)
|
--
|
--
|
(137)
|
|
At 30 June 2024
|
527
|
30,617
|
541
|
31,685
|
|
|
|
|
|
|
|
Opening net book amount at 1
January 2023
|
405
|
32,903
|
229
|
33,537
|
|
Additions
|
204
|
5,084
|
80
|
5,368
|
|
Amortisation charge for the
year
|
(106)
|
--
|
--
|
(106)
|
|
At 30 June 2023
|
503
|
37,987
|
309
|
38,799
|
|
|
|
|
|
|
|
Opening net book amount at 1
January 2023
|
405
|
32,903
|
229
|
33,537
|
|
Additions
|
492
|
9,421
|
267
|
10,180
|
|
Transfers
|
--
|
(319)
|
--
|
(319)
|
|
Impairment charge
|
--
|
(11,766)
|
--
|
(11,766)
|
|
Amortisation charge for the
year
|
(233)
|
--
|
--
|
(233)
|
|
Closing net book amount at 31 December 2023
|
664
|
30,239
|
496
|
31,399
|
· Computer Software: Costs incurred in connection with
software.
· Exploration and Evaluation asset: Mainly represents the cost
for the TGAL 1 exploration well and E&E costs related to Buenos
Ayres block.
· Research and Development: In 2024, costs incurred in
connection with various renewable energy initiatives.
11 Trade and Other Receivables
|
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
Due within one year
|
$'000
|
$'000
|
$'000
|
|
Trade receivables
|
3,930
|
4,067
|
4,393
|
|
Less: provision for impairment of
trade receivables
|
(1)
|
(1)
|
(26)
|
|
Trade receivables: net
|
3,929
|
4,066
|
4,367
|
|
Prepayments
|
891
|
866
|
1,005
|
|
VAT recoverable
|
7,557
|
4,182
|
6,015
|
|
Other receivables
|
396
|
693
|
420
|
|
Less: Provision for Impairment of
other receivables
|
(71)
|
(34)
|
(98)
|
|
|
12,702
|
9,773
|
11,709
|
The fair value of trade and other
receivables approximate their carrying amounts.
The Group applies the IFRS 9
simplified model for measuring ECL which uses a lifetime expected
loss allowance and are measured on the days past due
criterion.
Trade receivables
- Heritage net sales receipts have been collected
on a timely basis. Since the Joint Interest Billing balances
are outstanding, an ECL was calculated at 30 June 2024 of USD 0.07
million (31 December 2023: USD 0.09 million) against Other
receivables.
VAT recoverable
- As at 30 June 2024 the VAT recoverable was USD
7.6 million. During the period, the Group generated refunds of USD
2.6 million and refunds received amounted to USD 1.1
million.
12 Share Capital
|
|
|
Number of
shares
|
Share
capital
$'000
|
Share
premium
$'000
|
Total
$'000
|
|
As at 1 January 2024 and 30 June
2024
|
|
39,899,813
|
399
|
--
|
399
|
The Company does not have a
limited amount of authorised share capital.
13 Treasury Shares
Treasury shares are shares in the
Company that are held by the Company. In September 2022 to June
2023, three share buyback programmes were executed.
|
|
|
Number of shares
repurchased
|
Cost
$'000
|
Total
$'000
|
|
As at 1 January 2024
|
|
1,171,687
|
1,553
|
1,553
|
|
Shares issued out of Treasury
|
|
(46,068)
|
(72)
|
(72)
|
|
As at 30 June 2024
|
|
1,125,619
|
1,481
|
1,481
|
14 Share Based Payment Reserve
The share-based payments reserve
is used to recognise:
- The grant date fair value of options issued to employees but
not exercised.
- The grant date fair value of share awards issued to
employees.
- The grant date fair value of deferred share awards granted to
employees but not yet vested; and
- The issue of shares held by the Employee Share Trust to
employees.
During 2024 the Group had in place
share-based payment arrangements for its employees and Executive
Directors, the LTIP. The Share Option Plan is fully vested and
expensed. The current year charge through share-based payments are
in relation to the LTIP arrangements shown below:
|
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
|
$'000
|
$'000
|
$'000
|
|
At 1 January
|
2,812
|
2,990
|
2,990
|
|
Share based payment
expense
|
208
|
254
|
520
|
|
Exercised/lapsed options released
to retained earnings
|
(555)
|
--
|
(698)
|
|
LTIPs exercised and released to
retained earnings
|
--
|
(20)
|
--
|
|
At 30 June/31 December
|
2,465
|
3,224
|
2,812
|
There were no issues of LTIPs in
H1 2024.
15 Deferred Income Taxation
The analysis of deferred income
taxes is as follows:
|
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
Deferred tax assets:
|
$'000
|
$'000
|
$'000
|
|
-Deferred tax assets to be
recovered in more than 12 months
|
(16,367)
|
(12,465)
|
(15,703)
|
|
Deferred tax liabilities:
|
|
|
|
|
-Deferred tax liabilities to be
settled in more than 12 months
|
2,525
|
1,898
|
1,862
|
The deferred tax balances are
analysed below:
|
|
1 January
|
|
30 June
|
|
31 Dec
|
|
30 June
|
|
|
2023
|
Movement
|
2023
|
Movement
|
2023
|
Movement
|
2024
|
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
|
Deferred tax assets - Tax losses
recognised
|
(12,465)
|
--
|
(12,465)
|
(3,238)
|
(15,703)
|
(664)
|
(16,367)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities
|
1,939
|
(43)
|
1,897
|
(36)
|
1,861
|
664
|
2,525
|
|
|
|
|
|
|
|
|
|
As at 30
June 2024, the DTA increased to USD 16.4 million. A further
assessment will be performed at year-end to determine any revision
of deferred tax assets.
Deferred income tax assets are
recognised for tax loss carry-forwards to the extent that the
realisation of the related tax benefit through future taxable
profits are probable. The Group recognises
deferred tax assets over a three-year outlook which is conservative
and consistent with prior periods. The
Group has unrecognised tax losses amounting to USD 191.0 million
with no expiry date (2023: USD 199.3 million).
Deferred tax assets and
liabilities are not shown offset in this condensed consolidated
statement of financial position. Deferred tax assets and
liabilities can only be offset if an entity has a legal right to
settle current tax amounts on a net basis and Deferred Tax amounts
are levied by the same tax authority (as per IAS 12).
16 Provisions and Other
Liabilities
|
Non-Current:
|
Decommissioning
cost
|
Closure of
pits
|
Total
|
|
|
$'000
|
$'000
|
$'000
|
|
6
months ended 30 June 2024
|
|
|
|
|
Opening amount as at 1 January
2024
|
44,433
|
643
|
45,076
|
|
Unwinding of discount
|
909
|
--
|
909
|
|
Revision to estimates
|
(3,505)
|
--
|
(3,505)
|
|
Translation differences
|
(5)
|
--
|
(5)
|
|
Closing balance as at 30 June 2024
|
41,832
|
643
|
42,475
|
|
|
|
|
|
|
6
months ended 30 June 2023
|
|
|
|
|
Opening amount as at 1 January
2023
|
51,857
|
603
|
52,460
|
|
Unwinding of discount
|
1,053
|
--
|
1,053
|
|
Revision to estimates
|
--
|
--
|
--
|
|
Translation differences
|
(45)
|
1
|
(44)
|
|
Closing balance as at 30 June 2023
|
52,865
|
604
|
53,469
|
|
|
|
|
|
|
Year ended 31 December 2023
|
|
|
|
|
Opening amount as at 1 January
2023
|
51,857
|
603
|
52,460
|
|
Unwinding of discount
|
2,077
|
--
|
2,077
|
|
Revision to estimates
|
(9,638)
|
--
|
(9,638)
|
|
Additions
|
--
|
40
|
40
|
|
Translation differences
|
137
|
--
|
137
|
|
Closing balance at 31 December 2023
|
44,433
|
643
|
45,076
|
|
Current:
|
Other
provisions
|
Litigation
claims
|
Total
|
|
|
$'000
|
$'000
|
$'000
|
|
6
months ended 30 June 2024
|
|
|
|
|
Opening amount as at 1 January
2024
|
500
|
122
|
622
|
|
Additions
|
100
|
--
|
100
|
|
Settlements
|
--
|
--
|
--
|
|
Closing balance as at 30 June 2024
|
600
|
122
|
722
|
|
|
|
|
|
|
6
months ended 30 June 2023
|
|
|
|
|
Opening amount as at 1 January
2023
|
112
|
136
|
248
|
|
Settlements
|
(103)
|
--
|
(103)
|
|
Closing balance as at 30 June 2023
|
9
|
136
|
145
|
|
|
|
|
|
|
Year ended 31 December 2023
|
|
|
|
|
Opening amount as at 1 January
2023
|
112
|
137
|
249
|
|
Payments
|
(112)
|
(15)
|
(127)
|
|
Additions
|
500
|
--
|
500
|
|
Closing balance at 31 December 2023
|
500
|
122
|
622
|
|
|
|
|
|
17 Trade and Other
Payables
|
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
|
$'000
|
$'000
|
$'000
|
|
|
|
|
|
|
Trade payables
|
3,473
|
3,688
|
3,154
|
|
Accruals
|
3,993
|
7,079
|
5,747
|
|
VAT payable
|
416
|
--
|
245
|
|
Other payables
|
862
|
580
|
2,560
|
|
SPT
|
--
|
1,486
|
1,388
|
|
|
8,744
|
12,833
|
13,094
|
18 Bank
Overdraft
|
|
30 June
2024
|
30 June
2023
|
31 December
2023
|
|
|
$'000
|
$'000
|
$'000
|
|
|
|
|
|
|
Bank Overdraft
|
3,000
|
2,000
|
4,000
|
|
|
3,000
|
2,000
|
4,000
|
An on-demand operating (overdraft)
line of USD 8.0 million exists with FirstCaribbean International
Bank (Trinidad & Tobago) Limited ("CIBC"). Details of the overdraft
facility:
Details of the overdraft
facility:
- Description: Demand revolving credit facility
- Interest Rate: United States Prime rate minus 6.50 % per
annum, effective rate 7.75%. Interest is payable
monthly.
- Repayment: Upon demand at CIBC's discretion
- Debenture: Floating charge debenture giving the lender a
first ranking floating charge over inventory and trade receivables
only
- Covenant: Current Ratio not less than 1.25:1
The credit limit on the facility
is $8.0 million of which $3.0 million was drawn as at 30 June
2024.
19 Adjusted
EBITDA
Adjusted EBITDA is a non-IFRS
measure, an alternative performance measure, used by the Group to
measure business performance. It is calculated as Operating Profit
before SPT for the period, adjusted for non-cash items being
DD&A, ILFA, SOE, Fair value gain/loss on Derivatives and
Foreign exchange (gain)/loss.
The Group presents Adjusted EBITDA
as it is used in assessing the Group's operating performance as
management believes it better illustrates the underlying
performance of the Group's
business by excluding non-cash items not
considered by management to reflect the underlying operations of
the Group.
Adjusted EBITDA is calculated as
follows:
|
|
6 months to 30 June
2024
|
6 months to 30 June
2023
|
Year ended December
2023
|
|
|
$'000
|
$'000
|
$'000
|
|
Operating Profit Before
SPT
|
6,062
|
5,828
|
9,593
|
|
Depreciation, depletion and
amortisation
|
2,984
|
4,472
|
8,935
|
|
Share option expense
|
222
|
254
|
528
|
|
Impairment/(reversal of
impairment) of financial assets
|
24
|
(25)
|
64
|
|
Foreign exchange
(gain)/loss
|
(35)
|
(142)
|
65
|
|
Loss on disposal
|
--
|
--
|
15
|
|
Adjusted EBITDA
|
9,257
|
10,387
|
19,200
|
|
|
|
|
|
|
|
|
|
|
|
|
$'000
|
$'000
|
$'000
|
|
Weighted average ordinary shares
outstanding - basic
|
38,664
|
38,336
|
38,867
|
|
Weighted average ordinary shares
outstanding - diluted
|
39,714
|
39,751
|
39,987
|
|
|
$
|
$
|
$
|
|
Adjusted EBITDA per share -
basic
|
0.24
|
0.27
|
0.50
|
|
Adjusted EBITDA per share - diluted
|
0.23
|
0.26
|
0.48
|
Adjusted EBITDA after the impact
of Current Taxes (SPT, PPT and UL) is calculated as
follows:
|
|
6 months to 30 June
2024
|
6 months to 30 June
2023
|
Year ended December
2023
|
|
|
$'000
|
$'000
|
$'000
|
|
Adjusted EBITDA
|
9,257
|
10,387
|
19,200
|
|
SPT
|
--
|
(3,247)
|
(5,697)
|
|
PPT/UL
|
(662)
|
(470)
|
(591)
|
|
Adjusted EBITDA after Current
Taxes
|
8,595
|
6,670
|
12,912
|
|
|
|
|
|
|
|
'000
|
'000
|
'000
|
|
Weighted average ordinary shares
outstanding - basic
|
38,664
|
38,336
|
38,687
|
|
Weighted average ordinary shares
outstanding - diluted
|
39,714
|
39,751
|
39,987
|
|
|
$
|
$
|
$
|
|
Adjusted EBITDA after Current
Taxes per share - basic
|
0.22
|
0.17
|
0.33
|
|
Adjusted EBITDA after Current Taxes per share -
diluted
|
0.22
|
0.17
|
0.32
|
20 Earnings per
Share
Basic earnings per share is
calculated by dividing the earnings attributable to ordinary
shareholders by the weighted average number of ordinary shares
outstanding during the period. Diluted earnings per share is
calculated using the weighted average number of ordinary shares
adjusted to assume the conversion of all dilutive potential
ordinary shares.
|
|
Profit/(Loss)
$'000
|
Weighted Average Number of
Shares
'000
|
Earnings Per Share
$
|
|
Period ended 30 June 2024
|
|
|
|
|
Basic
|
3,126
|
38,664
|
0.08
|
|
Diluted
|
3,126
|
39,714
|
0.08
|
|
Period ended 30 June 2023
|
|
|
|
|
Basic
|
683
|
38,336
|
0.02
|
|
Diluted
|
683
|
39,751
|
0.02
|
|
Year ended 31 December 2023
|
|
|
|
|
Basic
|
(6,804)
|
39,094
|
0.00
|
|
Diluted
|
(6,804)
|
40,524
|
0.00
|
Impact of dilutive ordinary
shares:
Diluted earnings per share is
calculated by adjusting the weighted average number of ordinary
shares outstanding to assume conversion of all dilutive potential
ordinary shares. The awards issued under the Company's LTIP
are considered potential ordinary shares.
The basic shares balance was
amended through the net effect of the issuance of new shares
(following exercise of Options) and the repurchase of shares
through the share buyback to 30 June 2024.
21 Commitments and Contingencies
a)
Commitments
There are commitments for
decommissioning costs of the wells and facilities under the Group's
agreements with Heritage, which have been provided for as described
in Note 16: Provisions and other liabilities.
b)
Contingent Liabilities
i)
Parent Company Guarantee:
a) PGB - A
Letter of Guarantee has been established in substance over the PGB
Block where a subsidiary of Trinity is obliged to carry out a
Minimum Work Programme to the value of USD 8.4 million. A
clause within the Letter of Guarantee implies that the Guarantor
may reduce the Guarantee Sum available for payment to the MEEI
under the Letter of Guarantee on an obligation-by-obligation basis
provided PGB delivers to the Guarantor a certificate duly issued
and signed by the MEEI.
b) Galeota - A
Letter of Guarantee has been established in substance over the
Galeota Block where a subsidiary of Trinity is obliged to carry out
a Minimum Work Programme to the value of USD 0.9 million. A
clause within the Letter of Guarantee implies that the Guarantor
may reduce the Guarantee Sum available for payment to the MEEI
under the Letter of Guarantee on an obligation-by-obligation basis
provided the subsidiary of Trinity delivers to the Guarantor a
certificate duly issued and signed by the Minister of the
MEEI. The Letter of Guarantee was effective from 14 July 2021
until the earlier of performance of Minimum Work Programme or the
Guarantor has paid the Guaranteed amount.
ii)
The Jacobin drilling disputed cost: There is a disputed drilling
cost of $2.4 million with a supplier in relation to the Jacobin
well, where Management has included a provision for $0.6 million
which it believes is appropriate based on external advice obtained.
$1.8 million is disclosed as a contingent liability.
iii)
The Group is party to various claims and actions. Management has
considered the matters and where appropriate has obtained external
legal advice. No material additional liabilities are expected to
arise in connection with these matters, other than those already
provided for in these condensed consolidated financial
statements.
22 Events after the Reporting
Period
i)
Subsequent to 30 June 2024, the Group received VAT refunds of $1.1
million.
ii)
On 13 June 2023, Trinity announced its successful
bid for the onshore Buenos Ayres block. On 1 July 2024, both the
Exploration and Production licence with the MEEI and a Joint
Operating Agreement with Heritage was finalised.
A Letter of Guarantee was also
established over the Buenos Ayres block on the 28 August 2024 where
a subsidiary of Trinity is obliged to carry out a Minimum Work
Programme to the value of $7.9 million. A clause within the
Letter of Guarantee implies that at the end of each twelve-month
period, the Guarantor may reduce the Guarantee Sum available for
payment to the MEEI under the Letter of Guarantee provided the
subsidiary of Trinity delivers to the Guarantor a certificate duly
issued and signed by the MEEI.
iii)
On 1 May 2024, Trinity and Touchstone Exploration Inc (TSX, LSE:
TXP) ("Touchstone") announced that they had reached agreement on
the terms of a recommended all share offer pursuant to which
Touchstone would acquire each Trinity share for 1.5 new Touchstone
Share, to be effected by means of a Court sanctioned scheme of
arrangement under Part 26 of the Companies Act 2006 ("scheme of
arrangement") (the "Touchstone Offer").
On 2 August 2024, Trinity and
Lease Operators Limited ("Lease Operators") announced that they had
reached agreement on the terms of a recommended all cash
acquisition, pursuant to which Lease Operators would acquire each
Trinity share for 68.05 pence in cash (the "Acquisition"), also to
be effected by means of a scheme of arrangement. At the same
time, the Trinity board of directors withdrew its recommendation of
the Touchstone Offer as it considered the Acquisition to be
superior and in the best interests of Trinity
Shareholders.
On 25 September 2024 the Court
granted permission to formally withdraw the scheme of arrangement
relating to the Touchstone Offer and, as a result, the Touchstone
Offer lapsed with immediate effect.
The Trinity Directors will now
seek the permission of the Court to convene the Court Meeting and
the General Meeting in connection with the Acquisition and to
proceed with the publication of the shareholder circular containing
full details of the Acquisition and the Scheme (the "Scheme
Document").
An expected timeline of principal
events leading up to the Scheme becoming Effective will be set out
in the Scheme Document when published.
The Acquisition remains subject to
certain other conditions, including the approval of Trinity
Shareholders at a Court Meeting and a General Meeting and the
Court's sanction of the Scheme at a Court Hearing.
A further update, including the
timetable for the Acquisition will be made in due
course.
Further information on the
transaction can be found on our website at https://trinityexploration.com/.