Interim Results PART 2

Enterprise Oil PLC 5 September 2000 PART 2 Consolidated Profit and Loss Account Six months ended Six months ended Year ended 30 June 2000 30 June 1999 31 December (Unaudited) (Unaudited) 1999 £m £m £m ------------------------------------------------------------------------------ Turnover (note 2) 835.1 293.4 850.0 Cost of sales (note 3) (318.6) (181.5) (427.5) ------------------------------------------------------------------------------ Gross profit 516.5 111.9 422.5 Exploration costs (20.7) (27.0) (64.0) Administrative and selling expenses (18.4) (15.1) (35.9) ------------------------------------------------------------------------------ Operating profit 477.4 69.8 322.6 Income from fixed asset investments 0.5 0.7 0.7 Gain on sales of oil and gas assets 1.0 0.7 1.5 Interest receivable and similar income (note 4) 19.3 8.4 18.3 Interest payable and similar charges (note 4) (41.7) (21.4) (53.9) ------------------------------------------------------------------------------ Profit on ordinary activities before taxation 456.5 58.2 289.2 Tax on profit on ordinary activities (note 5) (260.5) (22.6) (112.0) ------------------------------------------------------------------------------ Profit on ordinary activities after taxation 196.0 35.6 177.2 Dividends - preference shares (non-equity) (4.0) (3.7) (6.9) Dividends - ordinary shares (14.5) (13.7) (35.8) ------------------------------------------------------------------------------ Retained profit for the period 177.5 18.2 134.5 ------------------------------------------------------------------------------ Basic earnings per ordinary share (note 6) 39.3p 6.5p 34.8p Diluted earnings per ordinary share 39.0p 6.5p 34.6p Dividends per ordinary share 3.0p 2.8p 7.3p In the result for the six months ended 30 June 2000 cost of sales includes an exceptional charge relating to a ceiling test write-down of £42.9 million (note 3 (i)). Group Balance Sheet 30 June 2000 31 December (Unaudited) 1999 £m £m ------------------------------------------------------------------------------ Fixed assets Intangible assets (note 7) 232.6 209.8 Tangible assets (note 7) 2,178.1 2,106.8 Investments 72.6 52.6 ------------------------------------------------------------------------------ 2,483.3 2,369.2 ------------------------------------------------------------------------------ Current assets Stocks 14.8 15.1 Debtors 276.9 208.2 Investments (liquid resources) 632.4 307.7 Cash at bank and in hand 102.1 68.5 ------------------------------------------------------------------------------ 1,026.2 599.5 Creditors: amounts falling due within one year (683.8) (437.2) ------------------------------------------------------------------------------ Net current assets 342.4 162.3 ------------------------------------------------------------------------------ Total assets less current liabilities 2,825.7 2,531.5 Creditors: amounts falling due after more than one year (1,180.0) (1,104.7) Provisions for liabilities and charges (370.2) (349.0) ------------------------------------------------------------------------------ Net assets 1,275.5 1,077.8 ------------------------------------------------------------------------------ Capital and reserves Called up share capital 198.9 198.9 Reserves 1,076.6 878.9 ------------------------------------------------------------------------------ 1,275.5 1,077.8 ------------------------------------------------------------------------------ Analysis of shareholders' funds Equity 1,201.2 1,003.5 Non-equity 74.3 74.3 ------------------------------------------------------------------------------ 1,275.5 1,077.8 Consolidated Cash Flow Statement Six months ended Six months ended Year ended 30 June 2000 30 June 1999 31 December (Unaudited) (Unaudited) 1999 £m £m £m ------------------------------------------------------------------------------ Cash flow from operating activities (note 8 (i)) 601.0 156.3 514.4 Returns on investments and servicing of finance (note 8 (iii)) (39.8) (41.7) (84.0) Taxation (note 8 (iv)) (57.8) (20.3) (38.1) ------------------------------------------------------------------------------ Operating cash flow after tax and finance costs 503.4 94.3 392.3 Capital expenditure and financial investment: - capital expenditure (note 8 (v)) (137.2) (228.2) (437.5) - financial investment (19.3) (0.9) (14.0) Equity dividends paid (22.0) - (13.7) ------------------------------------------------------------------------------ Cash flow before management of liquid resources and financing 324.9 (134.8) (72.9) Management of liquid resources (324.6) 192.4 51.1 Financing - issue of shares 1.0 0.2 2.0 - increase (decrease) in debt 30.5 (29.9) 63.4 ------------------------------------------------------------------------------ Increase in cash in the period 31.8 27.9 43.6 Reconciliation of net cash flow to movement in net debt ------------------------------------------------------------------------------ Increase in cash in the year 31.8 27.9 43.6 Cash (inflow) outflow from increase (decrease) in debt and lease financing (30.5) 29.9 (63.4) Cash outflow (inflow) from movement in liquid resources 324.6 (192.4) (51.1) ------------------------------------------------------------------------------ Change in net debt resulting from cash flows 325.9 (134.6) (70.9) Translation differences (44.0) (29.9) (19.2) Other differences (0.6) (0.4) (0.4) ------------------------------------------------------------------------------ Movement in net debt in the period 281.3 (164.9) (90.5) Net debt brought forward (860.7) (770.2) (770.2) ------------------------------------------------------------------------------ Net debt at end of period (note 8 (ii)) (579.4) (935.1) (860.7) Consolidated Statement of Total Recognised Gains and Losses Six months ended Six months ended Year ended 30 June 2000 30 June 1999 31 December (Unaudited) (Unaudited) 1999 £m £m £m ------------------------------------------------------------------------------ Profit on ordinary activities after taxation 196.0 35.6 177.2 Unrealised currency translation differences 19.2 10.7 1.5 ------------------------------------------------------------------------------ Total recognised gains and losses relating to the period 215.2 46.3 178.7 ------------------------------------------------------------------------------ Prior year adjustment - 58.8 58.8 ------------------------------------------------------------------------------ Total recognised gains and losses since the last financial statements 215.2 105.1 237.5 In 1999 a prior year adjustment arose from the implementation of FRS12 'Provisions, Contingent Liabilities and Contingent Assets'. The unrealised currency translation differences shown above are the net result of retranslating to sterling, in accordance with our accounting policy, of significant overseas investments and certain foreign currency borrowings which provide a partial hedge against the impact of currency movements on those investments. Notes 1. Accounting policies --------------------------------------------------------------------------- The interim accounts have been prepared using the same policies as those adopted in the accounts for the financial year ended 31 December 1999 and are unaudited. The financial information for the year ended 31 December 1999 is an abridged version of the accounts for that year which were delivered to the Registrar of Companies. The accounts contained an unqualified auditor's report and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. During the period, the group adopted FRS 15 'Tangible Fixed Assets' and FRS 16 'Current Tax'. There was no effect on the group's net assets and results for the period arising from the adoption of either of these financial reporting standards. 2. Turnover - by location of production (unaudited six months to 30 June 2000) Norway and Gulf of UK Denmark Italy Mexico Total £m £m £m £m £m ------------------------------------------------------------------------------ Oil 435.5 300.2 11.0 12.5 759.2 Gas 41.9 6.8 1.0 2.8 52.5 Natural gas liquids 17.3 1.7 - - 19.0 ------------------------------------------------------------------------------ 494.7 308.7 12.0 15.3 830.7 Other, including tariff income 3.2 0.6 - 0.6 4.4 ------------------------------------------------------------------------------ 497.9 309.3 12.0 15.9 835.1 (unaudited six months to 30 June 1999) Norway and Gulf of UK Denmark Italy Mexico Total £m £m £m £m £m ------------------------------------------------------------------------------ Oil 167.2 65.0 4.3 - 236.5 Gas 36.7 6.7 0.7 - 44.1 Natural gas liquids 6.7 1.0 - - 7.7 ------------------------------------------------------------------------------ 210.6 72.7 5.0 - 288.3 Other, including tariff income 3.4 0.7 1.0 - 5.1 ------------------------------------------------------------------------------ 214.0 73.4 6.0 - 293.4 (year ended 31 December 1999) Norway and Gulf of UK Denmark Italy Mexico Total £m £m £m £m £m ------------------------------------------------------------------------------ Oil 489.9 222.3 9.0 6.0 727.2 Gas 69.1 12.9 1.2 0.8 84.0 Natural gas liquids 19.6 2.6 - - 22.2 ------------------------------------------------------------------------------ 578.6 237.8 10.2 6.8 833.4 Other, including tariff income 13.2 1.5 0.1 1.8 16.6 ------------------------------------------------------------------------------ 591.8 239.3 10.3 8.6 850.0 3. Cost of Sales Six months ended Six months ended Year ended 30 June 2000 30 June 1999 31 December (Unaudited) (Unaudited) 1999 £m £m £m ------------------------------------------------------------------------------ Depreciation of development costs (i), (ii) 191.4 90.7 203.8 Operating costs 115.9 81.8 199.5 Research and development 0.4 0.8 1.8 Royalties 10.9 8.2 22.4 ------------------------------------------------------------------------------ 318.6 181.5 427.5 (i) The exceptional charge of £42.9 million arose from a reduction in the estimated reserves of the Garden Banks 161 field in the US Gulf of Mexico. There was no related taxation. (ii) The depreciation charge for the six months ended 30 June 1999 included a credit of £7.1 million arising from the application of ceiling tests to the Garden Banks 161 field in the US Gulf of Mexico and the Siri field in Denmark. There was no related taxation. 4. Net interest and similar items (payable) receivable Six months ended Six months ended Year ended 30 June 2000 30 June 1999 31 December (Unaudited) (Unaudited) 1999 £m £m £m ------------------------------------------------------------------------------ Interest receivable and similar income 19.3 8.4 18.3 ------------------------------------------------------------------------------ Interest payable and similar charges (53.1) (48.6) (97.8) Amount capitalised 14.4 30.0 49.5 Unwinding of discount on long term provisions (3.0) (2.8) (5.6) ------------------------------------------------------------------------------ Net interest payable and similar Charges (41.7) (21.4) (53.9) ------------------------------------------------------------------------------ Net interest and similar items payable (22.4) (13.0) (35.6) 5. Taxation charge Six months ended Six months ended Year ended 30 June 2000 30 June 1999 31 December (Unaudited) (Unaudited) 1999 £m £m £m ------------------------------------------------------------------------------ UK petroleum revenue tax - current 55.1 16.5 57.1 - deferred (3.3) (4.2) (5.7) UK corporation tax - current 76.2 0.5 42.8 - deferred (2.3) 1.8 17.9 Overseas tax principally Norwegian taxes - current 123.0 - 0.1 - deferred 11.8 8.0 (0.2) ------------------------------------------------------------------------------ 260.5 22.6 112.0 6. Earnings per share ------------------------------------------------------------------------------ The calculation of basic earnings per share is based upon the profit attributable to ordinary shareholders for the six months ended 30 June 2000 of £192.0 million (six months ended 30 June 1999: £31.9 million and year ended 31 December 1999: £170.3 million) and the adjusted weighted average number of ordinary shares outstanding during the period of 488.5 million ordinary shares (six months ended 30 June 1999: 489.7 million and year ended 31 December 1999: 489.8 million). Profit attributable to ordinary shareholders is arrived at by deducting preference share dividends from profit on ordinary activities after taxation. The weighted average number of ordinary shares outstanding excludes 9.8 million shares (six months ended 30 June 1999 and year ended 31 December 1998: 8.1 million) held by employee share scheme trusts on which no dividend is payable. Diluted earnings per share differs from basic earnings per share in that the weighted average number of ordinary shares includes potential shares, being any financial instrument or right that may entitle its holder to ordinary shares, such as share options. The weighted number of ordinary shares used to calculate diluted earnings per share is 492.2 million for the six months ended 30 June 2000 (six months ended 30 June 1999: 491.5 million and year ended 31 December 1999: 491.9 million). 7. Capital expenditure Six months ended Six months ended Year ended 30 June 2000 30 June 1999 31 December (Unaudited) (Unaudited) 1999 Capital expenditure comprises: £m £m £m ------------------------------------------------------------------------------ Exploration and appraisal expenditure: Exploration and appraisal 32.5 52.7 99.9 Acquisitions 0.4 - 0.1 ------------------------------------------------------------------------------ 32.9 52.7 100.0 Development expenditure: Development 118.4 172.6 320.0 Capitalised interest 14.4 30.0 49.5 Decommissioning 4.6 8.5 13.1 Acquisitions 88.6 - 7.0 ------------------------------------------------------------------------------ 226.0 211.1 389.6 Other fixed assets 1.8 1.3 2.1 ------------------------------------------------------------------------------ Total capital expenditure 260.7 265.1 491.7 Notes: (i) In June 2000 the group agreed to acquire all of R&B Falcon Corp's exploration and production assets in the US Gulf of Mexico. The consideration for this deal of approximately £84.1 million resulted in additions to development assets of £88.6 million and an increase in decommissioning provisions of £4.5 million. (ii) As at 30 June 2000 interest capitalised as part of tangible fixed assets was £228.5 million (31 December 1999 £238.6 million and 30 June 1999 £220.8 million). 8. Cash Flow Statement (i) Reconciliation of operating profit (loss) to operating cash flow Six months ended Six months ended Year ended 30 June 2000 30 June 1999 31 December (Unaudited) (Unaudited) 1999 £m £m £m ------------------------------------------------------------------------------ Operating profit 477.4 69.8 322.6 Depreciation charges 193.7 93.7 211.4 Exploration costs 20.7 27.0 64.0 Movements in stocks 0.4 2.3 4.3 Movements in operating debtors (70.7) (26.0) (84.0) Movements in operating current liabilities (20.5) (10.6) (8.8) Other deferrals and accruals of operating cash flows - 0.1 4.9 ------------------------------------------------------------------------------ Net cash from operations 601.0 156.3 514.4 (ii) Analysis of net debt At At At 30 June 2000 30 June 1999 31 December (Unaudited) (Unaudited) 1999 £m £m £m ----------------------------------------------------------------------------- Cash at bank and in hand 102.1 54.5 68.5 Overdrafts (1.5) (1.6) (1.7) ------------------------------------------------------------------------------ 100.6 52.9 66.8 Current asset investments (liquid resources) 632.4 166.4 307.7 Debt due within one year (133.3) (202.9) (132.7) Debt due after more than one year (1,174.2) (931.4) (1,097.6) Finance leases (4.9) (20.1) (4.9) ------------------------------------------------------------------------------ (579.4) (935.1) (860.7) (iii) Returns on investments and servicing of finance Six months ended Six months ended Year ended 30 June 2000 30 June 1999 31 December (Unaudited) (Unaudited) 1999 £m £m £m ------------------------------------------------------------------------------ Interest received 14.7 10.1 17.5 Interest paid (50.5) (48.0) (94.5) Interest element of finance lease rentals paid - (0.1) (0.1) Preference dividends paid (4.0) (3.7) (6.9) ------------------------------------------------------------------------------ Net cash outflow for returns on investments and servicing of finance (39.8) (41.7) (84.0) (iv) Taxation Six months ended Six months ended Year ended 30 June 2000 30 June 1999 31 December (Unaudited) (Unaudited) 1999 £m £m £m ------------------------------------------------------------------------------ UK petroleum revenue tax (55.7) (11.6) (31.6) UK corporate taxes (1.8) (8.7) (6.5) Overseas tax (0.3) - - ------------------------------------------------------------------------------ Net cash outflow for tax paid (57.8) (20.3) (38.1) (v) Capital expenditure Six months ended Six months ended Year ended 30 June 2000 30 June 1999 31 December (Unaudited) (Unaudited) 1999 £m £m £m ------------------------------------------------------------------------------ Capital expenditure: - Development (118.0) (163.8) (310.1) - Exploration and appraisal (28.2) (58.4) (113.3) - Sale of licence interests 13.1 1.9 2.9 - Purchase of licence interests (2.3) (6.6) (14.9) - Purchase of other fixed assets (1.8) (1.3) (2.1) ------------------------------------------------------------------------------ Net cash outflow for capital expenditure (137.2) (228.2) (437.5) Independent Review Report By KPMG Audit Plc to Enterprise Oil plc We have been instructed by the company to review the interim financial information set out on pages 12 to 19 and we have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information. Directors' responsibilities The interim report, including the financial information contained therein, is the responsibility of, and has been approved by, the directors. The Listing Rules of the Financial Services Authority require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where they are to be changed in the next annual accounts in which case any changes, and the reason for them, are to be disclosed. Review of work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4: Review of Interim Financial Information issued by the Auditing Practices Board. A review consists principally of making enquiries of management and applying analytical procedures to the financial information and underlying financial data and, based thereon, assessing whether accounting policies and presentation have been consistently applied, unless otherwise disclosed. A review is substantially less in scope than an audit performed in accordance with Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly we do not express an audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 30 June 2000. KPMG Audit Plc Chartered Accountants London 5 September 2000 Additional Information Under US Accounting Principles The information regarding production and financial results reported in this statement is prepared in accordance with the group's established reporting and accounting policies which comply with UK accounting principles. The following supplementary information is prepared under US accounting principles: Six months ended Six months ended 30 June 2000 30 June 1999 ------------------------------------------------------------------------------ Production (mboe per day) 272.9 190.8 Approximate profit after tax (net income) (£m) 131.8 14.6 Approximate earnings per share (pence) 26.2 2.2 Approximate shareholders' equity (£m) as at 30 June 909.6 774.8 Except for the historical information contained herein, this Interim Statement includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks, and other risk factors detailed form time to time in the company's publicly available Securities and Exchange Commission reports, which could cause actual results to be materially different. Shareholder Information Financial Calendar Interim dividend payment qualifying date 22 September 2000 Interim dividend payment date 1 November 2000 Full year results 8 March 2001 Annual General Meeting, Glaziers Hall, London 17 May 2001 Final ordinary dividend payment date 1 June 2001 Half year results 6 September 2001 Stock Exchange Listings The ordinary shares of the company of 25p each are listed on the London Stock Exchange. Ordinary shares and cumulative dollar preference shares of the company are also traded on the New York Stock Exchange in the form of American Depositary Shares and held in the form of American Depositary Receipts (ADRs). ADR holders receive the annual and interim reports issued to shareholders as well as a supplement to the annual report providing certain accounting information prepared under US accounting principles. The company has filed a Form 20-F for the year ended 31 December 1999 with the United States Securities and Exchange Commission. Published Information Further copies of the interim report as well as copies of the annual report, the Form 20-F, the US accounting supplement to the annual report, environmental review and the company's 2000 Key Facts may be obtained from the Corporate Communications Department, Enterprise Oil plc, Grand Buildings, Trafalgar Square, London WC2N 5EJ. Company information may also be viewed on the website: www.entoil.com Shareholder Services The company's brokers, Cazenove & Co, regulated by The Securities and Futures Authority and a member of the London Stock Exchange, provide a simple low-cost postal share dealing facility in Enterprise Oil plc ordinary shares. Commission rates are 1 per cent up to £5,000 of the value of the shares bought or sold, 0.5 per cent on the next £145,500 and 0.3 per cent for amounts thereafter, subject to a £10 minimum charge. Further details can be obtained from Enterprise Oil Share Dealing Service, Cazenove & Co, 12 Tokenhouse Yard, London EC2R 7AN (Tel: 020 7606 1768). Registrar - UK Shareholders Lloyds TSB Registrars Scotland 117 Dundas Street Edinburgh EH3 5ED Telephone: 0870 601 5366 Broker Helpline: 0870 600 0158 Holders of American Depositary Receipts Citibank N.A. 111 Wall Street New York NY 10005 USA Telephone: 00 1 800 422 2066

Companies

Eneraqua Technologies (ETP)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today