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D1 Oils Plc (NEOS)

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Wednesday 26 September, 2007

D1 Oils Plc

Interim Results

D1 Oils Plc
26 September 2007


Press release

26 September 2007

                                  D1 Oils plc

             Interim results for the six months ended 30 June 2007


D1 Oils plc, the UK-based global producer of biodiesel today announces its
Interim results for the six months ended 30 June 2007.


Highlights

o  Established global planting joint venture with BP to create a world-leading 
   business in jatropha

o  Plant science operations to develop high-yielding varieties of jatropha 
   progressing well

o  Significant increase in jatropha planting; D1 now has now planted or obtained 
   rights to offtake from a total of over 198,000 hectares of jatropha
   worldwide

o  Commercial planting of Elite seed will start ahead of schedule in 2007


Commenting on the results, Elliott Mannis, Chief Executive Officer, said:

'This very active and successful half year culminated in the announcement of our
joint venture with BP to create a world-leading business in the planting of
Jatropha curcas. This is a transforming event for the Company and validates our
strategy of focusing on sustainable, inedible oils as the future staple raw
materials for biodiesel. Although the biodiesel industry in Europe faces the
short-term challenges of higher feedstock prices and inconsistent subsidy
regimes, our strategy of focusing on sustainable, low-cost, long term supplies
of inedible feedstocks is on track and is the right way forward both for the
Company and for the industry.'


Lord Oxburgh of Liverpool, Non-Executive Chairman, added:

'There is a growing recognition that if biofuels are to make a significant
contribution to the world's need for transport fuels, this must not be at the
expense of the environment. Equally, biofuels must not adversely affect food
production or disadvantage vulnerable communities.  Non-food oils such as that
from Jatropha curcas offer a real alternative to the food oils from which
biodiesel is commonly produced today.  Jatropha does not need the same quality
of land as food crops and nor does it do well in the wetter areas that support
rain forest. Jatropha can make a vital contribution to the world's need for
sustainable biofuels.'


Contacts

D1 Oils:

Graham Prince, Head of Corporate Communications
Tel: +44 (0) 1642 755580
Mobile: +44 (0) 7973 323840


Brunswick Group:

Mark Antelme
Tel: +44 (0) 20 7404 5959


Notes to Editors

D1 Oils plc is a UK-based global producer of biodiesel. We are building a global
supply chain and network that is sustainable and delivers value from
'earth-to-engine'. Our operations cover agronomy, refining and trading. We are
pioneering the science, planting and production of inedible vegetable oils; we
design, build, own, operate and market biodiesel refineries; and we source,
transport and trade seeds and seedlings, seedcake, crude vegetable oils and
biodiesel.


Report of the Chairman and the Chief Executive Officer

We are pleased to announce our results for the six months ended 30 June 2007.
This has been an active first half of the year for the Company. We began the
year having successfully completed a placing in December 2006 raising £49.2m. At
the beginning of January 2007, we acquired our new refinery and distribution
site at Bromborough on Merseyside. In June, we announced our plans to establish
a global joint venture with BP to create a world-leading business in Jatropha
curcas. The creation of this new company, D1-BP Fuel Crops Limited, was ratified
by our shareholders at an Extraordinary General Meeting in July. These key steps
have been achieved while continuing the day-to-day work of building our
agronomy, refining and trading businesses.

The establishment of D1-BP Fuel Crops Limited is a transforming event for D1.
BP's decision to join us in this new venture is a significant endorsement of our
feedstock strategy. The joint venture will enable us to speed up the development
of jatropha for the production of sustainable biodiesel and to deliver
commercial volumes of jatropha oil at competitive prices, benefiting both the
economies of developing countries that will grow the crop and the rural
communities where planting will be based. D1-BP Fuel Crops will commence
operations on 1 October.

The new joint venture also represents a turning point for biodiesel globally.
Although biodiesel is a young industry, it has rapidly become not only an
established part of the global renewable energy landscape, but also a commercial
and strategic requirement in the global transport fuel market. BP's decision, as
a major global supplier of transport fuels, to focus on jatropha as the source
of sustainable biodiesel is a recognition of the pressing need to base more
biofuels on inedible crops that are not subject to the same demand pressures as
food oils and that are grown on marginal land.

The progress we have made in the first half of the year has been achieved
against the background of the challenges experienced by the biofuels sector as a
whole. The impact of the continuing increase in the prices of rapeseed, soya and
palm oils, the established biodiesel feedstocks, has been exacerbated by heavily
subsidised imports from the USA. Such issues are to be expected in a relatively
new and developing market. However, they demonstrate the strategic imperative
for the biodiesel industry to access low-cost, alternative and sustainable oils,
such as jatropha. The recent experience of the industry vindicates our core
strategies: to focus on non-food oils that will not impact food production, and
to develop a vertically integrated business that gives control not just of
refining capacity but most importantly of raw material inputs at competitive
prices.


Agronomy - plant science programme

We made solid progress in our plant science programme during the first half
year. We have continued to collect individual accessions of Jatropha curcas from
around the globe, and we began putting the most promising varieties from our
already significant collection through the first ever commercial breeding and
product placement trials. These trials will identify optimal adaptation to
different cultivation conditions. We continued the development of our breeding
programme to create the first cultivars for future selection of high-yielding
varieties. We also added two further Regional Development Centres (RDCs) in
Swaziland and Thailand respectively. Multiplication of our first generation,
selected seed material, referred to as 'E1', was begun in all three operating
regions. This seed material has been selected for higher yield and good
biodiesel profile.

During the period, we also introduced our Sustainable Oil Supply Programme
(SOSP), in co-operation with our joint venture partners and farmers. This
stewardship programme will record the performance of planting, enable the
development of accurate oil production forecasts and will also monitor the
implementation of policies for social, economic and environmental
sustainability.

As a result of the formation of our joint venture with BP, D1's plant science
programme has been established as a separate company, wholly owned by D1 Oils
plc. The activities of this new company will comprise research and development,
plant science, breeding, and production and multiplication of seed and
seedlings. It will act as the exclusive supplier to D1-BP Fuel Crops, the 
planting joint venture, on a cost-plus basis, of selected, high-yielding
jatropha seeds and seedlings. It will also provide technical agronomy support
and expertise to support and implement the SOSP programme. D1-BP Fuel Crops will
pay D1 an annual royalty fee for the high yield performance by the plants it
supplies.

Plant science operations to support the joint venture are well on track. We
anticipate that a proportion of the first of the selected E1 seedlings will be
available before the end of this year. We previously stated that it was our
intention to plant 50,000 hectares with E1 seedlings in 2008. We now expect to
plant out the first 5-10% of this total ahead of schedule in 2007.
We are also expanding our research and testing infrastructure in anticipation of
the growth in business from the joint venture. New Development Centres are being
established in Cape Verde (as a central facility), as well as Indonesia and
other countries where D1-BP Fuel Crops will operate, enabling D1 to support
fully the joint venture's planting activities.

A significant development is our recent signing of an exclusive worldwide
service agreement with Keygene NV of the Netherlands (www.keygene.com). Keygene
is one of the global leaders in the science of genetic fingerprinting, in
particular molecular markers and marker-assisted breeding approaches. The
agreement provides D1 with exclusive rights to contract research and molecular
services carried out by Keygene on jatropha. Keygene's genetic fingerprinting
technology enables the identification of different jatropha cultivars through
genetic markers similar to commercial bar codes. The technology has the
potential to increase significantly the effectiveness of D1's breeding programme
for jatropha.

In addition to focusing on jatropha, we are continuing to investigate other
inedible oil crops. Under the terms of our joint venture arrangements, D1-BP
Fuel Crops has a right of first refusal on any new crops and technologies that
D1 may develop.


Agronomy - planting programme

During the period we continued to develop our planting partnerships and expand
our planting footprint across all three operating regions. Our joint venture
relationship in North East India with Williamson Magor, one of India's leading
tea companies, has been particularly successful. Ongoing planting of jatropha is
now approaching 50,000 hectares. We see quality partners of this calibre as the
key to D1-BP Fuel Crops expanding commercial planting more rapidly.

We believe that the two Memoranda of Understanding (MOU) recently signed in
Indonesia have the potential to produce equally strong results for the future.
The first, with PT Astra Agro Lestari, part of the Jardine Matheson Group and
the largest publicly traded agribusiness in Indonesia, concerns the creation of
a 500 hectare Jatropha curcas pilot plantation, planting of which is planned to
start in Q4 2007. Once the pilot is successful, the relationship will then turn
to commercial planting. The second, a tripartite MOU between D1 Oils Asia
Pacific, PT Medco Energi International, a publicly listed integrated energy
company, and PT Mambruk Sarana Interbuana, a pioneer of solar energy in
Indonesia, is for a 500 hectare pilot plantation in West Java. Planting
operations here will commence in Q4 2007 with the intention to expand to 10,000
hectares.

In a key development for planting operations in South Africa, D1 is working
together with the South African Government to establish the first commercial
level jatropha pilot project in that country. The initial plantation size will
be 5,000 hectares of which 1,000 hectares is expected to be planted in the first
year. Planting will be carried out by D1 in co-operation with the Central Energy
Fund, the Department of Agriculture and a commercial farming concern made up of
both black and white farmers. The project is intended to determine economic
feasibility and will be used as a model for commercial jatropha planting in
South Africa.

In addition to continuing planting in Africa, India and South East Asia, D1-BP
Fuel Crops will expand planting to new, emerging markets, in particular South
America. To this end D1 has signed a strategic partnership agreement with a
Brazilian group, Curcas Diesel Brazil, to develop jatropha plantation projects
throughout that country. In the medium term, we also believe that Australia has
potential as a production location for jatropha and we are in active dialogue
with the relevant Federal and State authorities regarding permission to import
seeds and begin the first controlled trials for commercial planting of Jatropha
curcas.

Up to 15 September 2007, D1 has planted or obtained rights to offtake from a
total of 198,690 hectares of jatropha worldwide. This represents an increase of
over 53,000 hectares on the total of 145,625 at 16 March 2007, as announced in
our preliminary results on 28 March, and an increase of 23,609 hectares on the
total of 175,081 hectares at 30 June 2007, as announced in the quarterly update
on 27 July 2007.

The cumulative position at 15 September 2007 is summarised in the table below:

                               Managed    Contract   Seed purchase     Total
                           plantations     farming         and oil  hectares
                                                            supply  hectares
                                                        agreements
India          North East            -      49,200           2,000    51,200
                    South            -       8,264               -     8,264
                     Rest            -       4,905          17,123    22,028
                           -------------------------------------------------
                                     -      62,369          19,123    81,492
                           -------------------------------------------------
Africa             Zambia        2,411      20,760               -    23,171
                Swaziland        1,227           -           8,017     9,244
                     Rest            -           -           8,629     8,629
                           -------------------------------------------------
                                 3,638      20,760          16,646    41,044
                           -------------------------------------------------
South East      Indonesia            -      36,640           1,758    38,398
Asia                China            -           -          28,000    28,000
                     Rest            -       4,780           4,976     9,756
                           -------------------------------------------------
                                     -      41,420          34,734    76,154
                           -------------------------------------------------
Total                            3,638     124,549          70,503   198,690


The table above indicates the broad geographic locations and types of
arrangements associated with jatropha planting worldwide in which D1 has an
interest. The level of investment costs and security of future oil supply are
proportional to the degree of direct involvement by D1 and its joint venture
partners. Where trees are lost due to natural wastage or mortality, or where
planting has not taken, either replanting or new planting is undertaken in the
following planting season and only the net increase in planting is recorded.
Where replanting is not possible or inappropriate, a provision is made and the
planting is reported net.

Managed plantations are those farms where land and labour is controlled by D1,
either through its subsidiaries or joint venture partners. Under contract
farming, the farmer plants his own trees on his own land. D1 and its partners
assist with the provision of seedlings and the arrangement of bank finance for
planting, and offer a buyback of harvested grains with an offtake agreement,
subject to a floor price and the achievement of agreed quality standards. We
provide support and advice during cultivation, and monitor the condition of the
crops. Seed and oil supply agreements are arms-length supply contracts with
third parties whereby D1, either directly or through joint venture partners, has
offtake arrangements in place over future output from jatropha plantations which
the third party is developing. D1 has limited involvement in this planting and
relies on third parties to measure and manage the crop effectively.

The increase in planting in the period is accounted for predominantly by
planting in North East India with Williamson Magor. In Africa planting ceased
around the middle of the year as anticipated due to the onset of their winter
and will resume towards the end of the year.

From 1 October, all planting will be conducted under the management of D1-BP
Fuel Crops. Over the next four years, D1-BP Fuel Crops is targeting to plant an
additional one million hectares of jatropha. We are on track to deliver the
first quantities of jatropha oil during 2008.


Refining and Trading

Our activities in refining and trading have been impacted by the ongoing
challenges of high feedstock prices exacerbated by subsidised biodiesel imports
from the United States. Refining margins across the industry have come under
increasing pressure, and we announced in February 2007 our intention to run our
refineries below capacity and to manage stocks of vegetable oil previously
purchased at lower prices. There has been no improvement in the overall level of
feedstock prices (in fact they have continued to increase), and, having
processed existing stocks, we are no longer refining virgin oil. However, we are
taking advantage of the flexibility and precision of our modular D1 20 refinery
units to refine parcels of 'off-spec' material purchased from other suppliers.

During the period we increased the capacity of our Teesside site with the
addition of a fifth D1 20 refinery unit. This is the first of our upgraded D1 20
units and has an enhanced capacity of 10,000 tonnes per year. Final
commissioning is now underway, increasing the production capacity of our
Teesside site to 42,000 tonnes.

Having completed the acquisition of our Bromborough site, we began the
conversion of the existing facilities, which formerly produced fuel and
lubricant additives, to create 100,000 tonnes of initial biodiesel refining
capacity. Given market conditions, we have slowed the timetable for
commissioning the first 50,000 tonnes of this capacity, which will be completed
shortly. We also believe it is prudent to extend the timetable for the
completion of the remaining 50,000 tonnes of capacity from the end of 2007 to
the first half of 2008, bringing expected total UK capacity at that time
(including our Middlesbrough site) to 142,000 tonnes. Until we have more data to
fully assess the impact of the Renewable Transport Fuels Obligation (RTFO) on
the UK market after April 2008, we do not believe it is in our shareholders'
interests to increase our total UK refining capacity to the previously announced
target of 320,000 tonnes by the end of 2008. However, having completed the
necessary preparatory work for its installation, we are in a position to
complete this capacity rapidly should market conditions improve.

Although we expect the RTFO to have a positive impact on trading conditions for
UK biodiesel refining, we believe this benefit is likely to be counterbalanced
by both higher feedstock prices and the continuation of subsidised soya methyl
ester imports from the USA, which are entering the EU market in the form of a
99% soya biodiesel and 1% mineral diesel blend; so-called B99. US producers are
currently eligible for subsidies of US$1 for every gallon (approximately 11
pence per litre) of biodiesel blended with mineral diesel, which then receives
further subsidy in EU markets. As a result, this material is setting market
prices in the EU and refinery margins are substantially eroded. We are working
with industry groups to assist the UK and EU authorities in taking the necessary
measures to end the eligibility of US imports for double taxation relief. Unless
the B99 taxation 'double dip' issue is addressed, we believe it will be
difficult for the EU to develop a robust biodiesel refinery industry and for UK
refiners to supply motorists and road transport businesses under the RTFO.

Until commercial volumes of low-cost jatropha oil become available for UK
refining, we are purchasing and selling modest quantities of B99 to enable us to
meet our obligations to clients and to develop our supply chain. We will
continue to do so until the issue of asymmetric subsidies is resolved or
feedstock prices reduce.


Finance

Our continuing investment in the development of our agronomy, refining and
trading strategy is reflected in the financial results for the six months ended
30 June 2007.

This report is the first set of financial statements for the Group to be
prepared under International Financial Reporting Standards (IFRS). The new
accounting policies adopted, and the detail of the impact of moving to IFRS, are
set out in the group's IFRS transition report, available on the Group's website
at www.d1plc.com. The Group's net assets at the date of transition, 1 January
2007, were not materially affected; however, there were some minor
reclassifications. There was no impact on the Group's income statement.

Total Group turnover of £4.1m (2006: £33,000) reflects sales of 8,588 tonnes of
biodiesel generated from our D1 20 biodiesel refineries together with product
sold directly and not requiring transesterification.

An analysis of volumes of product refined and sold in the six months to 30 June
2007 is set out in the tables below:

Material refined                        Total
                                      (tonnes)
Virgin oil                              3,106
Third party off-spec                    2,467
---------------------------------------------
Total                                   5,573
---------------------------------------------

Material sold                           Total
                                      (tonnes)
Virgin oil/third party off-spec         5,871
B99                                     2,717
---------------------------------------------
Total                                   8,588
---------------------------------------------


The high cost of vegetable oils and the resulting decision to run our refineries
below capacity resulted in a gross loss of £0.4m (2006: £0.4m).

Operating costs were £10.0m (2006: £4.7m) of which storage and indirect refining
costs amounted to £1.7m (2006: £0.1m), IAS2 charges for share based payments to
£1.3m (2006: £0.5m) and overhead costs to £7.0m (2006: £4.1m).

The overhead costs of £7.0m (2006:£4.3m) reflect the investment made in our
regional teams in Africa and South East Asia and the development of our
secondary refinery site at Bromborough. We have also taken the decision to
accelerate the depreciation charge against our prototype refinery asset in the
period by £0.6m. Net interest received was £0.8m (2006: £0.3m).

The loss on ordinary activities before and after taxation was £10.3m (2006:
£4.8m) and the loss per ordinary share was 16.88p (2006: 15.34p). As the Group
has brought forward losses and losses were incurred in the period, no
corporation tax was payable.

Net cash (defined as gross cash less mortgage and cash collateral) on hand at 30
June 2007 was £27.8m (2006: £12.8m). Gross cash was £30.9m (2006: £13.7m), the
mortgage loan was £0.8m (2006:£0.8m) and cash held as collateral was £2.3m
(2006: £nil).

The net cash outflow in the period of £20.3m reflects the operating cash outflow
of £8.5m, the purchase for £2.9m of the Bromborough site and expenditure on the
development of biodiesel manufacturing facilities on that site of £3.5m. Further
investment of £2.7m was made both in infrastructure and the new Mark II D1 20
skid on Teesside. We have invested an additional £1.4m of working capital in
building stocks of refined oils and methyl esters to meet our growing sales
demands. Investments in planting projects were £1.3m.


Management

We are today announcing a number of changes to the Board with immediate effect.
Steve Douty steps down to join D1-BP Fuel Crops as Global Business Development
Director. Christopher Tawney, whose appointment as Group Finance Director we
announce today, joins the Board, replacing Richard Gudgeon, who steps down to
become Deputy Group Finance Director. Peter Davidson, a founder Director, also
leaves the Board. Moira Black joins the Board as a Non-Executive Director. We
would like to thank Steve, Richard and Peter for their substantial contributions
to the business. In particular, we acknowledge Steve's achievements in
developing D1's international business, Richard's work on the December 2006
fundraising and the joint venture with BP and Peter's contribution to the
development of our agronomy and refining programmes.


Outlook

The need to address the challenges of climate change and fuel security has
established biofuels as an increasingly important element in the global
transport fuels market. Biofuels, and in particular biodiesel, are now
recognised as a means to secure cost-effective supplies of sustainable transport
fuel, and both national and regional policy initiatives are making biofuels
blends a reality in key developed markets. We continue to believe that the
medium to long-term outlook for the industry is very promising. 
However, at present the sector remains immature and faces several short-term
challenges. High prices for edible vegetable oils mean that refining profitably
in Europe without significant subsidies will be difficult. Irregularities in
subsidy regimes that exacerbate this situation need to be addressed.

High vegetable oil prices demonstrate that the key to the future of the industry
is access to cost-effective, sustainable, inedible feedstocks. Furthermore,
there is growing awareness that unless produced sustainably, the spread of
biofuels has the potential to lead to greater environmental damage than it
prevents by replacing fossil fuels. The industry must ensure that new and
existing biofuels crops are produced in a manner that does not damage important
ecosystems or disadvantage vulnerable communities.

These issues validate our strategy to develop supplies of alternative,
sustainable inedible oils. Jatropha curcas offers a viable alternative to
food-grade vegetable oils because it is not subject to the demand pressures of
food use, does not thrive in the wetter conditions found in rainforest areas,
and does not require the same quality of land as staple food crops. We believe
that the commercial development of jatropha offers the best means currently
available to replace fossil-fuel diesel with sustainable biodiesel. The merits
of this strategy and our leadership in the commercial development of the crop
have been recognised by BP.

The Board is very pleased with the achievements of the business to date.
However, there remains much to be done and we are firmly committed to our
strategy to take the Company forward; to ensure a successful launch of the
planting joint venture with BP and to deliver jatropha oil in commercial
quantities into the market in 2008.



Lord Oxburgh of Liverpool        Elliott Mannis
Chairman                         Chief Executive Officer


25 September 2007



Consolidated income statement
Unaudited results for the six months ended 30 June 2007

                                                                    Restated     Restated
                                                      Six months  Six months         Year
                                                           ended       ended        ended
                                                         30 June     30 June  31 December
                                                            2007        2006         2006
                                                       Unaudited   Unaudited      Audited
                                                 Note       £000        £000         £000
------------------------------------------------------------------------------------------
Group revenue                                       2    4,130.8        32.6      1,560.3
Cost of sales                                           (4,570.2)     (389.8)    (2,366.7)
------------------------------------------------------------------------------------------
Gross loss                                                (439.4)     (357.2)      (806.4)
Operating costs                                         (9,986.2)   (4,727.7)   (12,212.9)
------------------------------------------------------------------------------------------
Gross trading loss                                     (10,425.6)   (5,084.9)   (13,019.3)
Fixed asset impairment                              6     (600.0)          -            -
Share of post tax losses of associates and                
joint ventures accounted for using the
equity method                                             (160.3)      (31.7)      (121.5)
Impairment of goodwill arising on                              
acquisition                                                    -           -         (6.3)
------------------------------------------------------------------------------------------
Group operating loss from continuing operations        (11,185.9)   (5,116.6)   (13,147.1)
Finance revenue                                            997.1       353.0        566.4
Finance costs                                             (159.7)      (26.8)       (46.9)
------------------------------------------------------------------------------------------
Loss for the period from continuing operations      2  (10,348.5)   (4,790.4)   (12,627.6)
------------------------------------------------------------------------------------------

Loss for the period attributable to:
Equity holders of the parent                           (10,348.5)   (4,790.4)   (12,627.6)
Minority interest                                              -           -            -
------------------------------------------------------------------------------------------
                                                       (10,348.5)   (4,790.4)   (12,627.6)
------------------------------------------------------------------------------------------

Loss per ordinary share
Basic and diluted loss per ordinary share (pence)  3       16.88       15.34        39.98
------------------------------------------------------------------------------------------


Consolidated statement of recognised income and expense
Unaudited results for the six months ended 30 June 2007
                                                                     Restated    Restated
                                                       Six months  Six months        Year
                                                            ended       ended       Ended
                                                          30 June     30 June 31 December
                                                             2007        2006        2006
                                                        Unaudited   Unaudited     Audited
                                                             £000        £000        £000
------------------------------------------------------------------------------------------
Income and expense recognised directly in
equity
Cash flow Hedges taken to equity                         (1,047.5)          -           -
Exchange difference on retranslation of                    
foreign operations                                           10.5        31.9      (591.6)
------------------------------------------------------------------------------------------
Net income recognised directly in equity                (1,037.0)        31.9      (591.6)
Loss for the period                                    (10,348.5)    (4,790.4)  (12,627.6)
------------------------------------------------------------------------------------------
Total recognised income and expense for the           
period                                                 (11,385.5)    (4,758.5)  (13,219.2)
------------------------------------------------------------------------------------------

Attributable to:
Equity holders of the parent                           (11,385.5)    (4,758.5)  (13,219.2)
------------------------------------------------------------------------------------------



Reconciliation of movement in equity shareholders' funds
Unaudited results for the six months ended 30 June 2007

                                                                      Restated   Restated
                                                        Six months  Six months       Year
                                                             ended       ended      Ended
                                                           30 June     30 June         31
                                                                                 December
                                                              2007        2006       2006
                                                         Unaudited   Unaudited    Audited
                                                              £000        £000       £000
------------------------------------------------------------------------------------------
Loss for the financial period                            (10,348.5)   (4,790.4) (12,627.6)
Issue of shares by the Company (net of expenses)             232.1       395.1   47,030.0
Share based payments                                       1,336.0       505.0    1,135.0
Cash flow Hedges taken to equity                          (1,047.5)          -          -
Currency translation difference                               10.5        31.9     (591.6)
------------------------------------------------------------------------------------------
Net (decrease)/increase in equity shareholders' funds     (9,817.4)   (3,858.4)  34,945.8
Opening equity shareholders' funds                        61,637.1    26,691.3   26,691.3
------------------------------------------------------------------------------------------
Closing equity shareholders' funds                        51,819.7    22,832.9   61,637.1
------------------------------------------------------------------------------------------


Consolidated balance sheet
Unaudited results as at 30 June 2007
                                                                      Restated   Restated
                                                              As at      As at      As at
                                                            30 June    30 June         31
                                                                                 December
                                                               2007       2006       2006
                                                          Unaudited  Unaudited    Audited
                                                  Note         £000       £000       £000
-----------------------------------------------------------------------------------------
Assets
Non-current assets
Property, plant and equipment                              24,199.7    9,953.8   14,486.3
Biological assets                                              75.0       27.0       74.5
Intangible assets                                             112.2       87.8      119.1
Trade and other receivables                                 1,215.4          -      948.9
Other investments                                              60.0       14.0       18.2
-----------------------------------------------------------------------------------------
                                                           25,662.3   10,082.6   15,647.0

Current assets
Inventories                                                 2,620.4    1,163.6    3,023.3
Trade and other receivables                                 3,759.2    1,204.6      898.3
Other financial assets                                     25,667.3          -    2,317.3
Cash and short-term deposits                                5,203.1   13,755.3   49,066.3
-----------------------------------------------------------------------------------------
                                                           37,250.0   16,123.5   55,305.2
Assets held for resale                                        100.0          -      100.0
-----------------------------------------------------------------------------------------
Total assets                                               63,012.3   26,206.1   71,052.2


Equity and liabilities
Current liabilities
Trade and other payables                                  (3,297.3)  (2,387.6)  (2,811.9)
Interest-bearing loans and borrowings                       (732.2)     (32.8)    (706.2)
Accruals and deferred income                              (2,420.5)     (59.8)  (2,208.9)
Financial liabilities                                     (1,047.5)         -          -
-----------------------------------------------------------------------------------------
                                                          (7,497.5)  (2,480.2)  (5,727.0)

Non-current liabilities
Interest-bearing loans and borrowings                     (3,626.9)    (840.0)  (3,533.5)
Investments accounted for using the equity method            (68.2)     (53.0)    (154.6)
-----------------------------------------------------------------------------------------
                                                          (3,695.1)    (893.0)  (3,688.1)
-----------------------------------------------------------------------------------------
Total liabilities                                        (11,192.6)  (3,373.2)  (9,415.1)
-----------------------------------------------------------------------------------------
Net assets                                                51,819.7   22,832.9   61,637.1
-----------------------------------------------------------------------------------------



                                                                      Restated   Restated
                                                              As at      As at   As at 31
                                                            30 June    30 June   December
                                                               2007       2006       2006
                                                          Unaudited  Unaudited    Audited
                                                  Note         £000       £000       £000
-----------------------------------------------------------------------------------------
Capital and reserves
Equity share capital                                 4        616.0      318.7      614.8
Share premium                                        4     84,063.1   37,493.8   83,832.2
Own shares held                                      4       (484.0)    (484.0)    (484.0)
Other reserves                                       4        437.7      437.7      437.7
Revenue reserves                                     4    (31,184.5) (14,964.8) (22,172.0)
Currency translation reserve                         4       (581.1)      31.5     (591.6)
Hedging reserve                                      4     (1,047.5)         -          -
-----------------------------------------------------------------------------------------
Equity shareholders' funds                                 51,819.7   22,832.9   61,637.1
-----------------------------------------------------------------------------------------



Consolidated cash flow statement
Unaudited results for the six months ended 30 June 2007

                                                                     Restated    Restated
                                                       Six months  Six months        Year
                                                            ended       ended       ended
                                                          30 June     30 June 31 December
                                                             2007        2006        2006
                                                        Unaudited   Unaudited     Audited
                                                             £000        £000        £000
-----------------------------------------------------------------------------------------
Operating activities
Loss for the period before tax                          (10,348.5)   (4,790.4)  (12,627.6)
Adjustments to reconcile profit for the 
period to net cash flow from operating
activities:
Depreciation of property, plant and equipment               462.9       107.5       367.6
Impairment of fixed assets                                  600.0           -           -
Impairment of goodwill on acquisition of                      
joint ventures                                                  -           -         6.3
Share based payments                                      1,336.0       505.0     1,135.0
Loss on disposal of fixed assets                                -           -        17.7
Share of post tax losses of joint ventures                 
accounted for using the equity method                       160.3        31.7       121.5
Finance income                                             (997.1)     (353.0)    (566.40)
Finance expense                                             159.7        26.8       46.90
Decrease/(increase) in inventories                          402.9    (1,037.3)   (2,897.1)
Increase in trade and other receivables                  (2,573.0)     (479.3)   (1,062.1)
Increase in trade and other payables                        687.5       650.5     3,210.8
------------------------------------------------------------------------------------------
Net cash flow from operating activities                 (10,109.3)   (5,338.5)  (12,247.4)
------------------------------------------------------------------------------------------
Investing activities
Interest received                                           442.7       353.0      566.40
Payments to acquire property, plant and equipment       (10,776.9)   (5,942.1)  (11,581.8)
Funds transferred to deposits                           (23,350.0)          -    (2,317.3)
Purchase of trade investments                              (280.5)          -        (4.2)
Sale of trade investments                                    18.2           -           -
------------------------------------------------------------------------------------------
Net cash flow from investing activities                 (33,946.5)   (5,589.1)  (13,336.9)
------------------------------------------------------------------------------------------
Financing activities
Interest paid                                              (159.7)      (26.8)      (46.9)
Proceeds from share issue                                   232.1       395.5    47,030.0
New borrowings                                               91.9           -     3,400.0
Repayment of capital element of finance leases             (203.6)          -       (55.0)
------------------------------------------------------------------------------------------
Net cash flow from financing activities                    (39.3)       368.7    50,328.1
------------------------------------------------------------------------------------------
Net (decrease)/increase in cash and cash             
equivalents                                            (44,095.1)  (10,558.9)    24,743.8
Cash and cash equivalents at the start of the            
period                                                   49,025.2    24,281.4    24,281.4
------------------------------------------------------------------------------------------
Cash and cash equivalents at the end of the period        4,930.1    13,722.5    49,025.2
------------------------------------------------------------------------------------------



Notes to the consolidated cash flow statement
Unaudited results for the six months ended 30 June 2007

                                                                     Restated    Restated
                                                      Six months   Six months        Year
                                                           ended        ended       ended
                                                         30 June      30 June 31 December
                                                            2007         2006        2006
                                                       Unaudited    Unaudited     Audited
                                                            £000         £000        £000
------------------------------------------------------------------------------------------
Cash and cash equivalents is comprised as follows:
Cash at bank and in hand                                 5,203.1     13,755.3    49,066.3
Short-term borrowings and overdrafts                      (273.0)       (32.8)      (41.1)
------------------------------------------------------------------------------------------
                                                         4,930.1     13,722.5    49,025.2
------------------------------------------------------------------------------------------



Notes

Unaudited results for the six months ended 30 June 2007


1. Summary of significant accounting policies.

The Group is required to adopt International Financial Reporting Standards
(IFRS) with effect from 1 January 2007. The results for the six months to 30
June 2007 represent the Group's first interim financial statements prepared in
accordance with IFRS. The Group's first IFRS Annual Report and Financial
Statements will be for the year ending 31 December 2007.

Previously, the Group reported under UK GAAP. The accounting policies used in
this statement are consistent with those to be used in the December 2007 annual
report. Detailed reconciliations, showing the impact of transition to IFRS, are
reported in a separate document, which is available on our website www.d1plc.com

This interim report has been prepared using those standards that the Group
expects to be endorsed and applicable when the IFRS financial statements are
prepared for the year ending 31 December 2007. These standards are subject to
ongoing review and endorsement by the European Union or possible amendment by
interpretive guidance from the International Accounting Standards Board and the
International Financial Reporting Interpretations Committee and are, therefore,
still subject to change.


2. Segmental information

The Group operates in a number of different business sectors. An analysis of the
revenue and profit before tax for each sector for the financial period is set
out below.
                                                              Restated      Restated
                                              Six months    Six months          Year
                                                   ended         ended         ended
                                                 30 June       30 June   31 December
                                                    2007          2006          2006
                                               Unaudited     Unaudited       Audited
                                                    £000          £000          £000
-------------------------------------------------------------------------------------
Revenue
Agronomy                                             0.8             -             -
Refining                                            25.9             -             -
Trading                                          4,104.1          32.6       1,560.3
Other                                                  -             -             -
-------------------------------------------------------------------------------------
Group total                                      4,130.8          32.6       1,560.3
-------------------------------------------------------------------------------------
Loss before tax
Agronomy                                        (3,349.1)     (1,641.1)     (4,676.9)
Refining                                        (3,271.8)       (993.6)     (2,189.6)
Trading                                         (1,198.5)       (144.0)       (634.8)
Other                                           (2,529.1)     (2,011.7)     (5,126.3)
-------------------------------------------------------------------------------------
Group total                                    (10,348.5)     (4,790.4)    (12,627.6)
-------------------------------------------------------------------------------------


3. Loss per ordinary share
                                                              Restated      Restated
                                              Six months    Six months          Year
                                                   ended         ended         ended
                                                 30 June       30 June   31 December
                                                    2007          2006          2006
                                               Unaudited     Unaudited       Audited
                                                  Number        Number        Number
------------------------------------------------------------------------------------
Weighted average number of                    
shares in issue                               61,312,287    31,231,472    31,584,579
------------------------------------------------------------------------------------
                                                   Pence         Pence         Pence
Loss per ordinary share - basic                    
and diluted                                        16.88         15.34         39.98
------------------------------------------------------------------------------------


The number of shares in issue at 31 December 2006 was 61,480,578. The total
number of shares in issue at 30 June 2007 was 61,597,764. For the purposes of
calculating the loss per ordinary share the weighted average number of shares
excludes 193,645 shares held by the D1 Oils plc Employee Benefit Trust. No
diluted loss per share has been disclosed as the share options are
anti-dilutive.


4. Movement on reserves
                                                                    Own       Profit     Currency
                                   Share      Share    Merger    shares     and loss  translation    Hedging
                                 capital    premium   reserve      held      reserve     reserve     reserve      Total
                                    £000       £000      £000      £000         £000        £000        £000       £000
------------------------------------------------------------------------------------------------------------------------
At 1 January 2007 (restated)       614.8   83,832.2     437.7    (484.0)   (22,172.0)     (591.6)          -   61,637.1
Retained loss for the period           -          -         -         -    (10,348.5)          -           -  (10,348.5)
Issue of shares by the Company       1.2      230.9         -         -            -           -           -      232.1
Share based payments                   -          -         -         -      1,336.0           -           -    1,336.0
Hedging reserve                        -          -         -         -            -           -    (1,047.5)  (1,047.5)
Exchange movements                     -          -         -         -            -        10.5           -       10.5
------------------------------------------------------------------------------------------------------------------------
At 30 June 2007                    616.0   84,063.1     437.7    (484.0)   (31,184.5)     (581.1)   (1,047.5)  51,819.7
------------------------------------------------------------------------------------------------------------------------

The hedging reserve reflects the movement in fair value of the Group's cash flow
hedges in respect of the selling price of Biodiesel, which has been stated in
accordance with IAS 39.


5. Post balance sheet event

On 29 June 2007, the Company announced its intentions to establish a global
joint venture with BP International Limited to plant jatropha curcas and to
grant options to BP International Limited to acquire 11,725,467 new ordinary
shares in the Company. The proposal was approved by the shareholders of the
Company in Extraordinary General Meeting on 27 July 2007.


6. Prototype refinery

During the period the Directors reviewed the operational requirement for the
original prototype D1 20 refinery. With the completion of the new Mark II D1 20
refinery the Directors consider that the original prototype refinery now has
limited commercial value. Accordingly a provision for accelerated depreciation
has been recorded such that the net book value of this asset is now nil.


7. Publication of non-statutory financial statements

The financial information contained in the interim statements does not
constitute statutory accounts as defined in section 240 of the Companies Act
1985. The results are unaudited but have been reviewed by the auditors. The
financial information for the year to 31 December 2006 and the six months ended
30 June 2006 has been extracted from the group's IFRS transitional document,
which were based on the group's 2006 Annual review and the 2006 interim report.
The 2006 Annual Review has been filed with the Registrar of Companies. The audit
report on the Annual Report 2006 was unqualified and did not contain a statement
under Section 237 (2) or (3), of the Companies Act 1985.


8. Approval by the Board of Directors

The Interim Report was approved by the Board of Directors on the 25 September
2007.


Independent review report to D1 Oils plc

Introduction

We have been instructed by the company to review the financial information for
the six months ended 30 June 2007 which comprises the Consolidated Income
Statement, Consolidated Statement of recognised income and expense,
Reconciliation of movement in equity shareholders funds, Consolidated Balance
Sheet, Consolidated Cash Flow Statement and the related notes 1 to 8. 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.

This report is made solely to the company in accordance with guidance contained
in Bulletin 1999/4 'Review of interim financial information' issued by the
Auditing Practices Board. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the company, for our work,
for this report, or for the conclusions we have formed.


Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report as required by the AIM rules
issued by the London Stock Exchange.

As disclosed in note 1, the next annual financial statements of the group will
be prepared in accordance with those IFRSs adopted for use by the European
Union.

The accounting policies are consistent with those that the directors intend to
use in the next financial statements. There is, however, a possibility that the
directors may determine that some changes to these policies are necessary when
preparing the full annual financial statements for the first time in accordance
with those IFRSs adopted for use by the European Union.


Review 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
for use in the United Kingdom. A review consists principally of making enquiries
of group management and applying analytical procedures to the financial
information and underlying financial data, and based thereon, assessing whether
the accounting policies have been applied. A review excludes audit procedures
such as tests of controls and verification of assets, liabilities and
transactions. It is substantially less in scope than an audit performed in
accordance with International Standards on Auditing (UK and Ireland) 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 2007.


Ernst & Young LLP
Newcastle upon Tyne
25 September 2007


Notes:

1. The maintenance and integrity of the D1 Oils plc website is the
   responsibility of the Directors; the work carried out by Ernst & Young LLP 
   does not involve consideration of these matters and, accordingly, Ernst & 
   Young LLP accept no responsibility for any changes that may have occurred to 
   the financial statements since they were initially presented on the website.

2. Legislation in the United Kingdom governing the preparation and dissemination
   of financial statements may differ from legislation in other jurisdictions.



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