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Amedeo Resources PLC (AMED)

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Tuesday 25 September, 2018

Amedeo Resources PLC

Half-year Report

RNS Number : 8541B
Amedeo Resources PLC
25 September 2018
 

25 September 2018

 

Amedeo Resources PLC

("Amedeo" or the "Company")

 

Interim Results for the six months ended 30 June 2018

 

Investments

 

During the period under review, Jiangsu Yangzijiang Offshore Engineering Co. Ltd ("YZJ Offshore") continued to market its first completed rig, a Le Tourneau Super 116E Class design self-elevating mobile offshore jack up drilling rig and continued to seek new orders. The market, however, remained soft and the rig was not sold, nor were new orders obtained.

YZJ Offshore, however, continues to execute work related to hatches for LNG tankers. It has reduced its workforce to keep down costs. For the period under review, Amedeo's share of YZJ Offshore's losses was US$134,000.

MGR Resources Pte ("MGR") increased its activities iron ore market and these resulted in Amedeo's share of the profit amounting to US$55,000.

Amedeo continues to hold its 2.5% stake in Ganjine Kani Company. In light of the current political situation, the investment is under review.

Financial Review

 

Revenue is comprised of various business services, invoiced in GBP, which Amedeo provides to MGR. During the six months, revenue was US$55,000 (2017: US$54,000), with the variance being entirely due to currency fluctuations. Administrative costs decreased by 12% to US$277,000 (2017: US$315,000).

 

During the six months, share-based payments expenses were US$nil as all share warrants had vested in full during the year ended 31 December 2017 (2017: US$63,000).

 

Amedeo's share of losses in associates was US$79,000 (2017: loss of US$502,000). This was made up of a loss of US$134,000 (2017: loss of US$410,000) due to YZK Offshore and a profit of US$55,000 (2017: loss of US$92,000) due to MGR.

 

Foreign exchange gain amounts to US$nil (2017: US$22,000). This is a non-cash item.

 

Finance income decreased to US$63,000 (2017: US$87,000) due to a reduction of the interest charged, as loans were repaid to Amedeo from MGR.

 

Overall loss on ordinary activities before taxation significantly decreased to US$238,000 (2017: loss of US$717,000). Basic and fully diluted loss per share for the period was US$0.73c (2017: US$2.20).  

 

Foreign exchange translation differences due to Amedeo's indirect investment in YZJ Offshore were a gain of US$26,000 (2017: loss of US$14,000). Overall total comprehensive loss for the period was US$212,000 (2017: loss of US$731,000).

 

At the period end, the carrying value on the balance sheet of investments in associates increased to US$15,215,000 (2017: US$13,869,000), with the increase being due to the share of profit of associates in the second half of last year.

Current assets fell to US$3,299,000 (2017: US$3,495,000). Cash at 30 June 2018 was US$2,817,000 (2017: US$1,033,000), due to the net repayment of loans from MGR: during the period, MGR repaid a loan of US$2,200,000 to Amedeo and then, during the period, borrowed US$250,000.

Trade and other payables increased to US$202,000 (2017: US$117,000) mainly due to accrued expenses not settled before this period end.

Overall, at the period end, net and total assets were US$18,812,000 (2017: US$17,747,000) and US$19,014,000 (2017: US$17,864,000), respectively.

Outlook

 

Despite the current difficulties in both the marine vessels market and the and commodity markets, Amedeo is well resourced and remains focused on long term strategy of building a vertically integrated business in the resource and energy and related infrastructure sectors.

 

**ENDS**

Enquiries:

Glen Lau
Chief Executive Officer
Amedeo Resources PLC
Tel office: +44 20 7583 8304   

Steve Douglas / Ciaran Walsh / Ruari McGirr
Nominated Adviser & Broker
Arden Partner plc
Tel office: +44 20 7614 5900

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

Notes

Amedeo Resources PLC is an investment company whose policy is to invest principally, but not exclusively, in the resources and resources infrastructure and asset sectors. Amedeo has a deep and broad global network and wide contact base in these sectors, including in East and South East Asia and the Middle East which it leverages to source and make investments. These sectors are strategically important. Amedeo is a proactive investor which assists its investee companies to grow by providing investment, expertise and contacts.
 

AMEDEO RESOURCES PLC

 

Consolidated unaudited statement of comprehensive income

for the six months ended 30 June 2018

 

 

 

Unaudited

 

Unaudited

 

Audited

 

 

Note

6 months ended 30.6.18 US$'000

6 months ended 30.6.17 US$'000

12 months ended 31.12.17 US$'000

Revenue

 

55

54

110

Cost of sales

 

-

-

-

 

 

______

______

______

Gross profit

 

55

54

110

 

 

 

 

 

Administrative expenses

 

(277)

(315)

(625)

Share based payments

 

-

(63)

(1)

Share of (loss)/ profits of associates

2

(79)

(502)

41

Foreign exchange gain

 

-

22

54

 

 

____

____

____

Loss from operations

 

(301)

(804)

(421)

 

 

 

 

 

Finance income

 

63

87

188

 

 

 

 

______

______

______

Loss on ordinary activities before taxation

3

(238)

(717)

(233)

 

 

 

 

 

Taxation

 

-

-

-

 

 

______

______

______

Loss for the period

 

(238)

(717)

(233)

Other comprehensive income

 

 

 

 

Foreign exchange gain/(loss) translation difference

 

26

(14)

841

 

 

______

______

______

Total comprehensive (loss)/profit for the period

 

(212)

(731)

608

 

 

______

______

______

Basic and fully diluted loss per share (US$ cents)

3

(0.73c)

(2.20c)

(0.71c)

 

 

 

 

AMEDEO RESOURCES PLC

 

Consolidated unaudited statement of financial position

As at 30 June 2018

 

 

 

Unaudited

 

Unaudited

 

Audited

 

 

 

As at 30.6.18 US$'000

As at 30.6.17 US$'000

As at 31.12.17 US$'000

Assets:

 

 

 

 

Non-current assets

 

 

 

 

Investment in associates

 

15,215

13,869

15,268

Financial asset

 

500

500

500

 

 

_____

_____

_____

 

 

15,715

14,369

15,768

Current assets

 

 

 

 

Loans receivable

 

250

2,200

2,200

Other receivables

 

232

262

296

Cash and cash equivalents

 

2,817

1,033

915

 

 

_____

_____

_____

 

 

3,299

3,495

3,411

 

 

 

 

 

 

 

_____

_____

_____

Total assets

 

19,014

17,864

19,179

 

 

 

 

 

Liabilities:

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

 

(202)

(117)

(155)

 

 

 

 

 

_____

_____

_____

Total liabilities

 

(202)

(117)

(155)

 

 

 

 

 

 

 

_____

_____

_____

Net assets

 

18,812

17,747

19,024

 

 

 

 

 

 

Capital and reserves

 

 

 

 

Called up equity share capital

 

5,804

5,804

5,804

Share premium account

 

 

29,103

29,103

29,103

Share-based payment reserve

 

704

766

704

Foreign exchange reserve

 

402

(479)

376

Accumulated losses

 

(17,201)

(17,447)

(16,963)

 

 

_____

_____

_____

Total equity

 

 

18,812

17,747

19,024

 

 

 

AMEDEO RESOURCES PLC

 

Consolidated unaudited cash flow statement

for the six months ended 30 June 2018

 

 

 

Unaudited

 

Unaudited

 

Audited

 

 

 

6 months ended 30.6.18

US$'000

6 months ended 30.6.17 US$'000

12 months ended

31.12.17

US$'000

Reconciliation of operating profit to net cash flow from operating activities

 

 

 

 

Loss for the period before tax

 

(238)

(717)

(233)

Adjustments for:

 

 

 

 

Share based payments

 

-

63

1

Share of loss of associates

 

79

502

(41)

Finance income

 

(63)

(87)

(188)

 

 

____

____

____

 

 

(222)

(239)

(461)

Changes in working capital:

 

 

 

 

Decrease/(increase) in receivables

 

64

(38)

(74)

Increase in payables

 

47

13

52

 

 

____

____

____

Net cash flows used from operating activities

 

(111)

(264)

(483)

 

 

 

 

 

Investing activities

 

 

 

 

Investment in financial asset

 

-

(500)

(500)

Loans made to associate

 

(250)

(1,800)

(800)

Loans repaid by associate

 

2,200

1,000

-

 

 

_____

_____

_____

Net cash from/(used in) investing activities

 

1,950

(1,300)

(1,300)

 

 

 

 

 

Financing activities

 

 

 

 

Finance income

 

63

87

188

 

Net cash from financing activities

 

_____

63

_____

87

______

188

 

 

 

 

 

Net increase/(decrease) in cash and equivalents

 

1,902

(1,477)

(1,595)

Cash and equivalents at beginning of period

 

915

2,510

2,510

Cash and equivalents at end of period

 

2,817

1,033

915

 

 

 

 

 

NOTES TO THE INTERIM ACCOUNTS
 

1. Basis of preparation
 

The accounting policies adopted are consistent with those of the previous financial year ended 31 December 2017.

This interim consolidated financial information for the six months ended 30 June 2018 has been prepared in accordance with AIM rule 18, 'Half yearly reports and accounts'. This interim consolidated financial information is not the group's statutory financial statements within the meaning of section 434 of the Companies Act 2006 (and information as required by section 435 of the Companies Act 2006) and should be read in conjunction with the annual financial statements for the year ended 31 December 2017, which have been prepared in accordance with International Financial Reporting Standards (IFRS) and have been delivered to the Registrar of Companies. The auditors have reported on those accounts; their report was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis of matter without qualifying their report and did not contain statements under section 498(2) or (3) of the Companies Act 2006.

The interim consolidated financial information for the six months ended 30 June 2018 is unaudited. In the opinion of the Directors, the interim consolidated financial information presents fairly the financial position, and results from operations and cash flows for the period. Comparative numbers for the six months ended 30 June 2017 are also unaudited.

This interim consolidated financial information is presented in US Dollars ($), rounded to the nearest US$'000 dollar.

2. Share of loss of associates

 

 

6 months ended 30.6.18

6 months ended 30.6.17

12 months ended 31.12.17

 

US$'000

US$'000

US$'000

 

 

 

 

Share of (loss)/profit of YZJ JV

(134)

(410)

131

Share of profit/(loss) of MGR

55

(92)

(90)

 

____

____

____

 

(79)

(502)

41

 

The Company holds a 47.5% stake in YZJ JV and a 49.0% stake in MGR. YZJ JV reported an unaudited loss for the 6 months to 30 June 2018 of US$283,000 (2017: loss of US$864,000) and US$134,000 (2017: loss of US$410,000) represents Amedeo's share of YZJ Offshore's loss.

 

MGR reported a profit of US$113,000 for the period to 30 June 2018 (2017: loss of US$187,000), of which US$55,000 (2017: loss of US$92,000) represents Amedeo's share of MGR's profit.

  

 

3. Loss per share

 

The basic and diluted loss per share for the period ended 30 June 2018 was 0.73c (2017: 2.20c). The calculation of loss per share is based on the loss of US$238,000 for the period ended 30 June 2018 (2017: loss of US$717,000) and the weighted average number of shares in issue during the period for calculating the basic loss per share of 32,653,843 shares (2017: 32,653,843).

 

4. Preparation of interim report

 

This report was approved by the Directors on 25 September 2018.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
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