TIDMENOG
RNS Number : 9331Z
Energean PLC
18 May 2023
ENERGEAN ISRAEL LIMITED
UNAUDITED INTERIM CONDENCED CONSOLIDATED FINANCIAL
STATEMENTS
31 MARCH 2023
ENERGEAN ISRAEL LIMITED
UNAUDITED INTERIM CONDENCED CONSOLIDATED FINANCIAL
STATEMENTS
AS OF 31 MARCH 2023
INDEX
Page
-----
Interim Condensed Consolidated Statement of Comprehensive
Income 3
Interim Condensed Consolidated Statement of Financial
Position 4
Interim Condensed Consolidated Statement of Changes
in Equity 5
Interim Condensed Consolidated Statement of Cash
Flows 6
Notes to the Interim Condensed Consolidated Financial
Statements 7-20
- - - - - - - - - - - - - - - - - - - -
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
THREE MONTHSED 31 MARCH 2023
31 March (Unaudited)
2023 2022
Notes $'000 $'000
------------------------------------- ------ --------- -------
Revenue 3 158,853 -
Cost of sales 4 (83,905) -
------------------------------------- ------ --------- -------
Gross profit 74,948 -
Administrative expenses 4 (3,922) (2,205)
Exploration and evaluation expenses 4 (50) -
Other expenses 4 - (824)
Other income 4 - 53
------------------------------------- ------ --------- -------
Operating profit (loss) 70,976 (2,976)
Financial income 5 1,526 3,338
Financial expenses 5 (32,487) (3,078)
Foreign exchange loss, net 5 (257) (68)
------------------------------------- ------ --------- -------
Profit (loss) for the period before
tax 39,758 (2,784)
Taxation income (expense) 6 (9,482) 1,260
------------------------------------- ------ --------- -------
Net profit (loss) for the period 30,276 (1,524)
The accompanying notes are an integral part of the interim
condensed consolidated financial statements.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION
AS OF 31 MARCH 2023
31 March
20 23 31 December
(Unaudited) 2022
Notes $'000 $'000
---------------------------------- ------ ------------- ------------
ASSETS:
NON-CURRENT ASSETS:
Property, plant and equipment 7 2,818,159 2,926,313
Intangible assets 8 152,558 143,554
Other accounts receivable 10 5,614 108
Deferred tax asset 9 13,547 22,886
-------------------------------------- ------ ------------- ------------
2,989,878 3,092,861
------------------------------------- ------ ------------- ------------
CURRENT ASSETS:
Trade and other receivables 10 141,123 82,611
Inventory 11 8,142 8,313
Restricted cash 8,462 71,778
Cash and cash equivalents 32,081 24,825
-------------------------------------- ------ ------------- ------------
189,808 187,527
------------------------------------- ------ ------------- ------------
TOTAL ASSETS 3,179,686 3,280,388
-------------------------------------- ------ ------------- ------------
EQUITY AND LIABILITIES:
EQUITY:
Share capital 1,708 1,708
Share premium 212,539 212,539
Retained losses (40,252) (70,528)
-------------------------------------- ------ ------------- ------------
TOTAL EQUITY 173,995 143,719
-------------------------------------- ------ ------------- ------------
NON-CURRENT LIABILITIES:
Senior secured notes 12 1,851,797 2,471,030
Decommissioning provisions 86,182 84,299
Trade and other payables 13 200,461 210,241
-------------------------------------- ------ ------------- ------------
2,138,440 2,765,570
------------------------------------- ------ ------------- ------------
CURRENT LIABILITIES:
Senior secured notes 12 621,382 -
Trade and other payables 13 245,869 371,099
-------------------------------------- ------ ------------- ------------
867,251 371,099
------------------------------------- ------ ------------- ------------
TOTAL LIABILITIES 3,005,691 3,136,669
-------------------------------------- ------ ------------- ------------
TOTAL EQUITY AND LIABILITIES 3,179,686 3,280,388
-------------------------------------- ------ ------------- ------------
18 May 2023
----------- ---------------- ---------------
Panagiotis Benos Matthaios Rigas
Director Director
The accompanying notes are an integral part of the interim
condensed consolidated financial statements.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN
EQUITY
THREE MONTHSED 31 MARCH 2023
Share Share Accumulated Total
capital Premium losses equity
$'000 $'000 $'000 $'000
------------------------- -------- -------- ----------- -------
Balance as of 1 January
2023 1,708 212,539 (70,528) 143,719
Profit for the period - - 30,276 30,276
-------------------------- -------- -------- ----------- -------
Balance as of 31 March
2023 1,708 212,539 (40,252) 173,995
========================== ======== ======== =========== =======
Balance as of 1 January
2022 1,708 572,539 (35,946) 538,301
-------------------------- -------- -------- ----------- -------
Loss for the period - - (1,524) (1,524)
-------------------------- -------- -------- ----------- -------
Balance as of 31 March
2022 1,708 572,539 (37,470) 536,777
========================== ======== ======== =========== =======
The accompanying notes are an integral part of the interim
condensed consolidated financial statements.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS PERIODED 31 MARCH 2023
31 March (Unaudited)
Notes 2023 2022
$'000 $'000
-------------------------------------------- ------ ---------- ----------
Operating activities
Profit (Loss) for the period before
tax 39,758 (2,784)
Adjustments to reconcile loss before
taxation to net cash provided by operating
activities:
Depreciation, depletion and amortisation 4 30,871 38
Loss from disposal on property, plant
and equipment 4 - 824
Amortisation of payment made in advance
to customers 3 4,928 -
Other expenses 4 - 5
Other income - (53)
Finance Income 5 (1,526) (3,338)
Finance expenses 5 32,487 3,078
Net foreign exchange loss 5 257 68
------------------------------------------------ ------ ---------- ----------
Cash flow from operations before working
capital 106,775 (2,162)
------------------------------------------------ ------ ---------- ----------
Increase in trade and other receivables (18,315) (2)
Decrease in inventories 172 -
Increase in trade and other payables 314 800
------------------------------------------------ ------ ---------- ----------
Cash from operations 88,946 (1,364)
------------------------------------------------ ------ ---------- ----------
Income taxes paid (368) (330)
------------------------------------------------ ------ ---------- ----------
Net cash inflows from (used in) operating
activities 88,578 (1,694)
------------------------------------------------ ------ ---------- ----------
Investing activities
Payment for exploration and evaluation,
and other intangible assets 8(B) (25,318) (2,231)
Payment for purchase of property, plant
and equipment 7(C) (55,752) (44,002)
Movement in restricted cash, net 63,316 64,112
Interest received 1,509 692
------------------------------------------------ ------ ---------- ----------
Net cash inflows from (used in) investing
activities (16,245) 18,571
------------------------------------------------ ------ ---------- ----------
Financing activities
Senior secured notes - interest paid 12 (64,453) (64,453)
Other finance cost paid (44) (384)
Transaction cost in relation to Senior (229)
Secured Notes -
Repayment of obligations under leases 13 (250) (248)
------------------------------------------------ ------ ---------- ----------
Net cash used in financing activities (64,976) (65,085)
------------------------------------------------ ------ ---------- ----------
Net increase (decrease) in cash and
cash equivalents 7,357 (48,208)
------------------------------------------------ ------ ---------- ----------
Cash and cash equivalents at beginning
of period 24,825 349,827
Effect of exchange differences on cash
and cash equivalents (101) (45)
------------------------------------------------ ------ ---------- ----------
Cash and cash equivalents at end of
period 32,081 301,574
------------------------------------------------ ------ ---------- ----------
The accompanying notes are an integral part of the interim
condensed consolidated financial statements.
NOTE 1: - GENERAL
a. Energean Israel Limited (the "Company") was incorporated in
Cyprus on 22 July 2014 as a private company with limited liability
under the Companies Law, Cap. 113. Its registered office is at
Lefkonos 22, 1(st) Floor, Strovolos, 2064 Nicosia, Cyprus.
b. The Company and its subsidiaries (the "Group") has been
established with the objective of exploration, production and
commercialisation of natural gas and crude oil. The Group's main
activities are performed in Israel by its Israeli Branch.
c. As of 31 March 2023, the Company had investments in the following subsidiaries:
Name of subsidiary Country of incorporation Principal Shareholding Shareholding
/ registered office activities
At 31 March At 31 December
2022
2023 (%)
(%)
--------------------- --------------------------- -------------------- -------------- -----------------
121, Menachem
Begin St.
Azrieli Sarona
Energean Israel Tower, POB 24, Gas transportation
Transmission Tel Aviv 67012039 license
LTD Israel holder 100 100
121, Menachem
Begin St.
Azrieli Sarona
Tower, POB 24,
Energean Israel Tel Aviv 67012039 Financing
Finance LTD Israel activities 100 100
d. The Group's core assets as of 31 March 2023 are comprised of:
Country Asset Working interest Field phase
-------- ------------------------ ----------------- ------------
Israel Karish 100% Production
Israel Tanin 100% Development
Israel Blocks 12, 21, 23, 31 100% Exploration
NOTE 2: - Accounting policies and basis of preparation
These unaudited interim condensed consolidated financial
statements for the three months ended 31 March 2023, have been
prepared in accordance with the International Financial Reporting
Standards ("IFRS") as adopted by the European Union (EU). The
unaudited interim condensed consolidated financial statements do
not include all the information and disclosures that are required
for the annual financial statements and must be read in conjunction
with the Group's annual consolidated financial statements for the
year ended 31 December 2022.
These unaudited interim financial statements have been prepared
on a going concern basis.
NOTE 3: - Revenues
31 March (Unaudited)
2023 2022
$'000 $'000
------------------------------------------- --- -------- --------
Revenue from gas sales (1) 113,090 -
Revenue from Hydrocarbon liquids sales
(3) 50,691 -
Compensation to customers (2) (4,928) -
------------------------------------------- --- -------- --------
Total revenue 158,853 -
(1) Sales gas for three months ended 31 March 2023 totaled
approximately 0.72 bcm (the Company started production on 26
October 2022).
(2) During 2021 and in accordance with the GSPAs signed with a
group of gas buyers, the Company paid compensation to these
counterparties following delays to the supply of gas from the
Karish project. The compensation is accounted for as variable
consideration under IFRS 15 Revenue Recognition, as a deduction
from revenue once production commences and gas is delivered to the
gas buyers.
(3) Sales Hydrocarbon liquids for three months ended 31 March
2023 totaled approximately 0.714mmbbl (the Company did not sell
Hydrocarbon liquids during 2022).
NOTE 4: - Operating profit (loss) before taxation
31 March (Unaudited)
2023 2022
$'000 $'000
---------------------------------------------- --- ---------- ----------
(a) Cost of sales
Staff costs 1,885 -
Energy cost 1,288 -
Royalty payable 29,474 -
Depreciation and amortisation (Note 7) 30,279 -
Other operating costs 20,110 -
Stock movement (Note 11) 869 -
--------------------------------------------------- ---------- ---------------
Total cost of sales 83,905 -
(b) General & administration expenses
Staff costs 960 397
Share-based payment charge 99 31
Depreciation and amortisation (Note 7,
8) 592 38
Auditor fees 48 80
Other general & administration expenses 2,223 1,659
--------------------------------------------------- ---------- ---------------
Total administrative expenses 3,922 2,205
(c) Exploration and evaluation expenses
Other exploration and evaluation expenses 50 -
--------------------------------------------------- ---------- ---------------
Total exploration and evaluation expenses 50 -
(d) Other expenses
Loss from disposal of property, plant and
equipment - 824
--------------------------------------------------- ---------- ---------------
Total other expenses - 824
(e) Other income
Other income - 53
--------------------------------------------------- ---------- ---------------
Total other income - 53
NOTE 5: - Net finance income/(expenses)
31 March (Unaudited)
2023 2022
$'000 $'000
-------------------------------------------------------- --- ---------- --------
Interest on senior secured notes (1) 34,375 34,323
Interest expense on long terms payables (3) 612 2,064
Less amounts included in the cost of qualifying
assets (2) (3,568) (33,744)
------------------------------------------------------------- ---------- --------
31,419 2,643
Finance and arrangement fees 145 1,459
Other finance costs and bank charges 107 264
Unwinding of discount on provision for decommissioning 861 171
Unwinding of discount on right of use asset
(1) 15 83
Less amounts included in the cost of qualifying
assets (2) (60) (1,542)
------------------------------------------------------------- ---------- --------
1,068 435
------------------------------------------------------------ ---------- --------
Total finance costs 32,487 3,078
------------------------------------------------------------- ---------- --------
Interest income from time deposits 654 557
Change of discount estimate on payables (3) 872 -
Interest income from loans to related parties - 2,781
------------------------------------------------------------- ---------- --------
Total finance income 1 ,526 3,338
Net foreign exchange losses (257) (68)
------------------------------------------------------------- ---------- --------
Net finance income/(expense) (31,218) 192
------------------------------------------------------------- ---------- --------
(1) See also Note 12.
(2) See also Note 7(A).
(3) See also Note 13.
NOTE 6: - Taxation
1. Taxation charge:
31 March (Unaudited)
2023 2022
$'000 $'000
----------------------- --- -------------------- --------
Tax - current year (143) (67)
Deferred tax (9,339) 1,327
---------------------------- -------------------- --------
Total taxation income
(expense) (9,482) 1,260
---------------------------- -------------------- --------
NOTE 7: - Property, Plant and Equipment
a. Composition:
Furniture,
Oil and Leased fixtures
gas Assets assets and equipment Total
$'000 $'000 $'000 $'000
----------------------------- ----------- ------- -------------- ---------
Cost:
At 1 January 2022 2,241,783 4,009 829 2,246,621
Additions (1) 514,373 731 1,165 516,269
Disposals (900) - - (900)
Capitalised borrowing cost
(2) 129,357 - - 129,357
Capitalised depreciation 632 - - 632
Change in decommissioning
provision 47,544 - - 47,544
------------------------------ ----------- ------- -------------- ---------
Total cost at 31 December
2022 2,932,789 4,740 1,994 2,939,523
Additions (1) 29,048 - 41 29,089
Handover to INGL(4) (111,105) - - (111,105)
Capitalised borrowing cost
(2) 3,628 - - 3,628
Change in decommissioning
provision 1,020 - - 1,020
------------------------------ ----------- ------- -------------- ---------
Total cost at 31 March 2023 2,855,380 4,740 2,035 2,862,155
Depreciation:
At 1 January 2022 433 693 228 1,354
Charge for the year (3) 10,976 134 297 11,407
Capitalised to oil and gas
assets - 632 - 632
Disposals (433) - - (433)
Write down of the assets 250 - - 250
------------------------------ ----------- ------- -------------- ---------
Total Depreciation at 31
December 2022 11,226 1,459 525 13,210
Charge for the year 30,279 412 95 30,786
Total Depreciation at 31
March 2023 41,505 1,871 620 43,996
At 31 December 2022 2,921,563 3,281 1,469 2,926,313
------------------------------ ----------- ------- -------------- ---------
At 31 31 March 2023 2,813,875 2,869 1,415 2,818,159
------------------------------ ----------- ------- -------------- ---------
(1) The additions to oil & gas assets in 2023 are primarily
due to development costs for the FPSO, Karish North and 2(nd) Oil
Train. The additions in 2022 are primarily due to development costs
for the Karish field, incurred under the EPCIC contract, FPSO,
subsea and onshore construction.
(2) Capitalised borrowing costs relate primarily to the secured
senior notes.
(3) First production from the Karish project was achieved on 26
October 2022.
(4) Handover to INGL took place on 22 March 2023.
NOTE 7: - Property, Plant and Equipment (Cont.)
b. Depreciation expense for the year has been recognised as follows:
31 March (Unaudited)
2023 2022
$'000 $'000
-------------------------------------- ---------- ---------
Cost of sales 30,279 -
Administration expenses 507 38
Capitalised depreciation in oil & gas
assets - 177
-------------------------------------- ---------- ---------
Total 30,786 215
c. Cash flow statement reconciliations:
31 March (Unaudited)
2023 2022
$'000 $'000
----------------------------------------------- ------------ -------------------- ------
Additions to property, plant and equipment,
net 77,368 88,654
Associated cash flows
Payment for additions to property,
plant and equipment (55,752) (44,002)
Non-cash movements/presented in other
cash flow lines
Capitalised borrowing costs (3,628) (35,284)
Right-of-use asset additions - (107)
Capitalised share-based payment charge - (40)
Capitalised depreciation - (177)
Change in decommissioning provision (1,020) -
Movement in working capital (16,968) (9,044)
NOTE 8: - Intangible Assets
a. Composition:
Exploration
and evaluation Software
assets licences Total
$'000 $'000 $'000
---------------------------------- --------------- --------- -------
Cost:
At 1 January 2022 20,141 255 20,396
Additions (1) 123,005 1,713 124,718
Write off of exploration and
evaluation costs (2) (1,277) - (1,277)
----------------------------------- --------------- --------- -------
At 31 December 2022 141,869 1,968 143,837
Additions (1) 9,089 - 9,089
At 31 March 2023 150,958 1,968 152,926
Amortisation:
At 1 January 2022 - 255 255
Charge for the year - 28 28
----------------------------------- --------------- --------- -------
Total Amortisation at 31 December
2022 - 283 283
Charge for the year - 85 85
----------------------------------- --------------- --------- -------
Total Amortisation at 31 March
2023 - 368 368
At 31 December 2022 141,869 1,685 143,554
----------------------------------- --------------- --------- -------
At 31 March 2023 150,958 1,600 152,558
----------------------------------- --------------- --------- -------
(1) Additions to exploration and evaluation assets are primarily
due to the 2022 growth drilling programme undertaken offshore
Israel.
(2) Zone D: On 27 July 2022, the Company sent a formal notice to
the Ministry of Energy notifying the relinquishment of Zone D and
discontinuation of related work. As such, the licences subsequently
expired on 27 October 2022.
b. Cash flow statement reconciliations:
31 March (Unaudited)
2023 2022
$'000 $'000
-------------------------------------------- ----------- --------
Additions to intangible assets 9,089 5,173
Associated cash flows
Payment for additions to intangible assets (25,318) (2,231)
Non-cash movements/presented in other cash
flow lines
Movement in working capital 16,229 (2,942)
NOTE 9: - Deferred taxes
The Group is subject to corporation tax on its taxable profits
in Israel at the rate of 23%. The capital gain tax rates depend on
the purchase date and the nature of the asset. The general capital
gains tax rate for a corporation is the standard corporate tax
rate.
Tax losses can be utilised for an unlimited period, and tax
losses may not be carried back.
According to Income Tax (Deductions from Income of Oil Rights
Holders) Regulations, 5716-1956, the exploration and evaluation
expenses of oil and gas assets are deductible in the year in which
they are incurred.
The Group expects that there will be sufficient taxable profits
in the following years and that deferred tax assets, recognised in
the consolidated financial statements of the Group, will be
recovered.
NOTE 9: - DEFERRED TAXES (Cont.)
Below are the items for which deferred taxes were
recognised:
Right of
use asset
Accrued
expenses
and other
Property, short --
plant and term liabilities
equipment Deferred and other
& intangible expenses Staff leaving long -- Decommissioning
assets IFRS 16 Tax losses for tax indemnities term liabilities provision Total
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
-------------------------------------------- --- ------------ --------- ----------- -------- ------------- ---------------- ---------------- -------
At 1 January 2023 (40,344) (754) 56,415 6,209 167 1,193 - 22,886
Increase/(decrease)
for the year through:
Profit or loss (8,359) 95 (965) (156) 13 33 - (9,339)
At 31 March 2023 (48,703) (659) 55,450 6,053 180 1,226 - 13,547
------------------------------------------------- ------------ --------- ----------- -------- ------------- ---------------- ---------------- -------
At 1 January 2022 (12,632) (762) 4,750 11,031 94 923 8,171 11,575
Increase/(decrease)
for the year through:
Profit or loss (27,712) 8 51,665 (4,822) 73 270 (8,171) 11,311
At 31 December 2022 (40,344) (754) 56,415 6,209 167 1,193 - 22,886
------------------------------------------------- ------------ --------- ----------- -------- ------------- ---------------- ---------------- -------
31 March 20 23 31 December
(Unaudited) 2022
$'000 $'000
------------------------- --------------- ------------
Deferred tax liabilities (49,362) (41,099)
Deferred tax assets 62,909 63,985
----------------------------- --------------- ------------
13,547 22,886
NOTE 10: - Trade and other receivables
31 March 20
23 31 December
(Unaudited) 2022
$'000 $'000
---------------------------------------------- -------------- -------------
Current
Financial items
Trade receivables
Trade receivables 62,998 37,491
Other receivables (1) 59,348 999
Refundable VAT 17,711 37,131
Accrued interest income 33 888
-------------------------------------------------- -------------- -------------
140,090 76,509
Non-financial items
Prepayments 214 159
Prepaid income tax 202 -
Deferred expenses (2) - 4,929
Prepaid expenses 617 1,014
-------------------------------------------------- -------------- -------------
1,033 6,102
Total current trade and other receivables 141,123 82,611
Non-current
Financial items
Other receivables (1) 5,072 -
Non-financial items
Deferred borrowing fees 434 -
Deposits and prepayments 108 108
-------------------------------------------------- -------------- -------------
542 108
------------------------------------------------- -------------- -------------
Total non-current trade and other receivables 5,614 108
-------------------------------------------------- -------------- -------------
(1) The increase from 2022 is due to the receivable from INGL
(US$59.3 million current and US$5.07 million non-current) resulting
from relevant milestones being achieved, in line with the
agreement. See Note 13(4) for further details.
(2) Deferred expenses relate to compensation of US$22.9 million
that had been accrued in 2021 following delays to the supply of gas
from the Karish project. This compensation is treated as variable
consideration under IFRS 15 Revenue Recognition and therefore,
reduced from gas sales following commencement of production., see
also Note 3.
NOTE 11: - Inventory
31 March 20
23 31 December
(Unaudited) 2022
$'000 $'000
Hydrocarbon liquids 1,389 2,367
Natural gas 492 383
Raw materials and supplies 6,261 5,563
Total 8,142 8,313
NOTE 12: - Borrowings and secured notes
a. Issuance of US$2,500,000,000 senior secured notes:
On 24 March 2021 (the "Issue Date"), Energean Israel Finance Ltd
(a 100% subsidiary of the Company) issued US$2,500,000,000 of
senior secured notes. The proceeds were primarily used to repay in
full the project finance facility
The Notes were issued in four equal tranches as follows:
31 March 20 23 31 December
(Unaudited) 2022
Series Maturity Annual fixed
Interest Carrying value
rate Carrying value $'000 $'000
------------------ --------------- ------------- --------------------- ---------------
US$ 625 million 30 March 2024 4.500% 621,382 620,461
US$ 625 million 30 March 2026 4.875% 618,461 617,912
US$ 625 million 30 March 2028 5.375% 617,163 616,767
US$ 625 million 30 March 2031 5.875% 616,173 615,890
------------------ --------------- ------------- --------------------- ---------------
US$2,500 million 2,473,179 2,471,030
31 March 20
23 31 December
(Unaudited) 2022
$'000 $'000
-------------------------------------- ------------- ------------
Senior secured notes - current 621,382 -
Senior secured notes - non current 1,851,797 2,471,030
------------------------------------------ ------------- ------------
Total 2,473,179 2,471,030
The interest on each series of the Notes is paid semi-annually,
on 30 March and on 30 September of each year starting 30 September
2021.
The Notes are listed on the TACT Institutional of the Tel Aviv
Stock Exchange Ltd (the "TASE").
With regards to the indenture document, signed on 24 March 2021
with HSBC BANK USA, N.A (the "Trustee"), no indenture default or
indenture event of default has occurred and is continuing.
Collateral:
The Company has provided/undertakes to provide the following
collateral in favor of the Trustee:
a. First rank fixed charges over the shares of Energean Israel Limited, Energean Israel
Finance Ltd and Energean Israel Transmission Ltd, the Karish
& Tanin Leases, the gas sale and purchase agreements ("GSPAs"),
several bank accounts, operating permits, insurance policies, the
Company's exploration licences and the INGL Agreement.
b. Floating charge over all of the present and future assets of
Energean Israel Limited and Energean Israel Finance Ltd.
c. The Energean Power FPSO.
Credit rating:
The senior secured notes have been assigned a Ba3 rating by
Moody's and a BB- rating by S&P Global.
NOTE 13: - Trade and other payables
31 March 20
23 31 December
(Unaudited) 2022
$'000 $'000
------------------------------------------ ------------- --------------
Current
Financial items
Trade accounts payable (1) 143,853 209,853
Payables to related parties 24,568 21,028
Deferred licence payments (2) 26,197 13,345
Other creditors 11,377 6,712
Current lease liabilities 2,567 1,792
---------------------------------------------- ------------- --------------
208,562 252,730
Non-financial items
Accrued expenses (1) 35,913 29,404
Interest payable - 32,227
Contract liability (4) - 56,230
Social insurance and other taxes 1,394 502
Income taxes - 6
---------------------------------------------- ------------- --------------
37,307 118,369
Total current trade and other payables 245,869 371,099
---------------------------------------------- ------------- --------------
Non-current
financial items
Trade and other payables (3) 172,013 169,360
Deferred licence payments (2) 26,777 38,488
Long term lease liabilities 1,482 2,214
---------------------------------------------- ------------- ------------
200,272 210,062
Non-financial items
Accrued expenses to related parties 189 179
189 179
---------------------------------------------- ------------- ------------
Total non-current trade and other payables 200,461 210,241
---------------------------------------------- ------------- ------------
(1) Trade payables and accrued expenses relate primarily to
development expenditure on the Karish project, with the main
contributors being FPSO and subsea construction costs and for
drilling activities performed offshore Israel. Trade payables are
non-interest bearing.
(2) In December 2016, the Company acquired the Karish and Tanin
leases for US$40 million of upfront consideration plus contingent
consideration of US$108.5 million (paid over 10 equal instalments)
bearing interest at an annual rate of 4.6%. On 31 March 2023, the
total discounted deferred consideration was US$53 million (31
December 2022: US$52million) including the March 2023 payment,
which was subsequently paid in April 2023.
(3) This represents the amount payable to Technip in respect of
the EPCIC contract. Under this contract, US$250 million becomes
payable nine months following the practical completion date (as
defined under that contract), and is payable in eight equal
instalments, bearing no interest. A discount rate of 5.831% has
been applied.
(4) The contract liability relates to the agreement with Israel
Natural Gas Lines ("INGL") for the transfer of title (the "Hand
Over") of the near shore and onshore segments of the infrastructure
that delivers gas from the Energean Power FPSO into the Israeli
national gas transmission grid. The Hand Over became effective in
March 2023. Following the Hand Over, INGL is responsible for the
operations and maintenance of this part of the infrastructure.
NOTE 14: - Financial Instruments
Fair Values :
Fair value is the amount for which the asset or liability could
be exchanged in an arm's length transaction at the relevant date.
Where available, fair values are determined using quoted prices in
active markets. To the extent that market prices are not available,
fair values are estimated by reference to market-based transactions
or using standard valuation techniques involved. Values recorded
are as at the balance sheet date and will not necessarily be
realised. There were no transfers between fair value levels during
the year.
The fair value hierarchy of financial assets and financial
liabilities that are not measured at fair value (but fair value
disclosure is required) is as follows:
Fair value hierarchy as at 31
March 2023
Level 1 Level 2 Total
$'000 $'000 $'000
------------------------------------ --------- -------- ---------
Financial assets
Long term other accounts receivable - 5,072 5,072
Short term restricted cash 8,462 - 8,462
Short term trade and other
receivables - 140,090 140,090
Cash and cash equivalents 32,081 - 32,081
---------------------------------------- --------- -------- ---------
Total 40,543 145,162 185,705
---------------------------------------- --------- -------- ---------
Financial liabilities
Senior secured notes (1) 2,298,750 - 2,298,750
Trade and other payables -
long term - 201,047 201,047
Trade and other payables -
short term - 207,788 207,788
---------------------------------------- --------- -------- ---------
Total 2,298,750 408,835 2,707,585
---------------------------------------- --------- -------- ---------
Fair value hierarchy as at 31 December
2022
Level 1 Level 2 Total
$'000 $'000 $'000
--------------------------- ----- ----------- --------- ----------
Financial assets
Short term restricted cash 71,778 - 71,778
Short term trade and other
receivables - 76,509 76,509
Cash and cash equivalents 24,825 - 24,825
---------------------------------- ----------- --------- ----------
Total 96,603 76,509 173,112
---------------------------------- ----------- --------- ----------
Financial liabilities
Senior secured notes (1) 2,298,125 - 2,298,125
Trade and other payables -
long term - 210,062 210,062
Trade and other payables -
short term - 252,730 252,730
---------------------------------- ----------- --------- ----------
Total 2,298,125 462,792 2,760,917
---------------------------------- ----------- --------- ----------
(1) The senior secured notes are measured at amortised cost in
the Company's financial statements. The notes are listed for
trading on the TACT Institutional of the Tel Aviv Stock Exchange
Ltd (the "TASE"). The carrying amount as of 31 March 2023 was
US$2,473 million and as of 31 December 2022 was US$2,471
million.
NOTE 15: - Significant events and transaction during the reporting period
(a) Gas Sales Agreements - Energean signed spot gas sale and
purchase agreement with two Israeli gas buyers. The gas price will
be determined in each period, with purchased amounts determined on
a daily basis. The agreement will be valid for an initial one-year
period with an option to extend subject to ratification by both
parties.
(b) INGL Hand-Over completion - The Hand Over became effective
in March 2023. Following the Hand Over, INGL is responsible for the
operations and maintenance of this part of the infrastructure.
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END
QRFFLFSVESITLIV
(END) Dow Jones Newswires
May 18, 2023 10:07 ET (14:07 GMT)
Energean (LSE:ENOG)
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