TIDMJUB
RNS Number : 4252Y
Jubilant Energy N.V.
01 December 2014
1 December 2014
Jubilant Energy NV ("Jubilant" or "the Company")
Interim Results for the six months period ended 30 September
2014
Jubilant Energy N.V, an upstream oil and gas company with assets
in major proven and prolific hydrocarbon basins, primarily in
India, is pleased to announce its interim results for the six
months ended 30 September 2014.
Highlights
-- Following two gas discoveries in the Tripura block, an
appraisal plan for North-Atharamura-1 discovery has been submitted
to MOPNG and a field development plan for the Kathalchari discovery
is under preparation and will be submitted before 13(th) January
2015.
-- Updated Reserves and Resources statement published in July
2014 on Kharsang field in Arunachal Pradesh
-- Interpretation of high quality 3D seismic data for the
Kharsang field is at final stages of completion. This will lead to
a significant drilling programme of step out and infill wells as
well as establish new reserves in deeper plays through the drilling
programme commencing FY 2015-16;
-- The Government of India has announced the New Domestic
Natural Gas Pricing Guidelines 2014, giving a formula for gas price
determination, which on GCV basis computes to a gas price of $
5.05/MMBTU (around $ 5.61/MMBTU on NCV basis, comparable to earlier
price of $ 4.2/MMBTU on NCV basis) effective from 1(st) November
2014 and valid to the end of March 2015. The prices will be revised
every 6 months on the basis of formula as provided in the aforesaid
guidelines
-- Facilities completed and commissioned at Deen Dayal West
field in KG offshore block with 2 wells on test production.
Production
-- 274,266 barrels gross oil production (68,566 barrels net to
Jubilant) at the Kharsang field during the reporting period as
against 338,360 barrels gross oil production (84,590 barrels net to
Jubilant) in the corresponding period;
-- Test production underway at the Deen Dayal West field in the
KG offshore block. Following certain commissioning delays and an
extended production optimization programme, first gas sales is now
expected in Q4 2014-15.
Financial
-- Revenues: USD 6.3 million (H1 2013-14: USD 8.4 million);
-- Profit from operating activities: USD 2.5 million (H1 2013-14: USD 4.9 million);
-- Loss for the period static: USD 6.3 million (H1 2013-14: USD 6.3 million)
-- Total outstanding debt: stood at USD 530 million (of which
USD 515 million of principal borrowed amount) as at 30 September
2014; undrawn debt facilities of USD 5 million;
-- Cash balance aggregating to USD 39.6 million; USD 14.5
million in cash and cash equivalents representing cash and term
deposits with original maturity less than three months and USD 25.1
million in trade and other receivables representing term deposits
with original maturity greater than three months. This includes USD
32.5 million earmarked for Deen Dayal West project.
-- Current funding is being provided by the Promoters; raised
funds USD 20 million during the reporting period as unsecured loans
from Jubilant Bhatia Group companies;
-- Recent gas price fixation by Government of India is much
below the price, which was earlier notified by the Government based
on recommendations of Rangarajan Committee; however this price was
kept in abeyance due to elections in India and finally it could not
be implemented. The Oil & Gas Industry in India is deliberating
with Government for improved gas price.
Outlook
-- The Field Development Plan for Kathalchari discovery and
appraisal plan for North Atharamura Discovery will be executed with
the objective of ascertaining block level reserves as well as
expected well production levels so as to put in place a long term
gas monetization plan;
-- At Kharsang field, the Operator is taking steps to implement
short-term solutions such as radial drilling, fracpack, gas lift in
the existing wells to arrest the decline in production; further,
based on the 3D seismic interpretation results, the Operator is
taking steps to enhance the production by infill and step-out
drilling to be carried out in next financial year.
-- Jubilant is funded to carry out its anticipated work
programme in the coming calendar year with available cash, undrawn
facilities and funding support from its Promoters.
-- The Company is evaluating future work programme and funding options.
Mr. Shyam Bhartia, Chairman and Mr. Hari Bhartia, Co-Chairman of
Jubilant Group commented:
"Throughout 2014 we have continued to focus on our key assets.
In terms of production, the Company continues to work closely with
the Operator to enhance production at the Kharsang field in the
near term as well as to establish full potential of the field. The
Deen Dayal asset in KG basin continues to progress slowly.
We are also working closely with GAIL (India) Limited, our
partner at Tripura, to develop a three year execution plan for
Tripura aimed at establishing a significant reserve base which
along with expected well productivity will determine the long term
gas monetization plan.
Meanwhile, Oil & Gas industry in India continues to discuss
with the Government long term gas pricing which will be an
important driver for determining long term value of our assets.
Enquiries:
Jubilant Energy Vipul Agarwal +91 120 7186000
Dominic Morley, Adam +44 20 7886
Panmure Gordon James 2500
Competent Person's - Consent for Release
Mr. Ramesh Bhatia - Chief Operating Officer, holds a Master's of
Science degree in Applied Petroleum Geology and has over 20 years
of experience in the Oil and Gas Exploration, Development and
Production industry. He has reviewed and approved the technical
information contained in this announcement pursuant to the AIM
guidance note for mining and oil and gas companies.
Glossary of abbreviations
DDW Deen Dayal West
------ --------------------------------
DOC Declaration of Commerciality
------ --------------------------------
FDP Field Development Plan
------ --------------------------------
GCV Gross Calorific Value
------ --------------------------------
MMBTU Million British Thermal Unit
------ --------------------------------
Ministry of Petroleum & Natural
MOPNG Gas
------ --------------------------------
NCV Net Calorific Value
------ --------------------------------
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(In thousands of US As at
dollars)
Note 30 September 31 March 30 September
2014 2014 2013
------------- ---------- -------------
(Unaudited) (Audited) (Unaudited)
Assets
Inventories 1,056 824 777
Current tax assets 2,236 2,060 1,530
Trade and other receivables 52,305 33,256 26,571
Other current assets 799 1,208 1,113
Cash and cash equivalents 14,464 25,657 18,605
------------- ---------- -------------
Total current assets 70,860 63,005 48,596
Property, plant and
equipment 7 272,106 243,475 199,024
Intangible exploration
and other intangible
assets 8 230,397 235,604 212,155
Trade and other receivables 2,899 924 986
Other non-current
assets 567 689 863
------------- ---------- -------------
Total non-current
assets 505,969 480,692 413,028
------------- ---------- -------------
Total assets 576,829 543,697 461,624
------------- ---------- -------------
Equity
Issued and paid-up
share capital 5,581 5,581 5,581
Share premium 105,047 105,047 105,047
Retained earnings (124,061) (118,385) (116,287)
Stock options outstanding
reserve 12 3,007 3,575 3,441
Foreign currency translation
reserve (24,981) (22,538) (24,766)
------------- ---------- -------------
Total equity (35,407) (26,720) (26,984)
Liabilities
Loans and borrowings 10 35,103 14,391 51,973
Trade and other payables 51,206 38,119 21,705
Current tax liabilities 474 487 445
Other current liabilities 332 880 364
------------- ---------- -------------
Total current liabilities 87,115 53,877 74,487
Loans and borrowings 10 496,450 488,455 389,478
Employee benefits 340 298 686
Provisions 13 3,306 3,183 2,762
Deferred tax liabilities 25,025 24,604 21,085
Other non-current
liabilities - - 110
------------- ---------- -------------
Total non-current
liabilities 525,121 516,540 414,121
------------- ---------- -------------
Total liabilities 612,236 570,417 488,608
------------- ---------- -------------
Total equity and liabilities 576,829 543,697 461,624
------------- ---------- -------------
The Notes on pages 10 to 23 are an integrated part of this
Condensed Consolidated Interim Financial Statements.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(In thousands of US dollars) For the six-months
period ended
30 September
--------------------------
Note 2014 2013
------------ ------------
(Unaudited) (Unaudited)
Oil and natural gas revenue 6,297 8,413
Other income 178 649
------------ ------------
6,475 9,062
Production and operating
expenses 1,080 887
Personnel costs 843 1,378
Share-based payment (reversal) (6) (720)
Depletion, depreciation and
amortisation 1,073 1,214
Impairment loss on intangible
exploration assets 28 11
Other expenses 951 1,408
------------ ------------
Results from operating activities 2,506 4,884
Finance income 551 428
Finance expenses 7,631 8,785
------------ ------------
Net finance expense (7,080) (8,357)
------------ ------------
Loss before income tax (4,574) (3,473)
Income tax expense 15 (1,664) (2,825)
------------ ------------
Loss for the period (6,238) (6,298)
------------ ------------
Other comprehensive income
Items that will never be
reclassified to profit or
loss:
Remeasurement of defined
benefit liability (0.3) (87)
Tax on items that will never - -
be reclassified to profit
or loss
Items that are or may be
reclassified subsequently
to profit or loss:
Foreign currency translation
difference for foreign operations (2,443) (7,443)
Tax on items that are or - -
may be reclassified subsequently
to profit or loss
------------ ------------
Other comprehensive loss
for the period, net of income
tax (2,443) (7,530)
Total comprehensive loss
for the period (8,681) (13,828)
------------ ------------
Loss attributable to:
Owners of the Company (6,238) (6,298)
Total comprehensive loss
for the period attributable
to:
Owners of the Company (8,681) (13,828)
Basic and diluted loss per
share (USD) (0.015) (0.015)
The Notes on pages 10 to 23 are an integrated part of this
Condensed Consolidated Interim Financial Statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX-MONTHS PERIOD ENDED 30 SEPTEMBER 2013
Attributable to owners of the Company
(In thousands Share Share Retained Stock options Foreign Total
of US dollars) capital premium earnings outstanding currency equity
reserve translation
reserve
Balance as at
1 April 2013 5,581 105,047 (111,807) 6,066 (17,323) (12,436)
Total comprehensive
income for the
period
Loss for the
period - - (6,298) - - (6,298)
Other comprehensive
loss - - (87) - (7,443) (7,530)
--------- --------- ---------- -------------- ------------- ---------
Total comprehensive
income for the
period - - (6,385) - (7,443) (13,828)
--------- --------- ---------- -------------- ------------- ---------
Transactions
with owners,
recorded directly
in equity
Contribution
by/to owners
of Equity
Share-based
payment transactions
- Transfer to
retained earnings
for vested share
options forfeited
during the period - - 1,905 (1,905) - -
- Share-based
payment expense/(reversal)
for the period
(net) - - - (720) - (720)
--------- --------- ---------- -------------- ------------- ---------
- - 1,905 (2,625) - (720)
--------- --------- ---------- -------------- ------------- ---------
Balance as at
30 September
2013 5,581 105,047 (116,287) 3,441 (24,766) (26,984)
--------- --------- ---------- -------------- ------------- ---------
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2014
Attributable to owners of the Company
(In thousands Share Share Retained Stock Foreign Total
of US dollars) capital premium earnings options currency equity
outstanding translation
reserve reserve
Balance as at
1 April 2013 5,581 105,047 (111,807) 6,066 (17,323) (12,436)
Total comprehensive
income/ (loss)
for the year
Loss for the
year - - (8,503) - - (8,503)
Other comprehensive
loss - - 20 - (5,215) (5,195)
--------- --------- ---------- ------------- ------------- ---------
Total comprehensive
income/ (loss)
for the year - - (8,483) - (5,215) (13,698)
--------- --------- ---------- ------------- ------------- ---------
Transactions
with owners,
recorded directly
in equity
Contribution
by/to owners
of Equity
Share-based
payment transactions
- Transfer to
retained earnings
for vested share
options forfeited
during the year - - 1,905 (1,905) - -
- Share-based
payment (reversal)
for the year
(net) - - - (586) - (586)
--------- --------- ---------- ------------- ------------- ---------
- - 1,905 (2,491) - (586)
--------- --------- ---------- ------------- ------------- ---------
Balance as at
31 March 2014 5,581 105,047 (118,385) 3,575 (22,538) (26,720)
--------- --------- ---------- ------------- ------------- ---------
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX-MONTHS PERIOD ENDED 30 SEPTEMBER 2014
Attributable to owners of the Company
(In thousands Share Share Retained Stock options Foreign Total
of US dollars) capital premium earnings outstanding currency equity
reserve translation
reserve
Balance as at
1 April 2014 5,581 105,047 (118,385) 3,575 (22,538) (26,720)
Total comprehensive
income/ (loss)
for the period
Loss for the
period - - (6,238) - - (6,238)
Other comprehensive
loss - - (0.3) - (2,443) (2,443)
--------- --------- ---------- -------------- ------------- ---------
Total comprehensive
income/ (loss)
for the period - - (6,238) - (2,443) (8,681)
--------- --------- ---------- -------------- ------------- ---------
Transactions
with owners,
recorded directly
in equity
Contribution
by/to owners
of Equity
Share-based
payment transactions
- Transfer to
retained earnings
for vested share
options forfeited
during the period - - 562 (562) - -
- Share-based
payment (reversal)
for the period
(net) - - - (6) - (6)
--------- --------- ---------- -------------- ------------- ---------
- - 562 (568) - (6)
--------- --------- ---------- -------------- ------------- ---------
Balance as at
30 September
2014 5,581 105,047 (124,061) 3,007 (24,981) (35,407)
--------- --------- ---------- -------------- ------------- ---------
The Notes on pages 10 to 23 are an integrated part of this
Condensed Consolidated Interim Financial Statements.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands of US dollars) For the six-month
period ended
30 September
--------------------------
2014 2013
------------ ------------
(Unaudited) (Unaudited)
Cash flows from operating activities
Loss after tax for the period (6,238) (6,298)
Adjustments for:
Depletion and depreciation 985 1,116
Amortisation of other intangible
assets 88 98
Impairment losses on intangible
exploration assets and other intangible
assets (net) 28 11
Net finance expenses 6,536 8,028
Share-based payment (reversal) (6) (720)
Current tax expense 404 593
Deferred tax expense 1,260 2,232
(Gain)/ loss on sale of property,
plant and equipment (net) (65) 17
Change in assets and liabilities,
net
Change in inventories (259) 67
Change in receivables and other
assets 1,970 (1,579)
Change in payables, provisions
and other liabilities 161 (30)
Change in employee benefits 52 23
------------ ------------
Cash generated from operating
activities 4,916 3,558
Income tax paid, net - (11)
------------ ------------
Net cash generated from operating
activities 4,916 3,547
------------ ------------
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(continued from previous page)
(In thousands of USD dollars)
For the six-month
period ended
30 September
--------------------------
2014 2013
------------ ------------
(Unaudited) (Unaudited)
Cash flows from investing activities
Interest received 1,192 754
Acquisition of property, plant
and equipment, intangible exploration
assets and other intangible assets (181) (24,608)
Proceeds from disposal of property,
plant and equipment 122 34
Change in advances to co-venturers 316 1,752
Investment in term deposits and
restricted cash (25,301) (3,473)
Proceeds from disposal of term
deposits and restricted cash 207 2,919
Tax paid on interest income (644) (627)
------------ ------------
Net cash used in investing activities (24,289) (23,249)
------------ ------------
Cash flows from financing activities
Proceeds from loans and borrowings 47,757 44,547
Repayment of loans and borrowings (9,584) (3,398)
Interest paid (29,249) (24,267)
Net cash generated from financing
activities 8,924 16,882
------------ ------------
Net decrease in cash and cash
equivalents (10,449) (2,820)
CASH AND CASH EQUIVALENTS
Cash and cash equivalents at
1 April 25,657 22,607
Effect of exchange rate fluctuations (744) (1,182)
------------ ------------
Cash and cash equivalents at
30 September 14,464 18,605
------------ ------------
The Notes on pages 10 to 23 are an integrated part of this
Condensed Consolidated Interim Financial Statements.
1. Organisation and nature of operations
Incorporation and history
Jubilant Energy NV ('the Company' or 'JENV') was incorporated on
12 June 2007, in Amsterdam, the Netherlands, as a company with
limited liability. The registered office of the Company is
Orlyplein 10, Floor 24, 1043 DP Amsterdam, the Netherlands. The
Company is a subsidiary of Jubilant Energy (Holdings) B.V. (JEHBV),
a Netherlands company, which in turn is a wholly-owned subsidiary
of Jubilant Enpro Private Limited ('Jubilant Enpro'), a company
incorporated under the laws of India. On 24 November 2010, the
Company commenced trading on Alternative Investment Market (AIM),
London.
The Condensed Consolidated Interim Financial Statements of the
Group as at and for the six-months period ended 30 September 2014
comprise the Company and its subsidiaries (together referred to as
the 'Group' and individually as 'Group entity') and the Group's
proportionate interest in unincorporated joint arrangements.
The Group is engaged in the exploration for and development and
production of oil and natural gas. It conducts many of its
activities jointly with others. This Condensed Consolidated Interim
Financial Statements reflects only the Group's proportionate
interest in such activities.
The list of subsidiaries of the Company along with their
principal activity, their respective date of incorporation and
country of incorporation is as follows:
Name of the Principal activity Date of Country Ownership
subsidiary companies incorporation of incorporation
---------------------- ----------------------- --------------- ------------------ ----------
Jubilant Energy Oil and natural 28 June Netherlands Direct
International gas exploration, 2007
B.V. (JEIBV) development
and production
---------------------- ----------------------- --------------- ------------------ ----------
Jubilant Energy Investment 21 September Canada Direct
Limited (JEL company and 2004
Canada)* oil and natural
gas exploration,
development
and production
---------------------- ----------------------- --------------- ------------------ ----------
Jubilant Energy Investment 4 August Cyprus Direct
India Holding company 2004
Limited (JEIHL)*
---------------------- ----------------------- --------------- ------------------ ----------
Jubilant Oil Investment 5 August Cyprus Direct
& Gas India company (intermediate 2004
Holding Limited holding company
(JOGIHL)* of JOGIL)
---------------------- ----------------------- --------------- ------------------ ----------
Jubilant Resources Investment 5 August Cyprus Direct
India Holding company 2004
Limited (JRIHL)*
---------------------- ----------------------- --------------- ------------------ ----------
Jubilant Energy Investment 13 May Cyprus Direct
Holding (V) company 2005
Limited (JEHVL)*
---------------------- ----------------------- --------------- ------------------ ----------
Name of the Principal activity Date of Country Ownership
subsidiary companies incorporation of incorporation
---------------------- ----------------------- --------------- ------------------ ----------
Jubilant Oil Investment 5 August Cyprus Indirect
& Gas India company (intermediate 2004
Limited (JOGIL) holding company
# of JODPL, JEKPL
and JENVPL)
---------------------- ----------------------- --------------- ------------------ ----------
Jubilant Offshore Oil and natural 12 March India Indirect
Drilling Private gas exploration, 2004
Limited (JODPL) development
# and production
---------------------- ----------------------- --------------- ------------------ ----------
Jubilant Oil Oil and natural 4 September India Direct
& Gas Private gas exploration, 1992
Limited (JOGPL) development
# and production
---------------------- ----------------------- --------------- ------------------ ----------
Jubilant Energy Oil and natural 20 January India Indirect
(Kharsang) Private gas exploration, 1997
Limited (JEKPL) development
# and production
---------------------- ----------------------- --------------- ------------------ ----------
Jubilant Energy Oil and natural 13 March India Indirect
(NELP - V) Private gas exploration, 2007
Limited (JENVPL) development
# and production
---------------------- ----------------------- --------------- ------------------ ----------
* JEL Canada dissolved voluntarily and a certificate certifying
the dissolution was issued by the BC Registry on 23 December 2013.
Consequent upon the said dissolution, all the ordinary and
preference shares of JOGIHL, JEIHL, JRIHL and JEHVL held by JEL
Canada were transferred to JENV, the immediate holding Company of
JEL, Canada and accordingly all the 4 Cyprus entities viz. JOGIHL,
JEIHL, JRIHL and JEHVL became the direct subsidiaries of JENV.
# The Group has a 100% controlling interest in all of the
subsidiaries except as follows:
- JOGIL holds a 99.99% controlling interest in JEKPL as at 30 September 2014 and 31 March 2014.
- JOGIL holds a 99.99% controlling interest in JODPL till 31
March 2014. As at 30 September 2014 JOGIL holds 64.03% controlling
interest and JENV holds 35.97% controlling interest in JODPL.
- JOGIL holds a 99.99% controlling interest in JOGPL till 31
March 2014. As at 30 September 2014 JENV holds 64.37% controlling
interest and JOGIL holds 35.63% controlling interest in JOGPL.
- JOGIL holds a 99.80% controlling interest in JENVPL as at 30 September 2014 and 31 March 2014.
The Group is a member of eleven unincorporated joint
arrangements for the exploration, development and production from
the following blocks:
Name of blocks Participating
interest (PI)
--------------------- ---------------
Kharsang 25%
--------------------- ---------------
Krishna Godavari
(KG) 10%
--------------------- ---------------
Tripura 20%
--------------------- ---------------
Manipur (2 blocks)* 100%
--------------------- ---------------
Myanmar 77.5%
--------------------- ---------------
Ahmedabad (Sanand
Miroli) 20%
--------------------- ---------------
Golaghat # 10%
--------------------- ---------------
Cauvery # @ 30%
--------------------- ---------------
Mehsana # @ 30%
--------------------- ---------------
Australia # ** 38.46%
--------------------- ---------------
* Joint arrangement between three subsidiaries (JODPL, JOGPL and
JEKPL), hence 100% for the Group as a whole.
# The Group has already impaired the carrying amounts of the
blocks.
@ The Group is in the process of relinquishment of the
blocks.
** During the year ended 31 March 2014, the permit had been
cancelled and a formal exit was granted to the Group from Petroleum
Exploration Permit 'T-47P' in Australia, without any financial
impact.
2. Basis of preparation and measurement
a) Statement of compliance
This condensed consolidated interim financial statements has
been prepared in accordance with International Accounting Standard
(IAS) 34, Interim Financial Reporting. Selected explanatory notes
are included to explain events and transactions that are
significant to an understanding of the changes in the financial
position and performance of the Group since the last annual
consolidated financial statements as at and for the year ended 31
March 2014. This condensed consolidated interim financial
statements does not include all the information required for
complete set offinancial statements prepared in accordance with
International Financial Reporting Standards.
The Condensed Consolidated Interim Financial Statements has been
authorised for issue by the Board of Directors in its meeting held
on 28 November 2014.
b) Preparation of Condensed Consolidated Interim Financial Statements on a going-concern basis
The Group has incurred significant losses during the six months
period ended 30 September 2014 and during the year ended 31 March
2014, and has a negative equity of USD 35,407 thousand and a
negative working capital of USD 16,255 thousand as at 30 September
2014. The group has obtained from the ultimate parent company -
Jubilant Enpro Private Ltd - unequivocal assurance for financial
support for continued operations of JENV up to September 2015,
should this be required and has prepared the financial statements
on a going concern basis. In assessing whether the going-concern
assumption is appropriate, the management has taken into
consideration the following additional factors:
i) The Group has significant hydro carbon reserves/resources as
confirmed in competent person's report.
ii) The Group is working on a range of strategic options for the
business and its medium to long-term funding.
iii) The Group had, during the year ended 31 March 2013, tied up
funding arrangements for the capital expenditure on development of
its key asset, viz., KG block.
iv) Kharsang block is a producing block and has a history of
profitable operations, generating internal accruals on a consistent
basis. Additionally, its key asset, KG block is likely to commence
production of hydro carbons shortly, thus there would be additional
internal accruals.
v) The Group may approach various financing resources from
outside agencies/banks/financial institutions based on the
estimates of reserves/resources as evaluated by an independent
expert.
Based on the above, the management has assessed that the
going-concern assumption is appropriate.
3. Significant accounting policies
The accounting policy applied by the Group in these condensed
consolidated interim financial statements are same as those applied
by the Group in its last financial statements as at and for the
year ended 31 March 2014.
4. Estimates
The preparation of interim financial statements requires
management to make judgments, estimates and assumptions that affect
the application of accounting policies and the reported amounts of
assets and liabilities, income and expense. Actual results may
differ from these estimates.
In preparing this condensed consolidated interim financial
statements, the significant judgments made by the management in
applying the Company's accounting policies and the key sources of
estimation uncertainty were the same as those applied to the
consolidated financial statements as at and for the year ended 31
March 2014.
5. Financial risk management
The Group's financial risk management objectives and policies
are consistent with those disclosed in the consolidated financial
statements as at and for the year ended 31 March 2014.
6. Segment reporting
The Chief Operating Decision Maker analyses the operating
results of each of the oil and natural gas assets separately. Since
all the oil and natural gas assets have similar characteristics
such as nature of production process, nature of products, etc., the
Group has aggregated all such oil and natural gas assets, and
accordingly, it has only one reportable segment, i.e., oil and
natural gas. Hence, no separate segment information has been
furnished herewith.
7. Property, plant and equipment (including capital work-in progress) (PPE)
During the six-months period ended 30 September 2014, the Group
has acquired assets with cost (including capitalized borrowing cost
(also refer note 9)) of USD 36,991 thousand (30 September 2013: USD
34,153 thousand and 31 March 2014: USD 69,830 thousand).
Movements in property, plant and equipment are as follows:
(In thousands of US dollars) For the six-months For the
period ended year ended
30 September 31 March
2014
2014 2013
Opening balance as at
1 April 243,475 195,971 195,971
Additions (including
borrowing cost and transfer
from capital work in
progress) # 36,991 34,153 69,830
Disposals/adjustments (56) (52) (60)
Transfer from capital
work in progress (114) (2,749) (3,242)
Depletion/depreciation
for the period/ year
charged to comprehensive
income (977) (1,116) (2,317)
Depreciation for the
period/ year transferred
to exploration and evaluation
assets (CWIP) (12) (8) (13)
Effect of movements in
foreign exchange rates (7,201) (27,175) (16,694)
Closing balance 272,106 199,024 243,475
--------- ---------- ------------
# includes amount transferred from intangible exploration and
other intangible assets amounting to USD 12,550
(30 September 2013: Nil) (refer note 8 below).
During the year ended 31 March 2014, based on the report of an
independent expert, the Group had made a revision in the quantity
of proved developed reserves of oil. The impact of such change had
resulted in increase in depletion by USD 108 thousand for the year
ended 31 March 2014.
8. Intangible exploration and other intangible assets
(In thousands of US dollars) For the six-months For the
period ended year ended
30 September 31 March
2014
2014 2013
Opening balance as at
1 April 235,604 224,064 224,064
Acquisitions 36 3 98
Internally developed
* 14,530 19,698 32,156
Transfers to capital
work in progress - PPE
# (12,550) - (61)
Amortisation for the
period/year charged to
comprehensive income (87) (97) (186)
Amortisation for the (10) - -
period/year transferred
to exploration and evaluation
assets
Impairment loss (28) (11) (39)
Effect of movements in
foreign exchange rates (7,098) (31,502) (20,428)
Closing balance 230,397 212,155 235,604
---------- --------- ------------
*Represents exploration and evaluation CWIP, which consists of
the Group's exploration projects which are pending determination of
technical feasibility and commercial viability of extracting a
mineral resource. Costs under the head 'Internally developed'
represent the Group's share of costs incurred on exploration and
evaluation assets during the period/year.
# The Group is a member of an Unincorporated Joint Venture of
Ahmedabad (Sanand Miroli) PSC with a 20% participating interest.
The said block consists of two areas Sanand (Part A) and Miroli
(Part B). The Field Development Plan (FDP) of Part A and Part B
areas has been approved by the Management Committee. The revised
FDP covering the Kalol discovery in SE-4 cluster in Part A has been
submitted to DGH for its approval. During the current period,
considering that the consortium has certainty and plan to do
further development activities including drilling of development
wells, the cost incurred by the Group till 30 September 2014 has
been transferred from intangible exploration assets to capital
work-in progress under property, plant and equipment (refer note 7
above).
9. Borrowing cost
The capitalization rate used to determine the borrowing cost
eligible for capitalization in respect of general purpose
borrowings is 10.36% p.a. for the six-months period ended 30
September 2014 (30 September 2013: 12.78% p.a.).
Further, the effective rate used to determine the borrowing cost
eligible for capitalization in respect of specific purpose
borrowings is 14.50% p.a. for six-months period ended 30 September
2014 (30 September 2013: 14.20% - 14.30% p.a.).
During the six-months period ended 30 September 2014, the
Company has allocated borrowing cost of USD 24,739 thousand (30
September 2013: USD 24,709 thousand) to property, plant and
equipment/capital work-in progress/ intangible assets, being
directly attributable to the acquisition or construction of
qualifying assets. The balance borrowing cost of USD 7,088 thousand
(30 September 2013: USD 8,456 thousand) has been charged to
comprehensive income/ (loss).
10. Loans and borrowings (including accrued interest)
(In thousands of US As at
dollars)
30 September 31 March 30 September
2014 2014 2013
Financial liabilities
at amortised cost
Secured foreign currency
term loans 61,590 59,324 91,653
Secured term loans from
banks 314,371 303,277 280,417
Unsecured inter corporate
deposits from related
parties 125,947 111,473 43,422
12% Redeemable preference
shares 29,645 28,769 25,953
Others - 3 6
Total 531,553 502,846 441,451
------------- --------- -------------
Current 35,103 14,391 51,973
Non-current 496,450 488,455 389,478
531,553 502,846 441,451
------------- --------- -------------
i. There has been no change in the terms and conditions of the
outstanding loans including securities from the financial year
ended 31 March 2014 except as detailed below:
Movement during the current period
Unsecured loans from related parties
a) During the period, JOGPL has entered into a loan agreement
with Jubilant Enpro Private Limited for a loan of INR 500,000
thousand (equivalent to USD 8,132 thousand). This loan is repayable
after a period of one year at an interest rate of 15.5% per annum,
payable quarterly.
As of 30 September 2014, JOGPL has drawn down INR 360,000
thousand (equivalent to USD 5,855 thousand) from Jubilant Enpro
Private limited.
b) During the period, JOGPL and JODPL have entered into loan
agreements with Tower Promoters Private Limited for loan of INR
73,500 thousand (equivalent to USD 1,195 thousand) and INR 496,500
thousand (equivalent to USD 8,075 thousand) respectively. These
loans would be repayable after a period of one year at an interest
rate of 15.5% per annum, payable quarterly.
As of 30 September 2014, JOGPL and JODPL have drawn down INR
73,500 thousand (equivalent to USD 1,195 thousand) and INR 496,500
thousand (equivalent to USD 8,075 thousand) respectively from Tower
Promoters Private limited.
c) During the period, JENV has entered into a loan agreement
with JEHBV for loan of USD 5,000 thousand. This loan is repayable
after a period of one year at an interest rate of 6 months USD
LIBOR plus 450 bps per annum, payable annually.
As of 30 September 2014, JENV has drawn down USD 5,000 thousand
from JEHBV.
ii. There has been no change in Non-fund based facility from the
financial year ended 31 March 2014.
11. Employee benefits
The Group's provident fund scheme is a defined contribution
plan. The Group's gratuity scheme is a defined benefit plan.
Gratuity is paid as a lump sum amount to employees at retirement or
termination of employment at an amount based on the respective
employee's eligible salary and the years of employment with the
Group. The Group has made provision for gratuity on the basis of
actuarial valuation.
12. Share-based payment plans
In January 2010, the Group had established a share option
programme that entitles share options of the Company to all
employees of the Group and others providing similar services under
the Stock Option Plan. All the options would vest in four staggered
installments on an annual basis over a four-year period. In
general, the options are exercisable in accordance with the vesting
schedule over a period of four years beginning from the date of
vesting .In January 2010 JENV had granted 11,542,846 share
options.
The Board of Directors, at its meeting held in November 2010,
approved the modification in the terms and conditions of the Stock
Option Plan and also decided to increase the reserved number of
ordinary shares of JENV from 15,304,586 to 17,671,098 (face value
of EUR 0.01 each).
As a part of modification, the exercise price of the option was
reduced to GBP 0.696 (equivalent to USD 1.12) per share and the
vesting period was changed to start from 1 April 2010 onwards.
Further, in the same board meeting, the Group granted further
options for 4,225,680 shares and 667,843 shares to the employees
with the vesting period commencing from 1 April 2010 and 15 October
2010 respectively.
During the year ended 31 March 2012, the Group further granted
options for 100,000 shares with the vesting period commencing from
01 April 2011.
The Group has adopted Black-Scholes Model to measure the fair
value of the option by taking into account the terms and conditions
upon which the options were granted.
A. Charge to the Statement of Comprehensive Income towards
equity-settled share-based payments and the movement in share-based
compensation reserve is as given below.
For the six-months For the
period year ended
ended 30 September 31 March
2014
(In thousands of US 2014 2013
dollars)
Balance at the beginning
of the period/ year 3,575 6,066 6,066
Add: Share-based payment
expense/(reversal) for
the period/year (net) (6) (720) (586)
Less: Transfer to retained
earnings for share options
forfeited during the
period/ year (562) (1,905) (1,905)
Balance at the end of
the period/year 3,007 3,441 3,575
--------- ----------- ------------
B. Movement in the share options outstanding
For the six-months
period ended 30 September
2014
Number Weighted average
of options exercise price
(USD per share)
Balance at the beginning
of the period 5,456,319 1.12
Granted during the period - -
Exercised during the - -
period
Forfeited/lapsed during
the period
(refer to Footnote
a) (539,231) 1.12
Balance at the end of
the period 4,917,088 1.12
------------ -----------------
Exercisable at the
end of the period 4,783,319 1.12
For the six-months
period ended 30 September
2013
Number Weighted average
of options exercise price
(USD per share)
Balance at the beginning
of the period 8,139,979 1.12
Granted during the period - -
Exercised during the - -
period
Forfeited/lapsed during
the period
(refer to Footnote
a) (589,323) 1.12
Balance at the end of
the period 7,550,656 1.12
------------ -----------------
Exercisable at the end
of the period 5,131,062 1.12
Footnotes:
a) The options have been forfeited due to the employees leaving
the services during the period ended 30 September 2014 and 30
September 2013.
b) The Group has assumed 5% attrition rate per annum.
The Group had estimated the volatility in the share price based
on the standard deviation of the natural
logarithm of returns over the period in the share prices of the
companies comparable with the Group.
Estimated remaining contractual life of the options as at 30
September 2014 is 3.55 years [30 September 2013: 4.53 years and 31
March 2014: 4.05 years]
13. Provisions
(In thousands of US dollars) Site restoration
obligation
Balance as at 1 April 2013 2,972
Provisions made during the
period 133
Provisions reversed/(utilised)
during the period (71)
Unwinding of discount 131
Effect of movements in foreign
exchange rates (403)
-----------------
Balance as at 30 September
2013 2,762
-----------------
Balance as at 1 April 2013 2,972
Provisions made during the
year 295
Provisions reversed/utilised
during the year (99)
Unwinding of discount 270
Effect of movements in foreign
exchange rates (255)
-----------------
Balance as at 31 March 2014 3,183
-----------------
Balance as at 1 April 2014 3,183
Provisions made during the
period 64
Unwinding of discount 153
Effect of movements in foreign
exchange rates (94)
Balance as at 30 September
2014 3,306
-----------------
The Group's site restoration obligations arise from its
ownership interest in oil and natural gas assets.
The total future site restoration obligation is estimated based
on the Group's net ownership interest in all wells and facilities,
estimated costs to reclaim and abandon these wells and facilities
and the estimated timing of the costs to be incurred in future
years. The Group has estimated the net present value of its total
site restoration obligation based on an undiscounted total future
liability. The majority of costs are expected to be incurred within
a period of next 25 years. The estimation is based on existing
technology of site restoration of the Group's oil and natural gas
fields and production facilities. The discount factor, being the
risk-adjusted rate related to the liability, is estimated to be 8%
for the period/year ended 30 September 2014 (31 March 2014:
8%).
14. Operating leases
The Group had taken office premises and various residential
premises under operating lease arrangements. The leases were
cancellable at the option of the Group. Rental expenses under these
leases for the six month period ended 30 September 2014 amounted to
USD 65 thousand (net of expenses recovered USD 30 thousand) [30
September 2013: USD 7 thousand (net of expenses recovered USD 1
thousand)].
The Group had taken additional office premises on
non-cancellable operating lease. The lease term was for a
non-cancellable period of five years which expired during the
period ended 30 September 2013. Rental expense under this lease for
the six month period ended 30 September 2013 amounted to USD 49
thousand (net of expenses recovered
USD 97 thousand).
15. Income tax expense
Income tax expense is recognised based on Management's best
estimate of the weighted average annual income tax rate expected
for the full financial year applied to the pre-tax income of the
interim period.
Effective tax reconciliation:
(In thousands of US dollars) For the six-months
period ended
30 September
2014 2013
Loss for the period (6,238) (6,298)
Total income tax expense 1,664 2,825
Loss before income tax (4,574) (3,473)
---------- ----------
Income tax using enacted tax
rate (1,082) (367)
Impact of change in tax laws/tax
rate on current tax - (60)
Effect of higher tax rate on
capital items - 28
Foreign exchange - (10)
Non-taxable income (2) (235)
Non-deductible expenses 1,219 339
Change in unrecognised tax
losses 1,549 3,115
Others (20) 15
Total income tax expense recognised
in Condensed Consolidated Statement
of Comprehensive Income 1,664 2,825
---------- ----------
16. Related parties
(a) Related parties and nature of relationships where control exists
Relationship Name of related
parties
Ultimate holding company Jubilant Enpro
Private Limited
Holding company Jubilant Energy
Holding BV
(b) Related parties and nature of relationships where
transactions have taken place during the period
Relationship Name of related parties
Fellow subsidiary 1) Western Drilling Contractors
Private Limited
2) Enpro Oil Private Limited
Enterprises that are 1) Jubilant Securities Private
directly or indirectly Limited
under the control or 2) Jubilant Capital Private
significant influence Limited
of key management personnel 3) Jubilant Life Science Limited
4) Tower Promoters Private Limited
Joint venture of the Geo Enpro Petroleum Limited
ultimate holding company
(c) Key management 1) Shyam S Bhartia (Promoter
personnel and Director)
2) Hari S Bhartia (Promoter
and Director)
3) Sir Robert Paul Reid
4) Arun Kumar Duggal
5) Dr. Andrew William Wood
6) Shahzaad S Dalal
7) Radhey Shyam Sharma
8) Rakesh Jain (appointed w.e.f
12 August 2013)
9) Vipul Agarwal
10) Ramesh Bhatia
11) Sandeep Budhiraja (resigned
w.e.f. 30 September 2013)
12) Premanand Mishra (resigned
w.e.f. 28 February 2014)
13) Anil Mathur (resigned w.e.f.
4 October 2013)
(a) Related party transactions
Particulars Ultimate Holding Joint venture
holding company of the ultimate
company holding company
(In thousands For the For the For the
of US dollars) six-month six-month six-month
period ended period ended period ended
30 September 30 September 30 September
2014 2013 2014 2013 2014 2013
-------- ------- ------- -------- --------- --------
(i) Transactions
Loans taken 5,993 2,886 5,000 16,500 - -
Expenses incurred
by the Group
on their behalf - - - - 5 335
Bank charges
and guarantee
commission 302 251 176 - - -
Expenses incurred
on behalf of
the Group 2 2 - - 2,604 4,774
Interest on
redeemable preference
shares 1,722 1,568 - - - -
Interest expense
on inter corporate
deposits 590 506 2,128 384 - -
Ultimate holding Holding company Joint venture
company of the ultimate
holding company
(ii) Balances As at As at As at
outstanding
30 31 30 30 31 30 30 31 30
September March September September March September September March September
2014 2014 2013 2014 2014 2013 2014 2014 2013
---------- ------- ---------- ---------- ------- ---------- ---------- ------ ----------
Trade and
other receivables
(loans and
advances
recoverable) - - - - - - 5 89 122
Loans and
borrowings
including
interest payable
(unsecured
interoperate
deposits) 13,693 8,629 7,741 92,910 92,742 29,831 - - -
Trade and
other payables 803 501 251 1,047 876 270 127 - 87
Redeemable
preference
shares 29,645 28,769 25,953 - - - - - -
Particulars Fellow subsidiary Enterprises that
are directly or
indirectly under
the control or
significant influence
of key management
personnel
(In thousands of US For the For the six-month
dollars) six-month period ended 30
period ended September
30 September
2014 2013 2014 2013
------------- ------- --------------- --------
(i) Transactions
Loans taken - - 9,489 5,094
Expenses incurred
on behalf of the
Group - - 81 50
Expenses incurred
by the Group on their
behalf - 132 - -
Interest expense
on inter corporate
deposits 75 77 1,022 30
Fellow subsidiary Enterprises that
are directly or
indirectly under
the control or
significant influence
of key management
personnel
(ii) Balances outstanding As at As at
30 September 31 30 September 30 September 31 30 September
2014 March 2013 2014 March 2013
2014 2014
------------- ------- ------------- --------------- -------- -------------
Trade and other
receivables
(loans and advances
recoverable) 127 131 125 9,813 10,097 10,427
Trade and other payables
(sundry creditors) - - - 33 15 47
Loans and borrowings
including interest
payable (unsecured
interoperate
deposits) 1,042 1,160 1,041 18,302 8,942 4,810
------------- ------- ------------- --------------- -------- -------------
(b) Key management personnel compensation*
The key management personnel compensation (net of
reimbursements) is as follows:
(In thousands For the six-months
of US dollars) period ended
30 September
2014 2013
Short-term employee
benefits 598 529
Post-employment
benefits 19 19
Share-based payment
expense 1 23
Directors' fee 88 100
---------- ----------
Total 706 671
---------- ----------
* Provision for defined benefit obligation and other long-term
employee benefits has not been considered, since the provisions are
based on actuarial valuations for the Group's entities as a
whole.
(c) There is no change in guarantees/securities given by related
parties in respect of performance of blocks/loans taken by the
Group as compared to 31 March 2014.
17. Capital commitments
In accordance with the terms of the production sharing contracts
entered into by the Group along with other consortium partners with
the Government of India in respect of oil and natural gas
fields/blocks, the Group has certain minimum exploration and
development commitments with estimated expenditure of USD 1,165
thousand as at 30 September 2014
(31 March 2014: USD 538 thousand and 30 September 2013: USD 785
thousand). Capital commitments are identified based on the
contracts entered into with the suppliers/service providers.
The Group has continuing commitments towards minimum work
programmes, etc., in terms of production sharing contracts for
various oil and natural gas assets. Such commitments aggregate to
USD 87,394 thousand as at 30 September 2014 (31 March 2014: USD
100,773 thousand and 30 September 2013: USD 95,884 thousand).
18. Contingencies
There are no significant changes in the last contingencies
disclosed in the consolidated financial statements as at and for
the year ended 31 March 2014.
19. Subsequent events
There were no material post subsequent events which have a
bearing on the understanding of the financial statements.
20. Foreign currency translation
The Group has converted Indian Rupees ('INR') balances to 'USD'
equivalent balances on the following basis:
-- For conversion of all assets and liabilities, other than
equity, as at the reporting dates, the exchange rates prevailing as
at the reporting date have been used, which are as follows:
- as at 30 September 2014: USD 1 = INR 61.48
- as at 31 March 2014: USD 1 = INR 59.76
- as at 30 September 2013: USD 1 = INR 62.70
-- For conversion of all expenses and income on statement of
comprehensive income and the cash flow statement, for the
respective periods, periodic average exchange rates have been used,
which are as follows:
- For the six months ended 30 September 2014: USD 1 = INR 60.07
- For the six months ended 30 September 2013: USD 1 = INR 58.90
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UGGQPPUPCUQG
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