PETROGRAND AB: INTERIM REPORT JANUARY-JUNE 2011
(Thomson Reuters ONE) -
INTERIM REPORT JANUARY- JUNE 2011
PETROGRAND AB (publ)
Second quarter of 2011
* During the 2(nd) quarter, the Group had no operating income (TSEK 238). The
operating result for the 2(nd) quarter amounted to TSEK -8,908 (-8,613).
* Net financial income in the 2(nd) quarter amounted to TSEK 18,774 (2,385),
including currency effect of TSEK 12,824 (-)
* Net result after tax for the 2(nd) quarter amounted to TSEK 9,866 (-6,228).
First half year of 2011
* During the 1(st) half year, the Group had no operating income (TSEK
12,499). The operating result for the 1(st) half year amounted to TSEK
-17,069 (-13,535).
* Net financial income in the 1(st) half of 2011 amounted to TSEK 31,449 (-
1,692), including currency effect of TSEK 10,481 (-)
* Net result after tax for the 1(st) half year amounted to TSEK 14,380 (-
15,327).
* Earnings Per Share for the 1(st) half year amounted to SEK 0.36 (SEK -0,38).
MD's report
Dear Shareholders,
During the second quarter we have continued to work on our two exploration
blocks. At least three wells will be drilled (two on Nizhnepaninsky and one on
Muromsky-2) during the first half of 2012. We have been active during the summer
with interpreting the seismic we shoot earlier this year and also evaluating the
drilling offers we have received so we will be able to drill the exploration
wells during 2011/2012. In early June we announced that more time was needed in
order to finish the seismic report of Nizhnepaninsky. In the beginning of next
week we will meet with our geologists and engineers in Moscow and get a
presentation of the conclusions made by Integra Geophysics, after which we will
communicate our findings.
Financial result
The placement of our excess liquid assets in rubles, partly in a fixed-rate
deposit and partly in discretionary asset management, during the first six
months of 2011 generated a return of 18,8 million SEK. Our financial strength is
good and our equity amounts to 641 million SEK (SEK 15,93 / share) of which
568,7 million SEK (SEK 14,41/share) is current assets. Our net profit for the
first six months amounted to 14,4 million SEK (SEK 0,36/share) during the second
quarter.
Nizhnepaninsky
Following the acquisition of the Nizhnepaninsky license end of last year we have
during the first half of 2011 focused our work on compiling and evaluate the
seismic work. We have decided to drill two exploration wells during first half
of 2012. The procurement of materials has begun and mobilization of the rig will
occur during autumn/winter 2011/2012.
Muromsky - 2
One exploration well will be drilled in Muromsky-2 during 2012. Procurement of
material has begun and mobilization of the rig will occur during autumn/winter
2011/2012.
Strategic alliance / partnership
In connection with the big investments and the opportunities we see in the
Tomsk-region we have entered into a strategic alliance with a Russian investment
company from which we have good experiences from earlier collaborations by
selling 5% of our subsidiary Petrogrand Exploration and Production, which owns
the Nizhnepaninsky-license.
Acquisition process
In April 2011 we signed a letter of intent for an acquisition of a Russian oil
producing company in the Orenburg-region, southeast Russia. We did a "due-
diligence" after which we decided not to proceed, as the acquisition did not
meet our investment thresholds.
Change of listing
We have started the work of changing our listing from First North to Nasdaq OMX
main market. This is expected to occur during next year. During the fall we will
go through all the requirements that we will have to follow being listed on the
main market. Our expectation is that all the requirements will be met during
2012.
Capital markets day
Late May we held a capital markets day where we invited shareholders, analysts
and our Russian business partners Renaissance Capital and Sberbank. The
reception was very good and this will be an occurring event where we get the
chance to meet many of our shareholders.
Annual general meeting
In mid June we had our annual general meeting where unanimous decisions were
made in continuing the options program to our personnel and management and an
extension of the authorization to issue new equity and convertible bonds.
We can also inform that Petrogrand strengthens its organization within business
development and investor relations by employing Joakim Kindahl from September
1st. Joakim has for the last six years worked as an equity analyst with focus on
the oil/gas sector at Carnegie and Öhman Fondkommission. Before that he was
employed as an economist at Lundin Petroleum.
Joakim is 34 years old and holds a MSc in Economics and Business Administration
from Stockholm School of Economics
We are continuing unabated in developing our projects in accordance with our
established business plan.
Maks Grinfeld
Managing Director Petrogrand AB
Comment on the Group's result and financial position per 30 June 2011
Turnover and result
In early February 2010, the sale of the subsidiary STS-Service to Gazprom Neft
Vostok was completed. As a consequence of the sale, Petrogrand during 2010
presented its financial reports according to IFRS 5, Non-current Assets Held for
Sale and Discontinued Operations. In the Group income statement, continued and
discontinued operations were thus reported separately.
Of the comparative figures within parenthesis for the respective period in
2010, the first figure represents the continuing operations and the second
figure represents the discontinued operations.
The Group had no operating income during the first half year ( - / TSEK 12,499)
and also did not have any production related operating expenses ( - / TSEK -9
778).
The Group did not have any costs for sales and distribution during the period (
- /TSEK -96)
Administration costs amounted to TSEK -16,078 (-11,667 / -4,493) and other
operating expenses were TSEK -991 ( - / - ).
The Operating result for the first half year amounted to TSEK -17,069 (-11,667 /
-1,868).
Financial income amounted to TSEK 20,971 (2,173 / - ). Net financial items
amounted to TSEK 31,449 (-1,727 / -3,419) which includes currency effects
amounting to TSEK 10,481 ( - / - ). Net financial items include profits and
losses from financial investments involving the company's excess liquidity
assets, see below in section Financing and liquidity.
Result before tax amounted to TSEK 14,380 (-9,939 / -5,287). There was no tax
charged in the quarter ( - / TSEK -101).
For the first half of 2011, the Group reports a net result after tax of TSEK
14,380
(-15,327 / -5,388), equivalent to an earnings per share of SEK 0.36 (-0,38 /
-0,13).
Investments
The Group's investments in tangible and intangible fixed assets during the first
half year of 2011 amounted to TSEK 37,441 (1,726), of which investments in
intangible fixed assets represented TSEK 36,465 (1,670). The investments in
intangible fixed assets relate to the seismic surveys performed in the
Nizhnepaninsky license area.
Financing and liquidity
The major part of the Group's excess liquidity assets is still placed in RUB in
the two leading Russian banks Sberbank and Renaissance Capital. The return in
RUB terms during the first half of 2011 corresponds to a level of return of
approximately 9 per cent per annum.
There was no change in the amount placed in the fixed-rate investment in
Renaissance Capital during the first half year. Interest on the investment
amounted to TSEK 9,128 during the period.
In the company's reporting currency SEK, the result of the asset management in
Sberbank is reported as a "Change in real value of assets under discretionary
management" amounting to TSEK 9,668.
Corrections has been made in the second quarter due to an incorrect distribution
of financial income during the first quarter. An adjustment of TSEK 3 766 has
therefore been made between changes in real value of assets under discretionary
management and exchange rate effects. Change in real value of the assets in the
second quarter amount to TSEK 2 964 adjusted for the correction. The adjustment
does not affect the result.
Liquid assets in SEK in the Group amounted to TSEK 166,744 (TSEK 675,972) as of
30 June 2011. In addition, assets placed in RUB in the fixed-rate investment
including accrued interest amounted to TSEK 153,219 and the assets in
discretionary management amounted to TSEK 240,626. Available assets in total
thus amounted to TSEK 560,589 as of 30 June 2011.
Employees
The number of employees in Group companies at the end of the period was 34 (28),
of which 18 (17) were women and 16 (11) were men.
Comment on the Parent Company
In the balance sheet item Financial fixed assets the loans given to the Russian
subsidiaries to cover acquisitions of and investments in oil license areas are
reported.
Transactions with related parties
There were no transactions with related parties during the first half of 2011.
Major events during the report period
Contract with Integra-Geophysics for seismic work
On 25 January, Petrogrand reported that an agreement had been signed with
Integra-Geophysics involving seismic work on the Nizhnepaninsky license area
which was acquired in an auction on 10 December 2010. The contract was signed as
the result of an open tender process in which several well qualified companies
participated. The seismic surveys was carried out during winter and spring and
the result will lay the ground for exploration drilling which will take place
during the winter season 2011/12.
Petrogrand AB has been granted Muromskij-2
Petrogrand AB has through its Russian subsidiary Petrogrand Invest LLC, free of
charge been granted the rights to, during a 5 year period, perform geological
surveys on the license area Muromskij-2, in the Tomsk-region. According to data
from the State Committee for Natural Resources, the reserves have been
determined as 39.4 million tons, (295 million barrels) according to the Russian
classification.
Annual General Meeting
The annual general meeting in Petrogrand AB was held on 15 June 2011. The AGM
resolved to adopt the consolidated profit and loss account and the consolidated
balance sheet for the financial year 2010. It was resolved to implement a new
incentive program for the Group's employees. These will be offered to acquire
subscription warrants which will be issued under the incentive program. The AGM
resolved to authorize the Board during the period until the next annual general
meeting, to independently decide on new issue of shares, subscription warrants
and/or convertible bonds, that if exercised in full at the most, may correspond
to 30 percent of the Company's share capital.
Operations
Petrogrand AB is an independent Swedish oil company within exploration and
production which previously operated only in the Tomsk region in western Siberia
in Russia. Following the sale of its production subsidiary STS-Service early in
2010, a new business plan for future operations was developed. Petrogrand's
general business concept is to carry on oil production through acquired Russian
oil companies and oil licenses. Petrogrand will also manage, enhance the value
of and sell Russian oil assets.
The first investment in line with the new business plan is the Nizhnepaninsky
license area in the Tomsk region. The license area was discovered in the 1960's
and the State Committee for Natural Resources has determined the reserves at
8.7 million tons, according to the Russian classification C3 (approximately
65.2 million barrels). During winter and spring, seismic surveys were carried
out in the license area and the results will lay the ground for exploration
drilling which will take place during the winter season 2011/2012.
Another project regarded as particularly interesting is the Muromsky-2 license
area, also in the Tomsk region. The license area has reserves supposedly
amounting to 39.4 million tons, according to the Russian classification of C3
(about 287.8 million barrels). Petrogrand will evaluate the status and quality
of seismic work, previously carried out in the license area and further update
and finalize the surveys so that exploration drilling can take place during the
winter season 2011/2012.
Production status as of 30 June 2011
The Petrogrand Group did not produce any oil during the 2(nd) quarter 2011.
Major events following the end of the report period
Fixed-rate investment with Renaissance Capital
The agreement with Renaissance Capital expired on 1 July 2011. As a result, the
account was closed and the balance transferred to Sberbank asset management.
New recruitment
Petrogrand strengthens its organization within business development and investor
relations by employing Joakim Kindahl from September 1st. Joakim has for the
last six years worked as an equity analyst with focus on the oil/gas sector at
Carnegie and Öhman Fondkommission. Before that he was employed as an economist
at Lundin Petroleum. Joakim is 34 years old and holds a MSc in Economics and
Business Administration from Stockholm School of Economics.
Share data
The share capital of Petrogrand AB amounts to SEK 268,410,272 divided into
40,265,898 outstanding shares, each with a par value of SEK 6.67. The number of
shares is the result of a consolidation of shares 1:100 with record date 20
August 2010.
In addition, there is a latent dilution due to an Incentive Program 2010/2013
which was approved at the AGM on 21 June 2010. Company employees and board
members are included in the incentive program. Within the program, 108 million
have been subscribed and purchased. 100 warrants give the right to subscribe for
1 share.
The AGM on 15 June 2011 resolved in accordance with the Board's proposal to
implement an incentive programme 2011/2014 through issue and transfer of not
more than 1 030 000 subscription warrants. Each warrant entitles the holder to
subscribe for one new share in the Company. The remaining options may be offered
to existing and future employees up until the AGM of 2012.
Assuming full exercise of all subscription warrants, the share capital will
increase by no more than 14,065,144.22 SEK, equivalent to a dilution of about
4.98 per cent of share capital and voting rights.
Accounting policy
Basis for the preparation of the interim report
This interim report has been prepared in accordance with IAS 34, Interim
reporting. The consolidated group accounting has been prepared in accordance
with International Financial Reporting Standards (IFRS) as approved by EU and
the Annual Accounts Act.
The interim report does not include all the information and notes included in
the annual report.
Discontinued operations
In December 2009, Petrogrand AB and Gazprom Neft Vostok signed a sale and
purchase agreement concerning the sale of Petrogrand's subsidiary STS-Service.
Consequently, Petrogrand has based the financial reports during 2010 according
to IFRS 5, Non-current Assets Held for Sale and Discontinued Operations. In the
Group income statement for the comparative periods in 2010, continued and
discontinued operations are thus reported separately and in the balance sheet,
assets and liabilities held for sale are reported on separate lines. In the
income statement for discontinued operations, all income and costs, including
financial items that are directly attributable to the divested subsidiary are
included.
Parent company
The interim report for the parent company has been prepared in accordance with
the Annual Accounts Act and the Securities Market Act, which is in accordance
with the rules in RFR 2
Accounting for Legal Entities.
Future reporting dates
January - September interim report: To be published 30 November 2011
Company information
The full name of the parent company is Petrogrand AB (publ). It is a public
limited company with head offices in Stockholm and the corporate registration
number 556615-2350. The address of the parent company is Birger Jarlsgatan
41A, 111 45 Stockholm. Its telephone number is +46 8 5000 7810 and fax number is
+46 8 5000 7815. Internet web site: www.petrogrand.se
Certified Adviser
Certified Adviser First North: Mangold Fondkommission AB
This report has not been subject to review by the company's auditors.
Stockholm, 31 August 2011
The Board of Petrogrand AB (publ)
For further information, please contact:
Maks Grinfeld, MD, tel; +46 8 5000 7810
Sven-Erik Zachrisson, Chairman of the Board of Directors, tel: +46 8 41 05 45 96
For further information on Petrogrand AB, see the website www.petrogrand.se
Reasonable caution notice: The statement and assumptions made in the company's
information regarding Petrogrand AB's ("Petrogrand") current plans, prognoses,
strategies, concepts and other statements that are not historical facts are
estimations or "forward looking statements" concerning Petrogrand's future
activities. Such future estimations comprise but are not limited to statements
that include words such as "may occur", "concerning", "plans", "expects",
"estimates", "believes", "evaluates", "prognosticates" or similar expressions.
Such expressions reflect the management of Petrogrand's expectations and
assumptions made on the basis of information available at that time.
These statements and assumptions are subject to a large number of risks and
uncertainties. These, in their turn, comprise but are not limited to i) changes
in the financial, legal and political environment of the countries in which
Petrogrand conducts business, ii) changes in the available geological
information concerning the company's projects in operation, iii) Petrogrand's
capacity to continuously guarantee sufficient financing to perform their
activities as a "going concern", iv) the success of all participants in the
group, or of the various interested companies, joint ventures or secondary
alliances, v) changes in currency exchange rates, in particular those relating
to the RUR/USD rate. Due to the background of the many risks and uncertainties
that exist for any oil-prospecting venture and oil production company in its
initial stage, Petrogrand's actual future development may significantly deviate
from that indicated in the company's informative statements.
This report has been prepared both in Swedish and English. In case of any
divergence in the content of the two versions, the Swedish version shall have
precedence.
INTERIM REPORT JANUARY JUNE 2011:
http://hugin.info/138739/R/1543057/472565.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Petrogrand AB via Thomson Reuters ONE
[HUG#1543057]
Unternehmensinformation / Kurzprofil:
Datum: 31.08.2011 - 18:16 Uhr
Sprache: Deutsch
News-ID 61252
Anzahl Zeichen: 21547
contact information:
Town:
Stockholm
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 274 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"PETROGRAND AB: INTERIM REPORT JANUARY-JUNE 2011"
steht unter der journalistisch-redaktionellen Verantwortung von
Petrogrand AB (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
