Wentworth Resources Limited : Half Year Financial Statements and

Kingen
WRL 16.08.2018 kl 08:01 23372

08:00
PRESS RELEASE
16 August 2018

Wentworth Resources Limited

(Wentworth or the Company)

Half Year Financial Statements and MD&A

Wentworth Resources Limited, the Oslo Stock Exchange (OSE: WRL) and London
Stock Exchange (AIM: WRL) listed independent, East Africa-focused oil&gas
company, today announces its results for the quarter and six months ended 30
June 2018.

The following should be read in conjunction with the Q2 2018 Management
Discussion and Analysis and Financial Statements which are available on the
Companys website athttp://www.wentworthresources.com.

Corporate

* Wentworths share of Tanzanian Proved + Probable (2P) reserves valued at
$159.6 million (after-tax NPV10) on 2P reserves of 115.1 Bscf, as at
December 31, 2017 and independently verified by RPS;
* Company continues to progress its Canada to UK re-domicile and Oslo Børs
delisting plans;
* UK based management team in place following relocation of corporate
headquarters from Calgary, Canada to London, UK. CFO Katherine Roe
appointed April 1, 2018; CEO Eskil Jersing appointed June 25, 2018.

Financial

* Achieved milestone Mnazi Bay gas sales revenue of $10.79 million, 112%
higher compared to H1 2017 of $5.10 million;
* Improved EBITDA by 229% to $4.18 million compared to H1 2017;
* Net loss of $6.5 million (H1 2017: $1.66 million), including a non-cash
deferred tax expense of $8.68 million;
* Cash and cash equivalents on hand of $4.04 million (December 2017: $3.75
million) as at June 30, 2018;
* Working capital of $15.45 million (December 2017: $15.14 million);
* Reduced outstanding long-term loans by $2.67 million during the first half
of 2018;
* Carrying value of long-term loans $13.11 million (December 2017: $15.90
million);
* Development capital expenditures of $0.69 million on field infrastructure
(tie-in) improvements in the Mnazi Bay Concession in Tanzania;
* Exploration capital expenditures of $0.98 million on the Tembo Appraisal
License in Mozambique;
* G&A expense of $5.15 million including non-recurring expenses $2.92 million
and recurring G&A of $2.23 million (H1 2017: $2.01 million);
* Non-recurring expenses includes, management re-structuring costs of $0.83
million comprising Calgary employee severance and travel expenses related
to corporate re-structuring; redomicile costs of $0.34 million comprising
consultancy, legal and professional charges and; Tanzanian tax assessments
of $1.75 million for the years of 2013 to 2016.

Operational

Tanzania

* Average gross daily gas production for the period increased 115% to 79.3
MMscf/d from 36.9 MMscf/d in H1 2017; above current annual 2018 guidance of
65-75 MMscf/d.
* Exited H1 2018 with a new high daily gas production rate of 89 MMscf/d;
* Production ramp up due to Kinyerezi-I and Ubungo-II power stations
operating at near full capacity, commissioning of the Kinyerezi-II
gas-fired power station during Q4 2017, increasing growth in demand from
Industrial customers and lower quantities of gas supplied by industry
competitors;
* Low operating expense costs of $ 0.43 / Mscf (H1 2017: $1.16 / Mscf)
leveraging increased production volumes;
* Received total cash payments of $12.97 million from gas sales and recovery
of long-term government receivables during the first half of 2018;
* Regular monthly payments for gas sales continue to be received. As at June
30, 2018 six invoices for gas sales to TPDC were outstanding, with the
increase in receivables being accounted for by the increase in gas sales in
the outstanding months. Post June 30, 2018, TPDC has paid three invoices.

Mozambique

* A 12-month extension of the Tembo Appraisal License was granted by
Instituto Nacional de Petroleo (INP) on June 16, 2018;
* During the first six months of 2018 above ground security continued to be a
concern, especially in the Mocimboa da Praia and Palma regions. The Company
continues to monitor the situation;
* Wentworth continues to seek a risk sharing partner, whilst in parallel
advancing its technical studies, with a focus on commercial and
monetisation options. Work continues on a subsurface review on materiality
thresholds, reservoir properties and economic flow rate potential.

Eskil Jersing, Chief Executive Officer, commented:

The first half of 2018 has seen Wentworth make material progress on Mnazi
Bay
Production growth, receipt of revenues and long term receivables,
deleveraging of our balance sheet and redomicile of the Company to the UK. In
particular, we have exited Q2 2018 with milestone production of 89 MMcf/d on
Mnazi bay. Further, we have fully transitioned the Management team from
Calgary to the UK and continue to make strides towards a simpler, cheaper,
efficient and more robust platform for growth.

We have a strong and empowered team across the Company, all working
diligently
on maximising the value of our assets and towards a leaner operating model. I
look forward to continuing to help unlock the latent value in our core Mnazi
Bay asset and sharing progress on our path to value with all our
shareholders.
Redigert 21.01.2021 kl 09:33 Du må logge inn for å svare
d12m
16.08.2018 kl 08:25 10425

Det var en solid skattesmell. Så ikke selskapet tidligere at de hadde tro på at det ikke ville bli sånn? Vann på møllen til kritikerne, dette
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare

Det har vært en del snakk om at ledelsen ikke kunne kjøpe aksjer grunnet inside info. Men er ikke kunnskapen om skattesmell også inside info som gjør insidekjøp lite fristende?
Det ser også ut til at det fortsatt er store beløp i manglende betaling for 1 halvår.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
Mdg1
16.08.2018 kl 08:33 10386

De sa vel tidligere at de ikke trodde de ville trenge å betale kravet. Nå har de i alle fall ført pengekravet i h1 2018. Så har vi flyttekostnader i tillegg som gjør at de kommer ut i minus. I forhold til cash har de allikevel klart å øke den litt selv med skattekrav, flytting og 2,67 m$ i nedbetaling på lån. I H2 får vi gå ut ifra at flytteutgiftene blir minimale, og det blir ingen skattekrav. I tillegg øker leveransen ytterligere. Men, de har i alle fall ført nesten 10m$ i utsatte skattekrav dette halvåret om man tar med de 1,25m$ i utsatt skatt fra 2013-2016
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
SoriaMoria
16.08.2018 kl 08:34 10690

Sett bort fra baksmellen gikk vi altså med 2,2 $ millioner i pluss. I tillegg var det en del utgifter knyttet til flyttingen. Nesten 3 millioner $ tilknyttet flyttingen.

Altså et bra halvår når vi ser bort fra baksmellen og engangskostnader. Og herfra og utover vil inntektene bare øke, hvis gassleveransene fortsetter i dette tempoet.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
d12m
16.08.2018 kl 08:41 10643

Ligner på Tottenham, dette.. det er alltids neste kvartal/halvår

Men nå er det vel håp om at det blir bedre tider.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
Kingen
16.08.2018 kl 08:56 10560

Det kan jo være at de tar høyde for skattekostnaden nå, men at kostnaden ikke er betalt enda.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
OzSurfer
16.08.2018 kl 08:57 10549

40S - i møtet med norske aksjonærer presiserte de jo dette. Betalingen har jo ligget på etterskudd i et år nå, og det er hele tiden de siste månedene som ikke er betalt.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
OzSurfer
16.08.2018 kl 08:57 10535

40S - i møtet med norske aksjonærer presiserte de jo dette. Betalingen har jo ligget på etterskudd i et år nå, og det er hele tiden de siste månedene som ikke er betalt.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
OzSurfer
16.08.2018 kl 08:58 10510

40S - i møtet med norske aksjonærer presiserte de jo dette. Betalingen har jo ligget på etterskudd i et år nå, og det er hele tiden de siste månedene som ikke er betalt.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
icebear
16.08.2018 kl 08:58 10498

What are non cash expenses?

Non cash expenses appear on an income statement because accounting principles require them to be recorded despite not actually being paid for with cash. The most common example of a non cash expense is depreciation, where the cost of an asset is spread out over time even though the cash expense occurred all at once.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
Mdg1
16.08.2018 kl 09:00 10466

De fikk betalt 16,7m$ i første halvår, så da kan man vel lett regne seg frem til om man faktisk har betalt eller ikke. Og ut fra det jeg ser har de faktisk betalt pengene, eventuelt låst dem slik at de i alle fall ikke inngår i cash.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
joergen
16.08.2018 kl 09:01 10438

Tanesco betalte ned 14 MUSD på gjelden til ORCA i Q2 (fra 74 til 60). Og dette fortsetter i Q3. Penger som ellers hadde gått til Wentworth?
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare

Jeg vet, men det å innfri med skattebetalinger og samtidig akseptere manglende innbetalinger er jo på en måte en kunstig måte å gjøre et regnskap urettferdig dårlig på.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
brumlemann
16.08.2018 kl 09:09 10315

Skattekostnaden er hovedsak en bokføringssak, og er gjort etter krav fra myndighetene.
- i følge note 19 handler det i realiteten om for det meste at de hadde aktivert utsatt skattefordel på tilsammen 30 mill men at skattefordelen nå er redusert til 22 mill..
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Turbon
16.08.2018 kl 09:09 10298

Det ser ikke helt lovende ut...
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
Mdg1
16.08.2018 kl 09:10 10265

De har vel fått 5,9m$ I tilbakebetalinger. Det er vel som forventet. Tror Eskil benytter seg av fallet idag til å kjøpe seg inn. Han burde i alle fall det.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
brumlemann
16.08.2018 kl 09:37 10111

det positive er at de har doblet salget, tatt kostnader i forbindelse med flytting og for å bli kvitt personale i Calgary og kvittet seg med rentebærende gjeld. Og at inntektene kommer til å stige videre.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
Philippe
16.08.2018 kl 09:39 10079

Decrease of deferred tax assets has no cash effect today. This is something the company would have used in the future when it would need to pay income tax.
More interesting row in todays income statement for me is the "Tanzanian withholding tax costs (1,750) ". It has been clarified that it is a cost for Tanzanian tax assessments of $1.75 million for the years of 2013 to 2016. If it is purely tax assessment cost (such as consultation cost) then it is certainly very high.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare

The TRA issued an adjusted assessment certificate for the sum of $1.75 million (Tshs 3.98 billion) to WGL.
The amount comprises of $1.01 million (Tshs 2.90 billion) of unpaid withholding taxes, employment taxes,
value added tax and stamp duty plus interest and penalties totaling $0.74 million (Tshs 1.69 billion) and is
included in the statement of net loss and comprehensive loss.
Management has applied to TRA for an interest and penalties waiver of the $0.74 million (Tshs 1.69 billion)
and has proposed a payment arrangement for the principal taxes of $1.01 million (Tshs 2.90 billion) of which
$0.22 million (Tshs 500 million) was paid in June 2018.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
Mdg1
16.08.2018 kl 10:16 9877

Jeg savner ca 7m$ i cash. De har fått betalt 16.2m$ i H1 og har utgifter på til sammen 9.5m$. Dette uten at de har mer penger på konto.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
OzSurfer
16.08.2018 kl 10:21 9836

Alldri kjekt å måtte betale mer skatt enn hva man hadde sett for seg selvfølgelig, men dagens reaksjon i markedet er overreaksjon de luxe. Rimelig sikker på at det er aksjonærer som kun har lest overskriften som selger. Vil tro SC benytter muligheten til å øke nå.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
ken-guru
16.08.2018 kl 10:26 9806

Noen som er overrasket over det elendige resultatet? Det er alltid unnskyldninger for ditt og datt. Uansett, så er snart selskapet historie på Oslo Börs. Det positive opp i dette er at da slipper man at flere naive sjeler bli lurt inn i selskapet. Aksjen er i ferd med å bryte 2,60 kr på vei nedover nå. Jeg har sagt at vi får kurser rundt 2 kr. Vi närmer oss nå.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
icebear
16.08.2018 kl 10:34 9881

Dette får ikke mye oppmerksomhet

• Improved EBITDA by 229% to $4.18 million compared to H1 2017;
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare

Det ser ud som om at Juni indbetalingen ikke er blevet regnskabsført (Måske blev den først modtaget d. 2 July), da der rigtigt nok samlet set er modtaget 16,1m$ i løbet af 1 halvår. Passer godt nok med Juni indbetaling på 3,1 og rapporteret cash payments for knap 13m$

- Received total cash payments of $12.97 million from gas sales and recovery of long-term government receivables during the first half of 2018;

Husk at der er blevet nedbetalt gæld for 3,7 mUSD, så det burde stemme.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
Jagt
16.08.2018 kl 10:48 9810

Jeg også har 16,2 i mine beregninger men det står i rapporten at de har fått 12,97 inn. Lite avvik der eller så forstår jeg det feil
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare

Ypperlig kjøpsanledning for Jersing og Roe i dag. Forventer børsmelding ila de neste 48 timene.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
Yzf R1
16.08.2018 kl 10:57 9755

Tror d er en god kjøpsannledning i dag
Uttalelse fra malcy

Wentworth Resources

Interims from WRL this morning which as usual only reflect backward facing numbers and with so much going on at the company it is more than ever the future that counts under new management team of Eskil Jersing and Katherine Roe. EBITDA improved by 229% to $4.18m compared to 1H 2017 and with cash of $4.04m and a reduction of long term loans by $2.67m the financial position is strong enough.

Average daily gross production from Tanzania was up 115% to 79.3 MMscf/d and the quarter exited at a rate of 89 MMscf/d. More importantly they are getting paid, cash payments if $12.97m from gas sales and recovery of long-term government receivables came in the first half.

As I discussed in my recent note work in Mozambique is being assessed with regards to above ground security and farm-out and monetisation options. The next few months will provide an insight into the new management team’s progress but I am confident that the value in WRL will be confirmed in due course.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
16.08.2018 kl 11:14 9694

Subsequent to June 30, 2018, TANESCO has paid three months of invoices relating to the outstanding balance at June 30, 2018, totaling $0.50 million (inclusive of the Company’s share of the TPDC receivable amount relating to this gas sale).

Subsequent to June 30, 2018, TPDC has paid $9.26 million net to Wentworth (inclusive of the Company’s share of the TPDC receivable amount relating to this gas sale) for the January, February and March 2018 gas sales invoices.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
OzSurfer
16.08.2018 kl 11:28 9652

Litt perspektiv: WRL må altså på et tidspunkt i fremtiden betale $8.68 million mer i skatt. Det tilsvarer ca. 2 mnd. inntekt med dagens produksjon, og produksjonen vil fortsette å øke i fremtiden. Fortjener det dagens reaksjon i markedet. Til sammenligning så blir "Improved EBITDA by 229% to $4.18 million compared to H1 2017" mottatt med et skuldertrekk...
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
16.08.2018 kl 11:34 9624

Resultatet skuffet til ihht forventninger, og reaksjonen er da ikke unik for WRL. Så er spørsmålet om det er en overreaksjon eller ikke. Det er vel nå Eskil skal put his money where his mouth is.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
MacB
16.08.2018 kl 11:36 9610

Det det ser ut til at junibetalingen ikke er kommet med i H1, mao blir det tillegg til H2. Betaling for H2 $21mil. Forutsetter samme utgifter for H2 som H1 ca $ 11 mil. Vil medføre et overskudd for året på ca 4 mill.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
icebear
16.08.2018 kl 11:48 9568

Om selskapet hadde hatt kvartalsrapportering hadde en del vært rettet opp ganske snart. Ellers har de alltid hatt CC samme dag. Ikke nå. Det er mye jeg ikke forstår lenger.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
Mdg1
16.08.2018 kl 11:54 9541

Begynner å lure på om de har gitt litt lite informasjon for at kursen skulle reagere negativt og Eskil med flere kunne få billige aksjer. Det er tydelig at betaling for juni ikke var på konto før i juli. Dermed er det regnskapsmessig riktig at den føres i h2. Så har de ikke tatt med nedbetaling av kortsiktig gjeld på 1m$, og heller ikke sagt noe om at junibetaling blir ført i H2. De har også ført fremtidig skattetap i H1. Selskapet vil uansett ikke betale skatt på flere år enda, men vil nå måtte betale litt tidligere enn det vi trodde før dagens rapport.
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
Outsider
16.08.2018 kl 13:10 9365

Er det noen som har fått med seg hvorfor utsatt skattefordel blir redusert med 8,68 mill USD? Årsaken?
Dette betyr selvsagt ikke noe for selskapets økonomi akkurat idag, men de kommer hurtigere i skatteposisjon og det er negativt - ikke minst for de av oss som ønsker å sitte her og motta utbytte fra 2021 - 2031.....
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
Outsider
16.08.2018 kl 13:21 9333

Selskapets situasjon er faktsik meget bra. Med halvårlig EBITDA på 4,2 dvs 8,4 for året (i tillegg har de en rekke engangskostnader som reduserer EBITDA). Ser vi dette opp mot netto rentebærende gjeld på 13 mill - 4 mill i cash = 9m USD får vi Netto Rentebærende gjeld/EBITDA = 1,1 som er meget sterkt.
Med stabil produksjon i området 100 mm og engangskostnadene ute blir normalisert EBITDA fort det dobbelte av det som vises idag... dette bygger seg opp til en interessant utbyttemaskin..
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare

Angående skatt. Skattemyndigheterna godkänner inte en nedskrivning (impairment) från 2014. Men det betyder att bolaget framöver bör få normala skattemässiga avskrivningar på denna tillgång, så cash-flow mässigt får det endast en marginell betydelse om bolaget kommer i position att betala skatt innan denna tillgång är fullt avskriven.
"The TRA has reassessed the 2014 income tax filing of WGL and included in taxable income an impairment
reversal of $23.81 million. The Company has accepted the assessment and does not plan to challenge it. The
impact of this reassessment is a non-cash reduction of the Company’s deferred income tax asset of $7.14
million. The TRA has also denied $4.43 million of deductions in the 2014 and 2015 income tax filings of WGL in
respect of interest and withholding tax. The Company has accepted the assessment and does not plan to
challenge it. The impact of this reassessment is a non-cash reduction of the Company’s deferred income tax
asset of $1.33 million."
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
Outsider
16.08.2018 kl 14:57 9157

Takk for svar HighYield
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
gaudio
16.08.2018 kl 16:37 9010

Brukbart volum idag, innsidekjøp ?
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare
Yzf R1
16.08.2018 kl 17:44 8894

Mozambique Oil & Gas: Sasol Ramps up Investments
Mozambique Resources Post Mozambique Resources Post
42 mins ago

Sasol facilities

Sasol Join CEOS
Sasol joint CEOs Bongani Nqwababa and Stephen Cornell (PHOTO by Duane Daws)
SASOL, South Africa’s integrated energy and chemical company, is investing an undisclosed amount of money but running to “hundreds of millions of Rands” as it intensifies oil and gas exploration in neighbouring Mozambique.

Already Sasol had created more than 3 000 jobs in Mozambique since the giant energy company started operations in this southern African resource-rich nation.

The investment follows discoveries of more oil and gas fields in Mozambique’s northern region, near the border with Tanzania.

Several companies from Britain, France, Japan and the United States have thronged the area but Sasol continues playing leading role in ensuring South African market is well supplied while Mozambique’s industry is also catered for.

In the Rovuma basin, more natural gas reserves were discovered with other industry partners such as America’s Anadarko, Italy’s ENI, ExxonMobil (US), French oil giant Total and UK’s Delonex among others.

Sasol, which is Mozambique’s leading natural gas producing company in provinces such as Inhambane, where over 2,6 trillion cubic feet (tcf) reserves have been discovered, processes the energy products at its central facility in Temane, before transporting the liquefied petroleum gas and oil via an 865 km pipeline to South Africa, with a link to southern Mozambique for domestic consumption.

Alex Anderson, Sasol Head of Group Media Relations, said vast oil and gas discoveries were encouraging, hence the Johannesburg-headquartered company was increasing its investment in Mozambique.

“Our ongoing investment in Mozambique affirms our steadfast commitment to the country. Tens of millions of dollars will be spent in shooting seismic and drilling exploratory wells in these new licenses to increase the hydrocarbon resources of Mozambique for the benefit of its people,” Anderson said.

Responding to questions emailed by CAJ News Africa, he said Mozambique remained firmly at the centre of Sasol’s growth strategy for Southern Africa.

“Together with our partners, we plan to expand the supply resource base through exploring for more gas in the acreage acquired through the fifth Bid Round.”

Sasol is currently concluding the fifth competitive bidding round license negotiations to execute the engineering, procurement, construction and commissioning (EPCCs) for Onshore PT5-C, near the Pande and Temane area in Inhambane Province and Offshore A5-A within Angoche area in Nampula Province.

“In our view, Mozambique remains a prime investment destination and we intend to continue investing in the country,” Anderson said.

He said Sasol recently completed a major drilling campaign in the Production Sharing Agreement (PSA) license area, drilling some nine wells in preparation for oil and gas production from the PSA.

“Further updates will be given during our financial results on 20 August,” Anderson added.

He said Mozambique and South Africa were key gas markets where condensate (light crude oil) is exported to international markets from Mozambique.

Sasol, which initiated its drilling of the first well for its PSA license in May 2016, continues the development of integrated oil, liquefied petroleum gas project adjacent its existing petroleum facility.

The initial first phase of the project included 13 wells and an LPG production facility for an estimated cost of $1,4 billion (R18,9 billion).

“We recognize the positive indicators within the market – inflation reduction, strengthening of the metical and improvements in foreign currency reserves. Sasol wishes to work with the Government of Mozambique to find solutions to address current challenges facing the country.”
Anderson said Sasol aspired to continuously drive mutual value creation in the country, with the move anticipated to ensure Mozambique’s hydrocarbon resources benefited all its 29 million people.

Since inception, over 300 permanent and 3 200 temporary jobs have been created through our operations and projects within the country, he said, adding 92 percent of Sasol employees in Mozambique are local.

“We are training over 460 artisans for the sector, and providing additional vocational training capacity in Mozambique,” Anderson disclosed.

In addition, over 700 community-related jobs were created through the community liaison forum.

“We continue to create shared value in partnership with the Government of Mozambique and our partners through Internship and learnership opportunities created at our Central Processing Plant and South African operations,” Anderson said.source: CAJ News
Redigert 21.01.2021 kl 08:09 Du må logge inn for å svare