RNS Number : 4814B
Saffron Energy PLC
04 April 2017
 

 

4 April 2017

 

Saffron Energy Plc

("Saffron" or the "Company")

 

Northsun Italia 2016 Results

 

Saffron Energy plc, the AIM listed natural gas producer and explorer with interest in northern Italy (AIM: SRON), announces the financial results for Northsun Italia Spa ("NSI") for the financial year to 31 December 2016. Saffron acquired 100% of NSI in January 2017 and subsequently completed an IPO of Saffron Energy on AIM on 24 February 2017.

 

Investors should note that a number of restructuring transactions mentioned in the document were completed in the period from December 2016 to February 2017 and these are set out in detail in the Company's AIM Admission Document.

 

During the period:

-    In September 2016, NSI entered into a construction contract for the Bezzecca gas field

-    Production from the Sillaro gas field for 2016 was 4.4m cubic meters (gross) and, in December 2016, NSI acquired the remaining 35% of the Sillaro gas field it did not already own.

 

Subsequent to 31 December 2016, NSI has:

-    Been acquired by Saffron, which then completed a £2.5m capital raising on 24 February 2017

-    Completed construction of the Bezzecca gas field

-    Extended its offtake agreement with Shell Italia to 1 October 2018

-    Repaid approximately €470k of short term shareholders' loans used to advance construction of Bezzecca and Sant'Alberto

 

Chief Executive Officer of Saffron Energy, Michael Masterman commented: "The results for NSI in 2016 reflect the now historic fully completed restructuring and associated asset value alignments that had to be undertaken in preparation for the successful IPO of Saffron Energy which was completed in February. Revenues and cash flows are expected to increase substantially with Bezzecca commencing production in April 2017 and Sant'Alberto at the end of 2017. Saffron is now in excellent shape going forward."

 

A full copy of the Northsun Italia Consolidated Financial Statements for the year ended 31 December 2016 is available on the Company's website at www.saffronenergy.co.uk and an extract of the Consolidated Financial Statements for the year ended 31 December 2016 is presented below.

 

Please click to view the Saffron Energy AIM Admission Document - https://saffronenergy.co.uk/investors/aim-rule-26/

 

About Saffron Energy PLC

For more information, please visit www.saffronenergy.co.uk or contact the following:

Saffron Energy plc

44 (0) 7791288381

Michael Masterman, CEO

info@saffronenergy.co.uk



Grant Thornton UK LLP (Financial & Nominated Adviser)

44 (0) 207 383 5100

Colin Aaronson


Samantha Harrison


Harrison J Clarke




Turner Pope Investments (TPI) Ltd (Broker)

44 (0)2036214120

Ben Turner 

info@turnerpope.com 

James Pope




Cassiopeia Services PR/IR

44 (0) 7949690338

Stefania Barbaglio

Stefania@cassiopeia-ltd.com

 



 

NORTHSUN ITALIA S.P.A

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2016

 


Note:

31 December 2016

31 December 2015

Assets




 

Non-Current Assets

Inventory

Other assets

Deferred tax assets

Property, plant & equipment

Resource property costs

7

10

11

732,801

138,378

1,994,913

2,337,111

5,602,367

732,801

30,378

1,488,853

1,925,314

6,884,618

Total non-current assets


10,805,570

11,061,964

Current Assets

Cash and cash equivalents

Trade and other receivables

8

9

107,207

240,832

2,409,801

1,198,542

Total current assets


348,039

3,608,343

 

Total assets


11,153,609

14,670,307





Equity and liabilities




 

Equity

 

Issued capital

Reserves

Accumulated losses

15

15

 

19,179,160

11,340,407

(27,798,703)

15,245,323

386,916

(21,832,754)

Total shareholders' equity


2,720,864

(6,200,515)

Non-Current Liabilities




Intercompany loans

Provisions

14

13

1,446,072

4,961,907

11,610,863

3,615,822

Total non-current liabilities


6,407,979

15,226,685

Current Liabilities

Trade and other payables

Short term borrowings

Provisions

12

14

13

1,627,272

345,677

51,817

5,503,253

-

140,884

Total current liabilities


2,024,766

5,644,137

Total Liabilities


8,432,745

20,870,822

Total shareholders' equity and liabilities


11,153,609

14,670,307





NORTHSUN ITALIA S.P.A

STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2016

 

 


Note:

31 December 2016

31 December 2015

Revenue

6

701,339

1,704,083

Operating costs


(439,544)

(762,016)

Depreciation and amortisation expense

11

(591,258)

(1,024,660)

Gross loss


(329,463)

(82,593)

 

Other income


170,088

164,694

 

Employee benefits

Depreciation expense

General and Administrative expenses

Impairment

Exploration costs expensed

Loss on sale of project

 

3

4

5

11

11

 

 

(722,893)

(10,482)

(605,919)

(4,615,215)

(287,286)

-

(996,381)

(13,819)

(669,362)

(1,345,624)

(28,854)

(822,203)

Operating loss


(6,401,170)

(3,794,142)

 

Finance income

Finance expense


469

(71,308)

121

(80,924)

Net finance expense


(70,839)

(80,803)

 

Loss before income tax expense

 

Income tax  benefit / (expense)

7

 

(6,472,009)

 

506,060

(3,874,945)

 

 

(153,420)

 

Loss for the year


(5,965,949)

(4,028,365)





Other comprehensive income


-

-

Total comprehensive loss for the year


(5,965,949)

(4,028,365)









 

 



 

NORTHSUN ITALIA S.P.A

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2016

 

 


Issued capital

Reserves

Accumulated Losses

Total equity

 

 

As at 1 January 2015

15,245,323

386,916

(17,804,389)

(2,712,150)

Total comprehensive loss for the period:





Loss for the period

-

-

(4,028,365)

(4,028,365)

Other comprehensive income

-

-

-

-

Total comprehensive loss for the period

-

-

(4,028,365)

(4,028,365)

Transactions with owners recorded directly in equity:





Contributions by owners

-

-

-

-

At as 1 January 2016

15,245,323

386,916

(21,832,754)

(6,200,515)

Total comprehensive loss for the period:





Loss for the period

-

-

(5,965,949)

(5,965,949)

Other comprehensive income

-

-

-

-

Total comprehensive loss for the period

-

-

(5,965,949)

(5,965,949)

Transactions with owners recorded directly in equity:





Contributions by owners

14,887,328

-

-

14,887,328

Transfer to reserves

(10,953,454)

10,953,454

-

-

As at 31 December 2016

19,179,197

11,340,370

(27,798,703)

2,720,864

 

 



 

NORTHSUN ITALIA S.P.A

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2016

 

 


31 December 2016

31 December  2015




Cash flows from operating activities



Receipts from customers

1,103,291

1,664,214

Payments to suppliers and employees

(2,610,165)

(1,538,566)

Interest received

469

121

Interest paid

(2,266)

-




Net (cash used in) / generated from operating activities

(1,508,671)

125,769




Cash flows from investing activities



Payments for non-producing property plant and equipment

-

(6,523)

Receipts for resource property costs from joint operations partners

521,741

64,572

Proceeds from sale of resource property project

-

1,850,000

Payments for resource property costs, inventory and production plant and equipment

(764,721)

(1,092,610)







Net cash generated from / (used in) investing activities

(242,980)

815,439




Cash flows from financing activities



Proceeds from borrowings

1,745,820

674,549

Repayment of borrowings

(2,296,763)

(633,499)




Net cash (used in) / generated from financing activities

(550,943)

41,050




Net (decrease) / increase in cash and cash equivalents

(2,302,594)

982,258




Cash and cash equivalents at 1 January

2,409,801

1,427,543




Cash and cash equivalents at 31 December

107,207

2,409,801

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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