PARIS, October 6 Maurel-&-Prom-Results
PARIS, October 6 /PRNewswire-FirstCall/ -- Maurel & Prom published its
first half results report on 29 August 2008 based on the Group's consolidated
financial statements for the period ended 30 June 2008.
Once the statutory auditors completed their review, the Board decided to
make an adjustment to rebook a charge to the first half initially recorded in
the second half. This adjustment in the amount of EUR3.7 million relates to
derivative operations and has an negative impact on the financial result, as
well as the net income as of 30 June 2008, reflecting a net profit of
EUR17.3m (+25% compared to the H12007), instead of EUR21.1m initially
disclosed.
The consolidated financial statements for the period ended 30 June 2008
together with the adjusted items are appended to this press release.
The Auditors' report underlines the following comments: "Without
qualifying the conclusion [of our report], we draw attention to the complex
and structured operations carried out by your company during the first
half-year and described in the notes 8 and 14 to the interim consolidated
financial statements. These operations led your company to book a financial
expense during the first half-year 2008, resulting from marked to market
valuation of these financial instruments as of June 30, 2008. As mentioned in
the notes to the interim consolidated financial statements, these financial
instruments could lead to further financial expenses in the subsequent
reporting periods."
For your information, Maurel & Prom recorded in its accounts a charge of
EUR14.8 million coming from a series of complex and structured operations
initiated by a single individual and performed out of the Group's standards
and procedures. Management's analysis confirms that the additional risk comes
to EUR21m based on the EUR-USD exchange rate at end September 2008. This is
in addition to the EUR14.8m in unrealised losses already recorded in the
first half of 2008. Discussions are still ongoing to reduce the level of this
risk.
Maurel & Prom's current activity report, its consolidated financial
statements and their notes together with the complete statutory auditors'
report on the interim financial report may be viewed on Maurel & Prom's
website (http://www.maureletprom.fr).
Impact on First half 2008 financial statements
Profit & Loss
29
August Final
In EURm 2008 Adjustment version Change
Operating Income86.4 86.4
Gross cost of debt -13.9 -13.9
Income from cash 1.31.3
Net gains or losses on
derivative instruments-33.1 -3.7 -36.811%
Net cost of debt -45.7 -3.7 -49.4 8%
Other interest income and expenses -3.0 -3.0
Financial income -48.7 -3.7 -52.4 8%
Financial income
Income before tax 37.8 -3.734.0 -10%
Income taxes -21.4 -21.4
Net income of consolidated companies16.3 -3.712.6 -23%
Total share in net income of
equity-accounted companies 4.74.7
Net income of consolidated group21.1 -3.717.3 -18%
Balance Sheet
Shareholder'equity 643.6 -3.7 639.8-1%
Non-current provisions 36.8 36.8
Non-current derivative instruments 141.6 141.6
Other non-current liabilities 499.8 499.8
Non-current liabilities678.1 678.1
Current provisions 18.6 18.6
Current derivative instruments 132.13.7 135.8 3%
Other current liabilities 193.0 193.0
Current liabilities343.63.7 347.4 1%
Total liabilities1 665.31 665.3
First half 2008 financial statements
Balance Sheet
Assets
EUR000 Notes 30/06/2008 31/12/2007
Intangible assets 4 538,904 554,922
Tangible assets 5 514,940 389,954
Non-current financial assets 6 100,100 28,216
Investments accounted under
the equity method7 35,838 3,138
Deferred tax assets 15 36,623 22,786
Non-current assets 1,226,405 999,016
Inventories 16,624 7,389
Trade receivables 54,537 52,852
Other current financial assets6 40,380 29,671
Other current assets 45,565 42,615
Income tax receivable151,496 7,074
Derivative instruments82,650 5,430
Cash and cash equivalents10 277,662 699,939
Current assets 438,914 844,970
Total Assets 1,665,319 1,843,986
Liabilities
EUR000Notes 30/06/2008 31/12/2007
Share capital 92,839 92,811
Issue, merger and acquisition premiums 201,174 201,139
Consolidated retained earnings 414,390 52,385
Treasury shares (85,898)(54,296)
Net income, Group share 17,320 766,096
Shareholders' equity, Group share639,825 1,058,135
Minority interests 0 (342)
Total equity:639,825 1,057,793
Non-current provisions11 36,777 30,795
Non-current bonds 12 355,660 336,932
Other non-current loans and borrowings12 14,016 15,754
Non-current trade payables 0 3,624
Non-current derivative instruments 8 141,565 -
Deferred tax liabilities 15 130,105 146,199
Non-current liabilities 678,123 533,304
Current bonds 12 6,542 13,089
Other current loans and borrowings12 11,685 16,145
Trade payables 128,085 107,685
Income tax payable15 3,986 121
Other payables and sundry liabilities 42,679 71,899
Current derivative instruments 8 135,800 22,274
Current provisions11 18,594 21,676
Current liabilities 347,371 252,889
Total liabilities 1,665,319 1,843,986
Income statement
EUR000 Notes 30/06/2008 30/06/2007
Sales176,477 137,052
Other income 7,870 15,911
Purchases and change in inventory(11,381)(12,055)
Other purchases and operating expenses (29,486)(48,105)
Other taxes (5,100) (2,963)
Payroll (15,393)(18,522)
Amortisation and depreciation(42,436)(35,064)
Impairment of exploration and production assets (10,303) (9,567)
Provisions and impairment on current assets (621) (2,930)
Reversals of operating provisions 1,498 2,012
Gains (losses) on sale of assets 16,200 (2,533)
Other expenses (912) (1,665)
Operating income 86,413 21,571
Gross cost of debt (13,948)(14,894)
Income from cash 1,305 3,729
Net gains or losses on derivative instruments(36,799) (5,848)
Net cost of debt (49,442)(17,013)
Other interest income and expenses(2,950) 10,505
Financial income 14 (52,392) (6,509)
Income before tax 34,021 15,062
Income taxes 15 (21,448) (862)
Net income of consolidated companies 12,573 14,200
Total share in net income of equity-accounted
companies 7 4,747 (341)
Net earnings from continuing operations 17,320 13,859
Net earnings from discontinued operations 0 798,247
Net income of consolidated group 17,320 812,106
Net income -- Group share 17,320 812,106
Minority interests 0 0
Earnings per share16
Basic 0.156.80
Diluted 0.135.93
Earnings per share from discontinued operations
Basic 0.006.68
Diluted 0.005.83
Earnings per share from continuing operations
Basic 0.150.12
Diluted 0.130.10
Cash flow statement
EUR000 Notes 30/06/2008 30/06/2007
Consolidated income from continuing
operations before tax42,502 14,721
Net amortisation, depreciation and
provision charges (write backs) 47,548 36,554
Unrealised gains and losses related to
changes in fair value25,607 5,848
Exploration posted to expenses10,859 9,567
Calculated income and expenses in relation
to stock options and similar items 564 537
Other estimated income and expenses 10,669 1,123
Capital gains (losses) on disposals (20,486) 2,533
Share in income of equity-accounted companies 7 (4,747)341
Income from cash 14 (6,734)(11,666)
Cost of gross financial debt 1,785 3,063
Cash flow before tax 103,832 62,621
Tax (13,382)(13,254)
Change in operating working capital (9,383)(33,989)
- Trade receivables (9,368) (5,123)
- Trade payables24,361 (19,893)
- Inventories (9,996) (6,751)
- Other: (14,380) (2,222)
Net cash flow from operating activities 81 067 15,378
Disbursements for acquisitions of tangible
and intangible assets (243 102)(130,008)
Receipts from sales of tangibles and
intangible assets 591 21
Disbursements for acquisitions of financial
assets (unconsolidated securities) 211 (762)
Receipts from sales of financial assets
(unconsolidated securities) 00
Business combination 00
Investments in equity-accounted companies 00
Change in loans and advances granted(72 290) (5,846)
Other cash flows from investing activities (76) 0
NET CASH FLOW FROM INVESTING ACTIVITIES(314 666)(136,595)
Amounts received from shareholders during
capital increases (98) 2,880
Dividends paid (137 135)(143,885)
Receipts from new loans 1 4556,626
Interest paid(1 785) (3,063)
Interest received 6 734 11,666
Loan repayments (4 810) (4,299)
Treasury share acquisitions (31 601) (1,010)
NET CASH FLOW FROM INVESTING ACTIVITIES(167 240)(131,085)
Impact of foreign-currency fluctuations (20 223) (2,018)
Net receipts from activities sold*0 961,820
Net change in cash (421 062) 707,500
Opening cash and cash equivalents 694 307 186,342
Closing net cash and cash equivalents
from sold activities 0
Closing net cash and cash equivalents 10273 245 893,842
Closing net cash and cash equivalents
from sold activities 0
* Net cash flow from operating activities less capital expenditure and
repayment of RBL
Comments
Financial result
The financial result was a loss of EUR52.4 million broken down as follows:
- Interest expenses on OCEANE bonds of EUR12,187K for first
half 2008 up from EUR11,832K for first half 2007;
- A net loss of EUR36.8m on derivative instruments :
- A latent loss of EUR33.1 million including:
- EUR10.4 million for swaps on crude corresponding to a hedge on
2,250b/d. Starting on April 1st, this hedge is allocated to the
Colombian production;
- EUR21.1 million on foreign exchange options broken down in EUR6.3
million on common cash management, and EUR14.8 million coming from
a series of complex and structured operations initiated by a single
individual and performed out of the Group's standards and
procedures. Management's analysis confirms that the additional risk
comes to EUR21m based on the EUR-USD exchange rate at end September
2008. This is in addition to the EUR14.8m in unrealised losses
already recorded in the first half of 2008. Discussions are still
ongoing to reduce the level of this risk.
- A loss of EUR3.7m from derivatives transactions undertaken
in the first half 2008 that were closed out in July 08.
- Exchange losses on foreign currency cash holdings totalled EUR17.2m
owing to the unfavourable EUR-USD exchange rate and the fact that some
of our suppliers have adapted their billing procedures to this new
situation by no longer invoicing in USD.
- Cash investment income of EUR1.3 million and other income of
EUR14.3 million which include:
- interest income on term deposits of EUR8.7 million;
- EUR3.2 million in gains related to oil trades.
Consolidated net income
Consolidated net income from continuing activities amounted to
EUR17.3 million, up 25% over first half 2007.
This increase can be explained by:
- A rise in operating income;
- A deteriorated financial result;
- The first time consolidation under the equity method of
Lagopetrol in Venezuela;
- Change in the income tax charge.
Caroil posted first half 2008 consolidated net income of EUR6.6 million.
Balance sheet
The balance sheet total was EUR1,665.3 million down from EUR1,844.0
million as at 31 December 2007.
The change in non-current assets can be explained by:
- Operating capital expenditures totalling EUR163 million, primarily
intended for Onal (67%) and Ocelote (20%) fields, and for Caroil (8%);
- Exploration capital expenditures of EUR79.0 million;
- Partial relinquishment of EGOC of EUR(40.0) million;
- EUR20.8 million increase in assets due to accounting for
Lagopetrol under the equity method;
- Exchange differences on tangible and intangible assets of
EUR(71.2) million.
Group shareholders' equity totalled EUR639.8 million down from EUR1,057.8
million as at 31 December 2007 due to a EUR(207.7) million adjustment on
derivative instruments as at 30 June 2008, a dividend amounting to EUR(137.1)
million, the net income of the period, exchange losses of EUR(59.8) million
and EUR(31.6) million of treasury shares bought back.
Cash flows
First half 2008 Group cash flow before tax in was EUR103.8 million.
Net cash flow from operating activities was EUR81.1 million.
At 30 June 2008, Maurel & Prom's net cash amounted to EUR273.2 million,
excluding EUR72 million accounted in non-current assets, down EUR421.1
million compared to 31 December 2007. This change can be explained by:
- The activity of the period: increase in cash flow from
operations for EUR81 million;
- A strong investment effort:
- Exploration expenses of EUR79 million;
- Development capex of EUR145 million;
- Oil services investments of EUR18 million.
- The shareholder payback:
- Dividend payment for EUR137 million;
- Share buy back for EUR32 million
- EUR(72) million in outflows for margin calls on financial instruments
paid temporarily to banks under the crude hedging transactions
(based on the market value of those instruments as at 30 June 2008).
This press release may contain forward-looking statements with respect to
the financial condition, results of operations, business, strategy and plans
of Maurel & Prom. By their nature, forward-looking statements involve risks
and uncertainties because they relate to events and depend on circumstances
that will or may occur in the future. These forward-looking statements are
based on assumptions which we believe are reasonable but that could
ultimately prove inaccurate and are subject to a number of risk factors,
including but not limited to price fluctuations in crude oil; exchange rate
fluctuations; uncertainties inherent in estimating quantities of oil
reserves; actual future production rates and associated costs; operational
problems; political stability; changes in laws and governmental regulations;
wars and acts of terrorism or sabotage.
Maurel & Prom is listed on Euronext Paris - compartment A - CAC mid 100
Index
Isin FR0000051070 / Bloomberg MAU.FP / Reuters MAUP.PA
Agenda 2008
Tuesday November 4, 2008 - Third Quarter Sales 2008
Press releases to be distributed on each of the abovementioned days
before the markets open
Investor Relations
Laurence Borbalan
Tel. : +33-1-47-03-68-58
Mob. :+33-6-79-44-66-55
Laurence.Borbalan@fd.com
Press Relations
Michelle Aubert
Tel. : +33-1-47-03-68-61
Mob. :+33-6-85-34-45-94
Michelle.Aubert@fd.com
SOURCE Maurel & Prom
