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Financials

Unaudited Full Year Financial Statement and Dividend Announcement for the Year Ended 31 December 2017

Financials Archive

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Consolidated Statement of Comprehensive Income

Consolidated Statement of Comprehensive Income

Balance Sheet

Balance Sheet

Review of Performance

(A) INCOME STATEMENT/STATEMENT OF COMPREHENSIVE INCOME

Turnover Analysis

Total revenue for the Group reported was US$0.056 million for the financial year ended 31 December 2017.

This revenue came solely from the Group’s Exploration and Production (E&P) activities in Kampung Minyak (“KM”) Oil Field.

FY2017 revenue for Exploration and Production (E&P) decreased by 91% as compared to that of FY2016. This was due to the cessation of production at the KM Oil Field since February 2017.

Cost and Earning Analysis

The decrease in E&P activities throughout FY2017 brought about a proportional decrease in costs and expenses.

Production expenses fell by US$1.216 million or 89% for FY2017 in comparison with FY2016.

Staff costs were lowered by 43% for FY2017 as compared to previous year.

The total loss for FY2017 was US$9.605 million.

The loss decreased by 36% compared to FY2016 mainly due to lower impairment charges in 2017 compared to the previous year.

(B) BALANCE SHEET/STATEMENT OF FINANCIAL POSTION

Assets & Liabilities

The current assets of the Group as at 31 December 2017 decreased by US$3.569 million as compared to 31 December 2016. This was largely due to a net decrease in cash and short-term deposits and trade and other receivables.

Amounts due from associate decreased by US$0.361 million as at 31 December 2017 as compared to 31 December 2016. This was due to an impairment of amounts due from an associate that was offset by funding provided to the associate during the year.

The non-current assets decreased by US$4.671 million in FY2017 compared to FY2016. This was mainly due to the write off of KM Oil Field properties amounting to US$3.020 million in FY2017 as well as the impairment loss on investment in an associate of US$1.280 million.

Investment in associates decreased by US$1.301 million in FY2017 compared to FY2016 due to impairment of the investment in an associate.

As the Group is still working towards an eventual full closure of the KM Oil Field, the contract deposit pertaining to KM Oil Field and provisions for oil well decommission will not be discharged until full closure is achieved.

(C) CASHFLOW STATEMENT/STATEMENT OF CASHFLOWS

Cash Flow & Working Capital

Cash and cash equivalent position (inclusive of exchange effects) decreased by US$2.342 million for FY2017 as compared with FY2016.

Cash used in operating activities was US$2.296 million for FY2017 as compared to US$4.781 million for FY2016. This was mainly contributed by the cessation of KM Oil Field operation which resulted in decreases of production expenses and staff costs.

Cash used in financing activities was US$0.047 million FY2017 as compared to cash generated from financing activities of US$6.088 million in FY2016 due to a US$0.680 million payment of contract deposit and a US$0.640 million increase in amounts due from associates that were offset by the US$1.273 million received from the share placement during the year.

Update on Use of Proceeds from the Placement and Convertible Loans

From the placement and convertible loans issued between 2H2013 and 1H2015, the Company managed to raise US$37.46 million in total. The amount from the proceeds have been fully utilized as at 31 December 2017. The list below summarises the usage of these proceeds and they are in accordance with the purpose on the placement and convertible loans.

For the placement of shares in 2H2017, the Company managed to raise US$1.27 million in total. The amount from the proceeds unutilized as at 31 December 2017 amounted to US$0.73 million. The list below summarized the usage of the proceeds and they are in accordance with the purpose of share placement.

Commentary

KM Oil Field

Weak economic climate in the Indonesian Oil Exploration sector continued in 2017. The reason the Group had ceased production since February 2017 was two-fold, i) to further limit losses, and ii) to diversify its revenue source. The Group had decided to surrender the KM Oil Field back to PT Pertamina EP. Notwithstanding, the Group will still continue to look for new opportunities in the oil and gas service sector.

Oil field services and trading

The Group’s subsidiaries UniTEQ and Acrux ceased operations in early 2017 and were struck off in November 2017. PT. Prima Petrolium Service (PPPS, or formerly known as PT. Kampung Minyak Energy) is in progress of being sold to an individual subject to approval being obtained as the Group intends to hive off non-profitable Oil and Gas business units. However, the Group still retains minority ownership of the GKM Oil Field in Indonesia. Notwithstanding, the Group will still seek new profitable business opportunities in the Energy sector.

New business venture with Malaysia listed company

In 2017, the Group entered into a conditional shareholder’s agreement with a Malaysian company, PRG Construction Sdn Bhd, a wholly-owned subsidiary of PRG Holdings Berhad which is a public limited liability company listed on the Main Market of Bursa Malaysia Securities Berhad. The purpose is to seek partnership via a joint venture company for housing development contracts in Malaysia.

The Joint Venture (“JV”) Company, Premier Mirach Sdn Bhd was incorporated in Malaysia to undertake housing development contracts in Malaysia.

On 20 October 2017, the first housing project situated in the Malaysian State of Perak with a contract value of RM$20.5 million was awarded to JV Company Premier Mirach Sdn Bhd.

On 1 November 2017, JV Company Premier Mirach Sdn Bhd had entered into a conditional partnership agreement with another Malaysian company, Pacific Vintage Sdn Bhd, to jointly develop and construct individual residential unit of townhouses in West Malaysia.


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