Press Release
29 July
2019
This announcement is deemed to contain Inside Information as
defined under the Market Abuse Regulations n. 596/2014
Cadogan Petroleum
Plc
(“Cadogan” or the
“Company”)
Proger’s financial
results for 2018
Cadogan Petroleum plc (“Cadogan”), an independent, diversified
oil & gas company listed on the main market of the London Stock
Exchange is pleased to report that Proger’s 2018 full year
financial results confirm strong growth. EBITDA saw a 24%
year-on-year increase, to €11.3 million and pre-tax profit
increased to €6.1 million, a nearly 4% year-on-year increase,
notwithstanding a €1.5 million of contributions to reserves.
Cadogan provided Proger’s parent company with a €13.4m loan in
February 2019 to subscribe a capital
increase in Proger. Proger is an international, Rome based, engineering company which offers
services in a range of fields, including oil & gas. The
agreement also provided an option to convert the loan into an
anticipated indirect 22% equity interest in Proger, via a capital
increase. The option offers Cadogan’s shareholders exposure
to Proger’s growth, in addition to income, synergies and
diversification, in-line with Cadogan’s strategy.
Following the capital increase taking place, Cadogan’s indirect
interest in Proger is now anticipated to increase to ca. 25% and
the 2018 financial results would increase the value of Cadogan’s
indirect participating interest, should the Company’s shareholders
approve the exercise of the conversion option.
The loan, which was executed in February
2019, carries an interest of 5.5% per year. The funds from
the loan are being used by Proger to finance their business plan,
which is targeting a material increase in EBITDA over the next 5
years.
Proger’s financial results for 2018 were approved by its
shareholders on July 26, having first
been audited by Ernst & Young. The results will now be filed at
the Italian Chamber of Commerce and Industry, from where they can
be downloaded.
Guido
Michelotti, Cadogan Petroleum CEO, commented:
“Proger’s 2018 results confirm that
the convertible loan agreement offers exposure to realizable growth
at a balanced level of risk to Cadogan shareholders; it also
diversifies Cadogan’s portfolio, which is a key pillar of our
strategy. We look forward to a positive 2019, with Proger
delivering on its business plan, using the financial resources made
available to them at the beginning of this year”.
About
Cadogan is an independent, diversified oil and gas company,
which operates exploration and production licenses in Western Ukraine, conducts gas trading
operations, and provides services to E&P companies.
Proger is a Rome-based,
international company that offers state of the art engineering and
management expertise in a broad range of fields, spanning from oil
& gas, to renewable energy, infrastructure and security. Proger
has amongst its shareholders SIMEST, the company of the Cassa
Depositi e Prestiti Group that specializes in supporting Italian
companies which want to grow on the global market.
The convertible loan agreement was executed in February
this year, has a principal of €13,385,000, is secured and carries
an interest of 5.5% per year, payable at maturity (which is 24
months after the execution date). The loan also carries a call
option to convert, at Cadogan’s sole discretion, the principal into
an indirect interest in Proger; the call option can be
exercised at any time between the 6th and 24th months
following the execution date of the loan agreement and subject to
Cadogan shareholders approving the exercise of the call. The
obligation to pay interest is extinguished if the call option is
exercised. For more information on the convertible loan go to
http://otp.investis.com/clients/uk/cadogan-petroleum/rns/regulatory-
story.aspx?cid=46&newsid=1236020.
For further information, please
contact:
Cadogan Petroleum plc
Guido Michelotti Chief Executive Officer
+380 (44) 594 5870
Ben Harber Company Secretary
+44 0207 264 4366
Cantor Fitzgerald Europe Broker to Cadogan
Petroleum plc
David Porter +44 (0) 20
7894 7000