TIDMORCP
RNS Number : 4431N
Oracle Power PLC
25 September 2023
25 September 2023
Oracle Power PLC
("Oracle", the "Company" or the "Group")
Unaudited Interim Results for the six months to 30 June 2023
Oracle Power PLC (AIM: ORCP), the international natural
resources project developer, announces its unaudited interim
results for the six months ended 30 June 2023, which is also
available on its website at: www.oraclepower.co.uk.
Chairman's Statement for the six months to 30 June 2023
Summary of Interim Results
Oracle has made significant progress in relation to its
multi-project portfolio consisting of one gold project progressing
work in Western Australia via a joint venture, the multiple project
Thar coal block in Pakistan (the "Thar Project"), which includes a
large solar project, and a very exciting green hydrogen project in
the south of Pakistan (the "Green Hydrogen Project"). For the Green
Hydrogen Project, the Company has set up a joint venture company,
Oracle Energy Limited ("Oracle Energy"), with Kaheel Energy FZE
("Kaheel Energy"), which is wholly owned by His Highness Sheikh
Ahmed Bin Dalmook Al Maktoum.
As is to be expected for a project development company with
pre-revenue projects at development stages, the Company's financial
results for the six months to 30 June 2023 show the Group to have
made a loss after taxation of GBP613,773 (6 months ended 30 June
2022: GBP356,295). The increase in overheads during the period of
GBP257,478 is principally due to foreign exchange losses and an
adjustment to how the Company accounts for associate company
investments.
At 30 June 2023, the Group had cash and cash equivalents of
GBP326,946 (30 June 2022: GBP762,300) and total assets less current
liabilities of GBP 6,117,075 (30 June 2022: GBP6,890,347).
Operational Update
Australia
The Company currently holds one prospective gold asset, the
Northern Zone Project, which is located in a globally significant
gold region of Western Australia. The Northern Zone Project is
located 25km east of the major gold mining centre of Kalgoorlie,
the home of the 'Super Pit' mine which is the second largest gold
mine in Australia. At the end of 2022, we decided to spend no
further funds exploring the Jundee East mine and the carrying value
of this asset was impaired in that period.
In the Chief Executive Officer's statement contained within this
report, Ms Memon has prepared a separate operational update which
further details the Company's progress in Australia.
Pakistan
The Pakistan authorities continue to work with the Chinese
Government through the China-Pakistan Economic Corridor ("CPEC").
This will assist with the obtaining of finance to develop Thar
Block VI. We keep in close touch with the Government of Pakistan at
both federal and provincial levels to ensure the continued support
for the Thar Project.
Post period end, we received the letter of intent ("LOI") from
Directorate of Alternative Energy of the Government of Sindh
relating to the establishment of a 1,200MW hybrid solar/wind, green
hydrogen/power project in Pakistan, enabling development of the
Green Hydrogen Project to commence.
In the Chief Executive Officer's statement contained within this
report, Ms Memon has prepared a separate operational update which
further details the Company's progress in Pakistan.
Conclusion
The Board extends its appreciation to the Energy Department, the
Government of Sindh, as well as the Ministry of Energy (Power
Division), Government of Pakistan, for their continued support. The
Board also continues to be most grateful for the patience and
support of the Company's shareholders.
Mark W. Steed
Chairman of the Board - Oracle Power PLC
Date: 25 September 2023
Chief Executive Officer's statement for the six months ended 30
June 2023
In the first half of 2023, we have made significant progress in
relation to the development of all our projects in Pakistan and
Western Australia.
Review of operations
Pakistan
Thar Block VI
As part of our continuing development of Thar Block VI, in May
2023 we signed a strategically significant off-take and development
MOU with the Government of Sindh, K electric; the largest private
electricity distributor in Pakistan, and PowerChina International.
The 1.32 MW coal to power plant will be developed within CPEC,
where it is on the priority list. The MOU allows for the
development of the power plant either on the Block VI site or at
Port Qasim for ease of transmission.
As part of our strategy to build our green energy portfolio, we
also initiated a project to develop a proposed 1GW solar facility
on our mine site at Block VI and signed a development MOU with
PowerChina International. We also obtained provisional permission
from the Government of Sindh for this development and have since
commenced the necessary work to fulfil their requirements. This
project places us at the forefront of companies in the region that
are committed to developing responsible and sustainable energy
solutions. Furthermore, the solar project at Thar will also offset
carbon emissions from existing and future coal power plants, by
providing green energy to local industry and communities. Oracle
also continued to work on its CTG/L initiative during this period
and, given the growing natural gas crisis in Pakistan, the
government has become more engaged with us regarding the
commencement of feasibility work.
Green Hydrogen Project
In the first half of 2023, Oracle has continued swiftly to
develop its green hydrogen project in partnership with Kaheel
Energy. Significantly in March 2023, a development and financing
MOU was signed with the State Grid Corporation of China, the
world's third largest company by revenue. During this period, State
Grid has commissioned and funded a Hybrid Power and Transmission
study.
We also signed two very important off-take MOUs as we continued
to de-risk this investment. The first one with Emirates Global
Aluminium was signed in February 2023, to meet the de-carbonisation
needs of its aluminium smelters. In June 2023, we continued to
strengthen our off-take prospects by signing another important
off-take MOU for all our future green ammonia and green hydrogen
production along with carbon credits, with PetroChina Middle East
Company.
In February 2023, Oracle established a senior position in the
green hydrogen development universe by becoming an associate
partner of Dii, Desert Energy Alliance, a partnership network for
the development and commercialisation of green hydrogen. In March
2023, Oracle also successfully completed the award and registration
of the land lease.
In June 2023, the Company was also pleased to announce a
collaboration for project development assistance and knowledge
sharing, with Global Green Growth Institute, headquartered in Seoul
under the Chairmanship of Ban ki-Moon.
Post period end, in September 2023, the Company was pleased to
announce the completion of the technical and commercial Feasibility
Study relating to the Green Hydrogen Project. The study, undertaken
by leading international construction engineering company,
thyssenkrupp Uhde, supports the development of a 400MW capacity
green hydrogen production facility. The results of the study were
noted to be very encouraging and on a par with industry
expectations as observed in other green hydrogen projects announced
worldwide, providing significant confidence in the development
route towards commercialisation. The Company are now moving into a
highly active period as it works towards completing power and grid
interconnectivity feasibility studies in collaboration with State
Grid Corporation of China, followed by geotechnical and
environmental studies, leading into the FEED stage, and formulation
of the investment and lender consortium.
Australia
In Western Australia, Oracle entered into a farm-in agreement
for the Northern Zone Project with Riversgold Limited
("Riversgold") (ASX:RGL), an ASX-listed gold exploration company in
May 2023. As a result of this deal, the Company and its
shareholders will be able to participate in the potential upside of
any exploration success from the Riversgold committed workplan. An
extensive diamond drilling programme was completed in August 2023
which substantiated previous exploration work, with very wide zones
of intense alteration in all four diamond drill holes demonstrating
high gold prospectivity. The Company is currently awaiting assay
results and will report these to the market in due course.
The Riversgold transaction highlights Oracle's strategy of
forming partnerships to create value for shareholders and the
Company is optimistic about the development of the partnership
moving forwards.
With regard to Jundee East, the results of our exploration
programme did not warrant any further work and the value of the
asset was impaired in 2022.
Outlook
During the first half of 2022, we actively pivoted towards a
more environmentally responsible project development strategy, by
selecting green energy development to be a part of our portfolio.
This has continued into 2023 and the Company is also reviewing
other global green energy opportunities with His Highness Sheikh
Ahmed Dalmook Al Maktoum.
We remain determined to generate value from the investments that
we have made. We have launched another significant renewable power
project to create further development opportunities on our coal
block in Thar. At the same time, with an eye on critical energy
needs and market demand, we have also forged a strategically
valuable off-take partnership for coal to power and are now working
towards securing financing support for our coal to power project
under the CPEC umbrella.
The last six months have taken us further forward in terms of
progressing our strategic vision and project developments and we
are committed to continuing this progress going forward.
Naheed Memon
Chief Executive Officer - Oracle Power PLC
Date: 25 September 2023
CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS TO 30 JUNE 2023
(Unaudited) (Unaudited) (Audited)
6 Months 6 Months Year ended
to to
30 June 2023 30 June 2022 31 Dec 2022
CONTINUING OPERATIONS GBP GBP GBP
Revenue - - -
Administrative expenses (621,197) (356,538) (1,311,012)
OPERATING LOSS (621,197) (356,538) (1,311,012)
Finance costs - - -
Finance income 7,424 243 14,592
Amounts written off and p/l on disposals - - 6,762
LOSS BEFORE INCOME TAX (613,773) (356,295) (1,289,658)
Income tax - - -
LOSS FOR THE PERIOD (613,773) (356,295) (1,289,658)
------------- ------------- ------------
Earnings per share expressed in pence
per share:
Basic (0.02) (0.01) (0.04)
Diluted (0.02) (0.01) (0.04)
STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS TO 30 JUNE 2023
(Unaudited) (Unaudited) (Audited)
6 Months 6 Months Year ended
to to
30 June 2023 30 June 2022 31 Dec 2022
GBP GBP GBP
LOSS FOR THE YEAR (613,773) (356,295) (1,289,658)
ITEMS THAT WILL OR MAY BE RECLASSIFIED
TO PROFIT OR LOSS:
Exchange gains arising on translation
on foreign operations (331,076) (35,456) (178,459)
OTHER COMPREHENSIVE LOSS FOR THE PERIOD,
NET OF INCOME TAX (331,076) (35,456) (178,459)
------------- ------------- ------------
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD (944,849) (391,751) (1,468,117)
------------- ------------- ------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE SIX MONTHS TO 30 JUNE 2023
(Unaudited) (Unaudited) (Audited)
6 Months 6 Months Year ended
to to
30 June 2023 30 June 2022 31 Dec 2022
GBP GBP GBP
ASSETS
NON-CURRENT ASSETS
Intangible assets 4,688,947 5,640,968 5,023,296
Property, plant and equipment 2,615 4,948 3,885
Investments in equity accounted associates 667,337 120,284 668,782
Loans and other financial assets 619,773 435,871 580,079
5,978,672 6,202,071 6,276,042
------------- ------------- ------------
CURRENT ASSETS
Trade and other receivables 39,427 73,530 45,069
Cash and cash equivalents 326,946 762,300 150,905
366,373 835,830 195,974
------------- ------------- ------------
TOTAL ASSETS 6,345,045 7,037,901 6,472,016
------------- ------------- ------------
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 3,695,415 2,896,479 3,078,297
Share premium 18,807,922 18,358,858 18,632,040
Translation reserve (1,326,201) (852,122) (995,125)
Share scheme reserve 67,896 66,733 58,179
Retained earnings (15,127,899) (13,579,600) (14,504,409)
TOTAL EQUITY 6,117,133 6,890,348 6,268,982
------------- ------------- ------------
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 227,912 147,553 203.034
Borrowings - - -
TOTAL LIABILITIES 227,912 147,553 203,034
------------- ------------- ------------
TOTAL EQUITY AND LIABILITIES 6,345,045 7,037,901 6,472,016
------------- ------------- ------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 JUNE 2023
Called up Retained earnings Share Translation Share Scheme Reserve Total Equity
share premium Reserve
capital
GBP GBP GBP GBP GBP GBP
Balance at 31
December 2021 2,650,325 (13,223,305) 17,853,012 (816,666) 66,733 6,530,099
Loss for the period - (356,295) - - - (356,295)
Other comprehensive
income - - - (35,456) - (35,456)
Issue of Share
Capital 246,154 - 505,846 - - 752,000
---------- ------------------ ----------- ------------ --------------------- -------------
Balance at 30 June
2022 2,896,479 (13,579,600) 18,358,858 (852,122) 66,733 6,890,348
---------- ------------------ ----------- ------------ --------------------- -------------
Loss for the period - (933,363) - - - (933,363)
Other comprehensive
income - - - (143,003) - (143,003)
Share warrants
expired - 8,554 (8,554) -
Issue of Share
Capital 181,818 - 273,182 - - 455,000
---------- ------------------ ----------- ------------ --------------------- -------------
Balance at 31
December 2022 3,078,297 (14,504,409) 18,632,040 (995,125) 58,179 6,268,982
---------- ------------------ ----------- ------------ --------------------- -------------
Loss for the period - (613,773) - - - (613,773)
Other comprehensive
income - - - (331,076) - (331,076)
Share warrants
granted - (9,717) 9,717 -
Issue of Share
Capital 617,118 - 175,882 - - 793,000
---------- ------------------ ----------- ------------ --------------------- -------------
Balance at 30 June
2023 3,695,415 (15,127,899) 18,807,922 (1,326,201) 67,896 6,117,133
---------- ------------------ ----------- ------------ --------------------- -------------
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARED 30 JUNE 2023
(Unaudited) (Unaudited) (Audited)
6 Months 6 Months to Year ended
to
30 June 2023 30 June 2022 31 Dec 2022
GBP GBP GBP
Cash flows from operating activities
CF note
Cash used in operations 1 (388,338) (458,199) (707,714)
Net cash used in operating
activities (388,338) (458,199) (707,714)
------------- ------------- ------------
Cash flows from investing activities
Purchase of intangible fixed
assets (39,199) (262,283) (378,963)
Purchase of investments in
associates - (120,284) (668,782)
Issue of loans (193,747) (20,683) (184,929)
Interest received 7,424 243 14,592
Net cash used in investing
activities (225,522) (403,007) (1,218,082)
------------- ------------- ------------
Cash flows from financing activities
Proceeds of share issue 793,000 752,000 1,207,000
Net cash from financing activities 793,000 752,000 1,207,000
------------- ------------- ------------
Increase / (decrease) in cash
and cash equivalents 179,140 (109,206) (718,796)
------------- ------------- ------------
Cash and cash equivalents at CF note
beginning of period 2 150,905 872,000 872,000
Effect of exchange rate changes (3,099) (494) (2,299)
Cash and cash equivalents at CF note
end of period 2 326,946 762,300 150,905
------------- ------------- ------------
NOTES TO THE CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2022
1. RECONCILIATION OF LOSS BEFORE TAX TO CASH USED IN
OPERATIONS
(Unaudited) (Unaudited) (Audited)
6 Months to 6 Months Year ended
to
30 June 2023 30 June 31 Dec 2022
2022
GBP GBP GBP
Loss before tax (613,773) (356,295) (1,289,658)
Depreciation 103 103 205
Impairment loss on intangible assets 17,224 - 579,728
Impairment loss on loans to associates 145,230 - 25,785
Loss/(Gain) on foreign exchange movement 41,782 (55,575) 10,300
Finance income (7,424) (243) (14,592)
Share of loss from associate undertaking 1,444 - -
Gain on disposal of subsidiary undertaking - - (6,762)
(415,414) (412,010) (694,994)
Increase in trade and other receivables (18,340) (23,422) (38,025)
Increase / (decrease) in trade and
other payables 45,416 (22,767) 25,305
Cash used in operations (388,338) (458,199) (707,714)
------------- ----------- ------------
2. CASH AND CASH EQUIVALENTS
The amounts disclosed on the cash flow statement in respect of
cash and cash equivalents are in respect of the statement of
financial position amounts:
(Unaudited) (Unaudited) (Audited)
6 Months 6 Months Year ended
to to
30 June 30 June 31 Dec 2022
2023 2022
GBP GBP GBP
Cash and cash equivalents 326,946 762,300 150,905
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 2023
1. Basis of preparation
These interim financial statements for the six-month period
ended 30 June 2023 have been prepared using the historical cost
convention, on a going concern basis and in accordance with
applicable UK adopted International Financial Reporting Standards
and IFRIC interpretations and with those parts of the Companies Act
2006 applicable to reporting groups under IFRS. They have also been
prepared on a basis consistent with the accounting policies
expected to be applied for the year ending 31 December 2023, and
which are also consistent with the accounting policies applied for
the year ended 31 December 2022 except for the adoption of any new
standards and interpretations.
These interim results for the six months ended 30 June 2023 are
unaudited and do not constitute statutory accounts as defined in
Section 434 of the Companies Act 2006. The financial statements for
the year ended 31 December 2022 have been delivered to the
Registrar of Companies and filed at Companies House and the
auditors' report on those financial statements was unqualified but
contained an emphasis of matter in respect of a material
uncertainty relating to going concern. The auditors' report did not
contain a statement made under Section 498(2) or Section 498(3) of
the Companies Act 2006.
2. Loss per share
Basic earnings per share is calculated by dividing the earnings
attributable to ordinary shareholders by the weighted average
number of ordinary shares of 3,311,808,627 (30 June 2022:
2,795,197,507 and 31 December 2022: 2,902,488,933) outstanding
during the period. There is no difference between the basic and
diluted loss per share.
3. Called up share capital
(Unaudited) (Unaudited) (Audited)
6 Months to 6 Months to Year ended
30 June 2023 30 June 2022 31 Dec 2022
Allotted, called up
and fully paid
Ordinary shares of 0.1p
each 3,735,415,387 2,896,479,558 3,078,297,740
The number of shares in issue was as follows:
Number of shares
Balance at 31 December 2021 2,650,325,712
Issued during the period 246,153,846
-----------------
Balance at 30 June 2022 2,896,479,558
Issued during the period 181,818,182
-----------------
Balance at 31 December 2022 3,078,297,740
Issued during the period 657,117,647
-----------------
Balance at 30 June 2023 3,735,415,387
-----------------
For further information please contact:
Oracle Power PLC +44 (0) 203 580
Naheed Memon 4314
Strand Hanson Limited (Nominated Adviser
and Joint Broker) +44 (0) 20 7409
Rory Murphy, Matthew Chandler, Rob Patrick 3494
Global Investment Strategy UK Limited
(Joint Broker) +44 (0) 20 7048
Samantha Esqulant 9432
St Brides Partners Limited (Financial
PR) +44 (0) 20 7236
Susie Geliher, Isabel de Salis 1177
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