Must admit, the technical section of the half yearly report is worth a read at long last.
As for the financial reporting side....there may still be some hangovers....
1. Who knows what this receipts from associates and payments to associates means.??...
the only associate I can think of in this instance is ... the 50% owned operating entity TEG operations..jointly owned by Royal Oil blah (which was bought by Pilot)
got me puzzled as to how this works... When I looked for a corresponding entry in the Royal balance sheet and PL, (a few years running prior to Pilot owning them), i could not make head or tail of it...a 50% jointly owned operating entity would need money to function from both shareholders...yet i could only see money going in from TEG...Royal seemed to be borrowing money from it...?? and then how does the operating entity pay the money back?
Oh and heres a number for the Cliff Head JV that has 3 JV partners.... Co has
57.5% direct interest???... so what is the difference between the CH JV and Triangle operations? ...
It is another element of weirdness that hopefully gets some clarity under new management.. and the only real way for any clarity would be for them to show a separate set of audited accounts for the operating entity or the JV... after all, it seems the operating income and expenditure associated with the Cliff Head oil field ($20-$30 Million per annum) goes through this little pipe...and it is well hidden.
2. And you may ask...what is the carrying value of the investment in the associate????.....
Is it NIL? or did they just forget? or is it equity accounting - does it mean they value it at what they paid for it? = $0?
3. and what about that other all important associate.... GAS....surely a $14M on market valuation should rate a mention on the balance sheet? Why go to such lengths to not include on the BS? The total assets would "climb" to close to $50M....
4. and the so called much vaunted $300M replacement value Arrowsmith Plant and Platform? the only entry for it here is under the Oil and gas properties entry...of 1.2 Million?
5. and the Oil and Gas properties number. for the Cliff Head oil field....
Look at the 30June 2021 number...it started with a carrying amount of $4.2M in July 2020, additions must be either reserves? or equipment? then deduct these large non cash items...$3.1M impairment?? unwind of provision for restoration? should that not be added back? and we end up with a nice fat "0" at the end. They did the same thing back in 2018, they said in one breath they reduced the decommissioning liability by $5Million...and so they then said because of that, they will reduce the carrying value of the asset by $5million!!! (which at that time was pegged at around $10 million, now zero)
30Dec 2021...we have an addition of 1.3M...is that the submersible pump? or is it reserve additions? at least amortization appears more modest at 80K...(a cool 15% annualised of 1.3 million)...
idk...but until there is a bit more transparency and clarity around this, it remains one of my painful investments...
(20min delay)
