TIDMGTL
RNS Number : 4401I
GTL Resources PLC
15 June 2011
For immediate release 15 June 2011
GTL Resources PLC
('GTL' or the 'Group')
Audited Final Results
For the year ended 31 March 2011
GTL Resources PLC (AIM: GTL), the US based bio refining company,
today announces audited final results for the year ended 31 March
2011.
An electronic copy of the Annual Report and Accounts is
available on the Company's website at www.gtlresources.com.
Financial highlights
-- Revenue and profit ahead of market expectations
-- Revenue increased 21% to $261.4 million (Fiscal Year ("FY")
2010: $216.6 million)
-- Average commodity margin decreased 6% to $0.58/gallon (FY
2010: $0.62/gallon)
-- EBITDA of $30.4 million (FY 2010: $33.9 million)
-- Pre-tax profit of $12.0 million (FY 2010: $14.5 million)
-- Net debt balance of $83.4 million at 31 March 2011 reflects a
reduction of $14.4 million during the period (31 March 2010: $97.8
million)
Operational highlights
-- Sold 110.4 million gallons of ethanol during the period (7.2%
increase over FY 2010: 103 million gallons). Running production at
110 - 115 million gallons per annum (mgpa).
-- Shipped 297,000 tons of dried distillers' grains with
solubles ("DDGS") during the period (5% increase over FY 2010:
283,000 tons)
-- Continued positive ethanol yield and natural gas usage
trends
-- Received final reimbursement for property damage and lost
profits relating to the insurance claim from the October 2009 fire
incident. Settled claim in full.
-- Successfully ran food grade zein protein samples from GTL's
new pilot facility in Rochelle, IL. Executed a collaboration
agreement with our development partner, Prairie Gold, Inc.
-- Began construction of a steam turbine that will generate
roughly 25% of Illinois River Energy's ("IRE") electricity needs
and reduce annual operating costs at IRE
-- Constructed a new corn processing and storage area at IRE
consisting of a stand-alone corn milling facility and a 330,000
bushel steel corn storage bin that was completed in May of 2011
Commenting on the results, GTL CEO Richard Ruebe said: "The year
to 31 March 2011 was the second year of substantial cash generation
for the GTL Group since our plant doubled its capacity in fiscal
2009. Revenues increased over 20% and production increased over 7%
for the year. Continual process improvements have led to excellent
operating performance. Our commercial desk continued to deliver
above market margins. In addition, GTL has taken steps toward
diversifying its revenue stream by signing a collaboration
agreement with Prairie Gold, Inc. to commercialize a high value bio
refinery product, food grade zein protein. It's a very exciting
time for GTL and I am very proud of the FY 2011 results."
For further information please contact:
GTL Resources PLC
Richard Ruebe, CEO 001 630 773 1226 (USA)
Jeff Lemajeur, CFO
Cenkos
Stephen Keys 020 7397 8928
Elizabeth Bowman
Buchanan Communications
Charles Ryland 020 7466 5000
Ben Romney
Chairman's statement
I am pleased to report GTL Resources PLC's ("GTL") results for
the year ended 31 March 2011. The Group made pre-tax profits of
$12.0 million which comfortably exceeded our expectations earlier
in the year. This was achieved on a 21% increase in revenue to
$261.4 million (FY 2010: $216.6 million). Basic earnings per share
were $0.19 (FY 2010: $0.40) after recording a FY 2011 non-cash
income tax provision of $4.1 million vs. an income tax benefit of
$0.2 million in FY 2010. Importantly, interest bearing debt was
reduced by $20 million during the year ended 31 March 2011.
These financial results were achieved during some difficult
market conditions. During several months of our financial year,
market margins were very weak and sometimes negative. Against that
backdrop, our team consistently delivered better margins than were
generally available in the market. This emphasises the strength of
our team and the locational advantages of our plant.
The performance for the Group was helped by increased production
and efficiencies at IRE, the Group's ethanol plant in Rochelle,
Illinois, but hindered by a lower commodity margin environment.
Commodity margins of $0.58/gallon in FY 2011 were down when
compared with $0.62/gallon the previous year. The average selling
price of ethanol in FY 2011 of $1.97/gallon was higher than the FY
2010 average of $1.71/gallon, but the increase was more than offset
by the increase in the average cost of corn in FY 2011 of
$4.61/bushel vs. the average FY 2010 cost of $3.65/bushel.
Commodity margins were affected by a lower than expected corn
harvest, feed grain crop failures outside the US, weaker demand
brought about by lower gasoline (petrol) consumption and slowing
ethanol penetration into the gasoline pool as penetration levels
approached the ten percent "blend wall".
On 14 October 2010 and on 21 January 2011, the US Environmental
Protection Agency ("USEPA") ruled it would permit gasoline blends
with up to 15 percent ethanol ("E15") for model year 2001 and newer
vehicles, a 50% increase from the previous limit of 10 percent and
the first key step in lifting the blend wall. These model year
vehicles represent approximately two-thirds of US gasoline demand.
The impact of this development bodes well for future years after
retailers make the infrastructure changes necessary to sell E15 and
lift the blend wall.
Operational performance at IRE continues to be excellent. The
IRE team averaged a run rate of 111 mgpa of denatured ethanol
produced, which is a significant improvement over prior year's
production of 102 mgpa. This strong performance was achieved in
large part from IRE's continued commitment to process improvement
projects that were successfully implemented throughout the
year.
GTL is focused on becoming a premier bio refining company. To
that end, GTL is continually seeking to develop and commercialize
new technologies that increase revenues and enhance margins, both
directly and in collaboration with technology partners. Currently,
construction is underway on a steam turbine generator that will
supply 25% of the electricity needed to run the IRE plant in
Rochelle, Illinois by using excess mechanical energy in steam the
plant already produces. In addition, GTL is continuing its
partnership with Prairie Gold, Inc. to commercialise patented
technology to extract a high value protein by-product from corn.
The partnership's pilot plant operations, on-site in Rochelle, are
entering a second year of operation. GTL management believes
projects to improve plant efficiencies and create additional
high-value products, will transform the GTL asset base into the
premier bio refining asset base in the industry. To this end, the
Group will continue to seek out new partners, work with existing
partners, and selectively invest in the development of new viable
technologies aimed at diversifying and enhancing profitability.
These investments are critical to the future success of GTL and
will allow GTL to achieve its vision.
The GTL and IRE teams are the backbone of this organisation and
these results could not have been achieved without each and every
one of them. The Board would like to thank all our team members for
their continued support and hard work in achieving these fine
results.
Julia Henderson
Non-Executive Chairman
Business and financial review
Business review
IRE sold 110 million gallons of denatured ethanol in FY 2011
versus prior period sales of 103 million gallons and nameplate
capacity of 97 million gallons. Plant operational efficiencies also
improved. IRE's denatured ethanol yield per bushel of corn was 2.82
gallons versus 2.80 gallons in the prior period. Natural gas usage
decreased in FY 2011 to 28,360 Btu's per denatured gallon from
29,384 Btu's per denatured gallon in FY 2010. These improvements
resulted from management's continuous improvement program focused
on constraint elevation, waste elimination, and up time.
In early 2009, temporary repairs were made to the damaged
concrete silo structure at IRE to ensure continued safe operation
of corn storage and milling. Nevertheless, since retained experts
at IRE advised that the structural integrity of the silo structure
was permanently compromised, and given that the litigation's slow
pace was increasing the risk that the temporary repairs may fail,
IRE management determined that it would be prudent to advance the
construction of a replacement corn storage and milling system. The
new storage and milling facilities, which include a standalone corn
milling building and a 330,000 bushel corn storage bin, mitigate
the risk of failure and downtime by providing corn processing
capability that can function independently from the damaged
facilities. The project was completed and operational as of May
2011. The project cost of $5.4 million was funded by IRE's existing
restricted cash reserves, set aside specifically for this important
risk mitigation. Management believes, however, that property damage
alone is substantially higher than the cost of this partial
solution. Complete recovery of all damages from the defendants in
the litigation is being pursued.
IRE commercial performance
For the period, IRE's commodity margin on sales of $0.58/gallon
was $0.04/gallon lower than the prior year, but $0.06/gallon higher
than IRE's local market. The commodity margin, defined as the net
ethanol and DDGS price realization less the net corn and natural
gas consumption costs, is IRE's key measure of commercial
performance.
IRE's commodity margin outperformance versus market was mainly
due to our commercial team's performance in selling ethanol and
buying corn and natural gas on a daily basis, and to slightly
higher DDGS net price realisation versus market. IRE controls risk
by strict adherence to its risk management policy which is focused
on limiting commodity market exposure risk.
Unlike some of GTL's competitors, IRE did not choose to fix
margins forward significantly for its fourth fiscal quarter ending
31 March 2011. Rather, IRE's locational advantages of being near
both the large Chicago market for ethanol and a Rochelle intermodal
container shipment facility, which is used to ship a majority of
our DDGS to Asian markets, provided additional steady structural
advantages sufficient to weather the difficult margin environment
during that quarter.
Key performance indicators
FY2011
Year ending Year ending Nameplate
31 Mar 31 Mar % or
2011 2010 Change Local Market
---------------------------- ----------- ----------- ------- -------------
Production (mil. denatured
gals.) 111 102 9% 97
Ethanol yield (den.
gals./bushel) 2.82 2.80 1% 2.72
Natural Gas usage (Btu/den.
gal.) 28,360 29,384 -3% 35,618
Commodity Margin ($/gal) $0.58 $0.62 -6% $0.52
Ethanol price ($/gal) $1.97 $1.71 15% $1.96
Corn net price ($/bushel) $4.61 $3.65 26% $5.03
DDGS price ($/ton) $146.19 $130.71 12% $143
---------------------------- ----------- ----------- ------- -------------
Legislative and regulatory developments
As GTL announced on 14 October 2010, the USEPA ruled it would
now permit gasoline blends with up to 15 percent ethanol (E15), a
50% increase from the previous limit of 10 percent, for model year
2007 and newer vehicles. Then, in January 2011, the USEPA also
ruled on allowing up to E15 for 2001 - 2006 model year vehicles.
Combined, these model year vehicles represent approximately
two-thirds of US gasoline demand. Even though vested interest
parties are trying to oppose the USEPA in these matters, over time
we expect gradual adoption at the retail level. This should
effectively lift the "ethanol blend wall" and allow ethanol
blending in the US to reach levels high enough to absorb all the
potential output of existing corn ethanol production capacity and
to reach the levels required under the Renewable Fuels Standard
(RFS2).
In calendar 2011, RFS2 calls for baseline renewable fuels (corn
based ethanol) to rise to 12.6 billion gallons, up from 12.0
billion gallons in calendar 2010. In following years, baseline
renewable fuels are required to rise 0.6 billion gallons per annum,
up to 15.0 billion gallons by 2015 and thereafter. With this
forecasted steady increase in annual demand, and with relatively
little new capacity under construction and a limited capability for
existing plants to creep capacity higher, GTL expects ethanol
capacity utilisation should also increase in the future.
An additional legislative development for the ethanol industry
was the extension of the Volumetric Ethanol Excise Tax Credit
("VEETC"), otherwise known as the "blender's credit" of 45
cents/gallon and the secondary ethanol import tariff of 51
cents/gallon. Although the extension is only for one year and is
set to expire 31 December 2011, it is serving the purpose of buying
time for US legislators to negotiate, in the context of a
comprehensive review of US energy policy, a multi-year, gradual
transition to an eventual sunset of the provision. Removing this
tax credit completely at this time makes little sense if the US
expects to reduce its dependency on foreign oil.
Current trading and prospects
Commodity margins in the US ethanol industry for the first few
months of calendar 2011 have tracked seasonal patterns of recent
years. Gasoline (petrol) demand typically ebbs in the winter and
early spring followed by increasing demand in the late spring and
summer months. Ethanol commodity margins tend to track closely to
gasoline demand, which drives ethanol industry capacity
utilisation. We expect the historical seasonal trend in commodity
margins to continue in FY 2012.
On the supply side, there is relatively little new capacity
growth coming on-line in calendar years 2011 and 2012 and limited
capacity creep from existing facilities. Demand is mandated to
increase 0.6 billion gallons per year up to 15 billion gallons per
year in 2015. This bodes well for tightening industry capacity
utilisation going forward.
Another significant force on ethanol demand, and hence industry
margins, is the "blend wall". At current price levels, there is a
significant incentive for blenders to use ethanol above the
mandated levels. The current US Clean Air Act limit on the ethanol
content in a given gallon of finished gasoline, however, is 10%.
Across the industry as a whole, the equivalent of almost 94% of
gasoline is already at this maximum blend level. The remaining 6%
opportunity is in remote or small markets for which infrastructure
costs to enable ethanol blending are high. Growing demand through
these channels will be slow and difficult. To significantly grow
ethanol demand, the 10% blend wall needs to be addressed through
further changes in the federal and state gasoline standards to
fully allow for higher level blends as mentioned in the Regulatory
section. Due to the time required to retrofit the supply chain up
to 15% blend levels, positive regulatory action should only have a
gradual impact on near term demand.
In summary, GTL expects industry capacity utilisation to slowly
tighten over the upcoming year.
However, as higher ethanol blend levels work their way into the
market in the near future, ultimately supply versus demand will
further tighten, and ethanol margins should benefit.
Future outlook
US Corn plantings for the 2011-2012 harvest started late in the
season due to wet, cold weather. This could translate to fewer
planted acres and lower yields, however, it is too soon to
accurately predict how much corn will be produced compared with the
nearly record volumes expected. The fall 2010-2011 harvest turned
out to be less than initially anticipated and current reserves are,
consequently, very low. Both factors are leading to upward pressure
on corn prices that are expected to persist throughout the
year.
Longer-term, it is expected that worldwide agricultural
commodity markets will recover from the current tightness brought
about by adverse weather in many key growing regions of the world.
Although there is long-term growth in demand due to population and
dietary improvement in the developing world, there is also growth
in production due to improved seed genetics and agricultural
practices. Although there may be difficult years from time-to-time
due to weather anomalies, GTL believes that there is no long-term
structural shortage of grain for food, feed, and fuel.
Energy prices are also stubbornly high by historical standards.
With continued demand growth in developing economies, instability
in key crude oil producing countries, and large investment capital
flows into (and out of) commodities, energy prices are likely to
remain high long-term, thereby supporting corn prices but also
ensuring that biofuels such as corn based ethanol remain a value to
blenders in the gasoline pool.
GTL is committed to growth
GTL is cementing relationships with its partners and using its
resources to identify alternative revenue streams to move the Group
to the next phase in their growth plan, becoming a diversified bio
refinery.
Expansion into new markets and alternative revenue streams are
critical elements to future success for GTL. GTL is in its second
year of development with Prairie Gold, Inc ("PGI") to ultimately
commercialize a patented process for extracting zein protein from
corn flour. Zein protein is a high value by-product that has
potential applications in food and pharmaceuticals as an edible,
biodegradable coating and encapsulant. GTL has entered into an
exclusive collaboration agreement with PGI to commercialize a
protein extraction process that will produce a food grade
by-product from corn without any loss to the ethanol production
capacity. The goal is to provide a diversified mix of products in
order to withstand the fluctuations in ethanol and corn prices by
developing new technologies and high-value co-products from what is
normally the low-value feed portion of the corn sold as DDGS
GTL is constructing a facility at the IRE site for a Combined
Heat and Power ("CHP") project. A CHP system will reduce utilities
costs and add to the IRE facility's already strong competitive
standing in the industry as the closest bio refinery to the Chicago
fuels market. CHP is a proven efficiency technology that employs an
existing underutilised fuel source to cogenerate process heat and
electricity. The CHP system will use IRE's existing boilers high
pressure steam to turn the steam turbine and generate approximately
2.5 megawatts of electricity. The electricity produced is expected
to replace roughly 25% of the total electric load of the bio
refinery that is currently purchased from the local utility at
higher costs.
To support GTL's growth agenda, GTL added a new member to the
executive team. Jeffrey Lemajeur joined GTL as Chief Financial
Officer and Treasurer in October of 2010. Jeff has previously
served as Chief Financial Officer of three publicly traded
companies, starting in 1991, all of which were larger than GTL is
currently. Jeff has been involved in numerous acquisitions,
integrations and capital transactions to finance acquisitions which
should benefit GTL as it grows.
Financial review
Turnover for the period of $261.4 million was generated by
ethanol and DDGS sales. Ethanol sales of 110.4 million gallons were
made at an average price of $1.97 per gallon, resulting in revenues
of $218.0 million representing 83.4% of revenue. The sales increase
of $38.4 million over FY 2010 revenue of $179.6 million was due to
a higher average sales price per gallon of $29 million and
increased volume of $9.4 million. FY 2011 DDGS of 297 thousand tons
at an average gross sales price of $146.19 per ton resulted in
revenues of $43.4 million. This was up over FY 2010 revenues of
$36.9 million by $6.5 million due to higher gross price per ton of
$4.6 million and increased volume of $1.9 million.
Cost of sales of $223.4 million includes total variable costs of
$213.2 million, plant fixed operating expenses of $6.5 million, and
freight and marketing fees of $3.7 million. Corn and natural gas
represent 91% of the total variable costs. Corn expense of $180.2
million was up $44.8 million from the FY 2010 amount of $135.4
million. The increase in corn expense was primarily due to higher
average costs per bushel ($4.61/bushel in FY 2011 versus
$3.65/bushel in FY 2010) of $37.7 million and higher production
volume of $7.1 million for the period. Natural gas expense of $13.8
million was $1.5 million higher than the FY 2010 amount of $12.3
million. This increase was due to higher unit rates of $0.8 million
and volume increases due to higher production of $0.7 million.
Administrative expenses of $21.5 million were $2.0 million
higher than FY 2010. Administrative expense includes depreciation,
loss on disposal of assets, plant administrative expenses, and
corporate overhead costs. The increase was primarily due to
professional fees which increased by $1.5 million to forward GTL's
strategic initiatives.
Administrative - exceptional was $1.7 million of income in FY
2011 compared to $1.5 million of income in FY 2010. Both
exceptional income items related to business interruption proceeds
as a result of the fire at IRE in October of 2009. Preliminary
proceeds of $1.5 million were received in FY 2010 and final claim
proceeds of $1.7 million were received in July 2010 (FY2011). The
damaged heat exchanger was replaced in April 2010 during a
scheduled plant shutdown without incident or delays.
Finance income in FY 2011 was flat to the prior year.
Finance expenses of $7.8 million were down from last year's $9.1
million. This reduction was a result of a $1.3 million reduction in
interest expense due to lower principal balances with relatively
similar effective interest rates. Under the terms of its senior
debt agreement, IRE entered into interest rate swaps that mature in
July 2011. The senior lenders have agreed that IRE will not be
required to enter into interest rate protection agreements upon the
expiration of the swaps in July 2011.
In the period, the Group reported profit before income tax of
$12.0 million versus profit before income tax of $14.5 million for
the year ended 31 March 2010. The decrease was primarily due to
lower commodity margins in FY 2011.
Income tax (expense) / credit was $4.1 million of expense for
the period versus a credit of $0.2 million in the prior year. In
the prior year, GTL received a refund of an earlier year's taxes
paid as a result of an amended tax return filing. For the current
period, the Group reversed the remaining valuation allowance of
$1.0 million as of 31 March 2010 relating to Net Operating Loss
(NOL) utilisation in the US. Upon elimination of the valuation
allowance, GTL must now record income tax expense at the statutory
tax rates on book income. However, based on accelerated
depreciation for tax purposes, it is expected that GTL will not be
in a tax paying position for several years. GTL expects the
effective tax rate for book purposes to be in the 40% range for
subsequent years.
The Group's profit for the year attributable to the equity
holders of the Company was $6.2 million (FY 2010: $12.7 million),
which represents basic and diluted earnings per share of $0.19.
At the corporate level, as of 31 March 2011, there is $6.9
million of cash which is well in excess of the $0.5 million of
liabilities. This provides adequate working capital for the Group's
ongoing activities and provides a base for potential future
investment projects.
GTL continues to significantly reduce its net debt. At 31 March
2011, net debt was $83.4 million; down $14.4 million from the 31
March 2010 balance of $97.8 million. Net debt is comprised of $80.8
million in senior debt plus $30 million in subordinated debt for
total interest bearing debt of $110.8 million, less cash of $27.4
million. I am proud to report that we achieved these levels of debt
repayment without using our working capital line this year (FY 2010
working capital borrowing: $nil). All of the Group's debt remains
at the IRE level, with no recourse against GTL Resources PLC
assets.
Richard Ruebe
Group CEO
Consolidated statement of comprehensive income
2011 2010
for the year ended 31 March 2011 $000 $000
---------------------------------------------- --------- ---------
Revenue 261,447 216,627
Cost of sales (223,397) (176,585)
---------------------------------------------- --------- ---------
Gross profit 38,050 40,042
Administrative expenses (21,492) (19,504)
Administrative - exceptional 1,679 1,500
---------------------------------------------- --------- ---------
Operating profit 18,237 22,038
Finance income 1,589 1,516
Finance expenses (7,842) (9,056)
Profit before tax 11,984 14,498
Income tax (expense) / credit (4,100) 162
---------------------------------------------- --------- ---------
Profit for the period 7,884 14,660
Other comprehensive income:
Other comprehensive income for the year,
net of tax - -
---------------------------------------------- --------- ---------
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 7,884 14,660
---------------------------------------------- --------- ---------
Profit attributable to:
Equity holders of the company 6,175 12,677
Non-controlling interest 1,709 1,983
Profit for the period 7,884 14,660
Total comprehensive income attributable
to:
Equity holders of the parent 6,175 12,677
Non-controlling interest 1,709 1,983
---------------------------------------------- --------- ---------
7,884 14,660
---------------------------------------------- --------- ---------
Earnings per share
Basic earnings per ordinary share (dollars) $0.19 $0.40
Diluted earnings per ordinary share (dollars) $0.19 $0.39
---------------------------------------------- --------- ---------
Consolidated statement of changes in equity
for the year Share Share Translation Retained Non-controlling Total
ended 31 capital premium reserve earnings Total interest equity
March 2011 $000 $000 $000 $000 $000 $000 $000
------------- ------- ------- ----------- -------- ------ --------------- ------
At 1 April
2009 60,205 317 487 (9,859) 51,150 5,804 56,954
Profit for
the period - - - 12,677 12,677 1,983 14,660
Distribution - - - - - (133) (133)
Issue of
ordinary
shares upon
exercise of
warrants - - - - - 5 5
Share based
payment
transactions - - - 37 37 - 37
Foreign
currency
translation
reserve
transfer - - (487) 487 - - -
------------- ------- ------- ----------- -------- ------ --------------- ------
At 31 March
2010 60,205 317 - 3,342 63,864 7,659 71,523
------------- ------- ------- ----------- -------- ------ --------------- ------
At 1 April
2010 60,205 317 - 3,342 63,864 7,659 71,523
Profit for
the period - - - 6,175 6,175 1,709 7,884
Share based
payment
transactions - - - 106 106 - 106
------------- ------- ------- ----------- -------- ------ --------------- ------
At 31 March
2011 60,205 317 - 9,623 70,145 9,368 79,513
------------- ------- ------- ----------- -------- ------ --------------- ------
Consolidated statement of financial position
2011 2010
at 31 March 2011 $000 $000
-------------------------------------------------- ------- -------
Assets
Property, plant and equipment 156,872 164,186
Intangible assets - goodwill 7,390 7,390
Investments 510 -
Other financial assets 10,384 17,588
-------------------------------------------------- ------- -------
Total non current assets 175,156 189,164
-------------------------------------------------- ------- -------
Inventories 10,744 5,409
Trade and other receivables 3,931 3,431
Other current assets 1,272 1,490
Other financial assets 10,136 6,767
Cash and cash equivalents 6,895 8,616
-------------------------------------------------- ------- -------
Total current assets 32,978 25,713
-------------------------------------------------- ------- -------
Total assets 208,134 214,877
-------------------------------------------------- ------- -------
Equity
Share capital 60,205 60,205
Share premium 317 317
Retained earnings 9,623 3,342
-------------------------------------------------- ------- -------
Total equity attributable to equity holders of
the Company 70,145 63,864
Non-controlling interest 9,368 7,659
-------------------------------------------------- ------- -------
Total equity 79,513 71,523
-------------------------------------------------- ------- -------
Liabilities
Loans and borrowings 103,752 123,752
Deferred revenue 3,846 3,527
Deferred tax liabilities 4,100 -
-------------------------------------------------- ------- -------
Total non current liabilities 111,698 127,279
-------------------------------------------------- ------- -------
Trade and other payables 9,418 7,014
Other financial liabilities at fair value through
the profit and loss 332 1,891
Loans and borrowings 7,039 7,039
Deferred revenue 134 131
-------------------------------------------------- ------- -------
Total current liabilities 16,923 16,075
-------------------------------------------------- ------- -------
Total liabilities 128,621 143,354
-------------------------------------------------- ------- -------
Total equity and liabilities 208,134 214,877
-------------------------------------------------- ------- -------
These financial statements were authorised for issue and
approved by the Board of Directors on 14 June 2011 and were signed
on its behalf by:
Richard Ruebe
Director
GTL Resources PLC
Registered Company number: 2811366
consolidated statement of cash flows
2011 2010
for the year ended 31 March 2011 $000 $000
----------------------------------------------- -------- --------
Cash flows from operating activities
Profit/(loss) for the period 7,884 14,660
Adjustments for:
Depreciation and amortization 11,921 11,858
Deferred revenue recognised (134) (131)
Loss on disposal of assets 319 83
Net finance expense 6,253 7,540
Share-based payment transactions 106 37
Income tax expense/(credit) 4,100 (162)
----------------------------------------------- -------- --------
Cash flows from operating activities 30,449 33,885
Change in inventories (5,335) 602
Change in trade and other receivables (500) (288)
Change in other current assets 212 (432)
Change in trade and other payables (excluding
accrued interest) 2,438 48
----------------------------------------------- -------- --------
Post working capital cash flows from operating
activities 27,264 33,815
Interest paid (7,876) (9,500)
Income tax received/(paid) - 162
----------------------------------------------- -------- --------
Net cash from operating activities 19,388 24,477
----------------------------------------------- -------- --------
Cash flows from investing activities
Interest received 31 28
Acquisition of property, plant and equipment (4,924) (1,691)
Investments (510) -
Other financial asset deposits 3,835 (13,686)
----------------------------------------------- -------- --------
Net cash from investing activities (1,568) (15,349)
----------------------------------------------- -------- --------
Cash flows from financing activities
Proceeds from new borrowings - 14,613
Proceeds from grant award 459 -
Repayment of finance leases - (133)
Distribution to non-controlling interest - (133)
Repayment of borrowings (20,000) (23,719)
----------------------------------------------- -------- --------
Net cash from financing activities (19,541) (9,372)
----------------------------------------------- -------- --------
Net decrease in cash and cash equivalents (1,721) (244)
Cash and cash equivalents at beginning of the
year 8,616 8,860
----------------------------------------------- -------- --------
Cash and cash equivalents at end of the year 6,895 8,616
----------------------------------------------- -------- --------
Notes to audited results
for the year ended 31 March 2011
1. Basis of preparation
The financial information set out above has been extracted from
the Company's statutory accounts which have been prepared in
accordance with International Financial Reporting Standards,
International Accounting Standards and Interpretations
(collectively "IFRS") issued by the International Accounting
Standards Board ("IASB") as adopted by European Union.
The financial information set out above does not constitute the
Company's statutory accounts for the years ended 31 March 2011 or
2010 but is derived from those accounts. Statutory accounts for
2010 have been delivered to the registrar of companies, and those
for 2011 will be delivered in due course. The auditors have
reported on those accounts; their reports were (i) unqualified, and
(ii) did not include a reference to any matters to which the
auditors drew attention by way of emphasis without qualifying their
report and (iii) did not contain a statement under sections 498 (2)
or (3) of the Companies Act 2006 in respect of the accounts for
2010 or 2011.
Other than described in note 2 below, the accounting policies
adopted are consistent with those described in the annual financial
statements for the year ended 31 March 2010. There have been no
significant changes in the basis upon which estimates have been
determined, compared to those applied at 31 March 2010 and no
change in estimate has had a material effect on the current
period.
2. Changes in accounting policies
The following standards that have an effect on the group have
been applied from 1 April 2010
-- IAS 27 (Revised) Consolidated and separate financial
statements
-- IFRS 3 (Revised) Business combinations
The adoption of the above has not had a significant impact on
the Group's profit or equity for the period.
3. Exceptional Item - Business Interruption Claim
Business interruption insurance proceeds are recorded as an
exceptional credit within administrative expenses. On 5 October
2009, a fire occurred at GTL's plant during its regular maintenance
shutdown, which impacted approximately half of the plant's
production capacity for approximately 43 days. The plant has now
fully recovered from this incident. Losses incurred due to the
repair and replacement of the damaged equipment, and business
interruption losses, were covered by insurance policies. The Group
received the final business interruption insurance claim
reimbursements of $1.7 million in fiscal 2011. The aforementioned
$1.7 million is reflected as Administrative - exceptional in the
Consolidated statement of comprehensive income as was the initial
$1.5 million claim reimbursements recorded in fiscal 2010. The
claim has been settled in full and has been closed.
4. Earnings per share
Basic earnings per share
The calculation of basic earnings per share was based on the
profit attributable to ordinary shareholders and a weighted average
number of ordinary shares outstanding, calculated as follows:
Profit attributable to ordinary shareholders
2011 2010
$000 $000
--------------------------------------------- ------ ------
Profit attributable to ordinary shareholders 6,175 12,677
--------------------------------------------- ------ ------
Weighted average number of ordinary shares
--------------------------------------------- ------ ------
2011 2010
000 000
--------------------------------------------- ------ ------
Issued ordinary shares at 1 April 31,989 31,989
Issued/repurchased - -
--------------------------------------------- ------ ------
Weighted average number of ordinary shares 31,989 31,989
--------------------------------------------- ------ ------
Earnings per share $0.19 $0.40
--------------------------------------------- ------ ------
Diluted earnings per share
The calculation of diluted earnings per share was based on
profit attributable to the weighted average number of ordinary
shares outstanding after factoring in an adjustment for the effect
of all dilutive share options in GTL Resources PLC. The calculation
is as follows:
Profit attributable to ordinary shareholders (diluted)
2011 2010
$000 $000
----------------------------------------------------- ------ ------
Profit attributable to ordinary shareholders
(diluted) 6,175 12,677
----------------------------------------------------- ------ ------
Weighted average number of ordinary shares (diluted)
----------------------------------------------------- ------ ------
2011 2010
000 000
----------------------------------------------------- ------ ------
Weighted average number of ordinary shares 31,989 31,989
Effect of share options on issue 433 245
----------------------------------------------------- ------ ------
Weighted average number of ordinary shares (diluted) 32,422 32,234
----------------------------------------------------- ------ ------
Diluted earning per share $0.19 $0.39
----------------------------------------------------- ------ ------
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GGUGGQUPGGQC
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