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Hurricane Energy loss after tax 3.2 million pounds

Staff writer ▼ | September 24, 2015
Hurricane Energy plc reported interim report the first half of 2015. The group’s operating expenses were £3.1 million (H1 2014: £4.9 million).
Hurricane Energy
Hurricane Energy plc   The decrease in operating expenses
The decrease is primarily driven by the reduction in advisor fees that were incurred in early 2014 as part of the Group’s initial public offering (IPO). There has been a reduction in the total employment costs of the business from £4.4 million in H1 2014 to £3.0 million in H1 2015 due to a decrease in staff numbers.

This decrease includes a lower share-based payment expense of £1.4 million (H1 2014: £2.1 million).

The group recorded a loss after tax of £3.2 million, which is a significant decrease in the H1 2014 loss after tax of £7.3 million. In addition to the reductions in operating expenses in H1 2015, the effects of foreign exchange rates on the Group’s cash held in US Dollars decreased significantly.

The reduction in amounts held in US Dollars has minimised the Group’s exposure to fluctuations in exchange rates. In addition the convertible loan notes were converted at the time of the company’s admission to AIM in February 2014 and therefore £0.5 million of interest expense in H1 2014 was not incurred in H1 2015.

Net cash outflow from operating activities of £1.9 million were lower than H1 2014 (£2.3 million), as general and administration (G&A) cash costs for running the business were reduced.

Expenditure on intangible exploration and evaluation assets in the period amounted to £1.6 million (H1 2014: £15 million) and primarily related to further analysis of the recent Lancaster well results and refining the development concepts for an EPS on Lancaster.

The Group ended the period with £10.1 million of cash and cash equivalents (excluding £2.3 million held in escrow) available to meet its outstanding trade and other payables of £0.7 million at June 30, 2015 and prospective G&A costs for at least the next twelve months based on the Group’s cash flow forecasts.

However further funding will be required for future exploration and appraisal activities on the Group’s licences.