TIDMGEL
RNS Number : 5851W
Greka Engineering & Technology Ltd
28 April 2016
28 April 2016
GREKA ENGINEERING & TECHNOLOGY LTD.
("Greka Engineering" or the "Company")
Final Results
Greka Engineering & Technology Ltd. (AIM: GEL), the
unconventional gas sector engineering and technology business with
pipeline, gas compression and power generation assets in China,
announces its financial results for the year ended 31 December
2015.
CORPORATE HIGHLIGHTS
-- A total of 159 customers in China at the end of 2015, a 6%
increase over the 150 customers as at 31 December 2014
-- Signed new power line construction contract with China United
Coalbed Methane Corporation ("CUCBM")
-- Signed framework agreement with CUCBM for power supply,
covering all well groups of CUCBM powered or to be powered
-- Optimized compressor layout to maximize single well
production and keep optimum casing pressure well production
-- No lost time due to injury or accident in 2015
OPERATIONAL HIGHLIGHTS
-- Total sales of 47 gas station refuelling equipment items in 2015
-- 10 SCADA systems were sold in 2015
-- Full year 2015 gas processed was 1.4 Bcf (40 million cubic
meters), as compared to 1.1 Bcf in 2014 (31.6 million cubic
metres), of which delivered volumes were 1.2 Bcf (35 million cubic
metres), as compared to 0.98 Bcf in 2014 (27.7 million cubic
metres). Consumed volume for power generation during 2015 was 0.2
Bcf (4.9 million cubic metres)
-- A total of 17,160Mwh was generated in 2015 (2014: 13,853 Mwh)
and consisted of: 13,361 Mwh of sales (2014:10,916 Mwh) and 3,799
Mwh was utilized for operations.
-- 27km of gas gathering pipelines were constructed during the
year bringing a total of 68km at year end
-- 8km of power lines built in 2015 expanding power network to 80km
FINANCIAL HIGHLIGHTS
-- Revenue of US$5.2 million (2014: US$5.2 million)
-- Cash and bank deposits of US$3.2 million at 31 December 2015 (2014: US$2.6 million)
Randeep S. Grewal, Executive Chairman of Greka Engineering,
commented:
"2015 was a year of achievements for the Company with milestones
across all business units. Going forward we expect to capitalize on
the momentum created during 2015 in improving our gathering
infrastructure, expanding our power generation foot print and
delivering innovative solutions for our clients."
For more information of Greka Engineering, please visit the
Company's website at www.grekaengineering.com or contact:
Greka Engineering
Betty Cheung,
Director Corporate Affairs +852 3710 0088
Smith & Williamson
Nominated Adviser
Dr Azhic Basirov / David Jones / Ben
Jeynes +44 20 7131 4000
About Greka Engineering & Technology
Greka Engineering & Technology Ltd., (AIM; GEL) was demerged
from Green Dragon Gas Ltd. (AIM; GDG) via a dividend in specie and
was admitted to trading on AIM in September 2013.
Greka Engineering offers turnkey solutions to over 100 upstream,
midstream and downstream gas suppliers. The Company's technologies
include Compressed Natural Gas/Liquefied Natural Gas (CNG/LNG)
compressor equipment, CNG retail dispenser equipment and coal bed
methane ("CBM") wellhead extraction technologies. The Company also
supplies proprietary Integrated Circuit Card Point of Sale (ICC
POS) and Supervisory Control and Data Acquisition (SCADA) software
and hardware solutions for the remote management of transmission
systems, power facilities, vehicle management and retail
services.
In addition, the Company invests in, operates and maintains
wholly owned assets for its customers in return for service
contracts based on the volume management.
The Company has historically completed several Engineering,
Procurement, Construction and Management (EPCM) contracts including
the design, construction and management of gas gathering systems, a
gas pipeline in Shanxi Province to the China West-East pipeline,
the installation and commissioning of a 10MW gas-fired power
facility in the Shanxi province and the construction of CNG retail
stations.
Chairman's Statement
2015 was a significant year for Greka Engineering. In a
demanding economic environment and with continued low oil prices,
we took this opportunity to optimize our business units, expand our
gas gathering systems and focus on our proven business model of
steady toll based revenue though high quality infrastructure
assets. The Company realized revenues of US$5.2 million in 2015, in
line with 2014, while the loss for the year of US$1.4 million was
reduced from the US$1.7 million loss in 2014.
Our high quality infrastructure assets of CBM field compressors,
pipeline gathering systems and integrated production facility (IPF)
continues to provide scope for our Company to deliver stable
revenue growth. Gas sales during the year were up 22% year on year
to 1.2 Bcf (35 million cubic meters) compared with gas sales of
0.98 Bcf (27.7 million cubic meters) in 2014. Power sales also
increased 22% to 13,361 Mwh in 2015 (2014: 10,916 Mwh).
In total 46 new wells were connected into the Company's gas
gathering system and a total of 27km of new pipeline were installed
in 2015, bringing the cumulative gas gathering pipeline network
length to 68km by year end. A technical review of our gathering
system was taken during the period and an optimization plan was
carried out during the year. This plan included the construction of
17 micro casing pressure production pumps and the installation of
23 pumping units at strategic locations. As at 31 December 2015,
there were a total of 39 casing pressure production pumps installed
dedicated to delivering gas from Green Dragon Gas Ltd.'s ("Green
Dragon Gas") wells into our production facilities.
Within the power generation division, the Company installed 8km
of power lines and connected 23 additional Green Dragon Gas wells
to the power grid. We also constructed 0.45km of power lines to
service 5 CUCBM valve groups during 2015. Following our successful
power supply pilot program with CUCBM, CUCBM signed a Power Supply
Framework contract to connect their wells into our power grid and
for Greka Engineering to provide electricity to power their wells.
By year end a total of 7 valve groups relating to 89 wells had been
connected and supplied with power. It is expected that all 400
wells of CUCBM will eventually be connected to our power grid, with
approximately 200 wells to be connected during 2016.
The technology division completed 10 wellhead SCADA systems, 1
CNG retail station SCADA system and 17 compressor SCADA systems
during 2015.
The manufacturing division sold 47 sets of refuelling equipment
- which included 35 sets of CNG/LNG dispensers, 6 cylinders and 6
un-loading cylinders. Additionally, 5 sets of dispensers were
leased out to retail station together with compressor and gas
storage served as a package. 17 new wellhead compressors were
manufactured, delivered and installed in field as part of the gas
gathering system optimization work.
As a technology company, we understand the need to constantly
innovate and bring new ideas to service our clients' needs. In 2015
we embarked on two new research and development projects.
We are in development of a new compressor with better efficiency
and stability which will translate to increased gas production for
our clients. This technology is expected to revolutionize our
product offering and we expect to grow our client base
significantly.
We completed our LNG pump skid prototype and hope for it to
enter the market during 2016 following a six month trial
programme.
Finally, in 2013 the Company began research on a four-line
dispenser. In 2015 we expanded the project and have entered into a
formal cooperation agreement with Enric to jointly develop a
compression-free CNG Retail Station. This new technology will
revolutionize the CNG retail industry.
2015 was a year of achievements for the Company with milestones
across all business units. Going forward we expect to capitalize on
the momentum created during 2015 in improving our gathering
infrastructure, expanding our power generation foot print and
delivering innovative solutions for our clients.
Despite our progress during 2015, we note the Company's
continued poor share price performance and the lack of liquidity in
its shares, and are considering whether the costs of maintaining
its listing on AIM are justified by the benefits the listing
brings. An update on this matter will be announced in due
course.
Randeep S. Grewal
Chairman
27 April 2016
Consolidated Statement of Comprehensive Income
Year ended Year ended
31 December 31 December
Notes 2015 2014
US$'000 US$'000
Audited Audited
------------------------------------------ ------- --------------------- ----------------------
Revenue 2 5,188 5,233
Cost of sales (3,808) (4,083)
------------------------------------------ ------- --------------------- ----------------------
Gross profit 1,380 1,150
Selling and distribution (152) (294)
Administrative expenses (2,717) (2,831)
Other operating loss (55) 9
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------------------------------------------ ------- --------------------- ----------------------
Total administrative expenses (2,924) (3,116)
Loss from operations (1,544) (1,966)
Finance income 4 3 2
Finance costs 4 (40) (58)
------------------------------------------ ------- --------------------- ----------------------
Loss before income tax (1,581) (2,022)
Income tax credit 6 112 78
------------------------------------------ ------- --------------------- ----------------------
Loss for the year from continuing
operations (1,469) (1,944)
Profit from discontinuing operations 7 52 241
------------------------------------------ ------- --------------------- ----------------------
Loss for the period (1,417) (1,703)
Other comprehensive(expense)income
that may be reclassified subsequently
to profit or loss:
Exchange differences on translation
foreign operations (1,326) (95)
------------------------------------------ ------- --------------------- ----------------------
Total comprehensive losses for
the period (2,743) (1,798)
------------------------------------------ ------- --------------------- ----------------------
Loss attributable to:
- Owners of the company (1,417) (1,703)
------------------------------------------ ------- --------------------- ----------------------
Total comprehensive income attributable
to:
- Owners of the company (2,743) (1,798)
------------------------------------------ ------- --------------------- ----------------------
Basic and diluted loss per share
attributable to owners of the
company arising from:
- Continuing operations (cents) 5 (0.36) (0.47)
- Discontinuing operations (cents) 5 0.01 0.05
Total (0.35) (0.42)
------------------------------------------ ------- --------------------- ----------------------
Consolidated Statement of Financial Position
As at 31 As at 31
December December
2015 2014
US$'000 US$'000
Notes Audited Audited
-------------------------------------- ------ -------------------- ---------------
ASSETS
Non-current Assets
Property, Plant and Equipment 20,695 20,738
Intangible assets 1,407 1,901
22,102 22,639
-------------------------------------- ------ -------------------- ---------------
Current assets
Inventories 1,103 1,978
Trade and other receivables 3,666 9,731
Cash and cash equivalents 3,214 2,626
-------------------------------------- ------ -------------------- ---------------
7,983 14,335
-------------------------------------- ------ -------------------- ---------------
Assets held for sale - 1,753
-------------------------------------- ------ -------------------- ---------------
Total assets 30,085 38,727
-------------------------------------- ------ -------------------- ---------------
LIABILITIES
Current liabilities
Trade and other payables 2,156 3,830
Loans and borrowings 8 616 4,706
Current tax liabilities - 12
-------------------------------------- ------ -------------------- ---------------
2,772 8,548
Non current liabilities
Deferred taxation liabilities 352 475
352 475
-------------------------------------- ------ -------------------- ---------------
TOTAL LIABILITIES 3,124 9,023
-------------------------------------- ------ -------------------- ---------------
Total net assets /(liabilities) 26,961 29,704
-------------------------------------- ------ -------------------- ---------------
Capital and reserves
Share capital 4 4
Share premium account 35,949 35,949
Foreign exchange reserve (786) 540
Accumulated losses (8,206) (6,789)
-------------------------------------- ------ -------------------- ---------------
Total equity/(deficit) attributable
to owners of the Company 26,961 29,704
Consolidated Statement of Changes in Equity
Foreign
Share Share exchange Accumulated
capital premium reserve losses Total
US$'000 US$'000 US$'000 US$'000 US$'000
---------------------------- --------- --------- ---------- ------------ --------
At 1 January 2014 4 35,949 635 (5,086) 31,502
Loss for the year - - - (1,703) (1,703)
Other comprehensive
income:
- Exchange difference
on translation of foreign
operations - - (95) (95)
---------------------------- --------- --------- ---------- ------------ --------
Total comprehensive
income for the year - - (95) (1,703) (1,798)
At 31 December 2014 4 35,949 540 (6,789) 29,704
---------------------------- --------- --------- ---------- ------------ --------
Loss for the year - - - (1,417) (1,417)
Other comprehensive
income:
- Exchange difference
on translation of foreign
operations - - (1,326) - (1,326)
---------------------------- --------- --------- ---------- ------------ --------
Total comprehensive
income for the year - - (1,326) (1,417) (2,743)
At 31 December 2015 4 35,949 (786) (8,206) 26,961
---------------------------- --------- --------- ---------- ------------ --------
The following describes the nature and purpose of each reserve
within owners' equity.
-- Share capital: Amount subscribed for share capital at nominal value.
-- Share premium: Amount subscribed for share capital in excess
of nominal value, including capital contributions
-- Foreign exchange reserve: Foreign exchange differences
arising on translating the results, assets and liabilities of
foreign operations into the reporting currency.
-- Accumulated losses: Cumulative net gains and losses recognized in profit or loss.
Consolidated Statement of Cash Flows
Year ended Year ended
31 December 31 December
2015 2014
US$'000 US$'000
Audited Audited
---------------------------------------- ---------------------- ----------------------
Operating activities
(Loss) / Profit before income
tax (1,581) (2,022)
Loss before tax from discontinuing
operations 52 241
----------------------------------------- ---------------------- ----------------------
(1,529) (1,781)
Adjustments for:
Depreciation 1,205 1,022
Amortisation of other intangible
assets 495 495
Loss on disposal of property,
plant and equipment 60
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Finance income (3) (2)
Finance costs 40 58
----------------------------------------- ---------------------- ----------------------
Operating cash flows before
changes in working capital 268 (208)
Movement in inventories 530 (93)
Movement in trade and other
receivables 139 208
Movement in trade and other
payables 1,369 (549)
----------------------------------------- ---------------------- ----------------------
Cash generated(utilized by)
/ generated from operations 2,306 (642)
Income tax payment 112 78
----------------------------------------- ---------------------- ----------------------
Net cash generated (utilized
by) / generated from operating
activities 2,418 (564)
----------------------------------------- ---------------------- ----------------------
Investing activities
Payments for purchase of property,
plant and equipment (1,950) (206)
Interest received 3 2
Net cash used in investing activities (1,947) (204)
----------------------------------------- ---------------------- ----------------------
Financing activities
Proceeds from the issue of share,
net of issue costs
Proceeds of short term loan 642 650
Repayment of short term loan (642) (650)
Finance costs paid (40) (58)
Net cash (used in)/from financing
activities (40) (58)
----------------------------------------- ---------------------- ----------------------
Net (decrease)/increase in cash
and cash equivalents 431 (826)
Cash and cash equivalents at
the beginning of the year 2,626 3,494
----------------------------------------- ---------------------- ----------------------
3,057 2,668
Effect of foreign exchange rate
changes 157 (42)
----------------------------------------- ---------------------- ----------------------
Cash and cash equivalents at
end of year 3,214 2,626
========================================= ====================== ======================
Notes to the financial information for the year ended 31
December 2015
1. PRINCIPAL ACCOUNTING POLICIES
Basis of preparation
The financial statements have been prepared in accordance with
IFRSs as adopted by the European Union, that are effective for
accounting periods beginning on or after 1 January 2015. The
principal accounting policies adopted in the preparation of the
financial statements are set out in the Group's full annual report
and accounts for the year ended 31 December 2015.
2. REVENUE AND SEGMENT INFORMATION
The Group determines its operating segments based on reports,
reviewed by the chief operating decision-makers ("CODMs"), which
are also used to make strategic decisions.
The Group reports its operations as two reportable segments: gas
equipment sales and the provision of contract infrastructure
services in the PRC. The division of the engineering and technology
operations into two reportable segments is reflective of how the
CODMs manage the business.
The accounting policies of the reportable segments are the same
as those described in the summary of principal accounting policies.
We evaluate the performance of our operating segments based on
revenues from external customers and segmental profits.
Year Ended 31 December 2015
Consolidated
Gas equipment Infrastructure from continuing
sales services Intercompany operations
US$'000 US$'000 US$'000 US$'000
--------------------- -------------- --------------- ------------- -----------------
Revenue 1,555 4,289 (656) 5,188
Cost of sales (1,069) (3,229) 490 (3,808)
Gross profit/(loss) 486 1,060 (166) 1,380
Loss before tax (1,348) (67) (166) (1,581)
As at 31 December 2015
Transportation
Services
Gas equipment Infrastructure (Discontinued
sales services Operations) Intercompany Consolidated
US$'000 US$'000 US$'000 US$'000 US$'000
--------------------- -------------- --------------- --------------- ------------- -------------
Segment assets 7,404 24,448 (1,767) 30,085
Segment liabilities 1,498 1,626 3,124
The results of transportation services have been disclosed
within Note 7.
Year Ended 31 December 2014
Gas equipment Infrastructure Intercompany Consolidated
sales services from continuing
operations
--------------- -------------- ----------------- -------------- -----------------
US$'000 US$'000 US$'000 US$'000
Revenue 1,973 3,734 (474) 5,233
Cost of sales (1,488) (3,069) 474 (4,083)
Gross profit 485 665 - 1,150
Loss before
tax (1,628) (394) - (2,022)
As at 31 December 2014
Transportation
Services
Gas equipment Infrastructure (Discontinued
sales services Operations) Intercompany Consolidated
------------------------- -------------- ------------------ ---------------- ------------- --------------
Segment assets 5,773 32,632 1,753 (1,431) 38,727
Segment liabilities 11,024 35,321 - (37,322) 9,023
Gas equipment sales represent the net invoiced value of gas
equipment sales provided to 15 (2014:73) customers for the year.
Infrastructure services represent sales to wholly owned
subsidiaries of the Green Dragon Gas group and the Greka Drilling
Limited group.
3. LOSS FROM OPERATIONS
Loss from continuing operations is stated after charging:
2015 2014
US$'000 US$'000
Auditor's remuneration 46 34
Staff costs 1,585 1,454
Depreciation of property, plant
and equipment 1,205 1,022
Amortisation of intangible assets 495 495
Operating lease expense (property) 97 126
4. FINANCE INCOME / EXPENSES
2015 2014
US$'000 US$'000
Bank interest income 3 2
-------------------------- -------------- --------------
Bank interest expenses 40 58
-------------------------- -------------- --------------
5. LOSS PER SHARE
The calculation of the basic and diluted earnings per share
attributable to the owners of the Company is based on the following
data:
2015 2014
US$'000 US$'000
Loss for the year
- Continuing operations (1,469) (1,944)
- Discontinuing operations 52 241
---------------------------------------- -------------------- ------------------
Loss for the purpose of basic and
diluted loss per share (1,417) (1,703)
---------------------------------------- -------------------- ------------------
Denominators
Number of shares used in basic and
diluted loss calculations 409,622,133 409,622,133
Effect of potential dilutive ordinary
shares (thousands)
- options
---------------------------------------- -------------------- ------------------
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Basic and diluted loss per share
(cents)
- Continuing operations (0.36) (0.47)
- Discontinuing operations 0.01 0.05
---------------------------------------- -------------------- ------------------
There were no potentially dilutive instruments in 2015 and 2014.
The basic and diluted loss per share are equal as the Company has
no dilutive instruments. There have been no shares or potentially
dilutive instruments issued between year-end and the date these
financial statements were approved.
6. TAXATION
2015 2014
US$'000 US$'000
Current tax
Charges for current year 12 46
Deferred tax liabilities
Under provision of prior year (124) (124)
-------------------------------- --------------- --------------
Income tax credit (112) (78)
-------------------------------- --------------- --------------
The reasons for the difference between the actual tax charge for
the years presented and the standard rate of corporation tax in the
PRC, as the primary operating environment, applied to the loss for
the years presented are as follows:
2015 2014
US$'000 US$'000
Loss before income tax (excluding
discontinued activities) (1,581) (2,022)
Profit/(loss) before income tax -
discontinued operations 52 241
Loss before income tax (1,529) (1,781)
Expected tax credit based on the standard
rate of corporation tax in the PRC
of 25% (2014: 25%) (382) (445)
Effect of:
Tax effect of revenue not taxable
for tax purposes 22
Tax effect of expenses not deductible
for tax purposes
Tax losses not recognized 273 345
------------------------------------------- -------------- -------------
Income tax charge (112) (78)
------------------------------------------- -------------- -------------
The Company is incorporated in the Cayman Islands and is not
subject to income tax. The primary operating companies are
incorporated in the PRC and are subject to 25% tax rates. The group
has unrecognised losses of $418,074 (2014: $1,274,075) which are
not recognised given uncertainties in future taxable profits. These
tax losses expire in 5 years.
7. ASSETS HELD FOR SALE / DISCONTINUED OPERATIONS
The strategy of the Greka Engineering is to develop its
engineering and technology operations. In order to focus on the
delivery of this strategy, prior to the demerger from Green Dragon
Gas Ltd, during 2012 one of the Company's subsidiaries agreed a
proposal to sell its non-core transportation operations to
subsidiaries being retained within the Green Dragon Gas Ltd group
following the demerger. Subsequently, it entered a legal agreement
with Green Dragon Gas Limited on 1 July 2013 to dispose of motor
vehicles and equipment for $1,753,357 of cash consideration in line
with the previously agreed proposals. The completion of the
transaction was subject to obtaining necessary legislative
approvals which delayed the ultimate transaction. During the year
on 31 October 2015, the company completed above transaction and the
Group's transport operations were disposed to Green Dragon Gas
Limited. The consideration was increased to $1,876,000 with the
remaining $123,000 recorded as a related party receivable
The following table summarises the gain/loss on disposal
US$'000
-------------------------------- --------
Consideration received 1,876
-------------------------------- --------
Less: Net book value of assets (1,876)
-------------------------------- --------
Gain on disposal -
-------------------------------- --------
The profit on discontinued operations in the Consolidated
Statement of Comprehensive Income can be analysed, as follows:
2015 2013
US$'000 US$'000
Transportation service revenue 128 387
Cost of sales (76) (146)
Profit/(Loss) before and after
taxation 52 241
-------------------------------- ------------------- ------------------
The Consolidated Statement of Cash Flows contains the following
elements related to discontinuing operations:
2015 2013
US$'000 US$'000
Net cash flows attributable to
operating activities 52 241
8. LOANS AND BORROWINGS
2015 2014
US$'000 US$'000
Loans and borrowing - secured 616 4,706
------------------------------- -------------- --------------
Included within loans and borrowings is a bank loan of
US$615,991 (2014: $653,702) which is secured by buildings and
structures with a book value of US$1,066,000(2014:
US$1,197,330).
9. PUBLICATION OF NON-STATUTORY ACCOUNTS
The financial information for the years ended 31 December 2015
and 31 December 2014 set out in this announcement does not
constitute the Group's (being Greka Engineering and its
subsidiaries) statutory financial information but is extracted from
the audited financial statements for those years. The auditors have
reported on the full accounts for both periods and their reports
were unqualified and did not include references to any matters to
which the auditors drew attention by way of emphasis without
qualifying their reports.
10. ANNUAL REPORT
The Company's Annual Report and copies of this announcement will
be available in due course on the Company's website at
www.grekaengineering.com and from the office of the Company's
Nominated Adviser, Smith & Williamson Corporate Finance Limited
at 25 Moorgate, London EC2R 6AY, United Kingdom.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UBRURNRASUUR
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Greka Engineer. (LSE:GEL)
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から 5 2024 まで 6 2024
Greka Engineer. (LSE:GEL)
過去 株価チャート
から 6 2023 まで 6 2024
