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Unaudited interim results for the six months ended 31 August 2009

SacOil Holdings limited

Formerly SA Mineral Resources Corporation Limited

Registration No 1993/000460/06

Share code: SCL

ISIN Number: ZAE000127460

Incorporated in the Republic of South Africa

(“SacOil Holdings” or “the Company”)

Unaudited interim results for the six months ended 31 August 2009

Income statement

Unaudited six months to 31 Aug 2009 R 000`s

Unaudited six months to 31 Dec 2008 R 000`

Audited eight months to 28 Feb 2009 R 000`s

Revenue

16,106

16,730

20,802

Cost of sales

(10,051)

(13,611)

(16,395)

Gross profit

6,055

3,119

4,407

Operating costs

(4,914)

(5,623)

(7,850)

Profit/(loss)

from operations

1,141

(2,504)

(3,443)

Share based payment expense

(23,754)

Impairment loss

(383)

Investment income

327

423

557

Interest paid

(1)

(93)

(93)

Profit/(loss) before tax

1,467

(2,174)

(27,115)

Taxation

Profit/(loss) after tax

1,467

(2,174)

(27,115)

Weighted

average number of shares (000’)

313,293

313,293

313,293

Profit/(loss) per share (cents)

0.47

(0.69)

(8.65)

Diluted profit/(loss) per share (cents)

0.47

(0.69)

(8.64)

Reconciliation of headline earnings:

Profit/(loss) attributable

to shareholders

1,467

(2,174)

(27,115)

Headline profit/(loss)

1,467

(2,174)

(27,115)

Headline profit/(loss) per share (cents)

0.47

(0.69)

(8.65)

Diluted

headline profit/(loss) per share (cents)

0.47

(0.69)

(8.64)

Balance sheet

31 Aug 2009 R000’s

31 Dec 2008 R000’s

28 Feb 2009 R000’s

Assets

Non-current assets

7,784

36,176

7,709

Property, plant and equipment

4,785

5,119

4,838

Loans receivable

2,999

31,057

2,871

Current assets

41,210

13,764

40,369

Loans receivable

27,867

27,867

Inventory

2,199

1,603

2,048

Trade

accounts receivable

5,399

3,868

2,628

Sundry

accounts receivable

368

800

970

Cash and

cash equivalents

5,377

7,493

6,856

Total assets

48,994

49,940

48,078

Equity and liabilities

Equity attributable to equity holders

42,532

42,252

41,064

Stated capital

83,726

83,726

83,726

Share Based

payment reserve

23,754

23,754

Accumulated loss

(64,948)

(41,474)

(66,415)

Non-current liabilities

(64,948)

(41,474)

(66,415)

Non-current liabilities

1,075

3,189

706

Long term liabilities

310

2,503

Provision for

environmental rehabilitation

765

686

706

Current liabilities

5,387

4,499

6,308

Loans payable

2,503

2,503

Accounts payable

2,643

4,358

3,537

Sundry

accounts payable

241

141

268

Total equity

and liabilities

48,994

49,940

48,078

Number of shares in issue (000)

313,293

313,293

313,293

Net asset value per share (cents)

13.58

13.49

13.11

Cash flow statement

Six months to 31 Aug 2009 R000’s

Six months to 31 Dec 2008 R000’s

Six months to 28 Feb 2009 R000’s

Cash (utilised) operating activities

(1,723)

(1,414)

(2,155)

Investment income

198

423

494

Interest paid

(1)

(93)

(93)

Net cash flows from operating activities

(1,526)

(1,084)

(1,754)

Net cash flows from investing activities

(263)

(52)

(19)

Net cash flows from financing activities

310

(3,190)

(3,190)

Net

(decrease)/increase in cash and cash equivalents

(1,479)

(4,326)

(4,963)

Cash and cash

equivalents

at the beginning of the year

6,856

11,819

11,819

Cash and cash

Equivalents at

the end of the year

5,377

7,493

6,856

Statement of changes in equity

Six months to 31 Aug 2009 R000’s

Six months to 31 Dec 2008 R000’s

Six months to 28 Feb 2009 R000’s

Stated Capital

Opening balance

83,726

83,726

83,726

Closing balance

83,726

83,726

83,726

Share based

Payment reserve

Opening balance

23,754

Share based

payment expense

23,754

Closing balance

23,754

23,754

Accumulated loss

Opening balance

(66,415)

(39,300)

(39,300)

Net profit/(loss) for the year

1,467

(2,174)

(27,115)

Closing balance

(64,948)

(41,474)

(66,415)

1. Basis of preparation

The interim financial statements of the group for the six months ended 31 August 2009 have been prepared in accordance with the group`s accounting policies, which comply with International Financial Reporting Standards and are consistent with those of the previous year. This interim report complies with International Accounting Standard 34 – Interim Financial Reporting. They have been prepared on a going concern basis. Comparative information represents interim results for the six months to 31December 2008. The company changed its year end from June to February during the period under review. The comparative amounts are therefore not entirely comparable. All monetary information and figures presented in these interim financial statements are stated in thousands of Rand (R`000), unless otherwise indicated.

2. Commentary on the results

Earnings of 0, 47 (2008: loss of 0, 69) cents, headline earnings of 0, 47 (2008: loss of 0,69) cents and a net asset value of 13,58 (2008: 13,49) cents per share were reported.

The Company managed to trade out of a loss of 8, 65 cents per share for the eight months ended 28 February 2009 into earnings of 0, 47 cents per share for the six months to 31 August 2009. Of this increase of 9, 12 cents, 7, 58 cents relates to a share based payment expense in an amount of R23 754 million that was recognised in the results for the eight months ended 28 February 2009.The Greenhill’s plant managed to increase sales levels significantly. Export sales increased as well as orders from the Company`s anchor client. Margins increased as a result of improved financial management including a new stock costing system to ensure effective control over stock levels, improved control over expenses, regular reviews of prices on raw materials and consumables without compromising on the quality of these products and quarterly reviews of selling prices.

During November 2008 expenses paid by SacOil Holdings on behalf of Pioneer Coal Limited (“Pioneer”) in an amount of R1,19 million were debited to a loan account. A further loan was made in December 2008, in an amount of R2 million. The purpose of these loans is to provide Pioneer with seed capital to set up the company as a coal exploration company. These loans are interest free for a period of one year and have no fixed repayment terms.

3. Investment in South Africa Congo Oil Company (Proprietary) Limited

(“SacOil”) Following previous announcements regarding the company`s investment in South Africa Congo Oil Company (Proprietary) Limited, the date for fulfilment of the conditions precedent to the agreements referred to therein has been extended to 31 January 2010. The last condition outstanding is the receipt of Presidential Decree on the oil exploration assets from the President of the Democratic Republic of the Congo.

Following meetings with the relevant authorities, the directors are confident this condition will be fulfilled by 31 January 2010.

4. Dividend

The board has resolved not to declare any dividend to shareholders for the period under review.

5. Changes to the board

In compliance with section 3.59 of the Listings Requirements of the JSE Limited, Mr R Vela`s designation on the SacOil board has been changed from executive director to financial director with effect from 7 May 2009. Mr B Christie has resigned as non-executive director of the board of SacOil with effect from 1 September 2009. Mr G Moseneke was appointed as non-executive director with effect from 1 September 2009. Mr Moseneke will also serve on the audit committee of the company.

6. Future direction

Further to the company`s recent announcements with regard to its new focus on oil and gas, the company is actively and on a continuous basis evaluating and considering a number of producing and near producing oil and gas acquisition opportunities which could add value to its financial and technical resource base thereby enhancing shareholder returns. The company expects to make a further announcement shortly.

By order of the board

Melinda van den Berg

Fusion Corporate Secretarial Services (Proprietary) Limited

Company secretary

23 October 2009

Directors: RJ Linnell (Chairman), RT Vela (Executive)*

C Bird*, G Moseneke (*British)

Registered office: 119 Rosen Office Park,

37 Invicta Road, Midrand, 1685

Registered postal address: P.O. Box 8439, Halfway House, 1685

Sponsor: Sasfin Capital (a division of Sasfin Bank Limited)

Corporate Advisers: Lonsa Corporate Finance (Proprietary) Limited

Transfer secretaries: Link Market Services SA (Proprietary) Limited

Company secretary: Melinda van den Berg – Fusion Corporate Secretarial Services

(Proprietary) Limited

Date: 23/10/2009 07:05:01 Supplied by www.sharenet.co.za

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