Half-year Report

Indus Gas Limited

20 December 2024

 

Indus Gas Limited and its subsidiaries

("Indus" or the "Company")

Unaudited Condensed Consolidated Interim Financial

Statements for the six-month period ended 30 September 2024

Indus Gas Limited (AIM: INDI), an oil & gas exploration and development company, is pleased to report its interim results for the six-month period ending 30 September 2024.

Consolidated reported adjusted revenues, operating profit and profit before tax for the interim period ended 30 September 2024 were US$ 2.34m (US$ 26.18m interim 2023), US$ 1.24m (US$ 22.61m interim 2023) and US$ 1.24m (US$ 22.63m interim 2023), respectively.

The Company has continued to make provision for a notional deferred tax liability of US$ 0.61m (US$9.88m interim 2023), in accordance with IFRS requirements.

Production is from the SGL field as well as the SSF & SSG fields with all gas production from the three fields currently being sold to GAIL. As previously announced, GAIL has been off taking a lesser quantity of Gas since February 2024 on account of maintenance of the Gas Turbine of the ultimate Customer. 

As of today's date, the Company continues to see disruption to the quantity of gas supplied to its ultimate customer's power plant due to ongoing maintenance of the turbine at the plant. The Company will announce the PSC extension when granted. Due to the ongoing disruption of gas supply, the Company will seek further external funding and/or shareholder funding in near future if required.

As per the revised Domestic gas pricing Guidelines, sales gas price shall be 10 pct of monthly average of Indian crude basket as notified by PPAC on a monthly basis from 8th April 2023. The Gas sale price in the period ended September 2024 ranged from highest of US$ 8.90 per MMBTU to the lowest of US$ 7.85 per MMBTU.

Jonathan Keeling, Chairman of Indus Gas, commented:

"The Group is following up with GAIL through the operator for an increase in Gas off take."

For further information, please contact:

Indus Gas Limited

Jonathan Keeling [phone]

Executive Chairman

Strand Hanson Limited (Nominated & Financial Adviser and Broker)

Ritchie Balmer, Rory Murphy [phone]

Unaudited Condensed Consolidated Statement of Financial Position

(All amounts in US$, unless otherwise stated)

	Notes	As at 30 September 2024	As at 30 September 2023	As at 31 March 2024
		(Unaudited)	(Unaudited)	(Audited)
ASSETS
Non-current assets
Property, plant and equipment	6	1,302,111,915	1,257,875,924	1,291,623,066
Tax assets		783,134	1,427,667	763,236
Other assets		8,722	7,886	9,132
Total non-current assets		1,302,903,771	1,259,311,477	1,292,395,434
Current assets
Inventories		7,332,245	7,841,685	8,944,689
Trade and other receivables		310,041	5,689,457	621,664
Receivable from related party		109,268,500	106,832,686	107,305,566
Cash and cash equivalents		218,271	4,796,883	2,069,244
Total current assets		117,129,058	125,160,711	118,941,163
Total assets		1,420,032,829	1,384,472,188	1,411,336,597
LIABILITIES AND EQUITY
Shareholders' equity
Share capital		3,619,443	3,619,443	3,619,443
Additional paid-in capital		46,733,689	46,733,689	46,733,689
Currency translation reserve		(9,313,782)	(9,313,782)	(9,313,782)
Merger reserve		19,570,288	19,570,288	19,570,288
Retained earnings		303,657,986	295,579,974	303,018,938
Total shareholders' equity		364,267,624	356,189,612	363,628,576

(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

Unaudited Condensed Consolidated Statement of Comprehensive Income

(All amounts in US $, unless otherwise stated)

	Notes	Six months ended 30 September 2024		Six months ended 30 September 2023
		Unaudited		Unaudited
Revenue		2,336,556		26,180,911
Cost of sales		(651,992)		(3,184,107)
Administrative expenses		(440,812)		(385,179)
Profit from operations		1,243,752		22,611,625
Foreign exchange gain/(loss), net		714		21,869
Interest income		-		-
Profit before tax		1,244,466		22,633,494
Income taxes Provision for Deferred tax charge		(605,418)		(9,887,206)

Profit for the period (attributable                                                                                                                             639,048                              12,746,288

to the shareholder of the Group)
Total comprehensive income for the period (attributable to the shareholders of the Group)			639,048	12,746,288
Earnings per share		10
Basic			0.01	0.07
Diluted			0.01	0.07

(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

Unaudited Condensed Consolidated Statement of Changes in Equity

(All amounts in US $, unless otherwise stated)

	Common Stock Number   Amount			Additional paid-in capital	Currency translation reserve		Merger reserve	(Accumulated Profits)/ Retained earnings	Total stockholders' equity
Balance as at 1 April 2024	182,973,924		3,619,443	46,733,689	(9,313,782)	19,570,288		303,018,938	363,628,576
Profit for the period	-		-	-	-	-		639,048	639,048
Total comprehensive income for the period	-		-	-	-	-		639,048	639,048
Balance as at 30 September 2024	182,973,924		3,619,443	46,733,689	(9,313,782)	19,570,288		303,657,986	364,267,624

Balance as at 1 April 2023	182,973,924	3,619,443	46,733,689	(9,313,782)	19,570,288	282,833,686	343,443,324
Profit for the period	-	-	-	-	-	12,746,288	12,746,288
Total comprehensive income for the period	-	-	-	-	-	12,746,288	12,746,288
Balance as at 30 September 2023	182,973,924	3,619,443	46,733,689	(9,313,782)	19,570,288	295,579,974	356,189,612

(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

Unaudited Condensed Consolidated Statement of Cash Flows

(All amounts in US $, unless otherwise stated)

								Six months ended 30 September 2024 (Unaudited)					Six months ended 30 September 2023 (Unaudited)
(A) Cash flow from operating activities
Profit before tax								1,244,023					22,633,494
Adjustments
Unrealised exchange loss/ (gain)								(714)					(21,869)
Depreciation								471,469					2,832,274
Changes in operating assets and liabilities
Inventories								1,612,444					2,090,362
Trade receivables								303,664					980,864
Trade and other payables								832,004					2,845,043
Other current and non-current assets								7,959					(29,924)
Provisions for decommissioning								-					(13,190)
Other liabilities								(30,975)					(491,168)
Cash generated from operations								4,439,874					30,825,886
Income taxes paid/refund								(19,898)					(287,062)
Net cash generated from operating activities								4,419,976					30,538,824
(B) Cash flow from investing activities
Purchase of property, plant and equipment A								(6,849,192)					(10,988,404)
Interest received								-					-
Net cash used in investing activities								(6,849,192)					(10,988,404)
(C) Cash flow from financing activities
Repayment of long-term debt from banks							(10,800,000)				(12,168,000)
Proceeds from Related Party							18,425,000				(6,500,000)
Payment of interest							(7,047,469)				(7,872,920)
Net cash used in financing activities							577,531				(26,540,920)
Net change in cash and cash equivalents							(1,851,687)				(6,990,500)
Cash and cash equivalents at the beginning of the period							2,069,244				11,765,514
Effect of exchange rate change on cash and cash equivalents							714				21,869
Cash and cash equivalents at the end of the period							218,271				4,796,883

(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(All amounts in US $, unless otherwise stated)

1.    INTRODUCTION

Indus Gas Limited ("Indus Gas" or "the Company") was incorporated in the Island of Guernsey on 4 March2008 pursuant to an Act of the Royal Court of the Island of Guernsey. The Company was set up to act as the holding company of iServices Investments Limited. ("iServices") and Newbury Oil Co. Limited ("Newbury"). iServices and Newbury are companies incorporated in Mauritius and Cyprus, respectively. iServices was incorporated on 18 June 2003 and Newbury was incorporated on 17 February 2005. The Company was admitted to trading on the AIM of the London Stock Exchange on 6 June 2008. Indus Gas, through its wholly owned subsidiaries iServices and Newbury (together the "Group"), is engaged in the business of oil and gas exploration, development and production.

Focus Energy Limited ("Focus"), an entity incorporated in India, entered into a Production Sharing Contract("PSC") with the Government of India ("GOI") and Oil and Natural Gas Corporation Limited ("ONGC") on 30 June 1998 for petroleum exploration and development concession in India known as RJ-ON/06 ("the Block"). Focus is the Operator of the Block. On 13 January 2006, iServices and Newbury entered into an interest sharing agreement with Focus and obtained a 65 per cent and 25 per cent share respectively in the Block. The balance 10 per cent of participating interest is owned by Focus. The participating interest explained above is subject to any option to acquire 30 per cent Participating Interest exercised by ONGC in respect of discoveries. ONGC has already exercised 30 per cent PI option for SGL field (as further explained in Note 3).

2.   BASIS OF PREPARATION

The unaudited condensed consolidated interim financial statements are for the six months ended 30 September 2024 and are presented in United States Dollar (US$), which is the functional currency of the parent company and other entities in the Group. They have been prepared in accordance with IAS 34 Interim Financial Reporting. They do not include all of the information required in annual financial statements in accordance with International Financial Reporting Standards as adopted by the European union, and should be read in conjunction with the consolidated financial statements and related notes of the Group for the year ended 31 March 2024.

The unaudited condensed consolidated interim financial statements have been prepared on a going concern basis. The accounting policies applied in these unaudited condensed consolidated interim financial statements are consistent with the policies that were applied for the preparation of the consolidated financial statements for the year ended 31 March 2024.

These unaudited condensed consolidated interim financial statements are for the six months ended 30 September 2024 and have been approved for issue by the Board of Directors.-

3.  JOINTLY CONTROLLED ASSETS

As explained above, the Group through its subsidiaries iServices and Newbury has an "Interest sharing arrangement" with Focus in the block, which under IFRS 11 Joint Arrangements, is classified as a 'Joint operation'. All rights and obligations in respect of exploration, development and production of oil and gas resources under the 'Interest sharing agreement' are shared between Focus, iServices and Newbury in the ratio of 10 per cent, 65 per cent and 25 per cent respectively.

Under the PSC, the GOI, through ONGC has an option to acquire a 30 per cent participating interest in any discovered field, upon such successful discovery of oil or gas reserves, which has been declared as commercially feasible to develop.

The block is divided into 3 fields - SGL, SSG and SSF.

The SGL field received its declaration of commercial discovery on 21 January 2008. Subsequent to the declaration of commercial discovery in SGL field, ONGC exercised the option to acquire a 30 per cent participating interest in the discovered fields on 6 June 2008. The exercise of this option has reduced the interest of the existing partners proportionately.

However, on exercise of this option, ONGC is liable to pay its share of 30 per cent of the SGL field development costs and production costs incurred after 21 January 2008 and in order to be entitled to their 30 per cent share in the production of gas subject to recovery of contract costs as explained below. 

The allocation of the production from the field to each participant in any year is determined on the basis of the respective proportion of each participant's cumulative unrecovered contract costs paid as at the end of the previous year or where there is no unrecovered contract cost at the end of previous year on the basis of participating interest of each such participant in the field. As per PSC the recovery shall be first made of Production Costs and next recovery be made of Exploration costs and the remaining shall be made of Development costs.  

On the basis of the above, gas production for the period ended 30^th September 2024 continues to be shared between Focus, iServices and Newbury in the ratio of 10 percent, 65 percent, and 25 percent, respectively. ONGC will not be entitled to any participating interest in the production until the full exploration and development cost is recovered by other participants. 

The aggregate amounts relating to jointly controlled assets, liabilities, expenses, and commitments related thereto that have been included in the consolidated financial statements are as follows:

Particular		Period ended 30 September 2024 (Unaudited)		Period ended 30 September 2023 (Unaudited)		Year ended 31 March 2024 (Audited)
Non-current assets		1,302,111,915		1,257,875,924		1,291,623,477
Current assets		116,600,745		114,674,371		116,250,255
Non-current liabilities		1,881,607		1,881,607		1,881,607
Expenses (net of finance income)		832,004		2,845,043		5,551,919

Further, the SSF and SSG field had also received its declaration of commerciality on 24th November 2014. Subsequent to the declaration of commerciality for SSF and SSG discovery, ONGC did not exercise the option to acquire 30 percent in respect of SSG and SSF field. The participating interest in SSG and SSF field between Focus, iServices and Newbury will remain in ratio of 10 percent, 65 percent and 25 percent respectively for exploration, evaluation and development cost, and production revenue for SSF and SSG in the block.

4.  SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these unaudited condensed interim consolidated financial statements, the significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were consistent with those that applied to the consolidated financial statements as at and for the year ended 31 March 2024.

5.  SEGMENT REPORTING

Operating segments are identified on the basis of internal reports about components of the Group that are regularly reviewed by the management in order to allocate resources to the segments and to assess their performance. The Company considers that it operates in a single operating segment being the production and sale of gas.

 

END