Member Info for GD1962

Belt tightening in progress,, SS has taken a 25% pay cut according to the accounts.

What i read from the accounts (apart from being filed 6 months late) is that it _was trading well, but when you look at results after acquisition not so much?

Ebitda in those accounts for full year is £17.8m. in kistos plc 2024 accounts, the Ebitda after acquisition I calculate to be $3.2m EBITDA loss and H1 2025 Ebitda loss of $1.1m. reckon that the recent price volatility will have turned things around a bit more.

I think this one stacks up. note 15 to group accounts says the loans due from subsidiaries have been impaired so in 234’s accounts the amounts due to ultimate parent company has been written back (creditors balance in 234’s books decreased).

I guess technically for 234 to recognise the credit there should be a formal release or waiver of the loan rather than only the parent impairing it.

many funny things about the Ukog accounts as I have pointed out to FRC in previous years but this seems to make sense.

So the new auditors appointed earlier this year resigned before completing the audit and Ukog had to go back to PKF to get it done,,, what a mess!

That is only applicable to main market though not AIM ?

AIM rule 41 “The Exchange will cancel the admission of AIM securities where these have been

suspended from trading for six months.”

Ukog suspension was 1 april,,, so one week until cancellation day unless results are done

10 mill becomes unrestricted yes,, but pretty much at same time they need to give Var 16 mill for decom security.

if the topco had 100 mill of cash it could now dividend it after this reduction. but I don’t think it does. they didn’t give a net debt update at the time of year end results so no idea what cash position is like.

also didn’t they do a reduction like this some years back and nothing came of it then like buybacks or dividends

rgds

GD

I have been involved in a couple of projects with upstream co’s evaluating gas to btc. economics would never stack up even at current prices. and then there is regulatory issues,, not a great look if uk regulators give green light for a co to burn gas to power own gpus instead of contributing to uk energy security!!

Was a presentation on their website but link to it since removed

still exists on the web though and findable on internet archive

https://d1ssu070pg2v9i.cloudfront.net/pex/kistos/2021/08/27140055/Kistos-plc-Corporate-Presentation-27th-August-2021.pdf

2nd slide although not sure if that chart is showing gross or net 60%

Can’t be much more to write down in netherlands surely.

it was €179 million up to end 2023, plus another $34 million in 2024 which included writing off orion.

so in total usd thats approx $240 million in write offs for the dutch assets

back when the deal was done Kistos were presenting outlook of 40kbbl a day in 2025 from netherlands. tulip are probably still laughing at the great deal they made

Forgot this isn’t AIM so my comment re: nomad isn’t relevant!

The rns gets the company name wrong halfway down, so not surpassing that ppl might be questioning the accuracy or clarity of what the price is.

prices are inconsistently presented across the rns which doesn’t help. perhaps as well as needing to pay the auditors they have run out of money to get the nomad to help proofread the announcements!

“Proceeds of the CLNF will be used by the Company to finalise the audit for the FY 2024”

translation = the audit was taking so long because the auditors downed tools as they weren’t getting paid!!

On that estimate Ukog have been very aggressive in calculating it for the accounts. using a discount rate of 10% is well over double what everyone else is using,,, so the figure is significantly under provisioned imho.

also there is no disclosure of expected timing of the spend which again, imho, is a breach of the accounting standard disclosure rules here.

On gas storage previous said they expected to have a decision on the FID at hole house in early 2025,,, no mention of a time line now so that’s not a great sign. also at interim results they showed the Ebitda for storage business but not in these accounts. so maybe it’s all costing a bit more than they thought to run and don’t want to show it

what’s also now amazing is that this company according to its balance sheet has accumulated losses of over $50 million,, a company that has been revenue generating since inception pretty much including when gas prices were at unprecedented highs has managed to reduce value by that much,, I know taxes have not helped but it’s not like they have been taxed at over 100%!!

would have been good to have an updated net debt position as well (they used to give the latest month end net debt when putting out results)

Big write off of Netherlands assets again and admitting basically that orion is never going ahead. what a shtshw of an acquisition that turned out to be.

At least it’s a relatively big firm not one man and dog operation.

still would be interested to know why Ukog management thought they could appoint a new auditor earlier this year and still try and get accounts out on time (ie max of 3 months for new auditor to do all onboarding and get work done,, in what is the busiest quarter of year for auditors)

Pkf listed on website as current auditors

Pkf signed off 2023 accounts

Resolution approved to reappoint them in 2024 agm

rns today says auditors were appointed earlier this year.

one of the above statements is wrong!

Normally would expect see a change in auditor notified by RNS

PKF (old auditors) still listed on Ukog website as the auditor

if Ukog appointed new auditors earlier this year… giving the new auditor less than 3 months to check the books of a brand new audit client… did they really think meeting the 30 March deadline was realistic???

suspect there was a disagreement with pkf and Ukog and they have now scrabbled around trying to find a few more sympathetic firm

31 March is deadline for the annual report. assume that UKOG will leave it till last minute as usual.

let’s see if they use this to come clean on what’s going on with the current (lack of) production.

also interesting to see cash flow for current rate of cash burn, what they say about EBT, what auditors reckon about going concern,and if they carry on the aggressive accounting to under value the decommissioning estimate and over state the production assets!!