(AEN.L) Andes Energia PLC Buy/Sell

RNS Number : 3117C Andes Energia PLC 11 November 2009

Andes Energia plc ("Andes")

(AIM:AEN)

Unaudited results for

Empresa Distribuidora de Electricidad de Mendoza Sociedad Anonima ("EDEMSA")

for the nine months ended 30 September 2009

EDEMSA, the electricity distributor for the province of Mendoza in which Andes has a 51 per cent. indirect interest, has published its financial results for the nine months ended 30 September 2009. This information, which has been prepared under Argentine GAAP and in Spanish, is available from the web-site of the Argentine Comision Nacional de Valores at www.cnv.gov.ar. This announcement sets out the unaudited financial information of EDEMSA for the same period prepared under IFRS in Argentine Pesos (AR$).

Financial Overview of EDEMSA

EDEMSA reported a loss for the nine months of AR$14.3 million (9 months to 30 September 2008: AR$7.1 million profit)

Sales in the period increased by 17.3% over the equivalent period last year, to AR$361 million. This increase resulted primarily from a 2.2% increase in the demand for energy, the pass through of increases in the cost of energy purchased and the benefit of the increase in electricity tariffs implemented on 1 August 2009.

Although the gross profit has increased to AR$86.2 million from AR$76.2 million, the increase in operating expenses resulted in an operating profit of AR$14.1 million down from AR$24.6 million in the equivalent period last year, with EBITDA of AR$35.1 million (9 months to 30 September 2008: AR$45 million).

The finance costs for the year have been adversely impacted by the weakening of the AR$ against the US$, resulting in a non-cash exchange loss of AR$28.1 million for the period. EDEMSA has established a trust with the objective of investing in US$ denominated assets and at the end of the period the carrying value of investments held in the trust was AR$61.3 million.

As referred above, the first new tariffs for the third review period were implemented on 1 August 2009. This resulted in an average increase of between 0% and 15% for residential users and between 12% and 22% for commercial users, representing an average total increase of approximately 12%. Furthermore, the second stage of the tariff increase is due to be implemented with effect from 1 December 2009 and the increases are expected to be at levels similar to the increases implemented on 1 August 2009.

Neil Bleasdale, EDEMSA President commented, "We are pleased the first increase in the tariffs has been approved and look forward to the further tariff adjustments that have already been established for the third review period becoming effective."

balance sheet

(All amounts in Argentine Pesos (AR$))

At At At
30 September 2009 30 September 2008 31 December 2008
(Unaudited) (Unaudited) (Unaudited)

Non-current assets
Property, plant and equipment 513,256,617 508,686,728 515,966,820
Intangible assets 156,705,088 156,705,088 156,705,088
Available for sale investments 1,565,787 1,592,490 847,632
Other investments 61,297,342 - 21,594,778
Deferred income tax assets and 43,045,934 21,041,448 32,265,713

other credits
775,870,768 688,025,754 727,380,031

Current assets
Inventories 16,145,719 22,270,580 16,139,939
Trade and other receivables 96,214,554 89,613,889 99,517,552
Available for sale investments 1,055,293 923,740 480,647
Cash and cash equivalents 9,255,390 25,927,417 6,117,900
122,670,956 138,735,626 122,256,038
Total assets 898,541,724 826,761,380 849,636,069

Capital and reserves
Share capital 462,585,254 462,585,254 462,585,254
Fair value and other reserves 464,919 439,436 (301,905)
Retained earnings and other (40,561,157) (10,745,900) (26,254,831)

reserves
Legal reserve 16,856,263 16,856,263 16,856,263
Total equity 439,345,279 469,135,053 452,884,781

Non-current liabilities
Borrowings 237,684,877 206,153,841 228,720,522
237,684,877 206,153,841 228,720,522

Current Liabilities
Trade and other payables 146,707,180 111,561,701 120,935,572
Borrowings 42,520,331 15,788,272 17,111,903
Provisions 32,284,057 24,122,513 29,983,291
221,511,568 151,472,486 168,030,766
Total liabilities 459,196,445 357,626,327 396,751,288
Total equity and liabilities 898,541,724 826,761,380 849,636,069

income statement

(All amounts in Argentine Pesos (AR$))

Nine months ended Nine months ended Year ended
30 September 2009 30 September 2008 31 December 2008
(Unaudited) (Unaudited) (Unaudited)
Sales 360,648,299 307,353,676 427,580,215
Cost of sales (274,469,343) (231,109,431) (327,651,213)
Gross profit 86,178,956 76,244,245 99,929,002
Selling and marketing costs (32,184,453) (26,737,751) (36,862,395)
Administrative expenses (42,206,456) (28,798,823) (42,641,391)
Other operating expenses 2,274,037 3,862,961 4,726,706
Operating profit 14,062,084 24,570,632 25,151,922
Finance costs (34,809,477) (13,632,677) (39,597,163)
(Loss)/profit before tax (20,747,393) 10,937,955 (14,445,241)
Income tax 6,441,067 (3,891,563) 5,982,702
(Loss)/profit for the period (14,306,326) 7,046,392 (8,462,539)

statement of changes in shareholders' equity

(All amounts in Argentine Pesos (AR$))

Share capital Fair value and other Retained earnings Legal reserve Total equity
reserves
Balance at 1 January 2008 462,585,254 674,635 (939,033) 3,004 462,323,860

(Unaudited)
Net expense recognised - (235,199) - - (235,199)

directly in equity
Transfer from retained - - (16,853,259) 16,853,259 -

earnings
Gain for the period - - 7,046,392 - 7,046,392
Balance at 30 September 2008 462,585,254 439,436 (10,745,900) 16,856,263 469,135,053

(Unaudited)
Net expense recognised - (741,341) - - (741,341)

directly in equity
Loss for the period - - (15,508,931) - (15,508,931)
Balance at 31 December 2008 462,585,254 (301,905) (26,254,831) 16,856,263 452,884,781

(Unaudited)
Net income recognised directly - 766,824 - - 766,824

in equity
Loss for the period - - (14,306,326) - (14,306,326)
Balance at 30 September 2009 462,585,254 464,919 (40,561,157) 16,856,263 439,345,279

(Unaudited)

cash flow statement

(All amounts in Argentine Pesos (AR$))

Nine months ended Nine months ended Year ended
30 September 2009 30 September 2008 31 December 2008
(Unaudited) (Unaudited) (Unaudited)

Cash flows from operating activities
Net cash generated from 64,145,446 34,450,124 40,049,636

operating activities

Cash flows from investing activities
Purchases of property, plant (10,514,376) (9,720,422) (11,695,779)

and equipment
Purchase of financial assets (40,228,542) (892,757) (22,040,925)
Grants received 5,363,596 2,565,209 2,565,209
Net cash used in investing (45,379,322) (8,047,970) (31,171,495)

activities

Cash flows from financing activities
Debt repaid (15,628,634) (6,213,555) (8,499,059)
Net cash used in financing (15,628,634 (6,213,555) (8,499,059)

activities

Net increase in cash and bank 3,137,490 20,188,599 379,082

overdrafts
Cash and bank overdrafts at 6,117,900 5,738,818 5,738,818

beginning of the period
Cash and bank overdrafts at 9,255,390 25,927,417 6,117,900

the end of the period

1. Basis of preparation

The report for the nine months ended 30 September 2009 is unaudited and has been prepared in accordance with International Financial Reporting Standards ("IFRS") on a basis consistent with the accounting policies used in the preparation of the financial information of the ultimate parent company, Andes Energia plc, for the year ended 31 December 2008.

Enquiries:

Andes Energia plc Tel :020 7495 5326

Neil Bleasdale, Chairman

Nigel Duxbury, Finance Director

Arbuthnot Securities Tel: 020 7012 2000

James Steel

Antonio Bossi

Bishopsgate Communications Tel: 020 7562 3350

Nick Rome

Michael Kinirons

This information is provided by RNS The company news service from the London Stock Exchange

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RNS Number : 1641C Andes Energia PLC 09 November 2009 9 November 2009 Andes Energia plc (*Andes* or the *Company*) Loan agreement, issue of new equity and total voting rights The Board of Andes (AIM: AEN), the Latin American energy group, is pleased to announce that it has agreed new terms for its existing debt facility with Genipabu Investments LLC (*Genibapu*), a Delaware company. Under the new terms the US$7.19 million convertible loan agreement (the *Loan*) carries an unchanged coupon of 12 per cent. per annum with the principal repayable by May 2013. Interest now due for the period to 26 October 2009 will be satisfied in lieu of cash by the issue of 3,369,147 new ordinary shares of Andes of 10p each (*Ordinary Shares*) at a price of 28p per share which represents, approximately, a 15 per cent. premium to the average share price of the last 180 days. Interest due for the period from 26 October 2009 to 14 February 2010 will be satisfied in lieu of cash by the issue of 580,706 Ordinary Shares on 15 February 2010 at a price of 28p per share. The Loan and any accrued interest is also convertible, at any time, in whole or in part, until its maturity at the lender*s option, into Ordinary Shares at a price equal to the average share price for the previous 90 days. Application will be made for the 3,369,147 Ordinary Shares, to be allotted to Genipabu in satisfaction of interest due for the period to 26 October 2009, to be admitted to AIM. It is expected that admission of the new Ordinary Shares will become effective on 16 November 2009. After admission of the new Ordinary Shares, Genipabu will own approximately 2.9 per cent. of the Company*s issued share capital. Total Voting Rights Following admission of the 3,369,147 Ordinary Shares, the total number of issued ordinary shares in the Company will be 120,463,745 Ordinary Shares. The Company does not hold any Ordinary Shares in treasury. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Service Authority's Disclosure and Transparency Rules. Nigel Duxbury, Chief Financial Officer of Andes, said:

RNS Number : 4323A Andes Energia PLC 08 October 2009

Andes Energia plc ("Andes" or the "Company")

Death of Director

Andes (AIM: AEN), the Latin American energy group, is deeply saddened to report the death of Keith Wills, non-executive director of Andes. After a long illness, Keith passed away last Friday. He leaves a wife and two children.

Keith joined the Company in 2006 and was Chairman of the Audit and Remuneration Committees and was heavily involved in the reverse acquisition of the Argentine assets that was completed in October 2007.

Neil Bleasdale, Chairman of Andes, stated, "We are extremely sad to lose a valued member of the Board and a friend. Our thoughts are with his family at this difficult time."

For further information please contact:
Andes Energia plc Luis T: 020 7495 5326
Alvarez Poli, CEO
Nigel
Duxbury, FD

Arbuthnot Securities James Steel T: 020 7012 2000
Antonio
Bossi

Bishopsgate Communications Nick Rome T: 020 7562 3350
Michael
Kinirons

Note to Editors:

Andes

Andes is a Latin American energy group, with electricity distribution, hydro-electric power and oil and gas interests in Argentina. The Company's focus is on the Argentinean energy sector, which it believes offers premium assets at undervalued prices.

This information is provided by RNS The company news service from the London Stock Exchange

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RNS Number : 7941Z
  Andes Energia PLC
  29 September 2009
   

ANDES ENERGIA PLC 

("Andes" or the "Company" or with its subsidiaries the "Group")

ANDES ENERGIA PLC - UNAUDITED 2009 INTERIM RESULTS

Andes, the Latin American energy group, is pleased to announce its interim results for the six months ended 30 June 2009.

Financial highlights

*     Revenues up 22% to AR$252 million (US$69.2 million) from AR$206 million for the equivalent period last year

*     EBITDA US$7.2 million (H1 2008: US$ 8.8 million)

*     Loss per share US$0.01 (H1 2008: Earnings per share 0.07 cents)

Operational highlights

During the period

*     Successful renegotiation of secured US$5,000,000 loan facility.

*     Continuation of geophysical studies, seismic reprocessing and seismic acquisition.

After the period end

*     Decree issued on 22 July 2009 approving procedure for the calculation of the Empresa Distribuidora de Electricidad de Mendoza S.A. ("EDEMSA") tariff for the third review period.

*     Implementation of first new tariff increases for the third review period effective retrospectively to 1 August 2009. The increases equate to an average tariff increase of 12%.  

*     Level 1 American Depositary Receipt ("ADR") program established in the US with Bank of New York Mellon as the depositary bank.

Luis Alvarez Poli, Chief executive Officer, said: "We are pleased with the progress we have made in the first six months of this year. The first new tariffs for the third review period have now been implemented and we continue to work towards advancing our oil and gas exploration interests and the development of our oil and gas exploration strategy. The ADR program has been established to broaden our existing shareholder base and increase the Company's visibility with investors in the US."

Enquiries:

 Andes Energia               Luis Alvarez Poli, Chief         T: 020 7495 5326
                             Executive Officer
                             Nigel Duxbury, Finance Director

 Arbuthnot Securities        James Steel                      T: 020 7012 2000
                             Antonio Bossi

 Bishopsgate Communications  Maxine Barnes                    T: 020 7562 3350
                             Nick Rome

Note to Editors:

Andes is a Latin American energy group, with electricity distribution, hydro-electric power and oil and gas interests in Argentina. The Company's focus is on the Argentinean energy sector.

Chairman's review

First-half revenues increased to US$ 69.2 million compared to revenues of US$66.5 million for the equivalent period last year. EBITDA was US$7.2 million (6 months to 30 June 2008: US$8.8 million). 

Although the gross profit has increased to US$17.8 million from US$16.1 million the increase in operating expenses resulted in an operating profit of US$3.2 million down from US$4.2 million for the equivalent period last year.

The finance costs for the year have been adversely impacted by the weakening of the AR$ against the US$, resulting in a non-cash exchange loss of US$6.7 million in EDEMSA for the period. The Company continues to evaluate all options available to it to minimise this currency risk. EDEMSA has established a trust with the objective of investing in US$ denominated assets and has secured shareholders' approval to issue up to an equivalent of US$80 million of debt instruments denominated in AR$ or other foreign currencies at the Board's discretion, which would give EDEMSA more flexibility to manage this currency risk.

After the period end EDEMSA completed the process for the implementation of the first new tariffs for the third review period. This follows the approval of the procedure for the calculation of the new tariffs, which was announced on 12 August 2009. The new electricity tariffs will result in an average increase of between 0% and 15% for residential users and between 12% and 22% for commercial users, representing an average total increase of approximately 12%, which will be effective retrospectively from 1 August 2009. As announced on 21 February 2008, the terms for the acquisition of the final 50 per cent. interest in Sodem S.A. included the possibility of an earn-out payment. The approval of the procedure for the calculation of the new tariffs might crystallise this earn-out payment, which may be satisfied in cash and/or through the issue of new Company shares. However, under the terms of the stock purchase agreement, certain elements of the earn-out are still open to interpretation and are being agreed with the seller. At this time no liability has been recognised in the balance sheet for an earn-out payment, due to the uncertainty of whether it will become due or not. 

The results of Hidroelectrica Ameghino S.A. ("HASA") have benefited from the change in the regulations implemented in October 2008 that now allows HASA to sell all the electricity it generates to the wholesale market resulting in revenues increasing by over 100% for the six months compared to the equivalent period last year, with a resulting increase of 689% in EBITDA over the same period. 

Whilst the international economic turmoil has had an impact on oil companies and in particular exploration projects, we continue to gather and interpret seismic data and are looking to conduct further geochemical surveys and if necessary further 3D seismic work towards the end/beginning of this/next year. As announced on 29 June 2009, meetings have been held with the Chubut regulator to discuss a possible extension of the first exploration period and possible changes to exploration commitments. We will be looking to continue these discussions with the regulator over the coming months.  

As announced on 25 June 2009, Juan Carlos Esteban, Chief Executive Officer of the Group's oil and gas interests was appointed to the Board. His appointment significantly strengthens the Board, particularly given the focus on the development of the group's oil and gas interests.

During the period the Company successfully completed the renegotiation of its secured US$5,000,000 loan facility, which carries a 12.75 per annum coupon and defers the principal repayment until March 2013.

Your Company continues to grow and develop and has made significant steps in putting the Company on a solid financial footing in these difficult markets. We are confident that our efforts throughout 2009 will allow us to make further progress in the development of our energy businesses and we are grateful to shareholders for their continued support and look forward to updating you on developments in the near future.  

Neil Bleasdale 

Chairman 

29 September 2009
      Consolidated income statement for the six months ended 30 June 2009

                                        30-Jun-09     30-Jun-08      31-Dec-08
                                              US$           US$            US$
 Revenue (see note2)                   69,205,678    66,478,155    138,087,122
 Cost of sales                       (51,378,117)  (50,365,155)  (105,837,484)
 Gross profit                          17,827,561    16,113,000     32,249,638
 Other operating income                   320,116       793,686        420,367
 Distribution costs                   (5,771,274)   (5,492,556)   (11,628,516)
 Administrative expenses              (9,157,008)   (7,213,540)   (20,091,895)
 Operating profit                       3,219,395     4,200,590        949,594
 Finance income                         2,347,865       412,528      1,203,496
 Finance costs                        (9,587,650)   (1,478,127)   (14,675,946)
 (Loss)/profit before taxation        (4,020,390)     3,134,991   (12,522,856)
 Taxation                               1,394,647   (1,594,688)      1,839,144
 (Loss)/profit for the year           (2,625,743)     1,540,303   (10,683,712)

 Attributable to:
 Equity holders of the parent         (1,450,580)        77,256    (9,620,280)
 Minority interests                   (1,175,163)     1,463,047    (1,063,432)
                                      (2,625,743)     1,540,303   (10,683,712)

 (Loss)/earnings per ordinary share           US$         Cents            US$
 (see note 3)
 Basic                                     (0.01)          0.07         (0.08)
 Diluted                                   (0.01)          0.07         (0.08)

Consolidated statement of financial position as at 30 June 2009

                                         30-Jun-09     30-Jun-08     31-Dec-08
                                               US$           US$           US$
 Non-current assets
 Intangible assets                      89,907,621   110,159,992    90,559,507
 Property, plant and equipment         136,830,013   165,901,448   150,710,046
 Investments                            16,198,843     4,701,644    10,452,546
 Available for sale financial assets       297,123       546,972       300,543
 Trade and other receivables               142,284        31,117       121,466
 Deferred income tax assets             35,223,910     4,520,333    36,612,211
 Total non-current assets              278,599,794   285,861,506   288,756,319

 Current assets
 Inventories                             3,393,143     5,169,935     4,678,243
 Available for sale financial assets     1,614,263     1,004,324       724,793
 Trade and other receivables            28,793,159    30,147,474    32,088,564
 Cash and cash equivalents               5,679,723    10,863,399     2,547,841
 Total current assets                   39,480,288    47,185,132    40,039,441

 Current liabilities
 Trade and other payables               42,275,139    36,296,635    38,522,363
 Financial liabilities                  11,391,207     4,780,178     5,289,176
 Provisions                              8,211,304     7,863,862     8,690,809
 Current tax liabilities                    49,490        59,988        43,491
 Total current liabilities              61,927,140    49,000,663    52,545,839

 Non-current liabilities
 Trade and other payables                1,602,842     2,943,963     1,511,958
 Financial liabilities                  74,689,783    76,299,141    79,244,243
 Deferred income tax liabilities        25,364,365             -    28,391,542
 Total non-current liabilities         101,656,990    79,243,104   109,147,743

 Net assets                            154,495,952   204,802,871   167,102,178

 Capital and reserves
 Called up share capital                23,418,920    23,418,920    23,418,920
 Share premium account                  28,692,270    28,779,259    28,692,270
 Profit and loss account              (48,703,204)  (38,073,013)  (47,332,067)
 Merger reserve                         66,195,556    66,195,556    66,195,556
 Reverse acquisition reserve            42,045,342    42,045,342    42,045,342
 Translation reserve                  (20,919,132)             -  (17,516,645)
 Fair value reserve                        119,916       175,019        76,178
 Equity attributable to equity          90,849,668   122,541,083    95,579,554
 holders of the parent
 Minority interest                      63,646,284    82,261,788    71,522,624
 Total equity                          154,495,952   204,802,871   167,102,178

Consolidated statement of changes in equity as at 30 June 2009

                                      Share       Share    Profit and        Other       Minority         Total
                                    capital     premium          loss      reserves      interest

                                        US$         US$           US$           US$           US$           US$
 At 1 January 2008               23,418,920  28,949,260  (42,308,581)   108,458,522   118,865,465   237,383,586
 Profit for the period                    -           -        77,256             -     1,463,047     1,540,303
 Fair value adjustment                    -           -             -      (42,605)             -      (42,605)
 Total comprehensive income for           -           -        77,256      (42,605)     1,463,047     1,497,698
 the period
 Share issue costs                        -   (170,001)             -             -             -     (170,001)
 Exercise of option to acquire            -           -     4,158,312             -  (38,066,724)  (33,908,412)
 minority interest in Sodem
 S.A.
 At 30 June 2008                 23,418,920  28,779,259  (38,073,013)   108,415,917    82,261,788   204,802,871
 Loss for the period                      -           -   (9,697,536)             -   (2,526,479)  (12,224,015)
 Fair value adjustments                   -           -             -      (98,841)     (133,427)     (232,268)
 Translation differences                  -           -             -  (17,516,645)   (8,099,266)  (25,615,911)
 Total comprehensive income for           -           -   (9,697,536)  (17,615,486)  (10,759,172)  (38,072,194)
 the period
 Share issue costs                        -    (86,989)             -             -             -      (86,989)
 Fair value of share based                -           -       458,490             -             -       458,490
 payments
 Exercise of option to acquire            -           -      (20,008)             -        20,008             -
 minority interest
 At 31 December 2008             23,418,920  28,692,270  (47,332,067)    90,800,431    71,522,624   167,102,178
 Loss for the period                      -           -   (1,450,580)             -   (1,175,163)   (2,625,743)
 Fair value adjustments                   -           -             -        43,738        42,023        85,761
 Translation differences                  -           -             -   (3,402,487)   (6,529,670)   (9,932,157)
 Total comprehensive income for           -           -   (1,450,580)   (3,358,749)   (7,662,810)  (12,472,139)
 the period
 Fair value of share based                -           -        79,443             -             -        79,443
 payments
 Dividends                                -           -             -             -     (213,530)     (213,530)
 At 30 June 2009                 23,418,920  28,692,270  (48,703,204)    87,441,682    63,646,284   154,495,952

 Analysis of other reserves:           Merger      Reverse   Translation  Fair value         Total
                                      reserve  acquisition       reserve     reserve         other
                                                   reserve                                reserves
                                          US$          US$           US$         US$           US$
 At 1 January 2008                 66,195,556   42,045,342             -     217,624   108,458,522
 Profit for the period                      -            -             -           -             -
 Fair value adjustment                      -            -             -    (42,605)      (42,605)
 Total comprehensive income for             -            -             -    (42,605)      (42,605)
 the period                      
 Share issue costs                          -            -             -           -             -
 Exercise of option to acquire              -            -             -           -             -
 minority interest in Sodem      
 S.A.                            
 At 30 June 2008                   66,195,556   42,045,342             -     175,019   108,415,917
 Loss for the period                        -            -             -           -             -
 Fair value adjustments                     -            -             -    (98,841)      (98,841)
 Translation differences                    -            -  (17,516,645)           -  (17,516,645)
 Total comprehensive income for             -            -  (17,516,645)    (98,841)  (17,615,486)
 the period                      
 Share issue costs                          -            -             -           -             -
 Fair value of share based                  -            -             -           -             -
 payments                        
 Exercise of option to acquire              -            -             -           -             -
 minority interest               
 At 31 December 2008               66,195,556   42,045,342  (17,516,645)      76,178    90,800,431
 Loss for the period                        -            -             -           -             -
 Fair value adjustments                     -            -             -      43,738        43,738
 Translation differences                    -            -   (3,402,487)           -   (3,402,487)
 Total comprehensive income for             -            -   (3,402,487)      43,738   (3,358,749)
 the period                      
 Fair value of share based                  -            -             -           -             -
 payments                        
 Dividends                                  -            -             -           -             -
 At 30 June 2009                   66,195,556   42,045,342  (20,919,132)     119,916    87,441,682

Consolidated cash flow statement for the six months ended 30 June 2009

                                         30-Jun-09     30-Jun-08     31-Dec-08
                                               US$           US$           US$
 (Loss)/profit for the year before     (4,020,390)     3,134,991  (12,522,856)
 taxation

 Adjustments for:
 Depreciation                            3,885,088     4,435,700     8,720,842
 Movement in debt                        9,667,719       839,671    13,077,587
 Revaluation of investments                      -             -       101,362
 Profit on sale of property, plant          76,447        19,086         1,475
 and equipment
 Increase in inventories                 (936,448)   (4,227,711)   (9,011,621)
 (Increase)/decrease in trade and      (2,225,201)     3,406,685  (10,875,326)
 other receivables
 Increase in creditors and other         6,218,059     6,407,816    10,777,973
 payables
 Increase in provisions for              1,371,512     1,262,283     4,518,354
 liabilities and charges
 Profit on disposal of investments               -             -      (34,091)
 Movement in tax provisions              (285,525)             -     (248,283)
 Impairment write down                     141,892       182,213       317,449
 Share based payments                       79,443             -       458,490
 Net cash generated from operating      13,972,596    15,460,734     5,281,355
 activities

 Cash flows from investing activities
 Purchase of property, plant and       (1,945,606)   (1,539,591)   (3,716,132)
 equipment
 Purchase of exploration assets             18,044             -     (345,174)
 Purchase of investments and minority  (7,787,372)             -  (32,465,984)
 interests
 Proceeds from available for sale                -       448,263       458,725
 shares
 Proceeds from grants                    1,473,515             -       809,214
 Acquisition of subsidiary                       -  (34,123,403)             -
 Net cash used in investing            (8,241,419)  (35,214,731)  (35,259,351)
 activities

 Cash flows from financing activities
 Repayments of borrowings              (2,827,642)   (1,334,698)   (2,681,160)
 Funds from borrowing                      804,765     8,774,864    14,059,253
 Share issue costs                               -     (170,001)     (256,990)
 Dividends                               (213,530)             -             -
 Net cash (used in)/generated from     (2,236,407)     7,270,165    11,121,103
 financing activities

 Net increase/(decrease) in cash and     3,494,770  (12,483,832)  (18,856,893)
 cash equivalents
 Cash and cash equivalents at the        2,547,841    23,347,231    23,347,231
 beginning of the year
 Effect of foreign exchange rate         (362,888)             -   (1,942,497)
 changes
 Cash and cash equivalents at the end    5,679,723    10,863,399     2,547,841
 of the year

Notes
    
1.  Basis of preparation

These interim financial statements set out in this announcement do not constitute statutory accounts and are unaudited. 

These condensed financial statements have been prepared using policies based on the International Financial Reporting Standards ("IFRS"), as adopted by the European Union, which will be applied in the Group's statutory financial statements for the year ended 31 December 2009. As is currently permissible under the rules of the AIM market, this report does not comply with the full requirements of IAS 34: "Interim Financial Reporting".

The financial information for the year ended 31 December 2008 set out in this interim report does not constitute the Group's statutory accounts for that period. The statutory accounts for the year ended 31 December 2008 have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified, did not contain a statement under either section 237(2) or section 237(3) of the Companies Act 1985 and did not include references to any matters to which the auditor drew attention by way of emphasis.
    
2.  Segmental analysis

                                        Revenue                            Segment profit
                                  30-Jun-09   30-Jun-08    31-Dec-08    30-Jun-09    30-Jun-08     31-Dec-08
 Analysis of revenue and                US$         US$          US$          US$          US$           US$
 profit:
 Electricity distribution        66,860,324  65,104,335  134,883,349    3,472,596    5,191,198     7,920,823
 Electricity generation           2,345,354   1,373,820    3,203,773      857,667     (66,057)       292,729
                                 69,205,678  66,478,155  138,087,122    4,330,263    5,125,141     8,213,552
 Central administration costs                                         (1,110,868)    (924,551)   (7,263,958)
 Finance income                                                         2,347,865      412,528     1,203,496
 Finance costs                                                        (9,587,650)  (1,478,127)  (14,675,946)
 (Loss)/profit before tax                                             (4,020,390)    3,134,991  (12,522,856)

                                30-Jun-09    30-Jun-08    31-Dec-08
 Analysis of total assets:            US$          US$          US$
 Electricity distribution     259,282,386  261,940,641  273,160,720
 Electricity generation        16,664,660   24,672,361   18,260,956
 Oil and gas interests         33,755,115   41,100,569   29,882,775
 Total segment assets         309,702,161  327,713,571  321,304,451
 Unallocated assets             8,377,921    5,333,067    7,491,309
 Consolidated total assets    318,080,082  333,046,638  328,795,760

                                     30-Jun-09    30-Jun-08    31-Dec-08
 Analysis of total liabilities:            US$          US$          US$
 Electricity distribution          143,041,849  109,959,710  141,889,769
 Electricity generation              4,428,486    3,821,944    4,818,047
 Oil and gas interests                  11,072      425,017        8,432
 Total segment liabilities         147,481,407  114,206,671  146,716,248
 Unallocated liabilities            16,102,723   14,037,096   14,977,334
 Consolidated total liabilities    163,584,130  128,243,767  161,693,582

                                              30-Jun-09  30-Jun-08   31-Dec-08
 Analysis of total capital expenditure:             US$        US$         US$
 Electricity distribution capital             3,960,277  4,833,372  12,004,318
 expenditure                                
 Electricity generation capital                   1,976      1,355      21,911
 expenditure                                
 Oil and gas interests                                -          -     345,174
 Total segment capital expenditure            3,962,253  4,834,727  12,371,403
 Other capital expenditure                            -          -       4,701
 Consolidated total capital expenditure       3,962,253  4,834,727  12,376,104

                                          30-Jun-09  30-Jun-08  31-Dec-08
 Analysis of total depreciation:                US$        US$        US$
 Electricity distribution depreciation    3,838,300  4,383,226  8,616,586
 Electricity generation depreciation         45,896     50,710    100,718
 Total segment depreciation               3,884,196  4,433,936  8,717,304
 Other depreciation                             892      1,764      3,538
 Consolidated total depreciation          3,885,088  4,435,700  8,720,842

3.  (Loss)/earnings per share

(Loss)/earnings per share is presented on two bases: basic (loss)/earnings per share and diluted (loss)/earnings per share. Basic (loss)/earnings per share is in respect of all activities and diluted (loss)/earnings per share takes into account the dilution effects which would arise on conversion or vesting of warrants in issue. 

                                                         30-Jun-09    30-Jun-08    31-Dec-08
                                                             Cents        Cents        Cents
 Basic (loss)/earnings per                                  (1.24)         0.07       (8.22)
 share
 Diluted (loss)/earnings per                                (1.24)         0.07       (8.22)
 share

                                                               US$          US$          US$
 (Loss)/profit for the financial year attributable to  (1,450,580)       77,256  (9,620,280)
 equity holders

                                                               No.          No.          No.
 Weighted average number of                            117,094,598  117,094,598  117,094,598
 shares
 Effect of dilutive warrants                                     -            -            -
 Diluted weighted average                              117,094,598  117,094,598  117,094,598
 number of shares

                                                               No.          No.          No.
 Potential number of dilutive                           31,300,000   31,300,000   31,300,000
 warrants
                                                        31,300,000   31,300,000   31,300,000

This information is provided by RNS
The company news service from the London Stock Exchange
 
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