Q1 2016 CONSOLIDATED FINANCIAL STATEMENTS · 2016-05-16 · Consolidated Statement of Income For...

Q1 2016CONSOLIDATED FINANCIAL STATEMENTS

Ithaca Energy Inc. Q1 2016 Financial Statements 1

Consolidated Statement of IncomeFor the three months ended 31 March 2016 and 2015

(unaudited)

Note

Revenue 5

- Operating costs

- Movement in oil and gas inventory

- Depletion, depreciation and amortisation

Cost of sales

Gross (Loss)

Exploration and evaluation expenses 10

Gain on financial instruments 26

Administrative expenses 6

Foreign exchange

Finance costs 7

Interest income

(Loss)/Profit Before Tax

Taxation 24

Profit/(Loss) After Tax

Earnings per share (US$ per share)

Basic 23

Diluted 23

The accompanying notes on pages 6 to 23 are an integral part of the financial statements.

502

5,179 29,122

(10,122)

(28,123)

(30,556)

(3,584)

(1,496)

(16,191)

(1,044)

17,712

0.04

2015

US$'000

70,375

(74,870)

(4,495)

(9,173)

(20,185)

(1,769)

2016

(421)

33,250

US$'000

(44,118)

(10,868)

(6,325)

(17,608)

29

(16,521)

(0.08)0.04

(0.08)

52

(34,511)

8,433

(26,078)

34,233


(unaudited)

Note

Current assets

Cash and cash equivalents CAS01

Accounts receivable 8 CAS02

Deposits, prepaid expenses and other CAS04

Inventory 9 CAS06

Derivative financial instruments 27 CAS10

Non-current assets

Long-term receivable 29

Long-term inventory 9

Investment in associate 13

Exploration and evaluation assets 10

Property, plant & equipment 11

Deferred tax assets

Goodwill 12

Total assets

LIABILITIES AND EQUITY

Current liabilities

Trade and other payables 15

Exploration obligation 16

Contingent consideration 20 CLB06

Derivative financial instruments 27 CLB07

Non-current liabilities

Borrowings 14 CLB02

Decommissioning liabilities 17 CLB04

Other long term liabilities 18 CLB03

Derivative financial instruments 27

Net assets

Shareholders' equity

Share capital 21

Share based payment reserve 22

Retained earnings

Total equity

The financial statements were approved by the Board of Directors on 13 May 2016 and signed on its behalf by:


94,239

5,434

21,859

213,793

15,057

350,382

123,510

355,726

61,052

1,679,802

7,908

11,223

1,102,046

18,337

2,062,881

(4,000)

(283,907)

(275,907)

(4,000)

(4,000)

(265,112)

(978,965)

2015

(229,430)

US$'000

Director

811,669

23,446

(642,183)

2,055,746

(1,304)

(107,352)

617,375

811,669

ASSETS

"Alec Carstairs"

170,848

617,375

1,095,507

2016

(255,808)

11,487

Director

"Les Thomas"

388,038

123,510

1,705,364

(4,000)

US$'000

31 December

Consolidated Statement of Financial Position

31 March

18,337

7,908

60,577

20,900

223,006

11,543

743

126,887

383,079

(666,130)

(92,543)

793,189

(226,915)

(985,785)

22,678

153,136

793,189

- -

-

(197)


Consolidated Statement of Changes in Equity(unaudited)

Balance, 1 Jan 2015

Share based payment

Loss for the period

Balance, 31 March 2015

Balance, 1 Jan 2016

Share based payment

Profit for the period

Balance, 31 March 2016


811,669

-

820,052

Total

1,123

793,189

(26,078)

US$'000

845,007

Retained

earnings

153,136

(26,078)

274,141

170,848

248,063

-

768

US$'000

17,712

19,234

Share based

payment reserve

US$'000

1,123 -

20,357

-

-

-

551,632

Share capital

US$'000

617,375

-

768

617,375

-

22,678

17,712

551,632

23,446


Consolidated Statement of Cash FlowFor the three months ended 31 March 2016 and 2015

(unaudited)

Note

Operating activities

(Loss)/Profit Before Tax

Adjustments for:

Depletion, depreciation and amortisation 11

Exploration and evaluation write off 10

Onerous contracts

Share based payment 21

Loan fee amortisation 7

Revaluation of financial instruments 26

Accretion on decommissioning provisions

Bank interest & charges

Cashflow from operations

Changes in inventory, debtors and creditors relating to operating activities

Petroleum Revenue Tax paid

Corporation Tax refunded

Investing activities

Capital expenditure

Loan to associate

Decommissioning

Financing activities

Loan (repayment)/ drawdown

Bank interest and charges


-

5,861

33,565

(1,732)

- (25,000)

(15,966) (75,192)

(15,163)

88,500

(60,246)

685

(2,037)

65,851

2015

1,044

(1,240)

17,608

421

158 (832)

25,909

11,543

(25,000) 16,701

10,316

8,433

2,238

Currency translation differences relating to cash and cash equivalents

Cash and cash equivalents, end of period

Net cash from financing activities

(8,818)

Cash and cash equivalents, beginning of period

21,859

Increase in cash and cash equivalents

180

Net cash from operating activities

1,177

30,556

(16,521)

-

US$'000US$'000

44,358

1,997 (20,917)

2016

49,556

(11,391)

1,040

111

-

Changes in debtors and creditors relating to investing activities

19,381

6,528

2,273

(5,796)

51,124

6,009

217

Net cash (used in) investing activities

26,280

(9,579)

6,707


1. NATURE OF OPERATIONS

2. BASIS OF PREPARATION

3. SIGNIFICANT ACCOUNTING POLICIES, JUDGEMENTS AND ESTIMATION UNCERTAINTY

Basis of measurement

Basis of consolidation

Goodwill

Capitalisation

The policies applied in these condensed interim consolidated financial statements are based on IFRS issued and outstanding as

of 13 May 2016, the date the Board of Directors approved the statements. Any subsequent changes to IFRS that are given effect

in the Corporation’s annual consolidated financial statements for the year ending 31 December 2016 could result in restatement of

these interim consolidated financial statements.

These interim consolidated financial statements have been prepared in accordance with International Financial Reporting

Standards (IFRS) applicable to the preparation of interim financial statements, including IAS 34 Interim Financial Reporting.

These interim consolidated financial statements do not include all the necessary annual disclosures in accordance with IFRS.

The condensed interim consolidated financial statements should be read in conjunction with the Corporation’s annual financial

statements for the year ended 31 December 2015.

Business Combinations

Subsidiaries are all entities, including structured entities, over which the group has control. The group controls an entity when the

group is exposed to or has rights to variable returns from its investments with the entity and has the ability to affect those returns

through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group.

They are deconsolidated on the date that control ceases.

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the fair value of

the assets acquired, equity instruments issued and liabilities incurred or assumed at the date of completion of the acquisition.

Acquisition costs incurred are expensed and included in administrative expenses. Identifiable assets acquired and liabilities and

contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The

excess of the cost of acquisition over the fair value of the Corporation's share of the identifiable net assets acquired is recorded as

goodwill. If the cost of the acquisition is less than the Corporation's share of the net assets acquired, the difference is recognised

directly in the statement of income as negative goodwill.

Goodwill acquired through business combinations is initially measured at cost, being the excess of the aggregate of the

consideration transferred and the amount recognised as the fair value of the Corporation's share of the identifiable net assets

acquired and liabilities assumed. If this consideration is lower than the fair value of the identifiable assets acquired, the difference

is recognised in the statement of income.

The interim consolidated financial statements of the Corporation include the financial statements of Ithaca Energy Inc. and all

wholly-owned subsidiaries as listed per note 29. Ithaca has twenty wholly-owned subsidiaries. All inter-company transactions and

balances have been eliminated on consolidation.

The consolidated financial statements are presented in US dollars and all values are rounded to the nearest thousand (US$ '000),

except when otherwise indicated.

The interim consolidated financial statements have been prepared under the historical cost convention, except for the revaluation

of certain financial assets and financial liabilities (under IFRS) to fair value, including derivative instruments.

The consolidated financial statements have been prepared on a going concern basis using the historical cost convention, except

for financial instruments which are measured at fair value.

Ithaca Energy Inc. (the “Corporation” or “Ithaca”), incorporated and domiciled in Alberta, Canada on 27 April 2004, is a publicly

traded company involved in the development and production of oil and gas in the North Sea. The Corporation's registered office is

1600, 333 - 7th Avenue S.W., Calgary, Alberta, Canada, T2P 2Z1. The Corporation's shares trade on the Toronto Stock

Exchange in Canada and the London Stock Exchange’s Alternative Investment Market in the United Kingdom under the symbol

“IAE”.


Impairment

Interest in joint operations

Revenue

Foreign currency translation

Share based payments

Cash and cash equivalents

Under the equity method, investments are carried at cost plus post-acquisition changes in the Corporation's share of net assets,

less any impairment in value in individual investments. The consolidated income statement reflects the Corporation's share of the

results and operations after tax and interest.

Under IFRS 11, joint arrangements are those that convey joint control which exists only when decisions about the relevant

activities require the unanimous consent of the parties sharing control. Investments in joint arrangements are classified as either

joint operations or joint ventures depending on the contractual rights and obligations of each investor. Associates are investments

over which the Corporation has significant influence but not control or joint control, and generally holds between 20% and 50% of

the voting rights.

Items included in the financial statements are measured using the currency of the primary economic environment in which the

Corporation and its subsidiaries operate (the ‘functional currency’). The consolidated financial statements are presented in United

States Dollars, which is the Corporation’s functional and presentation currency.

Interest income is recognised on an accruals basis and is separately recorded on the face of the statement of income.

The Corporation has a share based payment plan as described in note 21 (c). The expense is recorded in the consolidated

statement of income or capitalised for all options granted in the year, with the gross increase recorded in the share based

payment reserve. Compensation costs are based on the estimated fair values at the time of the grant and the expense or

capitalised amount is recognised over the vesting period of the options. Upon the exercise of the stock options, consideration paid

together with the amount previously recognised in share based compensation reserve is recorded as an increase in share capital.

In the event that vested options expire unexercised, previously recognised compensation expense associated with such stock

options is not reversed. In the event that unvested options are forfeited or expired, previously recognised compensation expense

associated with the unvested portion of such stock options is reversed.

The Corporation's interest in joint operations (eg exploration and production arrangements) are accounted for by recognising its

assets (including its share of assets held jointly), its liabilities (including its share of liabilities incurred jointly), its revenue from the

sale of its share of the output arising from the joint operation, its share of revenue from the sale of output by the joint operation

and its expenses (including its share of any expenses incurred jointly).

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the

transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at

year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of

income.

For the purpose of the statement of cash flow, cash and cash equivalents include investments with an original maturity of three

months or less.

Goodwill is tested annually for impairment and also when circumstances indicate that the carrying value may be at risk of being

impaired. Impairment is determined for goodwill by assessing the recoverable amount of each cash generating unit ("CGU") to

which the goodwill relates. Where the recoverable amount of the CGU is less than its carrying amount, an impairment loss is

recognised in the statement of income. Impairment losses relating to goodwill cannot be reversed in future periods.

Oil, gas and condensate revenues associated with the sale of the Corporation’s crude oil and natural gas are recognised when

title passes to the customer. This generally occurs when the product is physically transferred into a vessel, pipe or other delivery

mechanism. Revenues from the production of oil and natural gas properties in which the Corporation has an interest with joint

venture partners are recognised on the basis of the Corporation’s working interest in those properties (the entitlement method).

Differences between the production sold and the Corporation’s share of production are recognised within cost of sales at market

value.


Financial instruments

Inventory

Trade receivables

Trade payables

Property, plant and equipment

Oil and gas expenditure – exploration and evaluation assets

Capitalisation

Analyses of the fair values of financial instruments and further details as to how they are measured are provided in notes 26 to 28.

Pre-acquisition costs on oil and gas assets are recognised in the consolidated statement of income when incurred. Costs

incurred after rights to explore have been obtained, such as geological and geophysical surveys, drilling and commercial appraisal

costs and other directly attributable costs of exploration and evaluation including technical, administrative and share based

payment expenses are capitalised as intangible exploration and evaluation (“E&E”) assets.

Trade receivables are recognised and carried at the original invoiced amount, less any provision for estimated irrecoverable

amounts.

Trade payables are measured at cost.

E&E costs are not amortised prior to the conclusion of evaluation activities. At completion of evaluation activities, if technical

feasibility is demonstrated and commercial reserves are discovered then, following development sanction, the carrying value of

the E&E asset is reclassified as a development and production (“D&P”) asset, but only after the carrying value is assessed for

impairment and where appropriate its carrying value adjusted. If after completion of evaluation activities in an area, it is not

possible to determine technical feasibility and commercial viability or if the legal right to explore expires or if the Corporation

decides not to continue exploration and evaluation activity, then the costs of such unsuccessful exploration and evaluation are

written off to the statement of income in the period the relevant events occur.

Held-for-trading financial instruments are subsequently measured at fair value with changes in fair value recognised in net

earnings. All other categories of financial instruments are measured at amortised cost using the effective interest method. Cash

and cash equivalents are classified as held-for-trading and are measured at fair value. Accounts receivable are classified as loans

and receivables. Accounts payable, accrued liabilities, certain other long-term liabilities, and long-term debt are classified as other

financial liabilities. Although the Corporation does not intend to trade its derivative financial instruments, they are classified as held-

for-trading for accounting purposes.

All financial instruments are initially recognised at fair value in the statement of financial position. The Corporation’s financial

instruments consist of cash, accounts receivable, deposits, derivatives, accounts payable, accrued liabilities, contingent

consideration and borrowings. The Corporation classifies its financial instruments into one of the following categories: held-for-

trading financial assets and financial liabilities; held-to-maturity investments; loans and receivables; and other financial liabilities.

All financial instruments are required to be measured at fair value on initial recognition. Measurement in subsequent periods is

dependent on the classification of the respective financial instrument.

Inventories of materials and product inventory supplies are stated at the lower of cost and net realisable value. Cost is determined

on the first-in, first-out method. Current oil and gas inventories are stated at fair value less cost to sell. Non-current oil and gas

inventories are stated at historic cost.

Transaction costs that are directly attributable to the acquisition or issue of a financial asset or liability and original issue discounts

on long-term debt have been included in the carrying value of the related financial asset or liability and are amortised to

consolidated net earnings over the life of the financial instrument using the effective interest method.


Impairment

Oil and gas expenditure – development and production assets

Capitalisation

Depreciation

Impairment

Non oil and natural gas operations

Borrowings

Loan origination fees are capitalised and amortised over the term of the loan. Borrowing costs directly attributable to the

acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to

get ready for their intended use or sale, are added to the cost of those assets until such time as the assets are substantially ready

for their intended use of sale. All other borrowing costs are expensed as incurred.

Costs of bringing a field into production, including the cost of facilities, wells and subsea equipment, direct costs including staff

costs and share based payment expense together with E&E assets reclassified in accordance with the above policy, are

capitalised as a D&P asset. Normally each individual field development will form an individual D&P asset but there may be cases,

such as phased developments, or multiple fields around a single production facility when fields are grouped together to form a

single D&P asset.

All interest-bearing loans and other borrowings with banks are initially recognised at fair value net of directly attributable

transaction costs. After initial recognition, interest-bearing loans and other borrowings are subsequently measured at amortised

cost using the effective interest method. Amortised cost is calculated by taking into account any issue costs, discount or premium.

A review is carried out each reporting date for any indication that the carrying value of the Corporation’s D&P assets may be

impaired. For D&P assets where there are such indications, an impairment test is carried out on the CGU. Each CGU is identified

in accordance with IAS 36. The Corporation’s CGUs are those assets which generate largely independent cash flows and are

normally, but not always, single developments or production areas. The impairment test involves comparing the carrying value

with the recoverable value of an asset. The recoverable amount of an asset is determined as the higher of its fair value less costs

to sell and value in use, where the value in use is determined from estimated future net cash flows. Any additional depreciation

resulting from the impairment testing is charged to the statement of income.

Senior notes are measured at amortised cost.

The Corporation’s oil and gas assets are analysed into CGU for impairment review purposes, with E&E asset impairment testing

being performed at a grouped CGU level. The current E&E CGU consists of the Corporation’s whole E&E portfolio. E&E assets

are reviewed for impairment when circumstances arise which indicate that the carrying value of an E&E asset exceeds the

recoverable amount. When reviewing E&E assets for impairment, the combined carrying value of the grouped CGU is compared

with the grouped CGU's recoverable amount. The recoverable amount of a grouped CGU is determined as the higher of its fair

value less costs to sell and value in use. Impairment losses resulting from an impairment review are written off to the statement

of income.

All costs relating to a development are accumulated and not depreciated until the commencement of production. Depreciation is

calculated on a unit of production basis based on the proved and probable reserves of the asset. Any re-assessment of reserves

affects the depreciation rate prospectively. Significant items of plant and equipment will normally be fully depreciated over the life

of the field. However, these items are assessed to consider if their useful lives differ from the expected life of the D&P asset and

should this occur a different depreciation rate would be charged.

Computer and office equipment is recorded at cost and depreciated over its estimated useful life on a straight-line basis over

three years. Furniture and fixtures are recorded at cost and depreciated over their estimated useful lives on a straight-line basis

over five years.


Decommissioning liabilities

Onerous contracts

Contingent consideration

Taxation

Operating leases

Finance leases

The Corporation records the present value of legal obligations associated with the retirement of long-term tangible assets, such as

producing well sites and processing plants, in the period in which they are incurred with a corresponding increase in the carrying

amount of the related long-term asset. The obligation generally arises when the asset is installed or the ground/environment is

disturbed at the field location. In subsequent periods, the asset is adjusted for any changes in the estimated amount or timing of

the settlement of the obligations. The carrying amounts of the associated assets are depleted using the unit of production method,

in accordance with the depreciation policy for development and production assets. Actual costs to retire tangible assets are

deducted from the liability as incurred.

PRT is accounted for under IAS 12 since it has the characteristics of an income tax as it is imposed under Government authority

and the amount payable is based on taxable profits of the relevant field. Deferred PRT is accounted for on a temporary difference

basis.

Current income tax

Onerous contract provisions are recognised where the unavoidable costs of meeting the obligations under a contract exceed the

economic benefits expected to be received under it.

Deferred tax is recognised for all deductible temporary differences and the carry-forward of unused tax losses. Deferred tax assets

and liabilities are measured using enacted or substantively enacted income tax rates expected to apply to taxable income in the

years in which temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a

change in rates is included in earnings in the period of the enactment date. Deferred tax assets are recorded in the consolidated

financial statements if realisation is considered more likely than not.

Petroleum Revenue Tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation

authorities. The tax rates and tax laws used to compute the amounts are those that are enacted or substantively enacted by the

reporting date.

Contingent consideration is accounted for as a financial liability and measured at fair value at the date of acquisition with any

subsequent remeasurements recognised either in profit or loss or in other comprehensive income in accordance with IAS 39.

In addition to corporate income taxes, the Group's financial statements also include and disclose Petroleum Revenue Tax (PRT)

on net income determined from oil and gas production.

Rentals under operating leases are charged to the statement of income on a straight line basis over the period of the lease.

Deferred income tax

Finance leases that transfer substantially all the risks and benefits incidental to ownership of the leased item to the Corporation,

are capitalised at the commencement of the lease at the fair value of the leased property or, if lower, at the present value of the

minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to

achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in finance costs in the

income statement. A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that

the Corporation will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated

useful life of the asset and the lease term.

Deferred tax assets and liabilities are offset only when a legally enforceable right of offset exists and the deferred tax assets and

liabilities arose in the same tax jurisdiction.


Maintenance expenditure

Recent accounting pronouncements

Significant accounting judgements and estimation uncertainties

4. SEGMENTAL REPORTING

5. REVENUE

Three months ended 31 March

Oil sales REV01

Gas sales REV02

Condensate sales REV03

Other income REV04

6. ADMINISTRATIVE EXPENSES Three months ended 31 March

General & administrative EXP01

Share based payments EXP16

7. FINANCE COSTS Three months ended 31 March

US$'000 US$'000

Bank charges and interest

Senior notes interest

Finance lease interest

Non-operated asset finance fees

Prepayment interest

Loan fee amortisation

Accretion

(9,173)

-

(10,122)

(25)

(2,510)

(2,238)

(267)

32,031

2016 2015

(1,769)

Expenditure on major maintenance refits or repairs is capitalised where it enhances the life or performance of an asset above its

originally assessed standard of performance; replaces an asset or part of an asset which was separately depreciated and which is

then written off, or restores the economic benefits of an asset which has been fully depreciated. All other maintenance

expenditure is charged to the statement of income as incurred.

1,071

US$'000

55320

2015

US$'000

33,250

68,270

The amounts recorded for depletion, depreciation of property and equipment, long-term liability, share based payment, contingent

consideration, onerous contract provisions, decommissioning liabilities, derivatives, and deferred taxes are based on estimates.

The depreciation charge, any impairment tests and fair value estimates for the purpose of purchase price allocation (business

combinations) are based on estimates of proved and probable reserves, production rates, prices, future costs and other relevant

assumptions. By their nature, these estimates are subject to measurement uncertainty and the effect on the financial statements

of changes in such estimates in future periods could be material. Further information on each of these estimates is included within

the notes to the financial statements.

US$'000

(1,177)

(3,905)

70,375

(254)

(3,404)

The Company operates a single class of business being oil and gas exploration, development and production and related

activities in a single geographical area presently being the North Sea.

1,399

New and amended standards and interpretations need to be adopted in the first financial statements issued after their effective

date (or date of early adoption). There are no new IFRSs or IFRICs that are effective for the first time for this period that would be

expected to have a material impact on the Corporation.

(180)

2016

(1,658)

US$'000

153

The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions

regarding certain assets, liabilities, revenues and expenses. Such estimates must often be made based on unsettled transactions

and other events and a precise determination of many assets and liabilities is dependent upon future events. Actual results may

differ from estimated amounts.

128

(111)

(3,584)

(4)

(622)

(1,040)

(1,150)

20152016

(2,273)

(3,830)


8. ACCOUNTS RECEIVABLE

Trade debtors

Accrued income

9. INVENTORY

Current

Crude oil inventory

Materials inventory

Non-current

Crude oil inventory

10. EXPLORATION AND EVALUATION ASSETS

At 1 January 2015

Additions

Disposals

Release of exploration obligations

Write offs/relinquishments

Impairment

At 31 December 2015 and 1 January 2016

Additions

Write offs/relinquishments

At 31 March 2016

209,887

2016US$'000 US$'000

(421)

213,793

3,906

31 March

223,006

2016

15,057

2015

(1,431)

(30,522)

(44,005)

US$'000

89,844

US$'000

2015

31 Dec31 March

US$'000

1,856

US$'000

31 Dec

11,487

685

Following completion of geotechnical evaluation activity, certain North Sea licences were declared unsuccessful and certain

prospects were declared non-commercial. This resulted in the carrying value of these licences being fully written off to nil with

$0.4 million being expensed in the period to 31 March 2016.

US$'000

13,201

(32,926)

18,721

996

222,010

11,223

20,900

7,908 7,908

2,179

30,263


11. PROPERTY, PLANT AND EQUIPMENT

Development & Production Other fixed

Cost

At 1 January 2015

Additions

Disposals

Release of onerous contract provision


Additions

At 31 March 2016

DD&A and Impairment

At 1 January 2015

DD&A charge for the period

Disposals

Impairment charge for the period


DD&A charge for the period

At 31 March 2016

NBV at 1 January 2015

NBV at 1 January 2016

NBV at 31 March 2016

12. GOODWILL 31 March 31 Dec

Closing balance

13. INVESTMENT IN ASSOCIATES 31 March 31 Dec

Investment in FPF-1 and FPU Services

2,482,010

2,493,078

(1,398,362)

11,069

3,406 2,485,416

Total

1

(72)

2,496,485

123,510

(1,380,826)

1,435,209

(17,608)

791

US$'000

3,407

11,068

- (377)

(1,451)

(377)

141,318

(17,536)

(1,400,978)(2,616)

1,433,764

862

1,445

The net book amount of property, plant and equipment includes $29.9 million (31 December 2015: $32.1 million) in respect of the

Pierce FPSO lease held under finance lease.

1,094,716

Investment in associates comprises shares, acquired by Ithaca Energy (Holdings) Limited, in FPF-1 Limited and FPU Services

Limited as part of the completion of the Greater Stella Area transactions in 2012. There has been no change in value during the

period with the above investment reflecting the Company's share of the associates' results.

2016

123,510

US$'000

2015

18,337

2016

18,337

(2,544)

2015

(1,383,370)

(353,753)

$123.5 million goodwill represents $136.1 million recognised on the acquisition of Summit Petroleum Limited as a result of

recognising a $136.9 million deferred tax liability as required under IFRS 3 fair value accounting for business combinations.

Absent the deferred tax liability the price paid for the Summit assets equated to the fair value of the assets. $1.0 million

represented goodwill recognised on the acquisition of gas assets from GDF in December 2010. As at 31 December 2015 a non-

taxable impairment of $13.6 million was recorded relating to goodwill.

1,095,507

US$'000

1,102,046

US$'000

1,101,184

(907,305) (2,695) (910,000)

(119,768)

(353,753)

-

-

(120,230)(462)

613

-

2,341,069

Oil and Gas Assets

US$'000US$'000

assets

717 142,035

2,345,209 4,140

(1,451)

US$'000

613


14. BORROWINGS

31 March

RBL facility 38004

Senior notes 38002

Long term bank fees

Long term senior notes fees

Bank debt facilities

Senior Reserves Based Lending Facility

Junior Reserves Based Lending Facility

Senior Notes

Covenants

The key covenants in both the Senior and Junior RBLs are:

(376,793)

31 Dec

2015

US$'000

3,884

As at 31 March 2016, the Corporation had a Junior Reserved Based Lending ("Junior RBL") Facility of $75 million. The facility

remains undrawn at the period end.

- A corporate cashflow projection showing total sources of funds must exceed total forecast uses of funds for the later of the

following 12 months or until forecast first oil from the Stella field.

- The ratio of the net present value of cashflows secured under the RBL for the economic life of the fields to the amount drawn

under the facility must not fall below 1.15:1

- The ratio of the net present value of cashflows secured under the RBL for the life of the debt facility to the amount drawn under

the facility must not fall below 1.05:1.

US$'000

As at 31 March 2016, the Corporation had a Senior Reserved Based Lending ("Senior RBL") Facility of $575 million. As at 31

March 2016, $352 million (31 December 2015: $377 million) was drawn down under the Senior RBL. $6.0 million (31 December

2015: $6.8 million) of loan fees relating to the RBL have been capitalised and remain to be amortised.

2016

(300,000)

(351,793)

The Corporation was in compliance with all its relevant financial and operating covenants during the period.

3,602

(642,183)

There are no financial maintenance covenants tests under the senior notes.

The Corporation is subject to financial and operating covenants related to the facilities. Failure to meet the terms of one or more

of these covenants may constitute an event of default as defined in the facility agreements, potentially resulting in accelerated

repayment of the debt obligations.

(666,130)

The Company's bank debt facilities are sized at $650 million: a $575 million senior RBL and a $75 million junior RBL. Both RBL

facilities are based on conventional oil and gas industry borrowing base financing terms, with loan maturities in September 2018,

and are available to fund on-going development activities and general corporate purposes. The combined interest rate of the two

bank debt facilities, fully drawn, is LIBOR plus 3.4% prior to Stella coming on-stream, stepping down to LIBOR plus 2.9% after

Stella production has been established.

As at 31 March 2016, the Corporation had $300 million 8.125% senior unsecured notes due July 2019, with interest payable semi-

annually. $3.6 million of loan fees (31 December 2015: $3.9 million) have been capitalised and remain to be amortised.

6,008

Security provided against the facilities

The RBL facilities are secured by the assets of the guarantor members of the Ithaca Group, such security including share

pledges, floating charges and/or debentures.

The Senior notes are unsecured senior debt of Ithaca Energy Inc., guaranteed by certain members of the Ithaca Group and

subordinated to existing and future secured obligations.

(300,000)

The availability to draw upon the facilities is reviewed by the bank syndicate on a semi-annual basis, with the results of the April

2016 redetermination resulting in debt availability of over $430 million.

6,779


15. TRADE AND OTHER PAYABLES 31 March 31 Dec

Trade payables

Accruals and deferred income

16. EXPLORATION OBLIGATIONS 31 March 31 Dec

Exploration obligations

17. DECOMMISSIONING LIABILITIES 31 March 31 Dec

US$'000 US$'000

Balance, beginning of period

Additions

Accretion

Revision to estimates

Decommissioning provision utilised

Balance, end of period

18. OTHER LONG-TERM LIABILITIES 31 March 31 Dec

US$'000 US$'000

Shell oil prepayment

BP gas prepayment

Finance lease


-

(2,279)

(2,273)

(62,690)

2016

(14,598)

(226,915)

(30,316)

(107,352)

(30,064)

The prepayment balances relate to cash advances under the Shell oil sales agreement and BP gas sales agreement which have

been classified as long-term liabilities as short-term repayment is not due in the current commodity price environment. The

finance lease relates to the Pierce FPSO acquired as part of the Summit acquisition in July 2014.

(92,543)

2015

US$'000

(4,000) (4,000)

US$'0002016

(62,227)

(226,915)

(9,092)

The total future decommissioning liability was calculated by management based on its net ownership interest in all wells and

facilities, estimated costs to reclaim and abandon wells and facilities and the estimated timing of the costs to be incurred in future

periods. The Corporation uses a risk free rate of 4.0 percent (31 December 2015: 4.0 percent) and an inflation rate of 2.0 percent

(31 December 2015: 2.0 percent) over the varying lives of the assets to calculate the present value of the decommissioning

liabilities. These costs are expected to be incurred at various intervals over the next 20 years.

The economic life and the timing of the obligations are dependent on Government legislation, commodity price and the future

production profiles of the respective production and development facilities.

-

US$'000

(229,430)

US$'000

(129,719)

(146,188)

(275,907)(255,808)

2015

The above reflects the fair value of E&E commitments assumed as part of the Valiant transaction.

(115,124)

(140,684)

-

(213,105)

(4,718)

-

2,037

2016 2015

2016 2015


19. FINANCE LEASE LIABILITIES

31 March 31 Dec

US$'000 US$'000

Total minimum lease payments

Less than 1 year

Between 1 and 5 years

5 years and later

Interest

Less than 1 year


5 years and later

Present value of minimum lease payments

Less than 1 year


5 years and later

20. CONTINGENT CONSIDERATION

31 March 31 Dec

US$'000 US$'000

Balance outstanding

21. SHARE CAPITAL

Number of Amount Authorised share capital ordinary shares US$'000

At 31 March 2016 and 31 December 2015 Unlimited -

(a) Issued

The issued share capital is as follows:

Issued Number of Amount common shares US$'000

Balance 1 January 2016 and 31 March 2016

(b) Stock options

31 March 2016 31 December 2015


Granted

Forfeited / expired

19,216,206

(400,000)

950,00012,000,000

(12,537)

The contingent consideration at the end of the period relates to the acquisition of the Stella field and is payable subsequent to first

oil.

(5,966,222)

Wt. Avg Exercise

Price *

Wt. Avg Exercise

Price *

(994)

Changes to the Corporation’s stock options are summarised as follows:

617,375

In the quarter ended 31 March 2016, the Corporation's Board of Directors granted 12,000,000 options at an exercise price of

$0.40 (C$0.55).

24,232,428

$0.84

(8,485)

(4,052)

(980)

(3,401)

(4,123)

2016

(1,614)

No. of OptionsNo. of Options

19,216,206

(23,502)

(8,447)

2015

30,816,206

(19,494)

$2.28

(2,595)

(1,608)

$1.70

(12,570)

$1.70

(4,000) (4,000)

Options

$0.40

The Corporation’s stock options and exercise prices are denominated in Canadian Dollars when granted. As at 31 March 2016,

30,816,206 stock options to purchase common shares were outstanding, having an exercise price range of $0.40 to $2.51

(C$0.55 to C$2.71) per share and a vesting period of up to 3 years in the future.

$2.05

(3,569)

$1.19

2016 2015

(2,602)

The finance lease relates to the Pierce FPSO acquired as part of the Summit acquisition in July 2014.

(19,933)

(22,895)

$1.81

411,384,045


The following is a summary of stock options as at 31 March 2016

Wt. Avg. Wt. Avg. Wt. Avg. Wt. Avg.

Life Exercise Life Exercise

(Years) Price * (Years) Price *

1.7 $2.47 1.7 $2.47

2.1 $1.22 1.5 $1.55

3.8 $0.40 - -

2.7 $1.19 1.6 $1.94

The following is a summary of stock options as at 31 December 2015

Wt. Avg. Wt. Avg. Wt. Avg. Wt. Avg.

Life Exercise Life Exercise

(Years) Price * (Years) Price *

1.9 $2.46 1.6 $2.44

2.4 $1.22 1.7 $1.54

2.2 $1.70 1.7 $1.84

(c) Share based payments

Risk free interest rate

Expected stock volatility

Expected life of options

Weighted Average Fair Value

22. SHARE BASED PAYMENT RESERVE

31 March 31 Dec


Share based payment cost


19,216,206

7,326,205

5,830,001

Options Outstanding

$0.84-$2.03

(C$1.04-C$1.99)

$2.28-$2.52

(C$2.31-C$2.71)

11,890,001 5,800,001

$2.28-$2.52

(C$2.31-C$2.71) 2,953,333

$0.40 (C$0.55) -

$0.84-$2.03

(C$1.04-C$1.99) 11,890,001

Options Exercisable

$0.40 (C$0.55)

23,446

768

22,678

0.53%

22,678

3 years

12,000,000

Options granted are accounted for using the fair value method. The cost during the three months ended 31 March 2016 for total

stock options granted was $0.8 million (Q1 2015: $1.1 million). $0.1 million was charged through the statement of income for

stock based compensation for the three months ended 31 March 2016 (Q1 2015: $0.2 million), being the Corporation’s share of

stock based compensation chargeable through the statement of income. The remainder of the Corporation’s share of stock based

compensation has been capitalised. The fair value of each stock option granted was estimated at the date of grant, using the

Black-Scholes option pricing model with the following assumptions:

30,816,206

For the year ended

31 December 2015

$2.46-$2.51

(C$2.53-C$2.71)

19,234

3,444

2015

Range of

Exercise Price

60%

$0.43

US$’000

59%

2016

US$’000

For the three months ended

31 March 2016

$0.84-$2.03

(C$1.04-C$1.99)

$2.46-$2.51

(C$2.53-C$2.71)

Range of

Exercise Price No. of Options

Options Exercisable

8,753,334

0.65%

* The weighted average exercise price has been converted into U.S. dollars based on the foreign exchange rate in effect at the

date of issuance.

Range of

Exercise Price

Options Outstanding

No. of Options

$0.84-$2.03

(C$1.04-C$1.99)

10,105,002

No. of Options

Range of

Exercise Price

6,926,205 4,275,001

$0.22

3 years

No. of Options


23. EARNINGS PER SHARE


Weighted average number of common shares (basic)

Weighted average number of common shares (diluted)

24. TAXATION


Taxation

25. COMMITMENTS

31 March 31 Dec

Operating lease commitments

Within one year

Two to five years

31 March 31 Dec

Capital commitments

Capital commitments incurred jointly with other venturers (Ithaca's share)

2016

329,518,620411,384,045

2016

2016

2015

(34,511)

240

US$'000

411,384,045

It was announced in the UK Budget on 16 March 2016 that the rate of Petroleum Revenue Tax ("PRT") was effectively abolished

from 1 January 2016 with the introduction of a 0% PRT rate. This eliminated the Company's future PRT tax charge from 1

January 2016. The PRT rate change has been enacted and is therefore reflected in the Q1 2016 results.

Further, it was also announced that the Supplementary Charge in respect of ring fence trades ("SCT") will be reduced from 20%

to 10% with effect from 1 January 2016. This will reduce the Company's future SCT charge accordingly. The impact of the 10%

reduction in the Supplementary Charge will reduce the net deferred tax assets by approximately $87 million and is expected to

impact the financial statements later in 2016 when the rate change is enacted.

US$'000

In accordance with the Stella Sale and Purchase Agreement ("SPA"), Ithaca receives the right to claim a tax benefit for additional

capital allowances on certain capital expenditures incurred by Ithaca and paid for by Petrofac on the Stella project.

The tax benefit of these capital allowances is received by Ithaca as the expenditure is incurred. In recognition of the benefit Ithaca

receives from the additional capital allowances a payment is expected to be made to Petrofac 5 years after Stella first oil of a

sum calculated at the prevailing tax rate applied to the relevant capital allowances, in accordance with the SPA. The taxation

credit above includes a deferred tax credit of $3.5 million for the three months ended 31 March 2016 resulting in a related deferred

tax asset at 31 March 2016 of $90.1 million.

US$000

US$'000

2016

US$000

2015

9,534

2015

US$'000

The calculation of basic earnings per share is based on the profit after tax and the weighted average number of common shares in

issue during the period. The calculation of diluted earnings per share is based on the profit after tax and the weighted average

number of potential common shares in issue during the period.

2015

34,233

15,386

329,518,620

300 240

Ithaca will pay Petrofac $13.7 million in respect of final payment on variations to the contract, with payment deferred until three

and a half years after first production from the Stella field. A further payment to Petrofac of up to $34 million will be made by

Ithaca dependent on the timing of sail-away of the FPF-1. The maximum payment could have been achieved for delivering sail-

away of the vessel from the shipyard prior to the end of March 2016, with this incentive payment eroding on a daily basis to zero

by 31 July 2016. This payment will also be deferred until three and a half years after first production from the Stella field.

240


26. FINANCIAL INSTRUMENTS


Derivative financial instrument asset

Derivative financial instrument liability


Revaluation of forex forward contracts

Revaluation of other liability

Revaluation of commodity hedges

Revaluation of interest rate swaps

Realised loss on forex contracts

Realised gain on commodity hedges

Realised (loss) on interest rate swaps

Total gain on financial instruments through the income statement 29,122

39,163

US$'000

5,179

• Level 3 – inputs that are less observable, unavailable or where the observable data does not support the majority of the

instrument’s fair value.

307

(4,000)

(49,556)

(47,995)

-

(10)

(419)

(1,220)

78,776

2015

(32,335)

-

To estimate fair value of financial instruments, the Corporation uses quoted market prices when available, or industry accepted

third-party models and valuation methodologies that utilise observable market data. In addition to market information, the

Corporation incorporates transaction specific details that market participants would utilise in a fair value measurement, including

the impact of non-performance risk. The Corporation characterises inputs used in determining fair value using a hierarchy that

prioritises inputs depending on the degree to which they are observable. However, these fair value estimates may not necessarily

be indicative of the amounts that could be realised or settled in a current market transaction. The three levels of the fair value

hierarchy are as follows:

Level 3

-

-

Level 1

(1,626)

• Level 2 – inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly, as of the

reporting date. Level 2 valuations are based on inputs, including quoted forward prices for commodities, market interest rates, and

volatility factors, which can be observed or corroborated in the marketplace. The Corporation obtains information from sources

such as the New York Mercantile Exchange and independent price publications.

In forming estimates, the Corporation utilises the most observable inputs available for valuation purposes. If a fair value

measurement reflects inputs of different levels within the hierarchy, the measurement is categorised based upon the lowest level

of input that is significant to the fair value measurement. The valuation of over-the-counter financial swaps and collars is based on

similar transactions observable in active markets or industry standard models that primarily rely on market observable inputs.

Substantially all of the assumptions for industry standard models are observable in active markets throughout the full term of the

instrument. These are categorised as Level 2.

(1,304)

• Level 1 – inputs represent quoted prices in active markets for identical assets or liabilities (for example, exchange-traded

commodity derivatives). Active markets are those in which transactions occur in sufficient frequency and volume to provide pricing

information on an ongoing basis.

US$'000

-

(98)

-

US$'000

2016

US$'000

78,678 38,744

-

Level 2

(242)

(33,565)

(4,000)

(1,304) 94,239

The table below presents the total gain on financial instruments that has been disclosed through the statement of income at the

quarter end:

-

US$'000 US$'000

The following table presents the Corporation’s material financial instruments measured at fair value for each hierarchy level as of

31 March 2016:

Total Fair Value

-

94,239


i) Commodity Risk


Revaluation of commodity hedges

Realised gain on commodity hedges

Derivative Term Volume Average price

Oil swaps bbls

Oil Capped swaps bbls

therms

* Exposure to increase in oil price capped at $102/bbl

ii) Interest Risk


Revaluation of interest contracts

Realised (loss) on interest contracts

Derivative Value Rate

1.24%


Revaluation of forex forward contracts

Realised (loss) on forex forward contracts

39,163

Apr 16 - June 17 1,917,534 $67.1/bbl

Apr 16 - June 17

therms

114,100,000 63p/therm

68,341Apr 16 - June 16 $65.5/bbl *

Gas swaps Apr 16 - Mar 17 47p/therm6,263,546

Gas puts

Total gain on commodity hedges

78,776

(419)

$50 million

(1,220)

2016

6,828

(1,639)

The below represents commodity hedges in place at the quarter end:

Calculation of interest payments for the RBL Facility agreement incorporates LIBOR. The Corporation is therefore exposed to

interest rate risk to the extent that LIBOR may fluctuate. The below represents interest rate financial instruments in place:

Commodity price risk related to crude oil prices is the Corporation’s most significant market risk exposure. Crude oil prices and

quality differentials are influenced by worldwide factors such as OPEC actions, political events and supply and demand

fundamentals. The Corporation is also exposed to natural gas price movements on uncontracted gas sales. Natural gas prices, in

addition to the worldwide factors noted above, can also be influenced by local market conditions. The Corporation’s expenditures

are subject to the effects of inflation, and prices received for the product sold are not readily adjustable to cover any increase in

expenses from inflation. The Corporation may periodically use different types of derivative instruments to manage its exposure to

price volatility, thus mitigating fluctuations in commodity-related cash flows.

2015

Total (loss) on forex forward contracts

iii) Foreign Exchange Rate Risk

2016

US$'000

(47,995)

The table below presents the total gain/(loss) on commodity hedges that has been disclosed through the statement of income at

the quarter end:

The Corporation has identified that it is exposed principally to these areas of market risk:

US$'000

Term

US$'000

(1,626)

Interest rate swap

2015

The table below presents the total (loss) on foreign exchange financial instruments that has been disclosed through the statement

of income at the quarter end:

Apr 16 - Dec 16

2016

US$'000

(1,626)

-

US$'000

(10)

(98)

(32,335)

(340)

2015

Total (loss) on interest contracts (10)

- (242)

30,781

The table below presents the total (loss) on interest financial instruments that has been disclosed statement of income at the

quarter end:

US$'000


Derivative Term Value Protection rate Trigger rate

$1.47/£1.00 N/a

$1.48/£1.00 N/a

Accounts payable and accrued liabilities

Other long term liabilities

Borrowings

27. DERIVATIVE FINANCIAL INSTRUMENTS

31 March 31 December

US$'000 US$'000

Oil swaps

Oil capped swaps

Gas swaps

Gas puts

Interest rate swaps

Foreign exchange forward contract

7,117

61,602

126

£1.6 million/month

126,690

1,690

£1.6 million/month

(1,097)

(749,535)

The Corporation may be exposed to certain losses in the event that counterparties to derivative financial instruments are unable to

meet the terms of the contracts. The Corporation’s exposure is limited to those counterparties holding derivative contracts with

positive fair values at the reporting date. As at 31 March 2016, exposure is $94.2 million (31 December 2015: $126.9 million).

56,352

(197)

Liquidity risk includes the risk that as a result of its operational liquidity requirements the Corporation will not have sufficient funds

to settle a transaction on the due date. The Corporation manages liquidity risk by maintaining adequate cash reserves, banking

facilities, and by considering medium and future requirements by continuously monitoring forecast and actual cash flows. The

Corporation considers the maturity profiles of its financial assets and liabilities. As at 31 March 2016 substantially all accounts

payable are current.

(255,808)

(107,352)

1,764

47,429

1,483

(642,183)

v) Liquidity Risk

2016

iv) Credit Risk

The Corporation regularly monitors all customer receivable balances outstanding in excess of 90 days. As at 31 March 2016,

substantially all accounts receivables are current, being defined as less than 90 days. The Corporation has no allowance for

doubtful accounts as at 31 March 2016 (31 December 2015: $Nil).

The Corporation is exposed to foreign exchange risks to the extent it transacts in various currencies, while measuring and

reporting its results in US Dollars. Since time passes between the recording of a receivable or payable transaction and its

collection or payment, the Corporation is exposed to gains or losses on non USD amounts and on balance sheet translation of

monetary accounts denominated in non USD amounts upon spot rate fluctuations from quarter to quarter.

The Corporation assesses partners’ credit worthiness before entering into farm-in or joint venture agreements. In the past, the

Corporation has not experienced credit loss in the collection of accounts receivable. As the Corporation’s exploration, drilling and

development activities expand with existing and new joint venture partners, the Corporation will assess and continuously update

its management of associated credit risk and related procedures.

-

US$'000

1 to 5 years

92,935

2015

The Corporation also has credit risk arising from cash and cash equivalents held with banks and financial institutions. The

maximum credit exposure associated with financial assets is the carrying values.

-

The following table shows the timing of cash outflows relating to trade and other payables:

(205)

43,561

Within 1 year

US$'000

(255,808)

The Corporation’s accounts receivable with customers in the oil and gas industry are subject to normal industry credit risks and

are unsecured. Oil production from Cook, Broom, Dons, Pierce, Causeway and Fionn is sold to Shell Trading International Ltd.

Wytch Farm oil production is sold on the spot market. Topaz gas production is sold to Hartree Partners Oil and Gas. Cook gas is

sold to Shell UK Ltd and Esso Exploration & Production UK Ltd.

-

Apr 16 - Dec 16

The below represents foreign exchange financial instruments in place at the quarter end:

Forward

Apr 16 - Dec 16Forward


28. FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES

Classification

Cash and cash equivalents (Held for trading)

Derivative financial instruments (Held for trading)

Accounts receivable (Loans and Receivables)

Deposits

Long-term receivable (Loans and Receivables)

Bank debt (Loans and Receivables)


Derivative financial instruments (Held for trading)

Other long term liabilities

Accounts payable (Other financial liabilities)

29. RELATED PARTY TRANSACTIONS

Country of incorporation % equity interest at 31 March

Ithaca Energy (UK) Limited Scotland 100% 100%

Ithaca Minerals (North Sea) Limited Scotland 100% 100%

Ithaca Energy (Holdings) Limited Bermuda 100% 100%

Ithaca Energy Holdings (UK) Limited Scotland 100% 100%

Ithaca Petroleum Limited England and Wales 100% 100%

Ithaca North Sea Limited England and Wales 100% 100%

Ithaca Exploration Limited England and Wales 100% 100%

Ithaca Causeway Limited England and Wales 100% 100%

Ithaca Gamma Limited England and Wales 100% 100%

Ithaca Alpha Limited Northern Ireland 100% 100%

Ithaca Epsilon Limited England and Wales 100% 100%

Ithaca Delta Limited England and Wales 100% 100%

Ithaca Petroleum Holdings AS Norway 100% 100%

Ithaca Petroleum Norge AS* Norway Nil 100%

Ithaca Technology AS Norway 100% 100%

Ithaca AS Norway 100% 100%

Ithaca Petroleum EHF Iceland 100% 100%

Ithaca SPL Limited England and Wales 100% Nil

Ithaca Dorset Limited England and Wales 100% Nil

Ithaca SP UK Limited England and Wales 100% Nil

Ithaca Pipeline Limited England and Wales 100% Nil

*Ithaca Petroleum Norge AS was disposed of in Q2 2015.

2016 - -

2015 - -

743743

223,006

11,543

126,887

223,006

11,543

(666,130)

Fair Value

(666,130)

(92,543)

(197) (197)

(92,543)

126,887

(4,000)

61,052 61,052

Burstall Winger Zammit LLP

Fair Value

213,793

60,577

21,859

(1,304)

21,859

31 March 2016

US$'000

(4,000)(4,000)

(107,352)

The consolidated financial statements include the financial statements of Ithaca Energy Inc. and its wholly-owned subsidiaries,

listed below, and its net share in its associates FPU Services Limited and FPF-1 Limited.

Purchases

Accounts

Receivable

(4,000)

US$'000

Transactions between subsidiaries are eliminated on consolidation.

US$'000

(38)

Accounts

Payable

2016

The following table provides the total amount of transactions that have been entered into with related parties during the quarter

ending 31 March 2016 and 31 March 2015, as well as balances with related parties as of 31 March 2016 and 31 December 2015:

(275,907)

(22)35

125

(275,907)

Financial instruments of the Corporation consist mainly of cash and cash equivalents, receivables, payables, loans and financial

derivative contracts, all of which are included in these financial statements. At 31 March 2016, the classification of financial

instruments and the carrying amounts reported on the balance sheet and their estimated fair values are as follows:

5,434

US$'000 US$'000

Sales

Carrying Amount

Carrying

Amount

2015

(107,352)

(1,304)

5,434

US$'000

(255,808) (255,808)

213,793

94,239 94,239

(642,183)

31 December 2015

(642,183)

60,577


Loans to related parties Amounts owed from related parties

FPF-1 Limited

FPU Services Limited

30. SEASONALITY

210

60,842

54

The effect of seasonality on the Corporation's financial results for any individual quarter is not material.

60,523

A director of the Corporation is a partner of Burstall Winger Zammit LLP who acts as counsel for the Corporation.

US$'000 US$'000

2016 2015


Date post:	28-Mar-2020
Category:	Documents
Upload:	others
View:	0 times
Download:	0 times

Q1 2016 CONSOLIDATED FINANCIAL STATEMENTS · 2016-05-16 · Consolidated Statement of Income For...

Documents