Investor Presentaiton
Armour Energy and controlled entities
armourenergy.com.au
Directors' report continued
for the year ended 30 June 2020
PRINCIPAL ACTIVITIES
The principal activities of the Company during the year were oil and gas exploration, and production. There was no significant
change in the nature of these activities.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There was no other significant change in the state of the affairs of the Company during the financial year that is not detailed
elsewhere in this report.
OPERATING AND FINANCIAL REVIEW
The loss for Armour after providing for income tax amounted to $9,570,777 (30 June 2019: $11,683,748).
FINANCIAL PERFORMANCE AND CASH FLOWS
UNDERLYING EBITDA (NON-IFRS MEASURE)
Underlying EBITDA reflects statutory EBITDA as adjusted to reflect the Director's assessment of the result for the ongoing business
activities of Armour. These numbers have not been audited.
Consolidated
30 June
2020
$
30 June
2019
$
Profit/(loss) before income tax and net finance expenses
Depreciation and amortisation
(1,901,998)
2,660,068
3,008,041
1,135,632
(127,546)
(192,524)
720,491
71,329
(28,218)
61,976
Finance income
Impairment and write-off of exploration assets
Net gain or loss on disposal of assets
For personal use only
26
Revenue from Contracts with Customers
Cost of Sales
Consolidated
Earnings before interest, depreciation, and amortisation (EBITDA)
30 June
30 June
2020
$
2019
CASH FLOW
$
1,670,770
3,736,481
21,103,928
(19,484,314)
27,819,335
(19,018,113)
In the year ended 30 June 2020, a total net cash outflow of $5.9 million was recorded. The net inflow from operating activities was
$3.3 million with $21.1 million of revenue positively contributing from operations.
1,619,614
(3,649,157)
127,546
(7,192,469)
(476,310)
8,801,222
(6,333,678)
192,524
(13,656,309)
Cash outflows from investing activities were $6.6 million, mainly attributable to the funds received from the execution of the farm-
in agreement with Santos covering Armour's oil and gas exploration project in Northern Australia, offset by costs relating to the
development and exploration activities around the Kincora project.
(687,507)
(9,570,777)
(11,683,748)
During the year, Armour closed a private placement in September 2019, raising gross proceeds of $4.0 million via the allotment
of 80 million shares. Quarterly principal and interest repayments totalling $9.8 million for the $55.0 million Secured Partially
Amortising Notes were made during the year. Net cash outflows from financing activities were $2.7 million.
Gross Profit
Other income and expenses
Finance income
Finance expenses
Income tax expense
Loss after income tax expense
Revenue from Contracts with Customers and Gross Profit significantly decreased during H2 largely due to lower commodity prices
(Oil and Gas), as a result of COVID-19 impacting the East Coast market. This was primarily caused by LNG customers claiming
Force Majeure on Australian Oil and Gas producers which caused an excess of gas flooding the market.
Finance expenses due to the early redemption of the Company's convertible notes in FY 2019.
Net cash at the beginning of the year
Net cash from operating activities
Net cash from investing activities
Net cash from financing activities
Net cash at the end of the year
Consolidated
30 June
2020
30 June
2019
$
9,225,176
(3,047,801)
(6,824,736)
3,893,064
5,104,627
(7,745,717)
(13,688,453)
25,554,719
3,245,703
9,225,176
27View entire presentation