Financial Performance - Production revenue for the three months ended June 30, 2023, was CAD 2,391,000, a decrease of 73% compared to CAD 8,893,000 in the same period of 2022[8]. - Average daily sales for the six months ended June 30, 2023, were 1,550 barrels of oil equivalent per day, down 22% from 1,988 barrels per day in the same period of 2022[8]. - The company reported a net operating loss of CAD 447,000 for the three months ended June 30, 2023, compared to a net operating income of CAD 4,347,000 in the same period of 2022, representing a 110% change[8]. - Basic and diluted loss per share for the six months ended June 30, 2023, was CAD 0.01, compared to earnings of CAD 0.02 in the same period of 2022, reflecting a 144% change[8]. - The company reported a net loss of CAD 1,966 thousand in Q2 2023, compared to a profit of CAD 5,358 thousand in Q2 2022[20]. - Revenue for the three months ended June 30, 2023, was CAD 2.9 million, a decrease of 62.0% compared to CAD 7.7 million for the same period in 2022[152]. - Operating loss for the six months ended June 30, 2023, was CAD 3.5 million, compared to an operating income of CAD 10.1 million for the same period in 2022[152]. - The company reported a net loss of CAD 4.1 million for the six months ended June 30, 2023, compared to a net income of CAD 8.4 million for the same period in 2022[152]. Assets and Liabilities - Total assets as of June 30, 2023, were CAD 48,474,000, a decrease from CAD 52,399,000 as of December 31, 2022[9]. - Total liabilities as of June 30, 2023, were CAD 43,803,000, slightly increased from CAD 43,721,000 as of December 31, 2022[9]. - The company’s total equity as of June 30, 2023, was CAD 4,671,000, down from CAD 8,678,000 as of December 31, 2022[9]. - The company’s cash and cash equivalents decreased significantly from CAD 333.2 million at the end of 2022 to CAD 109.2 million by June 30, 2023, a reduction of approximately 67.2%[150]. - The company’s total liabilities included long-term payables of CAD 14,503 thousand and other liabilities of 577 thousand CAD as of June 30, 2023[56]. - As of June 30, 2023, the company's long-term debt stood at 8,121 thousand CAD, with total capital amounting to 44,950 thousand CAD and a capital-to-debt ratio of 90%[56]. Production and Sales - The average daily natural gas production in Q2 2023 was 6,644 thousand cubic feet, a decrease of 33.6% compared to Q2 2022's 10,371 thousand cubic feet[20]. - Total production in Q2 2023 was 1,210 barrels of oil equivalent per day, down 34.5% from 1,855 barrels in Q2 2022[20]. - The average daily crude oil production in Q2 2023 was 63 barrels, slightly up from 56 barrels in Q2 2022[20]. - Total sales volume decreased by 36% and 23% for the three and six months ended June 30, 2023, respectively, primarily due to production interruptions from wildfires[27]. - Natural gas production dropped by 36% year-over-year for the three months ended June 30, 2023, with an estimated 30% reduction attributed to wildfires[27]. Costs and Expenses - Operating costs for natural gas, natural gas liquids, and condensate increased by 4% to 3,257 thousand CAD for the three months ended June 30, 2023, primarily due to increased gas collection and processing fees[43]. - General and administrative expenses decreased by 57% to 301 thousand CAD for the three months ended June 30, 2023, mainly due to reduced shadow unit plan costs and lower consulting fees[44]. - The average cost per barrel of oil equivalent increased by 57% to 30.50 CAD for the three months ended June 30, 2023, compared to 19.47 CAD in the same period of 2022[43]. - The company reported a total of CAD 22,356,551 in payables as of June 30, 2023, compared to CAD 20,882,800 at the end of 2022, indicating an increase of approximately 7%[180]. Financing and Capital Management - The company is actively seeking alternative financing opportunities, including joint ventures and asset sales, to manage capital expenditures and leverage[102]. - The company has implemented cost-cutting measures and capital management initiatives to improve cash flow and financial stability[102]. - The company issued 10 million shares at a price of HKD 1.11 per share in November 2022, raising funds for operations[17]. - The company completed a private placement with Jilin, raising a total of HKD 12.8 million (CAD 2.05 million) by issuing 16 million shares at HKD 0.80 per share[62]. - The company raised a total of CAD 4.31 million from the Dalian second phase subscription, with 35% allocated for drilling new wells, 45% for subordinated debt principal repayment, and 20% for general working capital[70]. Risk Management and Compliance - The company has emphasized the importance of monitoring risks and uncertainties that may affect future performance, indicating a cautious outlook[12]. - The management discussion and analysis was published on August 14, 2023, highlighting the need for investors to consider forward-looking statements with caution[11]. - The company has established risk management policies to identify and analyze financial risks, including accounts receivable and payable, cash and cash equivalents, and shareholder loans[91]. - The company actively engages with stakeholders, including local communities and regulatory bodies, to manage potential concerns related to its operations[94]. - The oil and gas industry is facing increased regulatory scrutiny, which may lead to higher operational costs and impact business continuity[105]. Shareholder Information - As of June 30, 2023, the company has issued and outstanding 449,886,520 common shares, with options issued at HKD 0.52 and HKD 0.48 for a total of 4.58 million options[3]. - Major shareholder Aspen Investment Holdings Limited holds 181,194,306 shares, representing approximately 40.28% of the issued share capital[126]. - The company did not declare dividends for the three or six months ended June 30, 2023, and June 30, 2022[82]. - The company has complied with the corporate governance code during the reporting period ending June 30, 2023[116]. Corporate Governance - The Audit and Risk Committee, consisting of three independent non-executive directors, reviewed the interim performance for the three and six months ended June 30, 2023[119]. - The company has established a written terms of reference for its Audit and Risk Committee to ensure proper governance[119]. - The company has maintained high standards of corporate governance to protect shareholder interests and enhance corporate value[116].
吉星新能源(03395) - 2023 - 中期财报