22 May 2024

 

Rockhopper Exploration plc

("Rockhopper", the "Group" or the "Company")

 

Full-Year Results for the Year Ended 31 December 2023

 

Rockhopper Exploration plc (AIM: RKH), the oil and gas exploration and production company with key interests in the North Falkland Basin, is pleased to announce its audited results for the year ended 31 December 2023.

 

2023 HIGHLIGHTS

 

Sea Lion Development

 

Navitas Petroleum LP ("Navitas") provided details of the updated Field Development Plan ("FDP") and additional independent resource report by Netherland Sewell & Associates ("NSAI").*

 

·    New independent resource report commissioned by Navitas Petroleum LP

o  Optimised for the specifications of identified and available redeployable Floating Production and Offloading vessels ("FPSO"s)

o  2C resource base 791mmbbls, up from 712mmbbls

o  Initial development stage targeting 312mmbbls, up from 269mmbbls

o  Peak rate up to 55k bopd

o  Prolonged plateau of c.8 years

o  Improved economics, reduced breakeven at US$25/bbl cost life of field

§ Cost to first oil US$1.2bn

§ Capex per bbl US$8 life of field

§ Opex per bbl US$17 life of field

§ NPV 10 > US$4bn gross to the JV at US$77/bbl Brent **

·    Environment Impact Statement ("EIS") pre-consultation started in November 2023

·    Navitas continues to refine Field Development Plan ("FDP")

·    Navitas actively working with leading industry vendors to secure all long lead equipment

 

Ombrina Mare Arbitration Award (the "Award")

 

Monetisation of the Award

·    Monetisation of Award to Specialist Fund payable in 3 tranches:

o  Tranche 1 - Rockhopper will retain approximately €15million (pre-tax) of an initial gross payment of €45million, the balance going to pay the initial litigation funder and available for legal success fees;

o  Tranche 2 - Rockhopper will retain 100% of a payment of €65million upon a successful annulment outcome.  This amount to be reduced on a partial annulment; and

o  Tranche 3 - Rockhopper will retain 100% of a profit share of 20% on recovery above amounts in excess of 200% of the Specialist Funds total investment costs.

·    Transaction requires Falkland Island Government ("FIG") consent to complete

o  Work continues with FIG to secure consent which should be obtained by end June 2024

·    Should consent not be obtained by end June 2024, either side has right to terminate

o  The Specialist Fund is paying the legal costs associated with the Award from 20 December 2023

o  In case of non-completion, Rockhopper will compensate the Specialist Fund based on their legal fees incurred

 

Annulment Proceedings

·    Italy requested to annul Arbitration Award in October 2022

·    Annulment hearing completed April 2024

·    Rockhopper and advisors remain confident in merits of legal case

·    Continue to be hopeful a decision is possible before the end of 2024

 

Corporate and Financial

 

·    High calibre, experienced and independent Board

·    Focus on maintaining balance sheet strength

·    Continued management of costs

 

* Rockhopper is not an addressee and has not been party to the production of the 2024 NSAI Independent Report. The 2024 NSAI Independent Report has been produced to PRMS standards. The last independent resource report commissioned directly by Rockhopper was the ERCE 2016 Report which had an estimated 2C value of 517mmbbls. See RNS dated 22 January 2024.

 

** Post royalty, pre-tax.

 

 

Simon Thomson, Chair of Rockhopper, commented:

 

"I am delighted to have joined Rockhopper at such a pivotal point in the Company's history. Whilst risks plainly remain, it is possible that by this time next year we will have both completed the monetisation of our Ombrina Mare Arbitration and seen FID at Sea Lion. Both would be hugely significant catalysts for the Company, and represent the culmination of many years of hard work by our dedicated team. I look forward to working with the team to unlock real shareholder value over the years to come."

 

Enquiries:

 

Rockhopper Exploration plc

Sam Moody - Chief Executive Officer

Tel. +44 (0) 20 7390 0234 (via Vigo Consulting)

 

Canaccord Genuity Limited (NOMAD and Joint Broker)

Henry Fitzgerald-O'Connor/James Asensio/Ana Ercegovic

Tel. +44 (0) 20 7523 8000

 

Peel Hunt LLP (Joint Broker)

Richard Crichton/Georgia Langoulant

Tel. +44 (0) 20 7418 8900

 

Vigo Consulting

Patrick d'Ancona/Ben Simons/Fiona Hetherington

Tel. +44 (0) 20 7390 0234

 

Note regarding financial information disclosure

 

The financial information set out below does not constitute the Group's statutory accounts for the year ended 31 December 2023, but is derived from those accounts. References within the document may refer to information in the statutory accounts and these will be sent to shareholders and published on the Company's website imminently.

 

 

CHAIR AND CEO REVIEW

 

INTRODUCTION

 

Global uncertainty continued during the year, with conflict in the Middle East as well as the continued war in Ukraine, and continued underinvestment in new oil projects leading to oil prices averaging over US$80/bbl during the year.

 

Navitas Petroleum LP ("Navitas") continued to refine the Sea Lion development which we believe is now in the most advanced stage in its history.

 

The monetisation of the Ombrina Mare Arbitration Award (the "Award"), subject to the approval of FIG, will provide material near term capital certainty and should, assuming a successful annulment outcome, provide most and potentially all the required Rockhopper equity for Phase 1 of the Sea Lion development.

 

The refined Sea Lion development is, in our view, highly competitive in a global market. We believe the main impediment to sanction remains the Argentine sovereignty claim of the Falkland Islands. The claim does mean certain service providers and financial institutions choose not to provides services for fear of a potential impact an association may have on their businesses in Argentina.

 

SEA LION DEVELOPMENT

 

Over the course of the year, Navitas continued to refine and improve the Sea Lion development and we believe the project is now at its most advanced stage to date. In January 2024, a new independent Netherland Sewell & Associates ("NSAI") report was produced and is available on the Navitas website ("2024 NSAI Report")*. This report confirms an increase in both the overall 2C resource base and recovery during the first phase of the development. The refined development plan continues to be based on a phased approach utilising a drill to fill approach, with the first phase now targeting 312mmbbls from a total of 23 wells with a peak rate of up to 55k bopd, an increase of some 16% in recovery. This optimised development scheme is based on the use of identified Floating Production, Storage and Offtake vessels ("FPSO") which are both suitable and available.  Discussions are advanced with a number of contractors who are available and interested in offering all services required to bring the project into production.  Environmental Impact Statement ("EIS") pre-consultation began in November 2023.

 

Per barrel cost life of field (rounded):

Capex	US$8
Opex	US$17
Total cost	US$25

 

In January 2024, Navitas published the 2024 NSAI Report which is available on Navitas' website, and contains the following resource estimates:

 

	1C (mmbbls)	2C (mmbbls)	3C (mmbbls)
Development Pending	228	312	406
Development Unclarified	281	479	757
Total	509	791	1,163

 

The project break even oil price has been lowered during the year, with capex per barrel under US$10 per bbl and opex under US$20 per bbl on a life of field basis for the first phase. The updated independent NSAI report confirms an NPV 10 in excess of US$4bn to the JV (comprising Navitas and Rockhopper) at US$77/bbl Brent on a post royalty, pre tax basis.

 

These numbers highlight that our 35% working interest in Sea Lion, which benefits from two attractive loans from Navitas, will be a highly valuable asset once sanctioned at current oil prices.  The next steps towards securing Final Investment Decision ("FID") and Project Sanction will be the aforementioned EIS public consultation, securing contractors and putting in place a viable financing plan. All of this work is currently ongoing.

 

 

Ombrina Mare Monetisation

 

As announced on 20 December 2023, we signed an agreement with a regulated specialist fund (the "Specialist Fund") to accelerate the monetisation (the "Monetisation") of our Ombrina Mare Arbitration award (the "Award").

 

Details of the payment structure of the Monetisation are below:

 

Tranche 1

Rockhopper will retain approximately €15 million of an upfront payment of €45million on completion. As previously disclosed, Rockhopper entered into a litigation funding agreement in 2017 under which all costs relating to the Arbitration from commencement to the rendering of the Award were paid on its behalf by a separate specialist arbitration funder (the "Original Arbitration Funder"). That agreement entitles the Original Arbitration Funder to a proportion of any proceeds from the Award or any monetisation of the Award. Rockhopper has entered into an agreement with the Original Arbitration Funder to pay €26 million of the Tranche 1 proceeds to discharge all of its liabilities under the agreement with the Original Arbitration Funder. In addition, on successfully contesting the annulment Rockhopper owes previously disclosed success fees to its legal representatives. After making these payments, Rockhopper will retain approximately €15million of the Tranche 1 payment and 100 per cent of all Tranche 2 and 3 payments.

Tranche 2

Additional contingent payment of €65 million upon a successful annulment outcome. Should the Award be partially annulled, and the quantum reduced as a result, then Tranche 2 will be reduced such that the amounts under Tranche 1 and Tranche 2 shall be adjusted downward on a pro-rata basis. For example, if the quantum of the Award is reduced by 20%, then the amounts under Tranche 1 and Tranche 2 shall be reduced by 20%. For the avoidance of doubt, the amounts under Tranche 1 and Tranche 2 shall not reduce below €45m in any circumstance.

Tranche 3

Potential payment of 20% on recovery of amounts in excess of 200% of the Specialist Fund's total investment including costs.

Tax will also be payable on Rockhopper's share of the proceeds from the monetisation of the Award. These calculations are complex and are unlikely to be resolved for some months, but Rockhopper currently estimates that the approximate effective tax rate of between 10-15% is likely.

The transaction requires consent from FIG by 30 June 2024 in order to complete.  We are currently working with FIG to secure this consent. Should FIG consent not be obtained by the end of June, either side can terminate the agreement with Rockhopper compensating the Specialist Fund from any eventual monetisation or recovery on the basis of legal fees incurred.

 

On 11 and 12 April 2024, a 2-day annulment hearing was held before an ad hoc Panel put together by ICSID under the relevant rules. Following the hearing, the ad hoc committee considering the annulment request has instructed that it will shortly provide questions to both parties who are to respond in writing by 18 June 2024. Based on post-hearing legal advice, Rockhopper remains confident in the strength of its legal case and remains hopeful that a decision will be reached on the annulment by the end of 2024.

 

We believe that, should we secure a positive annulment outcome and the Award monetisation completes, we will be in a strong position to provide our share of the required equity for the Sea Lion project.

 

Corporate and Financial

 

Following the completion of our capital raise in 2022, we enjoyed a very high take up of warrants issued with 93.9% being exercised. Our balance sheet remains strong with some US$8.0 million in cash at year end, with a further US$2.0 million received post year end through warrant proceeds and an additional c.€15million in cash due on completion of the Award Monetisation. Normal working capital requirements and projected recurring expenditure remain low at only US$4.0 million per annum, representing a reduction of over 60% compared to 2014. We maintain a small, highly experienced team of technical experts and have an unparalleled history of success in the North Falkland Basin, in depth knowledge of operating in the Falklands, and of Sea Lion itself.

 

We were delighted to welcome both Simon Thomson and Paul Mayland to the Board in October, both of whom bring direct and highly relevant knowledge, not only of offshore oil field developments but also listed E&P companies and international arbitration. 

 

We take this opportunity to thank Keith Lough and John Summers for their time on the Board and wish them every success in the future.

 

ENVIRONMENTAL, SOCIAL AND GOVERNANCE

 

As always, ESG remains a focus for Rockhopper. We maintain a highly experienced Board and have a long-term relationship with the Falkland Islands, visiting regularly.  As Operator, Navitas will determine the manner in which the Sea Lion oil field will be developed, and we are confident they will do so in a responsible manner. We reaffirm our commitment to report transparently and mitigate our own emissions as far as it is practicable.

 

Outlook

 

Whilst there continue to be some risks, with a strong balance sheet, a signed transaction to monetise the Ombrina Mare Arbitration and a highly economic Sea Lion development plan in place, we believe your Company remains well placed to deliver long term value to its shareholders.

 

* Rockhopper is not an addressee and has not been party to the production of the 2024 NSAI Independent Report. The 2024 NSAI Independent Report has been produced to PRMS standards. The last independent resource report commissioned directly by Rockhopper was the ERCE 2016 Report which had an estimated 2C value of 517 MMbbls. See RNS dated 22 January 2024.

 

 

 

FINANCIAL REVIEW

 

OVERVIEW

 

From a finance perspective, the most significant event in 2023 was announcement of the Monetisation as discussed in detail in the Chair and CEO's Review. From a financial perspective, this has no impact on the results for the period to 31 December 2023 as the Monetisation did not complete before year end.

 

The Award was made in September 2022 and Italy applied to have the Award annulled in October 2022. As such, the Award is still considered a contingent asset and is not recognised in the financial statements.

 

RESULTS FOR THE YEAR

 

For the year ended 31 December 2023, the Group had no revenues (2022: US$0.7 million) and a loss after tax of US$4.6 million (2022: profit after tax of US$35.5 million). The loss for the year is in line with expectations and further details are provided below.

 

REVENUE AND COST OF SALES

 

Following cessation of production in Italy, the Group had no revenues during the year (2022: US$0.7 million). Revenues in the prior year related entirely to the sale of natural gas in the Greater Mediterranean (specifically Italy) region.

 

Cost of sales amounted to US$0.9 million (2022: US$2.0 million). The prior year cost of sales included US$1.0 million in costs associated with increasing decommissioning provisions. Excluding these amounts, which were driven by particularly high global inflation rates, cost of sales reduced slightly. Even though there has been no revenue in the period there are costs associated with maintaining the various production concessions whilst potential options for redevelopment are considered.

 

OPERATING COSTS

 

Exploration and evaluation expenses are not material in the year. The impairment in the current year of US$0.2 million (2022: US$0.3 million) due to cost write offs relating to the South Falkland Basin and areas of the North Falkland Basin which will not be developed as part of the Sea Lion Phase 1 project.

 

The Group continues to manage corporate costs and has achieved significant reductions in recurring G&A costs over the last five years. In light of the sharp reduction in oil prices experienced in the first half of 2020, initiatives to further reduce corporate costs commenced in May 2020. As part of this ongoing focus on costs the Rome office was closed during 2023.

 

Administrative expenses have increased during the year to US$4.3 million (2022: US$3.6 million). These costs include legal fees in relation to contesting the Annulment of the Award of US$1.6 million (2022: US$0.2 million). The Group chose to use existing resources to fund all legal costs arising from contesting the request by Italy for Annulment while it explored all acceptable funding possibilities. Following signing of the Monetisation agreement, the Specialist Fund are responsible for all legal fees, therefore no costs have been incurred in relation to the Arbitration in 2024 to date. Administrative expenses excluding these legal fees have reduced by approximately US$0.7 million.

 

In prior years foreign exchange movements were impacted by the tax liability arising from the Group's 2012 farm-out, a GBP denominated balance. This liability also impacted on finance expenditure as it was deferred and hence discounted. During the prior year this liability was derecognised and so has no impact in the current year. The foreign exchange gain in the year of US$0.3 million (2022: gain of US$6.6 million) is therefore materially smaller, something that is expected to continue going forward. The tax liability is discussed further below.

 

Finance expenses have reduced significantly to US$0.5 million (2022: US$4.2million). As well as prior year exchange differences on tax balances there was a loss on fair value of derivative financial liabilities of US$0.5 million. This related to fair value adjustments on Warrants issued as part of the 2022 Placing and Subscription ("Warrants") which were treated as derivative financial liabilities and as such carried at fair value on the balance sheet.

 

Full year 2023 saw a gain on derivative financial liabilities of US$0.9 million. This, along with an increase in interest receivable on term deposits, explains the finance income during the year of US$1.2 million as opposed to negligible amounts in 2022.

 

CASH MOVEMENTS AND CAPITAL EXPENDITURE

 

At 31 December 2023, the Group had cash and term deposits of US$8.0 million (31 December 2022: US$9.8 million).

 

Cash and term deposit movements during the period:

 

	US$m
Opening cash balance (31 December 2022)	9.8
Cost of sales	(0.9)
Falkland Islands	(1.3)
Administrative expenses	(4.3)
Net proceeds of warrant exercises	3.7
Miscellaneous	1.0
Closing cash balance (31 December 2023)	8.0

 

Miscellaneous includes foreign exchange and movements in working capital during the period.

 

The additions to intangible exploration and evaluation assets during the year of US$5.4 million relate principally to the Sea Lion development. Management considered whether there were any indicators of impairment to the carrying value of the intangible as it relates to the first phase of the Sea Lion development and concluded there were none.

 

We continue to impair amounts capitalised in relation to licences that hold discovered barrels of oil that would be produced in any subsequent phases of development. This is in line with accounting standards given the limited capital we are currently spending on these licences. We continue to believe that these licences are hugely valuable and the Group's long‐term strategy is still for multiple phases of development in the North Falkland Basin which would eventually include these licences. This is discussed in more detail in note 14 to the financial statements.

 

TAXATION

 

On the 8 April 2015, the Group agreed binding documentation ("Tax Settlement Deed") with the FIG in relation to the tax arising from the Group's 2012 farm out. The Tax Settlement Deed confirms the quantum and deferment of the outstanding tax liability and is made under Extra Statutory Concession 16. The Tax Settlement Deed also states that the Group is entitled to make adjustment to the outstanding tax liability if and to the extent that the Commissioner is satisfied that any part of the Development Carry becomes irrecoverable.

 

In September 2022 the transaction enabling Harbour Energy plc ("Harbour") to exit and Navitas to enter the North Falkland Basin completed (the "Transaction"). Under the Transaction the balance of development carry, approximately US$670 million, has become irrecoverable.

 

Due to the irrecoverable Development Carry in the Group's judgment no further amounts are due on the Group's 2012 farm-out. Given the highly material nature of this judgment professional advice has been sought to confirm that it is probable that the Group is entitled to adjust the outstanding tax liability for the irrecoverable Development Carry. As such, in the prior year, the Group derecognised the tax liability to measure it at the most likely amount it will be settled for, US$nil. We understand that FIG still believe that the £59.6 million to be due and we are currently engaged with FIG to resolve this matter.

 

Should it be proven that there is no entitlement to adjustment under the Tax Settlement Deed then the outstanding tax liability would be £59.6 million and still payable on the earlier of: (i) the first royalty payment date on Sea Lion; (ii) the date of which Rockhopper disposes of all or a substantial part of the Group's remaining licence interests in the North Falkland Basin; or (iii) a change of control of Rockhopper Exploration plc. In this improbable instance Management believes the most likely timing of payment is in line with the first royalty payment.

 

Separately, we have submitted tax returns in relation to the farm out to Navitas that occurred immediately after their acquisition from Harbour of the company that holds the North Falkland's Basin licences. The consideration for this transaction was the provision of loan funding to the Group to cover the majority of its share of Sea Lion phase 1 related costs from transaction completion up to FID through a loan from Navitas with interest charged at 8% per annum (the "Pre-FID Loan"). Subject to a positive FID, Navitas will provide an interest free loan to fund two-thirds of the Group's share of Sea Lion phase 1 development costs (for any costs not met by third party debt financing). Whilst we continue to engage with FIG on the value of this consideration, we are confident that we have sufficient losses to ensure no tax liability will arise.

 

Based on correspondence with FIG, Management does not believe that the farmout constitutes a substantial disposal and therefore would not have accelerated the £59.6 million liability should it be shown to still be payable.

 

The prior year derecognition of the tax liability led to a tax income of US$38.8 million. The tax liability had been treated as long term and hence discounted. In 2022, the unwinding of discounts on the previously recognised liability, prior to derecognition, was US$3.4 million and treated as a finance expense. This was offset by prior year foreign exchange gains of US$7.8 million.

 

Warrants

 

During the prior year Rockhopper raised US$9.1 million, post expenses, by way of a Placing and Subscription in June 2022 and an Open Offer in July 2022 (together the "Fund Raising"). In each case at an issue price of 7 pence per Unit (the "Issue Price"). Each Unit offered comprised one new ordinary share ("New Ordinary Share") and, for every two New Ordinary Shares subscribed for, one warrant ("Warrant").

 

Each Warrant gave the holder the right to subscribe for one new Ordinary Share at a price of 9 pence per Ordinary Share (the "Strike Price") at any time from the issue of the Warrants up to (and including) 5.00 p.m. on 31 December 2023.

 

During the year 32.4 million Warrants were exercised, raising US$3.7 million. Immediately after the year end a further 20.3 million shares were issued in relation to Warrants that were validly exercised pre year end and prior to their expiry. This raised an additional US$2.0 million of net proceeds. Of the 60,917,237 Warrants issued as part of the Fund Raising, 93.9% were exercised.

 

LIQUIDITY, COUNTERPARTY RISK AND GOING CONCERN

 

The Group monitors its cash position, cash forecasts and liquidity on a regular basis and takes a conservative approach to cash management. At 31 December 2023, the Group had cash and cash equivalents and term deposits of US$8.0 million.

 

After the year end, the Group received the proceeds of warrants validly exercised pre year end but where shares were allotted in 2024. This raised additional net proceeds of approximately US$2.0 million.

 

Historically, the Group's largest annual expenditure has been pre-sanction costs associated with the Sea Lion development. Following completion of Navitas coming into the North Falkland Basin (the "Navitas Transaction"), the Group benefits from loan funding for its share of all Sea Lion pre-sanction costs (other than licence fees and taxes). Following the Navitas Transaction, normal working capital requirements and projected recurring expenditure is expected to be around US$4.0 million per year in addition to costs associated with maintaining the various licences and concessions in the Group's Italian portfolio.

 

Under these base assumptions the Group has sufficient financial headroom to meet forecast cash requirements for the twelve months from the date of approval of these consolidated financial statements but would need to raise additional funds to meet ongoing liabilities in the second half of 2025.

 

As detailed in note 26 on contingent assets, the Group was awarded approximately €190 million plus interest and costs pursuant to an International Centre for the Settlement of Investment Disputes ("ICSID") arbitration from Italy (the "Award"). In October 2022 Italy requested to have this Award annulled.

 

In December 2023 the Group entered into a funded participation agreement with a Specialist Fund (the "Monetisation") the key terms of which are also set out in note 26 and include a requirement for the approval of the Falkland Islands Government (the "Approval"). Under the terms of the Monetisation either party can terminate the agreement should the Approval not be received by 30 June 2024.

 

In the event the Approval is granted before termination of the Monetisation, regardless of whether Italy is successful in its request to have the Award annulled, the Group will receive net pre-tax proceeds of €15 million after discharging all of its liabilities under the agreement with the original Arbitration Funder and certain success fees to its legal representatives.

 

In the event the Approval is not granted, and the Award is annulled no amounts would fall due in relation to previously funded litigations as they are linked to receipt of proceeds from the Award. Similarly, no success fees would fall due. However, in the event Approval is not granted and the Award is not annulled the success fees of approximately £3 million would be due to our legal representatives. Under this downside scenario the Group would need to raise additional funds to meet ongoing liabilities at the beginning of 2025.

 

Accordingly, after making enquiries and considering the risks described above, the Directors have reviewed the Group's overall position and are of the opinion that the Group is able to operate as a going concern for at least the next twelve months from the date of approval of these financial statements and believe the use of the going concern basis is appropriate.

 

Nonetheless, for the avoidance of doubt, in the downside scenarios in which the Monetisation does not complete and additional funding is not raised, material uncertainties exist that may cast significant doubt upon the Group's ability to continue as a going concern and the Group may therefore be unable to realise its assets and discharge its liabilities in the ordinary course of business. The Consolidated and Parent Company financial statements do not include adjustments that would result if the Group was unable to continue as a going concern.

 

PRINCIPAL RISK AND UNCERTAINTIES

 

A detailed review of the potential risks and uncertainties which could impact the Group are outlined elsewhere in this Strategic Report. The Group identified its key risks at the end of 2023 as being:

 

1              oil price volatility; 

2              availability and access to capital;

3              joint venture partner alignment; and

4              failure of joint venture partners to secure the requisite funding to allow a Sea Lion Final Investment Decision.

 

 

 

CONSOLIDATED INCOME STATEMENT
for the year ended 31 December 2023
	Notes	Year ended 31 December 2023 $'000	Year ended 31 December 2022 $'000
Revenue	3	-	652
Cost of sales	4	(870)	(1,965)
Gross loss		(870)	(1,313)
Exploration and evaluation expenses	5	(278)	(331)
Administrative expenses	6	(4,286)	(3,625)
Charge for share based payments	9	(117)	(393)
Foreign exchange movement	10	307	6,596
Results from operating activities		(5,244)	934
Finance income	11	1,191	23
Finance expense	11	(497)	(4,175)
Loss before tax		(4,550)	(3,218)
Tax income	12	-	38,763
(Loss)/profit for the year attributable to the equity shareholders of the parent company		(4,550)	35,545
(Loss)/profit per share attributable to the equity shareholders of the parent company: cents
Basic	13	(0.77)	6.77
Diluted	13	(0.77)	6.68
All operating income and operating gains and losses relate to continuing activities.

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2023
	Year ended 31 December	Year ended 31 December
	2023	2022
	$'000	$'000
Loss/(profit) for the year	(4,550)	35,545
Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations	(502)	1,683
Total comprehensive (loss)/profit for the year	(5,052)	37,228
The notes on pages 51 to 71 form an integral part of these consolidated financial statements.