Reach Energy Berhad : 738 KB

REACH ENERGY

BERHAD

Company no: 201301004557 (1034400-D)

(Incorporated in Malaysia)

Report

on

Unaudited

Quarterly Financial Results

for the Period

1 Oct 2021

to

31 Dec 2021

(The figures have not been audited)

REACH ENERGY BERHAD

Company no. 201301004557 (1034400-D) (Incorporated in Malaysia)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

		INDIVIDUAL	INDIVIDUAL	CUMULATIVE	CUMULATIVE
		QUARTER	QUARTER	QUARTER	QUARTER
		Unaudited for	Audited for	Unaudited	Audited for
		the quarter	the quarter	for the year	the year
		ended	ended	ended	ended
		31 Dec 21	31 Dec 20	31 Dec 21	31 Dec 20
	Note	RM'000	RM'000	RM'000	RM'000
Revenue		54,558	22,440	150,691	79,542
Operating expenses
Taxes other than income taxes		(17,174)	(5,434)	(49,421)	(22,233)
Purchase, services and other direct
costs		(7,747)	(6,523)	(24,569)	(30,204)
Depreciation, depletion and
amortisation		(25,162)	(14,258)	(69,252)	(62,386)
Impairment of non-financial asset		-	(57,656)	-	(123,809)
Reversal of impairment of
non-financial asset		-	13,919	-	13,919
Distribution expenses		(4,296)	(2,656)	(13,583)	(12,806)
Employee compensation costs		(3,363)	(3,575)	(10,583)	(13,865)
General and administration
expenses		(18,368)	(3,192)	(15,858)	(17,551)
Net (loss)/reversal on impairment
of financial instruments		-	(1,326)	-	(1,326)
Other operating income/(expenses)
- net		(1,483)	(421)	(1,868)	2,930
Total operating expenses		(77,593)	(81,122)	(185,134)	(267,331)
Loss from operations		(23,035)	(58,682)	(34,443)	(187,789)
Finance income		262	132	17,649	2,114
Finance cost		(14,764)	(28,400)	(51,669)	(61,307)
Finance cost - net		(14,502)	(28,268)	(34,020)	(59,193)
Loss before taxation	B13	(37,537)	(86,950)	(68,463)	(246,982)
Income tax (expense)/benefit	B14	(23,960)	(12,476)	(13,371)	50,146
Loss for the financial period/year		(61,497)	(99,426)	(81,834)	(196,836)
Loss attributable to:
Owners of the Company		(63,378)	(75,449)	(53,108)	(128,690)
Non-controlling interests		1,881	(23,977)	(28,726)	(68,146)
Loss for the financial period/year		(61,497)	(99,426)	(81,834)	(196,836)
Loss per share attributable to
owners of the Company	B12
Basic loss per ordinary share (RM):		(0.06)	(0.07)	(0.05)	(0.12)
Diluted loss per ordinary share (RM):		(0.06)	(0.07)	(0.05)	(0.12)
Loss for the financial period/year		(61,497)	(99,426)	(81,834)	(196,836)
Other comprehensive
(expense)/income, net of tax
Items that will be reclassified
subsequently to (loss) or profit:
- Foreign currency translation
differences		(2,125)	2,122	(2,804)	9,500
Total comprehensive expense for the
financial period/year		(63,622)	(97,304)	(84,638)	(187,336)

The unaudited condensed consolidated statement of comprehensive income should be read in conjunction with the audited consolidated financial statements for the financial year ended 31 December 2020 and the accompanying explanatory notes.

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REACH ENERGY BERHAD

Company no. 201301004557 (1034400-D) (Incorporated in Malaysia)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (CONT'D)

	INDIVIDUAL	INDIVIDUAL	CUMULATIVE	CUMULATIVE
	QUARTER	QUARTER	QUARTER	QUARTER
	Unaudited for	Audited for	Unaudited	Audited
	the quarter	the quarter	for the year	for the year
	ended	ended	ended	ended
	31 Dec 21	31 Dec 20	31 Dec 21	31 Dec 20
Note	RM'000	RM'000	RM'000	RM'000
Total comprehensive expense
for the period/year attributable
to:
Owners of the Company	(64,654)	(74,142)	(54,790)	(122,956)
Non-controlling interests	1,032	(23,162)	(29,848)	(64,380)
Total comprehensive expense
for the financial period/year	(63,622)	(97,304)	(84,638)	(187,336)

The unaudited condensed consolidated statement of comprehensive income should be read in conjunction with the audited consolidated financial statements for the financial year ended 31 December 2020 and the accompanying explanatory notes.

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REACH ENERGY BERHAD

Company no. 201301004557 (1034400-D) (Incorporated in Malaysia)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		Unaudited	Audited
		As at 31 Dec 21	As at 31 Dec 20
	Note	RM'000	RM'000
Assets
Non-current assets
Property, plant and equipment		1,291,412	1,257,149
Intangible assets		1,299	1,490
Right use of assets		2,339	2,420
Prepayment and other receivables		3,469	3,274
Restricted cash		8,480	6,953
Total non-current assets		1,306,999	1,271,286
Current assets
Inventories		1,688	1,835
Trade receivables		849	5,664
Prepayment and other receivables		18,427	10,559
Amount due from corporate shareholder in a subsidiary		4,064	4,007
Deposits, cash and bank balances		44,452	10,163
Total current assets		69,480	32,228
Total assets		1,376,479	1,303,514
Liabilities
Current liabilities
Trade payables		69,536	55,824
Accruals and other payables		46,048	19,668
Lease liabilities		538	352
Amounts due to corporate shareholder in a subsidiary	A7	361,695	331,340
Current tax liabilities		2,878	2,886
Short term borrowing	A7	15,097	-
Provisions		1,757	11,205
Total current liabilities		497,549	421,275
Net current liabilities		(428,069)	(389,047)
Total assets less current liabilities		878,930	882,239
Non-current liabilities
Deferred tax liabilities		75,218	60,758
Amounts due to corporate shareholder in a subsidiary	A7	362,465	317,278
Trade payables		9,048	8,771
Accruals and other payables		-	334
Lease liabilities		1,654	2,079
Long term borrowing	A7	23,740	-
Provisions		3,930	5,506
		476,055	394,726
Net assets		402,875	487,513
Equity
Capital		488,975	488,975
Other reserves		180,160	181,842
Accumulated losses		(365,904)	(312,796)
Equity attributable to owners of the Company		303,231	358,021
Non-controlling interest		99,644	129,492
Total Equity		402,875	487,513
Net assets per share (RM)		0.37	0.44

The unaudited condensed consolidated statement of financial position should be read in conjunction with the audited consolidated financial statements for the financial year ended 31 December 2020 and the accompanying explanatory notes.

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REACH ENERGY BERHAD

Company no. 201301004557 (1034400-D) (Incorporated in Malaysia)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	-----------------------	Attributable to Equity Holders of the Company -------------------------	
	------------------------	Non-distributable-------------------------	
					Share-
					based	Foreign			Non-
				Warrants	payment	exchange	Accumulated		controlling	Total
			Capital	reserve	reserves	reserve	losses	Total	interest	Equity
			RM'000	RM'000	RM'000	RM'000	RM'000	RM'000	RM'000	RM'000
As at 1 January 2021	488,975	198,914	821	(17,893)	(312,796)	358,021	129,492	487,513
Loss for the financial year
	-	-	-	-	(53,108)	(53,108)	(28,726)	(81,834)
Other comprehensive expense, net of tax
- Foreign currency translation	-	-	-	(1,682)	-	(1,682)	(1,122)	(2,804)
Total comprehensive expense for the financial year
-	-	-	(1,682)	(53,108)	(54,790)	(29,848)	(84,638)
As at 31 December 2021	488,975	198,914	821	(19,575)	(365,904)	303,231	99,644	402,875

The unaudited condensed consolidated statement of changes in equity should be read in conjunction with the audited consolidated financial statements for the financial year ended 31 December 2020 and the accompanying explanatory notes.

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