Coro Energy : Interim Report 2021

Interim Report 2021

Stock code: CORO

SUPPORTING THE

REGIONAL TRANSITION

TO A LOW-CARBON

ECONOMY

Stock code: CORO

CORO IS A SOUTH EAST ASIAN ENERGY COMPANY SUPPORTING THE REGIONAL TRANSITION TO A LOW-CARBON ECONOMY.

We are investing in a balanced portfolio of energy assets to satisfy increasing regional demand.

Visit Coro Energy plc online:

WWW.COROENERGYPLC.COM FOR THE LATEST NEWS, REPORTS, PRESENTATIONS AND VIDEOS

@COROENERGY

CORO ENERGY PLC

Contents

Statement from the Chairman and	01
Chief Executive Officer
Financial Review	04
Condensed Consolidated Statement	06
of Comprehensive Income
Condensed Consolidated Balance	07
Sheet
Condensed Consolidated Statement	08
of Changes in Equity
Condensed Consolidated Statement	10
of Cash Flows
Notes to the Condensed	11
Consolidated Financial Statements

Coro Energy PLC

www.coroenergyplc.com

STATEMENT FROM THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER

We have secured an exciting portfolio of clean energy projects across the South East Asian region, with the Company now well placed to continue its momentum through the remainder of 2021 and into next year."

MARK HOOD

Chief Executive Officer

Twelve months ago we announced that the Company was embarking on a strategic pivot, which transitioned the Company from a hydrocarbon-led strategy to one centred on low carbon energy investments. The Board is pleased to report that we have made strong progress in the first half of 2021 towards building

a leading regional low carbon energy company.

As an initial step on that transition, the Company made its maiden clean energy investment in ion Ventures Holdings Ltd ("ion" or "ion Ventures") in November 2020, acquiring 20.3% of ion Ventures, a developer of energy storage and flexible energy assets, for £500k. Only six months later this investment was validated when ion announced a new partnership with GLIL Infrastructure Fund LLP ("GLIL") which could see GLIL commit up to £150m of capital to develop ion's portfolio of grid scale energy storage assets in the UK, which have now been vended in to a newly formed entity, Flexion Energy Holdings UK Limited, in which ion currently holds a carried 5% interest. GLIL is an infrastructure investment fund with £2.5bn funds under management, backed by Local Pensions Partnership and Northern LGPS. We also expect significant value to be added through the continuing development of ion's South East Asian pipeline, which is still wholly owned by ion and where Coro retains a right of first refusal to invest.

Following our strategic investment in ion Ventures, in March 2021 we completed the acquisition of Global Energy Partnership Limited ("GEPL"), a South East Asia centric developer of clean energy projects. With

Interim Report 2021

01

Stock code: CORO

STATEMENT FROM THE CHAIRMAN

AND CHIEF EXECUTIVE OFFICER

this acquisition, we secured a pipeline of operated renewable energy projects across the region, with an initial focus on the Philippines. We also welcomed Mark Hood, co-founder of GEPL and an experienced clean energy executive, to the Board

of Directors as the Group's new Chief Executive Officer.

Post-acquisition of GEPL, our focus has been on establishing the Group's operating infrastructure in the Philippines and progressing two priority projects, a 100 MW solar project and 100 MW onshore wind project, both located in the Visayas region of the Philippines.

We added to our clean energy portfolio, post-period, entering into a new partnership in Vietnam to develop rooftop solar projects together with a local partner, Vinh Phuc Energy ("VPE"). VPE are a leading Vietnamese solar asset owner and Engineering, Procurement and Construction contractor, with an experienced team of over 90 operational staff and extensive experience deploying solar photovoltaic ("PV") systems in Vietnam. The parties entered into binding Heads of Terms to jointly develop VPE's existing 150 MW portfolio of commercial and industrial rooftop solar PV installations. Upon completion Coro will own 85% of the new venture in exchange for providing up to $4.0m of funding for the first 5MW pilot project. The deal represents a low- cost entry for Coro into the fast-growing Vietnamese energy sector. Both parties are working toward signature of binding, definitive agreements in the coming weeks and we expect to reach financial close on the 5 MW pilot project by the end of the year.

These transactions represent Coro's strategy at work: identifying opportunities for low-cost entry into countries with fast growing economies and forecasted strong energy demand growth. In this geography, value accretion occurs during the early planning and permitting stages of projects and by providing the early-stage capital for these projects, we will create opportunities to deliver outsized returns relative to initial development risk. Risk can be mitigated through adopting a portfolio approach with disciplined allocation of capital and strong local knowledge.

Alongside the GEPL acquisition, the Company successfully raised net proceeds of $5.5m through a placing and open offer with new and existing investors. These funds will be utilised for investment in the Philippines and Vietnam clean energy portfolios, as well as to fund the Group's share of expenditures from its high value gas asset, the Mako gas field.

The Mako gas field, contained within the Duyung PSC area (operated by Conrad Petroleum Ltd), remains a high value asset in our portfolio, with focus during the period on the strategic commercial workstreams. This included preparation by the operator of an updated Plan of Development for submission to the Indonesian authorities and gas sales agreement negotiations with various counterparties. Achievement of these commercial milestones will be key to upgrading contingent resources at Duyung to reserves, and ultimately to enabling the partners to take a Final Investment Decision ("FID").

02	Coro Energy PLC

www.coroenergyplc.com

Finally, we were pleased to execute a binding, conditional agreement with Dubai Energy Partners, Inc ("DEPI") during the period to dispose of the Company's non-core Italian gas portfolio in exchange for cash consideration of €300k (c.$350k). Completion of the disposal of the Italian gas portfolio is conditional on, inter

alia, approval by the Italian Ministry of Economic Development. Both parties are working toward securing this approval in Q4 2021. In the meantime, DEPI is responsible for funding any operational costs relating to the Italian portfolio until completion.

Outlook

Having secured an exciting portfolio of clean energy projects across the South East Asian region, the Company is well placed to continue this momentum through the remainder of 2021 and into next year. Planning and permitting activities will continue for our priority projects in the Philippines, with the first major milestone being awarded by the Department of Energy.

We also look forward to completing our transaction with VPE in Vietnam in the coming weeks and focusing on our 5 MW pilot project, with the intention of reaching financial close by the end of 2021.

Positive progress is also expected on key commercial milestones for Mako, along with completion of our disposal of the Italian portfolio, which will ensure our footprint and focus are solely on the South East Asian market.

Interim Report 2021

Our Eurobond obligations remain at the forefront of our mind and we intend to seek a restructuring of those obligations to enable the Company to continue

to pursue its clean energy growth led strategy.

We thank our shareholders for their support and look forward to updating them on our progress in the coming months.

JAMES PARSONS MARK HOOD

Chairman

Chief Executive Officer

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