Oracle Power : Financial Report for the year ended 31 December 2022

Registered number: 05867160

ORACLE POWER PLC

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

ORACLE POWER PLC

COMPANY INFORMATION

FOR THE YEAR ENDED 31 DECEMBER 2022

Oracle Power PLC is registered as a public company under English Law. Its shares are quoted on the AIM market of the London Stock Exchange. Oracle Power PLC is incorporated and domiciled in England and Wales and its registered number is 05867160.

DIRECTORS	Mr M W Steed - Chairman
	Ms N Memon - CEO
	Mr D Hutchins
SECRETARY	Mr N Lee
REGISTERED OFFICE	Tennyson House
	Cambridge Business Park
	Cambridge CB4 0WZ
REGISTERED NUMBER	05876160 (England and Wales)
AUDITORS	Price Bailey LLP	A. F. Ferguson & Co
	Tennyson House	Chartered Accountants
	Cambridge Business Park	State Life Building 1-C
	Cambridge CB4 0WZ	I. I. Chundrigar Road
		Karachi Pakistan
	Pitcher Partners
	Level 11/12-14 The Esplanade
	Perth WA 6000, Australia
NOMINATED ADVISOR AND BROKER	Strand Hanson Limited
	26 Mount Row
	London W1K 3SQ
REGISTRAR	Neville Registrars Limited
	18 Laurel Lane, Halesowen
	West Midlands B63 3DA
SOLICITORS	Charles Russell Speechlys LLP	Makhdoom & Co
	5 Fleet Street	2nd Floor Imperial Building
	London EC4M 7RD	Mt Khan Road, Karachi, Pakistan
BANKERS	Royal Bank of Scotland plc	Habib Bank AG Zurich
	1st Floor, Conqueror House	Moorgate Branch,
	Vision Park, Histon	Habib House,
	Cambridge CB24 9NL	42 Moorgate,
		London EC2R 6JJ
	Habib Metropolitan Bank
	Habib Bank Plaza,
	I.I.Chundrigar Road,
	Karachi-75650, Pakistan
PUBLIC RELATIONS	Buchanan
	107 Cheapside
	London EC2V 6DN

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ORACLE POWER PLC

CONTENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

	Page
Chairman's Report	3	- 4
Chief Executive's Report	5	- 6
Group Strategic Report	7 - 16
Directors' Report	17	- 20
Remuneration Report	21	- 22
Governance Report	23	- 26
Directors' Responsibilities Statement	27
Independent Auditors' Report	28	- 33
Consolidated Statement of Profit or Loss	34
Consolidated Statement of Other Comprehensive Income	35
Consolidated Statement of Financial Position	36
Company Statement of Financial Position	37
Consolidated Statement of Changes in Equity	38	- 39
Company Statement of Changes in Equity	40	- 41
Consolidated Statement of Cash Flows	42
Company Statement of Cash Flows	43
Notes to the Consolidated Financial Statements	44	- 81

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ORACLE POWER PLC

CHAIRMAN'S REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

I am pleased to present the financial statements for Oracle Power PLC ("Oracle" or the "Company") for the year ended 31 December 2022.

In December 2022, Andreas Migge, one of our non-executive directors left the Company. It was then with sadness that we learnt that he had died in February 2023. We would like to offer our condolences to his friends and family.

The political tensions between the United States and China slowed down some progress in the development of the mine and power project at Block VI in the Thar desert. However, during the course of the year the Company continued to advance its initiatives for the development of Block VI. The Government of Pakistan established demand for 1,320 MW of Thar coal-based power in 2027, allowing for potential development of the project. Subsequently, post period we signed an agreement for potential offtake for 1,320 MW of coal generated power as well as another agreement with PowerChina to develop, in parallel, a 1 GW solar farm at Thar.

During the year, we focused most of our attention on our Green Hydrogen project, which comprises the planned construction of a 400MW plant producing 55,000 tonnes of green hydrogen per annum backed by 1,200MW of hybrid solar/wind, green hydrogen/power plants.

This project is being developed through Oracle Energy Limited. This company is owned 70% by His Highness Sheikh Ahmed Dalmook Al Maktoum through his wholly owned company Kaheel Energy FZE, and 30% by Oracle Power Plc. Oracle will be primarily responsible for putting the project together and Kaheel Energy will use its position and influence to facilitate market access and financing.

To that end, we have acquired a 7,000 acres site in the Thatta district in Southeast Pakistan. This lease for this land has been granted to us by the Government of Sindh and is for an initial period of 30 years. This lease is now fully paid for and registered to Oracle Energy Limited.

We have been issued with a Letter of Intent ("LOI") from the Directorate of Alternative Energy of the Government of Sindh (the "Directorate of Alternative Energy"), relating to the establishment of a 1,200MW hybrid solar/wind, green hydrogen/power project. In order to obtain formal approval of the LOI, we needed to provide a $600,000 performance guarantee bond which has now been put in place.

In addition to the above, we have an LOI from TUV SUD for the certification of the hydrogen output. Thyssenkrupp Uhde is undertaking the various feasibility studies, and post period land and renewable power studies have also been commenced.

In terms of our funding position, we raised £1,200,000 before expenses through two equity placings to finance the development of the green hydrogen project.

The development of the green hydrogen project has advanced rapidly and it should not be long before the project acheives bankability and Oracle can benefit from potential transactions with one or more energy or fuel companies.

With regard to Western Australia, we decided not to carry out any more work on the Jundee East project as we did not manage to find viable gold deposits. Post year end, we signed a "farm-in" agreement for the Northern Zone with Riversgold Ltd, the details of which can be found in our RNS dated 9 May 2023. We will retain a minority interest and be carried for the next phase of its development.

Operational highlights of 2022 are described in the Chief Executive's Report.

The Pakistan Government remains supportive of both the development of the Thar coal project and the Green Hydrogen project in Thatta. The broad parameters of security remain as last year: there have been no major incidents and, overall, order has been maintained.

We are most grateful to the Pakistani Authorities, to the Chinese Authorities and the Joint Cooperation Committee (JCC) of CPEC for their support.

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ORACLE POWER PLC

CHAIRMAN'S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

Above all, I wish to thank our shareholders for their continued confidence, patience and support, enabling us to make progress on our projects.

Name Mark Steed

Chairman

28 June 2023

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