Reach Energy Berhad : Report on Unaudited Quarterly Financial Results for the Period 1 April 2021 to 30 June 2021

REACH ENERGY

BERHAD

Company no: 201301004557 (1034400-D)

(Incorporated in Malaysia)

Report

on

Unaudited

Quarterly Financial Results

for the Period

1 April 2021

to

30 June 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	Unaudited for	Unaudited for	Unaudited
		the quarter	the quarter	the year	for the year
		ended	ended	ended	ended
		30 Jun 21	30 Jun 20	30 Jun 21	30 Jun 20
	Note	RM'000	RM'000	RM'000	RM'000
Revenue		31,101	16,982	54,159	39,663
Operating expenses
Taxes other than income taxes		(11,370)	(2,928)	(17,432)	(12,136)
Purchase, services and other direct
costs		(6,164)	(7,591)	(10,434)	(16,897)
Depreciation, depletion and
amortisation		(15,251)	(13,410)	(25,092)	(30,595)
Impairment of non-financial asset		-	(59,524)	-	(66,153)
Distribution expenses		(3,073)	(3,357)	(5,361)	(7,037)
Employee compensation costs		(2,554)	(3,500)	(4,823)	(7,349)
General and administration
expenses		(1,128)	(749)	(2,334)	(3,087)
Other operating income/(expenses)
- net		1,220	(856)	(219)	3,968
Total operating expenses		(38,320)	(91,915)	(65,695)	(139,286)
Loss from operations		(7,219)	(74,933)	(11,536)	(99,623)
Finance income		777	195	15,747	19,107
Finance cost		(12,320)	(18,355)	(24,896)	(29,194)
Finance cost - net		(11,543)	(18,160)	(9,149)	(10,087)
Loss before taxation	B13	(18,762)	(93,093)	(20,685)	(109,710)
Income tax benefit	B14	1,614	39,157	6,588	48,470
Loss for the financial period		(17,148)	(53,936)	(14,097)	(61,240)
(Loss)/profit attributable to:
Owners of the Company		(9,058)	(32,407)	11,187	(27,803)
Non-controlling interests		(8,090)	(21,529)	(25,284)	(33,437)
Loss for the financial period		(17,148)	(53,936)	(14,097)	(61,240)
(Loss)/earnings per share
attributable to owners of the	B12
Company
Basic (loss)/earnings per ordinary
share (RM):		(0.008)	(0.03)	0.01	(0.03)
Diluted (loss)/earnings per ordinary
share (RM):		(0.008)	(0.03)	0.01	(0.03)
Loss for the financial period		(17,148)	(53,936)	(14,097)	(61,240)
Other comprehensive
(expense)/income, net of tax
Items that will be reclassified
subsequently to profit or loss:
- Foreign currency translation
differences		564	6,993	(2,172)	5,994
Total comprehensive expense for
the financial period		(16,584)	(46,943)	(16,269)	(55,246)

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	Unaudited for	Unaudited for	Unaudited for
	the quarter	the quarter	the year	the year
	ended	ended	ended	ended
	30 Jun 21	30 Jun 20	30 Jun 21	30 Jun 20
Note	RM'000	RM'000	RM'000	RM'000
Total comprehensive
(expense)/income for the period
attributable to:
Owners of the Company	(8,721)	(28,212)	9,884	(24,207)
Non-controlling interests	(7,863)	(18,731)	(26,153)	(31,039)
Total comprehensive expense
for the financial period	(16,584)	(46,943)	(16,269)	(55,246)

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 30 Jun 21	As at 31 Dec 20
	Note	RM'000	RM'000
Assets
Non-current assets
Property, plant and equipment		1,273,880	1,257,149
Intangible assets		1,413	1,490
Right use of assets		2,356	2,420
Prepayment and other receivables		3,443	3,274
Restricted cash		5,186	6,953
Total non-current assets		1,286,278	1,271,286
Current assets
Inventories		2,304	1,835
Trade receivables		2,016	5,664
Prepayment and other receivables		11,688	10,559
Amount due from corporate shareholder in a subsidiary		4,007	4,007
Deposits, cash and bank balances		11,593	10,163
Total current assets		31,608	32,228
Total assets		1,317,886	1,303,514
Liabilities
Current liabilities
Trade payables		41,757	55,824
Accruals and other payables		11,108	19,668
Lease liabilities		482	352
Amounts due to corporate shareholder in a subsidiary	A7	352,001	331,340
Current tax liabilities		2,962	2,886
Provision		11,600	11,205
Total current liabilities		419,910	421,275
Net current liabilities		(388,302)	(389,047)
Total assets less current liabilities		897,976	882,239
Non-current liabilities
Deferred tax liabilities		55,199	60,758
Amounts due to corporate shareholder in a subsidiary	A7	344,418	317,278
Trade payables		20,224	8,771
Accruals and other payables		299	334
Lease liabilities		1,878	2,079
Provisions		4,714	5,506
		426,732	394,726
Net assets		471,244	487,513
Equity
Capital		488,975	488,975
Other reserves		180,539	181,842
Accumulated losses		(301,609)	(312,796)
Equity attributable to owners of the Company		367,905	358,021
Non-controlling interest		103,339	129,492
Total Equity		471,244	487,513
Net assets per share (RM)		0.43	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
Profit/(loss) for the financial year
	-	-	-	-	11,187	11,187	(25,284)	(14,097)
Other comprehensive expense, net of tax
- Foreign currency translation	-	-	-	(1,303)	-	(1,303)	(869)	(2,172)
Total comprehensive (expense)/income for the financial
year	-	-	-	(1,303)	11,187	9,884	(26,153)	(16,269)
As at 30 June 2021	488,975	198,914	821	(19,196)	(301,609)	367,905	103,339	471,244

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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