Tinker Lane, north Nottinghamshire, in which Ineos as a 45% interest, 12 May 2018. Photo: Eric Walton
The UK’s biggest shale gas licence-holder declared a loss of more than £10m for 2017.
Annual accounts of Ineos Upstream, published online yesterday, also reported the company owed more than £125m to other companies in the Ineos group.
The accounts recorded that the company, also known as Ineos Shale, was funded internally by the Ineos group and had “no other comprehensive income”. Ineos Upstream met day-to-day working capital requirements through its intercompany loan. It had no contracted employees, paid no directors’ fees and paid no tax.
The company was regarded as a going concern because Ineos Industries Ltd had confirmed it intended to provide financial support for at least another year.
The accounts said the immediate parent company was Ineos Industries Holdings Ltd and the ultimate parent company was Ineos Ltd, a company incorporated in the Isle of Man. The directors regarded Jim Ratcliffe to be the ultimate controlling party, the accounts said, because he had a controlling interest in Ineos Ltd.
The lneos Upstream loss for the year was down on the £12.155m loss in 2016. The amount owed to group undertakings was lower than the figure of £525m+ reported for the year before.
Operations
A strategic report included in the accounts for the year to December 2017 said Ineos Upstream was focused on two sites operated by its joint venture partner, IGas.
Springs Road, Misson, 13 May 2018. Photo: Eric Walton
One was the Springs Road site at Misson, described in the report as North Northamptonshire but actually north Nottinghamshire. The other was also in Nottinghamshire at Tinker Lane.
The report also said three Ineos Upstream planning applications for shale gas exploration had been rejected by local council planning committees.
Only one, at Woodsetts in south Yorkshire, was formerly determined. On the other two, at Harthill and Marsh Lane, Ineos appealed to the Planning Inspectorate against non-determination before formal decisions were taken. Councillors voted to oppose the applications at the subsequent public inquiries.
Ineos Upstream won its appeal on the site at Harthill earlier this month (details) and is currently seeking planning permission at a public inquiry on Marsh Lane.
A 3D seismic survey, carried out by Ineos across 250km2 in the East Midlands in 2017, was 93% complete, the report added. Ineos Upstream is currently bringing a legal challenge against the National Trust to force access for seismic testing at Clumber Park in Nottinghamshire. The next hearing in this case is expected in July (details).
On future operations, the report said:
“The company aspires to quickly but deliberately explore onshore opportunities in the UK and rapidly develop producing assets where that exploration is successful.
“The company also continues to look for opportunities for acquisition of further licences in the UK, using experienced resources to evaluate the areas which show greatest potential for the extraction of hydrocarbons.”
The report confirmed that there were suspended or shut-in wells in licence areas in which Ineos had an interest. It said:
“At this stage no decision has been made to plug and abandon these wells and such a decision is not likely to be made in the short term.”
The report added:
“The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company where appropriate.”
Key figures
Operating loss: £6.257m (2016: £8.804m)
Loss for the financial year: £10.659m (2016: 12.155m)
Fixed assets: £84.804m (2016: £48.658m)
Net liabilities: £38.362m (2016: £27.703m)
Owed to group undertakings: £125.569m (2016: £525.562m)
Joint operating arrangements in 24 licence areas
Categories: Industry
Not much to brag about , just another tax avoiding greedy company that wants to destroy the country .
Interesting that the balance sheet shows that intangible assets [do not physically exist] have almost doubled? humm
It get’s better; you too can create money out of thin [polluted ] air –
With the help of the Intangible assets network ;
https://www.gov.uk/government/news/intangible-assets-network
and the 2014 archived website, you can be that millionaire Rodney!
http://webarchive.nationalarchives.gov.uk/20140603093720/http://www.ipo.gov.uk/ian.htm
Another one in the £10 mil red club; GO who’s father in law has a finger in the shale gas pie, who encouraged the Cons to back fracking, invests on behalf of his Russian oligarch bosses [but could not invest in the people of the UK?].
https://www.theguardian.com/media/2018/jun/29/in-the-red-again-george-osborne-leads-evening-standard-to-10m-loss
Standard zombie company practice, offshore tax haven parent companies are excluded from public and inland revenue scrutiny.
The operating company runs at a permanent loss, no tax paid, no responsibility, no commitments, nothing but pseudo farcical financial game play, nothing to see here, move along please or we will arrest you and steal your assets for daring to question anything?
What is interesting is that the injunctions are based upon not damaging a companies ability to make a profit, but this proves that they will never make a profit, they are deliberately designed to run at a permanent loss, that is not a legal business and is nothing more than a scam.
No legitimacy.
No profit.
No responsibility to investors.
No legal basis of business operation.
No legally enforceable injunction against “persons unknown”.
This proves that they fail all the tests of a legitimate business operation, and that means they are just fat cat Ponzi scheme scary clown masks making smoke and noise, signifying nothing.
It’s all nothing more than a smoke and mirrors illusory “fantasy” isn’t it?
Can’t hear any bragging, Jono.
If you find it so difficult to understand the structure of INEOS, you are not alone! Jim is so worried about your concern he has written a book explaining some of it for you.
Enjoy.
Ahh the alchemical ghost writer raises “it’s” fictional transposed scary clown face head once more.
Is that a red balloon hanging there in the dark corner?
Pop!
It’s called investment, dumbos.
It’s what happens when principled folk give before they take.
Folk who do not think themselves entitled to everything and responsible for nothing!
#cultureshock
Investment Dumbos? Couldnt have put it better myself?
I saw a protest camp, heard a rubber stamp,
An’ i seen a pyramid wink its eye
But i done seen ’bout everythin’
When I see’d a frackin’ white elephant fly
When I see’d a frackin’ white elephant fly
I’ve seen a planner swing, heard a lawyer sing
I’ve seen a Dumbo investment lie
But I done seen ’bout everything
When I see’d a frackin’ white elephant fly
I saw a gold bull rear up for a buck
And they tell me that a man made a solar truck
I didn’t see that, I only heard
Just to be sociable, well, I’ll take your word
I heard a campfire chat, I saw a flying bat
And I just laughed till I thought I’d die
But I done seen ’bout everything
When I see’d a frackin’ white elephant fly
But I done seen ’bout everything
When I see’d a frackin white elephant fly
When I see’d a frackin white elephant fly
By definition mineral exploration, whether for metals or oil/gas, is costly and sees no returns/profits until profitable production begins. It has long been the case for all exploration
[Edited by moderator] What many normal people have a problem with is how these organisations are set up so they will barely return a profit, operate on debt to avoid UK tax all the while their offshore set ups rake it in.
When our NHS is on it’s knees this country can do without such corporate fat cat greed from supposedly one of it’s own. [Edited by moderator]
Peanuts.
Oh dear AD!
Try just a little research and you will find a few facts. Otherwise you talk nonsense.
Giggle Grangemouth if you don’t wish to make more effort. Or, you could take a look at the charitable projects INEOS support financially to reduce load upon the NHS.
Otherwise you can always stick with the anti-truth.
Fracking seems to be taking a very long time to make a profit for investors or is the US, 10 years or more down the line, still at the exploratory stage?
https://www.google.co.uk/amp/s/www.wsj.com/amp/articles/wall-streets-fracking-frenzy-runs-dry-as-profits-fail-to-materialize-1512577420
Making good profits for INEOS, KatT.
“Perhaps” they are forcing the producers to sell at a loss? Doesn’t really test the common sense test, does it?
Brilliant story – company isn’t making profit before it produces gas