The gas production company, Third Energy, formerly owned by Barclays, has been released from a loan of more than £80m, according to its accounts.
The onshore part of the business was sold in 2019 to York Energy (UK) Holdings Limited, an associate of the American Alpha Energy.
Third Energy Onshore Limited’s latest figures, for the year to December 2018, pre-date the sale.
But they said that immediately before the transaction was completed, the loan balance had been “forgiven”.
Third Energy Onshore Limited also received £12m to “meet its known liabilities and provide it working capital”.
According to the accounts, the loan was £68,270,000 at 31 December 2018. But by the time of the sale, in July 2019, it had risen to £80,829,000.
Third Energy Onshore Limited owed the money to its parent company, Third Energy Holdings Limited, which is registered in the Cayman Islands.
The holding company had taken out the loan with Northwharf Investments Limited, a subsidiary of Barclays Bank plc.
The accounts, published today, do not say who released Third Energy Onshore from the loan or paid the additional £12m. But the ultimate parent company of Third Energy Holdings Limited is also Barclays plc.
According to the accounts:
“The amounts owed to Third Energy Holdings Limited were formerly released on 9th July 2019 when the Group and Company were sold to York Energy (UK) Holdings Limited.
“As a result of this transaction the Group and Company were released from all obligations as charger and obligor to a loan facility taken out by Third Energy Holdings Limited with Northwharf Investments Limited.”
The accounts said the injection of additional working capital allowed the group to continue operating:
“[It has] the necessary funding available to ensure that it continues to trade on the going concern basis for the foreseeable future.”
The accounts were the first consolidated statements for Third Energy Onshore Limited and its subsidiaries, Third Energy Trading Limited and Third Energy UK Gas Limited.
They reveal a loss for the year of £12.226m, up from £4.389m in 2017. Turnover was up slightly but there was a large increase in administrative expenses. The company used an accounting exception to not include a strategic report.
Turnover (mainly from the sale of electricity): £1,439,000; 2017: £1,016,000
Cost of sales: Loss of £2,627,000; 2017: loss of £2,509,000
Administrative expenses: £10,549,000; 2017: £2,547,000
Loss for the year: £12,226,000; 2017: £4,389,000
Net current liabilities: £68,156,000; 2017: £62,379,000
Staff costs: £938,000; 2017: £762,000
Payments to directors: £424,000; 2017: £222,000