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

REACH ENERGY

BERHAD

Company no: 201301004557 (1034400-D)

(Incorporated in Malaysia)

Report

on

Unaudited

Quarterly Financial Results

for the Period

1 July 2021

to

30 September 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	Unaudited
		the quarter	the quarter	for the period	for the period
		ended	ended	ended	ended
		30 Sep 21	30 Sep 20	30 Sep 21	30 Sep 20
	Note	RM'000	RM'000	RM'000	RM'000
Revenue		41,974	17,439	96,132	57,102
Operating expenses
Taxes other than income taxes		(14,815)	(4,664)	(32,246)	(16,799)
Purchase, services and other direct
costs		(6,388)	(6,784)	(16,822)	(23,681)
Depreciation, depletion and
amortisation		(18,998)	(17,532)	(44,090)	(48,128)
Impairment of non-financial asset		-	-	-	(66,153)
Distribution expenses		(3,925)	(3,113)	(9,286)	(10,150)
Employee compensation costs		(2,397)	(2,941)	(7,220)	(10,290)
General and administration
expenses		4,845	(11,272)	2,511	(14,359)
Other operating income/(expenses)
- net		(166)	(617)	(385)	3,351
Total operating expenses		(41,844)	(46,923)	(107,538)	(186,209)
Profit/(Loss) from operations		130	(29,484)	(11,406)	(129,107)
Finance income		2,584	155	18,331	7,088
Finance cost		(12,954)	(20,993)	(37,850)	(38,013)
Finance cost - net		(10,370)	(20,838)	(19,519)	(30,925)
Loss before taxation	B13	(10,240)	(50,322)	(30,925)	(160,032)
Income tax benefit	B14	4,001	14,153	10,589	62,622
Loss for the financial period		(6,239)	(36,169)	(20,336)	(97,410)
(Loss)/profit attributable to:
Owners of the Company		(916)	(25,436)	10,272	(53,241)
Non-controlling interests		(5,323)	(10,733)	(30,608)	(44,169)
Loss for the financial period		(6,239)	(36,169)	(20,336)	(97,410)
(Loss)/earnings per share
attributable to owners of the	B12
Company
Basic (loss)/earnings per ordinary
share (RM):		(0.001)	(0.02)	0.01	(0.05)
Diluted (loss)/earnings per ordinary
share (RM):		(0.001)	(0.02)	0.01	(0.05)
Loss for the financial period		(6,239)	(36,169)	(20,336)	(97,410)
Other comprehensive
(expense)/income, net of tax
Items that will be reclassified
subsequently to profit or loss:
- Foreign currency translation
differences		1,492	1,385	(680)	7,378
Total comprehensive expense for
the financial period		(4,747)	(34,784)	(21,016)	(90,032)

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	Unaudited
	the quarter	the quarter	for the period	for the period
	ended	ended	ended	ended
	30 Sep 21	30 Sep 20	30 Sep 21	30 Sep 20
Note	RM'000	RM'000	RM'000	RM'000
Total comprehensive
(expense)/income for the period
attributable to:
Owners of the Company	(21)	(24,604)	9,863	(48,814)
Non-controlling interests	(4,726)	(10,180)	(30,879)	(41,218)
Total comprehensive expense
for the financial period	(4,747)	(34,784)	(21,016)	(90,032)

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 Sep 21	As at 31 Dec 20
	Note	RM'000	RM'000
Assets
Non-current assets
Property, plant and equipment		1,278,980	1,257,149
Intangible assets		1,359	1,490
Right use of assets		2,431	2,420
Prepayment and other receivables		3,483	3,274
Restricted cash		8,625	6,953
Total non-current assets		1,294,878	1,271,286
Current assets
Inventories		3,776	1,835
Trade receivables		1,448	5,664
Prepayment and other receivables		11,664	10,559
Amount due from corporate shareholder in a subsidiary		4,064	4,007
Deposits, cash and bank balances		32,990	10,163
Total current assets		53,942	32,228
Total assets		1,348,820	1,303,514
Liabilities
Current liabilities
Trade payables		39,967	55,824
Accruals and other payables		27,179	19,668
Lease liabilities		579	352
Amounts due to corporate shareholder in a subsidiary	A7	357,251	331,340
Current tax liabilities		2,984	2,886
Provision		5,573	11,205
Total current liabilities		433,533	421,275
Net current liabilities		(379,591)	(389,047)
Total assets less current liabilities		915,287	882,239
Non-current liabilities
Deferred tax liabilities		51,277	60,758
Amounts due to corporate shareholder in a subsidiary	A7	355,358	317,278
Trade payables		35,453	8,771
Accruals and other payables		42	334
Lease liabilities		1,829	2,079
Provisions		4,831	5,506
		448,790	394,726
Net assets		466,497	487,513
Equity
Capital		488,975	488,975
Other reserves		181,434	181,842
Accumulated losses		(302,524)	(312,796)
Equity attributable to owners of the Company		367,885	358,021
Non-controlling interest		98,612	129,492
Total Equity		466,497	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
	-	-	-	-	10,272	10,272	(30,608)	(20,336)
Other comprehensive expense, net of tax
- Foreign currency translation	-	-	-	(408)	-	(408)	(272)	(680)
Total comprehensive (expense)/income for the financial
year	-	-	-	(408)	10,272	9,864	(30,880)	(21,016)
As at 30 September 2021	488,975	198,914	821	(18,301)	(302,524)	367,885	98,612	466,497

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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