RAMCO ENERGY: Company Profile
-----------------------------
NAME: RAMCO ENERGY PLC
62 Queen's Road
Aberdeen
AB15 4YE
United Kingdom
RAMCO OIL SERVICES LIMITED
Badentoy Road, Badentoy Park
Portlethen, Aberdeen
AB12 4YA
United Kingdom
Phone: +44 (0)1224 782 278
Fax: +44 (0)1224 783 001
PHONE: +44 (0)1224 352 200
FAX: +44 (0)1224 352 211
EMAIL: General Enquiries
jacqueline.christie@ramco-plc.com
WEBSITE: http://www.ramco-plc.com/
TYPE OF BUSINESS: Ramco Energy and its subsidiaries operate in two divisions: Oil Field Services and Oil and Gas Exploration and Production. Its oil services division specializes in down-hole tubular maintenance and pipeline coatings. It operates primarily in Japan, Norway, and the U.K. Its oil and gas exploration and production division operates in the Caspian Sea region, Central and Eastern Europe, and the Irish Sea. It also holds a 50% stake in British Steel Ramco Pipeline Services, a joint venture with British Steel, to provide pipeline-coating services.
SIC: Natural Gas; Oil Equipment & Services; Oil
BOARD AND MANAGEMENT TEAM:
(a) Stephen Remp, Executive Chairman,
(b) N Stewart Cumming, Managing Director of Ramco Oil Services,
(c) Steven Bertram, Group Financial Director
Investor Relations:
College Hill Associates Limited
78 Cannon Street,
London EC4N 6HH
Leishman-Hillard Saunders 15 Fitzwilliam
Quay, Dublin 4, Ireland
NUMBER OF EMPLOYEES: 118 (as at 2003)
NET INCOME: GBP76.7 million (2003)
CURRENT ASSETS: GBP14.035 million (Interim results for the six
months ended 30 June 2004)
CURRENT LIABILITIES: GBP25.764 million (Interim results for the
six months ended 30 June
2004)
LONG-TERM LIABILITIES: GBP40.710 million (Interim results for
the six months ended
30 June 2004)
INTERESTS:
Country Licence Effective interest (%) Operator
Ireland Seven Heads Gas
Petroleum Lease 86.5 Ramco
Ireland Seven Heads Oil
Licensing Option 74 Ramco
Ireland Midleton Licensing
Option 100 Ramco
Ireland Rosscarbery Licensing
Option 77 Ramco
Ireland East Kinsale Licensing
Option 100 Ramco
Poland Carpathian Licences
(onshore) 41.5 RWE
Dea AG
SEVEN HEADS PARTNERS:
Ramco Seven Heads Limited (RSHL)
(wholly owned subsidiary of Ramco) 82.5%
Northern Exploration Limited
(wholly owned subsidiary of Ramco) 4%
Lundin Ireland Limited 12.5%
Sunningdale Oils (Ireland) Limited 1.0%
CAPITAL STRUCTURE:
Bank debt: GBP40.710 million
OTHER DEBT:
Type of Loan Creditor Amount
------------ -------- ------
Project loan Bank of Scotland GBP68.6 million*
New Uberior House
11 Earl Grey Street
Edinburgh EH3 9BN
Payment for services Schlumberger Offshore GBP1.550 million
(owed by subsidiary) Services Limited
----------
To be repaid in six monthly installments. GBP56.6 million is non-recourse, secured only against the Group’s interest in the Seven Heads gas field. The balance of GBP12 million is also secured against the Oil Services business. Full repayment of the GBP68.6 million is due by 30 June 2009. The first installment of GBP5.0 million fell due on 30 June 2004.
THE TROUBLE:
Business and Financial Problem:
Ramco negotiated the rescheduling of its debts with lenders after encountering problems with its Seven Heads' operations. Troubles at the field resulted to a GBP93 million charge at its accounts last year. The resulting pre-tax loss for 2003 amounted to GBP104.1 million.
Its bankers and a major creditor recently agreed to extend waiver agreements for GBP12.0 million and GBP1.55 million in debts until it sells the 86.5% interest it holds in the troublesome operation.
Legal Problem:
In April 2004, A Texas Court issued a final judgment against Ramco Energy plc, Ramco Oil Limited and certain other defendants in a case alleging breach of contract arising from confidentiality and non-circumvention obligations in relation to investments in an oilfield development project in Kazakhstan, which Ramco subsequently decided not to pursue.
The ruling was an award against Ramco for past and future damages of US$6.4 million plus interest and legal fees of US$9.8 million. The award of legal fees was made jointly and severally against Ramco and its co-defendant Halliburton. The plaintiff subsequently agreed settlement terms with Halliburton which has been dismissed from the case.
Ramco has filed motions to appeal. It said that the appeal to the Texas Appellant Court, which may be followed by a further appeal to the Texas Supreme Court, is expected to take several years to complete.
MAJOR SHAREHOLDERS:
Artemis Smaller Companies - 5.17%
Hansa Trust PLC - 3.75%
Finsbury Trust - 3.53%
S E Remp - 11.07%
N S Cumming - 1.08%
Other Dirs - 0.47%
NOMINATED ADVISER: CANACCORD CAPITAL (EUROPE) LIMITED
Brook House, 27 Upper Brook Street
London W1K 7QF
AUDITOR: PRICEWATERHOUSECOOPERS LLP
32 Albyn Place, Aberdeen AB10 1YL
Web site: http://www.pwcglobal.com/uk
ASSET SALE MANAGER: ERNST & YOUNG
5 Times Sq., 14th Fl.
New York, NY 10036-6530
Phone: 212-773-3000
Fax: 212-773-6350
Web site: http://www.ey.com/