Third Energy records loss of £3.8m in 2015

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Third Energy UK Gas Limited – the company behind fracking plans at Kirby Misperton in North Yorkshire – made a loss of £3.854m in 2015.

It owed more than £50m to parent and sister companies and turnover was less than half that of the previous year.

The figures, released yesterday by Companies House, cover the 12 months to December 2015. They were filed on 13 February 2017, more than four months after the due date. In December 2016, Third Energy was warned it risked being struck off the companies’ register if it did not file its accounts by 6 February 2017.

Details
According to the accounts, Third Energy’s loss in 2015 was smaller than in 2014, when the company lost £4.416m.

But turnover in 2015, at £428,000, was less than half that of £2014 (£897,000). From the accounts, this appears to be because of lower sales of gas to a sister company and a fall in recharges to development partners.

Net current liabilities for 2015, totalling £50.019m, were up from £44.2m in 2014. This included payments to parent and sister companies. The directors of these companies confirmed they did not intend to seek repayment within 12 months.

The accounts said:

“The directors have placed their usual reliance on the confirmation of the holding company and fellow subsidiary companies that they will not seek repayment of these amounts totalling £50,871,000 in reaching their opinion that the company can continue as a going concern.

“As with any company placing reliance on another group company for financial support, the directors acknowledge that there can be no certainty that this support will continue although at the date of approval of these financial statements they have no reason to believe that it will not do so.”

Halliburton contract
The accounts confirmed that Third Energy had a contract with the leading US company, Halliburton Manufacturing and Services Ltd. This is described as “for the provision of services to support its onshore development activities”.

The accounts said: “As a result of this agreement, Halliburton may receive additional payments at a future date if these activities are successful.”

Tax asset
The accounts said Third Energy UK Gas Limited had a potential deferred tax asset of £39.5m at 31 December 2015. But they added: “It is not certain the company will have sufficient taxable profits for the losses to be utilised in the foreseeable future”.

Key figures
Loss: £3,854,000 (2014: £4,416,000)

Turnover: £428,000 (2014: £897,000)

Net current liabilities: £50.019m (2014: £44.270m)

Amount owed to Third Energy Holdings Limited: £44.475m (2014: £40.667m)

Amount owed to fellow subsidiary companies: £6.396m (2014: 5.147m)

Sales of gas to fellow subsidiary: £399,000 (2014: £667,000)

Recharges to development partners: £29,000 (2014: £230,000)

Staff costs: £624,000 (2014: £593,000)

Staff numbers: Constant at 18 (4 management/administration and 14 technical/operational)

Current assets: £1.735m (2014: £1.784m)

Operating lease commitments on land and buildings: £330,000 (2014: £368,000)

Company structure
Third Energy UK Gas Ltd is one of five companies in the Third Energy Group.

The immediate parent company is Third Energy Onshore Limited. This company, who’s accounts were also released yesterday, has net current assets of £262,000 in 2015.

The ultimate parent company is Third Energy Holdings Ltd, based in the Cayman Islands.

The accounts stated: “In the opinion of the Directors, the ultimate parent company of Third Energy Holdings Limited is Barclays PLC.”

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