Business
Proger Update
Proger Update.
About this update from Cadogan Energy Solutions Plc
[{"type":"text","content":"\n \nPress Release \n\n29 July 2019\n\nThis announcement is deemed to contain Inside Information as defined under the Market Abuse Regulations n. 596/2014\n\nCadogan Petroleum Plc\n\n(“Cadogan†or the “Companyâ€)\n\nProger’s financial results for 2018\n\nCadogan Petroleum plc (“Cadoganâ€), an independent, diversified oil & gas company listed on the main market of the London Stock Exchange is pleased to report that Proger’s 2018 full year financial results confirm strong growth. EBITDA saw a 24% year-on-year increase, to €11.3 million and pre-tax profit increased to €6.1 million, a nearly 4% year-on-year increase, notwithstanding a €1.5 million of contributions to reserves.\n\nCadogan provided Proger’s parent company with a €13.4m loan in February 2019 to subscribe a capital increase in Proger. Proger is an international, Rome based, engineering company which offers services in a range of fields, including oil & gas. The agreement also provided an option to convert the loan into an anticipated indirect 22% equity interest in Proger, via a capital increase. The option offers Cadogan’s shareholders exposure to Proger’s growth, in addition to income, synergies and diversification, in-line with Cadogan’s strategy.\n\nFollowing the capital increase taking place, Cadogan’s indirect interest in Proger is now anticipated to increase to ca. 25% and the 2018 financial results would increase the value of Cadogan’s indirect participating interest, should the Company’s shareholders approve the exercise of the conversion option.\n\nThe loan, which was executed in February 2019, carries an interest of 5.5% per year. The funds from the loan are being used by Proger to finance their business plan, which is targeting a material increase in EBITDA over the next 5 years.\n\nProger’s financial results for 2018 were approved by its shareholders on July 26, having first been audited by Ernst & Young. The results will now be filed at the Italian Chamber of Commerce and Industry, from where they can be downloaded.\n\nGuido Michelotti, Cadogan Petroleum CEO, commented:\n\n“Proger’s 2018 results confirm that the convertible loan agreement offers exposure to realizable growth at a...