Ann: Preliminary Final Report, page-2

IMHO, the salient features of EWC's 2017 Preliminary Final Report relate to a solid financial performance (profits and income up) as well as the conversion of the Slipfom US$432million account payable into a seven (7) year loan, due 30 June 2024). The following is a brief summary of the most important points::
Revenue down 5.2%   US$ 177.8million vs US$187.4million
Profit after tax up 6.3%    US$30.5million vs. US$28.7million
Net Profit   up 5.7%    US$29.2million vs US$27.6million
Comprehensive Income up 34.1% US$34.7million vs. US$25.9million
NTA US$0.39 vs. US$ 0.37
EPS (Basic)   up 5.6%   US1.68cents vs US1.59cents
(Diluted) up 5.5%    US1.54cents vs US1.46cents

Slipform US$432million Term Loan:
On 30 June 2017, a supplier credit agreement was entered into between Slipform Engineering International (HK) Limited (SEIL), PT Slipform Indonesia (PTSI) and Energy World Corporation Limited (EWC) to convert the accounts payable of $432,753,688 related to projects under construction and accrued interest and fees into a seven year term. The maturity due date is 30 June 2024. The credit has a fixed interest rate of 8.00% per annum.

Indonesia:
Kamoung Baru wells:
In Indonesia, the revenue from oil and gas has decreased $2.7 million due to lower volumes delivered. Decreased volumes were a result of decreased flow rates at the Kampung Baru wells. While this has not had a significant impact on operations, a new compressor is expected to be purchased to increase gas pressure going forward. Management also plans to drill new wells within the next 12-18 months.

Sengkang LNG:
With regard to the Sengkang LNG Facility, EWC has held extensive discussion with DGMigas/SKKMigas and PLN and have identified a commercial solution potentially acceptable to all parties on the price of the feedstock gas and the FOB price of the LNG. This data is now being processed for approval through the appropriate channels in Indonesia. Once approved it will enable PT SSLNG to finalise matters with the Indonesian Banks for funding to bring the first phase of the project into commercial operation.


Philippines
On 26 July 2017, the Department of Energy (DOE) Secretary, Mr. Alfonso G. Cusi, visited our Philippines sites and discussed the delivery of the electricity services from the power plant to the Luzon grid. EWC proposed 4 options available for the export of power:
ï‚· Option 1: EWC secure a 12km right of way and construct a new 230kV transmission line.
ï‚· Option 2: The spare capacity on the existing 230kV Pagbilao-Tayabas line is utilized for the export of power.
ï‚· Option 3: To mitigate the risk linked to the purchase of land, EWC develop a subsea cable option which involves acquiring a shorter right of way on land (2km) thus avoiding substantial land acquisition and delays.
ï‚· Option 4: EWC utilize the existing 69kV line to import commissioning power with the possibility to also export power up to 350MW.

Since the visit, DOE has been working with EWC to achieve the power connection to the grid and have encouraged and instructed all relevant government departments to provide their full assistance to this process.
Because of the delay in securing this grid connection, we have also subsequently applied to the Department of Energy (DOE) for an extension of the existing development and operation permit for the LNG Hub Terminal since the power plant will be the initial customer for the LNG Hub terminal. Energy World Corporation Ltd Page 7

The Pagbilao Hub Terminal could also act as an alternative gas supplier for the Malampaya plant after its depletion by 2022/2024. This could provide a customer base for the Hub of an additional 3,200 MW of power.