interim report january - march 2019 1....

InterimreportJanuary-March20191.Summary

MISENENERGYAB(publ)Reg.No.556526-3968

ResultsfortheJanuary-March2019(“Q12019”)(withinbracketssameperiod2018)

Consolidatedoperatinggroupresult KSEK-2,981(-9,295)Consolidatedgroupnetturnover KSEK2,895(163)Earningspershare SEK-0.01(-0.06)Parentcompanyoperatingresult KSEK453(-1,212)Parentcompanynetturnover KSEK4,504(1,394)

Groupdefinition

MisenEnergyAB(publ)(“ParentCompany”or“Company”)isaSwedishpubliclimitedliabilitycompanywithitsregisteredofficesinStockholm.TheaddressoftheHeadOfficeisKungsportsavenyen32,41136Gothenburg.TheCompanyislistedatNasdaqFirstNorthStockholm.TheMisenGroup(“MisenGroup”or“Group”)comprisesMisenEnergyAB(publ)andthepartiallyownedsubsidiariesLLCKarpatygaz(Ukraine)andMisenEnterprisesAB(Sweden).InJune2016andinJuly2017,ParentCompanysoldrespectively37.5%and10%ofMisenEnterprisesABsharestotheHongKongbasedcompanyPowerfulUnitedLimited(“PUL”).ThesameownersthatcontroltheshareholderTCTHoldingABalsocontrolPUL.InMarch2018,Companysold2%ofMisenEnterprisesABsharestoMr.KonstantinGuenevski,Bulgariancitizen,whoisaseniortraderofoneoftheworld’sleadingindependentcommoditytradingandlogisticshouses.MisenEnergyAB(publ)remaintheownerof50.5%ofMisenEnterprisesABsharesandmaintainfullcontrolofthecompany.MisenEnterprisesABisconsolidatedintheMisenGroupaccountsandthe49.5%heldbyotherinvestorsareaccountedforasanon-controllinginterestwithinequity.JointActivityandJointActivityAgreement

MisenGrouptogetherwithPULandMr.KonstantinGuenevskihada50.01%participationinterestintheJointActivity(“JA”)dedicatedtothehydrocarbonproductionandsalesbusinessinUkraine.Theremaining49.99%interestinJAwasheldbytheJointStockCompanyUkrgasvydobuvannya(“JSCUkrgasvydobuvannya”or“UGV”)(Ukraine),awhollyownedsubsidiaryoftheNationalJointStockCompanyNaftogazofUkraine(Ukraine).JAwasgovernedbytheJointActivityAgreementNo.3,dated10June2002(“JAA”or“JAANo.3”)(asfurtherrestatedandamended).JAANo.3wasterminatedbythepartialfinalawardrenderedbytheArbitralTribunalinthearbitrationproceedingunderArbitrationRulesoftheArbitrationInstituteoftheStockholmChamberofCommerce.

Misen Energy AB (publ) 1

2.EssentialEventsduringtheQ12019

AccountingtreatmentoftheJointActivity

MisenEnterprisesABandLLCKarpatygazparticipateinanarbitrationproceedingcommencedbyJSCUkrgasvydobuvannyainAugust2016underJAANo.3andvigorouslydefendthelegitimateinterestsoftheirinvestors.

InaccordancetotheproceduraltimetabledeterminedbytheTribunal,thedisputingpartiesexchangedtheirpositions.JSCUkrgazvydobuvannyarequestedinvalidationor,alternatively,terminationofJAANo.3.MisenEnterprisesandLLCKarpatygazagreedwithJSCUkrgazvydobuvannyaonterminationofJAANo.3andrequestedtheArbitralTribunaltoorderJSCUkrgazvydobuvannyatocompensatefortheirshareoftheJointActivity.

On11July2018,theArbitralTribunalrenderedafinalpartialawardinthearbitrationproceedingcommencedunderJAAinaccordancetoArbitrationRulesoftheArbitrationInstituteoftheStockholmChamberofCommerce.Thisawardisafinalawardonthoseissuesthatweredecidedatthisstageoftheproceeding.TheArbitralTribunalfullyrejectedtheJAA’sinvalidityarguments,aswellastheoverwhelmingmajorityofJSCUkrgasvydobuvannya’sargumentsconcerningMisenEnterprisesABandLLCKarpatygazalleged“breaches”.Inspecific,finalpartialawardacknowledgesthefollowing:

1. TheArbitralTribunalhasfully,unanimouslyandunequivocallydismissedalltheclaimssubmittedbyJSCUkrgasvydobuvannyainrelationtoallegedinvalidityoftheJAA.TheArbitralTribunalfoundnocorruptionorcollusioninthenegotiationandapprovaloftheJAA.TheTribunaldidnotestablishanywrongdoingofpresentand/orformershareholders(beneficialowners)ofMisenEnterprisesABandKarpatygazLLC.Also,therewasnowrongdoingofmanagementofMisenEnterprisesABandKarpatygazLLC.TheJAAcompliedwithallrelevantUkrainianlegislation.Specifically,theArbitralTribunalfoundthatthereisnobasistoconcludethattheJAAbreachedArticle7(4)ofthePipelineTransportLaworpublicpolicy.TheArbitralTribunalestablishedthatJSCUkrgasvydobuvannya’swellstock,thatJSCUkrgasvydobuvannyaretainedfullrightstoaccessanduseitswellsandtherewasnomisappropriationofthisofJSCUkrgasvydobuvannya’sproperty.Further,theArbitralTribunalhasrejectedclaimsofJSCUkrgasvydobuvannyathattheJAAbreachedtheprohibitiononthesaleofgasotherthantoPJSCNJSCNaftogazofUkrainepursuanttoArticle10oftheLawontheFunctioningoftheGasMarket.

SummarizingtheArbitralTribunalfindingsontheabovementionedissues,TribunalconfirmedthattheJAAisalegalandfullybindingcontract,whichgaverisetosubstantialbenefitsforJSCUkrgasvydobuvannya(notablytheabilitytocommercialiseitsgasathigher,unregulatedprices,theobligationofMisenEnterprisesABtoensureadditionalfinancingtoimplementtheJointActivityPrograms,andtherevenuesearnedbyprovidingservicestotheJointActivityundertheServicesAgreement).TheJAAwasconcludedintheinterestsofJSCUkrgasvydobuvannya,notcontrarytoitsinterests.

2. Performingtheirrespectivecontractualobligations,MisenEnterprisesABand/or

LLCKarpatygazdidnotmakeanymaterialbreachesoftheJAA,and,therefore,ArbitralTribunalhasfully,unanimouslyandunequivocallydismissedalltheclaimssubmittedbyJSCUkrgasvydobuvannyatoterminatetheJAAonthegroundthatMisenEnterprisesABandLLCKarpatygazallegedlybreachedtheircontractualobligations.Specifically,theArbitralTribunalfoundthatMisenEnterprisesABmadenobreachofitsobligationtoprovideadditionalfinancingtoimplementtheJointActivityPrograms;LLCKarpatygazmadeno


breachesoftheJAAbyenteringintoanyofthesaleofgasagreements;therewasnofailuretocontributeknow-howtotheJointActivity;therewerenounjustified“threats“tostopoperationofcertainboostercompressorstations;LLCKarpatygazhadarighttoenterintosettlementagreementswithrespecttocertaindebtsowedtotheJointActivity;and,finally,theArbitralTribunaldeclaredthatLLCKarpatygazcompliedwithitsobligationsundertheJAAwithrespecttocommissioningtheboostercompressorstations(includingthemajorKhrestyshchenskaBCS)andconductingrepairworksofthewells.

3. TheonlyinstancewheretheArbitralTribunalpartiallyendorsedthepositionof

JSCUkrgasvydobuvannyaistheTribunal’sfindingsthatMisenEnterprisesdidnotmeetitsobligationtomakepartofitscontributionintheamountofapproximatelyMUSD8.5by31December2015andthatKarpatygazwaslateundertheJAAinequippingcertainwellswithmeteringstations.However,theArbitralTribunaldecidedthatthesebreaches,whetherconsideredaloneortogether,cannotbecharacterisedassubstantiallydeprivingJSCUkrgasvydobuvannyaofwhatitexpectedtoreceivewhenmakingtheJAAanddonotgiverightforJSCUkrgasvydobuvannyatoterminatetheJAA.Moreover,whiletheArbitralTribunalindicatedthatafailuretomaketheremainingpartofMisenEnterprisesABcontributionmayleadtomakingappropriateadjustmentstotheJAAparticipant’sshareofthejointpropertyuponterminationoftheJAA,thisdoesnotresultintherescissionoftheparties’originalagreementonthevalueoftheircontributions.Thus,theArbitralTribunalupheldthat,aswascontractuallyagreed,JAAentitledMisenEnterprisesABandLLCKarpatygaztoa50,01%shareinthejointproperty.

4. However,sincethe70%royaltyimposedbytheGovernmentofUkrainebroughtamaterial

changeincircumstancesanditisnolongerpossibletoachievethepurposeoftheJAA,theArbitralTribunalconcludedthattheJAAmustbeterminatedasof11July2018solelyonthesegrounds.Aspreviouslyreported,MisenEnterprisesABandLLCKarpatygazagreedonterminationoftheJAAparticularlyonthesegrounds.Again,theArbitralTribunalhasfullyupheldMisenEnterprisesABandLLCKarpatygazpleadingsinthisrespect.

5. Therefore,theArbitralTribunalobligedMisenEnterprisesAB,LLCKarpatygazand

JSCUkrgasvydobuvannyatotakeallstepsnecessaryandappropriatetogivepracticaleffecttoterminationoftheJAA.Thepartiesagreethat,followingtermination,theJointActivity’sassetsshouldbetransferredtoJSCUkrgasvydobuvannya,withMisenEnterprisesABandLLCKarpatygazreceivingcompensationfortheirinterestsinthoseassets.IfafterthefinalpartialawardthepartieswillnotbeabletoagreeonthevaluationofMisenEnterprisesAB,LLCKarpatygazshare,thisissuewillbedecidedbytheArbitralTribunalinitsfinalaward.

JSCUkrgasvydobuvannya,MisenEnterprisesABandLLCKarpatygazagreethat,followingtermination,theJA’sassetsshouldbetransferredtoJSCUkrgasvydobuvannya,withMisenEnterprisesABandKarpatygazLLCreceivingcompensationfortheirinterestsinthoseassets.ThepartiesassignedLLCKarpatygaz,aformerOperatorundertheJAANo.3(asamendedandrestated),tofacilitatetransferoftheJA‘sassetstoJSCUkrgasvydobuvannya.TheArbitralTribunalshalldecideoncompensationfortheassetsofMisenEnterprisesABandLLCKarpatygazinJointActivity.

MisenEnterprisesAB,LLCKarpatygazandJSCUkrgazvydobuvannyaagreedonascheduleforthesecondphaseoftheongoingarbitrationproceeding.JSCUkrgazvydobuvannyafileditssubmissioninMarch2019.


GiventhattheArbitralTribunalrenderedafinalpartialawardtoterminatetheJAANo.3,theCompanybelievesthatcontroloverthespecificassetsowedbyJAnolongerexistswhenpreparingtheinterimreportfortheQ12019.ControlisrequiredtoconsolidatetheassetsaswellasthefutureresultsoftheJAintheGroupaccounts.

TheclaimsagainstJSCUkrgazvydobuvannyamaynotbeaccountedforasanassetintheGroupfinancialstatementsastheoutcomeofthearbitrationproceedinginrelationtocompensationforMisenEnterprisesABandLLCKarpatygazfortheirshareinJAisstilluncertainatthedateofthisreport.

TheaccountingtreatmentandbookvaluedonotpurporttoreflectthevalueoftheclaimsofMisenEnterprisesABorLLCKarpatygazforcompensationarisingfromtheterminationofJAANo.3.NordoesthisaccountingtreatmentimplyinanyrespectanywaiverofanyclaimsubmittedbyMisenEnterprisesABandLLCKarpatygazinthearbitrationproceedingunderJAANo.3oranyotherrightofMisenGroup.MisenEnterprisesABandLLCKarpatygazcontinuetodefendthelegitimateinterestsoftheirshareholdersandseekcompensationfortheirshareintheJointActivityfromtheterminationofJAANo.3.

UnderJAANo.3MisenGroupoperatedsolelyinUkraine.

Forfurtherinformation,pleasealsorefertochapterEssentialeventsaftertheendoftheQ12019.

FinancingoftheGroup’sSwedishoperations

InNovember2018,MisenEnergyAB(publ)signedtheFinancingAgreementwithPowerfulUnitedLimited(PUL)forthemaximumsumofupto12millionEuros.TheAgreementobligesPULtoprovidefinancingfortheSwedishoperationandanarbitrationproceedingcommentedbyJSCUkrgazvydobuvannyaunderArbitrationRulesoftheArbitrationInstituteofStockholmChamberofCommerceinJuly2016againstMisenEnterprisesABandLLCKarpatygaz.

UndertheFinancingAgreement,PULagreedtoprovidefinancingonanon-recourse,unsecuredandunguaranteedbasis.MisenEnergyAB(publ)agreedtopay20%ofanyfinalsettlementofthearbitrationclaimtoPUL.Suchfeeshallonlybecomepayableuponafinalsettlementofthearbitrationclaim.IfMisenEnergyAB(publ)doesnotachievesuccessinthearbitrationproceeding,PULshallnotbeentitledtoanyfee.

MisenEnergyAB(publ)willcontinuetohaveacompletecontroloverthearbitrationproceedingandhavetherighttosettlewithJSCUkrgazvydobuvannya,discontinueproceeding,pursuetheproceedingtotrialandtakeanyactionMisenEnergyAB(publ)considersappropriatetoenforceafinalaward.

DuringQ1PULhasprovidedadditionalfinancingforthearbitrationproceedingandtheoperationsoftheSwedishcompanies.

Pre-trialInvestigationsinCriminalCases

Thepre-trialinvestigationsincriminalcasescommencedbytheGeneralProsecutorOfficeofUkrainerespectivelyin2014and2017,assupplementedwiththeJSCUkrgasvydobuvannya’scriminalcomplaintdated5September2016andJSCUkrgasvydobuvannya’smotionandnoticeofcommitmentofcriminaloffencedated21and22February2017,wereongoingasofthedateofthisreport.


InSeptember2017,JSCUkrgasvydobuvannyasubmittedanothercriminalcomplainttotheNationalAnticorruptionBureauofUkraine(thereafteras“NABU”).InSeptember2017,NABUfinisheditspre-trialinvestigationandsubmittedaclaimtotheCommercialCourtofKiev.NABUrequestedthecourttoinvalidatetheAmendmentNo.4totheJAANo.3andtheagreementfortheprovisionofservicesonproduction,collection,treatmentandtransportationofnaturalgas,oilandgascondensatethatLLCKarpatygazconcludedwithJSCUkrgasvydobuvannyainApril2011.ThecourtinstitutedalegalproceedinginOctober2017.ThepreparatoryhearingswereheldinMay-August2018.TheCourtdismissedjurisdictionalobjectionsraisedbyMisenEnterprisesABandLLCKarpatygazandmovedthecasetotheconsiderationphaseofthelegalproceeding.

TheconsiderationphaseofthelegalproceedingcommencedbyNABUwascommencedinOctober2018.Thehearingwasheldon22October2018asaresultofwhichKyivEconomicCourtdismissedaclaimwhatregards,amongotherissues,invalidationofJAAinitsentirety.NABUandJSCUkrgasvydobuvannyaappealedagainstthedecision.

LLCKarpatygazandMisenEnterprisesABconsiderthecriminalallegationstobeungroundedanddenythemintheirentirety.Misen’spositionisthattheArbitralTribunalhadtheexclusivejurisdictiontodeterminevalidityofJAANo.3.

Forfurtherinformation,pleasealsorefertochapterEssentialeventsaftertheendoftheQ12019.

ContributiontotheJA

FollowingterminationoftheJAANo.3,MisenEnterprisesABconsidersthatnofurthercontributionscanbemadeunderJAANo.3.Theliabilityregardingtheremainingcontribution,previouslyaccountedforinMisenGroup,hasbeenreversedasapartofthedeconsolidationofJAasof31December2017.

OperationsintheJAduringQ12019ProductionreportThetablebelowsetsforththeaccumulatedreportedproductionindicatorsattributabletotheJAforthespecifiedperiods:

Q12019 Q12018 Q12017 Q12016 Q12015 Q12014NaturalGas(mmcm) - - - 164 153 174GasCondensate(ktons*)

- -- 7.9 6.9 8.1

Oil(ktons) - - - 1.6 2.4 5.7LPG(ktons) - - - 3.9 - -

SinceDecember2016andbeforetheArbitralTribunalrenderedafinalpartialawardtoterminateJAANo.3,JSCUkrgasvydobuvannyacontinued,asMisenEnergyAB(publ)believes,manifestlyunlawfulactionsandrefusedtoprovideservicesinrespecttoproduction,collection,treatmentandtransportationofhydrocarbonstoJA(seebelow“SaleofHydrocarbons”).DuetothistheproductionofhydrocarbonsattributabletoJAwaszero.MisenEnterprisesandKarpatygazbelievethattheyare


entitledtotheirshareofhydrocarbonsattributabletoJAsinceDecember2016untilterminationofJAANo.3(sinceJune2017excludingincrementalproductionofnaturalgasfromleasedBoosterCompressorStations(“BCSs”)).ThisissuewillbedecidedbytheArbitralTribunalintheongoingarbitrationproceeding.DuringQ12019theproductionwasatzerolevelduetoterminationofJAA.AgreementwithSolarTurbinesCISLLCInJune2013,KarpatygazinitscapacityasOperatoroftheJointActivityandSolarTurbinesCISLLCenteredintoanagreementforequipmentmaintenanceservices(asfurtheramended).SolarTurbinesCISLLCrenderedtheagreedservices,howevertheJointActivitydidnotpayfortheservicesmainlyduetothehaltedoperationsoftheJointActivity.Asof31March2019,outstandingdebttoSolarTurbinesCISLLCamountedtoKUSD771.7(KSEK7,169.8).MisenEnterprises,KarpatygazandJSCUkrgasvydobuvannyadiscusssettlementofthedebttoSolarTurbinesCISLLC.UnderJAAthepartiesarejointandseveralliable.Thus,allpartiesareliableunderthisagreement.Thisobligationisincludedasacontingentliability.

OperationoftheBoosterCompressorStationsInearly2016,theJAA’sparticipantsagreedonaleaseoftheKhrestyschenskaBCStoJSCUkrgazvydobuvannya.UGVhadoperatedthisBCSforitssolebenefitandpaidthecorrespondingfuelgascostsacquiredduringtheleaseperiodsince1January2016untilterminationofJAANo.3.ThepaymentsunderagreementsshouldbemadeproportionallytoallparticipantsbyUGV.

Inaddition,givenUGV’srefusaltoallocatethepowersupplycostsaswellastheJA’sunavailabilitytosellhydrocarbons,inMay2017theJointActivityleasedtheremainingsixBCSstoJSCUkrgazvydobuvannya.InMay2018theLeaseAgreements,includingKhrestyschenskaBCS,wererenewed.Inaccordancetotheleaseagreements,JSCUkrgazvydobuvannyacoveredallthecostsrelatedtooperationoftheBCSs.

JSCUkrgasvydobuvannyafailedtomaketheleasepaymentstoJAunderthesignedleaseagreement,excepttheamountpaidtoJSCSberbankandtobesetoffagainstfutureliabilitiesunderrenewedleaseagreements.ThemonthlyleaseincomeamountedtoapproximatelyMUAH18(MSEK6)includingVAT,whiletheoutstandingreceivablesamountedtoMUAH224(MSEK76)includingVATasofdatetheArbitralTribunalrenderedafinalpartialawardtoterminatetheJAANo.3.DespitethefactthatJSCUkrgasvydobuvannyafailedtomakeleasepaymentsaccordingtotheagreements,JAhasmadeVATpaymentsuntilterminationofJAANo.3.

Duringthetermofleaseagreements,JSCUkrgasvydobuvannyasenttoLLCKarpatygaz,astheOperatorofJAANo.3,morethan100set-offnoticesseekingtooffsetitsleasepaymentagainsttheallegedpaymentsthatLLCKarpatygazshouldhavemadetoUGV.LLCKarpatygazobjectedalltheclaimsandinitiatedcourtproceedingsinUkrainiancourtstoinvalidatetheset-offnotices.

MisenEnterprisesABandLLCKarpatygazbelievethatstartingfrom11July2018,whentheArbitralTribunalrenderedafinalpartialawardtoterminatetheJAANo.3,theleaseagreementsceasedtoexist.Asof31March2019,MisenEnterprises,LLCKarpatygazandJSCUkrgasvydobuvannyareachednoagreementwhatregardsoperationoftheboostercompressorstationsandtherelatedcosts.

SubsoilusechargeAspreviouslyreported,duetothe70%subsoilusechargeapplicabletoJA,inOctober2015,theCompanysubmittedanoticeofinvestmentdisputetotheGovernmentofUkraineinaccordanceto


theAgreementbetweentheGovernmentoftheKingdomofSwedenandtheGovernmentoftheUkraineonthePromotionandReciprocalProtectionofInvestments.

TheGovernmentofUkrainecontinuedtoimposetheexorbitantsubsoilchargefortheJointActivityuntilterminationofJAANo.3on11July2018.UpuntilterminationoftheJAANo.3on11July2018,theCompanyreachednoamicableresolutionofthedisputewiththeGovernmentofUkraine.

MisenEnergyAB(publ)reservesallitsrightsinthisrespect.

TaxpaymentsinUkraineSince2011,JAanditsparticipantshavecontributedtoUkraineKUAH11,174,511(adjustedKSEK5,243,935)assubsoilusecharge,valueaddedtaxandcorporateprofittax.DespiteterminationofJAANo.3on11July2018JAisstillregisteredastaxpayerwithtaxauthoritiesofUkraine.Since11July2018JApaidKUAH4,098(KSEK1,300)inVATrelatedtotheleaseservicestill11July2018(pleaseseesectionOperationoftheBoosterCompressorStations).

SaleofhydrocarbonsFromJanuaryuntilterminationoftheJAANo.3on11July2018,JSCUkrgasvydobuvannyacontinued,astheCompanybelieves,manifestlyunlawfulactionsandrefusedtoprovideservicesinrespectofproduction,collection,treatmentandtransportationofhydrocarbonstoJA.

In2016,LLCKarpatygaz,initscapacityasOperatoroftheJointActivity,commencedacourtproceedingandrequestedthecourttoorderJSCUkrgasvydobuvannyatoprovideservicesinrespectofproduction,collection,treatmentandtransportationofhydrocarbonstotheJA.ThecourtobligedUGVtoprovidetherespectiveservices,howeverJSCUkrgazvydobuvannyaappealedagainsttheruling.TheAppealCourtmaintainedthedecisionofthefirstinstancecourt.Subsequently,JSCUkrgasvydobuvannyafiledacassationappealwiththeSupremeEconomicCourtofUkraine.InNovember2017,theSupremeCourtofUkrainereverseddecisionsoflowercourtsandreturnedthecaseforreconsiderationinanewcircle.

Inaddition,LLCKarpatygazcommencedanothercourtproceedingandrequestedthecourttoorderJSCUkrgazvydobuvannyatodeliverhydrocarbonsproducedbyJAduringtheperiodfromDecember2016.ThecourtobligedJSCUkrgasvydobuvannyatodeliverhydrocarbonstotheJointActivity.ItalsodismissedJSCUkrgasvydobuvannya’scounterclaimagainstJAregardingreimbursementofdebtandpenaltiesundertheservicesagreements.JSCUkrgasvydobuvannyaappealedagainstthiscourtruling.

InDecember2017,theproceedingsinbothcaseswerehalteduntilthefinalcourtrulingoncaseinitiatedbyNABU,asdescribedinthesection”Pre-trialInvestigationsinCriminalCases”above.

InvestmentprogramreportDuetofinancialconstraintsimposedbytheincreasedsubsoilusetaxationaswellasJSCUkrgasvydobuvannya,astheCompanybelieves,manifestlyunlawfulactions,since2017MisenGroupalmostcompletelyhaltedinvestmentsintothedevelopmentprogramofJA.

Since2011anduntilterminationofJAANo.3,theCompanyhasreachedthefollowingmajormilestones:

• at86wellsrepairworksusingthemostup-to-datetechnicalsolutionswereundertaken,• 70wellswerecommissioned,


• 7BCSsfrom11werecommissionedincludingKhrestyschenska,thelargestinUkraine,• 4BCSwereatthefinalstagesofconstruction.

CourtproceedingsagainstCenterofFinancialLeasingLLC(previouslySberbankLeasing)

CourtproceedinginCaseNo.910/21720/15In2015,LLCSberbankLeasingUkraine(“SberbankLeasing”laterasFinancialLeasingCenter)initiatedthecourtproceedingagainstJSCUkrgasvydobuvannya,LLCKarpatygazandMisenEnterprisesABseekingtoenforcethecontractandrecoverpenalties.SberbankLeasingclaimsthatJAfailedtodelivertheequipmentwithinthetermsofthecontractand,therefore,SberbankLeasingisentitledtorecoverpenalties.Contrarytothis,LLCKarpatygazclaimsthattheJointActivitycouldsuspenddeliveryoftheequipmentand,therefore,theJointActivityhascommittednoviolations.InOctober2016,theSupremeEconomicCourtofUkrainevoidedtheverdictsoflowercourts.TheUkrainiancourtsconsideredthecaseinanewcircle.InFebruary2017SberbankLeasingchangeditsclaimsseekingnowtorecoverUSD37,219,502(SEK332,135,819)ofadvancepaymentandUAH352,987,638(SEK112,672,595)asforeignexchangelossesandfines.InMarch2017,SberbankLeasingwasrenamedtoFinancialLeasingCenterfollowingbythechangeofowners.InSeptember2017,theSupremeEconomicCourtofUkraineagainsentthecaseforreconsiderationinanewcircle.ConsiderationofthecaseisnowpendingatKyivEconomicCourt.InOctober2017KyivEconomicCourtengagedtheSpecializedAnti-CorruptionProsecutor'sOffice.

InJune2018,KyivEconomicCourtruledtohalttheproceedinguntilthecourtfinallydecidesontheclaimsbroughtbyNABU.FinancialLeasingCenterappealedagainsttherulingofKyivEconomicCourtinJune2018.

InJuly2018KyivEconomicCourtofAppealupheldthedecisiontakenbyKyivEconomicCourt.

CourtproceedinginCaseNo.No.910/24412/16InDecember2016,SberbankLeasinginitiatedanothercaseagainstJSCUkrgasvydobuvannya,LLCKarpatygazandMisenEnterprisesABseekingtorecoverUAH1,397,704,127(SEK472,013,070).FinancialLeasingCenterclaimsthattheJointActivityfailedtodelivertheequipmentwithinthetermsofthecontractandtherebyFinancialLeasingCenterwasdeprivedofprofitundertheleasebackagreement.InJune2017,FinancialLeasingCenterfiledadditionalclaimtorecoverUSD10,170,581(SEK94,494,004)oflostprofit.KyivEconomicCourtresolvedtorecoveronlyUAH237,507,020(SEK80,207,546)oflostprofit.

On15May2018,KyivEconomicCourtofAppealengagedNABUasathirdpartytotheproceeding.

InJune2018thejudgeofKyivEconomicCourtrecusedhimselfbasedontherequestofFinancialLeasingCenter.

On13August2018,KyivEconomicCourtofAppealupheldthedecisionofthefirstinstancecourtandresolvedtorecoverUAH237,507,020(SEK80,207,546)oflostprofitandUAH9,856(SEK3,328)ofcourtcoststoFinancialLeasingCenter.Thisdecisionwassubjecttoanimmediateenforcement.

LLCKarpatygazchallengedthedecisionintheSupremeEconomicCourtofUkraine.On30August2018SupremeEconomicCourtofUkraineruledtohaltenforcementofrulingofKyivEconomicCourtofAppealuntilitwillbereconsideredaccordingtocassationprocedure.

Thehearingwasheldon27February2019.SupremeEconomicCourtpartiallyupheldcassationappealsofJSCUkrgasvydobuvannya,LLCKarpatygazandMisenEnterprisesABandannulledrulings


oflowerinstancecourts.TheCourtsendFinancialLeasingCenter’sclaimtorecoverlostprofitsforaretrialtoacourtoffirstinstance.

MisenandKarpatygazconsiderthatalltheclaimsareunlawfulandbelievethatfinalcourtdecisionwillabolishthedecisionsoflowercourts.


Essentialeventsaftertheendofthe12M2018

OngoingarbitrationunderJAANo.3

JSCUkrgazvydobuvannyarequestedtheArbitralTribunal,amongotherissues,tosignificantlyreduceparticipationshareofMisenEnterprisesABandLLCKarpatygazinJAANo.3andtoawardcompensationofdamagesthatJSCUkrgazvydobuvannyaallegedlysufferedduetonon-fundamentalbreachesofJAANo.3.MisenEnterprisesABandLLCKarpatygazshallfiletheirsubmissionby3June2019.ThehearingshalltakeplaceinJuly2019.CourtproceedinginCaseNo.910/18439/17(NationalAnticorruptionBureauofUkraine)Thehearingwasheldon21May2019.TheNorthEconomicCourtofAppealdismissedappealclaimssubmittedbyNABUandUGV.TheCourtupheldthedecisionofthefirstinstancecourt.UnderUkrainianlaw,NABUandUGVhasarighttoappealagainstthedecisionoftheNorthEconomicCourtofAppeal.CourtproceedinginCaseNo.910/24412/16(FinancialLeasingCenterLLC)TheCourtsuspendedconsiderationofthecaseuntil5September2019.


3.Results–theMisenGroupandtheCompany

MisenGroupnetturnoverforQ12019wasKSEK2,895(KSEK163)andtheParentCompanynetturnoverforthisperiodwasKSEK4,504(KSEK1,394).

InQ12019lossafterfinancialitemsfortheMisenGroupwasKSEK-4,442(KSEK-9,299)theParentCompanyprofitafterfinancialitemsmadeupKSEK527(lossofKSEK-729).

Since31December2017,JAisnolongerconsolidatedintotheaccountsofMisenEnergysincecontrolceasedtoexist.JAANo.3wasterminatedon11July2018.

InQ12019,duetoterminationofJAA,theproductionofhydrocarbonsattributabletoJAwaszero(zerolevelduringthesameperiod2017duetoviolationbyJSCUkrgazvydobuvannyaofJAA).

Financialassetsandliabilities

AsofdateofterminationJAA,JAhasKUAH168,779(KSEK56,998)ofwrittenoffbaddebts.ThesubsidiaryLLCKarpatygaz,astheOperatorofJA,isengagedinconstructivenegotiationswiththedebtors.ThesettlementoftheseoutstandingobligationsisalsosoughtthroughthecourtproceedingsinUkraine.

Thefairvalueofthefinancialassetsandfinancialliabilitiesisestimatedtobeequaltothecarryingvalue.

Contingentliabilities

Asof31March2019,MisengroupcontingentliabilitiesamountedtoKSEK28,594(KSEK27,027asof31December2018),thechangeismainlyexplainedbytheUAHappreciation.

Asdescribedabove,theGroupisalsoinvolvedintwocourtproceedingswithSberbankLeasing(CourtproceedinginCaseNo.910/21720/15andCourtproceedinginCaseNo.No.910/24412/16).Theoutcomeofthesecourtproceedingsisuncertainatthedateofthisreport.

Cashposition

Asof31March2019,thecashbalanceoftheMisenGroupwasKSEK16(KSEK5,059).Thecashflowfromoperationsafterchangesinworkingcapitalfor12M2018wasKSEK-33(KSEK-7,252).

Capitalexpenditure

TheMisenGroup´scapitalexpenditureonequipmentforgasproductioninUkrainerelatedtotheJAactivityduringQ12019wasatzerolevelduetodeconsolidationasdescribedabove.

Amendmentstothetaxcode

Asreportedinpreviousreports,asof1January2015UkrainianParliamentadoptedamendmentstothetaxcode.Accordingtotheadoptedamendments,JointActivitiesarenotcorporateprofittax


(“CPT”)payersstartingfrom2015.Instead,JointActivities’operatorsareliabletopayincometaxesonbehalfoftheparticipants.InDecember2015UkrainianParliamentadoptedadditionalamendmentstothetaxcode.AccordingtotheseamendmentstheCPTreturnissubmittedwithin40daysaftertheendofreportingperiodonaquarterlybasis.TheCPTobligationsarebasedonthetaxreturnsforthepreviousquarterandarepaidwithin10daysaftersubmissionofthereturn.

InthisreportithasbeenassumedthatMisenGroupwithregardtothetaxesrelatedtoJAwillbetaxpayeraccordingtoUkrainianlegislationbasedonthepresumptionthatithasoperatingactivitieswithinthecountry.JointoperationssuchastheJAinUkrainehavenocleardefinitionintheSwedishTaxLegislation.JAhasinthetaxreturnsofMisenEnterprisessince2015beentreatedasaforeignlegalentitytaxedbytheparticipants(Sw.Iutlandetdelägarbeskattadjuridiskperson).ThisreporthasbeenpreparedontheassumptionthattheincomeintheJAaccruedbefore1January2015willnotbesubjecttotheSwedishtax,thattheholdingintheJAisconsideredasbusiness-relatedshares(Sw.näringsbetingadeaktier)until31December2014andthattheUkrainianincometaxmaybedeductedfromSwedishincometax.

Afterthesaleof49.5%ofthesharesinMisenEnterprisesABtheParentCompanycannolongerutilizethetaxlossescarriedforwardthroughgroupcontributionfromMisenEnterprisesAB.

DespiteterminationofJAANo.3on11July2018JAisstillregisteredastaxpayerwithtaxauthoritiesofUkraineandobligedtopaytaxesaccordingtotheTaxCodeifsuchobligationswillarise.

ExpectedfuturedevelopmentoftheCompanyandgoingconcern

Asdescribedearlierinthisreport,theparticipantsoftheJAANo.3haveconfirmedtheiragreementtoterminatetheJAANo3on24January2018andtheJAANo.3wasterminatedon11July2018.Duetothisfact,JAcannolongerbeconsideredagoingconcern.ThevalueofthenetassetsandthesizeoftheanycompensationentitledtotheGroupasaconsequenceoftheterminationofJAANo.3isuncertainatthedateofthisreport.ToaccountforanassetinaccordancewithIFRStheassetneedstobevirtuallycertainwhichisnotthecaseasthesizeofanycompensationisdependentontheoutcomeofthearbitration.

FortheremainingoperationsoftheGroupalong-termfinancingagreementwithPULwassigned21November2018.Groupaccountsarethereforepreparedbasedonthegoingconcernassumption.


Sectorinformation-theMisenGroup

TheMisenGroupoperationalactivitiesarelocatedinUkraine.SolelyadministrativeissuesareundertakeninSweden.

Geographicalarea 31March2019 31March2018 31Dec2018(AllamountsinKSEK)

Netsales,external:

Sweden -- -- --Ukraine 18 15 297

Fixedassets:

Sweden -- -- --

Ukraine 280 4 296

Transactionswithrelatedparties 31March2019 31March2018 31Dec2018(AllamountsinKSEK) Management,BoardandmajorShareholders:

Purchaseofservices 1,562 5,621 8,639Interestandfees 1,535 -- 574Capitalcontribution 3,110 -- 13,283Salariesandremunerations 1,514 1,448 5,173Short-termdebts 11,570 12,608 5,204Long-termdebts -- -- --

*100%ofthetransactionvalues.

Environmentalimpact

SincetheJAhasbeenterminatedtheGroupnolongerfacesanyenvironmentalrisks.

Accountingprinciples

ThisreportispreparedaccordingtotheInternationalFinancialReportingStandards(IFRS),asadoptedbyEU.ThisreportispreparedaccordingtoIAS34andTheSwedishAnnualAccountsActaswellasRFR2,Accountingforlegalentities.TheaccountingprinciplesfortheMisenGroupaswellasfortheCompanyareidenticaltothelastannualandquarterlyreports,exceptasdescribedbelow:

IFRS16,Leasing,appliesfromJanuary1,2019andwillmeanthatalmostallleaseswillbereportedinthebalancesheet.MisenEnergyAB(publ)haschosentoapplythesimplifiedtransitionmethodand


willnotrecalculatethecomparativefigures.Thecompany’sleasecommitmentsconsistsolelyofleaseagreementsforpremisesandthusthenewstandarddidnothaveanymaterialimpactonthecompany'sfinancialreports.

Financialandotherrisks

BeforeterminationofJAANo.3,MisenGroupfocusedonincreasingthelocalhydrocarbonsproductioninUkrainebyundertakingalarge-scaleinvestmentprogramfocusedondevelopmentandmodernizationofgasproductioninfrastructure.Inthisactivity,theGroupworkedwithacomplexsetofindustry-specificriskssuchaspricetrendsforoilandgas,currencyriskandinterestraterisks,regulatorymattersrelatingtoinvestigations,processingandenvironmentanduncertaintyinthevalueofthecompletedexplorationworkandthesubsequentfielddevelopment.

ThecurrentfinancialandotherrisksrelatetotheoutcomeoftheongoingarbitrationproceedingwhatregardscompensationtoMisenEnterprisesABandLLCKarpatygazfortheirshareintheJointActivity,enforcementofthearbitralawardsrenderedinaccordancetotheArbitrationRulesoftheArbitrationInstituteoftheStockholmChamberofCommerceandotherrisksrelatedtothemultiplecourtproceedingsinUkraine.

Amorein-depthexplanationofthedifferentriskexposuresintheCompany´sbusinessisincludedintheannualreport2018.

FirstNorth

MisenEnergyAB(publ)islistedonFirstNorth,whichisanalternativemarketplaceoperatedbyNasdaqFirstNorthStockholmandtheCompanyadherestotherulesandregulationsforFirstNorth.TheCertifiedAdviseroftheCompanyisErikPenserBankAB.

PublicationoftheJanuary-March2019interimreport

ThisJanuary–March2019interimreportispublishedattheCompany’swebsite(http://www.misenenergy.se),[email protected].

ThisinformationisinformationthatMisenEnergyAB(publ)isobligedtomakepublicpursuanttotheEUMarketAbuseRegulation.Theinformationwassubmittedforpublication,throughtheagencyofthecontactpersonsetoutabove,at10:00CESTon29May2019.


Futurereports

Nextreport,theinterimJanuary-Junereport2019,willbepublishedon30August2019.

ThisreporthasnotbeensubjecttoreviewbytheCompany’sauditors.

Stockholm,29May2019

Forfurtherinformation,pleasecontact:GöranWolff,MDDirectline: +46317595072Mobile: +46709454848E-mail: [email protected] [email protected]

MisenEnergyAB(publ)(formerlySvenskaCapitalOilAB(publ))isaSwedishupstreamoilandgascompanywithoperationsinUkraine.Thecompanywasfoundedin2004anditssharesaretradedonNasdaqFirstNorthsince12June2007.In2011,MisenEnergyAB(publ)acquiredMisenEnterprisesABanditsUkrainiansubsidiary,LLCKarpatygaz,includingtherightsto50.01%oftherevenueandprofitfromagasproductionprojectinUkraine.UnderIFRSrules,thistransactionisclassifiedasareversetakeover.Inconsiderationoftheacquisition,anewshareissuewascarriedout.ThegasproducingassetswereacquiredbyproductioncooperationviaajointactivityprojectgovernedbyaJointActivityAgreementbetweenatthattimethewholly-owneddirectandindirectsubsidiariesofMisenEnergyAB(publ),i.e.MisenEnterprisesABandLLCKarpatygaz(together50.01%)andJSCUkrgasvydobuvannya(49.99%),asubsidiaryoftheNationalJointStockCompanyNaftogazofUkraine.JSCUkrgasvydobuvannyaisthelargestproducerofnaturalgasinUkraine.ThepurposeoftheJointActivityAgreementistosignificantlyincreaseproductionofgasandoilbyprovidingmoderntechnologiesviaalarge-scaleinvestmentprogramforthepurposesofattainmentofprofits.

InJune2016andinJuly2017MisenEnergyAB(publ)soldrespectively37.5%and10%ofMisenEnterprisesABsharestotheHongKongbasedcompanyPowerfulUnitedLimited.InMarch2018,MisenEnergyAB(publ)sold2%ofMisenEnterprisesABsharestoMr.KonstantinGuenevski.Owning(theremaining)50.5%ofMisenEnterprisesABshares,MisenEnergyAB(publ)maintainsfullcontrolofthecompanyandpreservesarighttoobtain50.5%ofthefuturedividendsfromtheoperationsinUkraine.

TheregisteredofficeofMisenEnergyAB(publ)isinStockholmandthesharesaretradedonFirstNorthunderidentificationtickerMISE.TheCertifiedAdviserofthecompanyatNasdaqFirstNorthisErikPenserBankAB,tel.:+4684638000,e-mail:[email protected].

Forfurtherinformation,pleasevisitourwebsitewww.misenenergy.se.


CONDENSEDINCOMESTATEMENT-THEGROUP

1Jan-31March 1Jan-31March 1Jan-31Dec2019 2018 2018

AllamountsinKSEK 3months 3months 12months

OperatingrevenueNetsales 18 15 297Otheroperatingincome 2,877 148 26,228

2,895 163 26,525

OperatingexpensesOtherexternalexpenses -1,692 -6,613 -17,496Personnelexpenses -4,159 -2,130 -13,048Depreciationandamortisationoftangibleandintangiblefixedassets -25 -1 -71Otheroperatingcost - -714 -50

-5,876 -9,458 -30,665

Operatingincome/loss -2,981 -9,295 -4,140

Financialitems -1,461 -4 -180

Profit/lossafterfinancialitems -4,442 -9,299 -4,320

Taxesfortheperiod 0 0 0

Lossfortheperiod -4,442 -9,299 -4,320

Lossisattributableto:OwnersofMisenEnergyAB(publ) -1,982 -5,300 -5,592Non-contollinginterests -2,460 -3,999 1,272

-4,442 -9,299 -4,320

Statementofcomprehensiveincome-TheGroup

Netlossfortheperiod -4,442 -9,299 -4,320

OthercomprehensiveincomeItemspossibleforlaterreclassificationinincomestatement:Translationdifferences 226 -157 -87Othercomprehensiveincomefortheperiod,netaftertaxes 226 -157 -87

Totalcomprehensiveincomefortheperiod -4,216 -9,456 -4,407

Totalcomprehensiveincomefortheperiodisattributableto:OwnersofMisenEnergyAB(publ) -1,869 -5,457 -5,637Non-contollinginterests -2,347 -3,999 1,230

-4,216 -9,456 -4,407

Netearningspershare,attributabletotheownersofMisenEnergyAB's(publ)(inSEKpershare)

Netearningsfortheperiod,beforeandafterdilution -0.01 -0.04 -0.04

Averagenumberofsharesfortheperiodwas145,068,222


CONDENSEDBALANCESHEET-THEGROUP

AllamountsinKSEK 31March2019 31March2018 31Dec2018

ASSETSNon-currentassets

Intangiblefixedassets - 0 1Tangiblefixedassets 280 4 295Totalnon-currentassets 280 4 296

CurrentassetsStock 102 - 95Accountsreceivable 8,845 61 8,384Otherreceivables 2,830 4,228 2,834Prepaidexpensesandaccruedincome 299 383 351

Totalcurrentassets 12,076 4,672 11,664

Cashandbankbalances 16 5,059 42

Totalcurrentassets 12,092 9,731 11,706

TOTALASSETS 12,372 9,735 12,002


EQUITYANDLIABILITIES

EquityattributabletoownersofMisenEnergyAB(publ) -23,749 -17,170 -19,901Non-controllinginterests 5,309 -2,103 5,677

Totalequity -18,440 -19,273 -14,224

Currentliabilities

Accountspayable 15,945 24,039 15,438Short-termloans 2,606 - 2,553Othershort-termdebt 3,614 1,977 2,480Accruedexpensesanddeferredincome 8,647 2,992 5,755

Totalcurrentliabilities 30,812 29,008 26,226

TOTALEQUITYANDLIABILITIES 12,372 9,735 12,002


CONDENSEDSTATEMENTOFCHANGESINEQUITY-THEGROUP

AllamountsinKSEK

Sharecapital Otherequity Otherreserves Retainedearnings

Total Non-controllinginterests

Totalequity

Equitybroughtforward2018-01-01 290,136 -274,435 -237 -6,805 8,659 -28,604 -19,945NetresultNetresultoftheperiodJan-March2018 0 0 0 -5,300 -5,300 -3,999 -9,299OthercomprehensiveincomeTranslationdifference 0 0 0 -79 -79 -78 -157Totalcomprehensiveincome 0 0 0 -5,379 -5,379 -4,077 -9,456Transactionswithnon-contollinginterestsSaleofsharesinsubsidiary 0 0 0 - 0 10,128 10,128Othertransactionswithnon-controllinginterests -20,540 -20,540 20,540 0Totaltransactionswithnon-controllinginterests 0 0 0 -20,540 -20,540 30,668 10,128Equitybroughtforward2018-03-31 290,136 -274,435 -237 -32,724 -17,260 -2,014 -19,273Equitybroughtforward2018-04-01 290,136 -274,435 -237 -32,724 -17,260 -2,014 -19,273NetresultoftheperiodApril-Dec2018 0 0 -292 -292 -292 5,271 4,979OthercomprehensiveincomeTranslationdifference 0 0 0 34 34 36 70Totalcomprehensiveincome 0 0 0 -258 -258 5,307 5,049Transactionswithnon-contollinginterestsSaleofsharesinsubsidiary 0 0 0 11,348 11,348 -11,348 0Othertransactionswithnon-controllinginterests 0 0 0 -13,731 -13,731 13,731 0Totaltransactionswithnon-controllinginterests 0 0 0 -2,383 -2,383 2,383 0Equitybroughtforward2018-12-31 290,136 -274,435 -237 -35,365 -19,901 5,676 -14,224Equityopeningbalance 290,136 -274,435 -237 -35,365 -19,901 5,676 -14,224TotalcomprehensiveincomeNetresultoftheperiodJan-March2019 -1,982 -1,982 -2,460 -4,442OthercomprehensiveincomeTranslationdifference 115 115 111 226Totalcomprehensiveincome 0 0 0 -1,867 -1,867 -2,349 -4,216Transactionswithnon-contollinginterestsOthertransactionswithnon-controllinginterests -1,982 -1,982 1,982 0Equitybroughtforward2019-03-31 290,136 -274,435 -237 -39,214 -23,750 5,309 -18,440

AttributabletoownersofMisenEnergyAB(publ)


CONDENSEDSTATEMENTOFCASHFLOWS-THEGROUP



OperatingactivitiesOperatingincome -2,981 -9,295 -4,140Adjustmentfornon-cashitems 1,732 403 -8,373Interestanddividendsreceived - 1 4Interestpaid -2 -5 -53Incometax - - -7

Cashflowfromoperatingactivitiesbeforeworkingcapitalchanges -1,251 -8,896 -12,569

Decrease(+)/increaseinstocks -1 - -94Decrease(+)/increaseinreceivables 230 -21,153 857Decrease(-)/increaseinshort-termdebts 989 22,797 -2,731

Cash-flowfromoperatingactivities -33 -7,252 -14,537

InvestingactivitiesAcquisitionoftangibleandintangibleassets - - -536Saleoftangibleandintangibleassets 9 - 247Saleofsharesinsubsidiary - 10,128 10,128

Cashflowfrominvestingactivities 9 10,128 9,839

FinancingactivitiesChangeininterestbearingdebt(increase+) - - 2,553Cashflowfromfinancingactivities 0 0 2,553

Cashflowfortheperiod -24 2,876 -2,145Cashatthebeginningoftheperiod 42 2,181 2,181Exchangeratedifferenceincash -2 2 6Cashattheendoftheperiod 16 5,059 42


CONDENSEDINCOMESTATEMENT-PARENTCOMPANY(MisenEnergyAB(publ))



OperatingrevenueOtheroperatingincome 4,504 1,394 7,620

4,504 1,394 7,620

OperatingexpensesOtherexternalexpenses -1,385 -600 -8,386Personnelexpenses -2,666 -2,006 -5,869

-4,051 -2,606 -14,255

Operatingresult 453 -1,212 -6,635

Resultfromsaleofsubsidiary - 488 488Financialitemsnet 74 -5 -255

74 483 233

Profit/lossafterfinancialitems 527 -729 -6,402

Taxesfortheperiod - - -

Netprofit/loss 527 -729 -6,402

Statementofcomprehensiveincome-Parentcompany

Netlossfortheperiod 527 -729 -6,402

Othercomprehensiveincome - - -

Totalcomprehensiveincomefortheperiod 527 -729 -6,402


CONDENSEDBALANCESHEET-PARENTCOMPANY(MisenEnergyAB(publ))


ASSETS

Non-currentassets

FinancialfixedassetsSharesinsubsidiaries 317,359 308,359 313,359Totalfinancialfixedassets 317,359 308,359 313,359

Totalfixedassets 317,359 308,359 313,359

Totalnon-currentassets 317,359 308,359 313,359

Currentreceivables

Otherreceivables 2 1 1Short-termreceivablessubsidiaries - 12,701 -Prepaidexpensesandaccruedincome 289 384 339

291 13,086 340

Cashandbankbalances 9 4,988 35

Totalcurrentassets 300 18,074 375

TOTALASSETS 317,659 326,433 313,734


EQUITYANDLIABILITIES

Equity

RestrictedequitySharecapital 290,136 290,136 290,136Statutoryreserves 345 345 345

290,481 290,481 290,481

Non-restrictedequityProfit/Lossbroughtforward -2,815 3,590 3,588Profit/lossfortheyear 527 -729 -6,402

-2,288 2,861 -2,814

Totalequity 288,193 293,342 287,667

Non-currentliabilities

Otherlong-termdebtstogroupcompanies 88 88 88

Totalnon-currentliabilities 88 88 88

Currentliabilities

Accountspayable 10,697 19,545 10,602Short-termloans 2,606 - 2,553Othershort-termliabilities 380 11,666 417Accruedexpensesanddeferredincome 6,747 1,792 4,293

Totalcurrentliabilities 29,378 33,003 25,979

TOTALEQUITYANDLIABILITIES 317,659 326,433 313,734


CONDENSEDSTATEMENTOFCHANGESINEQUITY-PARENTCOMPANY(MisenEnergyAB(publ))

AllamountsinKSEKSharecapital

Statutoryreserves

SharePremiumreserve

Retainedearnings Totalequity

Equitybroughtforward2018-01-01 290,136 345 714,285 -710,697 294,069NetresultNetresultoftheperiodJan-March2018 - - - -729 -729Totalcomprehensiveincome 0 0 0 -729 -729Equitybroughtforward2018-03-31 290,136 345 714,285 -711,426 293,340NetresultNetresultfortheperiodApril-Dec2018 - - - -5,673 -5,673Equitybroughtforward2018-12-31 290,136 345 714,285 -717,099 287,667Equityopeningbalance2019-01-01 290,136 345 714,285 -717,099 287,667NetresultNetresultoftheperiodJan-March2019 - - - 527 527Equitybroughtforward2019-03-31 290,136 345 714,285 -716,569 288,194


CONDENSEDSTATEMENTOFCASHFLOWS-PARENTCOMPANY(MisenEnergyAB(publ))



OperatingactivitiesOperatingincome 453 -1,212 -6,635Interestpaid -2 -5 -53Cashflowfromoperatingactivitiesbeforeworkingcapitalchanges 451 -1,217 -6,688

Decrease(+)/increaseinreceivables 49 -7,708 40Decrease(-)/increaseinaccountspayable 95 2,088 -7,057Decrease(-)/increase(+)inshorttermdebts -621 55 -585Cashflowfromoperatingactivities -26 -6,782 -14,290

InvestmentactivitiesSaleofsharesinsubsidiary - 10,126 10,128Cashflowfrominvestingactivities 0 10,126 10,128

FinancingactivitiesChangeininterestbearingdebt - - 2,553Cashflowfromfinancingactivities 0 0 2,553

Cashflowfortheperiod -26 3,344 -1,609Cashatthebeginningoftheperiod 35 1,644 1,644

Cashattheendoftheperiod 9 4,988 35


CONDENSEDFINANCIALANDOPERATIONALKEYRATIOS1Jan-31March 1Jan-31March 1Jan-31Dec

2019 2018 20183months 3months 12months

TheGroup

FinancialkeyratiosEBITDA(KSEK) -2,956 -9,294 -4,069Financialcost -1,537 -5 -629Profit/losspersharebeforedilutionSEK* -0.01 0.04 -0.03Profit/losspershareafterdilutionSEK* -0.01 0.04 -0.03Returnonequity(ROE) n.a. n.a. negReturnoncapitalemployed(ROCE) n.a. n.a. negDebt/equityratio neg neg. negEquityratio neg neg. negShareofriskbearingcapital neg neg. negWeightedaveragenumberofsharesfortheperiod* 145,068,222 145,068,222 145,068,222Numberofoutstandingsharesbeforedilution* 145,068,222 145,068,222 145,068,222Numberofoutstandingsharesafterdilution* 145,068,222 145,068,222 145,068,222Weightedaveragenumberofsharesfortheperiodafterdilution* 145,068,222 145,068,222 145,068,222

TheParentCompany(MisenEnergyAB)

EBITDA(KSEK) 453 -6,635 -6,635Profit/losspersharebeforedilutionSEK* 0.00 -0.04 -0.04Profit/losspershareafterdilutionSEK* 0.00 -0.04 -0.04Returnonequity(ROE) n.a. n.a. negReturnoncapitalemployed(ROCE) n.a. n.a. negDebt/equityratio 0.9% - -Equityratio 90.7% 89.9% 91.9%Shareofriskbearingcapital 90.7% 89.9% 91.9%Weightedaveragenumberofsharesfortheperiod* 145,068,222 145,068,222 145,068,222Numberofoutstandingsharesbeforedilution* 145,068,222 145,068,222 145,068,222Numberofoutstandingsharesafterdilution* 145,068,222 145,068,222 145,068,222Weightedaveragenumberofsharesfortheperiodafterdilution* 145,068,222 145,068,222 145,068,222

Definitioneravnyckeltal

Netincomepershare,computedasnetincomeallocatedtotheshareownersintheparentcompanyduringtheoperatingyear(inSEKpershare)

AlternativePerformanceMeasures–GroupAsofJuly3,2016newguidelinesonAPMs(AlternativePerformanceMeasures)areissuedbyESMA(theEuropeanSecuritiesandMarketsAuthority).APMsarefinancialmeasuresotherthanfinancialmeasuresdefinedorspecifiedbyInternationalFinancialReportingStandards(IFRS).MisenEnergyAB(publ)regularlyusesalternativeperformancemeasurestoenhancecomparabilityfromperiodtoperiodandtogivedeeperinformationandprovidemeaningfulsupplementalinformationtoanalysts,investorsandotherparties.Itisimportanttoknowthatnotallcompaniescalculatealternativeperformancemeasuresidentically,thereforethesemeasurementshavelimitationsandshouldnotbeusedasasubstituteformeasuresofperformanceinaccordancewithIFRS.BelowyoufindourpresentationoftheAPMsandhowwecalculatethesemeasures.

Definitionoffinancialkeyratios1EBITDA(profitbeforeinterest,tax,depreciation,write-downs)definedasthegroupandtheparentcompany'soperatingprofit/lossbeforedepreciation.2.Profit/losspersharebeforedilutiondefinedasthegroupandtheparentcompany'snetprofit/lossaftertaxdividedbythenumberofoutstandingsharesbeforedilutionattheendofperiod.3.Profit/losspershareafterdilutiondefinedasthegroupandtheparentcompany'snetprofit/lossaftertaxdividedbythenumberofoutstandingsharesafterdilutionattheendofperiod.4.Returnonequitydefinedasthegroupandtheparentcompany'sprofit/lossdividedbytotalequityattheendofperiod.5.Returnonworkingcapitalisdefinedasthegroupandtheparentcompany'sprofit/lossafterfinancialitemsplusinterestexpenseplus/minusexchangedifferencesonfinancialitemsdividedbytotalcapitalemployed(averageofthetwolatestperiodsbalancesheettotalwithreductionfornon-interestbearingdebt).6.Debt/equityratiodefinedasthegroupandtheparentcompany'sinterestbearingdebtdividedbyequity.7.Equityratiodefinedasthegroupandtheparentcompany'sequityincludingminorityownersharesdividedbybalancesheettotal.8.Proportionofrisk-bearingcapital%,definedasthesumofoftheGroup'sandParentCompany'srespectiveequityanddeferredtax(includingminorityinterest)divededbythebalncesheettotal.9.Onthe12thofJanuary2012anamalgamationofshares100:1wasregisteredwherebythenumberofshareswerereducedto145,068,222andthequotavaluebecameapproximately2SEK.


interim report january - march 2019 1....

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