Company registration number 05646983 (England and Wales)
SONATRACH GAS MARKETING UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
SONATRACH GAS MARKETING UK LIMITED
COMPANY INFORMATION
Directors
Mrs N Benhamida
Mr R Zerdani
Mrs S Bennour
(Appointed 10 October 2024)
Secretary
Mr S Fergui
Company number
05646983
Registered office
5th Floor
Panton House
25-26 Haymarket
London
SW1Y 4EN
Auditors
Mercer & Hole LLP
21 Lombard Street
London
EC3V 9AH
Bankers
Societe Generale
One Bank Street
Canary Wharf
London
E14 4SG
Solicitors
Addleshaw Goddard LLP
3 Sovereign Square
Sovereign Street
Leeds
LS1 4ER
Clyde & Co
The St Botolph Building
138 Houndsditch
London
EC3A 7AR
SONATRACH GAS MARKETING UK LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 7
Independent auditor's report
8 - 10
Profit and loss account
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 25
SONATRACH GAS MARKETING UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

Review of the business

In June 2006, the company signed a gas purchase and sale agreement with its ultimate parent company, Sonatrach SpA, who own the long-term capacity rights at the Isle of Grain LNG import terminal in the UK.

 

In July 2006, the company was granted a Shipper license under the Gas Act 1986 and started trading gas.

 

Effective 1 January 2009, Sonatrach SpA assigned its capacity rights at the Isle of Grain terminal to the company, pursuant to a new Master Agreement and the Berthing Slot Reservation Agreement, both of which were executed on 30 December 2008. These agreements allow the company to buy LNG instead of natural gas from Sonatrach SpA and develop purchases from other suppliers (ex-ship and from tank). The total volumes of LNG delivered by Sonatrach SpA to the company during the year ended 31 December 2024 was 187 million therms (gas) (2023: 156 million therms). This gas was sold in the UK wholesale gas market in addition to 222 million therms (2023: 170 million therms) delivered by another supplier.

 

During the same year, the company's total revenue decreased to £364,488,417 (2023: £417,963,812) and profit before taxation decreased to £27,172,132 (2023: £61,205,012). This decrease is mainly due to market prices drop.

 

LNG supply to Europe remained strong throughout 2024, particularly from US sources. This supply is expected to continue as Russian pipeline gas is replaced. However, structural demand destruction, healthy storage stocks and a mild winter have lowered natural gas prices compared to 2023.

Future developments

The Directors aim to maintain the management policies which have resulted in the company’s substantial growth in recent years. They believe that the company is in good position to take advantage of any opportunities which may arise in the future.

 

As a result of the assignments of the regasification capacities, the company aims to optimise their use by developing relations with other LNG suppliers in order to import more LNG from different sources.

 

The company also aims to continue to identify and pursue trading opportunities.

SONATRACH GAS MARKETING UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
S172 Statement
Introduction
The Directors consider that they have adhered to the requirements of section 172 of the Companies Act 2006 (the "Act") and have, in good faith, acted in a way that they consider would be most likely to promote the success of the company for the benefit of its members and have had regard to and recognised the importance of considering all stakeholders (as set out in section 172(1)(a-f) of the Act) in its decision making.
Corporate governance framework and stakeholder engagement
The board delegates authority for the executive management of SGM UK to the Managing Director, save for those matters which are reserved for the board's approval. Ultimately, the board retains responsibility for – and regularly monitors – the execution of this delegation of authority, taking action to update it as required. For the financial year ended 31 December 2024, the company continued to act in accordance with the corporate governance arrangements which are embedded across the group's ultimate shareholders. These shareholders support the delivery of strategic and business objectives within a framework of best corporate governance practice. The company is clear that good governance and effective communications are essential to protect the reputation and relationships with all its stakeholder community. The company is committed to health and safety standards and social responsibility.
Decision making
In all decision making, the directors act in good faith in a manner most likely to promote the success of the company, and in doing so always has regard to :
- The likely consequences of any decision in the long term;
- The interests of the company's employees;
- The need to foster the company's business relationships with suppliers, customers and others;
- The impact of the company's operations on the community and the environment;
- The desirability of the company maintaining a reputation for high standards of business conduct;
- The need to act fairly as between members of the company.
Composition of the Board
The Directors of the company have given careful consideration to the size and structure of the Board in order to meet the operational and financial needs and challenges of the business. Also, that the Directors have a suitable level of knowledge and expertise to enable them to discharge any decision making responsibilities appropriately.
Engagement to stakeholders
The long-term success of our business is dependent on building strong supportive relationships and shared values with our stakeholders.

In order to meet its strategic objectives, the company has developed mutually beneficial relationships with stakeholders, including, shareholders, colleagues, suppliers, customers, local communities, Government and regulators. The company ensures that such relationships are established and managed in line with the core principles and values of the company.

Regulators
Management contract specialist legal advisers to regularly review laws and regulations relevant to the LNG industry to ensure compliance with all regulatory changes.

Suppliers
Management engages with suppliers to ensure a common approach and shared understanding of solutions and working practices. Key to fostering long term relationships is the company's flexible approach to working with suppliers.

Employees
The company provides learning opportunities to staff to assist in their development. The employee handbook policies help foster the standards expected.

We supervise and evaluate the management of the company on the priorities related to suppliers, customers, local communities and those with whom the company is in relation and ensure their reinforcement.
SONATRACH GAS MARKETING UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Principal risks and uncertainties

In the ordinary course of business, the company manages a variety of risks, including market price risk, liquidity risk and foreign currency risk. The company has implemented strict policies and procedures to manage and monitor these risks.

 

Market risk

In connection with its trading and marketing activities, the company is exposed to market risk. The fluctuations in the gas prices which directly impacts the gross margin are managed using hedging and trading contracts on daily basis and by exploiting its regasification capacities to capture market opportunities. The company monitors legislative and regulatory changes to help identify trends in the market and mitigate any adverse impacts.

 

Liquidity/cash flow risk

Liquidity risk is the risk that company will not be able to meet its obligations in due time. The company has in place a Sonatrach Group short term credit facility to enable it to fully meet its commitments.

 

Credit risk

The company continuously reviews its financial operating exposure in connection with the credit risk posed by balances due from key customers, such as those set out in note 14 to these financial statements, the directors ensure that these key customers comply with the company’s standard credit terms and that monies owed to the company are paid promptly in accordance with those contractual terms and conditions.

 

Foreign currency risk

As part of its activities, certain transactions are denominated in euros and dollars. To mitigate the exposures to foreign exchange risk, the company holds accounts in corresponding foreign currencies.

Policy and practice with respect to payment of suppliers
It is the company's policy to follow the Confederation of British Industry's (CBI) prompt payment code of practice for all suppliers to the company, with payments made in accordance with the relevant contractual payment terms. A copy of the code of practice may be obtained from the CBI.
The number of days' purchases represented by trade creditors at the year-end was 2.6 on average (2023: nil on average).
Key performance indicators
The company's key financial and other performance indicators during the year were as follows:
2024
2023
% change
Volume of sales (therms)
409,481,000
326,153,773
26
Operating profit (£)
19,974,584
54,721,913
(63)
Volume of sales of natural gas increased by 26%. This volume includes 6 cargoes delivered by Sonatrach SpA of 187 million therms (2023 : 156 million therms) and 222 million therms (2023 : 170 million therms) corresponding to the volume traded with Hartree.
SONATRACH GAS MARKETING UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Going concern
The Directors aim to maintain the management policies which have resulted in the company's substantial growth in recent years. They believe that the company is in good position to take advantage of any opportunities which may arise in the future.

As a result of the assignments of the regasification capacities, the company aims to optimise their use by developing relations with other LNG suppliers in order to import more LNG from different sources. The company also aims to continue to identify and pursue trading opportunities.

In addition of the contractual arrangements in place, under which berthing slots are reserved for Sonatrach SpA, the company has concluded medium term agreements with potential suppliers for optional cargo deliveries. Where berthing slots are not being used, the company is able to monetise such capacity through transactions with selected third parties either using tolling arrangements or LNG cargo purchases with matching onward sales into the wholesale gas market.

In anticipation of the expiry of its first two 20-year long-contracts with Grain LNG, the first in July 2025 which is shared with BP and the second in December 2028, Sonatrach was delighted to maintain and strengthen its position as a long-term partner of Grain LNG and as a substantial contributor to the UK gas supply by entering into a new 10-year contract  following its election as part of the Auction launched by Grain LNG in September 2023.

Furthermore, this significant new contractual capacity of 125 GWh/d (equivalent to 3 million tons of LNG per year) will allow Sonatrach and consequently SGM UK to access the largest and most versatile LNG import terminal in Europe and will undoubtedly offer it promising prospects in the pursuit of its activities and their development over the coming decades.

Moreover, the company has no significant long-term liabilities and has a short term £80m credit facility available from another member of the Group, Sonatrach International Holding Corporation.

Therefore, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

On behalf of the board

Mr R Zerdani
Director
14 April 2025
SONATRACH GAS MARKETING UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
The directors present their report and financial statements for the year ended 31 December 2024.
Principal activities

The principal activities of the company during the year were to engage in proprietary trading of natural gas, and to purchase and supply of LNG in ex-ship and tank.

 

Fair review of the business

The Directors' Report does not include a fair review of the business, details of the risks and uncertainties and future developments as this is included in the Strategic Report.

Results and dividends

The results for the year are set out on page 11.

The profit for the year, after taxation, amounted to £20,554,569 (2023: £46,006,455). Dividends declared and paid in the year amounted to £30,000,000 (2023: £30,000,000).

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr A Zerrouki
(Resigned 10 October 2024)
Mrs N Benhamida
Mr R Zerdani
Mrs S Bennour
(Appointed 10 October 2024)
Auditor

Mercer & Hole LLP were deemed to be reappointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Streamlined Energy and Carbon Reporting (SECR)

Sonatrach Gas Marketing (UK) Limited Greenhouse gas emissions and energy use data for the period January 2024 to December 2024.

2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Natural Gas
24,811
24,811
- Electricity
20,080
22,855
44,891
47,666
SONATRACH GAS MARKETING UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
2024
2023
Emissions of CO2 equivalent
MTCO2e
MTCO2e
Scope 1 - direct emissions
- Natural Gas
4.50
4.50
Scope 2 - indirect emissions
- Electricity
4.20
4.70
Scope 3 - other indirect emissions
- Electricity T & D
2.10
2.30
Total gross emissions
10.80
11.50
Intensity ratio
Tonnes CO2e per employee
28.00
30.30
Quantification and reporting methodology

Sonatrach Gas Marketing (UK) Limited have appointed Amber as their SECR consultants.

Methodologies used to calculate or measure emissions:

Amber applies the following rule in the choice of heating value when presenting an emission factor of fuels expressed in energy content (kWh or GJ or similar).      

Intensity measurement

The chosen intensity measurement ratio is Area of occupied space (m2).

Measures taken to improve energy efficiency

Sonatrach Gas Marketing UK Limited continue to strive for energy and carbon reduction arising from their activities. During this reporting period, Sonatrach Gas Marketing UK Limited have:

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

SONATRACH GAS MARKETING UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
Risk Management

The creditworthiness for all counterparties is subject to continuous review.

 

The company reviews the collectability of receivables on a regular basis. The company believes that the credit risk inherent in the ultimate settlement of the transactions outstanding at the period end will not have a material effect on the company's financial position.

 

The company operates in a market with price volatility. The capacity rights held at the Isle of Grain enables the company to capture value from this volatility and, at times of high prices in the UK, attract further LNG supply from Sonatrach SpA or from other third parties.

 

Regular reviews of the company's exposure to the market is communicated to management, and this exposure is managed daily by the trading team.

 

Information on exposure to market risk, liquidity/cash flow risk and foreign currency risk have been discussed in the Strategic Report on page 3.

Materiality

Sonatrach Gas Marketing (UK) Limited are reporting upon all the required fuel sources as per SECR requirements.

On behalf of the board
Mr R Zerdani
Director
14 April 2025
SONATRACH GAS MARKETING UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SONATRACH GAS MARKETING UK LIMITED
- 8 -
Opinion

We have audited the financial statements of Sonatrach Gas Marketing UK Limited (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the statement of cashflows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

SONATRACH GAS MARKETING UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SONATRACH GAS MARKETING UK LIMITED
- 9 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. These included, but were not limited to, the Companies Act 2006 and tax legislation.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and the financial report (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate entries including journals to overstate revenue or understate expenditure and management bias in accounting estimates.

Audit procedures performed by the engagement team included:

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non- compliance and cannot be expected to detect non-compliance with all laws and regulations.

SONATRACH GAS MARKETING UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SONATRACH GAS MARKETING UK LIMITED
- 10 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://​www.frc.org.uk/​auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Turner
Senior Statutory Auditor
for and on behalf of Mercer & Hole LLP
22 April 2025
Chartered Accountants
Statutory Auditor
21 Lombard Street
London
EC3V 9AH
SONATRACH GAS MARKETING UK LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
364,488,417
417,963,812
Cost of sales
(342,428,437)
(362,722,925)
Gross profit
22,059,980
55,240,887
Distribution costs
(56,910,452)
(61,707,535)
Administrative expenses
(2,131,729)
(2,268,016)
Other operating income
3
56,956,785
63,456,577
Operating profit
4
19,974,584
54,721,913
Interest receivable and similar income
9
7,386,952
6,749,468
Interest payable and similar expenses
10
(189,404)
(266,369)
Profit before taxation
27,172,132
61,205,012
Taxation
11
(6,617,563)
(15,198,557)
Profit for the financial year
20,554,569
46,006,455

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SONATRACH GAS MARKETING UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
619
610
Current assets
Stocks
14
42,260,346
33,095,911
Debtors
15
12,871,519
19,815,497
Cash at bank and in hand
152,837,802
162,121,457
207,969,667
215,032,865
Creditors: amounts falling due within one year
16
(8,091,164)
(5,715,827)
Net current assets
199,878,503
209,317,038
Total assets less current liabilities
199,879,122
209,317,648
Provisions for liabilities
17
(272,125)
(265,220)
Net assets
199,606,997
209,052,428
Capital and reserves
Called up share capital
18
1,000
1,000
Profit and loss reserves
21
199,605,997
209,051,428
Total equity
199,606,997
209,052,428
The financial statements were approved by the board of directors and authorised for issue on 14 April 2025 and are signed on its behalf by:
Mr R Zerdani
Director
Company Registration No. 05646983
SONATRACH GAS MARKETING UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
1,000
193,044,973
193,045,973
Year ended 31 December 2023:
Profit and total comprehensive income
-
46,006,455
46,006,455
Dividends
12
-
(30,000,000)
(30,000,000)
Balance at 31 December 2023
1,000
209,051,428
209,052,428
Year ended 31 December 2024:
Profit and total comprehensive income
-
20,554,569
20,554,569
Dividends
12
-
(30,000,000)
(30,000,000)
Balance at 31 December 2024
1,000
199,605,997
199,606,997
SONATRACH GAS MARKETING UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
21,684,928
102,444,868
Interest paid
(189,404)
(266,369)
Income taxes paid
(8,165,525)
(14,457,545)
Net cash inflow from operating activities
13,329,999
87,720,954
Investing activities
Purchase of tangible fixed assets
(606)
(171)
Interest received
7,386,952
6,749,468
Net cash generated from investing activities
7,386,346
6,749,297
Financing activities
Dividends paid
(30,000,000)
(30,000,000)
Net cash used in financing activities
(30,000,000)
(30,000,000)
Net (decrease)/increase in cash and cash equivalents
(9,283,655)
64,470,251
Cash and cash equivalents at beginning of year
162,121,457
97,651,206
Cash and cash equivalents at end of year
152,837,802
162,121,457
SONATRACH GAS MARKETING UK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
1
Accounting policies
Company information

Sonatrach Gas Marketing UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5th Floor, Panton House, 25-26 Haymarket, London, SW1Y 4EN.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Assessment of the company's ability to continue as a going concern includes an assessment of the future economic environment as well as the company's future prospects and performance. The company has considerable financial resources together with medium/long term contracts with its ultimate parent Sonatrach SpA and with a number of customers and suppliers across different geographic areas. Thus, the directors continue to adopt the going concern basis of accounting in preparing these financial statements.true

1.3
Turnover

SGMUK'S activity consists mainly of importing LNG into the United Kingdom where it is regasified at the Isle of Grain terminal and then selling it to third-party customers in the United Kingdom and trading it on the NBP market.

 

Turnover from the sale of gas is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on LNG and gas dispatch to the customer.

1.4
Other income and distribution costs
Other income is recognised at the fair value of the consideration received for services provided in the normal course of business and is shown net of VAT and other sales related taxes. Other income from the provision of services is recognised when the significant risks and rewards have passed to the buyer, the amount can be measured reliably and it is probable that the economic benefits associated with the transaction will flow to the entity.

Distribution costs are recognised at the fair value of the consideration for the services provided. These costs typically relate to the costs associated with the regasification of the company's stock. These costs are then recharged in full to the parent company and recognised as other income. Since the regasification recharges are ancillary to the main operating activity of the company and correlate closely to the associated distribution costs incurred for regasification, these recharges have been disclosed in other income accordingly.
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost less depreciation.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Fixtures, fittings & equipment
4 years
SONATRACH GAS MARKETING UK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Stocks
Stock comprises LNG held at the Isle of Grain storage facility. Cost is determined by the first-in-first-out method. Supplies are valued at the lower of cost on a weighted average basis and net realisable value.  Cost includes all costs incurred in bringing each product to its present location and condition. Net realisable value is based on estimated selling price less any further costs expected to be incurred to completion and disposal.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

1.8
Financial assets

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Loans and receivables

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

SONATRACH GAS MARKETING UK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.9
Financial liabilities

Basic financial liabilities, including trade creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where the transactions or events have occurred at that date that will result in an obligation to pay more, or a right to receive less tax. Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred tax is measured on an undiscounted basis at the tax rates and laws enacted at the balance sheet date.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

SONATRACH GAS MARKETING UK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover
Sales of LNG
364,488,417
417,963,812
Other significant revenue
Interest income
7,386,952
6,749,468
Other operating income
56,956,785
63,456,577
Other operating income comprises:
- recharge of regasification costs to Sonatrach SpA, in accordance with the Berthing Slot Reservation Agreement.
- optimization of the utilisation of regasification capacity through the transactions carried out with Total Energies Gas & Power Limited (TGP) relating to the transfer of national grid capacity.
Turnover analysed by geographical market
2024
2023
£
£
United Kingdom
364,488,417
417,963,812
364,488,417
417,963,812
SONATRACH GAS MARKETING UK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains/(loss)
(5,819)
48,325
Fees payable to the company's auditors for;
- the audit of the company's financial statements
88,000
88,000
Depreciation of owned tangible fixed assets
597
868
Operating lease charges
231,000
231,000
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
88,000
95,586
6
Employees

The average monthly number of persons (excluding directors) employed by the company during the year was:

2024
2023
Number
Number
Number of staff
6
6
6
6

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
931,927
986,624
Social security costs
121,977
126,453
Pension costs
15,421
15,243
1,069,325
1,128,320
7
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
446,335
507,627
SONATRACH GAS MARKETING UK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
2,507
2,546
9
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
7,386,952
6,749,468
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
7,386,952
6,749,468
10
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
189,404
266,369
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
6,599,912
15,191,855
Adjustments in respect of prior periods
10,746
(545)
Total current tax
6,610,658
15,191,310
Deferred tax
Reversal of timing differences including changes of tax rate
6,905
7,247
Total tax charge
6,617,563
15,198,557
SONATRACH GAS MARKETING UK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
11
Taxation
(Continued)
- 21 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
27,172,132
61,205,012
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
6,793,033
15,301,253
Tax effect of expenses that are not deductible in determining taxable profit
5,056
2,446
Adjustments in respect of prior years
10,746
(545)
Effect of change in corporation tax rate
-
0
(918,075)
Permanent capital allowances in excess of depreciation
(502)
(409)
Cushion gas movement
(197,675)
806,640
Movement of deferred tax
6,905
7,247
Taxation charge for the year
6,617,563
15,198,557
12
Dividends
2024
2023
2024
2023
Per share
Per share
Total
Total
£
£
£
£
Ordinary shares
Final paid
30,000.00
30,000.00
30,000,000
30,000,000
SONATRACH GAS MARKETING UK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
13
Tangible fixed assets
Fixtures, fittings & equipment
£
Cost
At 1 January 2024
212,929
Additions
606
At 31 December 2024
213,535
Depreciation and impairment
At 1 January 2024
212,319
Depreciation charged in the year
597
At 31 December 2024
212,916
Carrying amount
At 31 December 2024
619
At 31 December 2023
610
14
Stocks
2024
2023
£
£
Commercial
39,149,497
30,750,148
Talon/Heel
3,110,849
2,345,763
42,260,346
33,095,911
Stock 'Talon/Heel' amounting to £3,110,849 (2023: £2,345,763) represent the volume of LNG required to stay in tanks during all the life of the company.
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
-
0
2,672,877
Corporation tax recoverable
462,633
-
0
Amount due from parent undertaking
10,896,176
10,941,274
Other debtors
904,650
5,418,958
Prepayments and accrued income
608,060
782,388
12,871,519
19,815,497
SONATRACH GAS MARKETING UK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
16
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
2,460,685
46,488
Corporation tax
-
0
1,092,234
Other taxation and social security
27,042
30,621
Other creditors
1,735
1,725
Accruals and deferred income
5,601,702
4,544,759
8,091,164
5,715,827

Included in trade creditors is an amount for £2,293,748 (2023: nil) owing from Sonatrach Gas Marketing UK Limited to Hartree Partners Power & Gas Company (UK) Limited. This figure is shown net of amounts receivable from Hartree Partners Power & Gas Company (UK) Limited in accordance with an agreement in which debts are settled on a net basis.

17
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
272,125
265,220
2024
Movements in the year:
£
Liability at 1 January 2024
265,220
Charge to profit or loss
6,905
Liability at 31 December 2024
272,125

The increase in the standard rate of corporation tax from 19% to 25% effective from April 2023, as enacted by the Finance Act 2021 is reflected in the deferred tax liability of £272,125 at 31 December 2024.

18
Ordinary share capital
2024
2023
£
£
Authorised, issued and fully paid
1,000 Ordinary shares of £1 each
1,000
1,000

Ordinary shares carry rights to dividends and to vote in accordance with the articles of association of the company and the Companies Act 2006.

SONATRACH GAS MARKETING UK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
15,421
15,243

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

The amount payable at year end is £1,735 (2023: £1,725).

20
Operating lease commitments

At the reporting end date, the company had outstanding commitments under non-cancelleable operating leases on office (land and buildings), which fall due as follows:

2024
2023
£
£
Within one year
231,000
231,000
Between two and five years
33,367
264,367
264,367
495,367
21
Profit and loss reserves

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.

22
Related party transactions
The company has not disclosed transactions with group companies in accordance with the exemption contained within FRS 102 Section 33 "Related Party Transactions".
23
Ultimate controlling party

The smallest group of which the company is a member for which consolidated financial statements are prepared is that of Sonatrach Petroleum Investment Corporation ("SPIC"). Copies of SPIC consolidated financial statements can be requested by application to the registered office of the company. The registered office of SPIC is at Herengracht 540, 1017 CG Amsterdam, The Netherlands.

 

The company's ultimate parent undertaking is Sonatrach SpA, a company registered in Algeria. This is the largest group for which consolidated financial statements are prepared. Copies of the consolidated financial statements of Sonatrach SpA can be requested by application to the registered office of the company at Djenane El Malik, Hydra, Algiers, Algeria.

 

The ultimate controlling party is the Algerian government.

SONATRACH GAS MARKETING UK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
24
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
20,554,569
46,006,455
Adjustments for:
Taxation charged
6,617,563
15,198,557
Finance costs
189,404
266,369
Interest income
(7,386,952)
(6,749,468)
Depreciation and impairment of tangible fixed assets
597
868
Movements in working capital:
(Increase)/decrease in stocks
(9,164,435)
49,630,998
Decrease/(increase) in debtors
7,406,611
(2,367,652)
Increase in creditors
3,467,571
458,741
Cash generated from operations
21,684,928
102,444,868
25
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
162,121,457
(9,283,655)
152,837,802
2024-12-312024-01-01falseCCH SoftwareCCH Accounts Production 2024.210Mr A ZerroukiMrs N BenhamidaMr R ZerdaniMrs S BennourS Ferguifalsefalse056469832024-01-012024-12-3105646983bus:Director22024-01-012024-12-3105646983bus:Director32024-01-012024-12-3105646983bus:Director42024-01-012024-12-3105646983bus:Director12024-01-012024-12-3105646983bus:CompanySecretary12024-01-012024-12-3105646983bus:RegisteredOffice2024-01-012024-12-3105646983bus:Agent12024-01-012024-12-3105646983bus:Agent22024-01-012024-12-31056469832024-12-31056469832023-01-012023-12-3105646983core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3105646983core:RetainedEarningsAccumulatedLosses2024-01-012024-12-31056469832023-12-3105646983core:FurnitureFittings2024-12-3105646983core:FurnitureFittings2023-12-3105646983core:CurrentFinancialInstruments2024-12-3105646983core:CurrentFinancialInstruments2023-12-3105646983core:ShareCapital2024-12-3105646983core:ShareCapital2023-12-3105646983core:RetainedEarningsAccumulatedLosses2024-12-3105646983core:RetainedEarningsAccumulatedLosses2023-12-3105646983core:ShareCapital2022-12-3105646983core:RetainedEarningsAccumulatedLosses2022-12-31056469832023-12-31056469832022-12-3105646983core:FurnitureFittings2024-01-012024-12-310564698312024-01-012024-12-310564698312023-01-012023-12-3105646983core:UKTax2024-01-012024-12-3105646983core:UKTax2023-01-012023-12-310564698322024-01-012024-12-310564698322023-01-012023-12-3105646983bus:OrdinaryShareClass12024-01-012024-12-3105646983bus:OrdinaryShareClass12023-01-012023-12-3105646983core:FurnitureFittings2023-12-3105646983core:WithinOneYear2024-12-3105646983core:WithinOneYear2023-12-3105646983core:BetweenTwoFiveYears2024-12-3105646983core:BetweenTwoFiveYears2023-12-3105646983bus:PrivateLimitedCompanyLtd2024-01-012024-12-3105646983bus:FRS1022024-01-012024-12-3105646983bus:Audited2024-01-012024-12-3105646983bus:FullAccounts2024-01-012024-12-31xbrli:purexbrli:sharesiso4217:GBP