ENERGY TRUSTS / Athabasca Oil Sands Trust reports Distributions
CALGARY, Jan. 26 /CNW/ - The Board of Directors of Athabasca Oil Sands
Investments Inc. today announced a fourth quarter distribution of $0.50 per
Trust Unit for unitholders of the Athabasca Oil Sands Trust. The distribution
is payable on February 15, 1998 to unitholders of record as of February 8,
1998 and brings total distributions for full-year 1997 to $1.65 per Trust
Unit.
The distribution benefited from high levels of Syncrude production and
lower royalties reflecting the new fiscal regime implemented on January 1,
1997. These were partially offset by higher than forecast capital
expenditures and weaker oil prices.
Syncrude set a new annual production record for 1997 of 75.7 million
barrels. Athabasca's 1997 sales volumes averaged approximately 24,200 barrels
per day, compared to approximately 23,400 barrels per day in 1996. The prices
Athabasca received per barrel of Syncrude Sweet Blend averaged $27.45 for the
fourth quarter and $27.84 for the full year, down $5.04 and $1.29 per barrel
respectively from the same periods in 1996.
During 1998, Syncrude's annual maintenance turnaround will occur in the
first quarter as opposed to the second quarter as originally scheduled. This
will result in lower first quarter production; however, full-year 1998
production is expected to total 80 million barrels, or approximately 9.4
million barrels net to Athabasca, as originally forecast. Based on a revised
price assumption of US$19.00 per barrel, Athabasca anticipates income
available for distribution would be Cdn$1.15 to Cdn$1.30 per Trust Unit.
In 1998, quarterly distributions will be payable on May 15, August 15 and
November 15 to unitholders of record as of May 8, August 8 and November 8,
respectively.
This report contains forward-looking statements within the meaning of
Section 27A of the United States Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Although Athabasca believes that its
expectations are based on reasonable assumptions, these assumptions are
subject to a wide range of business risks, and there is no assurance
Athabasca's objectives will be achieved.
ATHABASCA OIL SANDS TRUST
Consolidated Balance Sheets
December 31, December 31,
1997 1996
------------------------------------------------------------------------
(thousands of dollars)
------------------------------------------------------------------------
ASSETS
Current assets:
Cash $29,169 $29,566
Restricted cash 0 541
Accounts receivable 23,876 26,765
Inventories 14,510 12,100
Prepaid expenses 383 482
------------------------------------------------------------------------
67,938 69,454
Restricted cash 0 3,009
Reclamation trust 970 432
Capital assets, net 372,684 359,122
Deferred charges 4,675 1,499
------------------------------------------------------------------------
$446,267 $433,516
------------------------------------------------------------------------
LIABILITIES AND UNITHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $25,167 $25,284
Unit distribution payable 13,500 21,600
Current portion of other liabilities 1,986 2,799
------------------------------------------------------------------------
40,653 49,683
Other liabilities 14,518 17,034
Long-term debt 106,226 95,000
Future site reclamation and
restoration costs 13,042 12,095
Preferred shares of subsidiary 2,400 2,400
------------------------------------------------------------------------
176,839 176,212
------------------------------------------------------------------------
Unitholders' equity
Trust units 254,975 254,975
Retained earnings 14,453 2,329
------------------------------------------------------------------------
269,428 257,304
------------------------------------------------------------------------
$446,267 $433,516
------------------------------------------------------------------------
Consolidated Statements of Income and Retained Earnings
(Unaudited)
Three months Year ended
ended December 31, December 31,
1997 1996 1997 1996
------------------------------------------------------------------------
(thousands of dollars except per unit amounts)
------------------------------------------------------------------------
Revenues:
Syncrude Sweet Blend $67,593 $73,252 $245,206 $251,499
Other 185 (27) 732 2,800
------------------------------------------------------------------------
67,778 73,225 245,938 254,299
------------------------------------------------------------------------
Expenses:
Operating 28,126 27,926 122,511 118,427
Administration and other 1,095 1,265 4,169 3,861
Crown royalties 11,297 17,600 23,696 47,877
Finance charges 2,245 1,922 9,215 7,603
Depletion, depreciation and
amortization 8,488 5,752 29,170 22,147
Dividends on preferred shares
of subsidiary 66 66 264 264
------------------------------------------------------------------------
51,317 54,531 189,025 200,179
------------------------------------------------------------------------
Income before taxes 16,461 18,694 56,913 54,120
Capital and other taxes 59 1 239 199
------------------------------------------------------------------------
Net income for the period 16,402 18,693 56,674 53,921
Retained earnings,
beginning of period 11,551 5,236 2,329 788
Unit distributions (13,500) (21,600) (44,550) (52,380)
------------------------------------------------------------------------
Retained earnings,
end of period $14,453 $2,329 $14,453 $2,329
------------------------------------------------------------------------
Net income per Trust Unit $0.61 $0.69 $2.10 $1.99
------------------------------------------------------------------------
Consolidated Statements of Changes in Financial Position
(Unaudited)
Three months Year ended
ended December 31, December 31,
1997 1996 1997 1996
------------------------------------------------------------------------
(thousands of dollars)
------------------------------------------------------------------------
Cash provided by (used in):
Operations:
Net income $16,402 $18,693 $56,674 $53,921
Items not involving cash:
Depletion, depreciation and
amortization 8,530 5,795 30,750 22,321
Site restoration costs (57) 0 (382) (459)
Contribution to reclamation
trust (155) (113) (538) (432)
Change in non-cash working
capital 3,814 6,918 557 (617)
------------------------------------------------------------------------
28,534 31,293 87,061 74,734
------------------------------------------------------------------------
Investments:
Capital assets (8,847) (9,005) (41,498) (24,326)
------------------------------------------------------------------------
Sub-total 19,687 22,288 45,563 50,408
------------------------------------------------------------------------
Financing:
Increase in long-term debt 0 0 102,876 8,000
Repayment of long-term debt 0 0 (95,000) (26,000)
Net restricted cash 0 627 3,550 5,805
Deferred financing costs 0 0 (1,407) 49
Decrease in other liabilities (1,302) (4,380) (3,329) (7,668)
------------------------------------------------------------------------
(1,302) (3,753) 6,690 (19,814)
------------------------------------------------------------------------
Other:
Unit distributions paid (13,500) (13,500) (52,650) (34,020)
Acquisition of working
interest 0 2,580 0 2,580
------------------------------------------------------------------------
(13,500) (10,920) (52,650) (31,440)
------------------------------------------------------------------------
Increase (decrease) in cash 4,885 7,615 (397) (846)
Cash, beginning of period 24,284 21,951 29,566 30,412
------------------------------------------------------------------------
Cash, end of period $29,169 $29,566 $29,169 $29,566
------------------------------------------------------------------------
Statements of Trust Royalty and Distributable Income
(Unaudited)
Three months Year ended
ended December 31, December 31,
1997 1996 1997 1996
------------------------------------------------------------------------
(thousands of dollars except per unit amounts)
------------------------------------------------------------------------
Revenues and expenses of Athabasca
Oil Sands Investments Inc.
Revenues $67,777 $73,220 $245,933 $252,363
Operating expenses (28,126) (27,926) (122,511) (118,427)
Administration and other (992) (995) (3,595) (3,383)
Crown royalties (11,297) (17,600) (23,696) (47,877)
Interest on long-term debt (2,226) (1,888) (7,654) (7,429)
Capital taxes (59) (1) (239) (199)
------------------------------------------------------------------------
25,077 24,810 88,238 75,048
Capital expenditures (10,109) (10,077) (43,347) (25,136)
Additional borrowings 0 0 7,876 3,000
Site restoration costs (57) 0 (382) (459)
Mining reclamation trust (155) (113) (538) (432)
Financing costs 0 0 (1,407) 0
Reserve - future operations (1,017) 4,790 (4,865) (1,120)
------------------------------------------------------------------------
Base for Trust Royalty $13,739 $19,410 $45,575 $50,901
------------------------------------------------------------------------
Trust Royalty at 99% $13,602 $19,216 $45,119 $50,392
Interest income of Trust 1 36 5 36
Administrative expenses of Trust (103) (82) (574) (478)
------------------------------------------------------------------------
Distributable income from
operations $13,500 $19,170 $44,550 $49,950
------------------------------------------------------------------------
Distributable income from
operations per Trust Unit $0.50 $0.71 $1.65 $1.85
------------------------------------------------------------------------
Special Distribution
Capital amortization adjustment $0 $1,900 $0 $1,900
Cash from excess proceeds 0 530 0 530
------------------------------------------------------------------------
$0 $2,430 $0 $2,430
------------------------------------------------------------------------
Special distribution per
Trust Unit $0 $0.09 $0 $0.09
------------------------------------------------------------------------
Total distribution per
Trust Unit $0.50 $0.80 $1.65 $1.94
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