EARNINGS / Hurricane Hydrocarbons 1997 Results
HURRICANE REPORTS SIX MONTH EARNINGS OF US$0.37 PER SHARE
CALGARY, April 2 /CNW/ - Hurricane Hydrocarbons Ltd. today released its
results for the six month period ended December 31, 1997. The short fiscal
period reflects the adoption by Hurricane of a December 31 year end.
Highlights of activities include the commencement of production from the South
Kumkol field in December of 1997 and a significant increase in the company's
proved reserves as at the year end.
With total revenue of US$94.8 million, the company reported earnings of
US$15.8 million and cash flow from operations of US$32.0 million for the six
month period. This represents earnings of US$0.37 per share and cash flow of
US$0.75 per share based on an average of 42.8 million shares outstanding
during the period. Because of the short fiscal period and the fact that the
operations in Kazakhstan were acquired December 1, 1996, a comparison of these
results with the prior year would not be meaningful.
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
(Expressed in thousands of United States Dollars)
Six Months Ended
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December 31, 1997
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(Audited)
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REVENUE
Sales $ 93,907
Interest and other income 897
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94,804
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EXPENSES
Production 28,444
Royalties 6,850
General and administrative 13,729
Interest on long-term debt 6,903
Depletion and depreciation 15,933
Foreign exchange loss 32
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71,891
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Income before income taxes 22,913
Income taxes 7,069
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Net income 15,844
Retained earnings, beginning of period 12,418
Preferred share dividends (32)
Retained earnings, end of period $ 28,230
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PER SHARE INFORMATION EXPRESSED IN UNITED STATES DOLLARS
SIX MONTHS ENDED
DECEMBER 31,1997
BASIC FULLY DILUTED
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Earnings $0.37 $0.33
Cash Flow $0.75 $0.65
EBITDA $1.05
Production over the six month period was 8.6 million barrels and sales
were 8.8 million barrels. During the first three months of 1998, production
has averaged approximately 55,000 barrels of oil per day. For a ten day period
in October and November, Hurricane halted production while modifications were
made to the company's central processing facility to allow it to handle the
increasing volumes of production anticipated in the near future. A further
plant expansion is planned for later in 1998.
In a report issued by McDaniel & Associates Consultants Ltd., Hurricane's
proved and probable oil reserves as of January 1, 1998 were estimated at 429
million barrels versus 389 million barrels as of September 1, 1997. The proved
reserves as of January 1, 1998 were estimated at 239 million barrels versus
153 million barrels as of September 1, 1997.
The Annual General Meeting has been called for Monday, May 25, 1998 in
Calgary, Alberta.
Hurricane is an independent international energy corporation engaged in
the acquisition, exploration, development and production of oil, principally
in the Republic of Kazakhstan.
Hurricane Hydrocarbons Ltd. is listed on the Alberta (ASE) and Toronto
(TSE) stock exchanges under the trading symbol HHL.A and on Nasdaq under the
symbol HHLAF. Hurricane is a member of the TSE 300 and TSE 200 composite
indices.
BACKGROUNDER
Hurricane is reporting its financial results for the six month fiscal
period ended December 31, 1997. Previously, Hurricane reported on the basis of
a June 30 year end. In order to compare the results for the calendar year with
the forecast issued previously, the results for the six months ended June 30,
1997 compiled from the previously issued unaudited quarterly reports, have
been added to the results for the six month period ended December 31, 1997.
EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS
Calendar Year Ended Forecast
July 1 to Jan. 1 to December 31, 1997 Minus
Dec. 31, June 30, 1997 Actual
1997 (Unaudited) (Unaudited) Forecast Results
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Revenue
Oil sales $ 93,907 $ 72,983 $ 166,890 $ 172,021 $ 5,131
Interest 897 557 1,454 627 (827)
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94,804 73,540 168,344 172,648 4,304
Expenses
Production 28,444 17,780 46,224 45,219 (1,005)
Royalties 6,850 3,462 10,312 10,059 (253)
G&A 13,729 14,136 27,865 27,355 (510)
Interest 6,903 2,645 9,548 9,643 95
DD&A 15,933 14,281 30,214 30,924 710
F/X (gain)
loss 32 (65) (33) (97) (64)
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71,891 52,239 124,130 123,103 (1,027)
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Income before
tax 22,913 21,301 44,214 49,545 5,331
Income tax 7,069 9,367 16,436 18,877 2,441
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Net income $ 15,844 $ 11,934 $ 27,778 $ 30,668 $ 2,890
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Per Share
Information(x)
Basic
Earnings $ 0.37 $ 0.28 $ 0.65 $ 0.72
Cash Flow $ 0.75 $ 0.61 $ 1.35 $ 1.44
EBITDA $ 1.05 $ 0.88 $ 1.93 $ 2.09
(x) All per share calculations have been based on 42.8 million
weighted average number of shares outstanding during the six months ended
December 3l, 1997.
The comparison shows that sales for the calendar year 1997 were $5.1
million less than forecasted. This results primarily from the fact that
production during the last quarter was halted for a period of ten days to
allow for modifications to be made to the Company's central oil processing
facility. These modifications were necessary to increase the capacity of the
facility in anticipation of production increases in the near future. As a
result of this shut down, production was approximately 500,000 barrels below
forecast. Interest income was higher than forecast by $0.8 million and total
expenses were $1.0 million higher than forecast as a result of slightly higher
production expenses. The income before tax was lower than forecast by $5.3
million. This was partly offset by a $2.4 million lower charge for income tax
resulting in a net income which was lower than forecast by $2.9 million.
The results for the quarter ended December 31, 1997 are set out below and
are compared with the results for the quarter ended September 30, 1997.
EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS
<<
Three Months Ended
Dec. 31, 1997 Sept. 30, 1997
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Daily oil production (bbls) 44,774 48,581
Daily oil sales (bbls) 46,616 49,314
Revenue
Oil sales $ 46,957 $ 46,951
Interest 827 70
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47,784 47,021
Expenses
Production 15,097 13,348
Royalties 3,249 3,602
G&A 7,510 6,218
Interest 4,413 2,490
DD&A 8,512 7,421
F/X (gain) or loss 64 (32)
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38,845 33,047
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Income Before tax 8,939 13,974
Income tax 2,553 4,516
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Net income $ 6,386 $ 9,458
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Per Share Information(x)
Basic
Earnings $ 0.15 $ 0.22
Cash Flow $ 0.35 $ 0.39
EBITDA $ 0.49 $ 0.56
(x) All per share calculations have been based on 42.8 million weighted
average number of shares outstanding during the six months ended December
31, 1997.
Production and sales volumes were lower in the December quarter than in
the September quarter as a result of the shut down in October and November.
Revenues per barrel were higher in the December quarter due primarily to a
higher percentage of sales being in the form of refined product. Production
expenses on the other hand were higher on a per barrel basis, reflecting a
reduction in the carrying value of inventory as well as the lower production
and sales volumes. |
