EARNINGS / Kyrgoil Corp reports 1st 3 months Results
CALGARY, May 7 /CNW/ - Mr. Gary Roth, President and Chief Executive
Officer of Kyrgoil Corporation, today announced Kyrgoil's financial results
for the first quarter of 1998.
For the three months ended March 31, 1998 Kyrgoil's operating cash flow
deficiency was $189,991 (nil per share), a significant improvement over the
$964,451 deficiency ($0.02 per share) reported in the first quarter of 1997.
The 1998 first quarter loss was $517,851 ($0.01 per share) compared to
the loss of $1,116,705 ($0.02 per share) for the first quarter of 1997.
Revenues for the first three months of 1998 increased to $2,320,057 from
the $716,012 reported for same period last year. The increase in revenues is
a direct result of the below-noted increases in refined processing and sales
volumes realized by Kyrgyz petroleum Company (''KPC''), Kyrgoil's 50%-owned
subsidiary operating in central Asia as a joint venture with Kyrgyzneftegaz,
the Kyrgyz Republic's national oil company.
<<
1Q 1Q
1998 1997
---- ----
Total barrels per day 1,710 1,572
(''bpd'')
KPC share (bpd) 1,180 660
Kyrgoil share (bpd) 590 330
>>
Total refined volumes include the crude oil supplied to the refinery by
Kyrgyzneftegaz. KPC earns 25% of the Kyrgyzneftegaz volumes refined as a
processing fee.
Most of the year-over-year first quarter volume increase is attributable
to processing purchased naphtha and gas condensate, which resulted in
substantially higher yields of gasoline, which, in turn, resulted in
disproportionately higher revenues in the current year.
Corporate overhead costs were substantially reduced in late 1997. The
benefit of this will be realized in 1998 as consolidated break-even cash flow
refining throughput volumes (KPC share) have been reduced to approximately
1,400 bpd from 2,000 bpd.
Supplies of gas condensate and naphtha are now available from a number of
suppliers. Currently, there are sufficient quantities of these feedstocks on
hand or in transit to increase refinery processing and sales volumes from
current levels.
Refinery throughput volumes (KPC shared) are anticipated to average 2,000
bpd in the second quarter, increasing to 3,000 bpd by year-end. This would
generate increased levels of cash flow to the KPC joint venture and to
Kyrgoil.
Kyrgoil Corporation is a Canadian-based public company. Its operations
in the Kyrgyz Republic are conducted through Kyrgyz Petroleum Company, an
integrated oil company formed and owned equally by Kyrgoil and Kyrgyzneftegaz.
|
