EARNINGS / Krygoil Corp reports 1997 Results
CALGARY, May 7 /CNW/ - Kyrgoil Corporation announced today its financial
results for 1997. Kyrgoil sustained a loss of $3,408,348 ($0.07 per share)
and an operating cash flow deficiency of $2,417,957 ($0.05 per share) on
revenues of $8,411,911 in 1997.
In the fourth quarter of 1997, the loss was $579,000 ($0.01 per share)
and the operating cash flow deficiency was $187,000 (nil per share) after
absorbing inventory obsolescence and employee severance and termination
charges of $904,000. Revenues of $4.3 million in the fourth quarter
represented 51% of the revenues realized for the whole year.
In 1996, Kyrgoil reported a loss of $2,354,421 ($0.07 per share) and an
operating cash flow deficiency of $2,081,436 ($0.06 per share) on revenues of
$1,050,227.
The 1997 results reflect the Corporation's first full year of operations
since commencing oil refining operations in the Kyrgyz Republic in October
1996 through Kyrgyz Petroleum Company (''KPC''), its 50% owned joint venture
with the Kyrgyz Republic's national oil company, Kyrgyzneftegaz.
Refinery processing and sales volumes increased in 1997 from (the fourth
quarter of) 1996 as indicated below.
<<
1997 1996
---- ----
Total barrels per day 2,180 1,672
(''bpd'')
KPC share (bpd) 1,310 473
Kyrgoil share (bpd) 655 237
>>
Total refined volumes include the crude oil supplied to the refinery by
Kyrgyzneftegaz. KPC earns 25% of the Kyrgyzneftegaz volumes refined as a
processing fee.
KPC refines domestic crude oil and purchased gas condensate and naphtha,
producing A 76 leaded gasoline, diesel and fuel oil, all of which are sold in
the local Kyrgyz market at prices approximating world prices. To-date, the
refinery has operated on an intermittent basis primarily due to low volumes of
crude oil feedstock.
Kyrgoil's investment commitment to fund the joint venture has been fully
satisfied. Until payout of its US$ 29 million investment, Kyrgoil will
receive 70% of all KPC distributions (50% after payout).
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.
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