EARNINGS / Hurricane Hydrocarbons Ltd. 1st Quarter Results
CALGARY, May 20 /CNW/ - Hurricane Hydrocarbons Ltd. today released its
results for the three months ended March 31, 1998. Daily average production
for the quarter was 55,403 barrels of oil per day (bopd) compared to 43,178
bopd for the same period in 1997. Hurricane's daily average production for
April 1998 increased to 57,837 bopd compared to 44,750 for April 1997.
Total revenues increased 86 per cent in comparison with the same three
month period the previous year, up to US$62.5 million in 1998 from US$33.6
million in 1997. Net income increased by 23 per cent to US$8.7 in 1998 from
US$7.0 million for 1997. Cash flow from operations was US$19.8 million for
the three month period ended March 31, 1998. This compares to cash flow from
operations of US$14.4 million for the same period in 1997.
The per share earnings for the March 1998 quarter were US$0.20 based on
an average of 43.6 million shares outstanding. For the same period in 1997,
per share earnings were US$0.18 based on an average of 38.8 million shares
outstanding.
World oil prices have fluctuated significantly during the past three
month period. Hurricane negotiates pricing directly with customers in the
Kazakhstan domestic market and has been successful at consistently holding
those prices during the past year. Average selling price per barrel of oil
for three months ended March 31, 1998 was US$10.96. This compares to US$9.14
for the same period in 1997 and to US$10.95 for the three months ended
December 31, 1997.
Plans for future growth and long-term investor value remain focused on
company initiatives such as the development of current licensed areas, the
acquisition of new licenses and sales to export markets within Central Asia
and China.
Hurricane's 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.
The Toronto Stock Exchange and Alberta Stock Exchange have neither
approved nor disapproved the information contained herein.
CONSOLIDATED STATEMENT OF INCOME
(Expressed in thousands of United States Dollars)
Three Months Ended
March 31, 1998 March 31, 1997
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REVENUE
Sales $61,321 $33,538
Interest and other income 1,221 105
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62,542 33,643
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EXPENSES
Production 21,366 8,424
Royalties 4,442 708
General and administrative 7,720 7,197
Interest on long-term debt 5,602 -
Depletion and depreciation 10,778 7,368
Foreign exchange gain -101 -
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49,807 23,697
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INCOME BEFORE INCOME TAXES 12,735 9,946
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INCOME TAXES
Current provision 4,075 2,892
Deferred provision - -
--------- ---------
4,075 2,892
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NET INCOME 8,660 7,054
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Retained earnings, beginning of period 28,230 516
Preferred share dividends -15 -
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RETAINED EARNINGS END OF YEAR 36,875 7,570
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PER SHARE INFORMATION EXPRESSED IN UNITED STATES DOLLARS
THREE MONTHS ENDED
March 31, 1998 March 31, 1997
-------------- --------------
Earnings $0.20 $0.18
Cash Flow $0.45 $0.37
EBITDA $0.64 $0.45
CONSOLIDATED BALANCE SHEET
(Expressed in thousands of United States Dollars)
March 31, 1998 March 31, 1997
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ASSETS
CURRENT
Cash and term deposits $44,597 $55,385
Short-term investments 44,749 -
Accounts receivable 42,126 31,684
Inventory 18,630 7,295
Prepaid expenses 2,314 1,508
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152,416 95,872
Notes receivable 480 521
Investments 5,007 -
Capital assets, net 193,175 140,947
Deferred financing costs, net 7,925 4,010
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359,003 241,350
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LIABILITIES
CURRENT
Accounts payable and accrued liabilities 26,796 30,591
Prepayments for refined products 1,500 -
Due to Republic of Kazakhstan - 29,912
Taxes payable and accrued 4,637 1,712
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32,933 62,215
Long-term debt 181,253 80,532
Provision for future site
restorations costs 530 6
Deferred foreign exchange gain 2,014 -
Deferred income taxes 360 -
Preferred shares of subsidiary 136 136
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217,226 142,889
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SHAREHOLDERS' EQUITY
Share capital 104,902 90,891
Retained earnings 36,875 7,570
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141,777 98,461
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359,003 241,350
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