GEOPARK HOLDING LIMITED Announces 1Q 2013 Earnings Release Highlights

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Jun 03, 2013, 07:00 ET

SANTIAGO, Chile, June 3, 2013 /PRNewswire/ -- GEOPARK HOLDING LIMITED (AIM: GPK)

Production increased 39% averaging 13,426 boepd.
Colombia oil production increased 66% to 4,932 bopd (vs proforma 1Q2012).
Revenues increased 75% to US$89.8 million in 1Q2013, 93% from sales of oil.
Adjusted EBITDA increased 45% to US$49.7 million; Net income reached US$9.4 million.
Netbacks increased 6% to US$41 per boe produced.
CAPEX totaled US$75 million including 5 wells drilled in Chile and 10 in Colombia. Total 3D seismic performed 1,000 Km² in Chile and 25 Km² in Colombia.
US$300 million bond issued in February 2013 (144A/RegS): more than 6 times oversubscribed, initial yield of 7 5/8%. Funds to be used for new investments; US$170 million used for refinancing.
Momentum built into 2Q2013:
- Exploration drilling commenced in Tierra del Fuego with the Chercan Well in the Flamenco Block following the 3D seismic campaign.
- Strategic acquisition in Brazil of a 10% working interest in the Manati Field, the largest natural gas producing field in Brazil. Manati's EBITDA from 2012 represented approximately 30% of GeoPark's Adjusted EBITDA for the same period. This asset will increase GeoPark production in approximately 4,000 boepd. (Acquisition is subject to Brazilian regulatory approval).
- Seven new onshore blocks awarded in the Brazilian Round 11 with an investment commitment of US$15 million during the first three years of the exploratory period. The new acreage added is approximately 54,850 acres.

1. Financial and Operational Highlights

*(US$ million)*	1Q13	1Q12	% Chg.	2012
Revenues	89.8	51.3	75%	250.5
Oil	83.7	42.8	96%	221.6
Gas	6.1	8.6	-29%	28.9
Chile	45.5	46.0	-1%	149.9
Colombia	43.8	5.0	781%	99.5
Argentina	0.4	0.4	20%	1.1
Adjusted EBITDA	49.7	34.3	45%	121.4
Chile	29.2	32.5	-10%	93.9
Colombia	22.0	2.7	707%	34.5
Argentina, Corporate & Others	-1.6	-0.9	66%	7.0
Adjusted EBITDA Margin (%)	55.3%	66.7%		48.5%
Net Income	9.4	24.3	-61%	18.4
Net Income Margin (%)	10.5%	47.3%		7.4%
Net Cash Flow from Operations	82.7	37.5	120%	131.8

Weighted Avg. Shares (million)	43.5	42.5		42.7
EPS Diluted ($)	0.15	0.46		0.27
Stock Price (£ as of March)	660.0
Average Daily Traded Volume ($ '000)	61.5	71.7		89.9

Production (average boepd)	13,426	9,682	39%	11,276
Chile	8,436	9,099	-7%	7,802
Colombia	4,938	518⁽¹⁾	853%	3,411
Argentina	52	64	-19%	63
% Oil / Revenues	93.2%	83.3%		88.5%
% Gas / Revenues	6.8%	16.7%		11.5%

⁽¹⁾ Calculated as total production since the acquisition date divided by 90.

Revenues up 75%: Total revenues increased to US$89.8 million in 1Q2013 from US$51.3 million in 1Q2012, mainly as a result of a significant increase in oil production and the incorporation of new production from Colombia. Oil revenues from Chilean operations increased by 5.3% to US$39.4 million and Colombian operations contributed additional oil revenues of US$43.8 million. Oil revenues represented 93% of total revenues.
Adjusted EBITDA up 45% reaching US$49.7 million compared to US$34.3 million in 1Q2012, again mainly due to the incorporation of Colombian operations and a higher oil composition in our production. As at 31 March 2013, Colombian operations accounted for 44% of Adjusted EBITDA.
Netbacks increased 6% to US$41 per boe compared to US$38.9 per boe in 1Q2012 reflecting the higher weighting of oil in the production mix, as well as the incorporation of Colombian operations into the portfolio.

2. Summary of Financial Results

STATEMENT OF INCOME

*(US$ million)*	1Q13	1Q12	% Chg.	2012
Revenues	89.8	51.3	74.9%	250.5
Production Costs	(38.3)	(19.4)	97.9%	(129.2)
Gross Profit	51.5	32.0	61.0%	121.2
Operating Profit	26.5	24.9	6.5%	40.7
Financial Income	0.3	0.3	-10.3%	0.9
Financial Expenses	(12.9)	(4.2)	206.2%	(17.2)
Gain on Acquisition	-	8.4		8.4
Profit Before Income Tax	13.9	29.4	-52.8%	32.8
Income Tax	(4.4)	(5.1)	-13.4%	(14.4)
Profit for the Period/Year	9.4	24.3	-61.1%	18.4

Attributable to:
Equity holders of the Parent Company	6.5	20.4	-68.3%	11.9
Non-controlling Interest	3.0	3.9	-25.1%	6.6

BALANCE SHEET AS AT 31 MARCH

*(US$ million)*		2013	2012		2013	2012

Non-Current Assets	540		404	Non-Current Liabilities	342	167

PP&E	511		376	Borrowings	291	135
Other Non-Current	29		28	Other Non-Current Liabilities	51	32

Current Assets	268		167	Current Liabilities	143	108

Cash and Cash Equivalents	176		79	Borrowings	8	34
Prepayment and Other Receivables	43		40	Trade and Other Payable	123	70
Trades Receivables	40		32	Other Current Liabilities	11	5
Inventories	4		13	TOTAL LIABILITIES	485	275
Other Current Assets	6		4	Equity Owners Company	248	245
				Non-controlling Interest	76	51
				TOTAL EQUITY	323	296
TOTAL ASSETS	808		572	TOTAL EQUITY + LIABILITIES	808		572

FINANCIAL INDICATORS

	Units	As at 31 Mar 13	As at 31 Mar 12	Covenant Limit
Gross Financial Debt	$ million	299	168
Net Financial Debt	$ million	123	89
Net Financial Debt / Equity	times	0.4x	0.3x
Net Financial Debt / Adjusted EBITDA⁽¹⁾	times	0.9x	-⁽²⁾
Gross Debt / Adjusted EBITDA⁽¹⁾	times	2.2x	-⁽²⁾	<2.75x
Coverage Ratio⁽¹⁾	times	5.3x	-⁽²⁾	>3.50x
Liabilities / Equity	times	1.5x	0.9x
Current Liabilities	%	29%	39%
Non-Current Liabilities	%	71%	61%
Cash and Cash Equivalents	$ million	176	79
CAPEX	$ million	75	48