PR Newswire: news distribution, targeting and monitoring
2014
See more news releases in Oil & Energy  | Earnings

Orca Exploration announces Q1 2013 results

Share with Twitter Share with LinkedIn

TSX-V: ORC.A, ORC.B

TORTOLA, British Virgin Islands, May 29, 2013 /CNW/ - Orca Exploration Group Inc. ("Orca" or "the Company") announces its results for the first quarter ended 31 March 2013.

Highlights

  • During the quarter there were no payments received from TANESCO. At 31 March 2012, TANESCO owed the Company US$48.8 million (including arrears of US$44.0 million) compared to US$33.3 million (including arrears of US$28.4 million) as at 31 December 2012.
  • Subsequent to the end of the quarter, the Company has received US$19.8 million from TANESCO and current arrears total US$29.1 million.
  • Additional Gas sales continued at capacity during Q1 averaging 61.6 MMcfd being an increase of 16% over the prior period (Q1 2012: 52.9 MMcfd) and up 2% over Q4 2012 (60.2 MMcfd).
  • Industrial sales volume increased by 7% to 13.1 MMcfd from 12.2 MMcfd in Q4 2012. Power sector sales volumes essentially unchanged over Q4 2012 at 48.5 MMcfd.
  • Average Industrial gas price for the quarter was US$7.78/mcf down 9% from Q4 2012 (US$8.56/mcf) a result of applying contract terms applicable for 2013 as agreed with the largest industrial off-taker of natural gas which took effect in January 2013, together with the sales mix.
  • Power sector gas price for the quarter was US$3.55/mcf down 2% over Q4 2012 price of US$3.61/mcf, a result of slightly lower volumes to the power sector which combined for a lower price under the terms of the PGSA.
  • Capital cost pools were depleted in Q4 2012, which resulted in a significant reduction in net revenues, earnings and funds from operations. Accordingly, revenue of US$13.2 million was down 36% over Q4 2012 (US$20.7 million).
  • Funds from operations before working capital changes of US$8.7 million (US$0.25 per share diluted) were down 26% from Q4 2012 (US$11.7 million or US$0.33 per share diluted).
  • Q1 earnings were US$2.95 million or US$0.08 per share diluted, down 47% from Q4 2012 (US$5.6 million or US$0.16 per share diluted).
  • Working capital increased by 16% to US$54.8 million at 31 March 2013 (US$46.8 million as at 31 December 2012) as a consequence of negligible capital expenditures during the quarter.
  • Subsequent to the end of the quarter, in April 2013, the Company tabled a proposed amendment to the Songo Songo PSA for review and consideration by the Government of Tanzania. No further progress was made on the GNT issues.
  • In April 2013, the Company commenced negotiations with TPDC as aggregator for the sale of incremental gas volumes of up to approximately 120 MMcfd.
  • In May 2013, the Government of Tanzania tabled a second draft Natural Gas Policy in Parliament which limited the policy to mid- and down-stream issues, indicating a separate policy was being prepared on upstream issues.
  • Development of Songo Songo production capacity, including workovers of existing wells and the drilling of an additional production well SS-12, continues to be on hold until TANESCO arrears are fully paid, GNT issues are fully resolved and acceptable commercial terms for the sale of incremental gas has been agreed.

Financial and Operating Highlights

           
Three months ended/As at 31-Mar-2013 31-Mar- 2012 Change 31-Dec-2012 Change
           
Financial (US$000 except where otherwise stated)          
Revenue 13,197 17,207 (23%) 20,713 (36%)
Profit before taxation 4,660 10,154 (54%) 10,319 (55%)
Operating netback (US$/mcf) 2.15 2.55 (16%) 3.01 (29%)
Cash and cash equivalents 13,421 30,635 (56%) 16,047 (16%)
Working capital (1) 54,757 47,063 16% 46,819 17%
Shareholders' equity 128,885 113,051 14% 125,935 2%
Total comprehensive income 2,950 6,392 (54%) 5,593 (47%)
Earnings per  share - basic  (US$) 0.08 0.19 (58%) 0.16 (50%)
Earnings per  share - diluted (US$) 0.08 0.18 (56%) 0.16 (50%)
Funds flow from operating activities 8,699 9,888 (12%) 11,699 (26%)
Funds per share from operating activities  - basic  (US$) 0.25 0.28 (11%) 0.34 (26%)
Funds per share from operating activities  - diluted (US$) 0.25 0.28 (11%) 0.33 (24%)
Net cash flows from operating activities (5,748) 6,653 (186%) 9,138 (163%)
Net cash flows per share from operating activities - basic (US$) (0.17) 0.19 (189%) 0.26 (165%)
Net cash flows per share from operating activities - diluted (US$) (0.16) 0.19 (184%) 0.26 (162%)
           
Outstanding Shares ('000)          
Class A shares 1,751 1,751 0% 1,751 0%
Class B shares 32,892 32,743 0% 32,892 0%
Options 1,922 2,257 (15%) 1,922 0%
           
Operating          
Additional Gas sold (MMcf) - industrial 1,176 835 41% 1,127 4%
Additional Gas sold (MMcf) - power 4,363 3,973 10% 4,417 (1%)
Additional Gas sold (MMcfd) - industrial 13.1 9.2 42% 12.2 7%
Additional Gas sold (MMcfd) - power 48.5 43.7 11% 48.0 1%
Additional Gas sold (MMcfd) 61.6 52.9 16% 60.2 2%
Average price per mcf (US$) - industrial 7.78 9.63 (19%) 8.56 (9%)
Average price per mcf (US$) - power 3.55 2.72 30% 3.61 (2%)
           
  1. Working capital as at 31 March 2013 includes a TANESCO receivable of US$48.8 million (31 December 2012: US$33.3 million) and a net Songas receivable of US$5.5 million (31 December 2012: US$5.9 million). Subsequent to the end of the quarter, TANESCO paid US$19.8 million, and the current TANESCO arrears total US$29.1 million.

Condensed Consolidated Interim Statement of Comprehensive Income (Unaudited)

ORCA EXPLORATION GROUP INC.

      Three months ended
         
US$'000s except per share amounts NOTE   31 Mar 2013 31 Mar 2012
         
         
Revenue     13,197 17,207
Cost of sales        
Production and distribution expenses     (794) (1,316)
Depletion expense     (2,722) (1,938)
         
      9,681 13,953
General and administrative expenses     (3,530) (3,664)
Net finance costs     (1,491) (135)
         
Profit before taxation     4,660 10,154
Taxation     (1,886) (3,762)
         
Profit after taxation     2,774 6,392
Foreign currency translation gain from foreign operations     176 -
         
Total comprehensive income for the period     2,950 6,392
         
         
Earnings per share        
         
Basic (US$)     0.08 0.19
Diluted (US$)     0.08 0.18
         

See accompanying notes to the condensed consolidated interim financial statements.


Condensed Consolidated Interim Statement of Financial Position (Unaudited)
ORCA EXPLORATION GROUP INC.

    AS AT
US$'000s NOTE 31-Mar 2013 31-Dec 2012
ASSETS      
Current Assets      
Cash and cash equivalents   13,421 16,047
Trade and other receivables   93,267 73,495
Taxation receivable   14,371 14,692
Prepayments   208 246
    121,267 104,480
Non-Current Assets      
Exploration and evaluation assets   5,722 5,720
Property, plant and equipment   99,503 102,044
    105,225 107,764
Total Assets    226,492 212,244
       
EQUITY AND LIABILITIES      
Current Liabilities      
Trade and other payables   52,398 45,496
Bank loan   9,058 5,842
Taxation payable   5,053 6,322
    66,509 57,660
Non-Current Liabilities      
Deferred income taxes   19,813 20,399
Deferred additional profits tax   11,285 8,250
    31,098 28,649
Total Liabilities   97,607 86,309
       
Equity      
Capital stock   84,983 84,983
Contributed surplus   6,753 6,753
Accumulated other comprehensive income   265 89
Accumulated income   36,884 34,110
    128,885 125,935
Total Equity and Liabilities    226,492 212,244

See accompanying notes to the condensed consolidated interim financial statements.

Future operations (Note 1)
Contractual obligations and committed capital investment (Note 13)
Contingencies (Note 14)

The consolidated condensed interim financial statements were approved by the Board of Directors on 29 May 2013. 


Condensed Consolidated Interim Statement of Cash Flows (Unaudited)
ORCA EXPLORATION GROUP INC.

         
    Three months ended
US$'000s NOTE 31 Mar 2013 31 Mar 2012
CASH FLOWS (USED IN)/FROM OPERATING ACTIVITIES      
Profit after taxation   2,774 6,392
Adjustment for:      
  Depletion and depreciation   2,809 2,019
  Impairment of assets   - -
  Stock-based compensation   (271) 6
  Deferred income taxes   (582) 722
  Deferred additional profits tax   3,035 672
  Interest received   - (1)
  Unrealised loss on foreign exchange   934 78
Funds flow from operating activities   8,699 9,888
Increase in trade and other receivables   (20,928) (2,118)
Decrease/Increase in taxation receivable   320 (3,828)
Decrease in prepayments   38 (40)
Increase in trade and other payables   7,392 534
Increase in taxation payable   (1,269) 2,217
Net cash flows from operating activities   (5,748) 6,653
CASH FLOWS USED IN INVESTING ACTIVITIES      
Exploration and evaluation expenditures   (2) (1,578)
Property, plant and equipment expenditures   (268) (17,170)
Interest received   - 1
Increase/(decrease) in trade and other payables   - 8,072
Net cash used in investing activities   (270) (10,675)
CASH FLOWS (USED IN)/FROM FINANCING ACTIVITIES      
Bank loan proceeds   4,000  
Bank loan repayments   (785) -
Net cash flow from/ (used in) financing activities   3,215 -
Decrease in cash and cash equivalents   (2,803) (4,022)
Cash and cash equivalents at the beginning of the period   16,047 34,680
Effect of change in foreign exchange   177 (23)
Cash and cash equivalents at the end of the period   13,421 30,635

See accompanying notes to the condensed consolidated interim financial statements.

Condensed Consolidated Interim Statement of Changes in Shareholders' Equity (Unaudited)
ORCA EXPLORATION GROUP INC.

           
US$'000 Capital stock Contributed
surplus
Cumulative
translation
adjustment
Accumulated
income
Total
Note          
           
Balance as at 1 January 2013 84,983 6,753 89 34,110 125,935
Foreign currency translation adjustment on foreign operations - - 176 - 176
Total comprehensive income for the period - - - 2,774 2,774
Balance as at 31 March 2013 84,983 6,753 265 36,884 128,885
           
US$'000 Capital stock Contributed
surplus
Cumulative
translation
adjustment
Accumulated
income
Total
Balance as at 1 January 2012 84,610 6,268 - 15,781 106,659
Foreign currency translation adjustment on foreign operations - - - - -
Total comprehensive income for the period - - - 6,392 6,392
Balance as at 31 March 2012 84,610 6,268 - 22,173 113,051


Orca Exploration Group Inc.

Orca Exploration Group Inc. is an international public company engaged in natural gas exploration, development and supply in Tanzania through the wholly-owned subsidiary PanAfrican Energy Tanzania Limited, as well as oil and gas appraisal in Italy. Orca trades on the TSXV under the trading symbols ORC.B and ORC.A. The complete condensed interim consolidated financial statements and notes, as well as Management's Discussion & Analysis may be found on the Company's website www.orcaexploration.com or on www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements

This press release contains forward-looking statements. More particularly, this press release contains statements concerning, but not limited to, incremental gas sales volumes; status of development of the Songo Songo production capacity; the terms of the Government of Tanzania's draft Natural Gas Policy; and the Company's strategic plans. Although management believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, operational, competitive, political and social uncertainties and contingencies. Many factors could cause Orca's actual results to differ materially from those expressed or implied in any forward-looking statements made by Orca.

These forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Orca's control, including, but not limited to, the impact of general economic conditions in the areas in which Orca operates; civil unrest; industry conditions; changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; increased competition; the lack of availability of qualified personnel or management; fluctuations in commodity prices; foreign exchange or interest rates; stock market volatility; competition for, among other things, capital, drilling equipment and skilled personnel;  failure to obtain required equipment for drilling; delays in drilling plans; failure to obtain expected results from drilling of wells; effect of changes to the PSA on the Company; changes in laws; imprecision in reserve estimates; the production and growth potential of the Company's assets; obtaining required approvals of regulatory authorities; risks associated with negotiating with foreign governments; ability to access sufficient capital; and risk that the Company will not be able to fulfill its obligations. In addition there are risks and uncertainties associated with oil and gas operations, therefore Orca's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking estimates and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking estimates will transpire or occur, or if any of them do so, what benefits that Orca will derive therefrom.

Such forward-looking statements are based on certain assumptions made by Orca in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors Orca believes are appropriate in the circumstances, including, but are not limited to, the ability of Orca to add production at a consistent rate; infrastructure capacity; commodity prices will not deteriorate significantly; the ability of Orca to obtain equipment in a timely manner to carry out exploration, development and exploitation activities; future capital expenditures; availability of skilled labour; timing and amount of capital expenditures; uninterrupted access to infrastructure; the impact of increasing competition; conditions in general economic and financial markets; effects of regulation by governmental agencies; that the Company will have sufficient cash flow, debt or equity sources or other financial resources required to fund its capital and operating expenditures and requirements as needed; current or, where applicable, proposed industry conditions, laws and regulations will continue in effect or as anticipated as described herein; and other matters.

The forward-looking statements contained in this press release are made as of the date hereof and Orca undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

 

 

SOURCE Orca Exploration Group Inc.



Featured Video

Journalists and Bloggers

Visit PR Newswire for Journalists for releases, photos, ProfNet experts, and customized feeds just for Media.

View and download archived video content distributed by MultiVu on The Digital Center.

Share with Twitter Share with LinkedIn
 

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

 
 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

 
 

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.

 

Online Member Center

Not a Member?
Click Here to Join
Login
Search News Releases
Advanced Search
Search
  1. PR Newswire Services
  2. Knowledge Center
  3. Browse News Releases
  4. Contact PR Newswire
  5. Send a News Release