Harvest Natural Resources Announces 2013 Second Quarter Results
HOUSTON, Aug. 9, 2013 /PRNewswire/ -- Harvest Natural Resources, Inc. (NYSE: HNR) today announced 2013 second quarter earnings and provided an operational update.
Harvest reported a second quarter net loss of approximately $4.5 million, or $0.12 per diluted share, compared to net income of $6.2 million, or $0.15 per diluted share, for the same period last year.
Petrodelta had net income during the second quarter of $64.8 million, $20.7 million net to Harvest's 32 percent interest, under International Financial Reporting Standards (IFRS), compared to $72.0 million, $23.0 million net to Harvest's 32 percent interest, for the same period last year. After adjustments to Petrodelta's IFRS earnings, primarily to conform to accounting principles generally accepted in the United States (GAAP), Harvest's 32 percent share of Petrodelta's earnings was $6.1 million compared to $18.2 million for the same period in 2012.
Highlights for the second quarter of 2013 include:
Venezuela
- During the second quarter of 2013, Petrodelta drilled and completed four wells and sold approximately 3.5 million barrels of oil (MMBO) for a daily average of approximately 38,211 barrels of oil per day (BOPD), an increase of 5 percent over the same period in 2012
- Petrodelta's current production rate is approximately 43,000 BOPD and the 2013 expected average production rate is 41,300 BOPD with capital expenditures projected at $210.0 million
- July 2013 average production rate was approximately 41,600 BOPD
Gabon
- Progressed planning for a cluster field development
- Field development options have been evaluated and a field development plan is being prepared
- Farmout/sale process has not been concluded
Indonesia
- Continued work on an exploration program targeting the Pliocene and Miocene targets
- Land access and acquisition, environmental studies, and tender prequalification and procurement are on-going
VENEZUELA
During the three months ended June 30, 2013, Petrodelta sold approximately 3.5 MMBO for a daily average of 38,211 BOPD, an increase of five percent over the same period in 2012 and three percent over the previous quarter. Petrodelta also sold 0.6 billion cubic feet of natural gas for a daily average of 6.6 million cubic feet per day. Petrodelta's current production rate is approximately 43,000 BOPD.
During the second quarter of 2013, Petrodelta drilled and completed four development wells in the El Salto field. Currently, Petrodelta is operating five drilling rigs and two workover rigs. A sixth drilling rig is rigging up. Infrastructure enhancement projects in the El Salto and Temblador fields continue. A pipeline between the Isleno field and the main production facility at Uracoa has been completed and is in service.
The average sale price for crude oil produced during the quarter was approximately $90.33 per barrel.
EXPLORATION AND OTHER ACTIVITIES
Dussafu Project - Gabon (Dussafu PSC)
Operational activities during the three months ended June 30, 2013, have focused on subsurface and development planning studies.
Results from technical studies on the core and fluid data from the DTM-1 well have been received and incorporated into the reservoir modeling studies of the Tortue reservoirs. These results have been largely positive, particularly for the Gamba reservoir with better recoveries estimated than originally predicted from the wireline data alone. These subsurface studies are ongoing to evaluate and optimize development options for the Tortue and existing discoveries in the Dussafu license.
We currently estimate the contingent resources for Tortue to be eight million barrels (MMBBL) in the low case to 55 MMBBL in the high case, with a mean of 28 MMBBL. We estimate the mean contingent resources for all the oil discoveries on the Dussafu license to be 49 MMBBL.
In conjunction with the subsurface studies, work is continuing with the development planning. The favored development concept is a Floating Production Storage and Offloading installation close to Tortue, with subsea tiebacks to Ruche and Walt Whitman. Based upon the latest schedule and identified long lead items, the current estimate for production startup is March 2015. Preliminary meetings were held with the Direction Generale des Hydrocarbures (DGH) in Gabon in July and a field development plan is being prepared.
The Pre-Stack Depth Migration reprocessing of the seismic data over the central and inboard part of the license is now largely complete and technical interpretation of the seismic to generate additional prospects in this part of the license has commenced. In addition, acquisition of a new 3D seismic survey to target the Dentale potential identified in Tortue over the outboard part of the license, which is currently covered only by 2D, is being considered.
Harvest has engaged Tudor, Pickering, Holt & Co. to manage a competitive process to farmout a significant portion of its interest in the Dussafu block. This process has not been concluded.
Budong-Budong PSC - Indonesia
Operational activities during the three months ended June 30, 2013, included continued work on an exploration program targeting the Pliocene and Miocene targets encountered in the previous two wells. Land access and acquisition; environmental studies; construction and upgrades to access roads, bridges, and well site; permitting; and tender prequalification and procurement are on-going. In June 2013, the revised 2013 work program and budget for the exploration well was reviewed by SKK Migas, the Special Task Force for oil and gas upstream sector.
Non-GAAP Financial Measures
These measures are included due to the significant nature of Petrodelta's earnings to Harvest. In this press release, Petrodelta's adjusted EBITDA disclosure is not presented in accordance with accounting principles generally accepted in the United States (GAAP) and Petrodelta's financials are not intended to be used in lieu of GAAP presentations of net income or cash flows from operating activities. Adjusted EBITDA is presented because we believe it provides additional information with respect to both the performance of our fundamental business activities as well as our ability to internally fund our future capital expenditures and working capital requirements. We also believe that financial analysts commonly use adjusted EBITDA to analyze Petrodelta's performance.
The Company defines adjusted EBITDA as net income (loss) before interest expense, investment earnings, current income taxes and certain non-cash items in the Company's statements of operations, including depreciation, depletion and amortization, accretion of asset retirement obligations, deferred income taxes, certain employee compensation charges and gains or losses from foreign exchange. Although we present selected items that we consider in evaluating our performance, you should also be aware that the items presented do not represent all items that affect comparability between the periods presented. Variations in our operating results are also caused by changes in volumes, prices, exchange rates and numerous other factors. These types of variations are not separately identified in this release, but are discussed, as applicable, in management's discussion and analysis of operating results in our Annual Report on Form 10-K for the year ended December 31, 2012.
A reconciliation of adjusted EBITDA to net income and cash flows from operating activities for the periods presented is included in the tables attached to this release.
Conference Call
Harvest will hold a conference call at 10:00 a.m. Central Daylight Time on Friday, August 9, 2013, during which management will discuss Harvest's 2013 second quarter results. The conference leader will be James A. Edmiston, President and Chief Executive Officer. To access the conference call, dial 888-438-5519 or 719-325-2281, five to ten minutes prior to the start time. At that time you will be asked to provide the conference number, which is 9175997. A recording of the conference call will also be available for replay at 719-457-0820, passcode 9175997, through August 14, 2013.
The conference call will also be transmitted over the internet through the Company's website at www.harvestnr.com. To listen to the live webcast, enter the website fifteen minutes before the call to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay of the webcast will be available beginning shortly after the call and will remain on the website for approximately 90 days.
About Harvest Natural Resources:
Harvest Natural Resources, Inc., headquartered in Houston, Texas, is an independent energy company with principal operations in Venezuela, exploration assets in Indonesia, West Africa, and China and business development offices in Singapore and the United Kingdom. For more information visit the Company's website at www.harvestnr.com.
CONTACT:
Stephen C. Haynes
Vice President, Chief Financial Officer
(281) 899-5716
This press release may contain projections and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. They include estimates and timing of expected oil and gas production, oil and gas reserve projections of future oil pricing, future expenses, planned capital expenditures, anticipated cash flow and our business strategy. All statements other than statements of historical facts may constitute forward-looking statements. Although Harvest believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Actual results may differ materially from Harvest's expectations as a result of factors discussed in Harvest's 2012 Annual Report on Form 10-K and other public filings.
Harvest may use certain terms such as resource base, contingent resources, prospective resources, probable reserves, possible reserves, non-proved reserves or other descriptions of volumes of reserves. These estimates are by their nature more speculative than estimates of proved reserves and accordingly, are subject to substantially greater risk of being actually realized by the Company.
| HARVEST NATURAL RESOURCES, INC. |
|||||
| CONSOLIDATED BALANCE SHEETS |
|||||
| (in thousands) |
|||||
| June 30, |
December 31, |
||||
| 2013 |
2012 |
||||
| (unaudited) |
|||||
| ASSETS: |
|||||
| CURRENT ASSETS: |
|||||
| Cash and cash equivalents |
$ 9,767 |
$ 72,627 |
|||
| Restricted cash |
1,212 |
1,000 |
|||
| Accounts receivable, net |
3,329 |
2,955 |
|||
| Advances to equity affiliate |
490 |
656 |
|||
| Deferred income taxes |
821 |
821 |
|||
| Prepaid expenses and other |
1,105 |
1,460 |
|||
| Total current assets |
16,724 |
79,519 |
|||
| OTHER ASSETS |
6,491 |
7,613 |
|||
| LONG-TERM RECEIVABLE, EQUITY AFFILIATE |
14,324 |
14,346 |
|||
| INVESTMENT IN EQUITY AFFILIATE |
469,896 |
412,823 |
|||
| PROPERTY AND EQUIPMENT, net |
105,724 |
82,536 |
|||
| TOTAL ASSETS |
$ 613,159 |
$ 596,837 |
|||
| LIABILITIES AND EQUITY: |
|||||
| CURRENT LIABILITIES: |
|||||
| Accounts payable, trade and other |
$ 2,691 |
$ 3,970 |
|||
| Accrued expenses |
8,938 |
30,748 |
|||
| Accrued Interest |
371 |
624 |
|||
| Other current liabilities |
1,978 |
3,538 |
|||
| Income taxes payable |
99 |
102 |
|||
| Total current liabilities |
14,077 |
38,982 |
|||
| OTHER LONG-TERM LIABILITIES |
403 |
1,108 |
|||
| WARRANT DERIVATIVE LIABILITY |
1,685 |
5,470 |
|||
| LONG-TERM DEBT |
76,124 |
74,839 |
|||
| COMMITMENTS AND CONTINGENCIES |
|||||
| EQUITY: |
|||||
| STOCKHOLDERS' EQUITY: |
|||||
| Common stock and paid-in capital |
265,494 |
264,104 |
|||
| Retained earnings |
213,009 |
181,378 |
|||
| Treasury stock |
(66,217) |
(66,145) |
|||
| Total Harvest stockholders' equity |
412,286 |
379,337 |
|||
| Noncontrolling Interest |
108,584 |
97,101 |
|||
| Total Equity |
520,870 |
476,438 |
|||
| TOTAL LIABILITIES AND EQUITY |
$ 613,159 |
$ 596,837 |
|||
| HARVEST NATURAL RESOURCES, INC. |
||
| CONSOLIDATED STATEMENTS OF OPERATIONS |
||
| (in thousands except per share amounts, unaudited) |
||
| Three Months Ended June 30, |
||
| 2013 |
2012 |
|
| EXPENSES: |
||
| Depreciation and amortization |
$ 87 |
$ 97 |
| Exploration expense |
2,603 |
1,541 |
| General and administrative |
7,654 |
6,208 |
| 10,344 |
7,846 |
|
| LOSS FROM OPERATIONS |
(10,344) |
(7,846) |
| OTHER NON-OPERATING INCOME (EXPENSE) |
||
| Investment earnings and other |
118 |
80 |
| Unrealized loss on warrant derivatives |
- |
(1,641) |
| Interest expense |
(1,067) |
(34) |
| Debt conversion expense |
- |
20 |
| Other non-operating expenses |
(141) |
(1,467) |
| Foreign currency transaction loss |
(183) |
(43) |
| (1,273) |
(3,085) |
|
| LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
(11,617) |
(10,931) |
| Income tax benefit |
(1,415) |
(1,022) |
| LOSS FROM CONTINUING OPERATIONS BEFORE NET INCOME FROM |
||
| EQUITY AFFILIATE |
(10,202) |
(9,909) |
| Net income from equity affiliate |
7,602 |
22,829 |
| NET INCOME(LOSS) FROM CONTINUING OPERATIONS |
(2,600) |
12,920 |
| DISCONTINUED OPERATIONS |
(315) |
(2,155) |
| NET INCOME(LOSS) |
(2,915) |
10,765 |
| Less: Net Income Attributable to Noncontrolling Interest |
1,551 |
4,540 |
| NET INCOME (LOSS) ATTRIBUTABLE TO HARVEST |
$(4,466) |
$ 6,225 |
| Three Months Ended |
||||
| June 30, 2013 |
June 30, 2012 |
|||
| NET INCOME (LOSS) ATTRIBUTABLE TO HARVEST PER COMMON SHARE: |
Basic |
Dilutive |
Basic |
Dilutive |
| Net income (loss) from continuing operations |
$(4,151) |
$(4,151) |
$ 8,380 |
$ 8,380 |
| Discontinued operations |
(315) |
(315) |
(2,155) |
(2,155) |
| Net Income (loss) attributable to Harvest |
$(4,466) |
$(4,466) |
$ 6,225 |
$ 6,225 |
| Weighted average common shares outstanding |
39,238 |
39,238 |
37,375 |
37,375 |
| Effect of dilutive shares |
- |
- |
3,424 |
3,424 |
| Weighted average common shares including dilutive effect |
39,238 |
39,238 |
40,799 |
40,799 |
| Per Share: |
||||
| Net income (Loss) from continuing operations |
$ (0.11) |
$ (0.11) |
$ 0.22 |
$ 0.21 |
| Discontinued operations |
(0.01) |
(0.01) |
(0.05) |
(0.06) |
| Net income (loss) attributable to Harvest |
$ (0.12) |
$ (0.12) |
$ 0.17 |
$ 0.15 |
| HARVEST NATURAL RESOURCES, INC. |
||
| CONSOLIDATED STATEMENTS OF OPERATIONS |
||
| (in thousands except per share amounts, unaudited) |
||
| Six Months Ended June 30, |
||
| 2013 |
2012 |
|
| EXPENSES: |
||
| Depreciation and amortization |
$ 174 |
$ 194 |
| Exploration expense |
4,404 |
3,374 |
| Dry hole costs |
- |
767 |
| General and administrative |
11,081 |
11,652 |
| 15,659 |
15,987 |
|
| LOSS FROM OPERATIONS |
(15,659) |
(15,987) |
| OTHER NON-OPERATING INCOME (EXPENSE) |
||
| Investment earnings and other |
164 |
149 |
| Unrealized gain (loss) on warrant derivatives |
3,785 |
(1,209) |
| Interest expense |
(2,265) |
(126) |
| Debt conversion expense |
- |
(2,402) |
| Other non-operating expenses |
(613) |
(1,723) |
| Foreign currency transaction loss |
(91) |
(53) |
| 980 |
(5,364) |
|
| LOSS FROM CONTINUING OPERATIONS |
||
| BEFORE INCOME TAXES |
(14,679) |
(21,351) |
| Income tax benefit |
(1,376) |
(2,242) |
| LOSS FROM CONTINUING OPERATIONS BEFORE NET INCOME FROM |
||
| EQUITY AFFILIATE |
(13,303) |
(19,109) |
| Net income from equity affiliate |
57,073 |
39,725 |
| NET INCOME FROM CONTINUING OPERATIONS |
43,770 |
20,616 |
| DISCONTINUED OPERATIONS |
(656) |
(7,569) |
| NET INCOME |
43,114 |
13,047 |
| Less: Net Income Attributable to Noncontrolling Interest |
11,483 |
7,862 |
| NET INCOME ATTRIBUTABLE TO HARVEST |
$ 31,631 |
$ 5,185 |
| Six Months Ended |
||||
| June 30, 2013 |
June 30, 2012 |
|||
| NET INCOME ATTRIBUTABLE TO HARVEST PER COMMON SHARE: |
Basic |
Dilutive |
Basic |
Dilutive |
| Net income from continuing operations |
$ 32,287 |
$ 32,287 |
$ 12,754 |
$ 12,754 |
| Discontinued operations |
(656) |
(656) |
(7,569) |
(7,569) |
| Net income attributable to Harvest |
$ 31,631 |
$ 31,631 |
$ 5,185 |
$ 5,185 |
| Weighted average common shares outstanding |
39,238 |
39,238 |
36,130 |
36,130 |
| Effect of dilutive shares |
- |
111 |
1,469 |
1,469 |
| Weighted average common shares including dilutive effect |
39,238 |
39,349 |
37,599 |
37,599 |
| Per Share: |
||||
| Net income from continuing operations |
$ 0.82 |
$ 0.82 |
$ 0.35 |
$ 0.34 |
| Discontinued operations |
(0.01) |
(0.02) |
(0.21) |
(0.20) |
| Net income attributable to Harvest |
$ 0.81 |
$ 0.80 |
$ 0.14 |
$ 0.14 |
| HARVEST NATURAL RESOURCES, INC. |
||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
| (in thousands, unaudited) |
||||||||
| Six Months Ended June 30, |
||||||||
| 2013 |
2012 |
|||||||
| Cash Flows From Operating Activities: |
||||||||
| Net income |
$ 43,114 |
$ 13,047 |
||||||
| Adjustments to reconcile net income to net cash |
||||||||
| used in operating activities: |
||||||||
| Depreciation and amortization |
188 |
210 |
||||||
| Dry hole costs |
- |
5,617 |
||||||
| Amortization of debt financing costs |
724 |
287 |
||||||
| Amortization of discount on debt |
1,285 |
- |
||||||
| Foreign currency transaction loss on revaluation |
436 |
- |
||||||
| Debt conversion expense |
- |
1,939 |
||||||
| Allowance for account and note receivable |
- |
5,180 |
||||||
| Write-off of accounts payable, carry obligation |
- |
(3,596) |
||||||
| Net income from equity affiliate |
(57,073) |
(39,725) |
||||||
| Share-based compensation-related charges |
1,269 |
2,124 |
||||||
| Unrealized (gain) loss on warrant derivatives |
(3,785) |
1,209 |
||||||
| Other current liabilities |
(1,560) |
- |
||||||
| Changes in operating assets and liabilities: |
||||||||
| Accounts receivable |
(374) |
6,182 |
||||||
| Prepaid expenses and other |
355 |
(950) |
||||||
| Other assets |
397 |
(829) |
||||||
| Accounts payable |
(1,279) |
(6,337) |
||||||
| Accrued expenses |
(7,175) |
(2,177) |
||||||
| Accrued interest |
(253) |
(971) |
||||||
| Other long-term liabilities |
(705) |
48 |
||||||
| Income taxes payable |
(3) |
532 |
||||||
| Net Cash Used In Operating Activities |
(24,439) |
(18,210) |
||||||
| Cash Flows From Investing Activities: |
||||||||
| Additions of property and equipment |
(37,888) |
(13,146) |
||||||
| Advances to equity affiliate |
(248) |
(150) |
||||||
| Restricted cash |
(212) |
1,200 |
||||||
| Net Cash Used In Investing Activities |
(38,348) |
(12,096) |
||||||
| Cash Flows From Financing Activities: |
||||||||
| Net proceeds from issuances of common stock |
122 |
273 |
||||||
| Financing costs |
(195) |
(167) |
||||||
| Net Cash Provided by (Used In) Financing Activities |
(73) |
106 |
||||||
| Net decrease in Cash |
(62,860) |
(30,200) |
||||||
| Cash and Cash Equivalents at Beginning of Period |
72,627 |
58,946 |
||||||
| Cash and Cash Equivalents at End of Period |
$ 9,767 |
$ 28,746 |
||||||
| PETRODELTA, S. A. |
||||
| STATEMENTS OF OPERATIONS |
||||
| (in thousands except per BOE and per share amounts, unaudited) |
||||
| Three Months Ended |
Three Months Ended |
|||
| Barrels of oil sold |
3,477 |
3,314 |
||
| MCF of gas sold |
597 |
494 |
||
| Total BOE |
3,577 |
3,396 |
||
| Total BOE - Net of 33% Royalty |
2,384 |
2,264 |
||
| Average price/barrel |
$ 90.33 |
$96.10 |
||
| Average price/mcf |
$1.54 |
$1.54 |
||
| $ |
$/BOE - net |
$ |
$/BOE - net |
|
| REVENUES: |
||||
| Oil sales |
$ 314,088 |
$ 318,474 |
||
| Gas sales |
922 |
762 |
||
| Royalty |
(105,528) |
(106,097) |
||
| 209,482 |
87.87 |
213,139 |
94.14 |
|
| EXPENSES: |
||||
| Operating expenses |
34,837 |
14.61 |
20,063 |
8.86 |
| Workovers |
5,389 |
2.26 |
3,149 |
1.39 |
| Depletion, depreciation, amortization |
20,869 |
8.75 |
21,718 |
9.59 |
| General and administrative |
4,703 |
1.97 |
4,944 |
2.19 |
| Windfall profits tax |
51,928 |
21.78 |
74,687 |
32.99 |
| 117,726 |
49.37 |
124,561 |
55.02 |
|
| INCOME FROM OPERATIONS |
91,756 |
38.50 |
88,578 |
39.12 |
| Foreign currency transaction loss |
(5,335) |
(2.24) |
- |
- |
| Windfall profits tax credit |
- |
- |
- |
- |
| Investment earnings and other |
2 |
- |
1 |
- |
| Interest expense |
(3,175) |
(1.33) |
(2,690) |
(1.18) |
| Income before income tax |
83,248 |
34.93 |
85,889 |
37.94 |
| Current income tax expense |
44,128 |
18.51 |
31,268 |
13.81 |
| Deferred income tax benefit |
(25,691) |
(10.78) |
(17,394) |
(7.68) |
| NET INCOME |
64,811 |
27.20 |
72,015 |
31.81 |
| Adjustment to reconcile to reported net income from equity affiliate |
||||
| Deferred income tax expense |
33,973 |
16,258 |
||
| Sports Law under(over) accrual |
1,463 |
(420) |
||
| Net income equity affiliate |
29,375 |
56,177 |
||
| Equity interest in equity affiliate |
40% |
40% |
||
| Income before amortization of excess basis in equity affiliate |
11,750 |
22,471 |
||
| Amortization of excess basis in equity affiliate |
(969) |
(538) |
||
| Conform depletion expense to US GAAP, net of tax |
(3,179) |
896 |
||
| Net income from equity affiliate |
$ 7,602 |
$ 22,829 |
||
| Non-GAAP Financial Measures: |
||||
| Reconcile NET INCOME as reported under IFRS to adjusted EBITDA: |
||||
| NET INCOME |
$ 64,811 |
$ 27.20 |
$ 72,015 |
$ 31.81 |
| Add back non-cash items: |
||||
| Depletion, depreciation and amortization |
20,869 |
8.75 |
21,718 |
9.59 |
| Deferred income tax benefit |
(25,691) |
(10.78) |
(17,394) |
(7.68) |
| Foreign currency transaction loss, net of tax |
2,668 |
1.12 |
- |
- |
| CASH FROM OPERATIONS |
62,657 |
26.29 |
76,339 |
33.72 |
| Investment earnings and other |
(2) |
- |
(1) |
- |
| Interest expense |
3,175 |
1.33 |
2,690 |
1.18 |
| Current income tax expense |
46,796 |
18.51 |
31,268 |
13.81 |
| Adjusted EBITDA |
$ 112,625 |
$ 46.13 |
$ 110,296 |
$ 48.71 |
| Harvest 32% of Adjusted EBITDA |
$ 36,041 |
$ 14.76 |
$ 35,295 |
$ 15.59 |
| PETRODELTA, S. A. |
||||
| STATEMENTS OF OPERATIONS |
||||
| (in thousands except per BOE and per share amounts, unaudited) |
||||
| Six Months Ended |
Six Months Ended |
|||
| Barrels of oil sold |
6,838 |
6,298 |
||
| MCF of gas sold |
1,375 |
1,124 |
||
| Total BOE |
7,067 |
6,485 |
||
| Total BOE - Net of 33% Royalty |
4,712 |
4,324 |
||
| Average price/barrel |
$92.34 |
$102.09 |
||
| Average price/mcf |
$1.54 |
$1.54 |
||
| $ |
$/BOE - net |
$ |
$/BOE - net |
|
| REVENUES: |
||||
| Oil sales |
$ 631,412 |
$ 642,971 |
||
| Gas sales |
2,123 |
1,734 |
||
| Royalty |
(211,061) |
(213,436) |
||
| 422,474 |
89.66 |
431,269 |
99.74 |
|
| EXPENSES: |
||||
| Operating expenses |
61,370 |
13.02 |
41,644 |
9.63 |
| Workovers |
8,453 |
1.79 |
9,057 |
2.09 |
| Depletion, depreciation and amortization |
41,334 |
8.78 |
39,640 |
9.17 |
| General and administrative |
12,084 |
2.56 |
9,927 |
2.30 |
| Windfall profits tax |
117,974 |
25.04 |
159,425 |
36.87 |
| 241,215 |
51.19 |
259,693 |
60.06 |
|
| INCOME FROM OPERATIONS |
181,259 |
38.47 |
171,576 |
39.68 |
| Investment earnings and other |
3 |
- |
2 |
- |
| Foreign currrency transaction gain |
181,386 |
38.49 |
- |
- |
| Windfall profits tax credit |
36,371 |
7.72 |
- |
- |
| Interest expense |
(5,925) |
(1.25) |
(4,603) |
(1.06) |
| Income before income tax |
393,094 |
83.43 |
166,975 |
38.62 |
| Current income tax expense |
181,737 |
38.57 |
73,338 |
16.96 |
| Deferred income tax benefit |
(41,110) |
(8.72) |
(30,884) |
(7.14) |
| NET INCOME |
252,467 |
53.58 |
124,521 |
28.80 |
| Adjustment to reconcile to reported net income from equity affiliate |
||||
| Deferred income tax expense |
57,620 |
28,299 |
||
| Reversal of windfall profits tax credit |
36,371 |
- |
||
| Sports Law over accrual |
(188) |
(765) |
||
| Net income equity affiliate |
158,664 |
96,987 |
||
| Equity interest in equity affiliate |
40% |
40% |
||
| Income before amortization of excess basis in equity affiliate |
63,466 |
38,795 |
||
| Amortization of excess basis in equity affiliate |
(1,522) |
(1,027) |
||
| Conform depletion expense to US GAAP, net of tax |
(4,871) |
1,957 |
||
| Net income from equity affiliate |
$ 57,073 |
$ 39,725 |
||
| Non-GAAP Financial Measures: |
||||
| Reconcile NET INCOME as reported under IFRS to adjusted EBITDA: |
||||
| NET INCOME |
$ 252,467 |
$ 53.58 |
$ 124,521 |
$ 28.80 |
| Add back non-cash items: |
||||
| Depletion, depreciation and amortization |
41,334 |
8.78 |
39,640 |
9.17 |
| Deferred income tax benefit |
(41,110) |
(8.72) |
(30,884) |
(7.14) |
| Foreign currency transaction gain, net of tax |
(90,693) |
(19.25) |
- |
- |
| Windfall profit tax credit (net of tax) (non-recurring item) |
(36,371) |
(7.72) |
- |
- |
| CASH FROM OPERATIONS |
125,627 |
26.67 |
133,277 |
30.83 |
| Investment earnings and other |
(3) |
- |
(2) |
- |
| Interest expense |
5,925 |
1.25 |
4,603 |
1.06 |
| Current income tax expense |
91,044 |
19.32 |
73,338 |
16.96 |
| Adjusted EBITDA |
$ 222,593 |
$ 47.24 |
$ 211,216 |
$ 48.85 |
| Harvest 32% of Adjusted EBITDA |
$ 71,230 |
$ 15.12 |
$ 67,589 |
$ 15.63 |
SOURCE Harvest Natural Resources
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