Tethys Petroleum Limited
TSX : TPL
LSE : TPL

Tethys Petroleum Limited

August 14, 2013 17:27 ET

Tethys Petroleum Limited: Second Quarter 2013 Financial Results

GRAND CAYMAN, CAYMAN ISLANDS--(Marketwired - Aug. 14, 2013) - Tethys Petroleum Limited ("Tethys" or "the Company") (TSX:TPL)(LSE:TPL) today announced its second quarter 2013 financial results. The Company reports financial results in accordance with International Financial Reporting Standards ("IFRS").

Q2 Financial Highlights

  • Increase in earnings (EBITDA adjusted for share based payments) to USD8.0 million from USD1.1 million in 2012
  • Profit before tax of USD3.9 million (Q2 2012: Loss of USD4.4 million)
  • Administrative costs down 12% at USD4.9 million (Q2 2012: USD5.5 million)

Six Months 2013 Financial Highlights

  • Increase in earnings (EBITDA adjusted for share based payments) to USD10.7 million compared with negative USD0.5 million in 2012
  • Profit before tax of USD0.6 million (2012: loss of USD11.1 million)
  • Revenue from oil and gas sales up 29% at USD21.5 million (2012: USD16.7 million)
  • Administrative costs down 7% at USD9.6 million (2012: USD10.4 million)

The full Q2 Results together with a Management Discussion & Analysis have been filed with the Canadian securities regulatory authorities. Copies of the filed documents may be obtained via SEDAR at www.sedar.com or on Tethys' website at www.tethyspetroleum.com. The increase in profit is primarily due to USD8.7 million of the gain arising from the Tajik farm-out in which USD63.4 million was received on June 18th, USD54.7 million being credited against non current assets and USD8.7 million booked to profit. The summary financial statements are attached to this press release.

The above highlights along with other financial details will be further discussed in a scheduled conference call. Details of the conference call can be found below:

Conference Call:

A conference call will be held at 8:00 AM Eastern Standard Time 1:00 PM British Summer Time on Thursday, August 15, 2013. The North American conference call number is 877 546 5020 and the outside North America conference call number is +1 857 244 7552. The conference call code to use is 80661286. Please call in about 10 minutes before the starting time in order to be patched into the call.

Webcast:

The call is being webcast and can be accessed at:

http://www.media-server.com/m/acs/cef7cf7f74faa9a57a9e7fe7731124c3

Tethys is focused on oil and gas exploration and production activities in Central Asia and the Caspian Region with activities currently in the Republics of Kazakhstan, Tajikistan and Uzbekistan. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.

Note on non GAAP measures: "EBITDA adjusted for share based payments" is a non GAAP measure and is defined as Earnings before Interest, Tax, Depreciation, Amortization and share based payments. See the Management Discussion and Analysis for Q2 for a reconciliation to Profit / (Loss).

Tethys Petroleum Limited
Condensed Consolidated Statement of Financial Position
(Unaudited)
(in US Dollars)
As at
June 30, 2013 December 31, 2012
$'000 $'000
Non-current assets
Property, plant and equipment 113,258 121,097
Intangible assets 54,438 107,374
Restricted cash 2,168 1,543
Prepayments and other receivables 5,812 6,444
Investment in jointly controlled entities 1,120 1,116
176,796 237,574
Current assets
Inventories 1,583 2,046
Trade and other receivables 8,051 7,703
Loan receivable from jointly controlled entity 2,482 2,403
Cash and cash equivalents 64,535 1,750
Restricted cash 477 477
77,128 14,379
Total assets 253,924 251,953
Equity attributable to shareholders
Share capital 28,756 28,671
Share premium 307,295 306,725
Other reserves 42,291 41,705
Accumulated deficit (166,785) (165,385)
Non-controlling interest 8,208 8,437
Total equity 219,765 220,153
Non-current liabilities
Financial liabilities - borrowings 7,153 3,688
Deferred taxation 4,926 2,912
Trade and other payables 287 351
Asset retirement obligations 175 524
12,541 7,475
Current liabilities
Financial liabilities - borrowings 11,736 13,625
Derivative financial instruments - warrants 815 523
Asset retirement obligations 209 -
Deferred revenue 1,155 1,713
Trade and other payables 7,552 8,231
Current tax 151 233
21,618 24,325
Total liabilities
34,159 31,800
Total shareholders' equity and liabilities
253,924 251,953
Tethys Petroleum Limited
Condensed Consolidated Statement of Comprehensive Income
(Unaudited)
For the six months ended June 30
(in US Dollars)
For the 3 months ended For the 6 months ended
June 30, June 30, June 30, June 30,
2013 2012 2013 2012
$'000 $'000 $'000 $'000
(re-presented) (re-presented)
Sales and other revenues 8,951 10,204 21,504 16,691
Sales expenses (880 ) - (1,525 ) -
Production expenses (3,063 ) (2,930 ) (7,125 ) (5,840 )
Depreciation, depletion and amortisation (3,534 ) (4,755 ) (8,513 ) (7,791 )
Business development expenses (767 ) (611 ) (1,269 ) (984 )
Administrative expenses (4,915 ) (5,555 ) (9,585 ) (10,352 )
Share based payments (215 ) (1,274 ) (546 ) (1,877 )
Gain on Tajik farm-out 8,659 - 8,659 -
Foreign exchange (loss) / gain - net (53 ) (112 ) 78 (176 )
Fair value gain / (loss) on derivative financial instrument 462 829 32 (67 )
Profit from jointly controlled entity 131 163 388 101
Net finance costs (833 ) (398 ) (1,515 ) (852 )
Profit / (loss) before taxation 3,943 (4,439 ) 583 (11,147 )
Taxation (1,245 ) (431 ) (2,212 ) (571 )
Profit / (loss) for the period 2,698 (4,870 ) (1,629 ) (11,718 )
Profit / (loss) attributable to:
Shareholders 2,829 (4,811 ) (1,400 ) (11,559 )
Non-controlling interest (131 ) (59 ) (229 ) (159 )
Profit / (loss) for the period 2,698 (4,870 ) (1,629 ) (11,718 )
Earnings/(loss) per share attributable to shareholders
Basic and diluted $0.01 $(0.02 ) $0.00 $(0.04 )
Tethys Petroleum Limited
Condensed Consolidated Statement of Cash Flows
(Unaudited)
For the three and six months ended June 30
(in US dollars)
For the 3 months ended For the 6 months ended
June 30, June 30, June 30, June 30,
2013 2012 2013 2012
$'000 $'000 $'000 $'000
Cash flow from operating activities
Profit / (loss) before taxation for the period 3,943 (4,439 ) 583 (11,147 )
Adjustments for
Share based payments 215 1,274 546 1,877
Net finance cost 833 398 1,515 852
Depreciation, depletion and amortization 3,534 4,755 8,513 7,791
Fair value (gain) / loss on derivative financial instrument (462 ) (829 ) (32 ) 67
Net unrealised foreign exchange gain (67 ) (47 ) (115 ) (12 )
Gain on Tajik farm-out (8,659 ) - (8,659 ) -
Profit from jointly controlled entity (131 ) (163 ) (388 ) (101 )
Movement in deferred revenue 1,056 65 (558 ) (444 )
Net change in non-cash working capital (162 ) (425 ) 1,257 (1,987 )
Cash (used) / generated in operating activities 100 589 2,662 (3,104 )
Corporation tax paid (226 ) - (226 ) -
Net cash (used) / generated in operating activities (126 ) 589 2,436 (3,104 )
Cash flow from investing activities
Interest received 42 (83 ) 92 5
Expenditure on exploration and evaluation assets (279 ) (607 ) (513 ) (1,602 )
Expenditure on property, plant and equipment (771 ) (1,494 ) (1,801 ) (1,708 )
Movement in restricted cash (607 ) 150 (625 ) 411
Investment in jointly controlled entity (4 ) (2 ) (4 ) (5 )
Repayment of loan receivable from jointly controlled entity 400 - 400 -
Proceeds of Tajik farm-out 63,405 - 63,405 -
Movement in advances to construction contractors (954 ) (1,401 ) (912 ) (1,034 )
Movement in value added tax receivable 661 790 1,545 847
Net change in non-cash working capital (1,146 ) (1,121 ) (2,091 ) (2,400 )
Net cash generated / (used) in investing activities 60,747 (3,768 ) 59,496 (5,486 )
Cash flow from financing activities
Proceeds from issuance of borrowings, net of issue costs 3,977 3,509 4,714 9,335
Repayment of borrowings (1,125 ) (251 ) (2,987 ) (6,866 )
Interest paid on borrowings (622 ) (317 ) (1,183 ) (521 )
Proceeds from issuance of equity, net of issue costs 475 - 523 -
Movement in other non-current liabilities (71 ) (68 ) (142 ) (142 )
Net cash generated in financing activities 2,634 2,873 925 1,806
Effects of exchange rate changes on cash and cash equivalents (78 ) 98 (72 ) 10
Net decrease in cash and cash equivalents 63,177 (208 ) 62,785 (6,774 )
Cash and cash equivalents at beginning of the period 1,358 4,180 1,750 10,746
Cash and cash equivalents at end of the period 64,535 3,972 64,535 3,972

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