Note: All figures are quoted in U.S. dollars unless
otherwise noted.
CALGARY, May 12, 2014 /CNW/ - Ivanhoe Energy Inc. (TSX:
IE; NASDAQ: IVAN) today reported its financial results for the
first quarter of 2014.
First Quarter Financial Summary
Ivanhoe Energy filed its quarterly financial
report on Form 10-Q with the U.S. Securities and Exchange
Commission and its interim financial statements with the Canadian
Securities Administrators for the quarter ended March 31, 2014.
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Three months
ended Mar. 31, |
(US$000s, except
per share amounts) (unaudited) |
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2014 |
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2013 |
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Net loss from continuing
operations |
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(7,880) |
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(11,975) |
Net loss per share, from
continuing operations* |
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(0.07) |
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(0.09) |
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Net cash used in operating
activities |
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(8,744) |
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(18,586) |
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Capital investments |
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1,003 |
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7,533 |
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Cash and cash equivalents (end of
period) |
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13,611 |
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61,980 |
Restricted cash |
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500 |
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500 |
* Basic and diluted
The Company posted a net loss from continuing
operations for the period ended March 31,
2014 of $7.9 million, which is
$4.1 million lower compared to a net
loss from continuing operations of $12.0
million incurred in the same period of 2013. This decrease
is primarily related to a $5.4
million decrease in general and administrative (G&A)
expenses and a $0.7 million increase
in foreign currency exchange gains.
Net Cash Used in Operating Activities
Net cash used in operating activities in the
first quarter of 2014 was $8.7
million, which was $9.9
million lower compared to the net cash used in operating
activities of $18.6 million in the
first quarter of 2013. The decrease was primarily due to
$5.1 million less in cash G&A
expenses, which are explained below. The remaining variance
includes $3.9 million for transaction
and other closing costs that had been part of the 2013 results
related to the discontinued operations in China and $0.9
million for other net changes impacting operating
activities.
General and Administrative Expenses
The Company incurred G&A expenses of
$7.3 million in the first quarter of
2014, which was $5.4 million lower
compared to the $12.7 million
incurred in the same period of 2013. The decrease is primarily due
to $1.2 million in savings due to no
management bonuses, $1.2 million less
spent on legal fees, $1.0 million
less on human resource related costs and $2.0 million less on business expenses and
other G&A related items. The Company continues to restructure
the business to further reduce G&A spending.
Capital Resources
At March 31, 2014,
Ivanhoe Energy had approximately $13.6
million in cash and cash equivalents. The Company continues
its efforts to significantly reduce G&A spending and is
pursuing new funds through potential asset divestiture, strategic
alliances and raising new capital.
During the first quarter of 2014 Ivanhoe Energy
applied to the NASDAQ stock exchange for an additional compliance
period of 180 days to regain compliance of the minimum bid price
requirement. This extension was granted and will expire on
September 2, 2014.
Heavy-to-Light (HTL)
Ivanhoe Energy is confident that HTL is ready to
be deployed at a commercial scale. The Company's extensive
technical and business modelling work over the last 12-18 months
provides support to our current business development efforts in
Colombia, Mexico, the Middle
East and North America.
Project Highlights
Tamarack - Canada
Ivanhoe suspended activity on its current
Tamarack oil sands project application but is considering a few
avenues to extract value from the Tamarack lease. One such avenue
involves using new technologies. By working collaboratively
with the Alberta Energy Regulator the Company expects to shorten
the time required to receive approval for a smaller scale
project.
Block 20 - Ecuador
Ivanhoe Energy continues to make progress in its discussions
with the Ecuadorian Government and the potential partner. The
Company remains optimistic about finalizing the new consortium
contract.
Ivanhoe Energy is an independent international heavy oil
exploration and development company focused on pursuing long-term
growth in its reserves and production using advanced technologies,
including its proprietary heavy oil upgrading process
(HTL®). Core operations are in Canada, United
States, and Ecuador, with
business development opportunities worldwide. Ivanhoe Energy trades
on the Toronto Stock Exchange with the ticker symbol IE and on the
NASDAQ Capital Market with the ticker symbol IVAN. For more
information about Ivanhoe Energy Inc. please visit
www.ivanhoeenergy.com.
FORWARD-LOOKING STATEMENTS: This document
includes forward-looking statements, including forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include, but
are not limited to the potential for commercialization and future
application of the heavy oil upgrading technology and other
technologies, statements relating to the continued advancement of
Ivanhoe Energy's projects, statements relating to the timing and
amount of proceeds of agreed upon and contemplated disposition
transactions, statements relating to anticipated capital
expenditures, statements relating to the timing and success
of regulatory review applications, and other statements which are
not historical facts. When used in this document, the words such as
"could," "plan," "estimate," "expect," "intend," "may,"
"potential," "should," and similar expressions relating to matters
that are not historical facts are forward-looking statements.
Although Ivanhoe Energy believes that its expectations reflected in
these forward-looking statements are reasonable, such statements
involve risks and uncertainties and no assurance can be given that
actual results will be consistent with these forward-looking
statements. Important factors that could cause actual results
to differ from these forward-looking statements include the
potential that the Company's projects will experience technological
and mechanical problems, new product development will not proceed
as planned, the HTL® technology to upgrade bitumen and
heavy oil may not be commercially viable, geological conditions in
reservoirs may not result in commercial levels of oil and gas
production, the availability of drilling rigs and other support
services, uncertainties about the estimates of reserves, the risk
associated with doing business in foreign countries, environmental
risks, changes in product prices, our ability to raise capital as
and when required, our ability to complete agreed upon and planned
asset dispositions, competition and other risks disclosed in
Ivanhoe Energy's 2013 Annual Report on Form 10-K filed with the
U.S. Securities and Exchange Commission on EDGAR and the Canadian
Securities Commissions on SEDAR.
SOURCE Ivanhoe Energy Inc.