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BOW VALLEY ANNOUNCES 1991 NET INCOME OF $10.1 MILLION BEFORE CEILING TEST WRITE DOWN

 BOW VALLEY ANNOUNCES 1991 NET INCOME OF $10.1 MILLION
 BEFORE CEILING TEST WRITE DOWN
 CALGARY, Alberta, Feb. 14 /PRNewswire/ -- Bow Valley Industries Ltd. (AMEX: BVI, Toronto, Montreal: BVI) announced today that operating revenues for the three months ended Dec. 31, 1991 were $65.9 million, compared with $114.5


million in the fourth quarter of 1990, reflecting lower production volumes and product prices. Oil prices during the fourth quarter of 1991 were 40 percent less than in the same period in 1990, when oil prices were unusually high following Iraq's invasion of Kuwait. Funds generated from operations for the quarter were $36.7 million compared with $72.8 million generated in the fourth quarter of 1990. Total operating revenues for the year ended Dec. 31, 1991 were $267.0 million, compared with $350.8 million in 1990. Funds generated from operations during 1991 were $147.4 million, a decrease of $70.7 million from the previous year. The company recorded a net loss during the fourth quarter of 1991 of $267.0 million, compared with net income of $14.7 million earned in the same period of 1990, mainly because of the ceiling test write down of $268.8 million announced in late January 1992. For the year ended Dec. 31, 1991, the net loss amounted to $258.7 million, compared with net income in 1990 of $49.7 million. Prior to the ceiling test write down, net income for the year amounted to $10.1 million in 1991.
 The annual ceiling test, required under generally accepted accounting principles in Canada, measures expected future net revenues using constant prices determined on the last day of the calendar year and requires that any shortfall from the recorded value of the underlying assets be written-off. Substantially all of the $268.8 million write down pertained to Canadian operations. The book values of Bow Valley's assets in the United Kingdom and Indonesia were not impaired as there is a significant surplus of future net revenues over book values in these jurisdictions.
 Daily oil production for the fourth quarter of 1991 averaged 28,378 barrels, compared with 35,315 barrels during the corresponding period of 1990, the decrease being primarily due to natural productivity declines. During the fourth quarter, Brae production in the North Sea averaged 13,771 barrels per day, down from 19,022 barrels per day in 1990, with the decline partially attributable to maintenance work and disappointing drilling results at South Brae. Oil production in Indonesia averaged 9,716 barrels per day in the fourth quarter, compared with 10,543 barrels per day for the same quarter of 1990. Average Canadian oil production during the quarter was 4,187 barrels per day, compared with 4,877 barrels per day produced in the same period last year. Canadian gas production for the quarter was 171.1 MMcf per day, down approximately 6 percent from the prior year as a result of reduced demand.
 Bow Valley's average oil price for the quarter ended Dec. 31, 1991 was $21.24 per barrel, compared with $35.58 per barrel for the corresponding quarter in 1990. The average price for natural gas for the quarter was $1.43 per Mcf compared with $1.53 per Mcf in 1990, reflecting a continued oversupply of natural gas in the North American market.
 Capital expenditures for 1991 amounted to $199.7 million, compared with $187.8 million in 1990. Oil and gas exploration expenditures were $71.9 million, and oil and gas development expenditures were $116.6 million. The East Brae development program, which accounted for $73.2 million of the 1991 oil and gas development expenditures, is progressing on schedule with first production expected in late 1993.
 BOW VALLEY INDUSTRIES LTD.
 Supplemental Financial Information
 Three Months 12 Months
 Ended Dec. 31, Ended Dec. 31,
 1991 1990 1991 1990
 Financial highlights
 (Canadian dollars -
 millions, except per
 share data)
 Operating revenue $65.9 $114.5 $267.0 $350.8
 Funds generated from
 operations $36.7 $72.8 $147.4 $218.1
 Net income (loss) ($267.0) $14.7 ($258.7) $49.7
 Per common share (a)
 Net income (loss) ($3.31) $0.15 ($3.31) $0.47
 Funds generated from
 operations $0.42 $0.87 $1.67 $2.55
 Capital expenditures $48.6 $53.8 $199.7 $187.8
 Production highlights
 Oil (barrels per day)
 Canada 4,187 4,877 4,314 4,863
 United Kingdom 13,771 19,022 14,430 17,983
 Indonesia 9,716 10,543 10,013 10,337
 Other 704 873 654 924
 Total 28,378 35,315 29,411 34,107
 Weighted average
 price (per barrel) $21.24 $35.58 $21.41 $25.81
 GAS (MMcf per day)
 Canada 171.1 181.3 166.1 173.7
 Weighted average
 price (per Mcf) $1.43 $1.53 $1.46 $1.51
 (a) The per common share statistics are based upon the weighted average number of common shares and common share equivalents outstanding (1991 - 81,460,000; 1990 - 80,997,000) and are calculated after provision for cumulative dividends on all series of redeemable preferred shares (1991, three months - $2.6 million, 12 months - $11.3 million; 1990, three months - $2.9 million, 12 months - $11.9 million). Non- redeemable convertible preferred shares have been treated as common share equivalents.
 -0- 2/14/92
 /CONTACT: E.J. Lambert of Bow Valley Industries, 403-261-6160/
 (BVI) CO: Bow Valley Industries Ltd. ST: Alberta IN: OIL SU: ERN


DM -- LA020 -- 0445 02/14/92 19:13 EST
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