GLOBAL ANNOUNCES NINE MONTH RESULTS
GLOBAL ANNOUNCES NINE MONTH RESULTS HOUSTON, Nov. 15 /PRNewswire/ -- Global Natural Resources Inc.
(NYSE: GNR) today reported a net loss of $17.1 million or $.73 per share on revenues of $46.5 million for the nine months ended Sept. 30, 1991. The 1991 net loss included certain non-cash losses of approximately $15.5 million. The results for 1991 compares to a net income of $4.9 million or $.22 per share on revenues of $37.4 million for the first nine months in 1990. The 1990 results included a $4.6 million liquidating distribution from a 47 percent owned real estate investment trust. Although no distribution has been received during the first nine months of 1991, the company has been notified that a distribution of $3,040,000 will be received from the trust in late November 1991.
For the three months ended Sept. 30, 1991, the net loss was $3.0 million or $.13 per share compared with net income of $300,000 or $0.01 per share for the same period in 1990. Total revenues were $14.1 million for the quarter ended Sept. 30, 1991, compared with revenues of $15.1 million for the same quarter in 1990. The loss for the three months ended Sept. 30, 1991 included certain non-cash losses of approximately $2.9 million. Cash flow from operations before changes in working capital and other long-term liabilities was $13.2 million for the first nine months of 1991 compared to $16.1 million for the comparable 1990 period. Cash provided by operating activities was $7.4 million for the nine months ended Sept. 30, 1991, compared to $25.7 million for the same period in 1990. Cash flow from operating activities for the first nine months of 1991 included reductions of payables and other assets of $8.6 million and an increase in accounts receivable of $2.8 million. As of Sept. 30, 1991, the company has completed sales of properties with proved reserves of 1.8 mmbl of oil and 5.4 bcf of gas and has received proceeds from those sales of $12.5 million. The company recorded non-cash losses from these sales of $12.6 million. The company has also entered into an agreement to sell another property with proved reserves of 120 mbl of oil and 4.1 bcf of gas for $4.3 million. The company will recognize a minimal gain from this transaction. These sales when completed will represent approximately 19.9 percent of the company's domestic and 11.0 percent of its total proved reserves. In addition, the company is currently seeking purchasers for additional properties with proved reserves at January 1991 of up to .9 mmbl of oil and 17.1 bcf of gas. These properties represent approximately 21.4 percent of the company's domestic and 11.8 percent of its total proved reserves at Jan. 1, 1991. While no agreements have been finalized for the sale of these additional properties, the company anticipated that these sales could result in additional significant financial statement losses in future periods. The company cannot estimate when such losses might occur. The decision to sell properties was influenced by the company's intention to emphasize foreign operations and to have a more concentrated U.S. asset base, while significantly reducing administrative costs. The company also announced that the rate at which interest accrues on its $50 million convertible subordinated notes held by the Prudential Insurance Company of America has been reduced to 7.75 percent from 9.75 percent as a result of the company's stock trading above a specified level for 20 consecutive days. Assuming the notes were to remain outstanding until their scheduled maturity in 1999, this reduction would result in the company realizing a saving in interest costs of approximately $20 million over the life of the notes. The $5.2 million of interest previously accrued, but not paid, will be amortized over the remaining life of the notes. Global Natural Resources Inc. is a Houston-based energy company engaged in the exploration, development and production of oil and gas in North America. The company also owns an interest in long-term oil and gas production sharing contracts in Indonesia and has joint venture projects in Tatarstan-USSR and Argentina. GLOBAL NATURAL RESOURCES INC. Condensed Consolidated Balance Sheets Unaudited (Dollars in Thousands) Assets 9/30/91 12/31/90 Cash and cash equivalents $34,941 $33,999 Other current assets 13,597 16,248 Total current assets 48,538 50,247 Properties and equipment, net 90,838 115,940 Other assets 14,579 13,029 Total $153,955 $179,216 Liabilities and shareholders' equity Current liabilities $10,932 $18,610 Long-term debt 50,331 50,167 Long-term interest 5,208 4,105 Other liabilities 1,010 2,964 Minority-interest in net assets of partnership 893 1,090 Common stock subject to put 825 1,040 Shareholders' equity 84,756 101,240 Total $153,955 $179,216 GLOBAL NATURAL RESOURCES INC. Unaudited Operating Results (Dollars In Thousands Except Per Share Amounts) Periods ended Three Months Nine Months Sept. 30 1991 1990 1991 1990 Total revenues $14,109 $15,081 $46,526 $37,350 Income (loss) from continuing operations before income tax expense $(1,336) $1,479 $(11,565) $8,950 Net income (loss) before extraordinary item $(2,981) $232 $(17,128) $3,821 Net income (loss) $(2,981) $300 $(17,128) $4,925 Net income (loss) before extraordinary item per share $(.13) $.01 $(.73) $.17 Net income (loss) per share $(.13) $.01 $(.73) $.22 Weighted average shares outstanding 23,517,475 22,373,275 23,489,508 22,373,275 -0- 11/15/91 /CONTACT: Eric Lynn Hill of Global Natural Resources, 713-880-5464/ (GNR) CO: Global Natural Resources Inc. ST: Texas IN: OIL SU: ERN SM -- NY060 -- 1581 11/15/91 13:09 EST
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|Date:||Nov 15, 1991|
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