Orca Exploration Group Inc. (“Orca” or “the Company” and includes its subsidiaries and affiliates) today announces it has filed its condensed consolidated interim financial statements and management’s discussion and analysis for the three month period ended March 31, 2020 with the Canadian securities regulatory authorities. All amounts are in United States dollars unless otherwise stated.
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(1) Operating netback and adjusted funds flow from operations are non-GAAP financial measures. See Non-GAAP Measures.
Financial and Operating Highlights for the Three Months Ended March 31, 2020
THREE MONTHS ENDED MARCH 31 | % CHANGE | |||
(Expressed in $’000 unless indicated otherwise) | 2020 | 2019 | Q1/20 vs Q1/19 |
|
OPERATING | ||||
Daily average gas delivered and sold (MMcfd) | 56.3 | 61.3 | (8 | )% |
Industrial | 12.2 | 11.6 | 5 | % |
Power | 44.1 | 49.7 | (11 | )% |
Average price ($/mcf) | ||||
Industrial | 7.47 | 7.97 | (6 | )% |
Power | 3.46 | 3.43 | 1 | % |
Weighted average | 4.33 | 4.29 | 1 | % |
Operating netback ($/mcf) (1) | 2.39 | 2.48 | (4 | )% |
FINANCIAL | ||||
Revenue | 17,715 | 19,936 | (11 | ) |
Net income attributable to shareholders | 12,645 | 2,775 | 356 | |
per share – basic and diluted ($) | 0.39 | 0.08 | 388 | |
Net cash flows from operating activities | 827 | 13,240 | (94 | ) |
per share – basic and diluted ($) | 0.03 | 0.38 | (92 | ) |
Adjusted funds flow from operations (1) | 7,569 | 9,063 | (16 | ) |
per share – basic and diluted ($) | 0.23 | 0.26 | (12 | ) |
Capital expenditures | 489 | 1,092 | (55 | ) |
AS AT | ||||
MARCH 31, 2020 | DECEMBER 31, 2019 | % CHANGE | ||
Working capital (including cash) | 82,884 | 106,972 | (23 | ) |
Cash and cash equivalents | 71,588 | 93,899 | (24 | ) |
Investments in short-term bonds | 26,482 | 44,756 | (41 | ) |
Long-term loan | 54,107 | 54,057 | 0 | |
Outstanding shares (‘000) | ||||
Class A | 1,750 | 1,750 | 0 | |
Class B | 24,865 | 32,557 | (24 | ) |
Total shares outstanding | 26,615 | 34,307 | (22 | ) |
Weighted average Class A and Class B Shares (‘000) | 32,702 | 34,931 | (6 | ) |
(1) Adjusted funds flow from operations and operating netback are non-GAAP financial measures which may not be comparable to other companies. Please refer to non-GAAP financial measures below. Certain prior year amounts for adjusted funds flow from operations have been reclassified to conform with the current year presentation.
Abbreviations
Mcf | thousand standard cubic feet |
MMcfd | million standard cubic feet per day |
Nigel Friend, Chief Executive Officer, commented:
“Despite the pandemic, Tanzania remains heavily reliant on the stable supply of natural gas, to ensure not only its electricity generation but also its industrial output as the country seeks to minimise the economic fallout of the virus. Orca remains focused on the welfare of its people and those working with us, so continue to adhere to all of the necessary safety precautions and to maintaining the significant social distancing measures that we have introduced to our operations. We are committed to ensuring not only the safety of employees, but also that there is no disruption to gas production operations at this critical time for Tanzania. To date, this has been successful, and we remain extremely vigilant.”
The complete Interim Consolidated Financial Statements and Notes and Management’s Discussion & Analysis may be found on the Company’s website www.orcaexploration.com or on the Company’s profile on SEDAR at www.sedar.com.
Annual General Meeting & Executive Compensation Disclosure
Orca is also announcing the expected timing of holding its annual general meeting of shareholders in 2020 (the “AGM“) and the filing of its executive compensation disclosure due to the COVID-19 pandemic.
Orca expects to hold its AGM prior to the end of December, 2020 at a time when COVID-19 travel restrictions have been relaxed.
Orca is relying on the blanket relief provided by the TSX Venture Exchange, the Canadian Securities Administrators and Alberta Securities Commission Blanket Order 51-518 – Temporary Exemptions from Certain Requirements to File or Send Securityholder Materials with respect to its obligation to file a statement of executive compensation within 180 days of Orca’s year end, as set out in section 9.3.1(2.2) of National Instrument 51-102 – Continuous Disclosure Obligations, and will include such statement of executive compensation in the information circular to be mailed to securityholders and filed on SEDAR in connection with its AGM.
The Company confirms that its annual financial statements, related management’s discussion and analysis and certifications for the year ended December 31, 2019 were filed on April 28, 2020, copies of which are available on SEDAR at www.sedar.com.
Orca Exploration Group Inc.
Orca Exploration Group Inc. is an international public company engaged in natural gas exploration, development and supply in Tanzania through its subsidiary PanAfrican Energy Tanzania Limited. Orca trades on the TSX Venture Exchange under the trading symbols ORC.B and ORC.A.
For further information please contact:
Nigel Friend Chief Executive Officer +44-7798-502316 nfriend@orcaexploration.com |
Blaine Karst Chief Financial Officer +44-7471-902734 bkarst@orcaexploration.com |