BVI-domiciled Orca Exploration Group Inc., focused on natural gas exploration, production, development and marketing in Tanzania, announced financial results for the first quarter of 2014.
At the end of the reported period, ended 31 March 2014, company’s working capital was US$19.1 million – that is 65 per cent decrease as compared to US$54.8 million reported in the first quarter of 2013. This became the result of reclassifying US$59.3 million of TANESCO debt as a long-term receivable. As at 31 March 2014, TANESCO owed to Orca Exploration US$68.6 million. The BVI company served notice to TANESCO and is actively pursuing legal and contractual options available to collect the arrears and arrest the increase in TANESCO receivables.
Earnings of Orca Exploration in the first quarter of 2014 were US$1.6 million or US$0.04 per share diluted, as compared to earnings in the amount of US$2.9 million or US$0.08 per share in the same period of the previous year, and with a loss of US$3.9 million or US$0.11 per share in the fourth quarter of 2013.
In the quarter ended 31 March 2014, gross revenue of the BVI company was US$23.9 million, compared to US$24.6 million in the first quarter of 2013; also, compared to that period, Orca’s share of revenue was down 5 per cent, from US$12.7 million to US$12.1 million. Funds flow from operating activities decreased by 20 per cent to US$7.1 million or US$0.20 per share diluted (US$8.9 million or US$0.25 per share in the first quarter of 2013), as a result of lower net revenues.
As at 31 March 2014, Orca Exploration had US$31.1 million in cash, compared to US$32.6 million at the end of the previous quarter. In addition to strong cash position, the company has no debt, and the cash balance is more than doubled from the previous year.