2013-08-14

Second Quarter 2013 Financial Results

GRAND CAYMAN, CAYMAN ISLANDS -- (Marketwired) -- 08/14/13 -- Tethys Petroleum Limited ("Tethys" or "the Company") (TSX:TPL)(LSE:TPL) today announced its second quarter 2013 financial results. The Company reports financial results in accordance with International Financial Reporting Standards ("IFRS").

Q2 Financial Highlights

Increase in earnings (EBITDA adjusted for share based payments) to USD8.0 million from USD1.1 million in 2012
Profit before tax of USD3.9 million (Q2 2012: Loss of USD4.4 million)
Administrative costs down 12% at USD4.9 million (Q2 2012: USD5.5 million)
Six Months 2013 Financial Highlights

Increase in earnings (EBITDA adjusted for share based payments) to USD10.7 million compared with negative USD0.5 million in 2012
Profit before tax of USD0.6 million (2012: loss of USD11.1 million)
Revenue from oil and gas sales up 29% at USD21.5 million (2012: USD16.7 million)
Administrative costs down 7% at USD9.6 million (2012: USD10.4 million)  

The full Q2 Results together with a Management Discussion & Analysis have been filed with the Canadian securities regulatory authorities. Copies of the filed documents may be obtained via SEDAR at www.sedar.com or on Tethys' website at www.tethyspetroleum.com. The increase in profit is primarily due to USD8.7 million of the gain arising from the Tajik farm-out in which USD63.4 million was received on June 18th, USD54.7 million being credited against non current assets and USD8.7 million booked to profit. The summary financial statements are attached to this press release.

The above highlights along with other financial details will be further discussed in a scheduled conference call. Details of the conference call can be found below:

Conference Call:

A conference call will be held at 8:00 AM Eastern Standard Time 1:00 PM British Summer Time on Thursday, August 15, 2013. The North American conference call number is 877 546 5020 and the outside North America conference call number is +1 857 244 7552. The conference call code to use is 80661286. Please call in about 10 minutes before the starting time in order to be patched into the call.

Webcast:

The call is being webcast and can be accessed at:

http://www.media-server.com/m/acs/cef7cf7f74faa9a57a9e7fe7731124c3

Tethys is focused on oil and gas exploration and production activities in Central Asia and the Caspian Region with activities currently in the Republics of Kazakhstan, Tajikistan and Uzbekistan. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.

Note on non GAAP measures: "EBITDA adjusted for share based payments" is a non GAAP measure and is defined as Earnings before Interest, Tax, Depreciation, Amortization and share based payments. See the Management Discussion and Analysis for Q2 for a reconciliation to Profit / (Loss).

Tethys Petroleum Limited
Condensed Consolidated Statement of Financial Position
(Unaudited)
(in US Dollars)
As at
June 30, 2013       December 31, 2012
$'000       $'000
Non-current assets              
Property, plant and equipment       113,258     121,097
Intangible assets       54,438      107,374
Restricted cash     2,168       1,543
Prepayments and other receivables       5,812       6,444
Investment in jointly controlled entities       1,120       1,116
176,796     237,574
Current assets              
Inventories     1,583       2,046
Trade and other receivables     8,051       7,703
Loan receivable from jointly controlled entity      2,482       2,403
Cash and cash equivalents       64,535      1,750
Restricted cash     477     477
77,128      14,379
Total assets        253,924     251,953
Equity attributable to shareholders             
Share capital       28,756      28,671
Share premium       307,295     306,725
Other reserves      42,291      41,705
Accumulated deficit     (166,785)       (165,385)
Non-controlling interest        8,208       8,437
Total equity        219,765     220,153
Non-current liabilities             
Financial liabilities - borrowings      7,153       3,688
Deferred taxation       4,926       2,912
Trade and other payables        287     351
Asset retirement obligations        175     524
12,541      7,475
Current liabilities             
Financial liabilities - borrowings      11,736      13,625
Derivative financial instruments - warrants     815     523
Asset retirement obligations        209     -
Deferred revenue        1,155       1,713
Trade and other payables        7,552       8,231
Current tax     151     233
21,618      24,325
Total liabilities               
34,159      31,800
Total shareholders' equity and liabilities              
253,924     251,953
Tethys Petroleum Limited
Condensed Consolidated Statement of Comprehensive Income
(Unaudited)
For the six months ended June 30
(in US Dollars)
For the 3 months ended      For the 6 months ended  
June 30,        June 30,        June 30,        June 30,    
2013        2012        2013        2012    
$'000       $'000       $'000       $'000   
(re-presented)              (re-presented)  
Sales and other revenues        8,951       10,204      21,504      16,691  
Sales expenses      (880    )   -       (1,525  )   -   
Production expenses     (3,063  )   (2,930  )   (7,125  )   (5,840  )
Depreciation, depletion and amortisation        (3,534  )   (4,755  )   (8,513  )   (7,791  )
Business development expenses       (767    )   (611    )   (1,269  )   (984    )
Administrative expenses     (4,915  )   (5,555  )   (9,585  )   (10,352 )
Share based payments        (215    )   (1,274  )   (546    )   (1,877  )
Gain on Tajik farm-out      8,659       -       8,659       -   
Foreign exchange (loss) / gain - net        (53 )   (112    )   78      (176    )
Fair value gain / (loss) on derivative financial instrument     462     829     32      (67 )
Profit from jointly controlled entity       131     163     388     101 
Net finance costs       (833    )   (398    )   (1,515  )   (852    )
Profit / (loss) before taxation     3,943       (4,439  )   583     (11,147 )
Taxation        (1,245  )   (431    )   (2,212  )   (571    )
Profit / (loss) for the period      2,698       (4,870  )   (1,629  )   (11,718 )
Profit / (loss) attributable to:                                    
Shareholders        2,829       (4,811  )   (1,400  )   (11,559 )
Non-controlling interest        (131    )   (59 )   (229    )   (159    )
Profit / (loss) for the period      2,698       (4,870  )   (1,629  )   (11,718 )
Earnings/(loss) per share attributable to shareholders                                  
Basic and diluted       $0.01       $(0.02  )   $0.00       $(0.04  )
Tethys Petroleum Limited
Condensed Consolidated Statement of Cash Flows
(Unaudited)
For the three and six months ended June 30
(in US dollars)
For the 3 months ended          For the 6 months ended  
June 30,            June 30,            June 30,            June 30,    
2013            2012            2013            2012    
$'000           $'000           $'000           $'000   
Cash flow from operating activities                                             
Profit / (loss) before taxation for the period      3,943           (4,439  )       583         (11,147 )
Adjustments for                                             
Share based payments        215         1,274           546         1,877   
Net finance cost        833         398         1,515           852 
Depreciation, depletion and amortization        3,534           4,755           8,513           7,791   
Fair value (gain) / loss on derivative financial instrument     (462    )       (829    )       (32 )       67  
Net unrealised foreign exchange gain        (67 )       (47 )       (115    )       (12 )
Gain on Tajik farm-out      (8,659  )       -           (8,659  )       -   
Profit from jointly controlled entity       (131    )       (163    )       (388    )       (101    )
Movement in deferred revenue        1,056           65          (558    )       (444    )
Net change in non-cash working capital      (162    )       (425    )       1,257           (1,987  )
Cash (used) / generated in operating activities     100         589         2,662           (3,104  )
Corporation tax paid        (226    )       -           (226    )       -   
Net cash (used) / generated in operating activities     (126    )       589         2,436           (3,104  )
Cash flow from investing activities                                             
Interest received       42          (83 )       92          5   
Expenditure on exploration and evaluation assets        (279    )       (607    )       (513    )       (1,602  )
Expenditure on property, plant and equipment        (771    )       (1,494  )       (1,801  )       (1,708  )
Movement in restricted cash     (607    )       150         (625    )       411 
Investment in jointly controlled entity     (4  )       (2  )       (4  )       (5  )
Repayment of loan receivable from jointly controlled entity     400         -           400         -   
Proceeds of Tajik farm-out      63,405          -           63,405          -   
Movement in advances to construction contractors        (954    )       (1,401  )       (912    )       (1,034  )
Movement in value added tax receivable      661         790         1,545           847 
Net change in non-cash working capital      (1,146  )       (1,121  )       (2,091  )       (2,400  )
Net cash generated / (used) in investing activities     60,747          (3,768  )       59,496          (5,486  )
Cash flow from financing activities                                             
Proceeds from issuance of borrowings, net of issue costs        3,977           3,509           4,714           9,335   
Repayment of borrowings     (1,125  )       (251    )       (2,987  )       (6,866  )
Interest paid on borrowings     (622    )       (317    )       (1,183  )       (521    )
Proceeds from issuance of equity, net of issue costs        475         -           523         -   
Movement in other non-current liabilities       (71 )       (68 )       (142    )       (142    )
Net cash generated in financing activities      2,634           2,873           925         1,806   
Effects of exchange rate changes on cash and cash equivalents       (78 )       98          (72 )       10  
Net decrease in cash and cash equivalents       63,177          (208    )       62,785          (6,774  )
Cash and cash equivalents at beginning of the period        1,358           4,180           1,750           10,746  
Cash and cash equivalents at end of the period      64,535          3,972           64,535          3,972   

North America & Europe
Tethys Petroleum Limited
Sabin Rossi
Vice President Investor Relations
srossi@tethyspetroleum.com
Asia Pacific
Tethys Petroleum Limited
Chris Justice
Communications Manager - Asia
cjustice@tethyspetroleum.com
FTI Consulting - London
Ben Brewerton / Natalia Erikssen
+44 207 831 3113
Tethys Petroleum Limited
info@tethyspetroleum.com
www.tethyspetroleum.com
Mobile site: http://m.tethyspetroleum.com

Source: Tethys Petroleum Limited