Harvest Natural Resources Announces 2012 Fourth Quarter and Year-End Results

Harvest Natural Resources Announces 2012 Fourth Quarter and Year-End Results

Harvest Natural Resources, Inc. (NYSE: HNR) today announced 2012 fourth quarter and year-end earnings.
Harvest posted a fourth quarter net loss of $23.1 million, or $0.59 per diluted share, compared with a net loss of $44.3 million, or $1.30 per diluted share, for the 2011 fourth quarter. For the year ended December 31, 2012, Harvest’s net loss was $12.2 million, or $0.33 per diluted share, compared to net income of $56.0 million, or $1.64 per diluted share, for 2011.
The fourth quarter results include exploration charges of $3.6 million, or $0.09 per diluted share, impairment expense relating to Oman and China blocks of $9.3 million, or $0.24 per diluted share, unrealized gain on warrant derivatives of $0.4 million, or $0.01 per diluted share, debt conversion expense of $0.3 million, or $0.01 per diluted share and a loss on extinguishment of debt of $5.4 million, or $0.14 per diluted share. Adjusted for these non-cash items, Harvest’s fourth quarter net loss was $4.9 million, or $0.12 per diluted share.
The 2012 results include exploration charges of $9.1 million, or $0.24 per diluted share, impairment expense relating to Oman and China blocks of $9.3 million, or $0.25 per diluted share and dry hole expense related to the Oman and Indonesian wells of $5.6 million, or $0.15 per diluted share. The current year results also included an unrealized loss on warrant derivatives of $0.6 million, or $0.02 per diluted share, debt conversion expense of $3.6 million, or $0.10 per diluted share, loss on extinguishment of debt of $5.4 million, or $0.14 per diluted share, and other non-operating expenses relating to our strategic alternatives of $2.9 million, or $0.08 per diluted share. Adjusted for these non-cash items, Harvest’s 2012 earnings would have been $24.3 million, or $0.65 per diluted share.
Petrodelta, S.A. (Petrodelta), Harvest’s Venezuelan affiliate, reported fourth quarter operating income, before taxes and non-operating items, of $44.4 million ($14.2 million net to Harvest’s 32 percent equity interest under International Financial Reporting Standards [IFRS]). Petrodelta reported a fourth quarter net loss of $84.2 million ($26.9 million net to Harvest’s 32 percent equity interest under IFRS). After adjustments to Petrodelta’s IFRS earnings, primarily to conform to accounting principles generally accepted in the United States of America (USGAAP), Harvest’s 32 percent share of Petrodelta’s earnings was $6.2 million.
Petrodelta reported operating income, before taxes and non-operating items for the year of $296.1 million ($94.8 million net to Harvest’s 32 percent equity interest under IFRS). Petrodelta reported net income of $86.0 million ($27.5 million net to Harvest’s 32 percent equity interest, under IFRS). After adjustments to Petrodelta’s IFRS earnings, primarily to conform to USGAAP, Harvest’s 32 percent share of Petrodelta’s earnings were $54.2 million, a six percent decrease over 2011.

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