Syntroleum Announces First Quarter 2001
Results
TULSA, Okla., May 1 Syntroleum Corporation
today announced financial results for the first quarter ended March 31, 2001.
The company reported a loss for the first quarter of $6.07 million, or
$.18 per share, on revenue of $1.39 million. This compares to a loss of
$5.35 million or $.20 per share on revenue of $3.88 million in the first
quarter of 2000. Revenue consisted primarily of proceeds from the company's
ongoing disposal of real estate assets. Other income of $1.80 million
represents interest paid on cash balances and foreign currency exchange gains.
Expenses consisted primarily of $4.55 million for pilot plant, engineering and
research and development activities, and $4.05 million for general and
administrative and other.
"The first quarter was one of continuing progress, especially for our
Sweetwater Project," said Mark Agee, Syntroleum's president and chief
operating officer. "During the period, we signed a 13-year
fixed-price agreement with Clough-PGS to provide operations and maintenance
services for the plant. We secured agreements with the Dampier Port
Authority, which provide Syntroleum with fixed-price access to port
facilities, land for storage and related facilities adjacent to the wharf, and
pipeline easements essential to shipment of Sweetwater products. Additionally,
the engineering, procurement and construction (EPC) contract with Tessag is
moving closer to finalization, as we are working through several last minute
design changes that are now being incorporated into the plant design."
Syntroleum Corporation is the developer of a proprietary process for
converting natural gas into synthetic liquid hydrocarbons. The company, in
partnership with others, plans to build specialty chemical plants using its
technology in a number of global locations. Additionally, Syntroleum licenses
its process to oil companies for the manufacture of fuels. Current licensees
include ARCO (now BP), Enron, Ivanhoe Energy, Kerr-McGee, Marathon,
Repsol-YPF, Texaco and the Commonwealth of Australia.
This document includes forward-looking statements as well as historical
information. These forward-looking statements include, but are not limited
to, statements relating to the Syntroleum Process and related technologies,
gas-to-liquids plants based on the Syntroleum Process, including the
Sweetwater plant, anticipated costs to design, construct and operate these
plants, anticipated costs to make products from these plants, the timing of
commencement and completion of the design and construction of these plants,
obtaining required financing for these plants, the economic construction and
operation of gas-to-liquids plants, the value and markets for plant products,
testing, certification, characteristics and use of plant products, the
continued development of the Syntroleum Process (alone or with partners),
anticipated capital expenditures, anticipated revenues, the sale of and costs
associated with our real estate inventory and any other statements regarding
future growth, cash needs, operations, business plans and financial results.
When used in this document, the words "anticipate," "believe," "estimate,"
"expect," "intend," "may," "plan," "project," "should" and similar expressions
are intended to be among the statements that identify forward-looking
statements. Although we believe that the expectations reflected in these
forward-looking statements are reasonable, these kinds of statements involve
risks and uncertainties. Actual results may not be consistent with these
forward-looking statements. Important factors that could cause actual results
to differ from these forward-looking statements include the risks that the
cost of designing, constructing and operating commercial-scale gas-to-liquids
plants will exceed current estimates, the schedule for construction of
commercial-scale gas-to-liquids plants will extend beyond current estimated
schedules, financing for design and construction of commercial-scale
gas-to-liquids plants and our other activities may not be available,
commercial-scale gas-to-liquids plants will not achieve the same results as
those demonstrated on a laboratory or pilot basis, gas-to-liquids plants may
experience technological and mechanical problems, improvements to the
Syntroleum Process currently under development may not be successful, markets
for gas-to-liquids plant products may not develop, plant economics may be
adversely impacted by operating conditions, including energy prices,
construction risks and risks associated with investments and operations in
foreign countries, our ability to implement corporate strategies, competition,
intellectual property risks, our ability to obtain financing and other risks
described in the company's filings with the Securities and Exchange
Commission.
(R)"Syntroleum" is registered as a trademark and service mark in the U.S.
Patent and Trademark Office.
Syntroleum Corporation and Subsidiaries
First Quarter 2001 Earnings* (Unaudited)
2001 2000
1st Quarter 1st Quarter
Revenue
Joint Development $256 $283
Real Estate Sales 1,137 3,538
Other 1 54
Total Revenue 1,394 3,875
Cost of Real Estate Sales 648 3,078
Expenses
R&D/Engineering 4,549 3,153
G&A and Other 4,048 3,197
Total Expense 8,597 6,350
Earnings (loss) from Operations (7,851) (5,553)
Other Income(Expense) 1,795 201
Taxes (17) --
Net Earnings (loss) $ (6,073) $(5,352)
Earnings Per Share
Basic and Diluted Earnings Per Share $(0.18) $(0.20)
Weighted Average Shares Outstanding 33,148 27,202
* All numbers in thousands except earnings per share.
Syntroleum Corporation and Subsidiaries
Consolidated Balance Sheets (Unaudited)
March 31, December 31,
2001 2000
(thousands) (thousands)
Assets
Total current assets $75,414 $87,476
Total non-current assets 53,776 52,402
Total Assets $129,190 $139,878
Liabilities and Stockholder's Equity
Total current liabilities $3,070 $5,754
Long-term debt 655 731
Other non-current liabilities 28 29
Minority interests 2,986 2,936
Deferred revenue 33,643 35,680
Total Liabilities 40,382 45,130
Total Stockholder's Equity 88,808 94,748
Total Liabilities and Equity $129,190 $139,878
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