Syntroleum Announces Third Quarter 2000 Results
24 October 2000
Syntroleum Announces Third Quarter 2000 Results
TULSA, Okla., Oct. 24 Syntroleum Corporation
today announced financial results for the third quarter ended
September 30, 2000.
The company reported a loss for the quarter of $7.06 million or $.22 per
share on revenue of approximately $748,000. This compares to a loss of
$4.48 million or $.17 per share on revenue of $1.55 million in the third
quarter of 1999. Revenue consisted primarily of approximately $428,000 from
joint development partners and $319,000 from the company's ongoing disposal of
real estate assets. Other income of $2.53 million represents interest paid on
proceeds from the company's recent public offering. Expenses consisted
primarily of $5.11 million for pilot plant, engineering, research and
development activities, and $2.60 million for general and administrative.
"We had a number of positive developments in the third quarter," stated
Mark Agee, Syntroleum president and chief operating officer. "We made
significant progress with our Sweetwater project, finalizing the license and
loan agreements with the Commonwealth of Australia. We also entered into a
letter of intent for $21 million in additional Sweetwater equity capital from
Ivanhoe Energy. These are important steps towards moving Sweetwater to the
construction stage."
Agee went on to say that, "on the licensing front, Ivanhoe expanded its
original volume license to a master license, giving the Canadian exploration
and development company rights to pursue an unlimited number of gas-to-liquids
(GTL) opportunities around the world. On the technology front, we introduced
the commercial availability of Syntroleum's proprietary hydrocracking
technology for our licensees. The offering of this technology moves
Syntroleum to a new level in the GTL arena by making it a full service GTL
technology provider, from synthesis gas production to product upgrading."
Syntroleum Corporation, headquartered in Tulsa, Oklahoma, USA, licenses
its proprietary process for converting natural gas into synthetic crude oil
and transportation fuels. The process is designed for application in plant
sizes ranging from 2,000 barrels per day to more than 100,000 barrels per day.
Current licensees include ARCO (now part of 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. Forward-looking statements include, but are not limited to,
statements relating to the financing and construction of the Syntroleum
Sweetwater project, the development and testing of the Syntroleum Process and
related technologies (including hydrocracking technology) and products, GTL
plants based on the Syntroleum Process (including the development of planned
plants), the economic use of such plants and the continued development of the
Syntroleum Process. When used in this document, the words "believe,"
"expectations," "optimistic" and similar expressions are intended to be among
the statements that identify forward-looking statements. Although Syntroleum
believes that its expectations reflected in these forward-looking statements
are reasonable, such statements involve risks and uncertainties and no
assurance can be given that actual results will be consistent with these
forward-looking statements. Important factors that could cause actual results
to differ from these forward-looking statements include the potential that
commercial-scale GTL plants will not achieve the same results as those
demonstrated on a laboratory or pilot basis or that such plants will
experience technological and mechanical problems, the potential that
improvements to the Syntroleum Process currently under development may not be
successful, the impact on plant economics of operating conditions (including
energy prices), competition, intellectual property risks, Syntroleum's 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
Third Quarter 2000 Earnings* (Unaudited)
Third Quarter Year to Date
2000 1999 2000 1999
Revenue
Joint Development $428 $792 $970 $1,942
Real Estate Sales 319 590 4,353 1,110
Licensing -- -- 2,000 --
Other 1 166 76 491
Total Revenue 748 1,548 7,399 3,543
Cost of Real Estate Sales 159 345 3,390 749
Expenses
R&D/Engineering 5,114 3,199 12,383 7,736
G&A and Other 2,596 2,868 9,249 7,936
Total Expense 7,869 6,412 25,022 16,421
Earnings (loss) from
Operations $(7,121) $(4,864) $(17,623) $(12,878)
Other Income
(Expense) 2,533 387 3,550 1,538
Taxes (2,468) -- (2,468) --
Net Earnings (loss) $(7,056) $(4,477) $(16,541) $(11,340)
Earnings Per Share
Basic and Diluted
Earnings Per Share $(0.22) $(0.17) $(0.57) $(0.42)
Weighted Average
Shares
Outstanding 32,684,703 26,900,052 29,094,101 26,900,052
* All numbers in thousands except earnings per share and shares
outstanding.
Syntroleum Corporation and Subsidiaries
Consolidated Balance Sheets (Unaudited)
For Period For Period
Ended Ended
Sept. 30, Dec. 31,
2000 1999
(thousands) (thousands)
Assets
Total current assets $101,891 $25,439
Total non-current assets 46,261 14,152
Total Assets $148,152 $39,591
Liabilities and Stockholder's Equity
Total current liabilities $9,346 $2,641
Total non-current liabilities 41 94
Long-term Debt 6,498 --
Minority Interests 906 1,024
Deferred Revenue 28,245 11,000
Total Liabilities 45,036 14,759
Total Stockholder's Equity 103,116 24,832
Total Liabilities and Equity $148,152 $39,591