TransGlobe Energy Corp. (TGA, TGA.TO), an oil and natural gas producer, announced financial results for the fourth quarter, reporting a swing to loss, despite increased revenues.
The Calgary, Canada-based TransGlobe Energy's net loss for the fourth quarter was US$ 719 thousand or US$ 0.01 per share, compared to net income of US$ 4.73 million or US$ 0.08 per share in the prior-year quarter. The company posted comprehensive net income of US$ 3.28 million, compared to US$ 4.67 million in the corresponding quarter of 2006.
Net loss for the fourth quarter resulted from hedged prices being lower than market prices at the end of the reporting period. This is a non-cash event and losses, without hedging, totaled US$ 7.1 million or US$ 0.10 per share.
Quarterly revenues were US$ 22.66 million, up from US$ 17.72 million in the year-ago quarter. Net operating income for the quarter surged to US$ 18.71 million from US$ 11.42 million in the comparable quarter of the prior year.
Oil and gas revenues for the quarter were US$ 47.70 million, compared to US$ 27.03 million in the year-ago quarter. Oil and gas revenues, net of royalties, climbed to US$ 29.34 million from US$ 17.65 million in the same quarter of 2006.
The company posted expenses of US$ 18.09 million, higher than US$ 10.43 million in the same quarter of 2006.
For the full year 2007, the company's net income plunged 51% to US$ 12.80 million or US$ 0.21 per share from US$ 26.20 million or US$ 0.43 per share in the prior year. Comprehensive income for the quarter was US$ 21.36 million, down from US$ 25.77 million in the earlier year.
Revenues for the full year were US$ 80.12 million, compared to US$ 70.30 million last year. Operating income was US$ 60.01 million, compared to US$ 49.86 million in the earlier year.
TransGlobe Petroleum International Inc. or TGPI, a wholly owned subsidiary of TransGlobe Energy Corp., acquired all of the shares of Dublin International Petroleum Ltd and Drucker Petroleum Inc. for US$ 59.0 million, plus working capital adjustments, as at July 1, 2007. On February 5, 2008, TGPI acquired all of the shares of GHP Exploration Ltd. for US$ 40.2 million, plus working capital adjustments, as at September 30, 2007.
TGA is currently trading at $5.20, down $0.17 or 3.17%, on a volume of 0.22 million shares on the Nasdaq.
TGL.TO is currently trading at US$ 5.17, down US$ 0.16 or 3.00%, on a volume of 69,300 shares, on the Toronto exchange.
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