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Isramco’s loss blamed on increase in lease
Posted: 27 March 2006
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From $2,402,000 in Q4 of 2004, Isramco’s revenue plunged down to $612,000 in Q4 of 2005.
The company reported a net loss of $1,832,000 or $0.67 per share for the fourth quarter of 2005 compared to net income $743,000 or $0.29 per share for the same quarter a year earlier.
Revenues for the year ended December 31, 2005 were $7,735,000 compared to revenues of $8,943,000 for 2004. The net loss for 2005 was ($1,132,000) or ($0.42) per share compared to net income of $993,000 or $0.38 per share for 2004.
The loss in 2005 compared to a net income in 2004 is primarily attributable to an increase in lease operation expenses of the wells in the United States, an increase in losses associated with the operation of the Magic 1 cruise line vessel, an increase in impairment of oil and gas assets in the United States, and a decrease in net income of investee affiliates.
In 2005, revenues from oil and gas sales were $3,319,000 compared to $3,174,000 in 2004. Lease operator fees associated with the wells in Israel in 2005 were $977,000 compared to $137,000 in 2004. Lease operation expenses and severance taxes were $1,458,000 in 2005 compared to $1,149,000 in 2004.
Equity in the net income of investee affiliates was $661,000 in 2005 compared to $1,365,000 in 2004, due to a dry hole drilled (Gad 1 well offshore Israel) by an affiliate of the Company.
Posted by Editor Pipeline Magazine
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