Advertisement
Minimum alternate tax expense is calculated on accounting income from the D6 Block. Higher depletion rates reduced accounting income and minimum alternate tax expense.
Net Income (Loss)
---------------------------------------------------------------------------- Three months ended Nine months ended Dec 31, Dec 31,(thousands of U.S. dollars) 2012 2011 2012 2011----------------------------------------------------------------------------Funds from operations (non-IFRS measure) 27,917 60,109 101,548 181,250Production and operating expenses (353) (484) (991) (1,501)Depletion and depreciation expense (30,979) (27,055) (112,597) (86,018)Exploration and evaluation expense (61,933) (57,340) (151,232) (116,610)Asset impairment (28,911) (143) (67,830) (74)Gain / (loss) on short-term investments (282) 2,384 (558) (6,184)Share-based compensation expense (1,109) (5,161) (8,011) (17,865)Finance expense (2,531) (2,076) (6,691) (5,826)Unrealized foreign exchange gain (loss) (87) (3,752) 1,427 (7,627)Deferred income tax recovery (expense) 5,559 (6,887) 30,531 (7,071)---------------------------------------------------------------------------- (93,709) (40,405) (214,404) (67,526)----------------------------------------------------------------------------Change in accounting estimate - deferred taxes - - - (57,865)Share-based compensation - impact of option cancellation - - - (13,913)----------------------------------------------------------------------------Net loss (93,709) (40,405) (214,404) (139,304)----------------------------------------------------------------------------
The decrease in funds from operations is described above. Other items affecting net loss are described below.
Depletion and depreciation expense for the three and nine months ended December 31, 2012 increased from the prior periods primarily as a result of higher depletion rates for the D6 Block in India resulting from the revision to the reserve volumes and future costs included in the March 31, 2012 reserve report, partially offset by the impact of lower production.
Exploration and evaluation expense for the nine months ended December 31, 2012 includes costs associated with unsuccessful exploration wells in Indonesia and Trinidad, including wells in the Lhokseumawe block in Indonesia and Block 2(ab) in Trinidad, and directly expensed costs of seismic and other exploration projects, payments that are specified in various production sharing contracts ("PSCs"), branch office costs for all exploration properties, and new venture activities.
In the current quarter, the Company recognized asset impairments for the Lhokseumawe block in Indonesia and Block 2(ab) in Trinidad. In the first quarter of fiscal 2013, the Company recognized an asset impairment of $39 million when it reassessed the recoverable amount of the Qara Dagh Block exploration and evaluation asset in Kurdistan. In November 2012, the company signed an agreement to relinquish its interest in the Qara Dagh block in exchange for proceeds equal to the carrying amount of the asset.
