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During the fourth quarter of 2012, TransGlobe has:
-- Experienced a significant increase in cash flow from operating activities compared with prior quarters due to increased collections on accounts receivable (collected $76.1 million in Egypt and $12.4 million in Yemen in Q4-2012);-- Maintained a strong financial position, reporting a debt-to-funds flow ratio of 0.8 at December 31, 2012;-- Reported net earnings of $34.8 million;-- Achieved record quarterly funds flow from operations of $46.8 million, an increase of 77% from Q4-2011, which was principally due to a 59% increase in sales volumes; and-- Spent $19.8 million on capital programs, which was funded entirely with funds flow from operations.
The accounting for the convertible debentures continued to have a significant impact on important components of the Company's financial statements. The Company reported an increase in net earnings of $23.1 million from the third quarter of 2012, $12.1 million of which was due to:
-- The recording of an unrealized gain on convertible debentures of $2.9 million recognized in the fourth quarter of 2012, combined with an unrealized loss of $4.4 million recognized on the convertible debentures in the third quarter of 2012; and-- An earnings increase of $4.8 million from Q3-2012 to Q4-2012 related to foreign exchange on the convertible debentures.OPERATING RESULTS AND NETBACKDaily Volumes, Working Interest before Royalties and Other (Bopd)Sales Volumes 2012 2011--------------------------------------------------------------------------------------------------------------------------------------------------------Egypt 16,656 10,671Yemen 840 1,461----------------------------------------------------------------------------Total Company 17,496 12,132--------------------------------------------------------------------------------------------------------------------------------------------------------NetbackConsolidated 2012 2011----------------------------------------------------------------------------(000s, except per Bbl amounts) $ $/Bbl $ $/Bbl--------------------------------------------------------------------------------------------------------------------------------------------------------Oil sales 633,992 99.01 449,794 101.58Royalties 316,326 49.40 202,040 45.63Current taxes 88,603 13.84 74,017 16.71Production and operating expenses 52,367 8.18 36,662 8.28----------------------------------------------------------------------------Netback 176,696 27.59 137,075 30.96--------------------------------------------------------------------------------------------------------------------------------------------------------Egypt 2012 2011----------------------------------------------------------------------------(000s, except per Bbl amounts) $ $/Bbl $ $/Bbl--------------------------------------------------------------------------------------------------------------------------------------------------------Oil sales 600,536 98.51 391,884 100.61Royalties 303,651 49.81 176,033 45.20Current taxes 84,935 13.93 66,630 17.11Production and operating expenses 43,247 7.09 27,407 7.04----------------------------------------------------------------------------Netback 168,703 27.68 121,814 31.26--------------------------------------------------------------------------------------------------------------------------------------------------------
