HOUSTON, March 24 - Isramco, Inc. (Nasdaq: ISRL) reported today revenues for the fourth quarter ended December 31, 2005 of $612,000 compared to revenues of $2,402,000 the fourth quarter a year ago. 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.
The number of outstanding shares was 2,717,691 at December 31, 2005 and 2,659,853 at December 31, 2004.
The Company's financial statement information is summarized below:
(In thousands, except for per share income)
Three months ended Year Ended
December 31 December 31
2005 2004 2005 2004
STATEMENT OF OPERATIONS
Revenues $612 $2,402 $7,735 $8,943
Total expenses (2,754) (2,249) (8,827) (7,374)
Net income (loss) (1,832) 743 (1,132) 993
Earnings (loss) per
common share -
basic and diluted (0.67) 0.29 (0.42) 0.38
Weighted average shares
issued and outstanding:
Basic 2,717,691 2,659,853 2,709,355 2,659,853
Diluted 2,717,691 2,640,230 2,709,355 2,640,751
CASH FLOW DATA
Net cash provided by
Operating activities 1,545 1,576
Net cash provided
By financing activities (741) (8,195)
Net cash provided by
(used in)
Investing activities (1,642) 6,277
BALANCE SHEET DATA
Current assets 7,522 9,260
Total Assets 38,615 41,358
Total Liabilities 10,122 11,322
Total Shareholders Equity 28,493 30,036
FORWARD-LOOKING STATEMENTS
ALL STATEMENTS CONTAINED HEREIN, AS WELL AS ORAL STATEMENTS THAT MAY BE MADE BY THE COMPANY OR BY OFFICERS, DIRECTORS OR EMPLOYEES OF THE COMPANY ACTING ON THE COMPANY'S BEHALF, THAT ARE NOT STATEMENTS OF HISTORICAL FACT, CONSTITUTE "FORWARD-LOOKING STATEMENTS" AND ARE MADE PURSUANT TO THE SAFE- HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT COULD CAUSE THE ACTUAL RESULTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE HISTORICAL RESULTS OR FROM ANY FUTURE RESULTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH RISKS AND UNCERTAINTIES ARE OUTLINED IN THE COMPANY'S ANNUAL REPORT ON FORM 10-K FOR 2005, ITS QUARTERLY REPORTS ON FORM-10-Q, AND SUCH OTHER DOCUMENTS AS ARE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FROM TIME TO TIME. THE COMPANY IS NOT OBLIGATED TO REVISE OR UPDATE ANY FORWARD-LOOKING STATEMENTS IN ORDER TO REFLECT EVENTS OR CIRCUMSTANCES THAT MAY ARISE AFTER THE DATE OF THIS RELEASE.
