Syntroleum Announces 2005 Financial Results

Syntroleum Corporation (Nasdaq:SYNM) today announced unaudited financial results for the year ended December 31, 2005. The Company reported revenues for the 2005 fiscal year of $7.9 million, resulting from joint research development activities with the United States government and with licensees and from gas-to-liquids ("GTL") fuel sales. Revenues reported for the year ended December 31, 2004 were $6.6 million, which included the sale of catalyst materials in the amount of $5.7 million. The Company reported a net loss for the year ended December 31, 2005 of $41.0 million, or ($0.77) per share. This compares to a net loss of $42.6 million, or ($0.98) per share, for the year ended December 31, 2004. The 2005 net loss is a result of continuing research and development studies; operations and modifications of the Catoosa Demonstration Facility and the Tulsa Pilot Plant to assist with commercial plant development; non-cash equity compensation charges; and non-cash depreciation, depletion, amortization and impairment charges.

The Company's cash and cash equivalents balance at December 31, 2005 was $69.7 million, reflecting the receipt of $81.8 million during the year from the sale of common stock and from option and warrant exercises. This compares to a cash balance of $31.6 million at December 31, 2004. The Company invested $13.7 million in oil and gas properties in Nigeria and other countries related to drilling, land and lease acquisitions, and geological and geophysical evaluations during the year ended December 31, 2005.

"We delivered on our key objectives in 2005, and this year we are poised to capitalize on increasing opportunities presented by this unique energy marketplace," said Jack Holmes, president and CEO of Syntroleum.

The Company elected to focus its activities on strategic initiatives with GTL and CTL potential and, as a result, is in the process of disposing of its domestic oil and gas assets. Losses from domestic oil and gas operations totaled $3.9 million and $0.5 million for the years ended December 31, 2005 and 2004, or ($0.07) and ($0.01) per share, respectively. The impact of these activities has been reflected in our financial results as discontinued operations.

Fourth Quarter
Fourth quarter 2005 revenues were $766 thousand, compared to total revenues of $317 thousand for the fourth quarter of 2004. Fourth quarter 2005 revenues resulted from joint development activities with the United States government and with licensees and from GTL fuel sales. The Company reported a net loss for the fourth quarter of 2005 of $13.3 million, or ($0.24) per share, compared to a net loss of $11.9 million, or ($0.26) per share, for the same period in 2004.

Fourth quarter 2005 operating expenses included $7.8 million of expenditures related to the Company's research, development and engineering programs, including $3.7 million at the Company's Catoosa Demonstration Facility. The Company's fourth quarter 2004 research, development and engineering expenses totaled $5.0 million and included $2.8 million of expenditures at the Catoosa Demonstration Facility. The Catoosa Demonstration Facility is a 70-barrel per day GTL plant constructed jointly by Syntroleum, the U.S. Department of Energy, Integrated Concepts and Research Corporation (ICRC) and Marathon Oil Company, one of the Company's licensees. The plant supplies demonstration fuels for government vehicles and for engine testing.

The Company incurred general, administrative and other costs totaling $6.8 million for the fourth quarter of 2005, including $0.9 million in non-cash equity compensation charges. The Company also incurred $0.9 million in non-cash depreciation, depletion, amortization, and impairment charges during the fourth quarter. General, administrative and other costs were $6.0 million for the fourth quarter of 2004, including $1.2 million in non-cash equity compensation charges. Non-cash depreciation, depletion, amortization, and impairment charges totaled $0.2 million during the fourth quarter of 2004.

Year End
For the year ended December 31, 2005, revenues were $7.9 million, compared to $6.6 million for the same period in 2004. The Company reported a loss from continuing operations for the year ended December 31, 2005 of $37.1 million, or ($0.70) per share, compared to a loss from continuing operations of $42.1 million, or $(0.97) per share, for the year ended December 31, 2004. The Company reported a loss from its discontinued domestic oil and gas business of $3.9 million, or ($0.07) per share, for the year ended December 31, 2005, compared to a loss from the discontinued domestic oil and gas business of $0.5 million, or ($0.01) per share, for the year ended December 31, 2004.

The Company incurred expenses for the year ended December 31, 2005 of $22.4 million related to research, development and engineering programs, including $10.7 million of expenditures at the Catoosa Demonstration Facility, compared to $22.3 million for these activities during 2004, including $13.0 million related to the Catoosa Demonstration Facility.

General, administrative and other expenses for the year ended December 31, 2005 were $27.7 million, including $4.7 million in non-cash equity compensation charges. Depreciation, depletion, amortization, and impairment totaled $4.6 million primarily related to international oil and gas activities. The Company incurred $21.8 million for general, administrative and other costs, including $4.3 million in non-cash equity compensation charges for the year ended December 31, 2004. Non-cash depreciation, depletion, amortization, and impairment charges were $0.6 million for the year ended December 31, 2004.

Conference Call and Operations Update
The Company's year end 2005 conference call will take place Tuesday, February 14, 2006 at 10:00 AM EST, during which Syntroleum's senior management will discuss financial results for the period, progress on the Company's commercial developments and other important activities. A webcast of the call will be available via the Internet by accessing www.syntroleum.com. Listeners should allow a few minutes for registration into the Web site. A replay of this conference call will be available on the Web site under the Syntroleum Investor Relations tab for a period of one year.

Syntroleum Corporation owns a proprietary gas-to-liquids process for converting natural gas into synthetic liquid hydrocarbons. The Company plans to use its GTL technology, as well as other third party gas processing technologies, to develop and participate in oil and gas monetization projects in a number of global locations.
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE


Most Popular Articles


From the Career Center
Jobs that may interest you
United States Midland: Account Rep, Bus Dev
Expertise: Business Development|Marketing|Sales
Location: Midland, TX
 
Cost Accountant
Expertise: Accounting
Location: Midland, TX
 
Facilities Engineering Manager
Expertise: Engineering Manager|Facilities Engineer|Refinery / Plant Operations Supervisor
Location: Lake Charles, LA
 
search for more jobs

Brent Crude Oil : $52.72/BBL 3.31%
Light Crude Oil : $48.51/BBL 3.01%
Natural Gas : $2.89/MMBtu 1.36%
Updated in last 24 hours