Royale Earns Third Quarter Profit and Eliminates L
Post# of 301275
SAN DIEGO, Oct. 21, 2013 (GLOBE NEWSWIRE) -- Royale Energy, Inc. (Nasdaq: ROYL ) today announced it has earned a Profit of $593,567 or 4 cents per share, for the three months ending September 30, 2013. This represents an improvement of $1,418,752 over the prior year loss of $825,185. Year to date operations bring the company to a Net Income of $1,143,365 or 8 cents per share in 2013 over a loss of $3,508,764 in 2012, showing an improvement of $4,652,129.
Total Revenue increased from $553,647 in the third quarter 2012 to $3,129,656 in 2013, a 465% improvement. Revenue from the Sale of Oil & Gas rose 29% to $498,838 for the third quarter of 2013 compared to $387,477 for prior year's quarter.
Also contributing to increased Revenue, the company recognized $345,547 for the Sale of Assets relating to additional acreage added to the Rampart agreement relating to our Alaskan North Slope acreage. Royale continued to improve its margins by the reduction of expenses, bringing Total Expenses down by 4.8% and General & Administrative Expenses down by 18.5% for the nine months ended September 30, 2013 as compared to the same period in 2012.
In addition to the improvements on the Statement of Operations, the company also improved its Balance Sheet with the elimination of all Long-term debt.
"The company has executed a successful turnaround with reduced expenses and elimination of long term debt, combined with increased production from new wells and City-gate prices at $4.00 per MCF," said Donald Hosmer, Royale Energy's Co-CEO and Co-President.
"While we are happy to have returned to profitability we remain confident in the potential we hold in our Alaska acreage as we stand on the threshold of beginning operations," said Stephen Hosmer, Royale Energy's Co-CEO and Co-President.
Forward Looking Statements
In addition to historical information contained herein, this news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, subject to various risks and uncertainties that could cause the company's actual results to differ materially from those in the "forward-looking" statements. While the company believes its forward looking statements are based upon reasonable assumptions, there are factors that are difficult to predict and that are influenced by economic and other conditions beyond the company's control. Investors are directed to consider such risks and other uncertainties discussed in documents filed by the company with the Securities and Exchange Commission.
| ROYALE ENERGY, INC. | ||||
| STATEMENTS OF OPERATIONS | ||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
| Restated | Restated | |||
| 2013 | 2012 | 2013 | 2012 | |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
| Revenues: | ||||
| Sale of Oil and Gas | $498,838 | $387,477 | $1,286,834 | $1,255,321 |
| Turnkey drilling | 2,470,322 | 0 | 3,363,989 | 0 |
| Supervisory Fees and Other | 160,496 | 166,170 | 485,534 | 535,717 |
| Total Revenues | 3,129,656 | 553,647 | 5,136,357 | 1,791,038 |
| Costs and Expenses: | ||||
| General and Administrative | 753,227 | 821,603 | 2,309,441 | 2,833,050 |
| Turnkey Drilling and Development | 1,220,536 | (343,707) | 1,762,379 | (153,549) |
| Lease Operating | 326,515 | 272,635 | 860,465 | 878,966 |
| Lease Impairment | 46,311 | 20,500 | 46,311 | 202,127 |
| Geological and Geophysical Expense | 24,997 | 773 | 24,997 | 423,459 |
| Inventory Write Down | 39,185 | 0 | 39,185 | 62,744 |
| Legal and Accounting | 26,509 | 80,772 | 278,973 | 500,647 |
| Marketing | 101,844 | 182,161 | 204,565 | 508,302 |
| Depreciation, Depletion and Amortization | 346,093 | 656,909 | 807,357 | 1,394,028 |
| Total Costs and Expenses | 2,885,217 | 1,691,646 | 6,333,673 | 6,649,774 |
| Gain (Loss) on Sale of assets | 350,233 | 1,547 | 2,645,153 | 3,284 |
| Income (Loss) From Operations | 594,672 | (1,136,452) | 1,447,837 | (4,855,452) |
| Other Income (Expense): | ||||
| Interest Expense | (1,105) | (19,039) | (304,472) | (87,401) |
| Gains/(Loss) on Marketable Securities | 0 | 0 | 0 | 0 |
| Income Before Income Tax Expense | 593,567 | (1,155,491) | 1,143,365 | (4,942,853) |
| Income tax provision (benefit) | 0 | (330,306) | 0 | (1,434,089) |
| Net Income (Loss) | $593,567 | ($825,185) | $1,143,365 | ($3,508,764) |
| Basic Earnings Per Share | $0.04 | ($0.07) | $0.08 | ($0.32) |
| Diluted Earnings Per Share | $0.04 | ($0.07) | $0.08 | ($0.32) |
| Other Comprehensive Income | ||||
| Unrealized Gain (Loss) on Equity Securities | $9,945 | $1,501 | $9,945 | $1,843 |
| Less: Reclassification Adjustment for Losses | ||||
| (Gains) Included in Net Income | 0 | 0 | 0 | 0 |
| Other Comprehensive Income (Loss), before tax | 9,945 | 1,501 | 9,945 | 1,843 |
| Income Tax Expense (Benefit) Related to Items of | ||||
| Other Comprehensive Income | 0 | 436 | 0 | 535 |
| Other Comprehensive Income (Loss), net of tax | 9,945 | 1,065 | 9,945 | 1,308 |
| Comprehensive Income (Loss) | $603,512 | ($824,120) | $1,153,310 | ($3,507,456) |
Royale Energy, Inc. Chanda Idano, Director of Marketing & PR 619-881-2800 http://www.royl.com
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