EXHIBIT 99.2
TRITON ENERGY REPORTS 1997 FINANCIAL RESULTS
DALLAS, TEXAS - February 3, 1998 - Triton Energy reports a 1997 loss of $9.3
million, or a loss of $.25 per diluted share, compared with 1996 earnings of
$21.6 million, or earnings of $.59 per diluted share. Excluding extraordinary
items, 1997 earnings were $5.2 million, or $.14 per diluted share, versus
earnings in 1996 of $22.8 million, or $.62 per diluted share. Results for
both periods are reported after preference dividends.
Total revenues for 1997 were $149.5 million versus 1996 revenues of $134.0
million, a 12% increase.
Production from the Cusiana and Cupiagua fields in Colombia averaged about
220,000 barrels of oil per day (BPD) during 1997, a 26% increase over the
prior year. The successful start-up and operation in the third quarter of two
new 80,000 BPD oil-production units at the Cusiana central processing facility
accounted for the rise in production.
"When construction of the new central processing facility in the Cupiagua
Field is completed and its two 100,000 BPD units are fully operational during
1998, we look forward to oil production from the Cusiana and Cupiagua fields
climbing from the present rate of more than 300,000 BPD to our targeted
500,000 BPD rate," said Peter Rugg, Triton Senior Vice President and Chief
Financial Officer.
FULL-YEAR 1997 VS. 1996 RESULTS
- -----------------------------------
Full-year 1997 results were affected by several factors. Primarily, these
included higher costs associated with the start-up and operation of additional
production and pipeline facilities in Colombia. However, during the start-up
period, these facilities were not utilized to their full capacity. In
addition, deliveries under the forward oil sale rose in 1997 as originally
scheduled, while total production did not rise as much as planned. These
deliveries, booked at $11.56 per barrel, were 29% of Triton's sales volumes in
1997, up from 10% of the Company's sales volumes in 1996.
Unusual items in 1997 resulted in a net charge of $8.3 million, primarily a
$14.5 million (aftertax) extraordinary charge related to the early retirement
of senior subordinated debt.
In 1996, unusual items netted a charge of $10.4 million, primarily the result
of a noncash charge of approximately $38 million (aftertax) representing all
costs associated with Triton's former Argentine operations. Partially
offsetting this charge were a $10.4 million gain (aftertax) on the
sale of Triton's Crusader shareholdings and a $4.1 million gain (aftertax) on
the sale of U.S. royalty-interest properties.
On the operations side, the rise in 1997 oil production was offset by lower
realized oil prices. Triton's average oil sales price for 1997 was $17.54 per
barrel, down 11% from the average oil sales price per barrel of $19.60 in
1996.
Operating costs, as well as depletion expenses, increased in 1997 due to
higher production volumes and greater costs resulting from the start-up of
additional production and pipeline facilities in Colombia. There was a higher
effective tax rate in 1997, compared with 1996 when a deferred tax benefit was
recognized. Greater interest expense and an increase in general and
administrative expenses also affected annual results.
The following table provides details on full-year and fourth-quarter 1997
results:
THREE MONTHS ENDED TWELVE MONTHS ENDED
12/31/97 12/31/96 12/31/97 12/31/96
-------- -------- -------- --------
In millions, except per share data
Revenues $46.2 $36.2 $149.5 $134.0
As reported after preference dividends:
Net earnings (loss) $(3.8) $(19.8) $(9.3) $21.6
Earnings (loss) per diluted share $(0.10) $(0.54) $(0.25) $0.59
Excluding extraordinary items:
Net earnings (loss) $( 3.8) $(19.8) $ 5.2 $22.8
Earnings (loss) per diluted share $(0.10) $(0.54) $0.14 $0.62
Adjusted for extraordinary and
unusual items:
Net earnings (loss) $ (0.5) $13.9 $(1.0) $32.0
Earnings (loss) per diluted share $(0.01) $0.38 $(0.03) $0.87
Average diluted shares outstanding 36.5 36.3 37.0 36.9
FOURTH-QUARTER 1997 VS. 1996 RESULTS
- ----------------------------------------
For the fourth quarter of 1997, Triton reported a loss of $3.8 million, or a
loss of $.10 per diluted share, compared with a loss of $19.8 million, or
a loss of $.54 per diluted share, for the fourth quarter of 1996. Results for
both periods are reported after preference dividends.
Revenues for the fourth quarter of 1997 were $46.2 million, up 28% versus
revenues of $36.2 million for the year-ago quarter.
In the fourth quarter of 1997, the increase in oil production was offset by
increased deliveries under the forward oil sale and by lower realized oil
prices. In addition, there was a net charge of $3.3 million, primarily a $4.1
million (aftertax) mark-to-market adjustment of the Company's crude-oil option
position. Operationally, higher operating costs and depletion expenses were
associated with the successful start-up and operation of additional production
and pipeline facilities in Colombia. General and administrative expenses and
interest expense also increased versus the prior-year quarter.
The loss for the fourth quarter of 1996 resulted from the previously mentioned
charge against Argentine operations.
Triton Energy Limited (NYSE: OIL) is a Dallas-based international oil and gas
exploration and production company primarily focused on large-scale projects
and exploration opportunities around the world. The Company has major
projects under way in Latin America and Southeast Asia. It is actively
exploring for oil and gas in these areas, as well as in southern Europe,
Africa and the Middle East.
Certain statements in this news release regarding future expectations and
financial performance, other than historical information, may be regarded as
"forward-looking statements" within the meaning of the U.S. Securities
Litigation Reform Act. They are subject to various risks and uncertainties,
such as the timely completion of exploration, appraisal and development
activities, and quarterly fluctuations in results. These are discussed in
detail in the Company's Securities and Exchange Commission filings, including
the report on Form 10Q for the quarter ended September 30, 1997. Actual
results may vary materially.
###
(tables follow)
Contacts: Investors - Crystal C. Bell, 214.691.5200
Media - Sheila Durante, 214.696.7655
For more information about Triton: www.tritonenergy.com or 1.888.OIL.NYSE.
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TRITON ENERGY LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(PRELIMINARY UNAUDITED)
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
-------------------- --------------------
1997 1996 1997 1996
--------- --------- --------- ---------
SALES AND OTHER OPERATING REVENUES:
Oil and gas sales $ 46,175 $ 36,246 $ 145,419 $129,795
Other operating revenues --- --- 4,077 4,182
--------- --------- --------- ---------
46,175 36,246 149,496 133,977
--------- --------- --------- ---------
COSTS AND EXPENSES:
Operating 16,105 8,619 51,357 36,654
General and administrative 8,484 6,512 28,607 25,945
Depreciation, depletion and amortization 12,082 7,604 36,828 25,640
Writedowns of assets --- 42,960 --- 42,960
--------- --------- --------- ---------
36,671 65,695 116,792 131,199
--------- --------- --------- ---------
OPERATING INCOME (LOSS) 9,504 (29,449) 32,704 2,778
Interest income 824 977 5,178 6,703
Interest expense (5,912) (2,575) (23,858) (15,897)
Other income (expense), net (5,452) 4,357 2,872 27,361
--------- --------- --------- ---------
(10,540) 2,759 (15,808) 18,167
--------- --------- --------- ---------
EARNINGS (LOSS) BEFORE INCOME TAXES
AND EXTRAORDINARY ITEM (1,036) (26,690) 16,896 20,945
Income tax expense (benefit) 2,748 (6,899) 11,301 (2,860)
--------- --------- --------- ---------
EARNINGS (LOSS) BEFORE EXTRAORDINARY ITEM (3,784) (19,791) 5,595 23,805
Extraordinary item - extinguishment of debt --- --- (14,491) (1,196)
--------- --------- --------- ---------
NET EARNINGS (LOSS) (3,784) (19,791) (8,896) 22,609
Dividends on preference shares --- --- 400 985
--------- --------- --------- ---------
EARNINGS (LOSS) APPLICABLE TO ORDINARY SHARES $ (3,784) $(19,791) $ (9,296) $ 21,624
--------- --------- --------- ---------
Average ordinary shares outstanding 36,540 36,338 36,471 35,929
--------- --------- --------- ---------
BASIC EARNINGS (LOSS) PER ORDINARY SHARE:
Earnings (loss) before extraordinary item $ (0.10) $ (0.54) $ 0.14 $ 0.64
Extraordinary item --- --- (0.40) (0.03)
--------- --------- --------- ---------
NET EARNINGS (LOSS) $ (0.10) $ (0.54) $ (0.26) $ 0.61
--------- --------- --------- ---------
DILUTED EARNINGS (LOSS) PER ORDINARY SHARE:
Earnings (loss) before extraordinary item $ (0.10) $ (0.54) $ 0.14 $ 0.62
Extraordinary item --- --- (0.39) (0.03)
--------- --------- --------- ---------
NET EARNINGS (LOSS) $ (0.10) $ (0.54) $ (0.25) $ 0.59
--------- --------- --------- ---------
TRITON ENERGY
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(PRELIMINARY UNAUDITED)
SELECTED BALANCE SHEET AND OTHER ITEMS DECEMBER 31, DECEMBER 31,
- ---------------------------------------------------------------
1997 1996
------------- -------------
(in thousands)
Cash, cash equivalents and marketable securities $ 13,451 $ 14,914
Short-term borrowings and current maturities of long-term debt 184,975 199,552
Long-term debt, excluding current maturities 443,312 217,078
Shareholders' equity 296,620 300,644
Total assets 1,098,039 914,524
Total ordinary shares outstanding 36,541 36,342
Average ordinary shares outstanding 36,471 35,929
Average diluted ordinary shares outstanding 37,008 36,919
CONSOLIDATED OIL PRODUCTION STATISTICS (NET TO TRITON)
- -----------------------------------------------------------
THREE MONTHS ENDED DECEMBER 31,
1997 1996
------------- -------------
Average revenue realized per Bbl* $ 16.76 $ 21.81
Sales volumes - Bbls/day 21,424 16,022
Forward oil sale deliveries - Bbls/day 8,283 1,902
- ----------------------------------------------------------- ------------- -------------
Total revenue Bbls/day 29,707 17,924
============= =============
YEAR ENDED DECEMBER 31,
1997 1996
------------- -------------
Average revenue realized per Bbl* $ 17.54 $ 19.60
Sales volumes - Bbls/day 15,825 15,992
Forward oil sale deliveries - Bbls/day 6,745 1,915
- ----------------------------------------------------------- ------------- -------------
Total revenue Bbls/day 22,570 17,907
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* Includes Ecopetrol reimbursement barrels and oil delivered under the forward oil sale.