Canacol Energy Ltd. reports that a $106.8 million non-cash writedown related to its Rancho Hermoso field in Colombia was the main reason for huge losses in the company's fiscal fourth quarter and year ended June 30.
The Calgary-based company reported a $120.6 million net loss for the 2013 financial year, including $116 million in the three months ended June 30.
Canacol's revenue also fell, dropping to $147.7 million for the year, including $41.8 million in the fourth quarter.
Canacol's revenue was down from their 2012 comparables by 20 per cent and nine per cent, respectively, when the company had $184.9 million of annual revenue and $45.7 million of fourth-quarter revenue, net of royalties.
Despite the net losses, the company said it's well positioned for strong production, cash flow and reserves growth for the 2014 financial year, which began July 1.
Fourth-quarter cash flow from operations was up 98 per cent year-year, rising to $19.1 million from $9.6 million in the three months ended June 30, 2012. For the full year, however, cash flow from operations was down 29 per cent to $51.1 million from $71.8 million in fiscal 2012.
The company said it expects to spend $80 million on capital projects in fiscal 2014, up from $67.8 million in fiscal 2013 but down from $186.1 million in the previous financial year.