Hondo Oil & Gas Company Reports Loss of $11.9 Million for 1995 Fiscal Year

Hondo Oil & Gas Company, an American energy company, announced a significant loss for the fiscal year 1995, totaling $11,906,000. This compares to a loss of $11,056,000 in the previous year. The company attributed the loss to various factors, including a $4.7 million interest expense and a $4.65 million charge resulting from a write-down of the company's Valley Gateway real estate property. The loss from continuing operations also included expenses related to the company's discontinued refining and marketing operations.

Key Takeaways:

• Hondo Oil & Gas Company reported a net loss of $11,906,000 for the fiscal year 1995.
• The company's loss per share was 90 cents, compared to 85 cents in the previous year.
• The fiscal 1995 results included a loss of $6,956,000 from continuing operations, compared to a loss of $8,018,000 in the previous year.
• The company incurred a $4.7 million interest expense in fiscal 1995, and a $4.6 million interest expense in fiscal 1994.
• The company invested $4.65 million in a fourth-quarter charge related to a write-down of the value of the Valley Gateway real estate property.
• The planned Opon No. 5 development well in Colombia has been indefinitely delayed due to right-of-way disputes with landowners.
• The company's proposed merger with its controlling shareholder, The Hondo Company, is no longer being pursued.

Statistics:

• Net loss: $11,906,000 (1995)
• Loss per share: 90 cents (1995)
• Loss from continuing operations: $6,956,000 (1995)
• Interest expense: $4.7 million (fiscal 1995), $4.6 million (fiscal 1994)
• Write-down of Valley Gateway real estate property: $4.65 million (1995)
• Number of landowners with right-of-way disputes: Not specified

Sources:

• PRNewswire: "Hondo Oil & Gas Company Reports Loss of $11,906,000 for 1995 Fiscal Year", January 2, 1996
• Form 10-K: "Hondo Oil & Gas Company (1995)"