Company Reports Asset Growth and Revenues
NEW YORK, Nov. 21, 2017 (GLOBE NEWSWIRE) -- Petrogress, Inc. (OTCMkts:PGAS) filed its Form 10-Q covering financial results for the period ended September 30, 2017. The report was delayed to allow the Company’s accounting staff in Greece and the US to address issues relating to the acquisition of Petrogress Int’l, LLC and Petrogres Africa Co., Ltd., and the formation of PG Cypyard & Offshore Service Terminal Ltd.
Financial results reflected the acquisition of assets in Ghana and Cyprus; these are reflected as additional paid-in-capital, which increased by slightly more than $1 million. In addition, cash and cash equivalents increased by nearly $700,000, and pre-paid expenses and other current assets increased by over $1.6 million. Liabilities are up by $1.3 million, commensurate with increases in accounts payable and amounts due to Mr. Traios under the LOC financing agreement. These additions to cash, pre-payments and accrued expenses reflect the Company’s stockpiling cash and pre-positioning for planned 1Q and 2Q 2018 activities. All-in-all, shareholder equity increased by 28% over 2Q 2017, and total liabilities and shareholder equity increased to over $14 million, representing a nearly 21% increase over 2Q results, and a 44% increase year-to-date.
Quarter-on-quarter revenues declined from $4.4 million to $3.3 million, with a decline in gross profits of $700,000, almost entirely due to reduced crude oil sales from African producers. The Company believes that speculation as to increased oil prices – due predominantly to political developments in Saudi Arabia and other parts of the region – has resulted in production slow-downs and greater storage. The Company also believes that shipments at previous or higher levels will resume in the near-term, as uncertainties resolve, and that projected oil price increases thereafter will allow for higher margins. Operating costs were almost $500,000, or 56%, higher in the third quarter due to one-time costs associated with consolidating the business operations of PIL and PAF, and PIL’s formation of PG Cypyard. Regardless, the Company realized a small profit in the third quarter.
Christos P. Traios, Chairman and President, commented, “Revenues from our shipping business have a floor, and we believe we found it. Our shipping business is dependent on producers who are largely influenced by prices and rumors and projections. Our ships are in good repair and on station, and our suppliers and customers remain in-place. We expect shipping turns and margins to bounce back strongly as political matters resolve. I am frankly more proud of our profit in this difficult quarter than I am of the much larger profits we’ve shown in other, easier quarters. More importantly, we put several pieces into place preparing for activities planned over the next several quarters. We’ve pre-paid anticipated expenses and pre-positioned personnel and assets that we’ll use over the next six to twelve months building our business in Cypriot ports, pursuing important, government-sponsored joint ventures in Libya, and finalizing our offshore production and lease arrangements in Ghana.”
About Petrogress, Inc.
Petrogress, Inc. owns and operates a fleet of tankers from its base in the historic Port of Piraeus through a series of Marshall Islands subsidiaries. Its principal and CEO, Christos P. Traios, has over 30 years of experience in operating and managing shipping operations from Greece. Currently, the Company’s ships trade off the coast of West Africa, transporting crude oil, distillates and refined products. The Company also operates service and shipping facilities at the Port of Limassol in Cyprus and the Port of Tema, Greater Accra, in Ghana. It is actively seeking expansion opportunities, including in operating and developing natural gas production and transmission facilities along with LNG processing in the U.S., refinery operations in north and west Africa, and the transport and sales of LNG in Europe.
Safe Harbor Statement
This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements, trends, analysis, and other information contained in this press release including words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," and other similar expressions of opinion, constitute forward-looking statements. Any such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from any future results described within the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the Securities and Exchange Commission. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release.
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Source: Petrogress, Inc.
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