Harvest Natural may restate financial results
Harvest Natural says it may need to restate results after finding certain accounting errors
NEW YORK (AP) -- Energy company Harvest Natural Resources may be forced to revise and possibly restate some financial results published between 2010 and 2012, according to a regulatory filing Tuesday, cutting shares in half before the opening bell.
According to the filing with the Security and Exchange Commission, the company said that it identified certain errors related to its incorrect capitalization of certain lease maintenances cost and certain internal selling, general and administrative costs. Furthermore, it found an error in the presentation of certain cash flow items and determined that certain long-lived assets have been impaired.
The company said it must withhold its annual financial report with the SEC.
"Extra time is needed to determine the appropriate adjustments to such capitalized costs and the appropriate amounts by which our long-lived assets have been impaired," according to the filing. It also noted that "additional material weakness" could be identified as a result of its analysis.
Harvest Natural Resources also said it expects to report a loss of $9.6 million, or 26 cents per share for the year ended Dec. 31, compared with a profit of $51.8 million, or $1.32 per share for the previous year.
Harvest Natural Resources is based in Houston but has operations in Venezuela, exploration assets in Indonesia, West Africa, China and Oman and business development offices in Singapore and the United Kingdom.
Last month, the company ended a planned $725 million sale of its Venezuelan interests to Indonesia's national oil company after that country's government declined to approve the deal. The announcement came just weeks after the death of Hugo Chavez, the country's president.
Shares dropped $2.68 to $2.80 in premarket trading Tuesday. Shares have been trading anywhere from $4.85 per share to $10.83 per share in the past 52 weeks.
