Apco Oil and Gas International Inc. (NASDAQ:APAGF) today announced that for the three and six-month periods ended June 30, 2013, it generated unaudited net income attributable to Apco of $13.5 million and $23.5 million, or $0.46 and $0.80 per share, compared with net income of $12.7 million and $22.8 million, or $0.43 and $0.77 per share for the same periods in 2012.
Net income for the quarter and year-to-date periods was higher than the same periods in 2012 as the benefits of higher operating revenues were partially offset by the combination of greater costs and operating expenses, lower equity income from Argentine investment, and higher income tax expense.
Total operating revenues increased by $8.8 million and $14.0 million during the second quarter and first six months of 2013 compared with the same periods in 2012. Sales revenues from Apco’s Colombian operations and benefits realized from the Oil Plus hydrocarbon subsidy program in Argentina were the primary drivers of higher operating revenues experienced in 2013.
Total sales volumes applicable to Apco’s consolidated interest on a barrel of oil equivalent (BOE) basis were 4 percent higher than second-quarter 2012 and 2 percent higher than the first six months of 2012.
Total costs and operating expenses for the quarter and the six months increased by $6.6 million and $8.9 million, respectively, primarily the result of higher production and lifting costs, depreciation expense, selling and administrative expense, and higher foreign exchange losses. The year-to-date period also benefited from lower exploration expense compared with 2012.
The second quarters of 2013 and 2012 benefited from one-time credits to other income attributable to farm-outs of part of the company’s working interests in properties in Colombia and Argentina.
Apco also experienced lower equity income from its 40.72 percent interest in Petrolera Entre Lomas S.A. (Petrolera). During the second quarter and first six months of 2013, the impact of lower operating revenues and higher operating costs contributed to a decrease of $1.4 million and $4.3 million in equity income from Argentine investment compared with the comparable periods in 2012.