Harvest Natural -6.4% as losses mount, warns on completing Venezuela sale

|About: Harvest Natural Resources, ... (HNR)|By:, SA News Editor

Harvest Natural Resources (HNR -6.4%) sinks after Q4 earnings fall far short of Wall Street expectations, as it takes two charges related to the planned sale of assets to exit Venezuela.

HNR booked a $23M loss on the completed portion of the $400M sale of its 32% interest in the Petrodelta joint venture with Venezuela’s PDVSA to Argentina’s Pluspetrol, and recorded a $75M income tax expense which was partly related to the recording of any future tax liability.

The cash-strapped company warns that it is not sure when Venezuelan authorities would approve the sale of its assets in the country and its future liquidity depends heavily on completing the second part of the sale.

HNR says it is talking to potential buyers about its majority stake in a block off Gabon and exploration assets in Indonesia and China.