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ORCA Orca Energy Group Inc. Announces Completion of Its Q1 2021 Interim Filings TORTOLA , British Virgin Islands , May 18 , 2021 ( GLOBE NEWSWIRE ) -- Orca Energy Group Inc. ( " Orca " or the " Company " and includes its subsidiaries and affiliates ) ( TSX - V : ORC.A , ORC.B ) today announces that it has filed its condensed consolidated interim financial statements and management's discussion and analysis for the three month period ended March 31 , 2021 ( " Q1 2021 " ) with the Canadian securities regulatory authorities . All amounts are in United States dollars ( " $ " ) unless otherwise stated . • Revenue increased 5 % for Q1 2021 to $ 18.6 million compared to the same prior year period . The increase was primarily a result of increased sales to industrial customers . Gas deliveries for the quarter increased by 4 % compared to the same prior year period . The increase in gross sales volume was primarily due to the increase in gas deliveries to industrial customers as a result of expansion of the Company's customer base . • Net income attributable to shareholders decreased 69 % for Q1 2021 to $ 4.0 million compared to the same prior year period , primarily a result of the decrease in the reversal of loss allowances related to the lower collection of arrears from Tanzanian Electric Supply Company Limited ( " TANESCO " ) compared to Q1 2020 . • Net cash flows used in operating activities for Q1 2021 were $ 0.8 million compared to net cash flows from operating activities of $ 0.8 million in Q1 2020 , a decrease of $ 1.6 million . The decrease was primarily a result of the lower collection of TANESCO arrears being offset by an increase in trade and other receivables from Q4 2019 to Q1 2020 . Adjusted funds flow from operations for Q1 2021 increased by 13 % to $ 8.6 million compared to the same prior year period , primarily a result of the increase in revenue . Capital expenditures decreased by 53 % for Q1 2021 to $ 0.2 million compared to the same prior year period . The capital expenditures in Q1 2021 were primarily for well workover planning and design . The capital expenditures in Q1 2020 primarily relate to the flowline decoupling construction . The Company is currently installing compression to allow production volumes to be sustained at approximately 102 million standard cubic feet per day ( " MMcfd " ) through the Songas infrastructure . This provides the possibility to expand production capabilities to 172 MMcfd by also utilizing the National Natural Gas Infrastructure ( " NNGI ” ) . The value of the contract for compression is $ 38 million of which $ 24.7 million was incurred prior to 2021 with forecasted expenditures of $ 9.5 million for 2021 , upon delivery and inspection of the equipment , and $ 3.8 million for 2022 following installation and testing . The project is currently on budget and on schedule for completion in Q2 2022 . • The Company exited the period in a strong financial position with $ 47.4 million in working capital ( December 31 , 2020 : $ 74.2 million ) , cash and cash equivalents of $ 68.0 million ( December 31 , 2020 : $ 104.2 million ) and long - term debt of $ 54.2 million ( December 31 , 2020 : $ 54.2 million ) . The decrease in working capital and cash and cash equivalents was primarily related to the substantial issuer bid completed in January 2021 ( " 2021 SIB " ) . • As at March 31 , 2021 the current receivable from TANESCO was $ nil ( December 31 , 2020 : $ nil ) . TANESCO's long- term trade receivable as at March 31 , 2021 was $ 26.8 million with a provision of $ 26.8 million compared to $ 27.6 million ( provision of $ 27.6 million ) as at December 31 , 2020. Subsequent to March 31 , 2021 the Company invoiced TANESCO $ 0.4 million for April 2021 gas deliveries and TANESCO paid the Company $ 2.6 million for Q2 2021 gas deliveries and $ 5.0 million for the take or pay invoice for the 2015-2016 contract year . In accordance with the Portfolio Gas Sales Agreement , the take or pay gas for the 2015-2016 contract year was to be taken by June 30 , 2021 , however the Company has agreed with TANESCO to extend the time period to take the gas until June 30 , 2022 . • On February 23 , 2021 the Company declared a dividend of CDN $ 0.10 per share on each of its Class A common voting shares ( " Class A Shares " ) and Class B subordinate voting shares ( " Class B Shares " ) for a total of $ 1.6 million to the holders of record as of March 31 , 2021 which was paid on April 15 , 2021 . • On January 22 , 2021 the Company announced the final results of the 2021 SIB whereby the Company repurchased and cancelled 6,153,846 Class B Shares at a price of CDN $ 6.50 per Class B Share representing an aggregate purchase price of CDN $ 40.0 million and 25.2 % of the total number of the Company's issued and outstanding Class B Shares and 23.5 % of the total number of the Company's issued and outstanding shares . Jay Lyons , Interim Chief Executive Officer , commented : " We are pleased to report a solid set of Q1 results , which include an increase in revenue reflecting our growing customer base and continuing role in helping to meet Tanzania's growing power needs . Operationally , we remain on track and within budget with the installation of compression equipment , designed to ensure the Company can maintain production volumes at 102 MMcfd , with the potential to increase by a further 70 MMcfd . With a tight control on costs , we maintain a strong balance sheet , enabling us to not only continue investing in the creation of value from the world class Songo Songo gas field , but also making appropriate returns to our shareholders . We look forward to continuing to keep our stakeholders appraised of our progress as we move forward . "