OHA Investment Corporation Reports Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017
March 27, 2018 at 10:00 am EDT
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OHA Investment Corporation reported consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, the company’s total investment income was $2,591,000 against $4,037,000 a year ago. Net investment income for the fourth quarter of 2017 totaled $367,000 or $0.02 per share compared to $1.6 million or $0.08 per share a year ago. Investment income decreased by approximately $160,000 from the third quarter of 2017 primarily due to $297,000 of royalty payments received from its investment in ATP limited term royalty interest in the third quarter of 2017. Net asset value at the beginning of the quarter was $2.34 per share. Net increase in net assets resulting from operations was $1,064,000 or $0.05 per share against decrease of $11,285,000 or $0.56 per share a year ago.
For the year, the company generated $0.06 per share of taxable income in 2017, of which 100% has been deemed to be distributed to its shareholders. Net investment income for 2017 was $1.0 million, or $0.05 per share, compared to $6.5 million, or $0.32 per share, of net investment income in 2016. Investment income totaled $2.6 million for the fourth quarter of 2017, decreasing 35.8% compared to $4.0 million in the corresponding quarter of 2016. The decrease in investment income during the fourth quarter of 2017 was primarily as a result of a decrease in average portfolio investment balance, lower weighted average yield on investment portfolio, Castex Energy 2005, LP, ("Castex") being placed on non-accrual in January 2017 and lower production payments on investment in ATP Oil & Gas limited term royalty interest ("ATP"). Net decrease in net assets resulting from operations was $31,108,000 or $1.54 per share against $25,446,000 or $1.26 per share a year ago. Total investment income was $10,272,000 against $17,888,000 a year ago.
OHA Investment Corporation is a specialty finance company. The Company focuses primarily on providing direct lending solutions to middle market private companies across industry sectors. The Company's investment portfolio includes debt securities and other investments in upstream exploration and production companies engaged in the acquisition, development and production of oil and natural gas properties in and along the Gulf Coast, in the state and federal waters of the Gulf of Mexico, and in the Permian Basin, Mid-Continent and Rocky Mountain areas. The Company is an externally managed, closed-end, non-diversified management investment company. The Company invests primarily in senior and junior secured, unsecured and subordinated loans, and to debt securities or preferred stock of the United States private and public middle market companies. The Company may also invest in equity, distressed debt and other assets. The Company's investment advisor is Oak Hill Advisors, L.P.