InterOil cuts 2016 guidance on $242 mln 2015 loss

March 31, 2016

InterOil of Papua New Guinea posted a US$241.9 million net loss in 2015, compared to a $289.8 million net profit in 2014.

The company said in its report on Wednesday that the difference in profit is a result of a $340.5 million accounting conveyance gain in 2014 received from the sale of 40.1 percent interest in PRL15 to Total E&P PNG.

Additionally, InterOil sold its refinery and downstream businesses to Puma Energy Pacific Holdings in 2014.

In the last quarter 2015, the company posted a net loss of $83.8 million compared to a net loss of $64.2 million in the last quarter of 2014.

InterOil Chief Executive Michael Hession said that 2016 guidance has been lowered to a range of $155 million to $170 million, predominantly focused on the Papua LNG project.

Papua LNG project

Hession informed that the Papua LNG project remains on track for a two-train liquefied natural gas development as the analysis of the Antelope-6 well and the Antelope-5 flow tests continues.

“The data from the last three appraisal wells have surprised on the upside and extended flow tests have confirmed connectivity, deliverability and excellent reservoir quality across Antelope,” said Hession.

He noted that the focus during 2016 will be on completing the appraisal program, progressing the certification of Elk-Antelope volumes, advancing the Papua LNG project from basis of design to FEED.

LNG World News Staff