InterOil Profit Down, PNG

InterOil recorded a net profit for the quarter ended March 31, 2013 of $4.0 million, compared with a profit of $9.4 million for the same period in 2012, a decrease of $5.4 million.

The operating segments of Corporate, Midstream Refining and Downstream collectively returned a net profit for the quarter of $18.5 million. Investments in the development segments of Upstream and Midstream Liquefaction yielded a net loss of $14.5 million for an aggregate net profit of $4.0 million.

EBITDA for the quarter ended March 31, 2013 was $18.0 million, a decrease of $9.5 million compared to EBITDA of $27.5 million for the same period in 2012, the decrease was mainly due to a $15.6 million negative variance in foreign exchange due to a weakening Kina versus the U.S. Dollar in the current period compared to a strengthening Kina versus the U.S. Dollar in the same period in 2012. The swing in foreign exchange was partially offset by $6.9 million reduction in exploration expense compared to the 2012 first quarter.

Total revenues for the quarter ended March 31, 2013 were $350.3 million compared with $338.2 million for the same period in 2012. This increase in the quarter ended March 31, 2013 compared to the same period in 2012 was primarily due to higher sales volumes made during the quarter. The total volume of all products sold by us was 2.4 million barrels for the quarter ended March 31, 2013, compared with 2.2 million barrels in first quarter of 2012.

First Quarter 2013 Highlights and Recent Developments

• On January 24, 2013, the Minister for Petroleum & Energy approved and the DPE registered the transfer of interest in PPL 237 to Pacific Rubiales Energy (PRE) and the related PRE JVOA. During the quarter, an application was submitted for a Petroleum Retention License over the Triceratops discovery. On March 13, 2013, the Farm-In Agreement with PRE was completed.
• On March 1, 2013, InterOil announced that its advisors have informed the Company that several bids to partner with InterOil in its Gulf LNG project have been received. Investment banking advisors and the Company are in final discussions with multiple parties, including major oil companies and a national oil company, each of whom, if chosen, would satisfy the PNG government’s objectives.
• With the success of the Triceratops gas discovery and the better than expected results of the Antelope-3 well, InterOil had discussions with the DPE on forward focus and priorities. To progress development of core assets, the company applied for variations to modify the well commitments for PPL 236 and PPL 238. On March 28, 2013, the Minister for Petroleum & Energy approved and the DPE registered the deferral of the well commitments for PPL 236 and PPL 238.
• Net profit for the quarter ended March 31, 2013 was $4.0 million, compared with a profit of $9.4 million for the same period in 2012, a decrease of $5.4 million. The operating segments of Corporate, Midstream Refining and Downstream collectively returned a net profit for the quarter of $18.5 million. Investments in the development segments of Upstream and Midstream Liquefaction yielded a net loss of $14.5 million for an aggregate net profit of $4.0 million.

Dr. Gaylen Byker, InterOil Corporation Interim Chief Executive Officer, commented,
“InterOil management and the Board are firmly committed to all of our stakeholders. My mandate as Chairman is to drive the LNG partner selection process to conclusion while maximizing value for all. We believe that our partnering process puts us in an advantageous position. We all look forward to working with a qualified LNG partner, in a fashion that balances the interests of all stakeholders and satisfies the objectives of the PNG government. We are excited to be at the final stage in this process.”

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LNG World News Staff, May 14, 2013; Image: InterOil