InterOil Reports USD 6.3 Mln Net Loss in Q3, PNG

InterOil’s recorded net loss for the quarter ended September 30, 2013 was $6.3 million, compared with a profit of $5.3 million for the same period in 2012. The $11.6 million decrease in net profit was mainly due to an $8.6 million increase in foreign exchange losses and a $7.6 million decrease in gross margin on account of a relatively stable crude and product prices movement during the current quarter as compared to increases in the same quarter of 2012.

EBITDA for the third quarter of 2013 was $9.9 million, a decrease of $9.1 million compared to EBITDA of $19.0 million for the same period in 2012.

Total revenues decreased by $21.6 million to $305.2 million, primarily due to lower sales volumes during the quarter. The total volume of all products sold was 2.0 million barrels, compared with 2.3 million barrels in the same quarter of 2012, mainly due to the timing of refinery exports in the third quarter of 2012.

Michael Hession, InterOil Corporation Chief Executive Officer, commented, “The Company is delivering on its commitments to strengthen its financial position, complete a monetization transaction and resume exploration. We are pleased to have the support of a high calibre syndicate of international banks to bridge our funding requirements between the execution of a sales and purchase agreement (SPA) and completing the monetization transaction.

The management team is focused on the key drivers that create value for shareholders. We have identified priority objectives within our core business streams which are appropriately staffed and funded.

Negotiations with a number of supermajors regarding the monetization of our gas resources are in the final stages. We expect to be able to make an announcement on the selection of our development partner before year end.

Ongoing exploration activity is one of InterOil’s four core business units in Papua New Guinea, the others being midstream refining, downstream wholesale and retail petroleum distribution and the monetization of its gas resources.” “InterOil supports the communities in which it operates. We are proud to work with the people and Government of Papua New Guinea as we commit to further development that will provide revenue and employment for the PNG economy.”

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LNG World News Staff, November 12, 2013