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InterOil posts Q3 loss

Staff Reporter | 2:02 AM | |
NTEROIL Corporation has announced a net loss of $6.3 million for the third quarter compared to a profit of $5.3 million for the same period in 2012.
InterOil said 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 increase in the same quarter of 2012.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the third quarter of 2013 were $9.9 million, a decrease of $9.1 million compared to EBITDA of $19 million for the same period in 2012.
InterOil owns assets and operates through 3 business segments in PNG in the upstream, midstream and downstream.
The upstream segment realised a net loss of $16.2 million.
The midstream refining segment generated a net loss of $11.1 million in the quarter compared to a profit of $5.4 million for the same period in 2012
The downstream business unit generated a net profit of $9.4 million in the third quarter, which compares to $5.6 million in the same period a year ago.
The increased profit was mainly due to IPP price increases during the current quarter as opposed to price declines in the prior quarter.
The Corporate operations generated a net profit of $10.8 million against a gain of $7.8 million in the same period a year ago.
The improvement resulted mainly from an increase in inter-segment recharges, and a gain recognised for the disposal of FLEX LNG shares.
This was partially offset by increased office and administrative expenses resulting from corporate employees in PNG and the operation of the Napa Napa camp being captured in the Corporate segment since October 1, 2012.
InterOil chief executive Dr Michael Hession said, “The Company is delivering on its commitments to strengthen its financial position, complete a monetisation 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 monetisation 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 super majors regarding the monetisation 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”.
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