InterOil profit US$6.1m

Business, Normal

INTEROIL Corp recorded net profit of US$6.1 million (K17 million)  as against a net loss of US$11.8 million (K32 million) for the same period in 2008.
The company said  it was its first posting of annual profit.
Profits from InterOil’s refining and distribution businesses more than offset losses incurred in its developing upstream and liquefaction businesses.
This profit figure for the period ending Dec 31 included a significant expense item amounting to US$31.7 million (K87 million) for a “loss on extinguishment of indirect participation interest liability”.
This relates to an exchange transaction entered into with certain indirect participation interest (IPI) holders when their interests were exchanged for a certain number of InterOil’s common shares.
InterOil petroleum products sold in PNG totalled 6.5 million barrels for fiscal year last year compared with 6.6 million barrels in 2008, a steady result in light of the global economic backdrop.
Total revenue last year was US$693.1 million (K1.904 billion), compared with US$919.7 million (K2.527 billion) for 2008.
“The difference is primarily explained by lower crude oil prices, giving rise to commensurately lower product pricing in the current year,” InterOil said in a statement.
InterOil’s earnings before interest taxes, depreciation and amortisation (Ebitda) for the year was US$19.3 million (K53 million), down US$3.1 million (K9 million) from US$22.4 million (K62 million) in 2008.
This Ebitda figure would be US$51 million (K140 million) if the US$31.7 million (K87 million) ‘loss on extinguishment’ of the IPI liability was excluded.