InterOil: US$5.3m profit

By GYNNIE KERO
INTEROIL posted a net profit of US$5.3 million for the third quarter ending Sept 30 against a net loss of US$19.8 million for the same period last year.
The company said the improvement in net profit for the quarter was mainly due to a US$29.4 million increase in gross margin brought by positive crude oil and refined product price movements during the quarter and higher margins from export cargos.
InterOil’s third quarterly report revealed that earnings before interest, taxes, depreciation and amortisation (Ebitda) represented a gain of US$19 million against a loss of US$11.5 million, same period last year.
“Operating segments of corporate, midstream refining and downstream collectively derived a net profit for the quarter of US$16.8 million, while investments in the development segments of upstream and midstream liquefaction resulted in a net loss of US$11.5 million during the quarter.
“Total revenues increased by US$45 million from US$281.9 million in the same quarter last year to US$326.9 million in the third quarter this year.
“This was primarily due to higher sales volumes during the period.
The total volume of all products sold was 2.2 million barrels during the quarter in review, compared to 1.8 million barrels in the same quarter last year.
Subsequent to the quarter end, InterOil entered into a five-year amortising US$100 million secured term loan facility with BNP Paribas Singapore, Bank South Pacific Ltd, and Australia and New Zealand Banking Group (ANZ PNG) Ltd. 
The loan is secured by the assets of the refinery and bears interest at Libor (London Interbank offered rate) plus 6.5%.
In light of the 50-50 split in the Gulf LNG project development, chief executive officer Phil Mulacek said InterOil was pleased with the progress in the negotiations.
He said the company was encouraged by the progress in drilling the Antelope-3 well to near the top of the reservoir.
“This well is expected to further appraise our recourses,” he said.
“Our prospect inventory is maturing and we anticipate that it will support our goal of a multi-year, multi-well exploration programme. 
“We believe that these achievements, combined with our strong balance sheet, support our continued growth and operational success.”