InterOil Announces 2012 Third Quarter Financial and Operating Results
PORT MORESBY, Papua New Guinea and HOUSTON, Nov. 15, 2012, 2012 (Menafn - Canada NewsWire via COMTEX) --InterOil Corporation IOC (pomsox:IOC) today announced financial and operating results for the third quarter ended September 30, 2012 and also certain recent developments.
Third Quarter 2012 Highlights and Recent Developments
--Net profit for the quarter ended September 30, 2012 was 5.3
million. Operating segments of Corporate, Midstream Refining
and Downstream collectively derived a net profit for the
quarter of 16.8 million, while the investments in the
development segments of Upstream and Midstream Liquefaction
resulted in a net loss of 11.5 million.
--After successfully running and cementing 13 3/8 inch casing at
3,632 feet (1,107 meters) at Antelope-3, InterOil's rig 2 has
drilled the well to a depth of 5,013 feet (1,528 meters).
Forward plan is to drill to the top of the Antelope reservoir
estimated at 5,545 feet (1,690 meters) and then continue on to
total depth of 8,366 feet (2,550 meters), followed by wireline
logging, rotary sidewall coring and drill stem testing.
--Rig 3 is being mobilized to the Elk-3 drilling location. With
access roads from both the north and the south and a central
upstream development camp in place, InterOil is set to begin
drilling the second of two obligation wells in Petroleum
Retention License (PRL) 15. The Company's Tuna and Wahoo/Mako
prospects, targeting seismically defined reefal indications, in
PPLs 236 and 238 have matured to the drill ready stage and
preparations to access to the proposed drilling locations are
underway.
--Subsequent to quarter end, on October 16, 2012, the Company
entered into a five year amortizing 100 million secured term
loan facility with BNP Paribas Singapore, Bank South Pacific
Limited, and Australia and New Zealand Banking Group (PNG)
Limited which was used to repay indebtedness under the OPIC
loan, with the remaining amount to be used for general
corporate purposes. The loan is secured by the assets of the
refinery and bears interest at LIBOR plus 6.5%.
InterOil's Chief Executive Officer Phil Mulacek commented, "We are pleased with the progress in our negotiations with the Government of PNG related to our proposal to develop a 3.8 million tonne per annum LNG project in the Gulf Province."
As to the Antelope-3 well, Mr. Mulacek noted that, "We are very 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 resourses.
Our prospect inventory is maturing and we anticipate that it will support our goal of a multi-year, multi-well exploration program. We believe that these achievements, combined with our strong balance sheet, support our continued growth and operational success."
Corporate Financial Results
Net profit for the quarter ended September 30, 2012 was 5.3 million compared with a net loss of 19.8 million for the same period in 2011, an increase of 25.1 million. Operating segments of Corporate, Midstream Refining and Downstream collectively derived a net profit for the quarter of 16.8 million, while the investments in the development segments of Upstream and Midstream Liquefaction resulted in a net loss of 11.5 million during the quarter.
The improvement in net profit for the quarter was mainly due to a 29.4 million increase in gross margin attributable to the positive crude oil and refined product price movements during the quarter and higher margins from export cargos, among other items.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter ended September 30, 2012 was a gain of 19.0 million versus a loss of 11.5 million for the same period in 2011.
Total revenues increased by 45.0 million from 281.9 million in the quarter ended September 30, 2011 to 326.9 million in the third quarter of 2012, primarily due to higher sales volumes during the period. The total volume of all products sold by us was 2.2 million barrels for quarter ended September 30, 2012, compared with 1.8 million barrels in the same quarter of 2011.
Business Segment Results as of September 30, 2012
Upstream - On July 27, 2012, InterOil executed a farm in agreement with Pacific Rubiales Energy Corp. ("PRE") for PRE to be able to earn a 10.0% net (12.9% gross) participating interest in the PPL 237 onshore Papua New Guinea, including the Triceratops structure located within that license. Rig release from the Triceratops-2 well was received from PNG Department of Petroleum & Energy on August 13, 2012. The Triceratops-2 well has been suspended as a new discovery for recompletion at a later date as a future production well. Demobilization of Rig 2 began immediately for relocation to the Antelope-3 location. As of September 30, 2012, PRE has paid 40.0 million of the 116 million of staged up-front cash payments. Planning of new seismic and drilling location is in progress, and will be finalized once the remapping is complete.
The Antelope-3 well was spud on September 30, 2012. Subsequent to the quarter end, the well was drilled to a depth of 3,642 feet, (1,110 meters), at which depth the 13 inch casing was set and cemented. Following which, drilling resumed with a 12 inch bit to the current depth of 5,013 feet (1,528 meters). Forward plan is to drill to the top of the Antelope reservoir estimated at 5,545 feet (1,690 meters), set the second casing string and then continue on to total depth of 8,366 feet (2,550 meters), followed by wireline logging, rotary sidewall coring and drill stem testing.
Pre-spud preparation at the Elk-3 delineation well site is nearing completion. We have begun mobilization of our Rig 3 to the field. All components of Rig 3 have shipped out of Port Moresby by barge to Hou Creek. The objective of the Elk-3 delineation well is to test the Early Miocene to Late Oligocene limestone section above the gas water contact in the Elk fault block. The Early Miocene to Late Oligocene interval in the Elk-2 well was comprised of shallow marine and reefoid facies below the gas water contact. This lower interval exhibited better porosity and permeability than the shallower facies penetrated in the upper reservoir.
Our Hou Creek northern wharf and field access roadway are progressing to completion, and a permanent camp location is under construction. The wharf and crane are functioning and ready to accept materials and equipment. InterOil has also completed the upstream field development camp near the Antelope-3 wellsite and drilling crews are utilizing those accommodations.
InterOil's Upstream business realized a net loss of 10.9 million in the third quarter of 2012 compared to a net loss of 15.1 million in the comparable period a year ago. The decrease in the loss in 2012 was mainly due to reduced exploration costs incurred for seismic activity coupled with an increase in gain on the sale of oil and gas properties due to the gain recognized on sale of interest in PPL 237 to PRE. The positive variance was partially offset by higher interest expense due to an increase in inter-company loan balances.
Midstream Refining - Total refinery throughput for the quarter ended September 30, 2012 was 23,980 barrels per operating day, compared with 23,797 barrels per operating day during quarter ended September 30, 2011.
Capacity utilization of the refinery for the quarter ended September 30, 2012, based on 36,500 barrels per day operating capacity, was 61% compared with 56% for the same quarter in 2011. During the quarters ended September 30, 2012 and 2011, our refinery was shut down for 9 days and 15 days, respectively, for general maintenance activities.
Subsequent to quarter end, on October 16, 2012, the Company entered into a five year amortizing 100 million secured term loan facility with BNP Paribas Singapore, Bank South Pacific Limited, and Australia and New Zealand Banking Group (PNG) Limited. On November 9, 2012, borrowings under the facility were used to repay all outstanding amounts under the term loan granted by OPIC and the remaining funds will be used for general corporate purposes. The loan is secured by the assets of the refinery and bears interest at LIBOR plus 6.5%.
The Company's Midstream Refining operations generated a net profit of 5.4 million in the third quarter of 2012 versus a loss of 1.2 million in the prior year period. The positive variance is largely due to an improvement in gross margin resulting from improved crude oil and refined product prices, which were partially offset by higher derivative losses incurred for commodity contracts settled during the periods, a decrease in foreign exchange gains and increased income tax expense.
Midstream Liquefaction - Following receipt of the required PNG Government approvals, InterOil believes it will be able to conclude the LNG partnering process. We have made significant progress with FEED engineering studies, construction of roads and camps, social mapping and genealogical studies, which will assist in the partnering and execution of the project.
The Company's Midstream Liquefaction business generated a net loss of 0.6 million in the third quarter of 2012 compared with a loss of 4.0 million in the same period a year ago. The positive variance is largely due to a decrease in office, administration and other expenses related to the midstream facilities of the LNG Project development which are not capitalized.
Downstream - Total Downstream sales volumes for the quarter ended September 30, 2012 were 185.0 million litres, an increase of 22.5 million litres, or 13.8%, over the same quarter in 2011.
We believe that the PNG economy remains strong with continued robust activity in the resource sector although this is tempered by certain construction projects for the ExxonMobil LNG project now nearing an end. For this reason and with the completion of many construction projects in the commercial office and residential sectors, it is believed that demands will flatten in the short term for diesel and jet A1.
Our retail business sector continues to grow with the roll out of new electronic systems for our retail pumps and truck stops, and it is our intention to start operating our first retail site during the fourth quarter 2012.
InterOil's Downstream operations generated a net profit of 5.6 million in the third quarter of 2012, an improvement of 4.5 million versus a profit of 1.1 million in the previous year. The positive variance is largely due to an increase in gross margins mainly due to an increase in domestic sales volumes, which was partially offset by reduced foreign exchange gains and increased income tax expense.
Corporate - The Corporate segment generated a net profit of 7.8 million in the third quarter of 2012, compared to a net loss of 0.5 million in the same period of 2011. The positive variance is largely the result of a decreased loss on FLEX LNG investment, a decrease in office and administration expense, and higher interest income, which was partially offset by a decrease in inter-segment recharges.
Summary of Consolidated Quarterly Financial Results for Past Eight Quarters
Quarters201220112010
ended
( thousandsSep-30Jun-30Mar-31Dec-31Sep-30Jun-30Mar-31Dec-31
except per
share data)
Upstream2,2161,7272,2841,8912,6454,638668245
Midstream
??274,671236,006302,310237,640231,455262,111217,743158,092
Refining
Midstream
??--------
Liquefaction
Downstream201,749223,620218,974209,678186,304191,431157,709143,364
Corporate26,88024,74224,75721,83125,07826,54818,65915,213
Consolidation (178,652) (186,990) (210,174) (181,428) (163,584) (180,945) (151,125) (122,545)
entries
Total326,864299,105338,151289,612281,898303,783243,654194,369
revenues
Upstream956(5,730)(6,374)665(6,169)593(10,957)(41,681)
Midstream
??13,417(42,647)18,9332,6043,46127,96726,63213,780
Refining
Midstream
??11676(1,406)(4,123)(3,602)(4,035)(2,375)(1,959)
Liquefaction
Downstream9,27511,10221,4146,8083,5705,7778,7444,709
Corporate9,8419,9759,18810,1341,54813,9405,2234,566
Consolidation (14,503)(9,871)(14,216)(11,280)(10,263)(5,269)(9,200)(7,004)
entries
EBITDA ((1))18,997(36,495)27,5394,808(11,455)38,97318,067(27,589)
Upstream(10,936)(15,532)(17,244)(9,402)(15,080)(6,703)(17,949)(47,845)
Midstream
??5,358(32,969)11,32015,684(1,201)17,31414,8949,504
Refining
Midstream
??(573)93(1,969)(4,574)(3,980)(4,309)(2,604)(2,114)
Liquefaction
Downstream5,6266,04513,1953,6211,1462,3064,4912,643
Corporate7,8498,4456,2707,616(473)11,2753,4633,381
Consolidation (1,988)2,205(2,136)252(190)3,657(1,596)(401)
entries
Net profit/5,336(31,713)9,43613,197(19,778)23,540699(34,832)
(loss)
Net profit/
(loss) per
share
(dollars)
Per Share0.11(0.66)0.200.27(0.41)0.490.01(0.76)
?? Basic
Per Share
??0.11(0.66)0.190.27(0.41)0.480.01(0.76)
Diluted
__________________________________________________________________
(1)EBITDA is a non-GAAP measure, please refer to "Non-GAAP EBITDA
Reconciliation" in this press release.
_________________________________________________________________
Balance Sheet and LiquidityInterOil closed the third quarter ended September 30, 2012 with cash, cash equivalents and cash restricted totaling 96.9 million (September 30, 2011 - 144.4 million), of which 39.6 million is restricted (September 30, 2011 - 30.1 million).
We also had aggregate working capital facilities of 307.3 million, with 21.1 million available for use in our Midstream Refining operations, and 49.4 million available for use in our Downstream operations.
The Company is managing its gearing levels by maintaining the debt-to-capital ratio (debt/(shareholders' equity debt)) at 50% or less. Our debt-to-capital ratio was 13.0% as of September 30, 2012 which compares to 12.7% as of September 30, 2011.
Subsequent to the close of the third quarter, on October 16, 2012, we entered into a five year amortizing 100 million secured term loan facility with BNP Paribas Singapore, Bank South Pacific Limited, and Australia and New Zealand Banking Group (PNG) Limited. On November 9, 2012, borrowings under the facility were used to repay all outstanding amounts under the term loan granted by OPIC, and the remaining funds will be used for general corporate purposes. The loan is secured by the assets of the refinery and bears interest at LIBOR plus 6.5%.
Summary of Debt FacilitiesSummarized below are the debt facilities available to us and the balances outstanding as at September 30, 2012.
Balance
OrganizationFacilityoutstandingEffectiveMaturity date
interest rate
Sept 31, 2012
OPIC secured31,000,00031,000,0007.06%December 2015
loan ((1))
BNP Paribas69,174,302 (
working capital 240,000,000 (2))2.70%January 2013
facility
Westpac PGK
working capital
facility43,245,00010,898,58010.0%November 2014
facility
BSP PGK working
capital24,025,0007,003,4049.95%August 2013
facility
Westpac secured 12,857,00012,857,0004.77%September 2015
loan
2.75%
convertible70,000,00070,000,0007.91%((3))November 2015
notes
MitsuiSee detail
unsecured loan11,912,29711,912,2976.25%below
((4))
_____________________________________________________________________
____________________________________________________________________
Subsequent to the end of the quarter we entered into a new 100
(1)million loan facility and on November 9,2012, used a portion of
the proceeds from this facility to repay all amounts under the
OPIC facility
____________________________________________________________________
Excludes letters of credit totaling 149.7 million, which reduce
(2)the available balance of the facility to 21.1 million at
September 30, 2012.
____________________________________________________________________
Effective rate after bifurcating the equity and debt components
(3)of the 70 million principal amount of 2.75% convertible senior
notes due 2015.
____________________________________________________________________
Facility is to fund our share of the Condensate Stripping Project
(4)costs as they are incurred pursuant to the JVOA with Mitsui ("CSP
JVOA").
____________________________________________________________________
____________________________________________________________________
InterOil Corporation
Consolidated Income Statements
(Unaudited, Expressed in United States dollars)
Quarter endedNine months ended
September 30, September 30, September 30, September 30,
2012201120122011
Revenue
Sales and324,109,090278,499,694956,335,547819,484,250
operating revenues
Interest23,381368,768226,360952,421
Other2,732,2473,029,0887,557,0148,898,772
326,864,718281,897,550964,118,921829,335,443
Changes in
inventories of(35,607,503)(31,631,324)(6,263,770)43,859,762
finished goods and
work in progress
Raw materials and(250,722,505) (238,480,416) (896,694,438) (787,256,505)
consumables used
Administrative and (11,213,365)(11,809,956)(31,174,931)(33,119,377)
general expenses
Derivative(4,929,234)1,914,207(4,715,186)1,498,275
(losses)/gains
Legal and(1,656,287)(1,538,559)(3,877,763)(4,498,526)
professional fees
Exploration costs,
excluding
exploration(2,056,367)(6,568,147)(14,660,051)(16,636,215)
impairment (note
6)
Finance costs(4,209,765)(4,448,608)(13,646,887)(13,185,060)
Depreciation and(5,435,498)(5,168,473)(15,449,807)(13,980,789)
amortization
Gain on sale of
oil and gas2,895,000-2,895,000-
properties (note
11)
Loss on
available-for-sale -(6,048,537)-(1,834,279)
investment
Foreign exchange(3,495,353)1,918,1583,990,33817,696,737
(losses)/gains
(316,430,877) (301,861,655) (979,597,495) (807,455,977)
Profit/(loss)
before income10,433,841(19,964,105)(15,478,574)21,879,466
taxes
Income taxes
Current tax(2,561,068)(116,517)(11,623,696)(4,488,623)
expense
Deferred tax(2,537,251)302,68710,160,813(12,930,404)
(expense)/benefit
(5,098,319)186,170(1,462,883)(17,419,027)
Profit/(loss) for5,335,522(19,777,935)(16,941,457)4,460,439
the period
Profit/(loss) is
attributable to:
Owners of InterOil 5,335,522(19,777,694)(16,941,457)4,454,238
Corporation
Non-controlling-(241)-6,201
interest
5,335,522(19,777,935)(16,941,457)4,460,439
Basic profit/0.11(0.41)(0.35)0.09
(loss) per share
Diluted profit/0.11(0.41)(0.35)0.09
(loss) per share
Weighted average
number of common
shares outstanding
Basic (Expressed
in number of48,445,39747,993,22948,271,46947,936,721
common shares)
Diluted (Expressed
in number of48,785,87747,993,22948,271,46948,857,182
common shares)
See accompanying notes to the consolidated financial statements
InterOil Corporation
Consolidated Balance Sheets
(Unaudited, Expressed in United States dollars)
As at
September 30, December 31,September 30,
201220112011
Assets
Current assets:
Cash and cash equivalents57,291,55968,846,441114,330,510
Cash restricted33,610,45532,982,00123,543,921
Short term treasury bills --11,832,11011,324,929
held-to-maturity
Trade and other receivables149,852,154135,273,600105,377,991
Derivative financial-595,440413,093
instruments
Other current assets906,644867,967755,309
Inventories (note 5)164,808,029171,071,799170,997,122
Prepaid expenses5,891,7135,477,5962,361,925
Total current assets412,360,554426,946,954429,104,800
Non-current assets:
Cash restricted5,980,8326,268,7626,530,817
Goodwill6,626,3176,626,3176,626,317
Plant and equipment251,556,473246,043,948237,330,322
Oil and gas properties (note 472,077,713362,852,766330,346,730
6)
Deferred tax assets47,585,64935,965,273742,379
Available-for-sale5,462,5703,650,7865,644,478
investments
Total non-current assets789,289,554661,407,852587,221,043
Total assets1,201,650,108 1,088,354,806 1,016,325,843
Liabilities and
shareholders' equity
Current liabilities:
Trade and other payables172,929,668159,882,17791,957,476
Income tax payable9,592,1644,085,1372,883,220
Derivative financial371,14311,457318,736
instruments
Working capital facilities87,076,28616,480,50348,085,248
(note 7)
Unsecured loan and current
portion of secured loans25,198,29719,393,02319,393,023
(note 9)
Current portion of Indirect
participation interest (note 13,770,156540,002540,002
10)
Total current liabilities308,937,714200,392,299163,177,705
Non-current liabilities:
Secured loans (note 9)30,238,12526,037,16630,481,180
2.75% convertible notes58,175,24555,637,63054,816,599
liability
Deferred gain on746,8345,810,7757,263,210
contributions to LNG project
Indirect participation20,904,68634,134,84034,134,387
interest (note 10)
Other non-current20,000,000--
liabilities (note 11)
Asset retirement obligations 4,947,1014,562,2694,289,444
Deferred tax liabilities-1,889,391-
Total non-current135,011,991128,072,071130,984,820
liabilities
Total liabilities443,949,705328,464,370294,162,525
Equity:
Equity attributable to
owners of InterOil
Corporation:
Share capital (note 12)927,913,817905,981,614902,114,261
Authorized - unlimited
Issued and outstanding -
48,587,461
(Dec 31, 2011 - 48,121,071)
(Sep 30, 2011 - 48,000,131)
2.75% convertible notes14,298,03614,298,03614,298,036
Contributed surplus20,107,93725,644,24524,552,456
Accumulated Other27,736,41129,380,88224,164,391
Comprehensive Income
Conversion options12,150,88012,150,88012,150,880
Accumulated deficit(244,506,678) (227,565,221) (255,143,006)
Total equity attributable to
owners of InterOil757,700,403759,890,436722,137,018
Corporation
Non-controlling interest--26,300
Total equity757,700,403759,890,436722,163,318
Total liabilities and equity 1,201,650,108 1,088,354,806 1,016,325,843
See accompanying notes to the consolidated financial statements
InterOil Corporation
Consolidated Statements of Cash Flows
(Unaudited, Expressed in United States dollars)
Quarter endedNine months ended
SeptemberSeptemberSeptember 30, September 30,
30,30,
2012201120122011
Cash flows
generated from
(used in):
Operating
activities
Net profit/(loss)5,335,522(19,777,935) (16,941,457)4,460,439
for the period
Adjustments for
non-cash and
non-operating
transactions
Depreciation and5,435,4985,168,47315,449,80713,980,789
amortization
Deferred tax2,872,882(66,555)(13,509,767)13,355,749
Gain on sale of(2,895,000)-(2,895,000)-
exploration assets
Accretion of
convertible notes858,478808,9152,537,6152,391,110
liability
Amortization of
deferred financing36,98655,986129,959167,958
costs
Timing difference
between derivatives
recognized
and settled1,122,929(89,857)955,126(272,935)
Stock compensation
expense, including2,112,9324,029,8215,777,47211,728,248
restricted stock
Movement in
inventory write(24,636,489) (3,255,318)-3,417,882
down
Accretion of asset
retirement82,77479,678248,32279,678
obligation
liability
Oil and gas2,056,3676,568,14714,660,05116,636,215
properties expensed
Loss on Flex LNG-6,048,537-1,834,279
investment
Unrealized foreign
exchange loss/22,277(3,763,825)(876,631)(1,847,242)
(gain)
Change in operating
working capital
(Increase)/decrease
in trade and other(31,466,298) 4,515,067(23,460,485)(35,290,574)
receivables
Decrease/(increase)
in other current2,360,590637,017(452,794)981,399
assets and prepaid
expenses
Decrease/(increase) 59,593,39935,072,0184,014,645(37,484,446)
in inventories
Increase in trade6,708,33013,422,3136,017,99123,754,298
and other payables
Net cash generated
from/(used in)29,601,17749,452,482(8,345,146)17,892,847
operating
activities
Investing
activities
Expenditure on oil(46,034,941) (35,025,246) (149,275,108) (98,420,370)
and gas properties
Proceeds from IPI-91,1383,497,54291,138
cash calls
Expenditure on(12,526,263) (10,442,871) (26,026,273)(23,691,596)
plant and equipment
Proceeds from
Pacific Rubiales--20,000,000-
Energy (conveyance
accounted portion)
Maturity of short-(11,324,929) 11,832,110(11,324,929)
term treasury bills
Acquisition of Flex
LNG Ltd shares,---(7,478,756)
including
transaction costs
Decrease/(increase)
in restricted cash
held as security on
borrowings906,9976,453,266(340,524)17,203,331
Change in
non-operating
working capital
Increase in trade
and other-(10,000,000) -(10,000,000)
receivables
Increase/(decrease)
in trade and other14,342,166(916,001)22,892,495(10,763,171)
payables
Net cash used in
investing(43,312,041) (61,164,643) (117,419,758) (144,384,353)
activities
Financing
activities
Repayments of OPIC--(4,500,000)(4,500,000)
secured loan
Proceeds from
Mitsui for3,578,489551,5623,578,4899,872,532
Condensate
Stripping Plant
Proceeds from
Westpac secured--15,000,000-
loan
Repayments of
Westpac secured(2,143,000)-(2,143,000)-
loan
Proceeds from
Pacific Rubiales20,000,000-20,000,000-
Energy for interest
in PPL237
Proceeds from
working capital24,188,225(45,633,592) 70,595,783(3,169,078)
facility
Proceeds from issue
of common shares,4,757,023192,55010,618,4232,549,000
net of transaction
costs
Net cash generated
from financing50,380,737(44,889,480) 113,149,6954,752,454
activities
Increase/(decrease)
in cash and cash36,669,873(56,601,641) (12,615,209)(121,739,052)
equivalents
Cash and cash
equivalents,20,623,574168,439,41068,846,441233,576,821
beginning of period
Exchange gains on
cash and cash(1,888)2,492,7411,060,3272,492,741
equivalents
Cash and cash
equivalents, end of 57,291,559114,330,51057,291,559114,330,510
period
Comprising of:
Cash on Deposit56,656,72923,684,48556,656,72923,684,485
Term Deposits634,83090,646,025634,83090,646,025
Total cash and cash
equivalents, end of 57,291,559114,330,51057,291,559114,330,510
period
See accompanying notes to the consolidated financial statements
NON-GAAP EBITDA Reconciliation EBITDA represents our net income/(loss) plus total interest expense (excluding amortization of debt issuance costs), income tax expense, depreciation and amortization expense. EBITDA is used by us to analyze operating performance. EBITDA does not have a standardized meaning prescribed by GAAP (i.e., IFRS) and, therefore, may not be comparable with the calculation of similar measures for other companies. The items excluded from EBITDA are significant in assessing our operating results. Therefore, EBITDA should not be considered in isolation or as an alternative to net earnings, operating profit, net cash provided from operating activities and other measures of financial performance prepared in accordance with IFRS. Further, EBITDA is not a measure of cash flow under IFRS and should not be considered as such. For reconciliation of EBITDA to the net income (loss) under IFRS, refer to the following table.
The following table reconciles net income (loss), a GAAP measure, to EBITDA, a non-GAAP measure for each of the last eight quarters.
Quarters201220112010
ended
Sep-30Jun-30Mar-31Dec-31Sep-30Jun-30Mar-31Dec-31
( thousands)
Upstream956(5,730)(6,374)665(6,169)593(10,957) (41,681)
Midstream
??13,417(42,647) 18,9332,6043,46127,96726,63213,780
Refining
Midstream
??11676(1,406)(4,123)(3,602)(4,035) (2,375)(1,959)
Liquefaction
Downstream9,27511,10221,4146,8083,5705,7778,7444,709
Corporate9,8419,9759,18810,1341,54813,9405,2234,566
Consolidation (14,503) (9,871)(14,214) (11,280) (10,263) (5,270) (9,200)(7,004)
Entries
Earnings
before
interest,
taxes,18,997(36,495) 27,5414,808(11,455) 38,97218,067(27,589)
depreciation
and
amortization
Subtract:
Upstream(11,438) (10,517) (9,408)(8,712)(7,806)(7,142) (6,352)(5,481)
Midstream
??(1,654)(2,011)(2,771)(3,285)(2,494)(2,211) (1,675)(1,509)
Refining
Midstream
??(584)(579)(559)(445)(372)(268)(223)(184)
Liquefaction
Downstream(394)(909)(1,233)(1,170)(1,233)(1,116) (826)(835)
Corporate(1,540)(1,535)(1,510)(1,498)(1,477)(1,641) (1,395)(1,158)
Consolidation 12,48212,04412,04511,50010,0418,8947,5726,571
Entries
Interest(3,128)(3,507)(3,436)(3,610)(3,341)(3,484) (2,899)(2,596)
expense
Upstream--------
Midstream
??(3,484)14,580(1,948)19,243678(5,677) (7,298)(65)
Refining
Midstream
??-------36
Liquefaction
Downstream(1,791)(2,907)(5,746)(595)(297)(1,449) (2,623)(495)
Corporate177535(880)(493)(195)(629)71(11)
Consolidation -------(2)
Entries
Income taxes(5,098)12,208(8,574)18,155186(7,755) (9,850)(537)
Upstream(454)715(1,462)(1,355)(1,105)(154)(641)(683)
Midstream
??(2,921)(2,891)(2,894)(2,878)(2,846)(2,764) (2,765)(2,700)
Refining
Midstream
??0(4)(4)(6)(6)(6)(6)(7)
Liquefaction
Downstream(1,464)(1,241)(1,240)(1,422)(894)(906)(804)(737)
Corporate(629)(530)(528)(527)(349)(395)(435)(16)
Consolidation 3332333232323233
Entries
Depreciation
and(5,435)(3,919)(6,095)(6,156)(5,168)(4,193) (4,619)(4,110)
amortisation
Upstream(10,936) (15,532) (17,244) (9,402)(15,080) (6,703) (17,949) (47,845)
Midstream
??5,358(32,969) 11,32015,684(1,201)17,31414,8949,504
Refining
Midstream
??(573)93(1,969)(4,574)(3,980)(4,309) (2,604)(2,114)
Liquefaction
Downstream5,6266,04513,1953,6211,1462,3064,4912,643
Corporate7,8498,4456,2707,616(473)11,2753,4633,381
Consolidation (1,988)2,205(2,136)252(190)3,657(1,596)(401)
Entries
Net profit/
(loss) per5,336(31,713) 9,43613,197(19,778) 23,540699(34,832)
segment
About InterOilInterOil Corporation is developing a vertically integrated energy business whose primary focus is Papua New Guinea and the surrounding region. InterOil's assets consist of petroleum licenses covering about 3.9 million acres, an oil refinery, and retail and commercial distribution facilities, all located in Papua New Guinea. In addition, InterOil is a shareholder in a joint venture established to construct an LNG plant in Papua New Guinea.
InterOil's common shares trade on the NYSE in US dollars.
___________________________________________________________________________________________________________________________________________________________________________________________________________________
Investor Contacts for InterOil
___________________________________________________________________________________________________________________________________________________________________________________________________________________
Wayne AndrewsMeg LaSalle
__________________________________________________________________________________________________________________________________________________________________________________________________________________
Vice President Capital MarketsInvestor Relations Coordinator
__________________________________________________________________________________________________________________________________________________________________________________________________________________
Wayne.Andrews@InterOil.comMeg.LaSalle@InterOil.com
__________________________________________________________________________________________________________________________________________________________________________________________________________________
The Woodlands, TX USAThe Woodlands, TX USA
__________________________________________________________________________________________________________________________________________________________________________________________________________________
Phone: 1-281-292-1800Phone: 1-281-292-1800
__________________________________________________________________________________________________________________________________________________________________________________________________________________
Forward Looking StatementsThis press release includes "forward-looking statements" as defined in United States federal and Canadian securities laws. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the InterOil expects, believes or anticipates will or may occur in the future are forward-looking statements, including in particular drilling plans, objectives of drilling plans, timing of drilling plans, further testing of wells, development activities including plans to deploy InterOil's rigs, the development of the proposed LNG processing facility, the ability to attract a strategic LNG partner, timing and success of the LNG partnering process, approval by the PNG Government of InterOil's LNG project, satisfaction of the State of InterOil's development plans and satisfaction of the terms of the 2009 LNG Project Agreement with the State, benefits to stakeholders, the relationship with PRE, characteristics of our resources, completion of the farm-in transaction with PRE, satisfaction and timing of conditions to completion of the farm-in transaction with PRE, timing of FEED on the liquefaction facilities, the economic conditions of PNG and demand for InterOil's products, growth of InterOil's retail business sector and timing of such growth, initiatives and timing of such initiatives, anticipated financial conditions and performance, business prospects, strategies, regulatory developments, the ability to obtain financing on acceptable terms, the ability to identify drilling locations and the ability to develop reserves and production through development and exploration activities. These statements are based on certain assumptions made by the Company based on its experience and perception of current conditions, expected future developments, agreements with third parties, bids received in respect of the LNG partnering process and other factors it believes are appropriate in the circumstances. No assurances can be given however, that these events will occur. Actual results will differ, and the difference may be material and adverse to the Company and its shareholders. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause our actual results to differ materially from those implied or expressed by the forward-looking statements. Some of these factors include the risk factors discussed in the Company's filings with the Securities and Exchange Commission and on SEDAR, including but not limited to those in the Company's Annual Report for the year ended December 31, 2011 on Form 40-F and its Annual Information Form for the year ended December 31, 2011. In particular, there is no established market for natural gas or gas condensate in Papua New Guinea and no guarantee that gas or gas condensate from the Elk, Antelope and Triceratops fields will ultimately be able to be extracted and sold commercially.
Investors are urged to consider closely the disclosure in the Company's Form 40-F, available from us at www.interoil.com or from the SEC at www.sec.gov and its Annual Information Form available on SEDAR at www.sedar.com.
SOURCE: InterOil Corporation
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/November2012/15/c8413.html
SOURCE: InterOil Corporation
http://www.interoil.com
Copyright (C) 2012 CNW Group. All rights reserved.
