InterOil posts lower profit

InterOil reported a profit of $4 million in the three months to March, compared with a profit of $9.4 million a year earlier.

The company's upstream segment continued to drag down profits and lost $13.8 million for the quarter, though that was down from a $17.2 million loss a year earlier.

Investments in the development of liquefaction facilities yielded a net loss of $14.5 million.

InterOil did see a $6.9 million decrease in seismic exploration costs, but slumped on higher interest from "inter-company loan balances" for development and other activities.

The Canadian player got a boost from its corporate, midstream refining and downstream segments, to the tune of $18.5 million.

Total revenues for the quarter were $350.3 million, up from $338.2 million a year earlier due to higher sales volumes.

InterOil's chief executive, Phil Mulacek, unexpectedly left the company at the end of last month, launching speculation that some of the company's assets - or the company itself - might be up for sale.

The company had been making sputtering progress in attracting a major partner to take an eventual operated stake in a liquefaction project at some sizable natural gas discoveries in Papua New Guinea. The government of the island nation told InterOil it had to find a major partner for Gulf LNG before it would allow the project to go forward.

InterOil has said it has received "several bids" to partner in the project. Upstream sources have indicated that Anglo-Dutch supermajor Shell is the front-runner to take on the role.

Hohoho, come to think of it that's about the last straw that shorts have to grab, and even that is "short".

Last night when I was reading in bed, my kindle locked me out of SHU, so I took a quick glance at Yahoo. Eric was worried about the accounts receivable being up, so that must be the next short argument.

Actually was the Accounts Payable; like 2 years ago. But if you look at the MDA they state:

"As at March 31, 2013, our total liabilities amounted to $589.2 million, compared with $288.0 million at March 31,

2012. The increase of $301.2 million, or 105%, from March 31, 2012 was primarily due to an increase of $139.5

million in accounts payable and accrued liabilities, mainly related to timing of payments on certain crude cargo

purchases; receipts of PRE’s $96.0 million initial staged cash payment held as a liability due to their option to

exit the Farm-In Agreement; a net increase of $58.4 million in secured loans payable on drawdown of the ANZ,

BSP and BNP syndicated secured loan facility of $95.9 million (net of transaction costs), partially reduced by the

OPIC loan repayment of $35.5 million during the last quarter of 2012; a $5.2 million increase in income tax

payable on profit before tax earned by our Downstream and Shipping business during the quarter; and a $3.5

million increase in 2.75% convertible note liability due to the convertible liability accretion expense incurred.

These increases however have been partially offset by a $5.1 million reduction in IPI liability mainly attributed to

the waiver or forfeiture of a total of 2.6% IPI interest conversion rights into common shares of the Company."

Oh, like 2 years ago, basically some timing issues and I would guess like 2 years ago we will see in Q2 things will be back to normal; except hopefully by then we have better thngs to celebrate.

Funny. And I was thinking the reference to a "multi-billion dollar deal" was the ear-catching thing. I'll have to take a closer look at the accounts receivable issue.