11-13-2013, 06:35 PM
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Alison Middleton Wednesday, 13 November 2013
SHARES in InterOil have spiked 19% after the company flagged an imminent end to drawn out commercialisation talks for its Elk-Antelope discovery in Papua New Guinea.
Announcing its financial and operating results for the third quarter, InterOil said negotiations with a number of supermajors relating to the monetisation of the Elk and Antelope resource were in the final stages, with an announcement expected by the end of this year.
Exclusivity arrangements for talks between Exxon and InterOil lapsed in August, allowing InterOil to restart talks with other candidates believed to include supermajors Total SA and Royal Dutch Shell.
Meanwhile, the company has secured a one-year facility for a $250 million capital expenditure facility led by Credit Suisse AG that will fund its exploration and drilling program in PNG.
InterOil announced a net loss for the quarter of $6.3 million, compared with $5.3 million for the same period in 2012.
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 due to relatively stable crude and product prices movement during the current quarter compared to increases in the same quarter of 2012.
Earnings before interest, taxes, depreciation, and amortization for the third quarter of 2013 were $9.9 million, a decrease of $9.1 million compared to EBITDA of $19.0 million for the same period in 2012.
Total revenues decreased by $21.6 million to $305.2 million, primarily due to lower sales volumes during the quarter. InterOil said the total volume of all products sold was 2 million barrels, compared with 2.3Mb in the same quarter of 2012, mainly due to the timing of refinery exports in the third quarter of 2012.,
InterOil said it had initiated seismic data acquisition and drilling activity including a well in each of the company’s three petroleum prospecting licenses, and would maintain a continuing focus on streamlining business units and reducing costs.
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 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 supermajors regarding the monetization 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.
“Ongoing exploration activity is one of InterOil’s four core business units in Papua New Guinea, the others being midstream refining, downstream wholesale and retail petroleum distribution and the monetisation of its gas resources.
“InterOil supports the communities in which it operates. We are proud to work with the people and government of Papua New Guinea as we commit to further development that will provide revenue and employment for the PNG economy.”
InterOil’s shares were last trading in New York Stock Exchange at $US80.18, an increase of 19.6%. |
