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InterOil reports Q1 2008, swings to positive cash-flow

May 15th, 2008 · 5 Comments

It has just released it’s first quarter figures, which show substantial improvement on basically all metrics, as we expected. Compared to Q1 2007:

  • revenue increased to 192,414M from 126.896M
  • EBIDTA increased to 7,136M from 3,102M
  • net loss decreased to 2,397M from 5,354M
  • net loss per share decreased to 0.08 from 0.18
  • cash flow from operations turned positive to 6,998M from (4,973M)
  • throughput of the refinery increased to 21,959 barrels per operating day compared with 18,448 bbls per operating day in the same quarter of the prior year.

Margins have improved (obviously) and they expect further improvements:

The reduced net loss was primarily due to an improvement in margins, increased domestic demand and decreased exploration costs in Papua New Guinea,” stated Mr Collin Visaggio, the Chief Financial Officer of InterOil Corporation. “We believe that the refining and distribution segments will continue to show improvements in cash flows in the coming quarters.”

They are also paying towards Liquid Niugini, the company which (together with Merrill Lynch and Clarion Finanz) they have a 1/3 stake in. However:

The Midstream liquefaction loss of $1.7 million is consolidated into Company results, however, no further cash injections are required to be made by the Company until a total of $200.0 million has been contributed by the other joint venture partners to equalize their shareholding in the joint venture company.

In conclusion, we can say, a pretty good quarter, steady improvements. We especially like positive cash-flow in this quarter.

Tags: IOC

5 responses so far ↓

  • 1 roberto // May 15, 2008 at 6:36 am

    First of all, i would like to say that i appreciate this website, as it is always on top of any breaking news and gives for the most part unbiased accounts. I say “for the most part” only because I understand the enthusiasm. … In your opinion, what if anything should stop IOC from toping 30 tomorrow? All news the past week has been positive, perhaps not as positive as some expected but everything on the positive side of the scale.

  • 2 admin // May 15, 2008 at 3:20 pm

    Thanks for the compliment. We try to state as we see, we might not always get it right, and predicting stockprices at such short term is, well, quite difficult. Having said that, we think there is a reasonable chance.

  • 3 Xaveiro // May 15, 2008 at 5:22 pm

    I agree wholeheartedly with Roberto’s comments. This website kicks ass. I have been following IOC for a long time and this is the only website that gives you all the important up-to-date information and trends in only one site. Thank you and keep up the good work!

  • 4 phil // May 15, 2008 at 9:54 pm

    It took around 2 weeks to drill down to c. 60m. Assuming drill rates are constant it would take longer than another couple of weeks to drill down to 200m. Is this a fair assumption to make, or do things speed up the deeper one goes?

  • 5 admin // May 15, 2008 at 11:13 pm

    We think it can be a little faster than that, the DST test took time and also Hamilton (CEO of Liquid Niugini) argued that they were doing in the order of 30 meter a day, we reported that a couple of days ago.