InterOil Sees Decline in Production and Revenues in 1Q 2012
Norway's InterOil Exploration & Production reported Wednesday that its operating revenues for the first quarter of 2012 were, at $37.6 million, down four percent quarter on quarter. EBITDA for the period was affected by a tax refund of $9.1 million and came in at $31.8 million, with the company producing a profit before tax of $6.5 million for 1Q 2012.
InterOil's production in 1Q 2012 decreased by 8 percent compared to the prior quarter. The continued fall in production reflects the reduced investments in Peru until the license process has been resolved.
In addition, heavy rain forced a shut-in of production in Peru, and the Toqui-Touqui and the Puli B licenses in Colombia were returned to Ecopetrol in February 2012. Despite 8 percent lower production, revenues decreased only 3.6 percent compared to the prior quarter, due to higher oil prices.
The EBITDA of $31.8 million is $7.8 million higher than in prior quarter, mainly due to a tax refund of $9.1 million which was recorded in the first quarter.
InterOil had net financial expense of $14.0 million in 1Q 2012. Losses related to oil hedge contracts accounted for $6.4 million, of which realized losses amounted to $6.8 million and the unrealized gain was $0.4 million. Interest expenses amounted to $2.9 million, while realized/unrealized exchange rate losses were $4.1 million.
Total comprehensive income for the first quarter was $3.4 million after income tax of $3.0 million compared to a net loss of $22.9 million in the same quarter prior year.
InterOil Peru started in December 2011 negotiations for a 30 years joint venture of Block III and IV with the state oil company, Petroperu. The Joint Venture negotiations are continuing in good faith and for the time being the parties have agreed to full confidentiality during the process.
Due to the rapidly falling production in Peru, InterOil plans to drill three wells at the San Luis field during the second quarter of 2012. Further drilling will be dependent on the final outcome of the JV negotiations with Petroperu.
In Colombia, InterOil plans to drill at least two wells in Altair and four wells in Mana in 2012. InterOil started the drilling of the Mizar-1 exploration well in Altair end April and plans to complete this well during the second quarter 2012. The next well at the Altair license is planned to be drilled during the dry season in 4Q 2012. The drilling campaign at Mana is planned to commence in September 2012.
Most Popular Articles
From the Career Center
Jobs that may interest you