Interra Resources announced that for the third quarter of 2008, the Group generated a net profit after tax of US $0.65 million compared to US $0.49 million in Q2 2008.
Revenue of US $4.75 million in Q3 2008 was consistent with the preceding quarter, however, the cost of production increased by almost 12% due to increases in the rental cost of a workover rig, higher fuel costs and spare parts. Administration expenses decreased almost 20% compared to the previous quarter. A foreign exchange loss of US $0.14 million was incurred which arose due to the weakening of the Thai Baht, Singapore Dollar and Australian Dollar compared to the United States Dollar. The Group’s accounts are maintained in USD except for one subsidiary, Interra Resources (Thailand) Limited, which must maintain its accounts in Thai Baht.
There was a net cash outflow for the quarter of approximately US $1.90 million due mainly to the expenditure related to the planned drilling of new wells in Myanmar and Indonesia. The Group is pleased to report a continued improvement in the payment frequency of its accounts receivable in Myanmar. As at the date of this report, the Group had received payment of 12 months of outstanding invoices during 2008. During 2007, 10 payments were received.
The Group's financial position remains sound with no debt outstanding. Cash on hand as at September 30, 2008 was US $18.88 million. The final quarter of the year will be capital intensive due to planned drilling activities and production equipment upgrades in Myanmar and Indonesia. On September 28, 2008, the bank guarantee in favour of the Thailand Ministry of Energy for block L17/48 in Thailand was reduced from US $3.29 million to US $2.06 million.
Most Popular Articles
From the Career Center
Jobs that may interest you