InterOil advised that its un-audited EBITDA, (Earnings before Interest, Taxes, Depreciation and Amortization) is in the range between $22 million and $26 million, an improvement over 2007 EBITDA of US $5 million.
The EBITDA and Net Profit After Tax (NPAT) were impacted by the rapid decline in crude oil prices, from over US$90 per barrel in September to approximately US$50 per barrel at quarter end, which resulted in inventory revaluation losses in the fourth quarter of approximately $52 million. These losses were reduced by hedging gains of approximately $28 million. A further $15 million in long term diesel hedge profits was realized in January 2009, having been hedge accounted for as at December 31, 2008, and which will consequently improve our 2009 NPAT. Our revised 2008 year NPAT outlook on a consolidated basis is a loss ranging between $9 and $13 million, which is an improvement over the 2007 NPAT loss of $29 million.
"Despite an extremely difficult quarter for the entire industry, we are pleased that the hedging controls in place have offset the massive swing in crude oil prices and the subsequent effect on our product prices and margins," said Chief Executive Officer, Mr. Phil Mulacek.
Mr. Collin Visaggio, Chief Financial Officer, noted, "Although crude price falls have had an effect on our quarterly and annual financials, while spread over two reporting periods the net result is an example of the prudence of our hedging strategy which has covered a significant portion of our inventory losses."
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