InterOil Corporation announced financial and operating results for the third quarter ended September 30, 2011 .
Third Quarter 2011 Highlights and Recent Developments
InterOil Chief Executive Officer Phil Mulacek commented, “ We are pleased to be working with internationally-recognized advisors to seek proposals from potential strategic partners. While we look forward to a prompt conclusion to this process and to our discussions with the PNG Government concerning the Gulf LNG Project, we continue to pre-invest in our Gulf LNG Project and the civil works and the front-end engineering and design . We believe that the considerable strengthening of the Asian LNG market, the increased interest in exploration and investment in Papua New Guinea , as well as the Company’s reservoir analysis and project design fundamentals, will yield a successful result from the partnering process. We continue to negotiate LNG offtake agreements and are working with a number of parties with this aim .”
“ We look forward to spudding the Triceratops 2 well and expect to do so towards the end of this fourth quarter. The phase three seismic program has improved our structural model of the prospect and increased our optimism for a successful confirmation with the drill bit. In addition, our exploration activities are maturing our prospect inventory .”
Corporate Financial Results
The net loss for the quarter ended September 30, 2011 was $19.8 million compared with a net loss of $14.4 million for the same quarter of 2010, an increase in the loss of $5.4 million . The results for the quarter ended September 30, 2011 were affected by lower gross margins of $13.4 million due to lower crack spreads on our export products during the quarter and inventory write downs due to a fall in crude and product prices at the end of the third quarter of 2011, expensed seismic costs were higher by $5.5 million compared with the prior year quarter, and the recognition of a loss on Flex LNG investment of $6.0 million due to fall in its quoted share price.
InterOil’s earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the quarter ended September 30, 2011 was a loss of $11.5 million , compared with a loss of $8.6 million for the same period in 2010, an increase in the loss of $2.9 million . Total revenue increased by $73.4 million from $208.5 million in 2010 to $281.9 million for the third quarter ended September 30, 2011 .
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LNG World News Staff, November 15, 2011; Image: InterOil