2009-11-05 00:33:01 -
HOUSTON, TEXAS AND CAIRNS, AUSTRALIA -- (Marketwire) -- 11/04/09 -- InterOil Corporation (NYSE: IOC) (POMSoX: IOC) announces financial results for the third quarter ending September 30, 2009. For the quarter, InterOil reported net income of $7.9 million ($0.18 per share), $1.3 million less than the same quarter in the prior year. Earnings before Interest, Taxes, Depreciation and Amortization (1) ("EBITDA") for the quarter totalled $14.6 million, a reduction of $2.2 million over 2008 third quarter EBITDA of $16.8 million. Third quarter 2009 results include a $4.6 million gain on sale of oil and gas properties.
Business Segment Results
During the quarter, the Midstream Refining business generated a net profit of $3.8 million, compared with a net profit $12.7 million for the same quarter in 2008. Throughput averaged 19,657 barrels per day in the second quarter of 2009 versus 22,463 in the comparable period a year ago. Throughput per day has been calculated excluding days the refinery was not in operation. Premium margin distillates were 60% of production in the current quarter, up from 55% in the same period a year ago. Refining EBITDA in the quarter totalled $8.2 million, down from $17.5 million in the previous year which included a $11.4 million derivative gain.
The Company's Midstream Liquefaction segment posted a net loss of $2.5 million for the quarter, being our share of expenses incurred by the PNG LNG Inc. joint venture during the quarter to progress the Liquefied Natural Gas (LNG) project in Papua New Guinea.
The Downstream segment derived a net profit of $3.4 million, compared with a loss of $0.9 million in the third quarter of 2008. Downstream EBITDA in the quarter totalled $4.8 million compared to a loss of $1.0 million in the prior year period. During the 2009 third quarter, refined product sales volumes totalled 154.9 million liters versus 138.0 million liters in the prior year period. Increase in gross margin was mainly due to the positive effect of product price movements as applied to the inventory sold during the period.
During the third quarter, the Upstream business segment generated a net profit of $1.8 million which included a $4.6 million gain on buyback of 4.3364% IPI interest, an improvement from a loss of $1.0 million in the comparable 2008 quarter.
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Quarters ended 2009
($ thousands except
per share data) Sep-30 Jun-30 Mar-31
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Upstream 1,011 660 611
Midstream - Refining 141,295 114,347 145,523
Midstream - Liquefaction 1 2 4
Downstream 107,712 85,472 78,572
Corporate 10,087 8,640 7,753
Consolidation entries (86,509) (60,625) (70,801)
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Sales and operating revenues 173,597 148,496 161,662
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Upstream 4,101 (669) (469)
Midstream - Refining 8,199 14,134 14,747
Midstream - Liquefaction (2,120) (1,378) (2,361)
Downstream 6,542 4,150 3,241
Corporate 1,980 1,897 3,051
Consolidation entries (4,093) (277) (7,285)
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Earnings before interest, taxes,
depreciation and amortization (1) 14,609 17,857 10,924
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Upstream 1,805 (2,382) (2,133)
Midstream - Refining 3,762 9,624 10,350
Midstream - Liquefaction (2,481) (1,765) (2,552)
Downstream 3,440 1,742 964
Corporate 1,602 (677) 349
Consolidation entries (237) 2,895 (4,332)
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Net profit/(loss) per segment 7,891 9,437 2,646
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Net profit/(loss) per share
(dollars)
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Per Share - Basic 0.19 0.25 0.07
Per Share - Diluted 0.18 0.24 0.07
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Quarters ended 2008 2007
($ thousands except
per share data) Dec-31 Sep-30 Jun-30 Mar-31 Dec-31
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Upstream 487 698 895 618 579
Midstream - Refining 194,617 216,750 197,864 176,973 137,509
Midstream - Liquefaction 23 35 19 13 26
Downstream 128,540 172,528 140,467 116,048 118,495
Corporate 9,591 8,415 8,334 8,531 7,352
Consolidation entries (114,691) (134,695) (102,566) (109,767) (91,129)
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Sales and operating
revenues 218,567 263,731 245,013 192,416 172,832
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Upstream (2,483) 231 10,164 (1,135) (3,128)
Midstream - Refining (13,976) 17,515 16,329 5,724 9,589
Midstream - Liquefaction (2,501) (1,570) (1,784) (1,636) (797)
Downstream (7,244) 610 7,893 4,529 3,627
Corporate 226 764 (2,155) 1,796 2,145
Consolidation entries (2,866) (737) (3,092) (2,143) (4,540)
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Earnings before interest,
taxes, depreciation and
amortization (1) (28,844) 16,813 27,355 7,135 6,896
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Upstream (4,003) (1,040) 9,189 (1,993) (3,736)
Midstream - Refining (19,490) 12,660 11,344 202 2,990
Midstream - Liquefaction (2,597) (1,677) (1,909) (1,728) (877)
Downstream (5,901) (886) 3,383 2,197 670
Corporate (2,275) (1,759) (5,164) (1,390) (883)
Consolidation entries 36 1,929 (1,240) 314 (877)
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Net profit/(loss) per
segment (34,230) 9,227 15,603 (2,398) (2,713)
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Net profit/(loss) per
share (dollars)
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Per Share - Basic (0.96) 0.26 0.48 (0.08) (0.09)
Per Share - Diluted (0.96) 0.22 0.40 (0.08) (0.09)
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Liquidity and Capital Resources
Our financial position continued to improve during the current quarter. Our debt-to-capital ratio was reduced to 12% in September 2009 from 35% in September 2008. This reduction in gearing levels was mainly due to the conversion of $95.0 million 8% convertible subordinated debentures issued in May 2008 and the completion of the $70.4 million registered direct stock offering completed in June 2009.
Summary of Debt Facilities
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Balance outstanding
Organization Facility September 30, 2009 Maturity date
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OPIC secured loan $ 58,000,000 $58,000,000 December 2015
BNP Paribas working
capital facility $190,000,000 $ 0 (1) November 2009
Westpac working
capital facility $ 29,120,000 $ 1,132,029 October 2011
BSP working capital
facility $ 18,200,000 $ 0 August 2010
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(1) Excludes letters of credit outstanding of $105.5 million
As at September 30, 2009, we had cash, cash equivalents and cash restricted of $88.6 million (September 2008 - $78.7 million), of which $21.4 million (September 2008 - $31.8 million) was restricted pursuant to the BNP Paribas working capital facility utilization requirements and $6.5 million (September 2008 - nil) was restricted as cash deposit on the OPIC secured loan. Our cash outflows from operations for the quarter were $27.5 million compared with an inflow of $7.9 million for the quarter ended September 30, 2008. The outflow during the current quarter was due to the timing of crude payments and product purchases. Cash inflows of $51.2 million were generated for the nine months to September 30, 2009 compared to an outflow of $14.6 million for the same period of 2008. The improved cash flows from operations for the year to date period were mainly due to improved margins generated in the refinery and downstream operations, release of working capital in a lower crude and product price environment, and cash received on the close out of long term hedges.
###PRECONTENT2### NON-GAAP EBITDA Reconciliation
Gross Margin is a non-GAAP measure and is 'sales and operating revenues' less 'cost of sales and operating expenses'.
###PRECONTENT3### Earnings before interest, taxes, depreciation and amortization, commonly referred to as EBITDA, represents our net income/(loss) plus total interest expense (excluding amortization of debt issuance costs), income tax expense, depreciation and amortization expense. EBITDA is used by us to analyze operating performance. EBITDA does not have a standardized meaning prescribed by United States or Canadian generally accepted accounting principles and, therefore, may not be comparable with the calculation of similar measures for other companies. The items excluded from EBITDA are significant in assessing our operating results. Therefore, EBITDA should not be considered in isolation or as an alternative to net earnings, operating profit, net cash provided from operating activities and other measures of financial performance prepared in accordance with GAAP. Further, EBITDA is not a measure of cash flow under GAAP and should not be considered as such. For reconciliation of EBITDA to the net income (loss) under GAAP, refer to the following table.
The following table reconciles net income (loss), a GAAP measure, to EBITDA, a non-GAAP measure for each of the last eight quarters.
###PRECONTENT4### COMPANY DESCRIPTION
InterOil Corporation is developing a vertically integrated energy business whose primary focus is Papua New Guinea and the surrounding region. InterOil's assets consist of petroleum licenses covering about 4.6 million acres, an oil refinery, and retail and commercial distribution facilities, all located in Papua New Guinea. In addition, InterOil is a shareholder in a joint venture established to construct an LNG plant on a site adjacent to InterOil's refinery in Port Moresby, Papua New Guinea. The Company is headquartered in Cairns, Australia and has offices in Houston, Texas, Port Moresby, Papua New Guinea and Singapore. InterOil's common shares trade on the NYSE in US dollars.
Contacts:
InterOil Corporation
Wayne Andrews
V. P. Capital Markets
(281) 292-1800
Wayne.Andrews@InterOil.com :
InterOil Corporation
Anesti Dermedgoglou
V.P. Investor Relations
+61 7 4046 4600
Anesti@InterOil.com :
www.interoil.com :
