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(Oslo, 22 May 2012) InterOil recorded operating revenues of USD 37.6 million in Q1 2012, down 4% quarter on quarter. EBITDA for the period was influenced by a tax refund of USD 9.1 million, and came in at USD 31.8 million. The company recorded a profit before tax of USD 6.5 million in Q1 2012.
InterOil's production in Q1 2012 decreased by 8% compared to 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% lower production, revenues decreased only 3.6% compared to prior quarter, due to higher oil prices. The EBITDA of USD 31.8 million is USD 7.8 million higher than in prior quarter, mainly due to a tax refund of USD 9.1 million which was recorded in the first quarter.
InterOil had net financial expense of USD 14.0 million in the first quarter of 2012. Losses related to oil hedge contracts accounted for USD 6.4 million, of which realized losses amounted to USD 6.8 million and the unrealized gain was USD 0.4 million. Interest expenses amounted to USD 2.9 million, while realized/unrealized exchange rate losses were USD 4.1 million.
Total comprehensive income for the first quarter was USD 3.4 million after income tax of USD 3.0 million compared to a net loss of USD 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 3 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 Q4. The drilling campaign at Mana is planned to commence in September 2012.
Detailed information on the operational and financial activities of InterOil is presented in InterOil's Q1 2011 report enclosed.
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InterOil Exploration & Production ASA is a Norwegian based exploration and production company - listed on the Oslo Stock Exchange - with focus on Latin-America. The company is operator of several production and exploration assets in Peru, Colombia and Ghana. InterOil currently employs approximately 280 people and is headquartered in Oslo.