InterOil Q1 Profit Surges On One-off Gain - Update

(RTTNews) - Singapore-based oil and gas company InterOil Corp. (IOC) Wednesday reported a sharp increase in the first-quarter profit, reflecting a one-off gain on transaction with French oil and gas giant Total SA (TTA.L, TTFNF.PK, TOT). Quarterly revenues declined with lower sales volumes.

The company's net profit surged to $318.64 million from $4 million last year, mainly driven by a $340.5 million gain from sale of an interest in Petroleum Retention License 15 or PRL15 to Total S.A. on March 26, 2014.

It was in last December that InterOil agreed to sell 61.3 percent interest in PRL15 to Total S.A for up to $3.6 billion. The area contains the Elk-Antelope gas fields in the Gulf Province of Papua New Guinea.

On a per share basis, earnings were $6.38, compared to $0.08 per share a year earlier. Two analysts polled by Thomson Reuters expected loss per share of $0.02 for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter declined to $311.08 million from $350.33 million in the year-ago period, reflecting lower sales volumes.

Total volume of all products sold was 1.9 million barrels compared with 2.4 million in the same quarter last year, due to timing of refinery exports.

Investments in Upstream and Midstream Liquefaction resulted in a net profit of $310 million, compared to a net loss of $14.5 million last year.

Corporate, Refining and Downstream segments collectively derived a net profit for the quarter of $8.6 million, lower than $18.5 million in the prior year.

Chief Financial Officer Don Spector said, "Despite slower retail and wholesale demand in Papua New Guinea coupled with a weakening PNG kina, our refinery enjoyed higher margins driving a small, but positive net profit. Our downstream business saw a drop in volume sold but continued to enjoy a stable $6 million net profit."

IOC closed Tuesday's regular trading at $60.72 on the NYSE. In the pre-market activity on Wednesday, the shares are up 2.32 percent.