InterOil Turns To Profit In Q2 On One-time Gain, Higher Revenues

(RTTNews) - Singapore-based oil and gas company InterOil Corp. (IOC) on Wednesday reported a turnaround to profit in the second quarter, boosted by higher revenues and a one-time gain from the sale of the company's refinery and downstream business. However, loss per share from continuing operations were flat with last year.

The company's net profit for the second quarter was $52.27 million or $1.05 per share, compared to net loss of $13.23 million or $0.27 per share in the year-ago period.

On average, three analysts polled by Thomson Reuters expected the company to report earnings of $0.11 per share for the quarter. Analysts' estimates typically exclude one-time items.

The improved earnings results were mainly attributable to a one-time gain of $49.5 million from the sale of the refinery and downstream businesses to Singapore-based Puma Energy Group Pte.

In late June, InterOil completed the sale of companies holding its refinery and downstream businesses in Papua New Guinea to Puma Energy for $525.6 million, which included adjustments for cash and working capital.

Meanwhile, loss from continuing operations for the quarter was $15.76 million or $0.31 per share, compared to loss from continuing operations of $15.24 million or $0.31 per share in the year-ago period.

Revenues for the quarter surged to $13.69 million from $831 thousand in the year-ago period.

However, total sales volume for the quarter was 0.8 million barrels, down from 1.3 million barrels in the year-ago period.

In the company's midstream-refining segment, the average daily throughput, excluding shutdown days, declined 8 percent to 27,222 barrels per day or bblspd, from 29,501 bblspd in the year-ago period. Capacity utilization of the refinery for the quarter was 68 percent, down from 74 percent in the year-ago period.

In the downstream-wholesale and retail distribution segment, total sales volume for the quarter increased 3.1 percent from last year to 184.7 million liters.

InterOil said that its preparations were well advanced for spudding the Antelope-4 and Antelope-5 appraisal wells with well pads and camps complete. The company expects certification to be completed in 2015.

The company also said it was continuing drilling of Raptor-1 in PPL 475 and Bobcat-1 in PPL 476, and will advise of the drilling results as soon as they become available.

IOC is trading at $56.04, down $1.89 or 3.26 percent on a volume of 150,798 shares.