InterOil Announces 2013 Results
Focus Now on LNG Partnership and Drilling Program
SINGAPORE and PORT MORESBY, Papua New Guinea, March 31, 2014 /PRNewswire/ -- InterOil Corporation (NYSE:IOC; POMSoX:IOC) (the "Company") announced today record revenues and products sold in its financial results for the full year ending December 31, 2013.
The year also resulted in new leadership at InterOil and agreement with Total S.A. of France to develop the multi-billion-dollar Elk-Antelope gas field in Papua New Guinea.
In March this year, InterOil also launched the start of a new US$300 million drilling program across four new petroleum prospecting licenses ("PPLs").
Front Rank of Asian Energy Companies
InterOil's Chief Executive, Dr. Michael Hession, said: "This past year was a milestone for InterOil. With new leadership and management, we moved quickly to bring greater stability to our operations in a way that would translate into improved performance and greater market confidence.
"Crucial to this was securing agreement with an oil major to develop on the Elk-Antelope gas field in Petroleum Retention License 15.
"In October 2013, the board approved InterOil's largest exploration and appraisal program and one of the biggest in Papua New Guinea's history. We then accelerated preparation for exploration wells on our PPLs so we could drill as soon as we received the government approval.
"In March this year, approval was given and we successfully acquired the rights to the same acreage as we previously held, for the next six years.
"In March this year, we closed the sales and purchase agreement with Total S.A. of France to develop Elk-Antelope as a multi-billion-dollar LNG project for Papua New Guinea.
"These developments, together with our oil refinery and distribution businesses, position InterOil among the front rank of Asian energy companies.
The Right Team at the Right Time
"To deliver on this potential and realize the value of these assets, we have assembled an experienced, talented management team. In the final months of the year, new senior executives stepped into roles that they would formally assume early in 2014.
"InterOil's growth and success depend heavily on the quality of this senior team to guide our exceptional staff and oversee our energy assets and I am confident that we now have the right team to realize InterOil's full potential.
"We also took significant steps to streamline our operations, bearing down on costs and rationalizing our offices and staffing. We announced the closure by the end of 2014 of our Cairns office, with the transfer of most functions to our office in Port Moresby. Though painful, it was important to align InterOil and ensure we focus our human and financial resources where they can have the greatest impact.
Operating Growth, Developing Growth, Future Growth
"These steps are integral to the strategy that I laid out on my appointment in July.
"This strategy has three horizons, detailing our vision to be a world-class company developing world-class resources with world-class people who have a passion for working together, doing good work and making a difference.
"Horizon One is operating growth: running an efficient and financially stable business, with capital to support investment, low costs, strong skills and capacity, and streamlined processes.
"Horizon Two is developing growth: monetizing our gas resources through partnerships with world-class operators.
"Horizon Three is future growth: investing in new exploration across frontier regions in Papua New Guinea and the region and being a partner or operator of choice for new ventures.
Cash in Hand to Pursue an Aggressive Drilling Program
"In short, we want to make the most of what we already have; turn probable opportunities into realities; and work our possibilities hard so they can become realities.
"This year, we took important steps towards each horizon. The business, at year's end, was stable, assets were being monetized, and we had scaled-up our exploration work.
"The receipt of $401 million as part of the completion of the Total agreement will leave us with a well-capitalized balance sheet to aggressively pursue our exploration program.
"We ended 2013 in excellent shape, and begin 2014 in a position to make InterOil the company its staff, management, shareholders, and other stakeholders, want it to be and know it can be."
Financial Highlights
- Financial and operating results for the fourth quarter and full year ended December 31, 2013, showed record revenues of $1,400 million (2012: $1,321 million) on the back of record total products sold of 9.4 MMbbls (2012: 8.5 MMbbls), an 11% increase from the year before and the largest volume ever sold by the Company. This included a record throughput of 27,999 barrels per day (bbls/d) from the refinery (2012: 24,483 bbls/d) and 738 million liters of downstream sales (2012:753 million liters). At December 31, 2013, the Company continued to operate the only refinery in Papua New Guinea and was the largest downstream and retail distributor with 52 service stations, 18 depots and 12 aviation sites.
- During 2013, investments in development of Upstream and Midstream Liquefaction resulted in a net loss of $75.1 million (2012: net loss of $59.6 million). This was balanced by Corporate, Refining and Downstream collectively recording a net profit for the year of $34.7 million (2012: $61.2 million). The consolidated $40.4 million net loss compared to a $1.6 million profit in 2012 was mainly driven by the Papua New Guinea kina depreciating 13% against the US Dollar leading to a consolidated $41.2 million in exchange rate losses.
- At December 31, 2013, the Company had cash, cash equivalents and cash restricted totaling $115.2 million (December 31, 2012: $98.7 million), of which $53.2 million is restricted (December 31, 2012: $49.0 million). In addition, the Company had aggregate undrawn facilities of $308.0 million, including $150.0 million in relation to a Credit Suisse facility to fund the Company's current exploration program, and $158.0 million of working capital facilities to fund the operating business. The Company's gearing levels measured by the debt-to-capital ratio was 26% in December 2013 from 19% in December 2012.
Conference Call Information
The full text of the news release and accompanying financials are available on the company's website at www.interoil.com.
A conference call will be held on March 31, 2014, at 8:30 a.m. US Eastern time (8:30 p.m. Singapore) to discuss the financial and operating results, the development of PRL15, the new drilling program and as well as the company's outlook.
The conference call can be heard through a live audio web cast on the company's website at www.interoil.com or accessed by dialing (800) 230-1096 in the US, or +1-(612) 332-0107 from outside the US.
A replay of the broadcast will be available soon afterwards on the website.
| Summary of Consolidated Quarterly Financial Results for Past Eight Quarters |
||||||||
| Quarters ended |
2013 |
2012 |
||||||
| ($ thousands except per share data) |
Dec-31 |
Sep-30 |
Jun-30 |
Mar-31 |
Dec-31 |
Sep-30 |
Jun-30 |
Mar-31 |
| Upstream |
1,731 |
1,918 |
2,533 |
1,862 |
4,136 |
2,216 |
1,727 |
2,284 |
| Midstream – Refining |
353,749 |
251,725 |
289,300 |
305,172 |
301,925 |
274,671 |
236,006 |
302,310 |
| Midstream – Liquefaction |
181 |
- |
20,089 |
- |
- |
- |
- |
- |
| Downstream |
213,835 |
215,651 |
199,470 |
208,046 |
220,512 |
201,749 |
223,620 |
218,974 |
| Corporate |
31,832 |
31,714 |
36,201 |
34,923 |
37,552 |
26,880 |
24,742 |
24,757 |
| Consolidation entries |
(202,426) |
(195,773) |
(201,932) |
(199,672) |
(207,686) |
(178,652) |
(186,991) |
(210,174) |
| Total revenues |
398,902 |
305,235 |
345,661 |
350,331 |
356,439 |
326,864 |
299,104 |
338,151 |
| Upstream |
(19,974) |
(2,842) |
(19,478) |
(1,311) |
(873) |
956 |
(5,730) |
(6,374) |
| Midstream – Refining |
10,246 |
(3,562) |
840 |
12,701 |
12,370 |
13,417 |
(42,647) |
18,933 |
| Midstream – Liquefaction |
87 |
2,550 |
19,850 |
(123) |
192 |
11 |
672 |
(1,410) |
| Downstream |
14,366 |
14,962 |
7,542 |
10,062 |
12,258 |
9,275 |
11,102 |
21,414 |
| Corporate |
6,055 |
13,446 |
1,745 |
10,044 |
14,133 |
9,841 |
9,975 |
9,188 |
| Consolidation entries |
(16,082) |
(14,647) |
(11,146) |
(13,418) |
(12,199) |
(14,503) |
(9,871) |
(14,216) |
| EBITDA (1) |
(5,302) |
9,907 |
(647) |
17,955 |
25,881 |
18,997 |
(36,499) |
27,535 |
| Upstream |
(33,535) |
(16,206) |
(32,046) |
(13,774) |
(13,081) |
(10,936) |
(15,532) |
(17,244) |
| Midstream – Refining |
74 |
(11,074) |
(4,675) |
5,855 |
13,401 |
5,358 |
(32,969) |
11,320 |
| Midstream – Liquefaction |
(430) |
2,373 |
19,284 |
(681) |
(394) |
(573) |
93 |
(1,969) |
| Downstream |
9,237 |
9,435 |
4,346 |
6,005 |
7,716 |
5,626 |
6,045 |
13,195 |
| Corporate |
2,787 |
10,780 |
(1,701) |
7,342 |
10,519 |
7,849 |
8,445 |
6,270 |
| Consolidation entries |
(2,946) |
(1,626) |
1,562 |
(744) |
384 |
(1,988) |
2,205 |
(2,136) |
| Net (loss)/profit |
(24,813) |
(6,318) |
(13,230) |
4,003 |
18,545 |
5,336 |
(31,713) |
9,436 |
| Net (loss)/profit per share (dollars) |
||||||||
| Per Share – Basic |
(0.51) |
(0.13) |
(0.27) |
0.08 |
0.38 |
0.11 |
(0.66) |
0.20 |
| Per Share – Diluted |
(0.51) |
(0.13) |
(0.27) |
0.08 |
0.38 |
0.11 |
(0.66) |
0.19 |
| (1) |
EBITDA is a non-GAAP measure and is reconciled to IFRS under the heading "Non-GAAP Measures and Reconciliation" in our MD&A filed on www.sedar.ca and with the SEC". |
| InterOil Corporation |
|||||
| Consolidated Balance Sheets |
|||||
| (Expressed in United States dollars) |
|||||
| As at |
|||||
| December 31, |
December 31, |
December 31, |
January 1, |
||
| 2013 |
2012 |
2011 |
2011 |
||
| $ |
$ (revised) * |
$ (revised) * |
$ (revised) * |
||
| Assets |
|||||
| Current assets: |
|||||
| Cash and cash equivalents (note 5) |
61,966,539 |
49,720,680 |
68,575,269 |
232,424,858 |
|
| Cash restricted (note 7) |
36,149,544 |
37,340,631 |
32,982,001 |
40,664,995 |
|
| Short term treasury bills - held-to-maturity (note 7) |
- |
- |
11,832,110 |
- |
|
| Trade and other receivables (note 8) |
98,638,110 |
161,578,481 |
137,796,513 |
49,004,667 |
|
| Derivative financial instruments (note 7) |
- |
233,922 |
595,440 |
- |
|
| Other current assets |
1,054,847 |
832,869 |
862,049 |
498,302 |
|
| Inventories (note 9) |
158,119,181 |
194,871,339 |
171,071,799 |
127,137,360 |
|
| Prepaid expenses |
8,125,270 |
8,517,340 |
5,477,596 |
3,593,574 |
|
| Total current assets |
364,053,491 |
453,095,262 |
429,192,777 |
453,323,756 |
|
| Non-current assets: |
|||||
| Cash restricted (note 7) |
17,065,000 |
11,670,463 |
6,268,762 |
6,613,074 |
|
| Plant and equipment (note 10) |
244,383,962 |
255,031,257 |
246,031,378 |
225,166,865 |
|
| Oil and gas properties (note 11) |
584,807,023 |
510,669,431 |
362,852,766 |
255,294,738 |
|
| Deferred tax assets (note 12) |
48,230,688 |
63,526,458 |
35,965,273 |
28,477,690 |
|
| Other non-current receivables (note 18) |
29,700,534 |
5,000,000 |
- |
- |
|
| Investments accounted for using the equity method (note 24) |
17,557,838 |
- |
- |
- |
|
| Available-for-sale investments (note 13) |
- |
4,304,176 |
3,650,786 |
- |
|
| Total non-current assets |
941,745,045 |
850,201,785 |
654,768,965 |
515,552,367 |
|
| Total assets |
1,305,798,536 |
1,303,297,047 |
1,083,961,742 |
968,876,123 |
|
| Liabilities and shareholders' equity |
|||||
| Current liabilities: |
|||||
| Trade and other payables (note 14) |
134,027,347 |
178,313,483 |
156,598,973 |
72,521,373 |
|
| Income tax payable |
17,087,974 |
11,977,681 |
4,085,137 |
955,074 |
|
| Derivative financial instruments (note 7) |
1,869,253 |
- |
11,457 |
178,578 |
|
| Working capital facilities (note 15) |
36,379,031 |
94,290,479 |
16,480,503 |
51,254,326 |
|
| Unsecured loan and current portion of secured loans (note 16) |
134,775,077 |
31,383,115 |
19,393,023 |
14,456,757 |
|
| Current portion of Indirect participation interest (note 17) |
12,097,363 |
15,246,397 |
540,002 |
540,002 |
|
| Total current liabilities |
336,236,045 |
331,211,155 |
197,109,095 |
139,906,110 |
|
| Non-current liabilities: |
|||||
| Secured loans (note 16) |
65,681,425 |
89,446,137 |
26,037,166 |
34,813,222 |
|
| 2.75% convertible notes liability (note 21) |
62,662,628 |
59,046,581 |
55,637,630 |
52,425,489 |
|
| Deferred gain on contributions to LNG project (note 24) |
- |
5,191,101 |
4,700,915 |
4,694,936 |
|
| Indirect participation interest (note 17) |
7,449,409 |
16,405,393 |
34,134,840 |
34,134,387 |
|
| Other non-current liabilities (note 18) |
96,000,000 |
20,961,380 |
- |
- |
|
| Asset retirement obligations (note 19) |
4,948,017 |
4,978,334 |
4,562,269 |
- |
|
| Deferred tax liabilities (note 12) |
- |
- |
1,889,391 |
- |
|
| Total non-current liabilities |
236,741,479 |
196,028,926 |
126,962,211 |
126,068,034 |
|
| Total liabilities |
572,977,524 |
527,240,081 |
324,071,306 |
265,974,144 |
|
| Equity: |
|||||
| Equity attributable to owners of InterOil Corporation: |
|||||
| Share capital (note 20) |
953,882,273 |
928,659,756 |
905,981,614 |
895,651,052 |
|
| Authorized - unlimited |
|||||
| Issued and outstanding - 49,217,242 |
|||||
| (Dec 31, 2012 - 48,607,398) |
|||||
| (Dec 31, 2011 - 48,121,071) |
|||||
| 2.75% convertible notes (note 21) |
14,297,627 |
14,298,036 |
14,298,036 |
14,298,036 |
|
| Contributed surplus (note 20) |
26,418,658 |
21,876,853 |
25,644,245 |
16,738,417 |
|
| Accumulated Other Comprehensive Income |
4,541,913 |
25,032,953 |
29,380,882 |
9,261,177 |
|
| Conversion options (note 17) |
- |
12,150,880 |
12,150,880 |
12,150,880 |
|
| Accumulated deficit |
(266,319,459) |
(225,961,512) |
(227,565,221) |
(245,217,682) |
|
| Total equity attributable to owners of InterOil Corporation |
732,821,012 |
776,056,966 |
759,890,436 |
702,881,880 |
|
| Non-controlling interest |
- |
- |
- |
20,099 |
|
| Total equity |
732,821,012 |
776,056,966 |
759,890,436 |
702,901,979 |
|
| Total liabilities and equity |
1,305,798,536 |
1,303,297,047 |
1,083,961,742 |
968,876,123 |
|
| See accompanying notes to the consolidated financial statements |
|||||
| * Revised to effect transition to IFRS 11 - Joint arrangements, refer note 2(c)(ii) for further information |
| InterOil Corporation |
|||
| Consolidated Income Statements |
|||
| (Expressed in United States dollars) |
|||
| Year ended |
|||
| December 31, |
December 31, |
December 31, |
|
| 2013 |
2012 |
2011 |
|
| $ |
$ (revised)* |
$ (revised)* |
|
| Revenue |
|||
| Sales and operating revenues |
1,395,698,906 |
1,308,051,816 |
1,106,533,853 |
| Interest |
81,699 |
247,882 |
1,356,122 |
| Other |
4,347,963 |
12,257,833 |
11,058,090 |
| 1,400,128,568 |
1,320,557,531 |
1,118,948,065 |
|
| Changes in inventories of finished goods and work in progress |
(36,752,158) |
23,799,540 |
43,934,439 |
| Raw materials and consumables used |
(1,222,760,734) |
(1,242,987,054) |
(1,064,866,361) |
| Administrative and general expenses |
(37,664,297) |
(40,576,580) |
(40,188,605) |
| Derivative (losses)/gains |
(6,157,231) |
(4,229,190) |
2,006,321 |
| Legal and professional fees |
(11,169,769) |
(5,187,704) |
(5,150,107) |
| Exploration costs, excluding exploration impairment (note 11) |
(18,793,902) |
(13,901,558) |
(18,435,150) |
| Finance costs |
(28,603,278) |
(28,614,981) |
(18,163,769) |
| Depreciation and amortization |
(23,411,336) |
(21,855,228) |
(20,111,016) |
| Gain on conveyance of oil and gas properties (note 11) |
500,071 |
4,418,170 |
- |
| Gain/(loss) on available-for-sale investment (note 13) |
3,719,907 |
- |
(3,420,406) |
| Foreign exchange (losses)/gains |
(41,209,608) |
(40,260) |
25,031,788 |
| Share of net profit/(loss) of joint venture partnership accounted for using the equity method (note 24) |
2,275,090 |
(490,186) |
(2,662,204) |
| (1,420,027,245) |
(1,329,665,031) |
(1,102,025,070) |
|
| (Loss)/profit before income taxes |
(19,898,677) |
(9,107,500) |
16,922,995 |
| Income taxes |
|||
| Current tax expense (note 12) |
(13,453,725) |
(15,883,469) |
(5,512,842) |
| Deferred tax (expense)/benefit (note 12) |
(7,005,545) |
26,594,678 |
6,248,509 |
| (20,459,270) |
10,711,209 |
735,667 |
|
| (Loss)/profit for the period |
(40,357,947) |
1,603,709 |
17,658,662 |
| (Loss)/profit is attributable to: |
|||
| Owners of InterOil Corporation |
(40,357,947) |
1,603,709 |
17,652,461 |
| Non-controlling interest |
- |
- |
6,201 |
| (40,357,947) |
1,603,709 |
17,658,662 |
|
| Basic (loss)/profit per share |
(0.83) |
0.03 |
0.37 |
| Diluted (loss)/profit per share |
(0.83) |
0.03 |
0.36 |
| Weighted average number of common shares outstanding |
|||
| Basic (Expressed in number of common shares) |
48,793,986 |
48,352,822 |
47,977,478 |
| Diluted (Expressed in number of common shares) |
48,793,986 |
49,357,256 |
49,214,190 |
| See accompanying notes to the consolidated financial statements |
|||
| * Revised to effect transition to IFRS 11 - Joint arrangements, refer note 2(c)(ii) for further information |
| InterOil Corporation |
||||
| Consolidated Statements of Comprehensive Income |
||||
| (Expressed in United States dollars) |
||||
| Year ended |
||||
| December 31, |
December 31, |
December 31, |
||
| 2013 |
2012 |
2011 |
||
| $ |
$ |
$ |
||
| (Loss)/profit for the period |
(40,357,947) |
1,603,709 |
17,658,662 |
|
| Other comprehensive (loss)/income: |
||||
| Items that may be reclassified to profit or loss: |
||||
| Exchange (loss)/gain on translation of foreign operations, net of tax |
(20,245,215) |
(5,001,319) |
20,527,270 |
|
| (Loss)/gain on available-for-sale financial assets, net of tax |
(245,825) |
653,390 |
(407,565) |
|
| Other comprehensive (loss)/income for the period, net of tax |
(20,491,040) |
(4,347,929) |
20,119,705 |
|
| Total comprehensive (loss)/income for the period |
(60,848,987) |
(2,744,220) |
37,778,367 |
|
| Total comprehensive (loss)/income for the period is attributable to: |
||||
| Owners of InterOil Corporation |
(60,848,987) |
(2,744,220) |
37,772,166 |
|
| Non-controlling interests |
- |
- |
6,201 |
|
| (60,848,987) |
(2,744,220) |
37,778,367 |
||
| See accompanying notes to the consolidated financial statements |
| InterOil Corporation |
||||
| Consolidated Statements of Changes in Equity |
||||
| (Expressed in United States dollars) |
||||
| Year ended |
||||
| December 31, |
December 31, |
December 31, |
||
| 2013 |
2012 |
2011 |
||
| Transactions with owners as owners: |
$ |
$ |
$ |
|
| Share capital |
||||
| At beginning of year |
928,659,756 |
905,981,614 |
895,651,052 |
|
| Issue of capital stock (note 20) |
25,222,517 |
22,678,142 |
10,330,562 |
|
| At end of year |
953,882,273 |
928,659,756 |
905,981,614 |
|
| 2.75% convertible notes |
||||
| At beginning of year |
14,298,036 |
14,298,036 |
14,298,036 |
|
| Conversion of convertible notes during the year (note 21) |
(409) |
- |
- |
|
| At end of year |
14,297,627 |
14,298,036 |
14,298,036 |
|
| Contributed surplus |
||||
| At beginning of year |
21,876,853 |
25,644,245 |
16,738,417 |
|
| Fair value of options and restricted stock transferred to share capital |
(12,380,121) |
(11,649,459) |
(5,598,009) |
|
| Stock compensation expense |
4,770,971 |
7,882,067 |
14,721,387 |
|
| Gain on conversion of 2.75% convertible notes |
75 |
- |
- |
|
| Loss on buyback of non-controlling interest |
- |
- |
(217,550) |
|
| Waiver of all remaining IPI conversion options (note 17) |
12,150,880 |
- |
- |
|
| At end of year |
26,418,658 |
21,876,853 |
25,644,245 |
|
| Accumulated Other Comprehensive Income |
||||
| Foreign currency translation reserve |
||||
| At beginning of year |
24,787,128 |
29,788,447 |
9,261,177 |
|
| Foreign currency translation movement for the year, net of tax |
(20,245,215) |
(5,001,319) |
20,527,270 |
|
| Foreign currency translation reserve at end of year |
4,541,913 |
24,787,128 |
29,788,447 |
|
| Gain/(loss) on available-for-sale financial assets |
||||
| At beginning of year |
245,825 |
(407,565) |
- |
|
| (Loss)/gain on available-for-sale financial assets as a result of foreign currency translation, net of tax |
(277,553) |
449,413 |
(407,565) |
|
| (Loss)/gain on revaluation of available-for-sale financial assets, net of tax |
(203,977) |
203,977 |
- |
|
| Gain on disposal of available-for-sale financial assets, net of tax |
235,705 |
- |
- |
|
| Gain on available-for-sale financial assets at end of year |
- |
245,825 |
(407,565) |
|
| Accumulated other comprehensive income at end of year |
4,541,913 |
25,032,953 |
29,380,882 |
|
| Conversion options |
||||
| At beginning of year |
12,150,880 |
12,150,880 |
12,150,880 |
|
| Transfer of balance to contributed surplus (note 17) |
(12,150,880) |
- |
- |
|
| At end of year |
- |
12,150,880 |
12,150,880 |
|
| Accumulated deficit |
||||
| At beginning of year |
(225,961,512) |
(227,565,221) |
(245,217,682) |
|
| Net (loss)/profit for the year |
(40,357,947) |
1,603,709 |
17,652,461 |
|
| At end of year |
(266,319,459) |
(225,961,512) |
(227,565,221) |
|
| Total InterOil Corporation shareholders' equity at end of year |
732,821,012 |
776,056,966 |
759,890,436 |
|
| Transactions with non-controlling interest |
||||
| At beginning of year |
- |
- |
20,099 |
|
| Net profit for the year |
- |
- |
6,201 |
|
| Buyback of non-controlling interest |
- |
- |
(26,300) |
|
| At end of year |
- |
- |
- |
|
| Total equity at end of period |
732,821,012 |
776,056,966 |
759,890,436 |
|
| See accompanying notes to the consolidated financial statements |
||||
| InterOil Corporation |
|||
| Consolidated Statements of Cash Flows |
|||
| (Unaudited, Expressed in United States dollars) |
|||
| Year ended |
|||
| December 31, |
December 31, |
December 31, |
|
| 2013 |
2012 |
2011 |
|
| $ |
$ (revised) * |
$ (revised) * |
|
| Cash flows generated from (used in): |
|||
| Operating activities |
|||
| Net (loss)/profit for the year |
(40,357,947) |
1,603,709 |
17,658,662 |
| Adjustments for non-cash and non-operating transactions |
|||
| Depreciation and amortization |
23,411,336 |
21,855,228 |
20,111,016 |
| Deferred tax |
15,295,770 |
(29,450,576) |
(5,598,192) |
| Gain on conveyance of exploration assets |
(500,071) |
(4,418,170) |
- |
| Accretion of convertible notes liability |
3,617,760 |
3,408,951 |
3,212,141 |
| Amortization of deferred financing costs |
4,589,536 |
598,698 |
223,944 |
| Timing difference between derivatives recognized and settled |
2,103,175 |
350,061 |
(762,561) |
| Stock compensation expense, including restricted stock |
4,770,970 |
7,882,067 |
14,721,387 |
| Inventory write down |
- |
322,535 |
259,406 |
| Accretion of asset retirement obligation liability |
356,830 |
331,096 |
159,356 |
| Non-cash settlement on PNGEI buyback |
6,837,000 |
- |
- |
| Gain on conversion of convertible notes |
(500) |
- |
- |
| (Gain)/loss on Flex LNG investment |
(3,719,907) |
- |
3,420,406 |
| Share of net (profit)/loss of joint venture partnership accounted for using the equity method |
(2,275,090) |
490,186 |
2,662,204 |
| Unrealized foreign exchange gain |
(352,348) |
(1,070,269) |
(2,618,814) |
| Change in operating working capital |
|||
| Increase in trade and other receivables |
(21,273,999) |
(43,579,657) |
(54,630,047) |
| Decrease/(increase) in other current assets and prepaid expenses |
170,092 |
(3,010,564) |
(2,247,769) |
| Decrease/(increase) in inventories |
30,610,288 |
(28,886,641) |
(28,003,484) |
| Increase in trade and other payables |
47,360,333 |
25,912,734 |
73,291,275 |
| Net cash generated from/(used in) operating activities |
70,643,228 |
(47,660,612) |
41,858,930 |
| Investing activities |
|||
| Expenditure on oil and gas properties |
(128,285,583) |
(179,779,865) |
(116,492,551) |
| Proceeds from IPI cash calls |
29,942,167 |
3,497,542 |
749,794 |
| Expenditure on plant and equipment |
(25,951,297) |
(30,855,107) |
(36,874,794) |
| Proceeds from Pacific Rubiales Energy (conveyance accounted portion) |
- |
20,000,000 |
- |
| Maturity of/(investment in) short term treasury bills |
- |
11,832,110 |
(11,832,110) |
| Proceeds from disposal of/(acquisition of) Flex LNG Ltd shares, net of transaction costs |
7,778,258 |
- |
(7,478,756) |
| (Increase)/decrease in restricted cash held as security on borrowings |
(4,203,450) |
(9,760,331) |
8,027,306 |
| Change in non-operating working capital |
|||
| Decrease/(increase) in trade and other receivables |
5,000,000 |
5,000,000 |
(10,000,000) |
| (Decrease)/increase in trade and other payables |
(17,744,539) |
22,115,815 |
(6,399,657) |
| Net cash used in investing activities |
(133,464,444) |
(157,949,836) |
(180,300,768) |
| Financing activities |
|||
| Repayments of OPIC secured loan |
- |
(35,500,000) |
(9,000,000) |
| (Repayments to)/proceeds from Mitsui for Condensate Stripping Plant |
(34,375,748) |
3,578,489 |
9,872,532 |
| Proceeds from drawdown of Westpac secured loan |
- |
15,000,000 |
- |
| Repayments of Westpac secured loan |
(12,857,000) |
(2,143,000) |
- |
| Proceeds from drawdown of BSP and Westpac secured facility (net of transaction costs) |
33,835,101 |
- |
- |
| Repayments of BSP and Westpac secured facility |
(11,070,578) |
- |
- |
| Proceeds from drawdown of Credit Suisse secured facility (net of transaction costs) |
93,042,488 |
- |
- |
| Proceeds from Pacific Rubiales Energy for interest in PPL237 (net of transaction costs) |
73,600,000 |
20,000,000 |
- |
| (Repayments of)/proceeds from working capital facility |
(57,911,448) |
77,809,976 |
(34,773,823) |
| (Repayments of)/proceeds from ANZ, BSP & BNP syndicated loan |
(16,000,000) |
95,924,091 |
- |
| Proceeds from issue of common shares, net of transaction costs |
6,839,930 |
11,028,683 |
4,488,703 |
| Payment on conversion of convertible notes |
(1,546) |
- |
- |
| Net cash generated from/(used in) financing activities |
75,101,199 |
185,698,239 |
(29,412,588) |
| Increase/(decrease) in cash and cash equivalents |
12,279,983 |
(19,912,209) |
(167,854,426) |
| Cash and cash equivalents, beginning of year |
49,720,680 |
68,575,269 |
232,424,858 |
| Exchange (losses)/gains on cash and cash equivalents |
(34,124) |
1,057,620 |
4,004,837 |
| Cash and cash equivalents, end of year |
61,966,539 |
49,720,680 |
68,575,269 |
| Comprising of: |
|||
| Cash on Deposit |
31,738,440 |
49,086,353 |
18,487,116 |
| Short Term Deposits |
30,228,099 |
634,327 |
50,088,153 |
| Total cash and cash equivalents, end of year |
61,966,539 |
49,720,680 |
68,575,269 |
| See accompanying notes to the consolidated financial statements |
|||
| * Revised to effect transition to IFRS 11 - Joint arrangements, refer note 2(c)(ii) for further information |
|||
About InterOil
InterOil Corporation is an independent oil and gas business with a primary focus on Papua New Guinea. InterOil's assets include one of Asia's largest undeveloped gas fields, Elk-Antelope, in the Gulf Province, exploration licenses covering about 16,000sqkm, Papua New Guinea's only oil refinery, and retail and commercial petroleum distribution facilities throughout the country. The company employs more than 1100 people and has its main offices in Singapore and Port Moresby. InterOil is listed on the New York and Port Moresby stock exchanges.
| Investor contacts for InterOil |
|
| Houston |
Singapore |
| Wayne Andrews, Vice President Capital Markets |
Don Spector, Chief Financial Officer |
| Phone: +1-281-292-1800 |
Phone: +65-6507-0222 |
| Meg LaSalle, Investor Relations Coordinator |
|
| Phone: +1-281-292-1800 |
|
| Media contacts for InterOil |
|
| John Hurst, Cannings |
|
| Phone: +61 418 708 663 |
Forward Looking Statements
This press release includes "forward-looking statements" as defined in United States federal and Canadian securities laws. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that InterOil expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on our current beliefs as well as assumptions made by, and information currently available to us. No assurances can be given however, that these events will occur. Actual results could differ, and the difference may be material and adverse to the Company and its shareholders. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause our actual results to differ materially from those implied or expressed by the forward-looking statements. Some of these factors include the risk factors discussed in the Company's filings with the Securities and Exchange Commission and on SEDAR, including but not limited to those in the Company's Annual Report for the year ended 31 December 2013 on Form 40-F and its Annual Information Form for the year ended 31 December 2013. In particular, there is no established market for natural gas or gas condensate in Papua New Guinea and no guarantee that gas or gas condensate from the Elk and Antelope fields will ultimately be able to be extracted and sold commercially. Investors are urged to consider closely the disclosure in the Company's Form 40-F, available from us at www.interoil.com or from the SEC at www.sec.gov and its Annual Information Form available on SEDAR at www.sedar.com.
SOURCE InterOil Corporation
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