InterOil reports drop in net profit

INTEROIL has reported a US$1.6 million drop in net profit to US$7.8 million for the second quarter ending June 30, from the US$9.4 million posted during the same period last year.However, the company said its balance sheet and liquidity had remained strong with cash equivalents and cash restricted of US$50.9 million.Its operations – refining and downstream operating segments – derived a net profit for the quarter of US$17.6 million, while the upstream and midstream liquefaction development segments had a net loss of US$8.3 million due to higher exploration expenses.The earnings before interest, taxes, depreciation and amortisation for the quarter was US$14.9 million, compared with US$17.9 million in the same quarter of last year, down US$3 million.Sales and operating revenue increased by US$$76.8 million from US$148.5 million to US$225.3 million.InterOil said the refinery and distribution operating businesses generated earnings of US$24 million before interest, taxes, depreciation and amortisation (EBITDA) during the quarter.This amount offset expenditures from the developing upstream and liquefaction businesses, resulting in a net US$14.9 million in EBITDA on a consolidated basis.Chief executive officer Phil Mulacek said: “We are pleased that our forward momentum has been sustained well into 2010.”“Our delineation drilling results continue to demonstrate the value of our reservoir at Antelope 2, and the finalisation of the joint venture operating agreement with Mitsui & Co is another step in our strategy to monetise our liquid resources at the Elk and Antelope fields.“These accomplishments, combined with our strong balance sheet and the financing we have in place, will enable us to support our continued growth and operational success,” Mulacek said.