(Oslo, 17 February 2012) InterOil generated an EBITDA of USD 24 million on operating revenues of USD 39 million in Q4 2011. Due to losses of USD 23.9 million on the oil hedging contracts, and significantly increased depreciation charges, the company recorded a loss before tax of USD 22.3 million for the quarter. For 2011 InterOil generated an EBITDA of USD 98.7 million up from USD 58.1 million in 2010. Profit before tax came in at USD 30.1 million against a loss of USD 48 million in 2010.
InterOil's production in Q4 2011 decreased by 5.6% compared to Q3 2011 mainly due to decline in production on the San Luis Field in Peru. Despite lower production and slightly lower oil price, revenues increased by 0.6% compared to prior quarter, due to a decrease in inventory in Colombia. EBIT decreased from USD 18 million in Q3 to USD 4 million in 4Q, mainly due to an increase in depreciation and amortization of USD 12 million.
InterOil had net financial expense of USD 26.6 million in the fourth quarter of 2011. Losses related to oil hedge contracts accounted for USD 23.9 million, of which realized loss is USD 4.3 million and unrealized loss is USD 19.5 million, while interest expenses amounted to USD 3.2 million. For the financial year of 2011, InterOil incurred net financial expense of USD 24.6 million. USD 7.2 million were related to oil hedge contracts, while USD 13.9 million were recorded as interest expenses.
Total comprehensive loss for the fourth quarter was USD 26.7 million after income tax of USD 4.1 million compared to a net loss of USD 22.8 million in the same quarter prior year. On a year to date basis the net income is USD 9.1 million after income tax expense of USD 20.5 million compared to a net loss of USD 48.9 million after income tax expense of USD 7.9 million in prior year.
The license negotiations of Block III and IV with the state oil company, Petroperu, are continuing in good faith and for the time being the parties have agreed to full confidentiality during the process.
InterOil Peru plans to drill 10 wells at the San Luis field in 2012. The drilling plan depends on the final outcome of the license negotiations.
In Colombia, InterOil plans to drill at least one well in Altair and four wells in Mana starting in April 2012.
Detailed information on the operational and financial activities of InterOil is presented in InterOil's Q4 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 250 people and is headquartered in Oslo.