(Oslo, 20 November 2012) Interoil recorded an EBITDA of USD 13.5 million on operating revenues of USD 26.1 million in Q3 2012. Due to financial expenses and increased depreciation charges, the company recorded a loss before tax of USD 5.7 million for the quarter.
Interoil's production in Q3 2012 increased by 3% compared to prior quarter, due to the three-well drilling campaign in Peru during the second quarter and a higher gas production in Colombia. Lower oil sales during the quarter still caused revenues to fall by USD 1.6 million to USD 26.1 million in Q3. The EBITDA of USD 13.6 million is USD 0.6 million lower than in prior quarter.
Interoil had net financial expenses of USD 8.5 million in the third quarter of 2012. Expenses related to oil hedge contracts accounted for USD 2.9 million, of which realized losses amounted to USD 2.4 million and the unrealized loss was USD 0.5 million. Interest expenses amounted to USD 3.1 million, while the realized and unrealized exchange rate loss was USD 1.7 million.
Total comprehensive loss for the third quarter was USD 7.1 million after income tax of USD 1.4 million compared to a net income of USD 39.3 million in the same quarter prior year. On a year to date basis the net income is USD 11.3 million after income tax of USD 6.1 million compared to net income of USD 35.8 million after income tax of USD 16.4 million in prior year.
Working interest production is down 25% year on year. The production decline is a direct result of reduced investment activity due to liquidity constraints. To address this issue, the board has initiated a sales process in Colombia and will implement a significant overhead cost reduction program as soon as possible.
The company continues to work for a long term solution in Peru, and the dialogue with PeruPetro is constructive. The timing and outcome of this process is uncertain, but the company continues to view the Peruvian assets as strategically important for the Group.
Detailed information on the operational and financial activities of Interoil is presented in Interoil's Q3 2012 report enclosed.
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