PNG’S INTEROIL REPORTS $13 MILLION LOSS

admin's picture

PNG’S INTEROIL REPORTS $13 MILLION LOSS

PORT MORESBY, Papua New Guinea (PNG Post-Courier, June 2) – InterOil Corporation — a Canadian company with operations in Papua New Guinea — has recorded a consolidated net loss after tax of CA$14.4 million [US$13 million] for the quarter ended March 31, 2006.

This is compared to a loss of CA$11.4 million [US$10.3 million] for the same period in 2005.

The loss was detected in the company’s revised unaudited financial statements and accompanying notes for the first three months of this year filed with relevant Canadian securities regulatory authorities.

The loss was related to the failure by InterOil to accrue CA$5.6 million in costs of sales and operating expenses for its midstream business segments (refining and marketing) that were incurred during the first quarter of 2006. The failure to accrue these amounts was due to the misreporting of a cargo delivery that resulted from a malfunction of a computer system during the recent move of InterOil’s corporate offices.

A statement from InterOil’s headquarters in Toronto, Canada yesterday says the company’s consolidated net loss after tax increased primarily due to increased losses from its upstream (exploration and production) and midstream business segments. InterOil says the management had initiated steps to ensure that this event does not happen again.

The adjustments resulted in InterOil’s consolidated net loss for the three-month period ending March 31, 2006, increasing from the previously reported loss of $C9.4 million (K27.2 million) to a consolidated net loss of $C14.4 million (K41.73 million). The net loss for the company’s midstream business segment for the same period increased from the previously reported loss of $C4.7 million (K13.62 million) to a loss of $C10.3 million (K29.85 million). InterOil said the loss was accrued as a result of the 27 days shut down of the refinery due to bad weather conditions which affected crude oil supply and an increase in foreign exchange losses during the first quarter of 2006. In the downstream business segment (wholesale and retail distribution) InterOil recorded a loss of $C0.3 million (K869,565) for the quarter ended March 31, 2006, compared to net income of $C0.2 million (K579,710) for the quarter ended March 31, 2005. This loss was attributed to timing difference in pricing related to the purchasing of refined products in December 2005 at a price based on November 2005 commodity prices and the subsequent sale of these products in January 2006 at prices based on the lower December 2005 commodity prices.

June 5, 2006

Papua New Guinea Post-Courier: www.postcourier.com.pg/

Rate this article: 
No votes yet

Add new comment