Focus Now on LNG Partnership and Drilling Program
SINGAPORE and PORT MORESBY, Papua New
Guinea, March 31, 2014 /CNW/ - 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
|
Wayne.Andrews@InterOil.com
|
Don.Spector@InterOil.com
|
Phone:
+1-281-292-1800
|
Phone:
+65-6507-0222
|
|
|
Meg LaSalle, Investor
Relations Coordinator
|
|
Meg.LaSalle@InterOil.com
|
|
Phone:
+1-281-292-1800
|
|
|
|
Media contacts for
InterOil
|
|
|
|
John Hurst,
Cannings
|
|
jhurst@cannings.net.au
|
|
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