InterOil Corp.'s (IOC) first-quarter earnings surged as the oil
and gas company posted a jump in revenue from its refining and
downstream businesses and benefited from foreign exchange
gains.
InterOil's operations target the oil and gas resources of Papua
New Guinea. The country's reserves of liquid natural gas have
lately attracted the interest of several other multinational energy
companies, and their presence has not always been welcome. Exxon
Mobil Corp. (XOM) recently resumed work at a $15.7 billion project
for liquid-gas export after protesting landowners disrupted
operations.
InterOil has run into obstacles in its plans for a major new
liquid-gas project in the area, facing criticism last year from
national government officials, as well as difficulty pinning down
partners and investors.
The company has received bids from potential partners in the
liquid-gas project, as well as for the sale of its interest in the
Elk and Antelope fields, Chief Executive Phil Mulacek said Monday,
adding that the company expects to enter an agreement for the LNG
project this quarter.
The company recently inked a deal, worth as much as $345
million, that gives Canadian oil producer Pacific Rubiales Corp.
(PEGFF, PRE.T) a 10% net participating interest in a prospecting
license in Papua New Guinea.
For the first quarter, InterOil posted a profit of $9.45
million, or 19 cents a share, up from a year-earlier profit of
$695,549, or a penny a share. The most-recent quarter included
$10.1 million from foreign exchange gains while the year earlier
included $2.82 million. Analysts polled by Thomson Reuters recently
projected per-share earnings of 5 cents.
Revenue jumped 39% to $338.2 million. The midstream refining
business posted a 39% increase in revenue, while revenue from the
downstream business also grew 39%, driven by growth in the aviation
and retail business segments.
Shares closed at $57.61 on Friday and were inactive premarket.
The stock is up 13% so far this year.
-By Kristin Jones; Dow Jones Newswires; 212-416-2208;
kristin.jones@dowjones.com