Interra Resources profit slips 9% to $1.36m

Expanding costs hurt gross profit.

In its unaudited results for the quarter ended 31 March 2013, Interra Resources Limited announced that net profit after tax for the quarter was S$1.36 million, which was 9% lower than the $1.49 million posted on the same period last year.

This is despite revenue for the quarter rising to S$8.72 million, 21% higher than the preceding quarter and 6% higher than the same period the year before, mainly due to higher sales of shareable production from all operations and higher weighted average transacted oil prices. Shareable production for the quarter increased to 104,501 barrels from 93,328 barrels in the previous quarter.

Cost of production though also rose to $5.61 million, up 17% from last year, resulting in lower gross profit year-on-year.

Earnings before divestment gain, interest income, exchange difference, finance cost, tax, depreciation, amortisation, allowance and impairment (EBITDA) for the quarter was US$3.82 million. Net cash outflow for the quarter was US$5.48 million, mainly due to new well drilling and acquisition of property, plant and equipment. Cash and cash equivalents (excluding restricted cash) were US$11.26 million as at 31 March 2013.