Interra Resources (5GI) H1 2023 earnings summary

Executive summary

• 1H 2023 revenue was US$9.63m, down 23% YoY; net loss was US$0.80m versus net profit of US$4.89m in 1H 2022.

• Operating cash flow of US$5.03m supported a US$2.00m net cash increase; period-end cash was US$16.14m.

Financial highlights

• Revenue fell to US$9.63m from US$12.52m YoY as the average transacted oil price declined to US$77.45/bbl from US$104.89/bbl, despite 4% higher shareable oil sales.

• Gross profit was US$3.97m, down 39% YoY; cost of production decreased to US$5.66m from US$6.04m.

• Net loss of US$0.80m included a US$4.88m E&E impairment; other income included a US$1.71m gain on patent-rights disposal.

• Adjusted for the stated EBITDA definition, earnings before divestment gain, interest, FX, finance costs, tax, depreciation, amortisation, allowance and impairment were US$4.89m.

Outlook and guidance

• Cash resources were considered sufficient to fund the current-year work programme, barring unforeseen circumstances; several investment opportunities were under review.

• No significant contribution from Kuala Pambuang was expected in the near term; KP-1 remained suspended pending analysis of recovered oil samples.

• Discussions with relevant authorities continued on a further extension and revised Kuala Pambuang work programme.