Interra profit dropped 13%

Interra Resources, an oil and gas company controlled by Edwin Soeryadjaya, reported net sales revenue of US$12.62 million last year, declined 28% from the previous year, while net profit dropped 13% to US$1.48 million.

The 28% decrease was a result of a combination of lower oil prices and decreased production (mainly in Indonesia oil fields) during the year. Shareable production in 2009 of 270,953 barrels was lower as compared to 302,450 barrels in 2008.

The weighted average oil price in 2009 of US$65 per barrel was significantly lower than of the corresponding period of 2008 of US$100 per barrel. The cost of production in 2009 of US$9.18 million was lower compared to US$10.71 million in 2008. As a result, gross profit in 2009 was US$3.44 million as compared to gross profit of US$6.77 million in 2008.

Other income for 2009 was significantly higher than 2008, due largely to the reversal of impairment and provision made against the Myanmar assets of US$3 million, partly offset by a decrease of interest income from US$0.51 million in 2008 to US$0.10 million in 2009 as a result of lower interest rate in 2009. The increase was partly offset by a provision made for the write off of the exploration well (MS-1) and pending relinquishment of Block L3 in Thailand of US$1.57 million and US$0.47 million respectively.

As a result, the net profit after tax for 2009 was US$1.48 million. This represented a slight decrease of 13% from 2008 of US$1.70 million. Still, Interra's stock price has tripled in the past 12 months.

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