NEW YORK (TheStreet) -- Shares of InterOil Corp. (IOC) are higher by 3.01% to $64.77 in mid-morning trading today following the company's decision to sell its oil refinery and petroleum products distribution business to privately held Puma Energy Group for $526 million, Reuters reports.
InterOil, an integrated energy company, is looking to shift its focus to upstream and liquefied natural gas businesses.
InterOil is selling assets located in Papua New Guinea, and the move could establish the company as a target for major oil and gas companies looking to expand in the region, Reuters added.
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Separately, TheStreet Ratings team rates INTEROIL CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTEROIL CORP (IOC) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself."