SENEX HALVES LOSS DESPITE OIL DOWNTURN

Written on the 23 February 2016

SENEX HALVES LOSS DESPITE OIL DOWNTURN

OIL and gas explorer Senex Energy (ASX:SXY) has halved its first half loss amid volatile trading conditions in the resources sector.

The Brisbane-based business posted a net loss of $27.1 million for the half year ending December, down 59 per cent compared to the previous period.

The result accounts for a $38 million gain on the sale of its Maisey block in Queensland, which was offset by a $69.7 million impairment relating to Cooper Basin exploration assets.

The writedown was realised through a series of strategic transactions in the Surat Basin with neighbouring natural gas producers QGC and GLNG.

Net profit is up 225 per cent to $5.2 million on an underlying basis, while revenue decreased 47 per cent to $36.8 million.

Senex managing director Ian Davies (pictured) says the company's strong financial position and low cash cost profile bolstered performance despite the oil downturn.

He says Senex kicked off the year with $100 million cash on hand and no debt, as well as further cost cuts to support profit margins.

"The focus of the Senex team is on building a robust oil and gas business that not only survives the current downturn but comes out the other end stronger and healthier," Davies says.

"We are continuing to progress our growth projects at the same time as maturing our portfolio of exploration assets to position the company strongly for an oil price recovery."

Senex reported an operating cost per barrel of $28 against an average received oil price of $71 per barrel in the first half. The company has locked in a floor price of $72 a barrel for oil sales in the second half.

Davies says combined with a lower average realised oil price, the company will continue to explore strategic partnerships to boost its bottom line.

"Senex remains committed to delivering growth for shareholders and we demonstrated this in the strategic transactions agreed with GLNG during the period," he says.

"These transactions unlock material shareholder value and bring us a further step towards commercialisation of our Western Surat Gas Project.

"We will continue to invest in the right opportunities within our business and externally, where they align with our strategy and meet our economic criteria."

The company will continue to progress its unconventional gas project with Origin Energy and Murta Formation tight oil project with Halliburton.

 


Latest News

BRISBANE VFX PRODUCTION COMPANY CLEANS UP AT MAJOR INTERNATIONAL ADVERTISING AWARDS

AUSTRALIAN production company Alt.vfx has broken records in global advertising, becoming the first business to win...

CYCLONE DEBBIE FORCES MINE, RAIL AND PORT CLOSURES AS IT WREAKS HAVOC IN QUEENSLAND

COAL and gold mines in north and central Queensland are being seriously impacted as Cyclone Debbie makes landfall ...

FLYING START TO 2017 PASSENGER NUMBERS FOR GOLD COAST AIRPORT

RECORD numbers of travellers used the Gold Coast Airport (GCA) in January this year, continuing a five-year trend ...

SUNCORP SAYS IT'S 'COVERED' AGAINST FINANCIAL COST OF CYCLONE DEBBIE

INSURER Suncorp (ASX: SUN) says it is "well protected" against the financial impact of Cyclone Debbie th...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter