SENEX POWERS THROUGH DOWNTURN

Written on the 23 August 2016 by Laura Daquino

SENEX POWERS THROUGH DOWNTURN SENEX Energy (ASX: SXY) is still digging red, but the oil and gas company has vastly improved on its loss last year.

The Brisbane business recorded a statutory net loss of $33.2 million for FY16, taking into account significant one-offs incurred during the first half.

Senex believes its progress makes for a 'strong defensive response to volatile market conditions', improving on its $81 million loss last year.

The oil price plummeted to a 13-year low during this reporting period.

Senex is operating from a strong financial position, holding $102 million in cash and $180 million in total liquidity.

The company recognised a $38.2 million gain on the sale of Maisey block to Santos GLGNG in the Surat Basin, but this was offset by a non-cash impairment of $69.7 million in the first half.

"Oil production was solid given the low level of investment, and was delivered at our lowest ever operating cost. Combined with a well-timed hedging program we maintained healthy margins from oil sales," says Senex managing director and CEO Ian Davies (pictured).

"As a business we acted decisively to minimise capital expenditure throughout the year, and focus our resources on creating internal efficiencies to set stronger foundations for recovery and growth."

Senex also made major progress with its Western Surat Gas Project, which is now appraisal ready and on-ground civil works have commenced. The 20-year binding gas sales agreement signed with Santos GLNG at the beginning of the year has underwritten and de-risked the large project.

Davies says the company is entering 2017 well-equipped, having made material improvements during the downturn.

"This will be a foundation year for future growth and our business priorities have been set accordingly," he says.

"Senex has a differentiated investment proposition and is strongly positioned for growth."

Senex's share price has gained almost 83 per cent on the ASX this year, now trading at around 26c.

Earlier this year, Senex halved its first half loss too.
 


Author: Laura Daquino Connect via: Twitter LinkedIn

Latest News

WOOLWORTHS CLAIMS LEGAL VICTORY IN STOUSH WITH LOWE'S

SUPERMARKET giant Woolworths (ASX: WOW) has been given the go-ahead to sell its Masters property assets after winn...

DOMINO'S PIZZA EMPLOYEES OFFERED A SLICE OF THE PIE

DOMINO'S Pizza (ASX: DMP) has launched an employee share acquisition plan which will give its 26,000 staff the...

PRICELINE STORE ROLLOUT BOOSTS API'S FULL YEAR PROFIT FORECAST

Australian Pharmaceutical Industries (ASX: API) has booked a rise in half year net profit of $29.1 million on the bac...

CITY DWELLERS SETTING EYES ON REDCLIFFE AS PROPERTY SEACHANGE BECKONS

IT MAY be cool by the sea at Redcliffe, however strong sales at Kyko Group's Mon Komo development prove that t...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

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