SENEX RECORDS STATUTORY LOSS AFTER WRITE-DOWNS

SENEX RECORDS STATUTORY LOSS AFTER WRITE-DOWNS

DIVERSIFIED energy company Senex (ASX: SXY) has recorded a half-year statutory loss of $65.9 million as it writes down the value of assets to reflect lower oil prices.

The company's underlying net profit after tax was $1.6 million for the six months to December 2014. It retains a cash balance of $74.9 million with no debt.

The statutory net result fell $91.5 million, from a $25.6 million profit during the same time period in 2013. The underlying net profit in that period was $31.8 million.

A non-cash impairment charge of $86.5 million reflects what Senex describes as a "conservative approach to managing its capital in the current volatile market conditions."

Amortisation and depreciation, reflecting the reduced value of assets, accounted for a further $13.2 million.

Managing director Ian Davies (pictured) says the write-downs should not affect current projects.

"We have acted sensibly to reduce operating costs and re-allocate capital spend, without impacting our capacity to progress our portfolio of growth projects," he says.

"During the half Senex successfully commenced gas production, with first commercial sales from our Hornet field in the Cooper Basin.

"We have bolstered our acreage position in the Surat Basin following the asset swap with the QGC JV, and stage one of our unconventional gas farm in with Origin Energy is taking shape."

The Cooper Basin is an oil- and gas-rich area that is mostly in Queensland but also extends into South Australia.

Similarly, two-thirds of the coal-producing Surat Basin is in Queensland, with one third in New South Wales.

Senex increased its net production by 14 per cent in the last six months of 2014, although revenue from ordinary activities fell by 17 per cent to $69.9 million.

The company has locked in a floor price of $68 per barrel for oil sales in the next six months.

Shares in Senex traded slightly higher following the half-year announcement.

The share price has trended upwards since the start of 2015, after falling from about 0.7c to 0.3c over the course of 2014.

It last traded at 0.337c.

Get our daily business news

Sign up to our free email news updates.

 
Whitefox Recruitment founder Luke Hemmings making strides as a careers leader
Partner Content
After relocating his Canberra-founded company Whitefox Recruitment to the Gold Coast la...
Whitefox Recruitment
Advertisement

Related Stories

ASIC secures its first court win for greenwashing against US giant Vanguard

ASIC secures its first court win for greenwashing against US giant Vanguard

The Australian corporate watchdog has caught out one of the world&r...

Medicinal cannabis group Althea shaves $1.5m from its cost base through staff cutbacks

Medicinal cannabis group Althea shaves $1.5m from its cost base through staff cutbacks

Australian-founded medicinal cannabis company Althea Group (ASX: AG...

Charter Hall snares 15pc stake in Hotel Property Investments for $97m from 360 Capital

Charter Hall snares 15pc stake in Hotel Property Investments for $97m from 360 Capital

Listed funds manager 360 Capital Group (ASX: TGP) has offloaded its...

The party’s over: Splendour in the Grass festival cancelled for 2024

The party’s over: Splendour in the Grass festival cancelled for 2024

Splendour in the Grass, Australia’s largest winter music fest...