SENEX STRIKES RED

Written on the 25 August 2015

SENEX STRIKES RED

A SHARP decline in global oil prices has hit Senex Energy Limited's (ASX:SXY) bottom line, with the energy company posting a full-year loss of $80.6 million.

The result is down from a profit of $37.9 million in the previous year, following $97 million in impairments against exploration assets in the Cooper Basin.

Revenue also tumbled 32 per cent down to $115.9 million, while underlying profit remained in the black at $5.6 million compared to $44.7 million in FY14.

Senex managing director and CEO Ian Davies says despite the steep fall in prices, the company demonstrated strong performance.

He says the company achieved solid production levels from existing oil fields, as well as made its first Namur oil discovery at the Cooper Basin.

Gains made in the gas business were not enough to offset the decline in oil, however a coal seam gas asset transaction in the Surat Basin has generated an uplift in the portfolio.

"Senex enters 2016 in a good financial position," Davies says.

"We responded rapidly and prudently to the changed market conditions by reducing capital and operating expenditure, protecting FY16 revenues with an oil hedging program, and establishing an unsecured $80 million corporate debt facility that remains undrawn.

"With $49 million in cash at 30 June, cash flow from operations, no drawn debt and continued spending discipline, the Senex business is in a good shape as we pursue our long-term growth-driven strategy."

Senex will focus on cash preservation across its assets in FY16 to shield against the downturn. The company also plans to advance a gas exploration work program with Origin Energy, which is valued between $25 million and $35 million.

"As Senex pursues value creation for shareholders, our number one priority is maintaining the financial strength of the business against a backdrop of continuing lower oil prices," Davies says.

"Senex remains growth focused and the prioritisation of our most material and advanced gas project represents a step change in the creation of a material gas business for Senex."

 


Latest News

2017 BRISBANE TOP COMPANIES REVEALED

WHILE Queensland is regarded as an economy in transition with the winding down of the mining boom, the 2017 top 50...

2017 BRISBANE TOP COMPANIES 1-10

FROM insurance and banking to travel, gambling, retail, property and pizza, these "heavyweights" have ha...

2017 BRISBANE TOP COMPANIES 11-20

RETAIL, property, an airline, cars, real estate, software services, energy, agriculture, veterinary services bathr...

2017 BRISBANE TOP COMPANIES 21-30

JEWELLERS Michael Hill International listed in 2016 with a half-billion dollar market capitalisation and a new CEO...

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