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

1700 BRISBANE APARTMENTS NOW MANAGED BY FORTUNE 500 COMPANY JLL

MULTINATIONAL and Fortune 500 company JLL (NYSE: JLL) has expanded its Australian dominance in the property managemen...

HARVEY NORMAN HITS OUT AT 'FALSE NEWS' OF ASIC INVESTIGATION

RETAIL giant Harvey Norman (ASX: HVN) has vehemently rejected reports its accounts are under investigation by ASIC, s...

RARE GOOD NEWS FOR SLATER AND GORDON AS ASIC CLOSES INVESTIGATION

ASIC has cleared Slater and Gordon of deliberately falsifying its accounts after a three-month investigation.

It s...

Q & A WITH FACEBOOK GURU ANDY MCKEON AS HE JOINS AUSTRALIAN SOFTWARE COMPANY LIVETILES

HE was creative director at Apple under the legendary Steve Jobs, and is now a senior Facebook executive. In his n...

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