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

BRISBANE COAL TERMINAL REOPENS AFTER SHIPLOADER REPAIR

COAL loading has recommenced at New Hope's (ASX: NHC) Brisbane terminal today after repairs to its ship loader, w...

SUPERYACHTS OFFER UNTAPPED POTENTIAL AT COMMONWEALTH GAMES

SUPERYACHT Australia has devised a strategy to attract more superyachts to Queensland and capitalise on revenue op...

GDP FIGURES A 'WAKEUP CALL' FOR PARLIAMENT

THE GDP figures are an end-of-year wakeup call for Parliament about what lies ahead for the country, according to ...

ACCC GIVES GO-AHEAD FOR NEWS CORP TO BUY ARM

NEWS Corporation (ASX: NWS) has been given the green light to acquire Australian Regional Media (ARM) from APN New...

Related News

HOW MCDONALD'S AUSTRALIA REDISCOVERED ITS INNOVATIVE SPIRIT

MCDONALD'S is such a ubiquitous part of the Australian landscape today that it is easy to forget how it change...

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter