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

SLATER & GORDON AND MAURICE BLACKBURN SHOWDOWN IN BELLAMY'S CLASS ACTION

FIERCE rivals Slater & Gordon (ASX: SGH) and Maurice Blackburn have secured funding for class actions against Bel...

WHY VIDEO IS A "GIVEN" FOR BUSINESS

IN TODAY's digital-driven world, video is king and if used right, it can push a company's brand and brand ...

BRAMBLES TUMBLES AFTER REDUCING GUIDANCE

BRAMBLES (ASX: BXB) will miss its first-half guidance due to cost pressures at its North America business.

The com...

VILLAGE ROADSHOW PARKS HURT BY DREAMWORLD TRAGEDY

QUEENSLAND visitors to Village Roadshow (ASX: VRL) theme parks have declined 12 per cent in the wake of four deaths a...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter