Australia's Cooper Energy reports 4% drop in full year sales revenue

Australian energy producer, Cooper Energy, on July 18 reported a 4% year/year (yr/yr) decline in sales revenue for the 12-month period that ended on June 30 (FY2023) owing to a drop in sales volume.

The company's sales revenue stood at A$197mn ($134mn), down from A$247mn in the previous year. The sales volume was down 6% yr/yr to 3.59mn barrels of oil equivalent (boe).

Cooper achieved record production of 3.56mn boe during the year, up 8% yr/yr. This rise in output was largely driven by enhanced gas production from the Sole gas field, supported by improved performance at the Orbost gas processing plant.

During the quarter ended June 30, Cooper recorded sales revenue of A$48.9mn, down from A$61.9mn during the same period the previous year.

The Australian government recently introduced a Mandatory Code of Conduct that impacts the gas market. The Code includes a price cap of $12/gigajoule (GJ), which was initially announced in December of the previous year.

Additionally, the Code includes an exemptions framework to incentivise gas producers to commit more supply to the east coast gas market in the short term, while also facilitating new investments to meet ongoing demand in the medium term. Small and domestically focused producers are exempt from the price cap.

As a smaller player, Cooper is exempt from the $12/GJ price cap under the new Gas Code, according to CEO Jane Norman.

“As a small producer, we are pleased that Cooper Energy is exempt from the $12/GJ price cap in the new Gas Code released on 10 July. Our foundation gas contracts will also be exempt,” she said.

Norman further stated that the new growth opportunities, such as the OP3D project, are expected to meet the existing gas demand and support reliable and affordable energy for Australian businesses and households.