Oz Senex's Full Year Underlying Profit Down 47%

Australian oil and gas explorer Senex Energy on August 24 reported a 47% yr/yr drop in underlying profit for the 12 months to June 30 (FY2020) thanks to lower realised oil price.

The company's underlying profit, which strips out one off items, was A$3.8mn (US$2.7mn) compared with A$7.2mn in the year before. Average realised oil prices decreased to A$90/barrel versus A$101/b following a steep decline in the Brent price in March 2020, it said.

Senex delivered total production of 2.1mn barrels of oil equivalent, up 73% yr/yr. This is an increase from full year production guidance of 1.8 – 2.0 mmboe for the year. This increase was primarily due to strong production performance across Surat Basin gas assets, the company said. Senex’s average realised gas price was A$7.8/gigajoules versus A$7.6/gigajoules in the previous year.

Senex’s revenue of A$120.3mn was 28% higher than the previous year. A substantial increase in gas production in the Surat Basin more than offset lower oil production and prices, it said.

The company reported a statutory loss of A$51.4mn for FY2020 owing to A$52.1mn impairment of Cooper Basin oil assets due to lower oil prices assumptions and restructuring cost provision of A$2.6mn.

For FY2021, Senex is targeting production of 3.2 – 3.6mn boe. The capital expenditure in FY2021 is expected to be A$40 – 50mn, down 71% yr/yr.