Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

NZ Oil & Gas back to profit after Pike River disaster

NZ Oil & Gas back to profit after Pike River disaster

Aug. 22 (BusinessDesk) - New Zealand Oil & Gas posted a full-year profit of $19.9 million as it puts behind it the disastrous foray into the Pike River coal project that saw it plunge to a $76.5 million loss the previous year.

The result reflects a comparatively simple year in cash-flow terms, with $116.4 million received from its share of revenue from Kupe ($74.3 million) and Tui ($42 million), the two producing oil fields in which it holds interests.

While revenue was slightly below forecasts from brokerage Forsyth Barr, earnings before interest and tax of $63.6 million were just ahead of the forecast of $64.7 million. Shares of NZOG fell 0.6 percent when the NZX opened this morning, trading at 83.5 cents.

NZOG continues to pursue opportunities in Indonesia and Tunisia, although the first prospect of oil production in either territory is in 2014, if a decision later this year gives the go-ahead to drilling in the Tunisian Cosmos licence.

Directors declared a 6 cents per share fully imputed dividend, payable Sept. 28, with an ex-dividend date of Sept. 14. Shareholders can opt to take their dividends as shares under a dividend reinvestment plan.

Total cash on hand at June 30 was $209.2 million, with net cash sitting at $162.4 million.

"NZOG continues to maintain a strong balance sheet to fund existing and future exploration opportunities," the company said in a statement. "The fundamentals of NZOG's business remain strong and the company is keenly focused on delivering results and significantly enhancing value."

On top of the $25 million it lent to Pike River Coal the previous year, the accounts show NZOG contributed a further $6.8 million to assist the receivers with the sales process for the mine, which was purchased by Solid Energy.

The bodies of 29 miners who died in explosions in the mine in November 2010 remain in the mine. Solid has paid $7.5 million for the mine, as is, and has agreed to pay a further $25 million in instalments should it ever return to production.

NZOG held a 29 percent stake in the venture, and wrote off a total of 98.8 million in losses and provisioning relating to its failure.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Snail's Pace: Aucklanders Face Frustrating Commute Over Harbour Bridge

Journeys into Auckland's CBD took longer than usual as traffic banked up around the damaged Harbour Bridge. More>>

ALSO:

Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>

ALSO:

Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>

ALSO:

MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>

ALSO:


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>

ALSO:


Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>

ALSO:

NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>

ALSO:

Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>

ALSO:

SAFE: Live Export Ship Carrying 5,800 New Zealand Cows Goes Missing In East China Sea

Livestock carrier Gulf Livestock 1 sent a distress signal at 4:45am NZT yesterday in the East China Sea. The area is affected by Typhoon Maysak. At 4pm a patrol plane spotted a lifeboat - with no people in it - and a man in lifejacket nearby. The ship ... More>>

ALSO:

FMA: Kiwisaver Fees Don't Match Performance

The Financial Markets Authority (FMA) today published an independent report into the passive and active investment management styles [i] used by KiwiSaver providers. The FMA commissioned MyFiduciary to test the extent that KiwiSaver providers were ... More>>