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


NZO Annual Result

24 August 2016

Loss for the year is $51.8m, including $41.8m from Cue Energy Resources

Net cash from operating and investing activities of $21.1 million (up from $6.7 million)

Dividend of 4 cents per share, fully imputed.

New Zealand Oil & Gas will reinstate distributions to shareholders with a fully imputed dividend of 4 cents per share to be paid in October.

The company today announced a loss for the year of $51.8 million, compared to a loss of $15.5 million last year, which was foreshadowed in asset value write downs in the interim result. The loss attributable to the company’s shareholders was $29.8 million, reflecting the significant loss for the year in Cue Energy Resources.

A buy back of up to 64 million of its shares continues as the company believes its share price is currently substantially below a fair value.

The group had a cash balance at 30 June of $96.8 million, up from $83.7 million a year ago.

Chief Executive Andrew Knight says the group continues to generate strong free cashflows from its producing assets, after reducing corporate costs and exploration. Net cash generated from operations and investment was up from $6.7 million last year to $21.1 million this year.

"The company is able to reinstate dividends because we have tightly controlled costs in a period when lower oil prices drove asset valuations lower," Mr Knight said.

"The highlight of the year has been a substantial increase in total Kupe 2P reserves as a result of significant work undertaken across the joint venture. The reserves upgrade, which was previously announced, has added significant value to Kupe by increasing potential volumes recoverable from Kupe and reducing the cost of recovering those volumes."

Group revenue from gas sales was down $1.3 million as a result of marginally lower prices.

Volumes of oil sold from Tui and Kupe were down by 27 per cent and the average oil price was down 43 per cent from US$68.41 to US$39.32 per barrel in the previous financial year, resulting in a reduction in revenue from Tui and Kupe oil of $31.7 million.

However total group sales revenue was up by $2.8 million (2.4 per cent) to $119.0 million. A full year of Cue earnings is included in the result, contributing $49.5 million of sales, against last year when only one quarter of Cue’s earnings were included ($11.1 million).

Operating costs increased by $11.4 million in the year, as a full year of Cue's costs were included. Despite unfavourable exchange rates, Tui costs were reduced by $4.2 million, demonstrating the effectiveness of management’s cost saving initiatives.

The focus on costs successfully executed at New Zealand Oil & Gas has now been taken up by Cue who announced in June a shift in focus of activities and a commitment to reduce costs.

Meanwhile New Zealand Oil & Gas has begun to manage its exposure to oil price, and to carbon emissions costs under the Government's emissions trading scheme, through modest hedging.

"Oil trading markets and demand for carbon emissions credits provide opportunities to leverage the business's understanding of those markets and provide small opportunities to further improve revenues."

"Although exploration spending is considerably reduced, the company continues to engage with the government about a change of conditions in the Clipper permit east of New Zealand's South Island, where its Barque prospect is the largest announced hydrocarbon prospect in New Zealand. The company has received new geological data relevant to the region, and Barque in particular. This information is being analysed against our previous understanding of the region's properties, and we remain engaged with potential partners who have the scale and expertise to develop the prospect."

In Indonesia, New Zealand Oil & Gas has minimised its ongoing spending and is advancing plans to realise returns from its investment there.

The dividend of 4 cents per share will be paid on 25 October to holders on record at 11 October 2016.


© Scoop Media

Business Headlines | Sci-Tech Headlines


TradeMe: Property Prices In Every Region Hit New High For The Very First Time

Property prices experienced their hottest month on record in December, with record highs in every region, according to the latest Trade Me Property Price Index.\ Trade Me Property spokesperson Logan Mudge said the property market ended the year with ... More>>

Motor Industry Association: 2020 New Vehicle Registrations Suffer From Covid-19

Chief Executive David Crawford says that like some other sectors of the New Zealand economy, the new vehicle sector suffered from a case of Covid-19. Confirmed figures for December 2020 show registrations of 8,383 were 25% ... More>>

CTU 2021 Work Life Survey: COVID And Bullying Hit Workplaces Hard, Huge Support For Increased Sick Leave

New data from the CTU’s annual work life survey shows a snapshot of working people’s experiences and outlook heading out of 2020 and into the new year. Concerningly 42% of respondents cite workplace bullying as an issue in their workplace - a number ... More>>

Smelter: Tiwai Deal Gives Time For Managed Transition

Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed to working on a managed transition with the local community,” Grant Robertson said. More>>


OECD: Area Employment Rate Rose By 1.9 Percentage Points In The Third Quarter Of 2020

OECD area employment rate rose by 1.9 percentage points in the third quarter of 2020, but remained 2.5 percentage points below its pre-pandemic level The OECD area [1] employment rate – the share of the working-age population with jobs – rose ... More>>

Economy: Strong Job Ad Performance In Quarter Four

SEEK Quarterly Employment Report data shows a positive q/q performance with a 19% national growth in jobs advertised during Q4 2020, which includes October, November and December. Comparing quarter 4, 2020, with the same quarter in 2019 shows that job ad volumes are 7% lower...More>>

NIWA: 2020 - NZ’s 7th-warmest Year On Record

The nationwide average temperature for 2020, calculated using stations in NIWA’s seven-station temperature series which began in 1909, was 13.24°C (0.63°C above the 1981–2010 annual average). New Zealand’s hottest year on record remains 2016, when... More>>

Quotable Value New Zealand: Property Market Set To Cool From Sizzling To Warm In 2021

Nostradamus himself could not have predicted the strange series of events that befell our world in 2020 – nor the wild trajectory of New Zealand’s property market, which has gone from “doom and gloom” to “boom and Zoom” in record time. Even ... More>>