Senex Energy Limited (Senex, ASX:SXY) today announced its FY18 results and a return to growth, delivering increased reserves, production, revenue and operating cashflow.
Senex Managing Director and Chief Executive Officer, Ian Davies, commented: “The 2018 financial year started very strongly for Senex with the award of the Project Atlas natural gas acreage in the Surat Basin. During the year we simplified the business and focused on the high value opportunities ahead. Today we deliver on our commitment to return the company to year-on-year growth, with a 35% increase in 2P reserves, a 12% increase in production and a 61% increase in sales revenue.
“In addition to delivering strong operating performance, we also achieved key milestones against our significant future growth plans. Senex enters the new financial year with a free-carried ten well drilling campaign in the Cooper Basin and the funding required to develop our Surat Basin projects”.
Key FY18 results against the prior year:
Excellent environmental performance, with no recordable incidents across any of Senex's operations and the implementation of a strong environmental management framework for our Surat Basin projects;
Disappointing safety performance despite a continued strong safety culture;
Project Atlas awarded to Senex in September 2017;
Production of 0.84 mmboe, up 12%, with new production from drilling success in the western flank and increasing gas volumes from the Western Surat Gas Project;
Sales revenue of $70.3 million, up 61%, given a higher realised oil price and increased production;
Operating cashflow of $5.3 million, up $13.4 million, on higher revenue and lower operating costs;
EBITDAX of $43.4 million, up 495%, reflecting increased gross profit and a non-recurring gain of $16.9 million relating to the transaction with Beach Energy;
Statutory net loss after tax of $94.0 million, reflecting a non-cash impairment of $113.3 million in respect of non-core Cooper Basin assets following a comprehensive asset portfolio review and the $16.9 million gain relating to the transaction with Beach Energy;
Underlying net profit of $2.0 million, up $24.5 million, and Capital expenditure of $80.1 million, up 29%, mainly comprising $52.0 million on our Surat Basin gas projects and $23.5 million on our core Cooper Basin assets.
Commenting on the Company outlook, Ian Davies said: “FY19 will be a crucial year for Senex as we rapidly progress to development of both Project Atlas and the Western Surat Gas Project, focusing on continued operational excellence.
“Together with a continuing active drilling program in the Cooper Basin, the investment in Senex's Surat Basin gas assets will drive a long term step-change in production, cashflow and earnings, and importantly deliver new gas supply to the east coast of Australia”, he said.
FY19 guidance will be provided to the market in conjunction with financial close of the ANZ debt facility, expected within four to eight weeks.
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