Horizon Oil Limited (ASX: HZN) is into the energy sector. It is into the operations of petroleum exploration, development and production. It was listed in 1981, and the headquarter is situated in William Street, Woolloomooloo, Australia.
Today (20 February 2019) the company has announced its half-year results for the period ended 31 December 2018.
In the half year period, the crude oil sales revenue pre-hedging increased by 88% to US$70.3 million (2018: US$37.4 million) during the half-year on the back of realised oil price of US$68.87 per barrel (2018: US$56.40), exclusive of hedge settlements. Throughout the period, 59% of sales were hedged with hedging contract settlements of US$6.7 million (2018: US$0.9 million) realised on 600,000 barrels of crude oil hedged at a weighted average price of US$59.25 (2018: 360,000 barrels at US$54.21).
The operating costs stood at US$37.1 million (2018: US$22.8 million) up by 63% from the prior half year, driven by the 44% increase in production volume, additional levies that apply to China oil sales at an oil price in excess of US$65 bbl and the sale of crude oil inventory. The group achieved an 8% reduction in general and administrative expenses with costs of US$2.7 million (2018: US$3.0 million) in the period
A statutory profit before tax of US$26.4 million for the half year (2018: Loss US$7.3 million) was reported by the group. The profit result includes non-cash financing income of US$11.4 million associated with the revaluation of the options issued under the subordinated loan facility, which once excluded results in an underlying profit before tax of US$15 million (2018: US$1.8 million). The profit result has increased the income tax payable in China and Royalties payable in New Zealand.
The company reported EBITDAX (Earnings before interest, taxes, depreciation, amortization and exploration expenses) of US$44.3 million in H1 FY 2019 which is 81% higher than HY 2018, with the calendar year EBITDAX of US$88.3 million. Net debt reduced by US$24.4 million in the half year to US$64.2 million (from US$88.6 million at 30 June 2018), with US$20.4 million cash on hand, however, the net debt reduced by US$30.1 million over the calendar year 2018.
At 31 December 2018, the net debt of the group was further reduced to US$64.2 million (30 June 2018: US$88.6 million), a reduction of US$24.4 million during the half year. The net debt includes cash and cash equivalent assets held of US$20.4 million (30 June 2018: US$27.6 million) offset by nominal value of borrowings drawn down of US$84.59 million (30 June 2018: US$116.2 million), on the Syndicated Revolving Cash Advance Facility.
The company expects that the remainder of the 2019 financial year and beyond will be underpinned by continued strong oil production from the Group’s China and New Zealand operations.
On the price-performance front, the stock of Horizon Oil Limited last traded at $0.120 with an increase of ~4.34% during the day’s trade and with a market capitalisation of $149.73 million. The stock has generated a YTD return of 15.0% and posted negative returns of 4.17% and 11.54% over the last six months, and the three months respectively. It has a 52-week high price of $0.165 and a 52-week low price of $0.096 with an average trading volume of ~414,841.
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