Sundance Energy Australia Limited (ASX: SEA) presented its Q4FY18 and FY2018 financial and operations update on 28th March 2019. As per the company’s statements, the net sales volume for the fourth quarter ended 31st December (Q4FY18) was 1,303,684 barrels of oil equivalent (boe), up by 66% as compared to 784,995 boe reported in the fourth quarter of the financial year 2017(Q4FY17). The year-on-year production was up by 31% and reported at 3,771,610 boe for the financial year 2018 (FY18) as compared to 2,869,319 boe reported in the financial year 2017 (FY17).
Oil production jumped by 92% and reported at 844,391 barrels in Q4FY18, as compared to just 438,735 barrels in Q4FY17. The year-on-year oil production surged by 25% and reported at 2,256,043 barrels for FY18, as compared to 1,799,752 in FY17. Sundance marked a slight decline in natural gas production for the Q4FY18 and reported it at 1,121,258 thousand cubic feet (Mcf), down by 2% as compared to 1,146,789Mcf in Q4FY17. However, the year-on-year production of the natural gas soared by 25% and reported at 4,533,604Mcf in FY18, as compared to 3,621,289Mcf in FY17.
Sundance increased its average daily sales by 64% on a quarterly basis and by 29% on a year-on-year basis. The company reported average daily sales at 12,880 for Q4FY18, as compared to just 7,863 in Q4FY17. The average daily sales for FY18 was 9,612, as compared to 7,471 in FY17.
Sundance received $49.23 per Boe in Q4FY18, up by 26% as compared to $39.20 per Boe received in Q4FY17. The company realized $56.04 per Boe in Q4FY18, up by 49% as compared to $37.56 realized in Q4FY17. However, the company received $48.92 in FY18, which marked a rise by 28%, as compared to $38.28 received in FY17. The year-on-year realized price jumped by 24% and reported at $46.84 in FY18, as compared to $37.67 in FY17. The company recently released its audited reserve report.
Sundance reported revenue of $58.33 million for the Q4FY18, which marked a significant rise as compared to just $28.35 million in Q4FY17. The revenue for FY18 was at $164.92 million as compared to $104.39 million in FY17. The total attributable income to the owners of the company was at $64.72 million in Q4FY18, as compared to a net attributable loss of $10.67 million in Q4FY17. However, the net attributable loss on a yearly basis increased to $28.13 million for FY18, as compared to a net attributable loss of $22.43 million in FY17.
Sundance total assets increased to $802.07 million in FY18, as compared to $454.61 million in FY17. However, the total liabilities of the company jumped to $408.70 million in FY18, as compared to $277.26 million in FY17. The company ended its financial year 2018 with a net debt of U$313.4 million.
On the liquidity front, the net cash at the end of period FY18 declined to $1.5 million, as compared to $5.76 million in FY17.
Hedging: The hedging by the company covers more than 70% of 2019 forecast oil sales volume at an average price of approx. $60 per barrel floor price. The total 2019 forecasted unit is at 2,032,000 barrels with a floor of $60.33 per barrel and a ceiling of $67.19 per barrel.
The shares of the company closed at A$0.375 (As on 28th March 2019), up by 1.351% as compared to its previous close.
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