Cooper Energy Ltd. - Momentum on turnaround results for FY18

  • Aug 13, 2018 AEST
  • Team Kalkine
Cooper Energy Ltd. - Momentum on turnaround results for FY18

Turnaround to Profit: Cooper Energy Ltd.’s (ASX: COE) stock witnessed the rise of 6.88% on August 13, 2018, before market close, as the company reported FY18 turnaround result with net profit after tax of $27.0 million compared to loss of $12.3 million in FY 17. The net profit result includes significant items of $17.2 million, majorly driven by profit on the sale of the Orbost Gas Plant. The company has completed the sale of the plant to the APA Group in October 2017, as per the agreement for APA to upgrade and operate the Orbost Gas Plant to process gas from the Sole gas field.

Further, FY 18 result includes a full one year performance as a predominantly gas business since its acquisition of Victorian gas assets in January 2017. Excluding significant items, underlying EBITDA grew 515% to $32.6 million with 441% increase in Cash generation with cash from operating activities of $22.2 million. The company has delivered strong cash flow and EBITDA growth majorly driven by the Otway Basin gas assets. Moreover, COE has recently completed the second well, Sole-4, and the company has planned to commence the pipelay in October to connect the wells to the plant. Sole Gas Project is 64% complete and is within schedule and budget. COE are within one year of the startup of Sole and the expects ramp-up in the annual gas production of 5 times. The Sole Final Investment Decision (FID) showed the 348% increase in proved and probable reserves at 30 June from 11.7 million boe to 52.4 million boe (barrels of oil equivalent). Gas reserves in the Otway Basin also rose after analysis of strong field performance. The total proved and probable gas reserves has increased to 309 petajoules. The company ended the year 2018 with drawn debt of $125.9 million and cash and other financial assets of $259.3 million. The company is having secured senior bank finance facilities totaling $265 million (including a $15 million working capital facility) to partly fund the Sole Gas Project. Additionally, COE has secured and commenced New Otway gas contract and is now negotiating 2019 contract. ASX: COE stock has risen 27.40% in three months as on August 10, 2018.

fIRST !!.png FY18 Financial Performance (Source: Company Reports)

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