Cooper Energy Limited (ASX: COE) is into oil and gas exploration and production. It has its operations in the Cooper Basin for oil production along with the South Sumatra Basin. With many retention licenses and production licenses, the group emerges out to be as a key energy player.
On 11 February 2019, the company updated its FY19 first-half results and outlook for the company. Following the release of news, the share price of the company increased by 1.01% on 11 February 2019.
As per the release, the company recorded a statutory loss of $12.6 million after incurring significant items of $(15.7) million for the six months to December 2018 (FY19 first half). The result compares with the FY18 first-half statutory profit of $19.8 million, which included significant items totalling a gain of $17.6 million. The significant items in the FY19 first half primarily comprise a $16.5 million increase in restoration expense arising from the reassessment of provisioning for the rehabilitation of the non-producing Patricia Baleen gas field.
The company increased its revenue generation from gas supply was the key factor in the higher underlying profit. Sales revenue for the period grew 16% to $36.2 million, up from $31.3 million, despite lower production and sales volumes. Growth in revenue from gas, which increased from $19.5 million to $25.6 million, more than offset the impact of reduced revenue from oil.
The company increased its earnings generation before significant items. Underlying PAT for the six months period to December rose 41% to $3.1 million compared with $2.2 million. Underlying EBITDA of $13.8 million for the half-year was 6% higher than $13.0 million recorded in the previous first half.
The total assets of the company increased by $102.1 million from $816.8 million to $918.9 million. At 31 December 2018, the company had cash and deposit balances of $193.9 million, other financial assets of $1.7 million, investments of $1.6 million and drawn debt of $186.4 million. Cash and deposit balances decreased by $43.0 million over the period with operating cash outflows at $1.6 million.
The rest six months of the financial year is expected to be another significant period as per the company, as it completes the Sole Gas Project, drills onshore and offshore gas exploration wells and secures additional gas contracts. The 2019 offshore drilling program, comprising the Annie and Elanora exploration wells in the Otway Basin, is expected to commence in May with each well forecast to take approximately 30 – 40 days inclusive of allowances and contingencies. Onshore drilling plans include the drilling of the Dombey-1 gas exploration well in the Otway Basin and in-fill appraisal drilling by the PEL 92 Joint Venture on the Parsons field.
On the price-performance front, the stock is currently trading at $0.50 with a market capitalisation of $802.67 million. The stock has yielded a YTD return of 15.12% and posted returns of 5.32% and 11.24% over the last six months and one-month period, respectively. It has a 52-week high price of $0.505 and a 52-week low of $0.292, with an average volume of ~3.56 million.
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