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Key Points:
- Cooper Energy achieved record production of 6.85 PJe and revenue of $65.8 million in Q1 FY25.
- The Orbost Gas Processing Plant (OGPP) delivered record production rates, reaching 66.2 TJ/d in September.
- The company recorded its highest-ever spot gas sales with no spot gas purchases required.
Cooper Energy (ASX:COE) has reported a stellar performance for the first quarter of FY25, showcasing record production and revenue for the period ended 30 September 2024. The company's total production for the quarter reached 6.85 Petajoules equivalent (PJe), translating to an average daily production rate of 74.5 Terajoules equivalent per day (TJe/d), marking a 17% increase from the previous quarter (Q4 FY24). This significant rise in production was accompanied by a corresponding increase in revenue, which climbed 15% from Q4 FY24 to reach $65.8 million.
Strong Production Performance at OGPP
A key driver of Cooper Energy’s robust quarterly results was the exceptional performance of the Orbost Gas Processing Plant (OGPP). OGPP production rates averaged 62.3 Terajoules per day (TJ/d) over the quarter, a 22% improvement from Q4 FY24. September, in particular, saw a standout performance, with the highest monthly average production in the history of the Sole Gas Project and OGPP, reaching 66.2 TJ/d. During the quarter, production rates above 66 TJ/d were recorded on more than half of the days, underscoring the plant’s consistent output.
The ongoing OGPP improvement project continues to yield positive results, with the plant achieving a record runtime of 10 weeks between absorber cleans, which are critical maintenance activities. Moreover, the latest absorber clean was completed in the shortest duration in OGPP’s history, highlighting the operational efficiencies gained through this improvement initiative.
Record Spot Gas Sales and No Purchases Required
Cooper Energy also recorded its highest-ever spot gas sales in the first quarter, averaging 15.2 TJ/d. This was made possible by higher and more consistent production levels at OGPP, ensuring the company could meet market demand without needing to purchase spot gas during the quarter. The ability to maintain high production levels and avoid spot gas purchases demonstrates the company's increasing operational self-sufficiency and reliability in meeting its supply commitments.
Progress on East Coast Supply Project (ECSP)
In addition to its strong production results, Cooper Energy made further strides with its East Coast Supply Project (ECSP). The company is advancing this project by ordering long-lead items, which are essential for the timely completion of the development. Cooper Energy is also engaged in ongoing discussions with foundation gas customers, which will help secure long-term supply agreements and strengthen the project’s commercial foundation.
Outlook
Cooper Energy's Q1 FY25 performance showcases the company’s operational strength, driven by record production rates, robust revenue growth, and significant progress on key strategic initiatives. With continued improvements at OGPP and advancements in the ECSP, the company is well-positioned to maintain its growth trajectory in the coming quarters.
