Zephyr Energy expects revenue to rise in H2 after H1FY23 sales decline by 48%

2 min read | October 02, 2023 04:16 PM AEDT | By Team Kalkine

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Zephyr Energy expects revenue to rise in H2 after H1FY23 sales decline by 48% — Image source: Thapana_Studio

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Highlights

In H1 FY23, Zephyr Energy generated a total revenue of USD 13.40 million, 48.34% down from USD 25.94 million in pcp.

ZPHR’s gross profit witnessed a fall of about 74.50% in H1 FY23 to USD 3.95 million, from USD 15.49 million in H1 FY22.

In H2 FY23, the firm is expecting its revenue as well as production to level up.

Zephyr Energy PLC (LSE:ZPHR) is a United Kingdom-based oil and gas company incorporated as an investment platform to aggregate interests in the United States’ Rocky Mountain region.

Following its business strategy of growing its cash flow from its non-operated portfolio, the firm made key investments in H1 FY23, in developing its flagship operated project in the Paradox Basin, Utah, USA. It has also put its capital into building its portfolio of assets in the Williston Basin.

In H1 FY23, the company generated a total revenue of USD 13.40 million, 48.34% down from USD 25.94 million. The overall revenue dropped for the reporting period due to fall in the quantity produced as well as lower average realized prices. Also, the firm’s gross profit witnessed a fall of about 74.50% in H1 FY23 to USD 3.95 million, from USD 15.49 million in H1 FY22. This was primarily due to reduced revenue, increased operating, and transportation expenses in H1 FY23.

A welcome development

Last month, Zephyr Energy received a notification from Dominion Energy, Utah, LLC regarding its gas supply pipeline to the Green River area from the Northwest Gas Pipeline system. It notified that the Dominion pipeline will be functional in Q4 2023. The pipeline will allow export of natural gas volumes from the Paradox project.

In H2 FY23 financial year, the firm is expecting its non-operated revenue and production to level up. ZPHR’s revenue is likely to grow when the Slawson Exploration Company’s non-operated wellbore interests goes digital.

Stock price Performance

The company’s stock price has decreased by approximately 31.57% in the past three months. The stock’s 52-week high and low price stand at GBX 7.48 and GBX 2.42, respectively.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 29 September 2023. The reference data in this report has been partly sourced from EODHD/Others.

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