New Zealand Oil & Gas Ltd. reported Thursday that financial results for the year to June 30 show increased sales volumes have offset lower oil prices.
Revenue for the 2014-15 year was up by $8.1 million (NZD 12.6 million), from $66.8 million (NZD 103.6 million) last year, to $74.9 million (NZD 116.2 million). Consolidation of Cue Energy contributed $7.2 million (NZD 11.1 million). Revenue excluding Cue remained steady.
Ebitdax (Earnings before interest, tax, depreciation, amortization and exploration) was $49.8 million (NZD 77.1 million), up from $48.7 million (NZD 75.4 million) the previous year. Gross profit was $25.6 million (NZD 39.7 million).
A net loss after tax of $4 million (NZD 6.2 million) for the year was recorded, compared to a net profit after tax of $6.5 million (NZD 10.1 million) in the previous year. The loss includes a write-down of $23.4 million (NZD 36.3 million) for the full year in the value of the company’s interest in the Tui oil fields. The carrying value was impaired because lower oil prices have brought forward the date when production from Tui is expected to become uneconomic.
The company is actively seeking M&A opportunities, more value from its Kupe asset, tighter control of costs and reduced spending on exploration.
Revenue from Kupe was steady, with increased sales volumes and favorable currency movement offset by price impacts.
Revenue from oil sales at Tui was up by 54 percent on a sales volume increase of 124 percent, mainly because the new Pateke-4H well began production in April. The well is performing better than expected, which contributed to an increase in shipments. Pateke-4H lowered the average production cost per unit sold, and increased amortization costs in line with production.
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