Stuart Announces Maiden Dividend
Stuart Petroleum declared a maiden two cent per share fully franked dividend after releasing its full year results which show that the Company had its best year yet.
Stuart announced a record net profit after tax of $10.161 million or 16.1 cents per share [diluted] for the twelve months ended 30 June 2005. This represents an increase in profit of 171% over the previous year.
Stuart's Managing Director Mr. Tino Guglielmo said that "the company was pleased to be in a position to declare its maiden franked dividend just three years after production commenced. The Cooper is a wonderful place to grow a business," Mr. Guglielmo said.
This record Basin result was set against the backdrop of a $6.1 million write down of the carrying value of capitalized exploration and an income tax expense of $3.5 million.
The driver for this result was a 154% increase in full year crude oil production and sales to a record 832,060 barrels and the current high oil price environment. Full year crude oil sales revenue totaled $44.1 million or A$52.97 per barrel, representing a 200% increase over previous year.
The company also reported that it had eliminated all its bank debt. Stuart had bank borrowings of almost $10 million at the half year ending 31 December 2004. Stuart has worked to establish a significant production infrastructure in the field over the past two of years which has resulted in marked operating cost reductions.
"The secret is getting out, the Cooper Basin is a world class onshore basin and we have been successful in attracting international partners to farm in to our tenements," Mr. Guglielmo added.
Stuart is an Adelaide based exploration and production company with assets exclusively in the Cooper Basin of South Australia and has a market capitalization of $68 million.