Cooper Energy shares jump as Victorian gas project takes shape
COOPER Energy has surged into profitability in its first full year as a predominantly gas business, with the company’s cash generation up more than 400 per cent.
COOPER Energy has surged into profitability in its first full year as a predominantly gas business, with the company’s cash generation up more than 400 per cent.
The Adelaide energy company has oil and gas assets however its main focus is delivering the Sole gas project off the Victorian coast, which it said was 64 per cent complete and “within schedule and Budget.
The company’s shares were up more than 7 per cent at 50c in early trade.
Net profit for the full year was $27 million, compared with a loss of $12.3 million the previous year.
This included one-off items of $17.2 million including funds from the sale of the Orbost gas plant.
Underlying EBITDA was up 515 per cent to $32.6 million and underlying net profit was $9.8 million, up from a loss of $8.7 million. Managing director David Maxwell said the company had ticked off “a long list of commercial, project and technical milestones’’ during the year.
“The ‘main event’ for the year was, without doubt, the Sole Gas Project which, over the past 12 months, has been financed, taken to final investment decision and is now 64 per cent complete with both production wells ready for connection” Mr Maxwell said.
“The project continues to proceed within schedule and budget. We are now within 12 months of the start-up f Sole and the forecast ramp-up in our annual gas production of 5 times.”
The company concluded the year with drawn debt of $125.9 million and cash and other financial assets of $259.3 million.
Mr Maxwell said the company expected another busy year.
“Market conditions and the outlook for cost competitive gas in southeast Australia are highly encouraging for the foreseeable future.
“Delivering the Sole Gas Project on time and within budget is clearly the highest profile, and most significant, task in our program. Alongside this, there is a package of other commercial and drilling projects we expect to advance with the object of providing revenue and production growth additional to that which will flow from Sole.’’