Senex narrows loss amid oil price pressure
Oil and gas explorer Senex has slashed spending to ride out the oil price crash, but ended a second year in the red.
Oil and gas explorer Senex has continued to slash capital expenditure and cut costs in order to survive the oil price crash, but has closed a second year in the red.
Senex (SXY) today booked a loss of $33.2 million for the year through June, a significant improvement on the prior year’s $81m loss.
“Senex demonstrated a strong defensive response to deteriorating market conditions during the financial year,” chief executive Ian Davies said.
Revenue fell 40 per cent to $69.3m over the year. Production was 27 per cent lower as the company shrunk capital investment, while the low oil price hammered sales revenue.
The oil price plunged to a 13-year low below $US30 a barrel in February this year, a far cry from the 2008 peak of $145 a barrel. Senex cut its operating costs to $28 a barrel over the last year.
“Oil production was solid given the low level of investment, and was delivered at our lowest ever operating cost. Combined with a well-timed hedging program we maintained healthy margins from oil sales,” Mr Davies said.
“As a business we acted decisively to minimise capital expenditure throughout the year, and focus our resources on creating internal efficiencies to set stronger foundations for recovery and growth,” he said.
Senex chose not to pay a dividend for the second year in a row.