New Zealand Oil & Gas turned in a first-half profit on reduced impairments from the failed Pike River Coal venture and improved revenue from the Kupe and Tui oil fields.
Net profit was $2.3 million in the six months ended December 31, from a loss of $99 million a year earlier, when the company took Pike-related impairments of $98.6 million.
Sales rose 35 per cent to $54.6 million, just below the $55.5 million estimate from brokerage Forsyth Barr.
NZOG took a further $22.2 million impairment against the value of its remaining Pike River debt, reflecting "the ongoing cost of the receivership, the highly conditional nature of further receipts and uncertainty regarding timing," it said yesterday.
The Kupe field is NZOG's biggest cash generator, contributing $37.1 million in sales and $14.4 million in earnings before interest and tax in the first half. The Tui field, where reserves are in decline, had sales of $17.5 million and ebit of $9.4 million.
