New Zealand Oil & Gas, which has interests in the Tui and Kupe fields, posted a 61 per cent drop in annual profit, reflecting a "sharp" increase in exploration costs and some foreign exchange losses on its US dollar holdings.
Profit dropped to $10.1 million, or 2.4 cents a share,in the 12 months ended June 30, from $25.9 million, or 6.5 cents, a year earlier, the Wellington-based company said in a statement. Revenue rose 4 per cent to $103.6 million.
The oil and gas explorer said its exploration and evaluation investment costs surged 77 per cent to $75 million from the previous year and is expected to continue at around US$35 million a year. Earlier this year the company said it had found no significant gas or oil shows in its Matuku well near Taranaki. It continues to build its portfolio, with four new exploration permits awarded last year, two in New Zealand deep water and two in Indonesia.
NZOG said it is finalising a development plan for the Kisaran wells in onshore Sumatra, Indonesia, with a final investment decision expected before the end of 2014.
The company's net tangible assets declined 6 per cent to 81 cents a share. It will pay a final dividend of 3 cents a share on Sept. 26.
