New Zealand Oil & Gas was back in the black and kept its dividend unchanged after reaping a $95 million gain on the sale of its stake in the Kupe oil and gas fields and trimming its operating and exploration costs.
The Wellington-based company reported a net profit to shareholders of $61.2 million, or 20 cents per share, in the 12 months ended June 30, turning around a loss of $35.9m, or 8.6 cents, a year earlier, it said in a statement. The bottom line was bolstered by the $168m sale of its stake in Kupe, which saw a 25 per cent fall in revenue to $37.1m.
The energy and gas explorer has been cutting costs in response to the slump in global oil prices, while the exit from Kupe flooded its coffers which it plans to recycle into new prospects as global rivals quit more marginal exploration areas. NZOG's operating costs shrank 16 per cent to $15.9m and exploration costs fell 44 percent to $12.3 million.
"The main contributor to the net profit after tax was a gain on the sale of the company's 15 per cent stake in the Kup gas and light oil field," NZOG said. "Together with the disposal of the mature Tui interest, the company has successfully minimised its exposure to abandonment liabilities."
The board declared a fully imputed final dividend of 4 cents per share, payable on November 3 with a record date of October 24. That's unchanged from last year, and adds to the $100m share buyback which returned capital from the Kupe sale.
