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New Zealand Oil and Gas expects a 17 per cent rise in operating earnings and a possible resumption of shareholder dividends as oil flows from the Tui field.
The company, which has a 12.5 per cent stake in the field, forecast earnings before interest, tax, depreciation and amortisation of at least $70 million from Tui in the year to June 2008.
"We have a large tax shield because of the exploration expense we've had over the years, which means we expect that will be tax-free," chief executive David Salisbury said.
In January, the company expected ebitda of around $60 million in the field's first year of production.
Salisbury said Tui production would peak in its first year, then settle lower over its eight-year commercial life. However, earnings would be boosted from 2010 by its second large investment, the Kupe oil and gas field. Ebitda for that was predicted to rise to $50 million by 2010.
- REUTERS
