Ann: FLLYR: NZO: New Zealand Oil & Gas Financial Statements

• Release Date: 27/08/15 08:43
• Summary: FLLYR: NZO: New Zealand Oil & Gas Financial Statements
• Price Sensitive: No
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					NZO
27/08/2015 08:43
FLLYR
PRICE SENSITIVE
REL: 0843 HRS New Zealand Oil and Gas Limited

FLLYR: NZO: New Zealand Oil & Gas Financial Statements

New Zealand Oil & Gas full year results
o Revenue up 12% to $116.2m; Ebitdax up $1.5m to $77.1m; Net loss $6.2m
o Increased sales volumes offset lower oil prices
o Successful acquisition of Cue adds to performance
o Exploration spending reduced from $75m to $32m.

New Zealand Oil & Gas financial results for the year to 30 June 2015 show
increased sales volumes have offset lower oil prices.

Revenue for the 2014-15 year was up by $12.6 million, from $103.6 million
last year, to $116.2 million. Consolidation of Cue Energy contributed $11.1
million. Revenue excluding Cue remained steady. (All figures NZD)

Ebitdax (Earnings before interest, tax, depreciation, amortisation and
exploration) was $77.1 million, up from $75.4 million the previous year.
Gross profit was $39.7 million.

A net loss after tax of $6.2 million for the year was recorded, compared to a
net profit after tax of $10.1 million in the previous year. The loss includes
a write-down of $36.3 million for the full year in the value of the company's
interest in the Tui oil fields. The carrying value was impaired because lower
oil prices have brought forward the date when production from Tui is expected
to become uneconomic.

The company is actively seeking M&A opportunities, more value from its Kupe
asset, tighter control of costs and reduced spending on exploration.

Revenue from Kupe was steady, with increased sales volumes and favourable
currency movement offset by price impacts.

Revenue from oil sales at Tui was up by 54 per cent on a sales volume
increase of 124 per cent, mainly because the new Pateke-4H well began
production in April. The well is performing better than expected, which
contributed to an increase in shipments. Pateke-4H lowered the average
production cost per unit sold, and increased amortisation costs in line with
production.

Cashflow from operations was strong, at $59.3 million. The company had $83.7
million of cash at the end of the year and no debt. In February $63.2 million
of capital was returned to shareholders, which resulted in one in five shares
being cancelled in return for paying shareholders 75 cents per share
cancelled.

Overall for the year, the company's operating costs and amortisation were up
by $28.8 million to $76.5 million. The main factors in the operating cost
increase were higher amortisation costs in line with Pateke production, a
foreign exchange impact, and the company's increased interest in Tui which is
reflected in the full year compared to three quarters in the previous year.
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While the industry is working through the impact of declining oil prices,
valuations and production levels are dependent on future oil prices and asset
valuations could be further impaired in the future if lower oil prices are
sustained.

The company expensed $15.6 million after surrendering three exploration
permits off Taranaki during the year.

Cue's ebitdax for the three months since effective control was gained was
$5.0 million, after significant one-off expenses incurred on its takeover
defence.

Chief executive Andrew Knight says higher volumes of oil and gas during the
year have offset lower oil prices, and revenue rose in the year with the
acquisition of Cue Energy contributing to the increased revenue.

"Cashflow into the business remains strong. Volume increases have offset
lower prices.

"Our cash flows and balance sheet provide the opportunity to acquire
under-valued assets. Our screening has identified opportunities where
significant value is available. While there are further opportunities in the
market we are prepared to be patient to ensure shareholder value is enhanced.

"We are looking to optimise existing assets. We have identified opportunities
in the Kupe asset. The well intervention programme early in 2015 has shown
early positive signs of well performance improvement, and the joint venture
is continuing to review resources and a field development plan. We are
assessing whether opportunities in the permit have the potential to be
developed and the most efficient means to further optimise recovery from
existing wells.

"Exposure to exploration is being carefully managed to match the reduced risk
tolerance in this part of the pricing cycle. Some legacy commitments exist in
our portfolio to be worked through and I expect Cue Energy to undertake a
strategic and portfolio review shortly.

"New Zealand Oil & Gas is weathering the global downturn in prices with good
cash flows and increased production. I expect to see more value from our
producing assets in the coming year. We will continue to keep tight control
of costs in the current conditions and position to capture value for
shareholders."

EBITDAX
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FY15 FY14 NZ$ millions NZ$ millions
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Net (loss)/profit after tax (6.2) 10.1
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Add back:
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Income tax credit / (expense) (5.8) 7.3
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Net Finance income / (costs) (2.9) 2.4
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Exploration and evaluation costs expensed 15.6 29.5
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Asset Impairment 36.3 -
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Amortisation & Depreciation 40.1 26.4
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EBITDAX 77.1 75.4
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Less:
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Gain on purchase of subsidiary (15.4) -
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Normalised EBITDAX 61.7 75.4

John Pagani, External Relations Manager, DDI: +64 4 471 8333, MOB: +64 21 570
872
End CA:00269157 For:NZO    Type:FLLYR      Time:2015-08-27 08:43:24