Gas minor outperforms big counterparts, turns a profit

Gas minor outperforms big counterparts, turns a profitby Peter Kllnger
Empire Oil & Gas has outdone many bigger peers by reporting an increase in underlying profit and avoiding asset impairments, despite collapsed energy prices.
Helping Empire is a fixed price gas off take deal with customer Alcoa, which underpinned development of the Red Gully gas-condensate plant near Gingin. Empire is delivering the second and final tranche of gas under the deal to Alcoa.
Unlike the first tranche, which included a pre-payment to help pay for Red Gully, Empire has been receiving gas sales revenue since August.
In a further boost, Red Gully is producing more (9.4 terajoules a day) than required under the Alcoa deal (up to 8Tj/d), allowing Empire to use the extra gas sales to offset falling revenue from condensate sold to the BP Kwinana refinery.
Empire’s first half revenue was up 13 per cent to $10.5 million, based on sales of 1486Tj gas and 55,198 barrels of condensate.
Earnings before interest, tax, depreciation and amortisation were $5.3 million, up 43 per cent, while the pre-tax profit of $1.7 million was up 253 per cent.
The net profit of $1.2 million was down on the previous corresponding period’s $5.8 million result, which included a $5.2 million tax benefit.
Red Gully is producing gas at rates of 9.4Tj/d, close to its 10Tj/d nameplate capacity, and Empire said it was confident of maintaining the performance.
The Perth Company also stuck to its January forecast of delivering full-year revenue of $20.3 million, pointing to extra sales offsetting weaker commodity prices. Empire shares firmed 35 cents to 38 cents.
Article in the Weekend West in the west business section page 109
All so refer to article below for more write ups on Empire.
https://au.news.yahoo.com/thewest/wa/a/31073373/empire-up-on-pre-tax-profit-lift/