One would wonder if they've made a blunder by spending $50...

One would wonder if they've made a blunder by spending $50 million to close out their 08 hedging position.
The oil was around $140 when they closed out the hedging and now oil price has dropped nearly 20%.

I won't be suprise if their earning is negative this FY07/08 given they have $130 million hedging loss.
"Whilst sales revenue has been boosted by the significant increase in the oil price, the “mark-to-market” adjustments for the hedge book for the 12 months to June 2008 (as required by Accounting Standards) will result in an expected A$130 million hedge book expense in the Company’s 2007 / 2008 Income Statement."