Source: Central Petroleum
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Central Petroleum (CTP) closes flat on the ASX following a mixed annual report for its 2021 financial year
  • The company has reported an 8 per cent decline in total year-on-year sales revenue to $59.8 million
  • With total annual sales volume down 17 per cent to 10.3 petajoules, CTP’s gross profit has slipped 2 per cent to just shy of $31 million for the year
  • CTP says it reduced its net debt by 32 per cent over the year to $31.3 million and extended a loan facility by 12 months to late-2022
  • Shares in Central Petroleum have closed flat at 11 cents each

Oil and gas producer Central Petroleum (CTP) closed flat on the ASX following a mixed annual report for its 2021 financial year. 

Somewhat late to the reporting party, Central Petroleum highlighted total sales revenue of roughly $59.8 million for the 12 months to the end of June 2021 — an 8 per cent decrease on the year before. 

The soft sales translated to a similar decline in earnings before interest, tax, depreciation and amortisation (EBITDA), which dipped 7 per cent year-on-year to $18.3 million.

Inversely, EBITDAX — a reportable figure unique to oil and gas companies that are both producing and exploring — grew 4 per cent to $26 million for the year. EBITDAX ignores expenses associated with exploration to typically present a truer picture of a company’s earnings from operations. 

Nevertheless, with total annual sales volume down 17 per cent year-on-year to 10.3 petajoules, CTP’s gross profit slipped 2 per cent to just shy of $31 million for the year. 

The company said the soft sales volume reflected weaker markets in the first half of the year and natural field decline throughout the year. Nevertheless, CTP said its sales were supported by its portfolio of long-term gas supply contracts.

Further, despite the mixed annual results, CTP reduced its net debt by 32 per cent over the year to $31.3 million and extended a loan facility by 12 months to late-2022.

Looking ahead, CTP said its three-well Range pilot in Australia’s Surat Basin had been drilled and was already flowing small volumes of gas.

The company is planning to use the data from this pilot to complete front-end engineering and design (FEED) work to reach a final investment decision for the Range Gas Project. CTP is targeting this final investment decision for March 2023.

CEO Leon Devaney said CTP’s FY21 financial year performances placed the company in a “strong” position to approve its gross strategies.

“Cash balances of $37.2 million were on hand at June 30, boosted by the proceeds from the pre-sale of 3.5 petajoules of gas for delivery in 2022/2023,” Mr Devaney said.

He said while the company expected cash flows and revenues to be lower in the coming months on the back of a recent asset sell-down, CTP’s investment in new production and exploration opportunities could unlock more value from its portfolio.

CTP provided no specific earnings or production guidance for the 2022 financial year.

Shares in Central Petroleum closed flat at 11 cents each. The company has a $79.7 million market cap.

CTP by the numbers
More From The Market Herald
The Market Herald Video

" 92 Energy (ASX:92E) intersects best uranium interval to date at GMZ discovery

92 Energy (ASX:92E) intersects its best interval of uranium mineralisation to date at the GMZ Uranium…
The Market Herald Video

" Strike Energy (ASX:STX) and Warrego Energy (ASX:WGO) confirm extension of high-quality gas resource at West Erregulla

Strike Energy (ASX:STX) and Warrego Energy (ASX:WGO) have confirmed a northern extension of a high-quality gas…
The Market Herald Video

" Buru Energy (ASX:BRU) systematic appraisal of JV Rafael discovery delayed

Buru Energy's (ASX:BRU) joint venture partner Origin Energy (ASX:ORG) delays systematic appraisal of the Rafael gas…

" Comet Ridge (ASX:COI) finalises acquisition settlement of Mahalo

Comet Ridge (ASX:COI) has completed the acquisition of Australia Pacific LNG's (APLNG) 30 per cent interest…