Senex's higher production drives increased revenue

24th August 2020 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – ASX-listed Senex Energy has reported increased production and sales revenue for the full year ended June as the company completed its A$400-million Surat basin gas development projects.

Production for the full year was up 73% on the previous financial year, to 2.1-million barrels of oil equivalent, with gas production from the Roma North project up 278%, to 1.2-million barrels of oil equivalent.

Sales revenue for the period was up by 28%, to $120-million, while underlying earnings before interest, taxes, depreciation and amortisation was up 51%, to $53-million, and operating cash flow reached $52-million, up 16% on the previous financial year.

Senex MD and CEO Ian Davies told shareholders on Monday that the company outperformed throughout 2020, delivering outstanding project, operating and financial results as it continued its trajectory towards high-yielding free cashflow generation in 2022.

“Following the onset of Covid-19, Senex rapidly implemented broad ranging protocols and procedures to mitigate impacts of the pandemic. This ensured business continuity and uninterrupted operations throughout this critical period, while our large capital works programme continued on schedule.

“We also undertook decisive action to streamline operations which will deliver material and ongoing cost savings. Senex remains a highly cost competitive, agile and scalable business well positioned to deliver on its growth strategy.

“Our success in 2020 sees Senex’s transformation to a diversified oil and gas producer now complete. We have a low cost business model with a diversified asset portfolio and material acceleration and expansion growth opportunities.”

Senex is targeting a production of 3.6-million to 4.1-million barrels of oil equivalent in 2022.