HORIZON OIL ADVISES 2019 ANNUAL FINANCIAL RESULTS.
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Release date- 28082019 - The results for the financial year ended 30 June 2019 are set out in the attached results announcement, Preliminary Financial Report and Annual Financial Report.
All references to reserves and contingent resources within the financial report are drawn from the Horizon Oil 2019 Reserves and Resources Statement dated 28 August 2019.
Revenue increased 19.4% to US$126.7 million (A$186 million) for the 2019 financial year (US$106.2 million for the 2018 financial year).
EBITDAX of US$93.0 million, an increase of 36% over 2018 financial year.
Cashflow from operating activities of US$72.8 million (A$107 million) for the 2019 financial year, an increase of 26% on the 2018 financial year.
Underlying profit before tax of US$37.3 million; statutory profit before tax of US$48.4 million after US$11.2 million unrealised non-cash financing income.
Net debt reduced 68% to US$28.0 million as at 30 June 2019 (US$88.6 million at 30 June 2018).
Production and Development
Annual sales of 1.87 million barrels for the 2019 financial year, an increase of 13% on the 2018 financial year, at an average realised oil price of US$67.90/bbl, exclusive of hedge settlements.
Production of 1.6 million barrels for the 2019 financial year, an increase of 22% on the 2018 financial year.
Operating costs maintained below US$20/bbl for the financial year.
95% reserve replacement from reserves upgrades in both Maari/Manaia and Block22/12.
Finalised recovery of approximately US$5.0 million of outstanding insurance claims associated with historical Maari repair works.
Commenting on the result, Horizon Oil's Chief Executive Officer, Michael Sheridan, stated: Horizon Oil's strong operational and financial performance during the 2019 financial year has resulted in record annual oil sales of 1.87 million barrels, a 13% increase over the prior financial year, with operating costs maintained at below US$20/bbl.
This performance has led to annual revenue of US$127 million (before hedge settlements) and EBITDAX of US$93 million, levels last achieved by the Company in FY 2014 when oil prices were over 50% higher than current prices.
The sustained high levels of cashflow generation over FY 2019 and recent years has enabled the accelerated repayment of our development and acquisition debt funding, well ahead of schedule. Our net debt at 30 June 2019 was US$28.0 million, less than one third of our annual EBITDAX. We will continue to materially reduce debt during the current financial year and, assuming current production and oil prices prevail, we expect to be in a net cash position by mid calendar 2020.
The continued strengthening of Horizon Oil's balance sheet from internally generated capital will afford capacity, in the near to medium term, for identification of potential growth opportunities to complement our existing oil production from Beibu Gulf and Maari/Manaia and our material condensate and gas resources in Western Province, PNG.
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|Date:||Aug 29, 2019|
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