NZ Oil and Gas $75.9 million in the red

Pike River tragedy burdens listed oil and gas company's books.

Tragedy at the Pike River coal mine has weighed heavily on the books of  New Zealand Oil & Gas (NZOG) – $75.9 million in the red for the year to June 30.

However the net loss revealed this morning was an improvement on the position at half-year when the net loss stood at $99 million.

NZOG earned total operating revenue of $106.5 million and recorded a gross profit from operating activities of $52.7 million.

But the listed oil and gas company’s bottom line was severely impacted by last year’s tragic events claiming 29 lives at its 30%-owned West Coast mine, in receivership, with related provisions and losses adding up to $98.8 million.

Unrealised after-tax foreign exchange losses of $7.7 million were also recorded.

Excluding these two items, the normalised net profit for the year was $30.6 million, which could be compared with $14.7 million for the same time last year.

There's no doubt the  Kupe gas and oil field off the south Taranaki coast is now  NZOG’s largest revenue source, providing $66.33 million in revenue.

Although the board said in February it would not pay a dividend this year, it has decided to distribute a fully tax paid annual dividend of 2 cents a share in September.

Shares in NZOG are trading at 62c, almost half what they were valued at this time last year.

Login in or Register to view & post comments