The global plunge in crude oil prices has resulted in explorer and producer New Zealand Oil and Gas booking a half-year loss, after an asset-value write-down of its offshore Tui oil field.
While revenue for the six months to December 2014 was up 5.2%, from $51.4 million a year ago to $54.1 million, driven by NZOG having a larger share in the Tui field, last year's half-year profit of $4 million was cut to a $10.5 million loss, because the Tui field was written down in value by $13 million because of low oil prices.
After having curbed exploration intentions, NZOG continues to have no debt and $115.2 million cash in hand and will still return $63.2 million to shareholders. Craigs Investment Partner broker Peter McIntyre said the result was ''in line with market expectations''.
While there had been disruptions to revenue, the company had spent $14.7 million to acquire a 19.99% stake in ASX-listed Cue Energy, and had since launched a takeover offer.
''Despite the low [oil] prices, NZOG is still on the acquisition trail, which is what its investors have come to expect,'' he said.
NZOG's share were up slightly at 62.5c after the announcement.
NZOG chief executive Andrew Knight said despite the effects of lower oil prices the underlying business was sound and had positive cash flows.
He expected gas sales volumes and prices to provide continued positive cash flows, while revenue would be supported by additional production from the Pateke-4H well, which next month is expected to be connected to a floating production vessel, with the first oil from as early as April.
NZOG's share in Tui increased from 12.5% to 27.5%.
Mr Knight said revenue figures were primarily driven by additional volumes from the company's larger share of the Tui field in the current six-month period and the timing of shipments, but the significantly lower oil prices had largely offset any volume gains.
