Excluding the Cue Energy Resources write down, the loss is $29.8 million, but NZOG has reinstated a dividend of 4c to shareholders, cash in hand has increased from $83.7 million a year ago to $96.8 million, and it will continue its 64 million share buy back.
Despite slashing exploration cash, NZOG is again talking up the potential of its southern offshore, deepwater exploration blocks, the Clipper and Barque prospects off Oamaru's coast.
Outgoing chief executive Andrew Knight said the group continued to generate strong free cashflows from its producing assets, after having reduced both corporate costs and exploration spending.
Net cash generated from operations and investment was up from $6.7 million last year to
$21.1 million, he said.
''The company is able to reinstate dividends because we have tightly controlled costs in a period when lower oil prices drove asset valuations lower,'' Mr Knight said.
Craigs Investment Partners broker Peter McIntyre said NZOG was ''in transition'' and while affected by the Cue write-down, it did have cash reserves; albeit still doing a share buy-
back.
''They need to get out there and keep up exploration, to generate income,'' he said.
Forsyth Barr broker Damian Foster said the $51.8 million loss was ''largely driven'' by the Cue writedown, which contributed $41.8 million to the loss.
''Cash flow remains healthy and cash flows from operating activities totalled $56.2 million, slightly ahead of our forecast of $55.8 million,'' he said.
Commentary suggests NZOG has started to manage its exposure to the ''lower for longer'' oil price environment, and mitigate the Government's carbon emission costs through ''modest hedging''.
Mr Knight said NZOG had received new geological data relevant to the exploration region off Oamaru, ''and Barque in particular''.
''Although exploration spending is considerably reduced, the company continues to engage with the Government about a change of conditions in the Clipper permit east of New Zealand's South Island, where its Barque prospect is the largest announced hydrocarbon prospect in New Zealand,'' Mr Knight said in a statement.
The geological data was being analysed against NZOG's previous understanding of the region's properties, and the company ''remained engaged with potential partners'' who had the scale and expertise to develop the prospect, he said.
Volumes of oil sold from Tui and Kupe were down by 27% and the average oil price was down 43% from $US68.41 to $US39.32 per barrel a year ago, which meant a revenue reduction from Tui and Kupe oil of $31.7 million. Group revenue from gas sales was down $1.3 million as a result of marginally lower prices.
However, total group sales revenue was up by $2.8 million, or by 2.4% to $119 million, Mr Knight said.
A full year of Cue earnings, in which NZOG has a 48.1% stake, was included in the result, contributing $49.5 million of sales, against last year when only one quarter of Cue's earnings, $11.1million, were included.
