e886ad54-243c-47da-be21-0013d94d8f44.pdf


To: Company Announcement Office From: Senex Energy Limited Company: ASX Limited Pages: 40


Date: 23 February 2016


Subject: Senex Energy Limited (ASX:SXY) FY16 Half Year Results



I provide the following for the Senex Energy Limited 2016 half year results:


Page 2 Appendix 4D

Page 3 ASX Announcement

Page 6 Half Year Report


With regards

Frank Connolly Company Secretary


Half year report for the period ended 31 December 2015

Based on accounts that have been reviewed


Results for announcement to the market



All comparisons to half year ended 31 December 2014


$ million


Revenue from ordinary activities

Decreased

47%

to

36.8

Loss after tax from ordinary activities

Decreased

59%

to

(27.1)

Underlying profit after tax from ordinary activities

Increased

225%

to

5.2


Underlying profit after tax is a non-IFRS measure and a reconciliation to profit/ (loss) after tax from ordinary activities is included below. Commentary on the Group's operating performance and results from

operations are set out in the attached half year announcement and report.


Dividends

No dividends are proposed and no dividends were declared or paid during the current or prior year.


Net tangible asset backing


2015

2014

Net tangible assets per ordinary security

$0.33

$0.37



Additional Appendix 4D disclosure requirements can be found in the Directors' Report and the 31 December 2015 half year financial statements.

This report is based on the consolidated 2015 half year financial statements which have been reviewed by Ernst & Young.


Reconciliation of profit/ (loss) after tax from ordinary activities to underlying profit after tax


2015

2014

Profit/(Loss) after tax from ordinary activities

(27.1)

(65.9)

Gain on sale of Maisey block

(38.2)

-

Impairment expense

69.7

86.5

Redundancies

0.8

-

Tax (benefit)/expense

-

(19.0)

Underlying profit after tax from ordinary activities

5.2

1.6


2016 half year results Release Date: 23 February 2016


Senex Energy Limited (ASX:SXY, Senex) has today announced its 2016 first half results, reporting an underlying profit of $5.2 million and a statutory loss after tax of $27.1 million.


FY16 half year results against previous corresponding period:


  • Net production of 0.54 mmboe, down 26% as a result of significantly lower capital investment
  • EBITDAX1 of $56.4 million, up from $33.5 million
  • Underlying net profit2 of $5.2 million, up from $1.6 million, reflecting material cost savings
  • Statutory loss after tax of $27.1 million after a non-cash impairment charge of $69.7 million reflecting the lower oil price environment, partly offset by a $38.2 million gain on sale of the Maisey block
  • Strong financial position with cash balance of $100 million and total liquidity of $177 million
  • Net tangible assets of 33 cents per share
  • Completion of value accretive transactions with GLNG, de-risking the progression of the Western Surat Gas Project towards a Final Investment Decision
  • On track to meet production and capex guidance for FY16


Senex has announced an underlying net profit of $5.2 million for the half year ended 31 December 2015, reflecting the offsetting impacts of material cost savings (corporate, operational and capital), and a lower average realised oil price. The Company recognised a $38 million gain on sale of the Maisey block in Queensland as part of its half year result, with the disposal of this asset delivering material value to shareholders. The gain was realised through a series of strategic transactions in the Surat Basin with neighbouring natural gas producers QGC and GLNG.

This gain was offset by a non-cash impairment of $69.7 million recognised on certain of the Company's longer-dated Cooper Basin exploration assets. Senex posted a statutory loss after tax of $27.1 million after allowing for these one-off items.

Senex has continued to drive down cost in the business, reporting an operating cost per barrel of A$28 against an average received oil price of A$71 per barrel for the half year ended 31 December 2015.

Through hedging instruments, Senex has locked in a floor price of A$72 per barrel for oil sales in the second half of FY163.

Senex Managing Director, Ian Davies, said that the Company remained resilient in the face of the ongoing oil downturn given its strong financial position and low cash cost profile, and remained attentive to the volatile environment.

"Senex entered 2016 with $100 million of cash on hand and no debt to service. We have further reduced our cost base during the first half of FY16 in support of profit margins at current prices.

"Senex remains committed to delivering growth for shareholders and we demonstrated this in the strategic transactions agreed with GLNG during the period. These transactions unlock material shareholder value and bring us a further step towards commercialisation of our Western Surat Gas Project.



"We will continue to invest in the right opportunities within our business and externally, where they align with our strategy and meet our economic criteria.

"Meanwhile, our valuable strategic partnerships in the Cooper Basin are also moving our business forward. We are progressing our unconventional gas project with Origin Energy and our Murta Formation tight oil project with Halliburton, accessing expertise and funding to progress these important growth projects.

"The focus of the Senex team is on building a robust oil and gas business that not only survives the current downturn but comes out the other end stronger and healthier. We are continuing to progress our growth projects at the same time as maturing our portfolio of exploration assets to position the Company strongly for an oil price recovery," Mr Davies said.



RESULTS WEBCAST


Senex Managing Director and Chief Executive Officer Ian Davies and Chief Financial Officer Graham Yerbury will hold a webcast today to discuss the full year results and outlook:


Time: 9.00am AEST (9am Brisbane time, 10am Sydney and Melbourne time) Date: Tuesday 23 February 2016


The webcast will be streamed live at this time and can be accessed via the Senex website (www.senexenergy.com.au) or through the following link: http://webcast.openbriefing.com/2677/


A recording of the webcast will be available from 5pm AEST via the same link.



FURTHER INFORMATION



Investor Enquiries: Ian Davies Managing Director

Senex Energy Limited Phone: (07) 3335 9000


Tess Palmer

Investor Relations Manager Senex Energy Limited Phone: (07) 3335 9719

Media Enquiries: Karen Cottier

Corporate Communications Manager

Senex Energy Limited Phone: (07) 3335 9859


ABOUT SENEX ENERGY


Senex is a growth focused exploration and production company based in Brisbane. With a 30-year operating history, Senex holds extensive onshore oil and gas acreage in the Cooper and Surat Basins. Senex operates the majority of its assets, produces over one million barrels of oil annually, and is successfully developing a gas business including the Western Surat Gas Project in Queensland.

Senex Energy Limited issued this content on 02 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 12 March 2016 19:59:07 UTC

Original Document: http://www.senexenergy.com.au/investor-centre/files/fy-16-half-year-announcement-report/