Here’s Why Cooper Energy’s (COE) Report Is A Mixed Bag

Cooper Energy Limited (ASX: COE) released its FY19 results this morning and reported a statutory net loss after tax of $12.1 million. Here’s what you need to know.

What Did Cooper Energy Report?

Statutory net profit at Cooper Energy fell $39.1 million from a net profit of $27 million in the 2018 financial year (FY18) to a net loss of $12.1 million in FY19. However, on an underlying basis, net profit after tax (NPAT) was actually up 36% to $13.3 million on the back of a 28% increase in gas sales revenue.

The reason for the discrepancy in the statutory and underlying profit figures largely comes from a $26.2 million non-cash restoration expense that is not considered part of the ongoing operations of the business.

Importantly, Cooper has managed to secure a number of new gas contracts in recent months including agreements with ASX heavyweights Origin Energy Limited (ASX: ORG) and AGL Energy Limited (ASX: AGL).

Sole Gas Field

Towards the end of the financial year, the company completed construction of its flagship Sole Gas Project safely and within budget. The Sole gas field, an offshore development, is now ready to commence production upon the completion of the upgrade to APA’s Orbost gas plant. Cooper Energy is anticipating a substantial increase in gas production in FY20 as a result.

Management Comments & Outlook

Upon the release of the results, Managing Director David Maxwell said that the FY19 results highlighted the value of the company’s growing gas business.

Maxwell was pleased with the growth in gas sales saying, “we are reporting higher revenue, notwithstanding lower production, due to our gas sales, which rose 28% year-on-year.”

“The improved financial results for the second half align with commencement of new gas contracts on 1 January 2019. This process is ongoing, with the new contracts negotiated in 2019 expected to benefit the FY20 financial result.”

At the time of publishing, Luke has no financial interest in any companies mentioned.

Free: Our Ultimate BNPL Sector Report

Afterpay, Zip Co, Sezzle… is BNPL the opportunity of a lifetime? Or is the sector a ticking time bomb? Our analyst’s 7,500-word report, Our Ultimate BNPL Sector Report, takes a deep dive into the BNPL sector and shines a spotlight on each of the major players in this booming market. You can get the full report right now (for FREE) by entering your email below, we’ll email it to you.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Free: Our Ultimate BNPL Sector Report

Afterpay, Zip Co, Sezzle… is BNPL the opportunity of a lifetime? Or is the sector a ticking time bomb? Our analyst’s 7,500-word report, Our Ultimate BNPL Sector Report, takes a deep dive into the BNPL sector and shines a spotlight on each of the major players in this booming market. You can get the full report right now (for FREE) by clicking the button below.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Keep reading:

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.