The Cooper Energy Ltd (ASX: COE) share price dipped around 4% this morning after the company released its FY21 half-year results.
Cooper Energy is an exploration and production company that generates revenue from gas supply to south-east Australia, and low-cost Cooper Basin oil production. The company has a portfolio 0f prospective acreage in Australia's Cooper, Otway and Gippsland basins.
The Cooper Energy share price is currently trading at 30 cents a share.
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Why is the Cooper Energy share price sliding?
Cooper Energy recorded a statutory loss after tax of $23.1 million for the six months ended 31 December 2020. This compares to a $6.3 million profit after tax recorded in the first half of 2020.
The loss comes despite the company reporting record production and sales volumes for the period.
Cooper Energy advised that its FY21 half-year results were impacted by costs associated with the Orbost Gas Processing Plant (OGPP).
Cooper's cash and cash equivalents balance decreased by $16.3 million over the period, and total assets decreased by $15.7 million from approximately $1.03 billion to $1.01 billion.
On 31 December 2020, the company held cash and cash equivalents of $115.3 million and investments of $1.0 million.
Outlook
The company plans to continue developing and operating a portfolio of gas assets to supply the south-east Australia domestic gas market.
Cooper Energy expects to record substantial growth in production, revenue and cash flow during the six months to 30 June 2021. This is due to increased production activities.
For the full year ending 30 June 2021, the business is guiding toward a total capital expenditure of $45 to $50 million.
Commenting on future production activities, Cooper Energy managing director David Maxwell said:
Current daily gas production rates of circa 60 TJ/day from our Gippsland and Otway Basin permits represent a roughly 300% increase on average daily rates this time last year.
With production at Orbost stabilising, we have guided towards full year FY21 production of 2.7–2.9 MMboe (FY20: 1.56 MMboe) and sales volumes of 2.9–3.1 MMboe (FY20: 1.54 MMboe).
With our acreage located for cost competitive supply to south-east customers and strong gas market fundamentals, Cooper Energy is ideally positioned to continue growing production, revenue and cash flow.
The Cooper Energy share price has tumbled 44% over the previous 12-month period.
