Horizon Oil Ltd Stock Market Press Releases and Company Profile
2016 Financial Results Presentation
2016 Financial Results Presentation

Sydney, Aug 30, 2016 AEST (ABN Newswire) - Horizon Oil Limited (googlechartASX:HZN) (googlechartHZNFF:OTCMKTS) are pleased to provide the Company's Financial Results Presentation for August 2016.

Financial year highlights

Performance:

- 3% increase in production from prior year to 1,354,982 barrels, 13% increase in sales to 1,376,069 barrels at an average realised price (inclusive of hedging) of US$55.19 per barrel, generating revenue of US$76.0 million.

Cash:

- US$16.1 million cash on hand at 30 June 2016. Net cash from operating activities of US$44.2 million was offset by debt reduction, development and exploration drilling, and growth projects.

Production:

- Combined production rate of Maari and Beibu Gulf fields ~3,900 bopd net to Horizon Oil at year end.

- Cumulative gross oil production since commencement, as at 30 June 2016: Maari field 31.6 million barrels; Beibu Gulf fields 12.3 million barrels.

Profit & Loss:

- An underlying profit of US$3.0 million, excluding the impact of US$147.5 million non-cash impairment write-downs.

- EBITDAX of US$54.0 million.

Capex:

- Capex spending was reduced by ~68% from prior year to US$24.5 million, US$17.5 million of the spending was related to finalisation of development work in New Zealand and an appraisal/development well in China.

Debt:

- Horizon Oil and its major shareholder, IMC Investments Limited, executed a subordinated secured non-amortising debt facility of US$50 million to refinance the remaining US$58.8 million convertible bonds, subject to shareholder approval.

- Early redemption of US$21.2 million of 5.5% convertible bonds in the year, realising a US$1.2 million gain.

Outlook for the next 12 months

Corporate Outlook

- Barring unforeseen events, operating cashflows expected to increase as a result of additional revenues earned from China production entitlement through cost recovery, combined with effect of hedge position

- Continued focus on reduction of overall gearing levels, following redemption of remaining US$58.8 million Convertible Bonds in September 2016 using proceeds of IMC subordinated secured non-amortising debt facility of US$50 million

- Maintenance of low capex profile and G&A over the course of FY17

Maari/Manaia, offshore New Zealand

- Further optimisation of oil production through workover program following the successful completion of the Maari Growth Projects

- Finalise insurance recoveries in relation to facility repairs and equipment upgrades associated with the FPSO Raroa's mooring system

Block 22/12, offshore China

- Horizon Oil's entitlement to cost recovery oil at 30 June 2016 was US$114.0 million, and our production entitlement has increased from 26.95% to over 35% of production as historical exploration and development costs are preferentially recovered

- Progress Beibu Gulf fields Phase II development plan for the WZ 12-8E with integration of WZ 12-10-1 and WZ 12-3-1 discoveries (11.1 mmbo gross, 3.0 mmbo net), with aim for submission of Overall Development Plan late CY16 / early 2017

PDL 10 (Stanley), PRL 21 (Elevala/Tingu/Ketu) and onshore Papua New Guinea

- Progress arrangements for sales of Stanley gas to regional PNG industrial consumers, while refining project costs

- Progress feasibility study for a Western Province-based greenfield mid-scale LNG project, while monitoring other gas commercialisation opportunities in the region.

To view full Results Presentation, please visit:
http://abnnewswire.net/lnk/WMUI7RG6


About Horizon Oil Ltd

Horizon Oil Ltd ASX HZNHorizon Oil Limited (ASX:HZN) (OTCMKTS:HZNFF) is an ASX-listed petroleum exploration and production company, with a geographic focus on the Asia-Pacific region. The company currently produces over 4,000 barrels of oil per day net from its fields in New Zealand and China, which generated over US$80 million in net operating income after operating expense for the year ended 30 June 2015.  Further development candidates remain in and around these producing fields.

Horizon Oil maintains prudent policies of oil price hedging and loss of production insurance to ensure that sufficient cash flow is generated to meet the funding requirements of its growth program.

The company holds a large undeveloped reserves and contingent resource position in Western Province, onshore Papua New Guinea.  These are liquids-rich gas resources and reflect Horizon Oil’s strategy to focus on Asian gas for growth.  Gas constitute about 2/3 of the reserves and resource base.  Commercialisation pathways for the gas are emerging.

Although Horizon Oil anticipates continuing strong cash generation over the medium term from its existing producing fields, these developed reserves account for only 10% of total reserves and resource base.  The focus going forward will be on new field development, funded largely from existing production cash flow.

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Contact

Mr Michael Sheridan
Chief Financial Officer / Company Secretary
Phone: +61-2-9332-5000
Email: exploration@horizonoil.com.au
www.horizonoil.com.au



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