Senex delivers strong full-year production and earnings growth, increases full-year dividend
FY21 Full Year Results, Outlook Release and Presentation
Brisbane, Aug 19, 2021 AEST (ABN Newswire) - Senex Energy Limited (
ASX:SXY) (UDB:FRA) (VPTOF:OTCMKTS) today reported full-year FY21 results, delivering a strong increase in production, sales revenue and EBITDA. Increased free cashflow generation supports a full-year dividend of 5 cents per share, taking total FY21 dividends to 13 cents per share.
FY21 performance summary
- Natural gas production of 17.3 PJ (3.0 mmboe), up 140%; sales revenue of $109.6 million, up 103%
- Underlying EBITDA of $54.5 million, up 178% and at the mid-point of guidance
- Underlying NPAT returned to a profit of $5.4 million, up $11.7 million from a prior-year loss of $6.3 million
- Statutory NPAT of $65.7 million after tax-benefit recognition
- Net cash of $26 million, up $71 million
- Surat Basin 1P gas reserves of 261 PJ, up 24%; 2P gas reserves of 767 PJ, up 4%
- Free cashflow of $25.1 million, with final dividend declared of 5 cents per share, taking total FY21 dividends to 13 cents per share
Commenting on the FY21 results, Senex Managing Director and CEO Ian Davies said Senex's continued outperformance had strengthened its foundations as a low-cost, low-carbon, high-return business with a long-life asset base and high growth trajectory.
"The 2021 financial year was pivotal in the transformation of Senex. We exited our legacy Cooper Basin oil business, supporting our strong balance sheet, and cemented our position as a leading new natural gas supplier committed to Australia's low-carbon energy future.
"We achieved consistent and considerable progress throughout the year. Our production, reserves, earnings, balance sheet, growth outlook and dividend - including excellent safety performance with not a single recordable injury during a very turbulent year - all demonstrated the strength and resilience of our strategy.
"Having safely and seamlessly delivered our initial $400 million Surat Basin natural gas development projects in 2020, we more than doubled production and close to tripled EBITDA in 2021.
"We have strengthened our balance sheet, finished FY21 with more than $100 million in cash reserves, and we are generating significant free cashflow to pursue our end-FY25 production target of 60 PJe/year.
"With the 50 per cent expansion of Atlas to 18 PJ/year announced this week, Senex will deliver material production growth in the year ahead for a tightening east coast gas market.
"In doing so, we continue to support the economy and jobs, and supply affordable and reliable natural gas for industry as Australia transitions to a lower carbon future", Mr Davies said.
Senex natural gas portfolio and organic growth plans
The Atlas expansion project investment decision announced this week will take the production capacity of Senex's portfolio to 27 PJ/year, realising annual EBITDA of more than $130 million/year at prevailing prices.
Senex holds Surat Basin 2P gas reserves of 767 PJ at Atlas and Roma North. This large reserve base supports a master development plan to continue expanding portfolio production up to 54 PJ/year from these areas, with a 2P remaining reserve life of 14 years.
Senex has substantially contracted its existing gas supply for calendar years 2021 and 2022, with material uncontracted supply from calendar year 2023, coinciding with a materially tightening southern gas market and increasingly supportive pricing.5
The progression of Atlas to 18 PJ/year is the next phase of growth to drive Senex towards its stated annual production target of more than 60 PJe/year by the end of FY25.
FY22 guidance
Senex entered into a high level of hedging for FY22 in anticipation of the expansion projects at Atlas Stage 2 and Roma North Stages 1b & 2. Approximately 85% of sales volumes for FY22 are to be sold at fixed prices, reducing to around 30% in FY23. Senex expects an average realised price of approximately $7.50/GJ in FY22.
Dividends
The Senex Board has determined to pay Senex shareholders an ordinary dividend of $0.05 per share (unfranked) (Final Dividend). The Final Dividend will be paid on 24 September 2021 (Dividend Payment Date), with a record date of 1 September 2021 (the Dividend Record Date). Further details are provided in the ASX Appendix 3A.1 (notification of dividend).
The Final Dividend, coupled with the interim dividend of $0.04 per share and the special dividend of $0.04 per share (re-based for share consolidation) takes total dividend payments for FY21 to $0.13 per share. Total ordinary dividend payments in respect of FY21 of $0.09 per share reflect a dividend yield of 2.8%7.
The Company has implemented a Dividend Reinvestment Plan (DRP), allowing eligible shareholders to elect to invest dividends in ordinary shares that rank equally with Senex ordinary shares. The "DRP price for shares" under the DRP for the Final Dividend will be calculated as the average of the daily volume weighted average price of Senex ordinary shares on each of the five consecutive trading days after the Dividend Record Date of 1 September 2021, being 2 September 2021 to 8 September 2021. The last date for receipt of applications to participate in, or to cease or vary participation in, the DRP is by 5pm (AEST) on 2 September 2021. The Directors have determined that a discount of 4 per cent shall apply to the DRP price for shares for the Final Dividend.
Shareholders who have not elected to participate in the DRP will receive their dividend in the ordinary way (cash). Cash dividends will only be paid by direct credit, and not by cheque.
RESULTS WEBCAST
To view the pre-recorded video presentation of Senex's FY21 results, please visit:
https://www.senexenergy.com.au/fy21-results/
Senex Managing Director and CEO Ian Davies and Chief Financial Officer Mark McCabe will hold a live question and answer webcast for analysts and investors today:
Time: 11.00am AEST
Date: Thursday, 19 August 2021
The webcast can be accessed via the Senex company page on the Open Briefing website:
https://webcast.openbriefing.com/7737/
A recording of the webcast will be available later that day at:
https://www.openbriefing.com/OB/7737
To view full presentation, please visit:
https://abnnewswire.net/lnk/5S138EEU
To view the Financial Report, please visit:
https://media.abnnewswire.net/media/en/docs/ASX-SXY-2A1316491.pdf
About Senex Energy Limited
Senex Energy Ltd (ASX:SXY) (OTCMKTS:VPTOF) (FRA:UDB) is an established, rapidly growing and low-carbon Australian natural gas producer. Our long life Surat Basin assets contribute around 20 petajoules of natural gas per year into the east coast gas market to support our customers. Senex is focused on sustainably delivering balance sheet strength, resilient cashflows, growing dividends to support Australia's energy needs as it transitions to a lower carbon future.
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