Join our daily newsletter At The Bell to receive exclusive market insights
- Australis Oil & Gas (ATS) sees “another robust” quarter on the back of strong oil prices
- Revenue of US$7.3 million (A$10.45 million) for the second quarter increased four per cent compared to the first quarter
- Sale volumes for the second quarter were down 10 per cent compared to the first quarter of 2022 to 82,900 barrels of oil, however, net inventory increased by 3000 barrels
- The company’s cash balance at the end of the period was US$8.7 million
- ATS shares are down 4.55 per cent to trade at 4.2 cents each just before market close
Strong oil prices and improved hedging position has generated “another robust” result for Australis Oil & Gas (ATS).
Revenue of US$7.3 million (A$10.45 million) for the second quarter increased four per cent compared to the first quarter due to the oil price improvement.
Sale volumes for the second quarter were down 10 per cent compared to the first quarter of 2022 to 82,900 barrels of oil, however, net inventory increased by 3000 barrels. The company said driver and truck availability impacted its crude oil purchaser and off taker.
EBITDA was recorded at US$1 million and whilst its less than the first quarter due to non-cash changes, for the first half of 2022 EBITDA was US$3.2 million, which is higher than the first half 2021 of US$1.1 million, reflecting the strong improvement in oil prices.
During the period, the oil and gas company managed to wipe US$1 million off its total debt with Macquarie facility, which now currently stands at US$14 million.
Australis said the oil price hedge book weighting continues to transition from swaps to cap and collar contracts, therefore, increasing Australia’s exposure to higher oil prices.
The company’s cash balance at the end of the period was US$8.7 million.
Over the period, the company continued to maintain its control and exposure to the TMS Core area, in the US, with targeted leasing activity.
At the end of June, Australis held around 83,500 net acres in the TMS Core, of which 38,300 net acres are held by production.
On the market, ATS shares were down 4.55 per cent to trade at 4.2 cents each just before market close.
