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- Cooper Energy (COE) upgrades its 2022 financial year guidance for underlying earnings before interest, tax, depreciation, amortisation and exploration expense (EBITDAX)
- Following increased processing rates at the Orbost Gas processing plant in Victoria, COE updated its guidance to the upper half of its previous range to between $70 and $78 million
- Processing at the plant increased by 36 per cent between April and May, with a peak rate of 66 terajoules per day
- At the same time, COE notes a “substantial” increase in actual and forecast wholesale spot prices for gas in Sydney and Victoria — beyond what it predicted in its last guidance update
- Company shares rose 6.3 per cent to trade at 29 cents at 2:05 pm AEST
Cooper Energy (COE) has upgraded its 2022 financial year guidance for underlying earnings before interest, tax, depreciation, amortisation and exploration expense (EBITDAX).
Following increased processing rates at the Orbost Gas processing plant in Victoria and higher-than-expected gas prices, COE has scaled underlying EBITDAX to the upper half of its previous range, to $70 to $78 million.
The company had previously forecast underlying EBITDAX of between $57 million and $68 million for the year.
The Orbost Gas processing plant (OGPP) is owned and operated by fellow ASX-lister APA Group (APA).
Back in August 2020, COE and APA entered into a transition agreement to work together towards Sole Gas Sales Agreements and the commission of the plant. This agreement has been extended to expire on June 30, 2022.
Last month, the average processing rate at the OGPP was 55.7 terajoules per day, marking a 36 per cent increase from April’s rate of 41 terajoules per day.
Rates were at or above 60 terajoules per day for 21 days in May, with a peak rate of 66 terajoules.
At the same time, Cooper Energy has experienced a substantial increase in actual and forecast wholesale spot prices for gas in Sydney and Victoria.
The company told investors today the prices are “beyond what had been expected” in its last guidance update.
However, Cooper’s guidance on capital expenditure for the 2022 financial year remains unchanged at between $19 and $21 million.
Company shares rose 6.3 per cent to trade at 29 cents at 2:05 pm AEST.
