New Zealand Oil & Gas half-year results

New Zealand Oil & Gas (ASX: $NZO) has announced its half-year results, with a significant surge in net profit after tax (NPAT) by 112% to NZ$7.0 million. The company also reported a 9% increase in production, an 11% rise in revenue to NZ$51.3 million, and a 44% boost in operating cashflow to NZ$20.9 million. Cash reserves climbed to NZ$46.4 million, marking a 27% increase from June 2023. Additionally, a special dividend of AUD 3 cents per share has been declared, and the company recently acquired a 25% ownership increase in the Mereenie field.

Executive commentary on company's performance

This half year is a watershed for New Zealand Oil & Gas, as the strategy our Board announced in 2020 begins to pay dividends literally. In line with our Board's strategy, we have been investing in quality producing assets with development upside, focused on markets we are familiar with, priced appropriately and within our financial capacity. These strategic moves are paying off with strong cashflows and increased production, reserves, and profitability. NZO continues its ongoing investment program with multiple wells to drill, compression projects, and of course our recently announced purchase of a further 25% of the Mereenie field in the Amadeus Basin. Our careful cash management means that we can pass the Cue dividend on to our shareholders. It is a pleasure to see a return on this investment, to reward shareholders with a distribution, and we will continue to monitor our cash needs in line with our newly released dividend policy as those investment plans unfold.

Summary of half-year results and outlook

New Zealand Oil & Gas has demonstrated a remarkable performance in its half-year results, with a substantial increase in net profit after tax, production, revenue, and operating cashflow. The company's strategic investments in quality producing assets have yielded strong cashflows and enhanced production, reserves, and profitability. The acquisition of a 25% ownership increase in the Mereenie field further underscores the company's commitment to its growth strategy. With plans for multiple wells to drill, compression projects, and the acquisition of additional assets, NZO is poised for continued success. The company's careful cash management has enabled the declaration of a special dividend, reflecting its dedication to rewarding shareholders. The outlook appears positive as NZO continues to monitor its cash needs in line with its newly released dividend policy, aligning with its investment plans.