- Cooper Energy (COE) Updates Fiscal 2022 Guidance for Underlying Earnings Before Interest, Taxes, Depreciation, Amortization and Exploration Expenses (EBITDAX)
- Following increased treatment rates at Orbost Gas’ Victoria treatment plant, COE updated its forecast to the upper half of its previous range, between $70 million and $78 million.
- Processing at the plant increased by 36% between April and May, with a peak rate of 66 terajoules per day
- At the same time, the WCC notes a ‘substantial’ increase in actual and forecast wholesale gas spot prices in Sydney and Victoria – beyond what it forecast in its last forecast update
- Shares of the company rose 6.3% to trade at 29 cents at 2:05 p.m. AEST
Cooper Energy (COE) has updated its guidance for fiscal 2022 for underlying earnings before interest, tax, depreciation, amortization and exploration expense (EBITDAX).
Following increased processing rates at the Orbost Gas processing plant in Victoria and higher than expected gas prices, COE reduced underlying EBITDAX to the upper half of its previous range, at $70-78 million.
The company previously forecast underlying EBITDAX of between $57 million and $68 million for the year.
The Orbost Gas (OGPP) processing plant is owned and operated by fellow ASX-lister APA Group (APA).
In August 2020, COE and APA entered into a transition agreement to work together towards exclusive gas sales agreements and commissioning of the plant. This agreement has been extended to expire on June 30, 2022.
Last month, the average processing rate at OGPP was 55.7 terajoules per day, representing a 36% increase from April’s rate of 41 terajoules per day.
Levels were at or above 60 terajoules per day for 21 days in May, with a peak level of 66 terajoules.
At the same time, Cooper Energy experienced a substantial increase in actual and forecast wholesale gas spot prices in Sydney and Victoria.
The company told investors today that prices were “beyond what had been expected” in its latest guidance update.
However, Cooper’s capital spending forecast for fiscal year 2022 remains unchanged at $19 million to $21 million.
Shares of the company rose 6.3% to trade at 29 cents at 2:05 p.m. AEST.