Cooper Energy’s record result after gas plant buyback
One of SA’s top companies achieved record annual production, earnings and cash flow in FY23 following the ‘instrumental’ buyback of the Orbost Gas Processing Plant in Victoria.
The Orbost gas plant in Victoria where the majority of Cooper Energy's gas is processed. Photo: Supplied.
Gas producer Cooper Energy today reported record annual earnings of $109.3 million, up from $80.7 million in FY22, alongside record production and cash flow.
However, the company’s loss worsened to $68 million, while its revenue fell 4 per cent from $205 million to $197 million.
CEO and managing director Jane Norman remained upbeat despite the mounting loss and was optimistic following the successful $270 million buyback of a gas plant in Victoria initially announced last June.
“Finalising the Orbost acquisition and taking operatorship of the plant was instrumental for Cooper Energy in FY23,” she said.
“We now have the opportunity to instil our own values and expertise on site, to drive operational excellence and achieve the performance improvements and resulting incremental cashflow that unlocks future growth for the company.
“Importantly we now have the organisational structure in place supporting our transition to operator of both gas plants, following deployment of an engineering support team based in Melbourne, as well as a restructure of the executive management team.”
Production in the full year was up 7.8 per cent to 3.56 million barrels of oil and operating cash flow rose by 9 per cent to $62.8 million.
The firm – one of Adelaide’s top companies according to InDaily’s 2022 South Australian Business Index – says production is expected to be up 4 per cent on the record achieved in FY23.
“Looking ahead to FY24 and beyond, gas will continue to play a critical role in the energy transition, delivering firming power to support the integration of intermittent renewable energy,” Norman said.
“Gas demand remains strong in Southeast Australia, with the supply-demand gap expected to increase in the coming years.”
The Orbost Gas Processing Plant will be a key part of the company’s future success according Cooper Energy, which said the plant’s ‘improvement plan’ is being accelerated under the Adelaide firm’s control.
Orbost processes gas from an offshore field in the Gippsland Basin and connects to the Southeast Australian market via the Eastern Gas Pipeline.
“There are six major workstreams under the performance improvement plan,” Cooper Energy said.
“The work under the performance improvement plan is expected to occur throughout the remainder of calendar year 2023 and does not involve significant capital costs.”
