Shares in oil and gas group, Santos Ltd eased 17 cents to $16.46 yesterday after the company’s second quarter and half year production report revealed a 35% drop in revenue.
The latest quarterly report released to ASX yesterday showed production in the June quarter was 13.4 million barrels of oil equivalent (mmboe), down a modest 4% on the same period in 2009.
But after the fall in oil and gas prices in 2009, compared with a year ago, revenues for the period plunged 35%, to $484 million as the oil price fell 43%, to $75.66 per barrel. The weaker Australian dollar (compared with a year ago) offset the fall in world prices.
That was down from $749.3 million a year earlier.
"June quarter average portfolio gas price of $3.90 per gigajoule was 3% lower than the corresponding period primarily due to lower prices for oil price linked gas sales contracts," the company told the ASX.
Santos maintained its full-year production forecast of between 53 million and 56 million barrels of oil equivalent.
Production for the six months to June was 26.6 mmboe, down 4%, revenue fell 26% to $1.024 billion from $1384, with the oil price down 39% to $73.28 from $120.51.
The company said capital expenditure (including exploration and evaluation) guidance has increased to $1,600 million primarily due to the inclusion of early works on the PNG LNG Project.
That’s up $100 million on the original guidance.
The capital expenditure guidance of $1,600 million includes $180 million for conventional exploration which is consistent with prior guidance, the company said.
Another oil and gas explorer Petsec Energy said production fell 42% in three months to June 30 compared to the corresponding period last year.
The company’s shares hardly moved on the news, easing one cent to 27 cents.
In its June 2009 production report, Petsec said total production for the quarter was 1,974 million cubic feet of natural gas equivalent (MMcfe) compared to 3,421 MMcfe during the June 2008 quarter, a drop of 42%.
Production was down 8% on the 2,152 MMcfe in the March 2009 quarter.
Lower spot gas prices of between $US3.25 and $US4.45 in the June quarter saw an average gas equivalent sales price received of $US7.41 per MMcfe, 15% under price for the second quarter of 2008.
The average sales price was 7% lower than that realised in the March 2009 quarter.
Despite the fall, Petsec said it remained on track to meet its production target for the 2009 calendar year of seven billion cubic feet of natural gas equivalent (bcfe).
Lower production and the lower average gas equivalent sales price received in June was reflected in net revenue of $US14.6 million ($A18 million), down 51% on previous corresponding period and 15% lower than in the March 2009 quarter.
The company said its cash position improved in the June quarter to $US16.3 million ($A20.1 million), from $US11.7 million ($A17.2 million) at March 31.
Total outstanding debt has been cut $US6 million, with outstanding debt of $US38.4 million at June 30.
Net debt was $US22.1 million ($A27 million) at June 30, down from $US32.8 million ($A40.2 million) at 31 March 2009.
Shares in the National Australia Bank fell 5.2%, or $1.23 yesterday after trading resumed from the halt to allow the company to raise $2 billion from big shareholders.
The bank said it raised $2 billion in an institutional share placement which was "well oversubscribed".
NAB said in a statement to the ASX that it had placed 93,023,256 of new shares at $21.50, compared with the bank’s share price of $23.58 when the placement was announced.
"The placement was well oversubscribed and will be issued to a wide range of institutional and sophisticated investors who participated in the bookbuild," NAB said.
But many those who received the shares sold for a profit: more than 59 million shares, (or well over 60% of the 93 million issued in the placement) sold for gross proceeds of $1.299 billion. Hardly a vote of confidence in the bank.
The NAB said the capital raising will raise its Tier 1 capital ratio to 8.8% as at June 30 and it will now proceed to a retail component of its capital raising, seeking $750 million from investors.
And from the building supply sector, some good news.
Brisbane-based bathroom fixtures and homewares company GWA International sees a small improvement in earnings after trading conditions improved in the second half.
"Trading conditions for the second half have been stronger than expected with sales slightly higher than the first half, and approximately 12 per cent higher than the corresponding period last year," the company said in a trading update issued to the ASX yesterday .
The news lifted GWA shares 18 cents, or 3.2%, to $2.55 at the close yesterday.
The company said net profit including restructuring costs for the full year was expected to be about 5% higher than the financial year ended June 2008.
In 2007/08, GWA reported net profit of $45.89 million.
"Trading conditions for the second half have been stronger than expected with sales slightly higher than the first half, and approximately 12% higher than the corresponding period last year.
"Weak underlying dwelling demand has continued to be predominantly o
