March quarterly highlights
Oil oversupply and lower energy demand following COVID-19 has generated sudden and
unprecedented shocks to the energy sector
Lower quarterly revenues (18%) reflect these very depressed market conditions, but
demonstrate the value of our long-term, firm gas supply contracts.
Central’s business is much more financially resilient and well-placed to ride-out market cycles
• $26.1 million cash balance, one of Central’s highest ever quarter ending cash balances
• Loan maturity extended to September 2021 and low debt service requirements
• Corporate costs reduced and discretionary expenditures paused
Focus now on returning to full growth mode ASAP
CENTRAL PETROLEUM LIMITED 2
March quarterly highlights
March quarter sales volume
Historically weak spot gas market conditions
for uncontracted production
Volumes essentially reflect our portfolio of
fixed-price, long-term gas supply agreements
Replaced 100% interest in 20 TJ/d firm
contract with new 20 TJ/d firm/as-available
contract at 50% interest from 1 January
No longer over-lifting gas at Mereenie or
purchasing surplus gas from our partner
Returned 0.45 PJ of previously over-lifted
gas (will continue at 0.18 PJ per quarter)
CENTRAL PETROLEUM LIMITED 3
Our strategy to build a solid financial foundation, backed by fixed-price long-term gas supply contracts,
enables us to weather an extended period of low oil and gas prices.
Sales volume: 2.7 PJE, down 27% on last quarter:
March quarter revenues
Revenue: $15.3M, down 17.6% on last quarter
Sales volume reflects our portfolio of fixed-price, long-term gas supply agreements
Oil accounted for just 8.5% of total revenues for the quarter, with realised oil prices down 29%
Average unit sales price of $5.76/GJE across portfolio, up 15% from last quarter
- Low spot sales volume during quarter (80 TJ)
- New gas long-term, fixed price contract commenced 1 January at favourable price
- Strong portfolio of fixed price, long term gas sale agreements
Year to date sales revenues of $51 million are 31% higher than the corresponding period in 2019,
demonstrating our new financial resilience following execution of the Gas Acceleration Programme
and commencement of the Northern Gas Pipeline in January 2019.
CENTRAL PETROLEUM LIMITED 4
FY20 FY20 FY20 FY19
Product Unit Q3 Q2 YTD YTD
Gas $’000 13,987 16,487 45,671 31,817
Crude and Condensate $’000 1,297 2,059 5,326 6,985
Total Sales Revenue $’000 15,284 18,546 50,997 38,802
Revenue per unit $/GJE $5.76 $5.03 $5.20 $5.68
Strong FY2020 financial performance
Extended finance facility:
Matures September 2021
Only $6 million of scheduled repayments
in next 12 months
Facility interest costs very efficient
(5.87% pa at 31 March)
Other liabilities continue to be unwound:
Pre-sold gas: 432 TJ of gas delivered in
March Quarter. Balance will be repaid
over the next two years
Overlift gas: 449 TJ of gas returned in
March quarter. Target to reduce this by
180 TJ per quarter through 2022
We responded quickly to deteriorating market conditions by reducing costs and deferring
Reduction of head office positions by 10% (20% reduction including contract staff)
Deferred investment in new production wells as additional production capacity is not required
to meet current firm gas supply contracts
Paused Range pilot programme and pre Financial Investment Decision (FID) activities
CENTRAL PETROLEUM LIMITED (ASX:CTP) 7
We have preserved the ability to quickly resume growth activities when business conditions permit
Cash balance of $26.1 million at 31 March
Positive March quarter run rate cash flow of $0.3 million after debt service and excluding oneoffs
Limited direct exposure to oil prices - only 10% of YTD revenues are from oil sales
Long term, fixed price gas contracts – provides downside protection from take-or-pay gas
sales of 8.5 PJ/pa worth $48 million pa
Modest debt repayments required in the next 12 months
Discretionary capital expenditure can be adjusted to reflect prevailing market conditions
There is no material mandatory capital expenditure required to maintain plant capacity in the
There are no material exploration commitments that must be funded over the next 18 months.
courtesy of Bell Direct
( DYOR )
i do not hold this share
let's see what pilots has to say about this
i left out the hopes and dreams section (OOPS exploration programme )
some of that MIGHT happen but history doesn't inspire hope
considering the trials and tribulations of CTP since 2012 when i joined T$ , ..i side with pilots
but i barely know the difference between motor oil and cooking oil ( especially now in the era of synthetics )
i think Buddy134 and Rawali were hoping for better
the statement implies they are surviving on forward contracts and with WTI still below $US 30 a barrel that buffer is liable to run out soon surely it would be cheaper to break contracts and find a cheaper supplier ESPECIALLY since there is no hurry at CTP to build reserves or redundancy of wells
watch the futures expiry date i believe it is this week , will oil fall below $US 10 again ???
you still have the massive demand and storage problems
i suspect the US is pumping back big time but probably in the conventional style depleted fields
over-lifting GAS certainly confused me especially at current gas prices
maybe they are trying to completely deplete that resource
""(• $26.1 million cash balance, one of Central’s highest ever quarter ending cash balances)""
But, but, ................................... did anyone took any notice or even bothered to find out as the where the cash came from.??
The revenues are down, the sales volumes are down and the cash goes up..........................mmmhhhh.!!
I rest my case.
""(i think Buddy134 and Rawali were hoping for better)""
No, I wasn't. Rest assured of that and rest assured that I was expecting it.
Nothing surprise me with this lot any more.
And, mark my words. The time will come that they will have to start supplying what they already sold and being paid for.
Going back, I find this to be very interesting indeed.
Read it properly and then come back to me:
""(Strengthened balance sheet
The group received net operating cash flows of $8.3 million and continued making accelerated
debt repayments during the half year, with $9.5 million of principal repaid during the period
and a total of $21.5 million repaid in the full calendar year.
Subsequent to the balance date, the Group’s loan facility was extended for a further 12 months
to September 2021, significantly improving the net current asset position relative to that
reported in the half year report as illustrated below:
Consolidated Balance Sheet Statutory balance sheet
as at 31 Dec 2019
Impact of loan extension
10 February 2020
$ $ $
Current assets 29,420,586 - 29,420,586
Current liabilities (93,086,714) 67,700,963 (25,385,751)
Net current assets / (liabilities) (63,666,128) 67,700,963 4,034,835
The net working capital position also includes $10.9 million of deferred revenue liabilities
associated with the market value of pre-sold gas and customer take-or-pay balances which
do not represent a cash liability to the group as they will either be settled by the physical
delivery of gas or forfeited by the buyer under the contract.
There will be no settlement in cash and no associated cash outflow other than marginal production costs.
The net asset position has improved further subsequent to year end, with $7.7 million received in January as final
settlement for the proceeds from the farm-out of a 50% interest in the Range Gas Project."")
""(so buddy134 as an experienced farmer , how would your friendly banker react if you presented a balance sheet like that if seeking bridging finance
i know these are crazy financial times but ....)""
Mate, I wouldn't even have wasted the time to walk to the Bank to see him as I knew what he was going to tell me. While possible even avoiding the embarrassment of having been laughed in the face.
Now, think again and answer me this. Adds 04 can do it too seeing that he said that it wasn't too bad.
Why do you believe that they weren't able to reorganise finances with any other bank or financial Institutions/Entities even after they told us on countless occasions that they were in the process of doing so, and then had to do a "U" turn back and having to go back cap in hands to MQG.??
IMO Only the gullibles would have believed that it was good and solid.
One look at that would be sufficient for anyone with a bit of knowledge and understanding of figures to ring the warning bells and possibly engaging the reverse gear in the Ferrari and go like hell at full speed.
Dyor my friends.
It beggars beliefs that MQG is still holding out and not ask to be repaid in full. Yet again they might be happy to collect good interests for the time being while waiting for the right time to call CTP to task.
And don't forget that they are still owed for the gas, (or part thereof if CTP managed to supply them of some), that they paid up front a long time ago while under the sharp eyes of the Messiah.
And don't forget the gas which has been prepaid and went straight into our Bank Account as well, under the agreements of "TAKE OR PAY"...
How much was that.??
considering the reports in the recent past say since 2014 they did have move detail ( just not details that i found remotely attractive )
but unless the price of oil ( and gas ) improves drastically CTP had better hope those on 'take or pay contracts don't decide to break contracts because surely there would be better deals out there currently ... IPL found one
regarding the Ferrari .. i would never abuse the gearbox like that , i would handbrake turn and THEN drive
"Why do you believe that they weren't able to reorganise finances with any other bank or financial Institutions/Entities even after they told us on countless occasions that they were in the process of doing so, and then had to do a "U" turn back and having to go back cap in hands to MQG.??"
I would think MB offered CTP an offer they couldn't refuse.
Who really knows the inner workings and intricacies of CTP, STO and MB ?
Bloody criminal, IMO, that CTP exploration and investor enhancement has not happened for benefit of owners of the company.
simple MB only extended a less than 2 year loan , BUT required an accelerated capital repayment
say i had a house mortgage ( interest only would be more usual in this case ) you would roll-over that loan but incur some fees and charges and carry on payments as usual
MB is essentially saying you can only borrow so much because your collateral has shrunk in value ( even though you owe more than the new loan )
IF it was a P&I mortgage the bank is essentially saying your collateral has SHRUNK despite your recent payments AND we are not currently willing to extend the length of the loan to adjust .. say a home buyer would be pushed into a 30 year loan instead of the desired 25 year loan
.. but maybe banking has changed since 1975 when i took out my mortgage
i would be surprised to hear CTP was more than a commercial loan plus a pipeline JV
MB leases out fleets of aircraft as just one income stream
""(I would think MB offered CTP an offer they couldn't refuse.)"
What offer would McBank would give to CTP when CTP are the ones owing the money to them.?
If CTP were able to raise finance elsewhere they would have done so like lightning but they didn't.
And don't forget that they were the ones telling us on countless occasions that they were trying to refinance the loans, not the other way around.
And they never told us as to how they managed to get those refinancing deals.