Here’s why the Cooper Energy (ASX:COE) share price is slumping today

The Cooper Energy (ASX: COE) share price is sliding today after the company released its first-half results for FY21. Let’s take a look.
The post Here’s why the Cooper Energy (ASX:COE) share price is slumping today appeared first on The Motley Fool Australia. –

downward red arrow with business man sliding down it signifying falling asx share price

The Cooper Energy Ltd (ASX: COE) share price dipped around 4% this morning after the company released its FY21 half-year results.

Cooper Energy is an exploration and production company that generates revenue from gas supply to south-east Australia, and low-cost Cooper Basin oil production. The company has a portfolio 0f prospective acreage in Australia’s Cooper, Otway and Gippsland basins.

The Cooper Energy share price is currently trading at 30 cents a share. 

Why is the Cooper Energy share price sliding?

Cooper Energy recorded a statutory loss after tax of $23.1 million for the six months ended 31 December 2020. This compares to a $6.3 million profit after tax recorded in the first half of 2020.

The loss comes despite the company reporting record production and sales volumes for the period.

Cooper Energy advised that its FY21 half-year results were impacted by costs associated with the Orbost Gas Processing Plant (OGPP). 

Cooper’s cash and cash equivalents balance decreased by $16.3 million over the period, and total assets decreased by $15.7 million from approximately $1.03 billion to $1.01 billion.

On 31 December 2020, the company held cash and cash equivalents of $115.3 million and investments of $1.0 million.


The company plans to continue developing and operating a portfolio of gas assets to supply the south-east Australia domestic gas market.

Cooper Energy expects to record substantial growth in production, revenue and cash flow during the six months to 30 June 2021. This is due to increased production activities.

For the full year ending 30 June 2021, the business is guiding toward a total capital expenditure of $45 to $50 million.

Commenting on future production activities, Cooper Energy managing director David Maxwell said:

Current daily gas production rates of circa 60 TJ/day from our Gippsland and Otway Basin permits represent a roughly 300% increase on average daily rates this time last year.

With production at Orbost stabilising, we have guided towards full year FY21 production of 2.7–2.9 MMboe (FY20: 1.56 MMboe) and sales volumes of 2.9–3.1 MMboe (FY20: 1.54 MMboe).

With our acreage located for cost competitive supply to south-east customers and strong gas market fundamentals, Cooper Energy is ideally positioned to continue growing production, revenue and cash flow.

The Cooper Energy share price has tumbled 44% over the previous 12-month period.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s why the Cooper Energy (ASX:COE) share price is slumping today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!