Insights

Here’s why the Senex Energy (ASX:SXY) share price is 8% higher

The Senex Energy share price is leaping higher today, up 8% in early afternoon trading. We look at the company’s latest results.
The post Here’s why the Senex Energy (ASX:SXY) share price is 8% higher appeared first on The Motley Fool Australia. –

The Senex Energy Ltd (ASX: SXY) share price is on the move today, up 8% in early afternoon trading.

The share price gains follow the company’s results for the financial half-year ending 31 December (H1 FY21).

What did Senex Energy report?

In today’s ASX announcement, Senex Energy reported it has successfully delivered on its $400 million Surat Basin natural gas development projects. The company credits these projects with the significant increases in its gas production, revenue and earnings.

Senex revealed its natural gas production for the half-year increased by 271% over the prior corresponding period, to 8.0 PJ, or 1.4 million barrels of oil equivalent (mmboe). Its Surat Basin gas reserves increased by 27% to 780 PJ.

The company’s sales revenues increased by 239% to $45 million, while underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $25 million was up $26 million from H1 FY20.

Senex Energy held $33 million of net cash as at 31 December, an increase of $78 million from the corresponding half.

Management response

Commenting on the results, Senex CEO Ian Davies said:

Production in the Surat Basin now exceeds 50 TJ/day, or more than 18 PJ/year and equivalent to around 10 per cent of Queensland’s natural gas demand, with natural gas production in the half of 8.0 PJ exceeding total FY20 production, demonstrating the increase in gas field production performance…

Also announced in the half, the sale of our Cooper Basin business to Beach Energy for $87.5 million will provide additional strength to our balance sheet and bolster the cash flow resilience of our natural gas portfolio.

Davies said that with the past half year’s strong performance, the board decided to accelerate dividend distributions to Senex shareholders.

Senex will pay an initial 1 cent per share annual dividend (paid half-yearly) along with an 0.5 cent special dividend after the Cooper Basin sale completes. That represents an annualised dividend yield of 4.3%, 97% franked. Senex said it aimed for a 20–30% dividend payout of its free cash over the long-term.

Senex Energy share price snapshot

Having tumbled more than 62% during the COVID-driven market rout last year, which hit ASX energy shares particularly hard, Senex shares are back in the green for the year, up 4% in 12 months. By comparison, the All Ordinaries Index (ASX: XAO) is flat over the past year.

So far in 2021, the Senex Energy share price is up 11%.

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 Bernd Struben 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 Senex Energy (ASX:SXY) share price is 8% higher 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!