New Zealand Oil & Gas' profit for the year ended June fell by 45%, but the company is nonetheless still in a strong financial position.
NZOG blamed a year of unprecedented international turmoil for the fall in profit.
The company yesterday reported earnings before interest, tax, depreciation and amortisation (ebitda) of $88.9 million for the year, down 45% on the $161. 3 million reported in the previous corresponding period (pcp).
Revenue fell to $138.7 million from the $222.8 million in the pcp.
The profit was the second best in the company's history.
During the year, the company invested about $120 million in total in its existing asset portfolio and in new investment opportunities.
The company had a cash balance at June 30 of $174.8 million and no debt.
A fully-imputed dividend of 5c a share will be paid.
NZOG chief executive David Salisbury said that in the past year, the company had successfully continued on a growth path, building on the solid base provided by the existing asset portfolio.
"While many other companies were buffeted by the global financial crisis, our strong balance sheet has allowed NZOG management to actively pursue a growth strategy."
The company was targeting opportunities that were robust and comfortably fit within its financial strategy.
The announcement yesterday of NZOG's participation in the drilling of the Albacore well was the most recent outcome, he said.
"We continue to identify a range of potential investments and we are working hard to secure the best of them."
In the existing portfolio, NZOG would have three new revenue streams from Kupe - gas, LPG and light oil - to supplement the oil revenue from Tui.
It was from that solid base that the company was able to pursue growth opportunities and to improve shareholder value, Mr Salisbury said.
ABN Amro Craigs broker Peter McIntyre said NZOG paid $31.1 million in corporate tax and $23.8 million in royalties.
"Its significance to NZ Incorporated cannot be underestimated.
The positive news from Kupe is encouraging and will provide a new revenue stream for NZOG.
Gas production is expected in the fourth quarter this year and the lifespan is expected to be between 10 and 15 years.
"The final dividend of 5cps completes a good year."
