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Business Description: Horizon Oil Limited (HZN) is an oil and gas exploration, development and production company with projects located in New Zealand, Papua New Guinea and China. The company focuses on three main areas, being the producing Maari field offshore New Zealand, and assets under development in Papua New Guinea and China.
Strategy Analysis: HZN have operations in China, PNG, NZ and Thailand in accordance with a focus on Southeast Asia where there is a strong demand for oil and gas, a mature operating environment and limited competition from big companies. HZN's emphasis is on bringing its existing discovered reserves and resources into production with minimal exposure to geological risk. It uses current cashflows from the Maari field to fund its capital program and selects exploration targets with a modest risk and reward profile. HZN also seeks to form joint ventures with partners who are qualified to operate projects. This approach allows management to add value by contributing its experience to these JV's, without need to manage day-to-day operations.
Horizon Oil reported a net loss of US$6.78m for the half-year ended 31 December 2012, resulting from gross profit from operations of US$11.6m offset by depreciation and amortisation of $2.1m, income and royalty tax of $6.1m, financing costs of US$2.8m and an unfavourable movement in the mark-to-market valuation of the convertible bonds of US$4.7m substantially caused by an increase in the company's share price. Revenues from ordinary activities were US$18.26m, down 35% from last year. Basic and Diluted EPS was (0.6) US cents compared to 0.75 US cents last year. Net operating cash flow was US$5.28m compared to US$3.9m last year. No dividend was declared.
The Age 18/05/2013 |
As Australia's major retailers increase their online sales channels, pouring millions into their websites, they could face new competition from China's booming e-commerce industry.
The Age 18/05/2013 |
Most of those who take a political approach to the budget assume that if it's in deficit, the way you get it back to surplus is to cut government spending or, if you're a really bad person, increase taxes. They forget it's the budget itself that's supposed to do the heavy lifting.
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