Blue Skies: Cue Energy Surges +40% Intraday with Stellar H1 Results & Special Dividend
- StockHound
- February 29, 2024
- 9:50 am
- Mining News
Key Takeaway: Cue Energy Limited (ASX: CUE) announces stellar financial results for H1 FY2024, highlighted by a 22% surge in revenue to $29.3 million and a commendable 34% jump in net profit after tax, amounting to $9.1 million. Bolstered by its strong cash position and cash flow, the company delights shareholders with a 2 cent per share special dividend (~$14 million).
Cue Energy Resources Limited (ASX: CUE) has set the pace for the oil and gas sector with an impressive 22% leap in revenue, reaching $29.3 million for the half-year ending December 31, 2023. This financial uptick is accompanied by an impressive 34% surge in Net Profit After Tax to $9.1 million, signalling not just growth but robust profitability.
Cue’s decision to declare a special dividend of 2 cents per share is a testament to its solid cash flow and the Board’s confidence in the company’s operational and financial strategy going forward, with shares trading up a strong +41.79% intraday at time of writing.
Cue Energy CEO Matthew Boyall shared his enthusiasm, stating, “I am delighted to announce a special dividend return of $14 million to Cue shareholders following further strong production performance in H1 FY24 which has delivered $29.3 million in revenue. We are in a strong financial position, with $23.2 million cash as at 31 December 2023, generating positive cashflow and expectations of continued strong performance from our assets across the Asia-Pacific region.
“The introduction of a dividend policy indicates the Board’s ongoing support of returning a portion of future cashflow to shareholders.” “We are pleased to reward our loyal and supportive shareholders with this dividend and will be working hard to maintain our strong financial performance.”
Drilling further into the numbers, Cue’s performance is underpinned by its diversified asset portfolio. The Indonesian assets, particularly the Mahato PSC, emerged as significant contributors, generating $16.4 million in revenue. The Maari field in New Zealand and Cue’s onshore Australian assets also saw considerable revenue hikes, bolstering the company’s financials.
The balance sheet further reflects Cue’s operational success, with a cash balance of $23.2 million by the end of December 2023, marking an increase from $15.2 million as of June 30, 2023. The company’s debt-free status, following the repayment of $4 million to New Zealand Oil & Gas, positions it advantageously for future investments and shareholder returns.
Looking ahead, Cue is not resting on its laurels. Plans for drilling two new development wells in the Mereenie field, alongside ongoing development activities in the PB field of the Mahato PSC, underscore Cue’s commitment to expanding its production base. The company also eyes further development drilling potential in the field, coupled with the MR6a workover in the Maari field, aimed at reinstating oil production.
In light of these developments and a strong macro environment buoyed by robust oil prices, Cue’s financial outlook remains promising. The special dividend, supported by Cue’s positive cash flow generation and strong cash reserves, not only rewards shareholders but also signals the company’s robust financial health and commitment to delivering shareholder value.
The introduction of a dividend policy further illustrates Cue’s confidence in its ongoing financial performance and its strategy of returning a portion of future cash flow to shareholders. As Cue navigates the complexities of the oil and gas sector with strategic investments and a focus on sustainability and efficiency, its journey will be followed closely by the market, especially following the shares +40% intraday performance today attracting more eyes.
Cue Energy Resources Limited (ASX:CUE)
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