AWE Ltd reported a full-year loss as the petroleum explorer and producer said natural field decline and maintenance caused a significant fall in production and sales.
The company recorded a loss of $28.9 million for the 12 months to June 30 compared with a profit of $88.6 million in the prior corresponding period, Sydney-based AWE said in a statement on Tuesday.
Revenue fell 40 per cent to $355.2 million as a result of a decline in production, mainly due to natural field decline at Tui in New Zealand, and planned maintenance at the BassGas project.
The company said production guidance for the current financial year was 6.5 million to seven million barrels of oil equivalent (BOE), and capital expenditure would be lower during 2010/11 when compared to the year before.
"The year to June 2010 has been disappointing for the company and our shareholders," AWE said.
"Whilst revenues and cashflows remained solid, the high-profile exploration program did not produce the anticipated results.
"However, the core production business is providing strong cash flow for the Company."
AWE wrote off $113.1 million related to unsuccessful drilling in NZ, Australia and Indonesia. The company also recorded an asset impairment of $23.4 million in the onshore Perth Basin.
AAP