In its March Quarterly Report, Senex Energy (ASX:SXY) revealed a significant drop in revenue and an additional cut to capital expenditures. In the March quarter, sales revenue came in at $22.3m, down 21 per cent from the previous quarter and down 60 per cent from the previous corresponding period. Sales volumes for the March quarter of .31 million barrels of oil equivalent (MMboe) were down 11 per cent compared to the previous quarter, but up from the .29 MMboe from the previous corresponding period. Net production also fell on the quarter from .36 to .33 MMboe, an 8.3 per cent slip. Production was up slightly from the .30 MMboe from the previous corresponding period. The average realised oil price fell 11.1 per cent from $81 per barrel in the previous quarter to $72 per barrel in the March quarter. Compared to the previous corresponding period, the average realised oil price fell over 80 per cent from $129 per barrel.
Senex also decided to cut capital expenditure amid low oil prices. Capital expenditure was significantly reduced from $27.7m in the previous quarter to $14.5m in the March quarter, a 47.7 per cent decrease. This figure was even further reduced compared to the $33m from the previous corresponding period. On 31 March 2015, Senex had cash reserves of $63m. The company also “further strengthened” its financial position with the establishment of an $80m unsecured corporate debt facility. “Senex will continue to manage its balance sheet conservatively and has no requirement to draw down on the facility,” the report said. Shares of SXY have fallen 4c, or 8.70 per cent, to 42c per share around 1:00pm on Wednesday. SXY has fallen almost 40 per cent in the last 12 months but has risen over 30 per cent so far this year.