Empire Oil & Gas says reduced demand from client Alcoa contributed to a two-thirds fall in interim profit.
The onshore Perth Basin gas producer’s net profit for the first dropped to $384,000 from a 1.2 million a year earlier.
Revenue slipped to $8.7 million from $10.5 million. Empire said the drop was primarily because of lower gas nominations by Alcoa from the Red Gully gas-condensate plant near Gingin.
It said the sales decline was offset by cost cuts at Red Gully which saved $300,000.
Gas production for the half fell 20 per cent to 1.2 petajoules, while condensate dropped 36 per cent to 35 kilobarrels.
“The second half of (calendar) 2016 saw Empire continue to deliver positive operational and financial results despite lower gas nominations and commodity prices,” chief executive Ken Aitken said.
Empire’s shares were down 2¢, or 8 per cent, to 23¢ at 12.04pm.