The Sydney-based company did post an operating profit of $21 million, but it was 36% lower than in 2001 because of lower production due to asset sales and the stronger Australian dollar. Sales for the full year dropped 39% to 202.4 million.

Novus managing director Bob Williams said the results reflect the company's strategy of focusing on gas exploration in United States and the Middle East. The company plans to maintain its exploration momentum that saw eight wells drilled in 2002.

Indonesia's Kakap, South Australia's Cooper Basin and the US Stratton field are the company core producing assets with the rapidly growing Wunut field in East Java also becoming a key cash generator for Novus.

Novus said, in line with company policy, it would not pay a dividend and reinvest cash flow into gas exploration.

Currently, Novus is trading at $1.07, up 1c on yesterday's trading.