NZ Oil & Gas says profits to be larger on Tui field

WELLINGTON, Feb 27 (Reuters) - Energy company New Zealand Oil and Gas Ltd (NZO.NZ: Quote, Profile, Research, Stock Buzz) said on Wednesday returns its Tui oil field would drive future earnings above previous forecasts and allow a return to dividend payouts.

But the company said volatile oil and currency levels meant it could not accurately predict how big the increases would be.

In June last year NZOG chief executive David Salisbury told Reuters earnings before interest, tax, depreciation and amortisation (EBITDA) would reach NZ$30 million in 2009, rising to NZ$50 million in 2010.

"They not only look conservative, we've already exceeded them by quite a margin in this year," Salisbury told a media briefing, adding latest estimates have the Tui field at 42 million barrels, 50 percent larger than pre-development forecast.

NZOG reported a net profit for the six months to Dec. 31 of NZ$41.4 million ($33.7 million), compared with a profit of NZ$0.5 million last year.

It also paid a dividend of 5 cents a share for the current financial year, its first in a decade.

Shares in the company jumped 5.8 percent to a six month high of NZ$1.27 on the news, and at last trade had settled lower to be up 4.2 percent at NZ$1.24. (NZ$1=$1.23)