Central Petroleum Limited

FY2025 statutory profit was $7.7 million, compared with $12.4 million last year; last year included a $13.8 million profit from the sale of the Range gas permit interest. Underlying profit was $6.5 million versus an underlying loss of $1.4 million in FY2024. Revenue was $43.6 million, up 17% year over year, driven largely by a 19% increase in realized price to $9.02 per gigajoule equivalent. Underlying EBITDAX rose 43% to $19.6 million. Gross margin excluding depreciation increased 26% to $4.60/GJ equivalent from $3.65. Cash at June 30 was $27.5 million and net cash was $3.9 million. Looking ahead, management said September-quarter gas volumes are expected to be about 8% lower than the June quarter, but cash flow should be less affected because of take-or-pay protection. They also said the gas overlift should be returned by May next year, which they estimate could add more than $6 million a year in extra revenue at around $9-$10 gas prices.

Leon Devaney framed FY2025 as a year of operational and financial momentum, pointing to improved gas contracting, stronger field execution, and a much better balance sheet. He said the company now has the flexibility to pursue shareholder returns, including buybacks and potentially sustainable dividends, while still funding growth. He emphasized disciplined capital allocation, active marketing of future gas volumes, and a selective approach to new opportunities onshore and beyond the NT.

Damian Galvin highlighted the year’s financial turnaround, with statutory profit of $7.7 million and underlying profit of $6.5 million, plus revenue of $43.6 million and underlying EBITDAX of $19.6 million. He said realized prices rose 19% to $9.02/GJ equivalent and gross margin excluding depreciation improved to $4.60/GJ equivalent, while net corporate and administration costs were down 39% year over year and 60% over two years. He also noted cash of $27.5 million, net cash of $3.9 million, no mandatory principal repayments until March 2027, and a debt facility locked in until 2030; the buyback could cost about $4 million for 10% of shares or $2 million for 5%, though actual repurchases may be less than the cap.

Analysts focused on dividends, helium exploration timing, the benefit from returned gas overlift, Palm Valley drilling timing, Dingo production, and visibility on 2028+ gas contracting. Management said dividends are under serious consideration but remain one of several capital-allocation options; Mount Kitty could be targeted by mid-2027 if joint-venture issues are resolved; and the gas overlift could add in excess of $6 million a year in revenue once fully returned by May next year. On Palm Valley and broader future gas sales, they said drilling depends on securing acceptable long-term contracts, and they acknowledged uncertainty in the longer-term NT gas market beyond 2028.