Central Petroleum Limited

FY2025 statutory profit was $7.7 million, compared with $12.4 million last year, though last year included a $13.8 million one-off gain from the sale of an interest in a Queensland gas permit. Underlying profit improved to $6.5 million from an underlying loss of $1.4 million. Revenue rose 17% to $43.6 million, driven largely by a 19% increase in realized price to $9.02 per gigajoule equivalent, and underlying EBITDAX increased 43% to $19.6 million. Gross margin excluding depreciation increased 26% to $4.60 per gigajoule equivalent, up from $3.65 last year. 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 flows should be less affected because of take-or-pay arrangements. They also said gas overlift will be returned by May next year, which should add in excess of $6 million a year in extra revenue once fully normalized, and they expect further margin improvement in the year to June next year as higher-priced contracts flow through for a full year.

Leon Devaney framed FY2025 as a year of operational and financial momentum, highlighting a multiyear gas sales agreement, successful drilling at Mereenie, and a debt restructure that removed refinancing risk by extending amortization to 2030. His tone was upbeat but disciplined: he emphasized shareholder returns, including a buyback and possible dividends, while saying growth investments would only proceed if they add value. He also pointed to future drilling at Palm Valley and Mereenie, sub-salt exploration at Mount Kitty, and broader East Coast opportunities as part of a selective growth strategy.

Damian Galvin said the business saw a marked turnaround in FY2025, with $7.7 million statutory profit, $6.5 million underlying profit, $43.6 million in revenue, and $19.6 million in underlying EBITDAX. He highlighted margin expansion to $4.60 per gigajoule equivalent, lower corporate and admin costs down 39% year over year and 60% over two years, and a stronger balance sheet with $27.5 million in cash and $3.9 million net cash. He also noted the loan facility is locked in until 2030 with no mandatory principal repayments until March 2027, and said the company can buy back up to 10% of issued capital over 12 months, with costs estimated at about $4 million at current prices for a 10% buyback or $2 million for 5%.

In questions, shareholders pressed management on dividends, exploration timing, gas overlift, Palm Valley drilling, joint venture alignment, Dingo production, longer-term gas contracts, the Beetaloo, hydrogen commercialization, and the share price. Management said dividends are seriously under consideration alongside other capital uses, but timing depends on how those options play out over the next few months. On Mount Kitty, Leon said the target is a well by mid-2027 if the joint venture issues can be resolved, while on overlift Damian estimated it could add in excess of $6 million a year in extra revenue once fully returned by May next year. On longer-term contracting, Leon said the market beyond 2028 remains uncertain but Central is actively marketing volumes and already has contracts extending through 2030.