Central Petroleum reports Underlying Earnings Before Interest, Tax, Depreciation, Amortisation and Exploration (EBITDAX) for the half year to 31 December 2024 of $8.6 million, an increase of 7% from the first half of FY2024. After absorbing the costs of exploration activities, finance and depreciation, Central has recognised a statutory net profit after tax of $1.5 million.
Highlights since 30 June 2024
- New long-term gas sales agreements were secured for firm supply of up to 12.0 PJ of gas (Central share) to the Northern Territory Government commencing 1 January 2025 through to 31 December 2030, providing more reliable cash flows.
- New contracts lifted the average portfolio price to over $9.70/GJe for the month of January 2025, up more than 21% from the December half year average of $7.96 /GJe.
- In December the Group’s loan facility was extended and restructured with a five-year term ending 31 December 2029. Debt service requirements have been restructured and additional debt capacity continues to be available for possible new production wells at Mereenie and Palm Valley.
- In December the first of two new development wells at Mereenie commenced and the well was subsequently commissioned as a production well in January 2025.
- A second new well was subsequently drilled at Mereenie and commissioned in late February 2025. Aggregate production from the two new wells has exceeded expectations by about 50% and increased Mereenie sales capacity to ~32 TJ/d (100% JV) in early March 2025.
- Cashflow from operations was $4.3 million for the half year reflecting stronger receipts from customers, lower debt servicing following the loan facility restructuring, and lower payments for exploration.
'The results for the half year reflect a solid performance and strong recovery from the impact of pipeline closures in 2024', said Leon Devaney, CEO and Managing Director. 'The second half of FY2025 is shaping up to be stronger, as increased production from the successful Mereenie drilling program and the commencement of new Northern Territory gas sale agreements from January 2025 help mark an important inflection point for the Company', he said.
Source: Central Petroleum
