Jadestone Energy (JSE) H1 2024 earnings summary

Executive summary

• Production increased 37% year-over-year in H1 2024, driven by organic growth, acquisitions, and portfolio diversification.

• Akatara gas project achieved mechanical completion in June and began commercial sales in July, with temporary curtailment for compressor repairs.

• Portfolio expanded with Vietnam gas sales heads of terms, CWLH 2 acquisition, and SFA Cluster PSC award in Malaysia.

• Underlying operating costs remained broadly flat despite higher production, supporting improved cash flow.

• Strategy focused on acquisitions, reinvestment, and operational efficiencies to support growth and resilience.

Financial highlights

• Revenue more than doubled year-over-year to $185.1 million, mainly from higher liftings and improved prices, offset by $15 million in hedging losses.

• Operating cash flow before tax and working capital was $28 million, up $52 million year-over-year.

• Net debt at 30 June 2024 was $69.1 million, reflecting investments and inventory build.

• Net loss after tax was $31.1 million, mainly due to a $45.8 million non-cash underlift charge from the CWLH 2 acquisition.

• Adjusted EBITDAX improved to $60.2 million from a $3.1 million loss in H1 2023.

Outlook and guidance

• 2024 production guidance maintained at 18,500–21,000 boe/d, with expectations toward the lower end due to Akatara ramp-up.

• Operating cost guidance unchanged at $240–280 million, excluding royalties and carbon taxes.

• CapEx guidance unchanged at $80–110 million, focused on Akatara and Montara projects.

• Expecting a boost to production and cash flows in Q4 and beyond as Akatara ramps up to full capacity.

• Other expenditure guidance unchanged at ~$62 million, mainly for CWLH 2 abandonment funding.