Amplitude Energy (AEL) H1 2025 earnings summary

Executive summary

• Achieved record production and financial results in H1 FY25, driven by improved Orbost/OGPP performance, higher realised gas prices, and increased plant reliability.

• Completed major decommissioning projects, notably BMG wells, enabling focus on growth and supply to the tight East Coast gas market.

• Rebranded as Amplitude Energy in November 2024, reflecting a renewed focus on growth and Australia's energy future.

• Strategic priorities include maximising cash flow, deleveraging, and progressing the East Coast Supply Project (ECSP).

• Maintained exemplary safety and environmental records, with no recordable injuries or environmental incidents in H1 FY25.

Financial highlights

• Sales revenue reached A$133.7 million for H1 FY25, up 26% year-over-year, with underlying EBITDAX up 53% to A$93.2 million and underlying profit after tax up 58% to A$8.5 million.

• Operating cash flow more than doubled to A$45.4 million; adjusted cash from operations up 15% to A$81.5 million.

• Capital expenditure for H1 FY25 was A$23.9 million, mainly for ECSP; restoration payments were A$32.9 million.

• Net debt at 31 December 2024 was A$254–250.7 million, with cash and equivalents of A$51.0 million and drawn debt of A$305 million.

• Gross profit was A$43.4 million (up 76%); gross margin 32.5%.

Outlook and guidance

• FY25 production guidance increased to 65–72 TJe/d, reflecting improved Orbost/OGPP performance and current run rates ahead of target.

• FY25 capex guidance is A$50–60 million; production expenses forecast at A$55–63 million.

• ECSP drilling phase expected to be sanctioned in FY25, with first well drilling in FY26 and first gas targeted for 2028.

• Focus remains on maximizing cash flow, reducing debt, and preparing for growth investment in the Otway.

• Anticipate continued margin expansion as more gas is sold into the spot market and contracts are indexed to CPI.