Amplitude Energy (AEL) H1 2025 earnings summary

Executive summary

• Achieved record production and financial performance in H1 FY25, driven by operational improvements, higher realised gas prices, and enhanced reliability at key plants, notably OGPP and Orbost.

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

• Rebranded as Amplitude Energy Limited in November 2024, reflecting renewed strategic focus and market positioning.

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

• No interim dividend was declared for the period.

Financial highlights

• Sales revenue reached A$133.7 million, 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 increased 115% to A$45.4 million; adjusted cash from operations up 15% to A$81.5 million.

• Production expenses were A$28.9 million, with unit costs at A$2.14/GJ, down 12% year-over-year.

• CapEx for the half was A$23.9 million, mainly for ECSP and long-lead items; restoration payments totaled A$32.9 million.

• Net profit after tax was A$8.5 million, up from A$5.4 million in H1 FY24; statutory profit after tax was A$7.6 million, reversing a prior loss.

Outlook and guidance

• FY25 production guidance increased to 65–72 TJe/d, with current run rate at 73.5 TJe/d and further improvements targeted.

• FY25 production expenses forecast at A$55–63 million; capex at A$50–60 million, excluding decommissioning and abnormal pipeline inspection costs.

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

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

• Continuous improvement program aims to deliver A$12 million in cashflow improvements by end-FY25.