Amplitude Energy (AEL) Q4 2024 earnings summary

Executive summary

• Q4 FY 2024 production averaged 63.9 TJ/day, up 1% sequentially, with revenue rising 2% to AUD 57.3 million; annual production increased 4% year-over-year to 62.1 TJ/day, and revenue grew 11% to AUD 219.1 million, driven by improved Orbost performance and Athena's rebound post-maintenance.

• The Orbost Improvement Project delivered record absorber runtime and improved polisher unit performance, supporting higher reliability and production.

• BMG wells decommissioning was completed in May, with costs slightly under AUD 270 million and no safety or environmental incidents.

• Entered agreement with Alinta Energy to supply as-available gas to Bairnsdale Power Station during peak electricity demand.

• Focus shifted to growth via the East Coast Supply Project, with planning advanced and first gas targeted for 2028.

Financial highlights

• Quarterly sales revenue reached AUD 57.3 million, up 2% sequentially and 17% year-over-year; FY 2024 total sales revenue was AUD 219.1 million, 11% higher than FY 2023.

• Sales volume for Q4 FY24 was 5.95 PJe, up 3% sequentially; realized gas price averaged AUD 9.19/GJ for the quarter, flat sequentially but up 6.7% year-over-year.

• 530 TJ of gas sold into the spot market at an average price of AUD 13.54/GJ.

• Cash and cash equivalents fell to AUD 14.5 million from AUD 53.3 million in Q3 FY24; net debt increased 52% sequentially to AUD 250.5 million.

• Q4 capital expenditure was AUD 12.9 million, mainly due to ECSP subsea tree order; full-year capex and abandonment spend on track within AUD 240–280 million guidance.

Outlook and guidance

• September quarter expected to see increased production as pipeline constraints at Sole are resolved; FY 2025 targets: group production above 70 TJ/day, Orbost below 60 TJ/day.

• Focus on maximizing cash generation, debt reduction, and progressing the East Coast Supply Project.

• FY 2024 production expenses expected within AUD 57-63 million, with ongoing cost reduction initiatives and annualized cost savings of around AUD 10 million targeted from mid-year.

• Updated strategy focuses on production growth, improved reliability, higher cash margins, and supporting the energy transition.

• Further reliability and sulphur processing improvements at Orbost expected to boost production in September quarter.