Carnarvon Energy (CVN) H2 2025 earnings summary

Executive summary

• Dorado development was delayed, prompting a strategic review and a post-year-end investment in Strike Energy Limited for up to $89 million, securing up to 19.9% equity and exposure to Perth Basin assets while retaining full Bedout Sub-basin exposure.

• Balance sheet remains strong with $186 million cash at year-end, no debt, and a US$90 million carry for Dorado development; interest income exceeded costs, and administrative expenses were reduced.

• All non-core assets were exited, focusing solely on Bedout Sub-basin; exploration drilling is targeted for 2026 following completion of a major seismic project.

Financial highlights

• After-tax profit of $3.65 million for FY25, reversing a prior year loss of $656,000; earnings per share of $0.20.

• Interest income totaled $8.55 million, exceeding administrative and employee costs.

• Cash and cash equivalents increased to $186.1 million (from $179.6 million), with no debt.

• Administrative and head office costs reduced to $1.46 million; employee benefits $2.53 million; new venture/advisory costs $707,000.

• Foreign exchange gain of $3.79 million recognized due to AUD depreciation against USD holdings.

Outlook and guidance

• Dorado development timeline under review; updates expected as planning progresses.

• Exploration drilling in Bedout Sub-basin targeted for Q3 2026, subject to approvals and rig availability.

• Continued focus on maximizing value from core assets and maintaining capital discipline.