Carnarvon Energy (CVN) H2 2026 earnings summary

Executive summary

• Contracted Transocean Equinox rig for 2027 Bedout drilling campaign, targeting one firm and one contingent well, with Ara-1 as the likely firm well.

• Completed Bedout Mega-Merge 3D seismic dataset, increasing prospect inventory by 92% to over 6.2 billion boe (gross, unrisked Pmean).

• Strategic $86 million investment in Strike Energy Limited, securing a 19.9% shareholding and exposure to Western Australia's gas and electricity markets.

• Maintained a robust balance sheet with $98m in cash, a US$90m CAPEX carry for Dorado, and no debt.

Financial highlights

• Reported after-tax loss of $4.23 million for FY26, compared to a profit of $3.65 million in FY25.

• Cash and cash equivalents at $97.68 million as of 30 June 2026, down from $186.14 million in FY25.

• Interest income of $4.45 million, exceeding ongoing corporate and administrative costs.

• Recognised $81.84 million investment in Strike Energy and a $5.04 million share of loss in associate.

• Administrative and head office costs reduced to $1.32 million; employee benefits at $0.95 million.

Outlook and guidance

• 2027 Bedout exploration campaign to commence in H1 2027, targeting high-impact prospects.

• Continued focus on progressing Dorado and Pavo projects toward FID, with first oil expected three years post-FID.

• Ongoing strategic collaboration with Strike Energy as it advances Perth Basin projects.

• Exploration and development activities supported by strong cash reserves and capital discipline.