Strike Energy (STX) H2 2026 earnings summary

Executive summary

• Advanced construction and commissioning of the 85 MW South Erregulla Power Project, targeting commercial operations in Q4 CY26, with new leadership appointed and a refreshed board structure.

• Achieved significant progress on major development projects, including Walyering, West Erregulla, and South Erregulla, with a defined pathway for West Erregulla development and increased 2P reserves at key assets.

• South Erregulla Power Project (SEPP) nearing commissioning, expected to provide new high-margin earnings and dual revenue streams.

• Agreement reached with Hancock on West Erregulla, enabling a pathway to market via the Belisama facility and securing pre-FID funding.

• Secured additional funding and established new financing facilities to support ongoing and future development.

Financial highlights

• FY26 sales revenue was AUD 62.8 million, with underlying EBITDA of AUD 17.6 million and cash at 30 June of AUD 46.3 million.

• CapEx totaled AUD 151.3 million, mainly for South Erregulla Power Station, and net assets increased to AUD 355.6 million.

• Borrowings at AUD 157.7 million, primarily for South Erregulla, with net debt at 30 June 2026 of AUD 111.4 million.

• Underlying EBITDA declined year-over-year from AUD 41.6 million in FY25 to AUD 17.6 million in FY26, mainly due to lower production and higher costs.

• Loss for the year was AUD 157.3 million, compared to a loss of AUD 27.2 million in FY25.

Outlook and guidance

• South Erregulla Power Station expected online by year-end, with forecast project cost of AUD 186 million and capacity revenue projected at AUD 19 million (2027), AUD 31 million (2028), and AUD 42 million (2029).

• West Erregulla targeting FID by mid-FY28 and first gas by mid-2029, with indicative annual revenue of AUD 127 million at AUD 8/GJ.

• Remaining CapEx for South Erregulla as of 30 June 2026 is approximately AUD 16 million, now forecast at AUD 11 million.

• Focus on converting South Erregulla into cash flow, servicing debt from operating cash flow, and disciplined capital management.

• Priorities for FY27 include delivering South Erregulla into commercial operations, progressing West Erregulla towards FID, and maintaining Walyering performance.