Amplitude Energy Breaks Revenue Records While Slashing Net Debt Ahead of ECSP
Amplitude Energy has reported a record quarterly sales revenue of $67.9 million for Q2 FY25, alongside a 9% reduction in net debt, driven by strong spot gas sales and operational improvements at the Orbost Gas Processing Plant. The company continues to advance its East Coast Supply Project, positioning itself for future growth.
- Record quarterly sales revenue of $67.9 million, up 3% from Q1 FY25
- Net debt reduced by 9% to $254.2 million
- Spot gas sales increased 38%, with average realised gas prices rising to $9.98/GJ
- Orbost Gas Processing Plant (OGPP) improvement project delivers operational efficiencies
- East Coast Supply Project (ECSP) development progressing with ongoing customer discussions
Record Revenue and Debt Reduction
Amplitude Energy has delivered a strong financial performance in the second quarter of fiscal year 2025, posting record sales revenue of $67.9 million, a 3% increase on the previous quarter. This growth was accompanied by a notable 9% reduction in net debt, which now stands at $254.2 million. The company’s ability to reduce leverage while growing revenue signals robust operational execution and financial discipline.
Operational Highlights and Production
Production for the quarter averaged 6.67 petajoules equivalent (PJe), slightly down 3% from the prior quarter but still within the upper range of market guidance. The Orbost Gas Processing Plant (OGPP) improvement project has been a key driver of operational efficiency, achieving record runtimes between absorber cleans and reducing maintenance downtime to historic lows. These improvements have enhanced production reliability and flexibility, enabling Amplitude to capitalise on favourable market conditions.
Spot Gas Sales and Pricing Gains
Amplitude Energy recorded a 38% increase in spot gas sales volumes, selling 21 terajoules per day (TJ/d) into spot markets, including a new entry into the Sydney spot gas market. This strategic expansion contributed to an increase in the average realised gas price to $9.98 per gigajoule (GJ), up 6% from the previous quarter. The company’s ability to leverage higher spot prices and diversify market exposure has enhanced margins and revenue quality.
East Coast Supply Project Progress
The East Coast Supply Project (ECSP), a critical growth initiative, continues to advance with detailed engineering underway and active discussions with foundation gas customers and potential joint venture partners. Amplitude Energy aims to drill at least one firm well in FY26, with flexibility for additional wells depending on partner involvement. The recent extension and increase of the company’s debt facility to $480 million, maturing in 2029, provides financial capacity to support ECSP development and associated capital expenditure.
Looking Ahead
While production volumes saw a modest decline, operational improvements and market positioning have allowed Amplitude Energy to maximise value from its gas sales. The company’s focus on reducing net debt and securing funding for the ECSP positions it well for the next phase of growth. However, the success of the ECSP will depend on securing firm customer contracts and managing project execution risks.
Bottom Line?
Amplitude Energy’s record revenue and debt reduction set the stage for a pivotal year as the East Coast Supply Project moves closer to sanctioning.
Questions in the middle?
- Will Amplitude secure sufficient foundation customers and partners to fully fund the ECSP?
- How will evolving gas market dynamics in Sydney and Victoria impact Amplitude’s spot sales strategy?
- What operational challenges remain at OGPP that could affect production reliability going forward?