Central Petroleum Posts $41.8M Revenue, 5.5% Quarterly Growth
Central Petroleum Limited reports a robust 22% increase in full-year revenue for FY25, driven by new gas sale contracts and strong operational cash flows. Production at key fields remains steady despite temporary constraints.
- 22% revenue growth to $41.8 million in FY25
- 5.5% revenue increase in June quarter over March quarter
- Mereenie wells outperform pre-drill expectations
- Operating cash inflows rise 70% to $8.1 million
- Cash balance strengthens to $27.5 million
Strong Revenue Growth Driven by New Contracts
Central Petroleum Limited has reported a significant uplift in its financial and operational performance for the quarter ended 30 June 2025. The company’s sales revenue surged by 22% to $41.8 million for the full financial year compared to FY24, largely reflecting the impact of new gas sale contracts that commenced in January 2025. The June quarter alone saw a 5.5% increase in revenue over the March quarter, which itself had posted a 22% rise over the December quarter, underscoring a consistent upward trajectory.
Steady Sales Volumes and Higher Prices
Sales volumes remained steady at 1.16 petajoules equivalent for the quarter, slightly above FY24 levels by 2.4%. The average realised sales price increased to $10.38 per gigajoule equivalent, a 6% rise from the previous quarter and 19% higher than the FY24 average. This price improvement, combined with steady volumes, has been a key driver of the revenue growth. The company also benefited from recovering increased regulatory costs under eligible sales contracts and timing of payments related to overlift returned gas.
Operational Highlights at Mereenie and Other Fields
The Mereenie oil and gas field continues to outperform expectations, with new wells contributing nearly 25% of the field’s sales volume and operating above pre-drill forecasts. Despite temporary production constraints due to oil offtake limitations, gas production remained strong. Other fields such as Palm Valley experienced slight declines due to planned maintenance and natural field decline, while the Dingo gas field maintained steady output. The company is progressing appraisal and permitting activities at Palm Valley to potentially increase production capacity subject to market conditions.
Robust Cash Position and Capital Management
Central Petroleum’s cash balance rose to $27.5 million by the end of June, up $6 million from March, supported by strong operating cash inflows of $8.1 million before interest and exploration costs. Capital expenditure was modest at $1.1 million, primarily related to the completion of the drilling program at Mereenie. The sale of the non-core Brewer Estate property generated $1 million in proceeds, further strengthening liquidity. The company’s net cash position stood at $3.9 million, including funds held as security for its loan facility, which has no principal repayments due until 2027.
Exploration and Safety Update
Exploration efforts continue with a focus on helium and naturally occurring hydrogen in sub-salt permits within the Amadeus Basin. Rehabilitation activities in the Georgina Basin are ongoing following delays caused by flooding. Importantly, Central Petroleum reported no safety or environmental incidents during the quarter, maintaining a Total Recordable Injury Frequency Rate of 3.5, reflecting a strong commitment to operational safety and environmental stewardship.
Bottom Line?
With solid revenue gains and a healthy cash position, Central Petroleum is well placed to capitalize on its expanding gas portfolio and exploration prospects.
Questions in the middle?
- How will Central Petroleum manage the temporary production constraints at Mereenie in the coming months?
- What are the prospects and timelines for commercialising helium and hydrogen exploration targets?
- Will the company pursue further asset sales or capital raising to support growth initiatives?
