Central Petroleum’s EBITDAX Climbs 43% to $19.6 Million in FY2025
Central Petroleum Limited has reported a robust 43% increase in underlying EBITDAX for FY2025, alongside its inaugural on-market share buy-back, signaling confidence in its strengthened financial footing and growth prospects.
- Underlying EBITDAX rises 43% to $19.6 million
- Sales revenue grows 17% to $43.6 million
- Return to underlying profit of $6.5 million from prior year loss
- Secured long-term gas contracts in Northern Territory
- Announced first shareholder returns via on-market buy-back
Strong Financial Turnaround
Central Petroleum Limited (ASX, CTP) has unveiled a markedly improved financial performance for the fiscal year ending June 2025. The company’s underlying EBITDAX, a key measure of operational profitability before tax, interest, depreciation, amortisation, exploration costs, and impairments, surged by 43% to $19.6 million. This uplift reflects a significant turnaround from the previous year’s results, where the company recorded an underlying loss.
Sales revenue also climbed 17% to $43.6 million, underpinned by increased natural gas and condensate volumes. The company’s underlying profit after tax returned to positive territory at $6.5 million, a stark contrast to the $1.4 million loss reported in FY2024. These gains were achieved despite absorbing exploration costs and depreciation, highlighting operational resilience.
Operational Drivers and Strategic Contracts
Central’s improved results were driven by several operational milestones. Notably, the company secured long-term gas supply contracts with the Northern Territory Government, ensuring reliable cash flows and underpinning future revenue stability. This strategic partnership is a cornerstone for Central’s growth ambitions in the region.
Additionally, Central successfully drilled and commissioned two new production wells at the Mereenie field ahead of schedule and above initial production targets. These wells have contributed to higher gas flows and enhanced production rates, reinforcing the company’s operational momentum.
Financial Restructuring and Shareholder Returns
Central also restructured and extended its loan facility, pushing the maturity date to 2030 and eliminating refinancing risk in the near term. This financial maneuver provides the company with greater flexibility and a stronger balance sheet to support ongoing exploration and development activities.
In a notable first, Central announced an on-market share buy-back program commencing in September 2025. This move signals management’s confidence in the company’s valuation and cash generation capabilities, offering shareholders a direct return of capital. CEO Leon Devaney highlighted that the company is now well-positioned to explore multiple pathways for value creation, including acquisitions, early debt repayment, and potentially sustainable dividends.
Looking Ahead
Central Petroleum’s FY2025 results mark a pivotal moment in its evolution from a turnaround story to a growth-oriented energy producer. With a strengthened financial position, secured contracts, and operational advancements, the company is poised to capitalize on opportunities within the Northern Territory’s energy sector, including exploration of helium and hydrogen prospects alongside conventional gas.
Bottom Line?
Central Petroleum’s strengthened financials and strategic initiatives set the stage for accelerated growth and shareholder value creation.
Questions in the middle?
- How will Central balance exploration ambitions with capital discipline amid volatile energy markets?
- What impact will the on-market buy-back have on share liquidity and investor sentiment?
- Can the company sustain production growth while managing operational costs and regulatory risks?
