Strike Energy’s FY25 Revenue Jumps to $72.7M Amid Major Project Starts

Leadership and Strategic Reset

Strike Energy Limited has marked FY25 as a transformative year, highlighted by a leadership overhaul with Peter Stokes stepping in as Managing Director and CEO, alongside Tim Cooper as CFO and Company Secretary. This new leadership duo is steering the company towards disciplined execution and value creation, following a comprehensive strategic review that refocused Strike’s efforts on its vertically integrated gas and power assets.

Project Milestones and Exploration Success

One of the standout developments is the commencement of construction on the South Erregulla Peaking Gas Power Station, an 85 MW facility expected to be operational by October 2026. This project underscores Strike’s commitment to delivering near-term cash flow and playing a pivotal role in Western Australia’s energy transition. Complementing this, the Erregulla Deep-1 well has confirmed a new, high-deliverability, low-impurity gas discovery adjacent to the existing West Erregulla field, enhancing the company’s resource base.

Stable Production Amidst Challenges

Production at the Walyering field remained stable throughout the year, delivering approximately 25 terajoules per day of sales gas and generating significant cash flow. However, the company recorded a substantial impairment expense of $103.3 million related to downward revisions in Walyering reserves, contributing to a net loss after tax of $157.3 million. Despite this setback, ongoing field extension and compression work aim to manage decline and support future output.

Financial Strength and Capital Management

Financially, Strike demonstrated robust growth with FY25 sales revenue climbing to $72.7 million from $45.6 million in FY24, and underlying EBITDA nearly doubling to $41.6 million. The company’s liquidity was bolstered by a $217 million financing package arranged with Macquarie Bank, providing a solid foundation for upcoming development activities. Post-reporting period, Carnarvon Energy’s strategic investment of approximately $86 million further validates Strike’s asset quality and growth prospects.

Looking Ahead

With environmental approvals and production licenses secured for West Erregulla, and promising seismic data at Ocean Hill and Ocean Hill South, Strike is well positioned to expand its resource base. The company’s integrated gas-to-power strategy, combined with a strong financial position and a clear roadmap, sets the stage for disciplined execution and value realisation in FY26 and beyond.