BPH Energy Ltd reported a half-year net loss of $925,691, weighed down by investment write-downs and associate losses, while raising $1.2 million to fund exploration and development. The company’s future hinges on a Federal Court review of a critical offshore permit held by investee Advent Energy.
- Half-year net loss of $925,691 versus prior profit of $7 million
- Material uncertainty over Advent Energy’s PEP-11 offshore permit
- Raised $1.2 million in January 2026 placement for exploration and Cortical Dynamics
- Significant investments in Clean Hydrogen Technology and Cortical Dynamics
- Directors participated in new option issuances to support ongoing development
Financial Results and Investment Challenges
BPH Energy Ltd has reported a net loss of $925,691 for the half-year ended 31 December 2025, a sharp reversal from the $7.07 million profit recorded in the prior corresponding period. The loss was primarily driven by fair value losses on investments, including a $422,807 write-down related to stakes in MEC Resources and Clean Hydrogen Technology Corporation, alongside associate losses and share-based payment expenses.
Despite the loss, BPH maintains a solid working capital surplus of over $10 million and expects sufficient cash flow to sustain operations for at least the next 12 months. No dividends were declared, reflecting the company’s focus on reinvestment and development.
Advent Energy’s PEP-11 Permit Under Judicial Review
A key source of uncertainty for BPH is the status of its 35.8% investee Advent Energy Limited, which holds the PEP-11 offshore petroleum exploration permit. In January 2025, the National Offshore Petroleum Titles Administrator refused joint venture applications to extend the permit, prompting Advent’s subsidiary to seek judicial review in the Federal Court.
The hearing, initially scheduled for September 2025, was adjourned and is now set for February 2026. The outcome is critical, as a loss of the permit could force a write-off of $16.15 million in capitalised exploration assets and impair BPH’s loan receivables and investment in Advent. The auditor’s report highlights this material uncertainty but does not modify its unqualified opinion.
Progress in Clean Energy and Medical Technology Investments
BPH’s portfolio includes a 16.1% stake in Clean Hydrogen Technology Corporation, which is advancing turquoise hydrogen and carbon nanotube production facilities in India and the USA. Although still in the pilot phase, CHT is seeking US$2.5 million in funding to build commercial plants, aiming to tap into growing industrial demand.
Another significant investment is Cortical Dynamics Limited (16.4%), which is nearing technical completion of its AI-enhanced brain and pain monitoring system, BARM 2.0. The company is preparing for clinical trials and regulatory submissions in multiple jurisdictions, including the US and Europe, while actively engaging with investors and medical technology regulators.
Capital Raising and Shareholder Support
In January 2026, BPH completed a placement raising approximately $1.2 million at $0.009 per share, with attaching options exercisable at $0.03. The funds are earmarked for oil and gas exploration, working capital, and support for Cortical Dynamics. Directors David Breeze and Tony Huston participated in new option issuances, demonstrating alignment with shareholder interests and confidence in the company’s strategic direction.
Additionally, BPH has been active in managing its capital structure, including the expiry and reissue of over 622 million options, and issuing performance rights tied to milestone achievements related to the PEP-11 permit extension.
Looking Ahead
BPH Energy’s near-term outlook hinges on the Federal Court’s decision regarding Advent Energy’s PEP-11 permit, which carries significant implications for asset valuations and future exploration activities. Meanwhile, progress in clean hydrogen and medical technology investments offers potential growth avenues, albeit with inherent execution risks typical of early-stage ventures.
Bottom Line?
BPH Energy’s next chapter depends on a pivotal court ruling and successful commercialisation of its clean tech investments.
Questions in the middle?
- What will be the outcome and timing of the Federal Court hearing on Advent Energy’s PEP-11 permit?
- How will BPH manage valuation risks if the permit extension is denied?
- What are the funding and commercialisation timelines for Clean Hydrogen Technology and Cortical Dynamics?