Jadestone Energy swings to H1 loss as production drops but costs rise
Jadestone Energy swings to H1 loss as production drops but costs rise
Overview
Asia-Pacific oil and gas producer's H1 revenue rose 3%, after hedging despite lower production; revenue before hedging rose 13%
Company posted H1 net loss after tax, reversing profit from prior-year period
Production decline driven by CWLH restart delays and Stag cyclone shutdown
Outlook
Jadestone maintains 2026 guidance: production 16,000-18,000 boepd, opex US$260-300 mln, capex US$50-80 mln
Company targets 2025-2027 free cash flow (pre-debt servicing) of US$200-240 mln
CWLH production resumption targeted for end-Q3 2026; Stag restart expected in Q2 2027
Result Drivers
PRODUCTION DISRUPTIONS - Co said H1 production fell due to delayed CWLH restart after dry dock maintenance and Stag field shutdown following Cyclone Narelle
HIGHER OPERATING COSTS - Co attributed increased costs to lower production and higher repair and maintenance at Stag and CWLH, as well as higher fuel costs
MALAYSIA DRILLING PROGRAM - Co said successful infill drilling offshore Malaysia increased field production over three times pre-drill rates and was delivered more than 20% below budget
Company press release: ID:nRSa4027Sa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue after hedging |
| $234 mln |
|
H1 Revenue before hedging |
| $261.1 mln |
|
H1 Net Loss |
| $4.81 mln |
|
H1 Adjusted EBITDAX |
| $101.60 mln |
|
H1 Capex |
| $34.96 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil & gas exploration and production peer group is "buy."
Wall Street's median 12-month price target for Jadestone Energy PLC is GBp70.00, about 118.8% above its August 26 closing price of GBp32.00
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 11 three months ago
Reuters Recommended Reads
Aug 25 - Woodside scraps clean energy target, posts 7% first-half profit rise
Aug 25 - Iraq's Gulf Keystone posts flat H1 revenue as higher realised price offsets production drop
Aug 26 - China's CNOOC posts record H1 profit on stronger oil, gas sales
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)