Amplitude Energy Limited – 2024 Half-Year Financial Summary
Website: Amplitude Energy Limited
Overall Report Tone
Amplitude Energy Limited has delivered a strong operational and financial recovery, marked by record gas production and significantly improved profitability. Revenue and EBITDA showed robust growth, supported by higher realised gas prices and efficiency improvements at its key assets. While challenges such as declining oil production and cost pressures remain, the company has strengthened its financial position with higher liquidity and extended debt facilities.
Financial Results (A$ million)
| Metric | H1 FY25 | H1 FY24 | % Change |
|---|---|---|---|
| Revenue | 133.7 | 105.9 | +26% |
| Adjusted EBITDA | 93.2 | 60.9 | +53% |
| Operating Cash Flow | 45.4 | 21.1 | +115% |
| Adjusted EBT | 17.0 | 1.1 | N/M |
| Normalised EPS (cents) | 0.3 | (3.4) | N/M |
| Dividend | None | None | N/A |
Key Insights and New Announcements
Positive Surprises & Strengths
- Record gas production of 73.5 TJe/d (up 21% YoY), driven by efficiency gains at Orbost Gas Processing Plant (OGPP).
- Significant EBITDAX growth (+53%), supported by higher realised gas prices ($9.69/GJ vs. $8.44/GJ in H1 FY24).
- Debt facility increased by $80M to $480M, extending maturity to 2029, enhancing funding flexibility.
- Operating cash flow more than doubled (+115%), providing strong support for growth investments.
Potential Concerns & Risks
- Oil production declined (-24%) due to natural field depletion in the Cooper Basin.
- Cost pressures rising, with increased production expenses and waste disposal costs impacting margins.
- Net debt increased slightly to $254.1M, though leverage remains manageable.
- Uncertainty surrounding East Coast Supply Project (ECSP), as negotiations with O.G. Energy are ongoing.
Result vs. Market Expectations
- Revenue and EBITDAX exceeded expectations, benefiting from higher gas volumes and pricing.
- Cash flow performance was stronger than anticipated, de-risking funding for ECSP.
- No dividend declared, in line with expectations as the company prioritises growth investments.
- Slightly weaker oil sales and production volumes may temper some analyst optimism.
Outlook & Guidance
- FY25 production guidance increased from 62-69 TJe/d to 65-72 TJe/d, reflecting stronger OGPP performance.
- ECSP remains a key growth catalyst, with drilling phase sanction expected in FY25 and first gas targeted for 2028.
- Cost reduction program targeting $12M in savings, focusing on operational efficiencies and gas marketing strategies.
- Continued focus on funding flexibility, with potential customer prepayments to support ECSP development.
Analyst Positioning
Based on provided estimates:
- Revenue (FY25: $265.09M, FY26: $299.88M) → Given H1 revenue of $133.7M, a mild upward revision for FY25 is possible, contingent on sustained gas production and pricing trends.
- EBITDA (FY25: $168.84M, FY26: $209.08M) → H1 EBITDA of $93.2M suggests FY25 estimates are reasonable, with potential for modest upward adjustments if operating improvements persist.
- Key Analyst Considerations:
- Improved cash generation may lead to higher margin assumptions.
- ECSP progress and funding clarity will be crucial for FY26 estimates.
Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.
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