- 01FY26 revenue +3% to $44.7m; price +14%.
- 02Cash flow $15.6m pre-capex; EBITDAX $17.0m.
- 03NPAT loss $4.9m on impairments/costs.
- 04PV14 spud; gas Oct 2026; PV15 next.
Central Petroleum (ASX: CTP) lifted sales revenue in the 2026 financial year while improving operating margins and advancing a two-well drilling campaign at its Palm Valley gas field.
Sales revenue rose 3% to $44.7 million, supported by a 14% increase in the average realised gas price despite lower natural gas and oil and condensate sales volumes.
The group’s three producing gas fields generated positive net operating cash flow of $15.6m before capital expenditure and after net interest payments, while underlying EBITDAX reached $17.0m.
Central reported a statutory net loss after tax of $4.9m after recognising a $5.9m impairment charge from rationalising its exploration portfolio and $5.7m of other exploration and appraisal costs, including preparations for Palm Valley drilling.
Improved Pricing and Margins
Natural gas sales volumes declined 4% to 4,261 terajoules, while oil and condensate sales fell 51% to 14,773 barrels, but stronger pricing helped lift the operating margin excluding depreciation by 5%.
Underlying EBITDAX declined 9% from FY2025, while underlying profit after tax fell to $1.0m from $6.2m and gross profit remained broadly unchanged at $15.0m.
Central ended June with $20.4m in cash after investing $11.2m in new exploration acreage during the year.
The group also recognised a $1.5m provision after revising the allocation of fixed and contingent staff costs to operated joint ventures for FY2024 and FY2025.
Multi-Year Gas Portfolio
Central secured new multi-year gas contracts running from 2026 to 2034, increasing cash flow certainty and supporting the final investment decision for the two new Palm Valley wells.
Final repayment of overlifted gas was completed in May 2026, which Central expects to release about $7m a year in future cash flow.
The existing loan facility was increased by $15m to provide working capital for accelerated Palm Valley drilling, while the group expanded into the Cooper and onshore Otway basins through new interests.
At least three exploration wells are expected across the new east-coast acreage over the next 18 months.
Central also exited two Amadeus Basin exploration permits to reduce holding costs, and completed its first on-market share buy-back during the period.
Palm Valley Drilling
Drilling of PV14, the first well in the Palm Valley campaign, began in late July and encountered gas that was observed and flared while drilling through the target reservoir.
First gas sales remain targeted for October 2026, subject to successful completion, tie-in, commissioning, and satisfactory well performance, with sustainable production capacity to be assessed after commissioning and an initial production period.
The rig is expected to move to PV15 while PV14 is tied in, with successful completion and commissioning of both wells expected to increase available production capacity and support greater use of existing infrastructure with gross joint venture sales capacity of about 14TJ per day.
“Our operating business strengthened through the year, and we enter FY2027 with a clear path to stronger results through new Palm Valley production, lower costs, and our commercial strategy,” managing director and chief executive officer Leon Devaney said.
“With up to three exploration wells planned in our new east-coast permits in 2027, we also have strong near-term growth opportunities ahead.”
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