Oil and gas group flags impairment charges and softer pricing after full-year update
Jadestone Energy PLC shares fell 10.5% to 22.74p on Tuesday after the Asia-Pacific-focused oil and gas company posted a trading update showing record annual production and improved cost discipline.
In the update, it also flagged an expected non-cash impairment and lower average realised prices.
The group produced 19,829 barrels of oil equivalent per day in 2025, a 6% increase on the previous year and in line with guidance.
Underlying output from continuing operations rose 14%, with stronger-than-expected performance at the Akatara gas project in Indonesia, which contributed around 6,100 boe/d.
Despite higher volumes, total production costs fell 14% to $243 million as Jadestone reined in spending and deferred activity to offset unplanned capital outlay on its Skua-11ST drilling campaign. Capital expenditure for the year came in at $112.7 million.
Full-year revenue rose 3% to $408.1 million, though average oil realisations dropped 13% to $74.42 per barrel, reflecting a weaker Brent benchmark and lower sales premiums. Average gas prices rose to $5.83 per mcf, benefiting from a full year of Akatara output.
Net debt fell to $89 million from $104.8 million in 2024, with the group reporting undrawn access to a $30 million working capital facility. Jadestone has hedged around 42% of its forecast oil and condensate output to the end of September 2026 at an average Brent price of $67.48.
The company confirmed it expects to record a non-cash impairment due to the lower oil price outlook and will provide 2026 guidance alongside its reserves update later this month.
Chief executive Mitch Little said the group had made “significant operational and financial progress” and remains focused on growth projects in Vietnam and Malaysia.