Jadestone Enjoys Bumper Year in 2019

Singapore-based Jadestone Energy moved back into the black in 2019, thanks to a near threefold increase in revenues, it reported on April 23.

Revenues came to a record $325.4mn, versus $113.4mn in 2018, resulting in a surge in core earnings (Ebitdax) to $187.5mn from just $10.2mn. Post-tax income reached an all-time high of $40.5mn, marking a reversal from a $21.5mn loss a year earlier.

Jadestone benefited from a threefold growth in oil sales, due to the takeover of the Montara assets in the Timor Sea off northern Australia in September 2018. Its overall production averaged 13,530 boe/d in 2019, up from 4,060 boe/d during the previous year. The company also gained from 20% lower operating costs at $22.85/boe.

"Jadestone has acted quickly in response to the challenges imposed by the Covid-19 pandemic and put in place comprehensive procedures to ensure our operations remain unaffected, and can continue safely and efficiently," CEO Paul Blakeley said.

Jadestone recently cut its capital spending programme for 2020 by 80%, and also deferred plans to develop a pair of gas fields off Vietnam. It has lowered its operating cashflow breakeven oil price to $20/b this year, and the company held $120mn in gross cash at the end of March, with only $37mn of outstanding debt.

"Due to its financial strength, the company will pay its first dividend later this year as promised, will continue to work towards closing the Maari acquisition later in the second half of the year, and will also remain opportunistic for inorganic growth should the right opportunities emerge," Blakeley said.

Jadestone agreed to buy the Maari oilfield off New Zealand from Austria's OMV in November. In addition to Australia, New Zealand and Vietnam, the company also operates in Indonesia, Malaysia and the Philippines.