Jadestone Energy’s 2025 full-year results are a classic case of strong operations colliding with ugly accounting. The business delivered record production, lower costs and much better cash generation, but still reported a statutory loss after tax of US$110.7 million because of a big non-cash impairment charge.
For retail investors, that means two things can be true at once. The core business improved in 2025, but the balance sheet still looks bruised and 2026 has started with some genuine operational headaches, especially at Stag and CWLH.
Jadestone Energy 2025 results: the key numbers investors need to know
| Metric | 2025 | 2024 |
|---|---|---|
| Production | 19,829 boe/d | 18,696 boe/d |
| Revenue | US$408.1 million | US$395.0 million |
| Production costs | US$232.7 million | US$286.9 million |
| Adjusted unit operating cost | US$28.02/boe | US$35.28/boe |
| Adjusted EBITDAX | US$153.0 million | US$127.9 million |
| Operating cash flow before working capital | US$123.6 million | US$70.5 million |
| Loss after tax | US$110.7 million | US$44.1 million loss |
| Net debt at 31 December | US$89.1 million | US$104.8 million |
Record Jadestone production and lower costs show the base business improved
The operational performance was clearly better. Production rose 6% to a record 19,829 boe/d, with Akatara in Indonesia doing a lot of the heavy lifting in its first full year of production.
Just as important, costs moved in the right direction. Production costs fell 19% to US$232.7 million, while adjusted unit operating costs dropped 21% to US$28.02 per barrel of oil equivalent, or boe. That is a proper improvement, not a rounding error.
Revenue only rose 3% to US$408.1 million, which tells you the oil price backdrop was not especially helpful. Jadestone’s realised oil price fell to US$74.42 per barrel from US$85.21, so the company had to work harder operationally to stand still on revenue.
The encouraging bit is cash. Operating cash flow before working capital jumped 75% to US$123.6 million, which is a much better reflection of how the underlying assets performed than the bottom-line loss.
Why Jadestone Energy still made a US$110.7 million loss in 2025
The headline loss was mainly driven by a post-tax impairment of US$88.2 million. In plain English, Jadestone has reduced the accounting value of some assets because expected future cash flows do not justify carrying them at previous values.
The pre-tax impairment was US$126.0 million, split between Stag at US$64.8 million and Montara at US$61.2 million. This is non-cash, so it does not mean that money left the bank account in 2025. But it does matter, because impairments are management admitting those assets are worth less than previously thought.
That is the main negative in this results set. Investors can shrug off a non-cash charge once, but repeated write-downs tend to chip away at confidence in asset quality and long-term value.
There is another balance sheet point worth noting. Total equity at 31 December 2025 was negative US$78.9 million, compared with positive equity of US$18.8 million a year earlier. Jadestone also says it remains a going concern, but that negative equity figure shows why balance sheet repair matters.
Jadestone refinancing with a US$200 million bond removes pressure, but it is expensive debt
The biggest strategic move since year-end is the March 2026 Nordic bond issue. Jadestone raised US$200.0 million with a 2031 maturity and a 12% coupon, with proceeds intended to repay the remaining US$122.0 million reserve-based lending facility and support general corporate purposes.
This is good news in one obvious sense. It pushes debt maturities further out and removes near-term repayment pressure, which is exactly what a company wants after a year of losses and operational disruption.
But let’s not kid ourselves, 12% is a punchy coupon. The market was willing to fund Jadestone, which is positive, yet it demanded a high price for that support. So the refinancing improves flexibility, but it is not cheap money.
Still, the near-term debt picture has improved sharply. Net debt at 30 April 2026 was approximately US$5 million, made up of US$117.4 million of cash, including restricted cash, and US$122.0 million of outstanding debt on the RBL facility.
Vietnam reserves growth and Nam Du/U Minh approval could change the story
The best growth news here is Vietnam. Jadestone received government approval in March 2026 for the Nam Du/U Minh field development plan, which allowed it to book approximately 32 MMboe of initial 2P reserves.
That matters because year-end 2025 2P reserves had dropped to 56.2 MMboe from 68.3 MMboe. On the face of it that looks weak, but the later Vietnam booking materially improves the reserves picture.
The gas sales and purchase agreement was signed in April 2026, and the farm-out process has begun. A farm-out means Jadestone is trying to bring in one or more partners to share development costs and risk. For me, this is one of the most important pieces in the whole announcement, because Vietnam looks like the clearest route to future value creation without overstretching the balance sheet.
Stag cyclone damage and CWLH restart delays are the main 2026 operational risks
Now for the messier part. Production in 2026 to the end of April averaged roughly 16,300 boe/d, well below 2025 levels, mainly because of planned downtime at CWLH and unplanned downtime at Stag.
Stag remains shut in after Cyclone Narelle damaged the CALM buoy, which is used to offload crude. Current expectations are for a return to production in the fourth quarter of 2026, and the group says it has insurance for both physical damage and business interruption.
At CWLH, the Okha FPSO has returned from dry-dock, but subsea inspections found that minor structural repairs may be needed before reconnection. Production could restart as early as end-May, or, if repairs are needed, within 5-8 weeks.
That means 2026 guidance has been left unchanged at 18,000 to 21,000 boe/d, but management admits the lower half of that range is currently the most likely outcome. That feels sensible rather than optimistic.
What Jadestone Energy shareholders should take from these full-year results
My read is that this is a mixed update leaning cautiously positive on operations, but still clearly risky on asset quality and execution. The company proved in 2025 that it can produce more, spend less and turn that into much better cash flow. That is the bit bulls will focus on, and with good reason.
The bears will point to the impairment, negative equity, expensive debt and the fact that two Australian assets have already caused trouble early in 2026. They are not wrong either. This is not a tidy, low-risk income story.
If you strip it back, the investment case now hangs on three things. First, getting Stag and CWLH back properly. Second, turning Vietnam into a funded development rather than just a promising plan. Third, using stronger cash generation to rebuild confidence in the balance sheet.
So, there is progress here, definitely. But Jadestone still has quite a bit to prove before the market can treat this as a straightforward turnaround.
