Jadestone Energy 2025: record output, lower costs, and a standout safety milestone
Jadestone Energy PLC has posted a strong 2025 trading update, hitting a new production record while tightening its cost base and extending an excellent safety run. Average Group production came in at 19,829 boe/d, up 6% year on year and within guidance. Total production costs fell 14% to US$243.0 million, and revenues edged up 3% to US$408.1 million despite softer oil prices.
For a year that included a disposal in Thailand, an unplanned drilling cost increase at Skua-11ST, and choppy commodity pricing, this is a tidy set of numbers. The safety performance is best-in-class: over 12 million manhours without a lost-time injury, with Akatara alone surpassing 9 million manhours since project start.
Operational highlights: Akatara outperformance and disciplined delivery
Production rose to a record 19,829 boe/d. Boe/d means barrels of oil equivalent per day, a way to combine oil, condensate, LPG and gas volumes into one comparable number. Excluding the sold Sinphuhorm interest, underlying production grew 14%, which is the more telling metric for the retained business.
Akatara in Indonesia was the standout. It averaged roughly 6,100 boe/d in 2025 with 94.4% uptime at the processing facilities, ahead of plan thanks to stable operations and throughput optimisation. That reliability fed straight into the Group record and supports the strategy to increase gas and liquids from diversified assets across Asia-Pacific.
On the safety side, Jadestone has now surpassed 12 million manhours without a lost-time injury. LTI means an incident that results in time away from work. In a sector where safety track record underpins licence to operate, this is a material de-risking point for investors.
Costs, margins and capital discipline
Total production costs came in at US$243.0 million, at the lower end of the US$240-280 million guidance and 14% below 2024’s US$282.8 million. Management credits tighter cost control and deferring some activities into 2026 to offset the unplanned increase from the Skua-11ST drilling campaign.
Capital expenditure was US$112.7 million, in line with the US$105-115 million guidance and reflecting the Skua-11ST programme. The mix here matters: keep a lid on opex while spending where it adds barrels, and you protect margins even if the oil price softens.
Revenues, pricing and hedging: steady cash generation with downside cover
Revenues, post hedging, were US$408.1 million, up 3% year on year from US$395.0 million. The average realised oil price fell 13% to US$74.42/bbl, reflecting Brent at US$71.25/bbl and an average premium of US$3.17/bbl. Condensate and LPG from Akatara realised US$45.89/boe, while Group gas fetched US$5.83/mcf, up from US$3.91/mcf with a full period of Akatara gas sales. Mcf means thousand cubic feet.
Hedging is in place for stability. Around 1.7 million barrels of oil and condensate are hedged over the nine months to 30 September 2026 at an average Brent price of US$67.48/bbl, covering roughly 42% of forecast oil and condensate for that period. Hedging means locking in pricing to reduce cash flow volatility. It is sensible risk management, though it can cap upside if Brent rallies.
Balance sheet, inventory and working capital
Net debt fell 15% to US$89.0 million at year end, comprising US$61.0 million of cash, including restricted, and US$150.0 million of debt. The US$30.0 million working capital facility was undrawn, and US$23.7 million of December lifting proceeds were received in early 2026 and not included in the year-end net debt figure.
Crude inventory stood at 284,145 bbls, and net underlift was 442,648 bbls. Underlift arises when the company has taken less than its share of production from a field, creating a future claim on barrels to be lifted. Timing of liftings, receipts and scheduled debt repayments will continue to drive near-term liquidity swings.
Separately, Jadestone expects a non-cash impairment in the 2025 accounts due to a reduced oil price outlook versus 2024. Impairment is an accounting reset of asset values based on forward pricing and does not affect cash flow in the period.
Portfolio moves: Thailand exit profit and growth options
Jadestone generated a profit of US$17.2 million on the disposal of its Thailand interests in April 2025. For context, the original acquisition price was US$27.8 million. The exit simplifies the portfolio and helped concentrate on higher-impact assets like Akatara and Malaysia.
The growth pipeline looks busy. In Vietnam, the Field Development Plan for the Nam Du/U Minh gas discoveries has been approved by Petrovietnam and is in the final stages of government approval, with gas sales agreement negotiations at an advanced stage. In Malaysia, an infill drilling campaign will begin in the coming months on the back of the successful 2023 PM323 programme.
Management will publish 2026 guidance alongside the end-2025 reserves update at the end of February 2026. That will be the next key catalyst for estimates and valuation.
What this means for investors
- Positive operational momentum: Record 19,829 boe/d and 14% underlying growth show the core portfolio is working. Akatara’s 94.4% uptime is a reliability anchor.
- Costs heading the right way: A 14% cut in total production costs to US$243.0 million supports margins and cushions lower oil prices.
- Resilient cash profile: Revenues up 3% to US$408.1 million despite a 13% drop in realised oil price, improved gas realisations, and hedging at US$67.48/bbl for roughly 42% of near-term liquids.
- Balance sheet progress: Net debt reduced to US$89.0 million, undrawn US$30.0 million facility, and additional December proceeds received in early 2026 provide near-term flexibility.
- Growth catalysts: Nam Du/U Minh approvals and a Malaysian infill drill campaign could add volumes and visibility. Watch for the reserves and guidance update later this month.
Watch-outs to keep in mind
- Price sensitivity remains: Realised oil price fell to US$74.42/bbl. The expected non-cash impairment underlines the lower oil price outlook vs 2024.
- Capex and timing: 2025 capex rose to US$112.7 million, and some activities were deferred into 2026. Delivery timing will matter for cash flow.
- Hedge trade-off: Downside protection is welcome, but hedges at US$67.48/bbl limit upside if Brent strengthens.
Key 2025 numbers at a glance
| Metric | 2025 | 2024 |
|---|---|---|
| Group production, boe/d | 19,829 | 18,696 |
| Liftings – oil, condensate and LPGs, MMbbls | 5.3 | 4.9 |
| Liftings – gas, Bcf | 7.1 | 2.2 |
| Average oil price realised, US$/bbl | 74.42 | 85.21 |
| Average gas price realised, US$/mcf | 5.83 | 3.91 |
| Revenues (post hedging), US$ million | 408.1 | 395.0 |
| Total production costs, US$ million | 243.0 | 282.8 |
| Capital expenditure, US$ million | 112.7 | 74.5 |
| Net debt at year end, US$ million | 89.0 | 104.8 |
| Crude inventory, bbls | 284,145 | 324,850 |
| Net underlift, bbls | 442,648 | 396,401 |
My take
This is a confident return to form. Jadestone balanced growth and discipline in 2025: record production, lower costs, and a cleaner balance sheet, all while building optionality in Vietnam and Malaysia. The expected non-cash impairment is an accounting reality of a lower oil strip, not a signal of operational weakness.
The near-term watchlist is clear. Confirm Nam Du/U Minh approvals and a gas sales agreement, deliver the Malaysia infill programme, and set out 2026 guidance with the reserves update at the end of February. Do that, and the combination of resilient cash generation, improving gas exposure, and a strong safety culture should keep the momentum going.
