Jadestone shares tumble as it cuts cash flow, capex guidances
Jadestone Energy PLC on Thursday lowered its free cash flow guidance for the period until 2027, as lower oil prices and planned downtime at its oil fields in Australia bogged forecasts down and capped production estimates.
The Singapore-based oil and gas company said it now expects free cash flow between $200 million and $240 million for the 2025 to 2027 period, down from a previous guidance of $270 million, as it is now based on a Brent price of $70 per barrel.
It also said that every $10 move in Brent price will affect the guidance by $90 million, starting from the 2025 results where it will record a non-cash impairment of said amount in its year-end accounts.
Additionally, Jadestone expects to spend between $50 million and $80 million in capital expenditures in 2026, essentially halving both its previous-year spending of $112.7 million and the previous guidance set between $105 million and $115 million.
Two-thirds of that expenditures will be directed towards development activities in Malaysia, while a further 15% will be spent at its Australia Cossack-Wanaea-Lambert-Hermes fields.
That field will also experience a planned downtime of 55 days this year, which once coupled with other infills deferred due to price volatility forced an expected output between 18,000 and 21,000 barrels of oil equivalent per day.
Jadestone said earlier this month it produced an average of 19,829 boe per day in 2025, a record for the group and a 6% growth from 18,696 the previous year. It was previously targeting a production between 19,500 and 21,500 boe per day.
Additionally, subsea maintenance programs, logistic contract renewals and the five-yearly dry-docking of its offshore vessel in Australia, along with cost deferred from 2025, will see 2026 marking ‘a near-term peak’ in total production costs between $260 million and $300 million.
The lowered guidances weighed on Jadestone shares, which closed down 10.3% to 22.65 pence each on Thursday in London.
Chief Executive Officer Thomas Mitchell Little said: ‘It remains...our strategic objective of being the leading independent Asia-Pacific upstream company. The next major catalyst in our growth story is the upcoming field development approval for our Vietnam gas development. This will be a meaningful milestone, allowing us to book the project’s reserves and expedite discussions with potential partners.’
‘We remain committed to both operational and financial discipline as we seek to create value for our shareholders...We are making good progress towards refinancing our reserves-based lending facility, which will allow us to prioritize Jadestone’s cash flow generation for growth. We are also actively reviewing options to crystallize the value in our existing asset base, as well as potential inorganic growth opportunities,’ he added.
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