Jadestone Energy (LSE:JSE) has temporarily halted production at its Stag oil field offshore Australia following damage caused by Cyclone Narelle, a Category 5 storm that affected the platform and its offloading systems. Ahead of the cyclone’s arrival, the company safely demobilised the platform and cleared export pipelines of hydrocarbons as a precaution. Jadestone also confirmed that the storm did not result in any hydrocarbon release into the environment.
Technical teams are now assessing the extent of the damage and preparing repair plans along with a schedule for restarting operations. Before the shutdown, the field had been producing roughly 2,000 barrels of oil per day. The company said it holds insurance covering both physical damage and production losses and expects the interruption to have only a limited financial impact, with no material change anticipated to its full-year or longer-term cash flow forecasts.
The company’s outlook remains weighed down by weak financial fundamentals, including declining revenue, negative profitability, elevated leverage and negative cash flow. Technical indicators present a mixed picture but lean slightly negative, with the share price trading below short-term averages and an RSI around 40. Valuation metrics provide some support due to a relatively low price-to-earnings ratio.
More about Jadestone Energy
Jadestone Energy Inc is an independent upstream oil and gas producer focused on the Asia-Pacific region. The company holds a diversified portfolio of producing and development assets across Australia, Malaysia, Indonesia and Vietnam. Headquartered in Singapore and listed on London’s AIM market, Jadestone pursues growth through both organic developments and acquisitions while also positioning for the energy transition through increased natural gas production and a target of achieving net-zero Scope 1 and 2 emissions from operated assets by 2040.
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