Key Highlights

  • Revenue was $50.3 million, down 8% on FY25, reflecting a 7% decline in production to 560 mboe and the timing of Maari oil liftings.
  • Underlying EBITDAX was $28.5 million, down 6% on FY25, with profit before tax of $17.9 million excluding one-off impairment, asset write-offs and Takeover defence costs.
  • A final Dividend of 0.25 cents per share was declared, the sixth consecutive dividend under Cue's policy, bringing cumulative cash returned to shareholders since 2024 to $35 million.
  • $20 million in net Operating Cash Flow was generated, with closing cash of $15.7 million and no debt.

Cue Energy Resources Limited (ASX:CUE) share price was trading at $0.12, up 4.35% or $0.0050 on the day, as at 27 August 2026, 11:39am AEST, as the company released its FY26 full year results. Total Revenue was $50.3 million, down 8% on FY25's $54.8 million, generated from net production of 560 mboe, down 7% on FY25's 602 mboe. The company said the decline in production primarily reflected natural field decline at the mature Sampang assets, while lower revenue also reflected the timing of Maari oil liftings.

The PB oilfield in the Mahato PSC generated $23.8 million in revenue for FY26, slightly above FY25, while Maari revenue decreased to $9.3 million due to the timing of oil liftings. Cue's onshore Australian assets, comprising Mereenie, Palm Valley and Dingo, contributed a combined $13.2 million in revenue, up 5% year-on-year, supported by increased contract prices. Oil sales continued to achieve Brent-related pricing and represented 67% of FY26 revenue.

Earnings Impacted by One-Off Items

Underlying EBITDAX was $28.5 million, down 6% on FY25's $30.3 million. Reported profit before tax was $7.3 million, down from $19.7 million in FY25, and profit after tax was $4.4 million, down from $6.3 million. The reduction compared with FY25 was primarily driven by one-off items, including a $4.4 million non-cash impairment, $4.2 million of development Assets written off, and $1.9 million of takeover defence costs associated with the completed Horizon Oil takeover offer.

Excluding these one-off items, profit before tax was $17.9 million, 9% lower than FY25, while profit after tax excluding one-off items was $10 million, 59% higher than FY25's $6.3 million, reflecting the different tax treatment of the underlying operating result versus the one-off charges.

Sixth Consecutive Dividend Declared

CEO Matthew Boyall said Cue delivered another year of cash generation, with $20 million in net operating cash flow and a year-end cash balance of $15.7 million, with no debt, enabling continued dividend payments while maintaining financial capacity to fund growth projects. The Board declared a final dividend of $0.0025, or 0.25 cents per share, equivalent to approximately $1.75 million, declared as Conduit Foreign Income and unfranked.

Including the $1.75 million interim dividend, Cue declared $3.5 million, or 0.5 cents per share, in dividends for FY26, marking the sixth consecutive dividend under the company's policy introduced in 2024 and taking total cash returned to shareholders since 2024 to $35 million. The Record Date for the dividend is 2 October 2026, with payment scheduled for 15 October 2026.

Active Drilling Program Underway

Cue entered FY27 with an active work program across its core assets, with drilling underway at Palm Valley and Mahato and five wells planned for the first half of FY27. At Palm Valley, PV14 drilling commenced in July, to be followed by PV15, a program the company said has the potential to more than double current field production and, if successful, support contracted gas sales to the Northern Territory Government through to 2034.

At Mahato, the current two-well Bekasap drilling program is targeting additional production from the PB field, with PB-41 completed and PB-42 currently drilling, while preparations for the high-impact GA-1 exploration well are progressing, expected to commence within months. OPL-3, the next phase of development of the PB oilfield, is expected to be approved and commence in the next quarter.

FY27 Outlook Across Core Assets

Mr Boyall said the company enters FY27 with a strong Balance Sheet and an active Investment program, with near-term drilling focused on Palm Valley and Mahato and further development opportunities being matured at Mereenie and Maari. At Mereenie, the Joint Venture continues to evaluate future infill drilling opportunities, with the company's FY26 reserves and resources review identifying a new stacked-reservoir opportunity in the Mereenie Footwall.

The Grati gas processing plant onshore compression in the Sampang PSC has been installed and is in the commissioning phase to support production and recovery from the mature Oyong and Wortel fields. Consistent with its previously announced strategy, Cue expects to exit the Sampang PSC when the permit expires in December 2027, with the company describing itself as well positioned, supported by a diversified production base and a refreshed Board following completion of the Horizon Oil takeover offer, to pursue disciplined growth.

Conclusion

Cue Energy Resources' FY26 results reflect a modest decline in revenue and production driven by natural field decline and the timing of oil liftings, alongside one-off costs including takeover defence expenses related to the completed Horizon Oil offer. Despite these headwinds, the company maintained its dividend policy for a sixth consecutive period and retained a debt-free balance sheet with $15.7 million in cash, positioning it to fund an active drilling program across Palm Valley, Mahato and other core assets, with the potential Palm Valley production increase representing a key catalyst for the company's FY27 performance.