Loss-Making NuEnergy Gas Limited (ASX:NGY) Set To Breakeven

With the business potentially at an important milestone, we thought we'd take a closer look at NuEnergy Gas Limited's (ASX:NGY) future prospects. NuEnergy Gas Limited, an independent clean energy company, engages in the exploration, appraisal, and development of coal bed methane gas projects in Indonesia. On 30 June 2025, the AU$55m market-cap company posted a loss of AU$941k for its most recent financial year. As path to profitability is the topic on NuEnergy Gas' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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According to some industry analysts covering NuEnergy Gas, breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of AU$1.1m in 2026. The company is therefore projected to breakeven around a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 101% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for NuEnergy Gas given that this is a high-level summary, but, take into account that by and large energy companies, depending on the stage of operation and resource produced, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

See our latest analysis for NuEnergy Gas

One thing we’d like to point out is that NuEnergy Gas has no debt on its balance sheet, which is rare for a loss-making oil and gas company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

This article is not intended to be a comprehensive analysis on NuEnergy Gas, so if you are interested in understanding the company at a deeper level, take a look at NuEnergy Gas' company page on Simply Wall St. We've also put together a list of relevant aspects you should look at:

1. Historical Track Record: What has NuEnergy Gas' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on NuEnergy Gas' board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.