October 23, 2025
Oil’s well for Karoon
Karoon Energy jumped nearly 10% as rising oil prices drove a quarterly revenue boost while Fortescue posted another new record. Here's the news you need to know.
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Market Snapshot
The ASX 200 edged up 0.03% to 9,033 as a powerful energy rally offset weakness in tech, materials and gold miners.
Energy stocks were the clear winners, surging 3.2% after the U.S. imposed sanctions on Russia’s two biggest oil producers, sending Brent crude past US$64 a barrel.
In contrast, tech stocks tracked Wall Street lower after a sell-off in U.S. megacaps, with WiseTech, Xero and Block all down between 1.5% and 2.5%. Materials slipped as BHP fell, offsetting a gain in Fortescue, which posted record quarterly shipments.
Meanwhile, gold miners retreated as bullion extended its pullback from record highs, though Northern Star and Regis Resources found support after upbeat production updates.
Elsewhere, insurance stocks climbed after IAG upgraded FY26 guidance following the completion of its RACQ Insurance acquisition, while retailers lagged, with Super Retail Group down on softer sales growth.
Karoon Rides the Oil Wave
The result:
Oil prices might be volatile but for Karoon Energy they’re proving a welcome tailwind. The stock jumped 9.4% today, leading the ASX 200, after the company delivered a 3% revenue lift to US$164 million (A$253 million) despite lower production. Output fell 12% to 2.59 million barrels of oil equivalent but higher realised oil prices helped fill the gap.
Why it matters:
The quarter was far from smooth – two wells at Karoon’s Baúna project in Brazil were offline and its Who Dat facility (yup, we made sure the name was right) in the Gulf of Mexico was shut for maintenance. Even so, rising oil prices kept revenue flowing and confidence intact. The company trimmed its full-year output range slightly but management struck an upbeat tone saying it remains on track barring major hurricane disruptions.
What's next:
Investors are betting the momentum holds through the final quarter. If production stabilises and prices stay elevated, Karoon could keep making waves well into next year.
Fortescue’s Iron Resolve After a Record Quarter
The result:
Fortescue kicked off the new financial year with a flying start, notching record Q1 iron ore shipments of 49.7 million tonnes, up 4% from last year. Mining volumes climbed 5% to 60.1 million tonnes, while unit costs dropped 10% to US$18.17 a tonne, cementing its place among the world’s most efficient producers.
Why it matters:
At a time when demand from China is soft and prices have been under pressure, Fortescue’s ability to post record volumes shows just how tight its operations have become. CEO Dino Otranto said the quarter hit “critical milestones,” including a Renminbi-denominated loan deal and progress on a life-of-mine plan to squeeze more out of every tonne of ore. The company continues to prove that even in a challenging market, efficiency can be its own form of growth.
What’s next:
The next test will be whether Fortescue can keep margins this strong as it juggles its iron ore core with its push into green energy projects – a balancing act investors are watching closely.
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