Carnarvon Energy (CVN) H2 2024 earnings summary

Executive summary

• Completed partial divestment of 10% Bedout Sub-basin interest to CPC for US$148m, strengthening financial position and funding for Dorado development.

• Board and management refreshed, with new CEO and directors, and a focus on cost reduction and shareholder value.

• Dorado remains the largest undeveloped liquids field in Australia; FEED re-entry targeted for late 2024, FID expected in 2025.

• Significant cost reductions achieved, with ongoing corporate and admin costs down over 40% from 2023.

• Exited biofuels joint venture, aligning strategy to core oil and gas assets.

Financial highlights

• After-tax loss of $656,000 for FY24, improved from $4,096,000 loss in FY23.

• Cash and cash equivalents at $179.6m (FY23: $95.3m); no debt.

• Interest income rose to $8.5m (FY23: $3.4m) due to higher rates and cash balance.

• Administrative and head office costs reduced to $1.9m (FY23: $2.6m).

• Exploration and evaluation asset investment of $2.4m (FY23: $12.1m), mainly for Dorado and 3D seismic.

Outlook and guidance

• Dorado Phase 1 FEED re-entry planned for late 2024; FID targeted for 2025.

• Company expects to be fully funded for Dorado development with strong balance sheet, US$90m cost carry, and potential debt facility.

• Focus on maximizing value from Bedout Sub-basin assets and further exploration.

• No new material acquisitions planned; continued cost discipline.