Etablissements Maurel & Prom (MAU) H1 2024 earnings summary

Executive summary

• Sales rose 38% year-over-year to $412 million, driven by a 16% increase in consolidated production and a 12% higher average oil sale price, with notable contributions from Venezuela.

• EBITDA increased 13% to $186 million, and net income nearly doubled to $105 million, with recurring net income at $96 million.

• Free cash flow quadrupled to $158 million, and the group moved from net debt of $120 million at year-end 2023 to a net cash position of $27 million as of June 30, 2024.

• Available liquidity reached $280 million, including an undrawn $67 million revolving credit facility.

• Significant ramp-up in Venezuelan operations, with dividends received from local ventures.

Financial highlights

• Operating income rose 35% year-over-year to $126 million.

• Earnings per share increased to $0.51 from $0.27 in H1 2023.

• Gross debt decreased to $186 million, with $31 million in repayments during the period.

• Dividends received totaled $40 million, including $29 million from Venezuela and $11 million from Seplat Energy.

• Operating cash flow rose 60% to $139 million.

Outlook and guidance

• The positive net cash position enables the group to pursue growth projects and continue shareholder returns.

• Ongoing well intervention and drilling campaigns in Venezuela are expected to support future production, with preparations underway for a drilling campaign starting 2025.