Horizon Oil (HZN) H1 2025 earnings summary

Executive summary

• Achieved 11% increase in production and sales volumes to nearly 840,000 boe, driven by the Mereenie acquisition, despite a 16% revenue decrease to US$55.9 million due to lower oil prices.

• Statutory profit after tax was US$6.6 million for HY25, with net cash of US$22.5 million at period end.

• Maintained strong free cash flow and robust balance sheet, supporting consistent shareholder distributions and ongoing investment in production growth.

• Continued focus on ESG, with declining lost time injuries, safety metrics better than industry benchmarks, and new carbon removal initiatives underway.

• Interim unfranked dividend of AUD 1.5 cents per share declared, to be paid in April 2025; cumulative distributions exceed AUD 224 million since 2021.

Financial highlights

• Sales volumes for HY25 were 0.85 million boe produced and 0.84 million boe sold, with revenue of US$55.9 million and average realised oil price of US$78.66/bbl.

• EBITDAX was US$29.4 million, and cash flow from operating activities was US$18.3 million.

• Cash reserves stood at US$47.3 million, with a net cash position of US$22.5 million at 31 December 2024.

• Free cash flow for CY24 was US$39.2 million, 10% above the five-year average.

• Cash operating costs remained below US$25/boe, with Block 22/12 at US$21/bbl and Maari at US$26/bbl.

Outlook and guidance

• Production base expected to be sustained at 4,000-5,000 boe/day for the next four years, with stable output from all three assets through 2030.

• Block 22/12 water handling upgrade to boost production from early 2026; further infill drilling planned.

• Maari license extension application under review, with production reaching multi-year highs after workovers.

• Mereenie gas sales underpinned by long-term contracts to 2030, with new wells increasing production by over 15%.

• Continued focus on identifying new business opportunities and production optimisation.