Interoil Exploration and Production (IOX) Q2 2024 earnings summary

Executive summary

• Net production for H1 2024 reached 100,334 boe, up from 54,310 boe in H1 2023, driven by a 43% stake acquisition in Santa Cruz, Argentina.

• Revenues for H1 2024 were USD 10.6 million, a significant increase from USD 3.4 million in H1 2023.

• EBITDA for H1 2024 was USD -0.8 million, compared to USD -0.1 million in H1 2023.

• Harsh winter in Argentina impacted production, with roadblocks and postponed operations in Santa Cruz fields.

• New commercial agreement in Argentina provides higher crude prices and reduced freight costs.

Financial highlights

• Gross profit for H1 2024 was USD 2.5 million, down from USD 2.7 million in H1 2023.

• Net loss for H1 2024 was USD 5.1 million, compared to a net loss of USD 3.9 million in H1 2023.

• Cash and cash equivalents (non-restricted) increased to USD 4.2 million as of June 30, 2024, from USD 1.2 million at year-end 2023.

• Total assets rose to USD 49.1 million as of June 30, 2024, from USD 45.4 million at December 31, 2023.

• Net cash generated from operations in H1 2024 was USD 2.1 million, compared to a net outflow of USD 4.1 million in H1 2023.

Outlook and guidance

• Focus on recovering production in Argentina and Colombia, with investments to maximize benefits from higher gas prices.

• Incremental gas produced in Santa Cruz, Argentina, is being paid at prices three times prior levels.

• Actions underway to resume and increase production in fields previously suspended.