Interra Resources (5GI) H2 2024 earnings summary

Executive summary

• FY2024 remained profitable: net profit was US$4.12m and profit attributable to equity holders was US$4.20m, versus US$1.12m and US$2.52m in FY2023, respectively.

• Revenue fell 10.5% YoY to US$17.12m as shareable oil production and transacted crude prices eased; lower production costs helped keep gross profit broadly stable.

• Year-end cash and cash equivalents were US$17.97m with no bank borrowings; the Board proposed a final dividend of S$0.0015 per share.

Financial highlights

• Revenue was US$17.12m, down from US$19.13m; cost of production declined 15.0% to US$10.15m and gross profit was US$6.97m versus US$7.18m.

• Net profit rose to US$4.12m from US$1.12m; excluding FY2023's US$4.88m impairment loss, the year-on-year comparison also reflects lower other income, including a US$1.71m patent-disposal gain in FY2023.

• Operating cash flow was US$2.63m, down from US$8.12m; investing cash outflow was US$1.19m versus US$4.85m, while financing cash outflow was US$0.73m versus US$0.16m.

• Total assets were US$54.23m, total liabilities US$6.44m and equity US$47.80m at year-end; cash rose to US$17.97m from US$17.26m.

Outlook and guidance

• Two Chauk development wells are planned for 2025, alongside workovers, well reactivation, additional perforation and continued waterflood activities.

• Kuala Pambuang's exploration period is expected to receive a 12-month extension, subject to final approval; the next commitment includes an exploratory well in a different closure from the first well.

• The proposed Sumatra wood-pellet plant is on hold pending a feasibility study; the 2-MW Sabah solar project remains under review.

• Crude prices are expected to face limited upside in 2025 amid weaker demand prospects and tariff-related volatility; cost discipline and prudent cash management remain priorities.