Karoon Energy (KAR) H2 2024 earnings summary

Executive summary

• Annual production reached a record 10.4 MMboe, up 13% year-over-year, though below original guidance due to operational challenges at Baúna and Who Dat.

• Sales revenue rose 14% to US$776.5 million, with underlying EBITDAX of US$492.4 million (+13%) and underlying NPAT of US$214 million (+3%).

• Statutory NPAT fell 39% to US$127.5 million due to non-cash deferred tax adjustments and unsuccessful exploration costs.

• Strategic focus remains on disciplined capital allocation, maximizing value from Baúna and Who Dat, progressing Neon, and enhancing safety and reliability.

• Expanded social and climate programs, aligning Net Zero target to 2050 and increasing voluntary social project investment.

Financial highlights

• Revenue increased to US$776.5 million from US$680 million in 2023, driven by higher production volumes.

• Underlying EBITDAX rose 13% to US$492.4 million, with a stable margin of 64% year-over-year.

• Operating cash flow was US$434.6 million, down 2% year-over-year, mainly due to lower Baúna output and higher finance costs.

• Net debt reduced to US$8.8 million from US$103.7 million at end-2023; liquidity stood at US$681 million.

• Free cash flow from operations was US$176.6 million, fully funding capex, Petrobras payment, and capital returns.

Outlook and guidance

• 2025 guidance remains unchanged, with updates expected after Baúna FPSO transaction closes in Q2 2025.

• Targeting total 2025 production of 9.0–10.5 MMboe, with unit production costs forecast at US$12.5–17.5/boe.

• Neon project decision to move into FEED due in April 2025; farm down process planned for H2 2025.

• Who Dat sidetrack drilling planned for H2 2025 and early 2026, with FID on new discoveries expected by early 2026.

• Planned capex for 2025 includes US$99–117 million, with additional contingent consideration to Petrobras.