NewMed Energy (NWMD) Q1 2025 earnings summary

Executive summary

• Q1 2025 natural gas sales reached 2.9 BCM (1,156 MMcf/d), with net profit at $116.4 million, mainly due to higher sales but offset by lower realized prices and increased financial expenses.

• Revenues rose to $288 million, EBITDA was $201 million, and operating income increased to $178.2 million.

• Two $60 million dividends were approved and distributed, maintaining a stable return to shareholders.

• Significant progress on Leviathan Phase 1B, Aphrodite Field in Cyprus, and Bulgaria Han-Asparuh exploration, with export infrastructure projects advancing.

• The Swords of Iron war and regional risks continue to impact project timelines and introduce uncertainties.

Financial highlights

• Q1 2025 revenues reached $288 million, up from $263 million in Q1 2024, with EBITDA at $201 million and net profit at $116.4 million.

• Operating income increased to $178.2 million, while financial expenses rose to $31.9 million and financial income dropped to $6.2 million.

• Cost of production decreased 14.9% to $37.8 million, mainly due to lower transmission costs to Egypt and increased use of the EMG pipeline.

• Net cash from operating activities was $172.3 million, up from $136.5 million in Q1 2024.

• Total assets as of March 31, 2025, stood at $4.06 billion, with equity of $1.84 billion.

Outlook and guidance

• Targeting FID for Leviathan Phase 1B in Q3 2025, with engineering and regulatory approvals advancing.

• Third gathering line and Ashdod-Ashkelon looping projects to increase capacity, with completion targeted by early 2026.

• Exploration well in Bulgaria's Han Asparuh license planned for Q4 2025.

• The Partnership is considering various financing options to support Leviathan Phase 1B and related investments.