NewMed Energy (NWMD) Q2 2024 earnings summary

Executive summary

• Achieved Q2 2024 gas production of 2.8 BCM (1.1 BCF/day), with net profit of $137 million and EBITDA of $204 million, driven by increased sales to Egypt and Israel.

• Net revenues for H1 2024 rose 5.5% year-over-year to $479 million, with comprehensive income of $258 million.

• Distributed $65 million in Q2 dividends, totaling $185 million year-to-date and $910 million since Leviathan's startup.

• Leviathan expansion received preliminary approval, with FEED and procurement underway.

• Ongoing regional conflict and regulatory changes present significant risks to operations.

Financial highlights

• Q2 2024 revenues from natural gas and condensate sales reached $295.3 million, up from $250.8 million in Q2 2023.

• EBITDA for Q2 2024 was $204 million, up from $173 million in Q2 2023.

• Net profit for Q2 2024 was $137 million, up from $92.9 million in Q2 2023.

• Average gas price in Q2 2024 was $6.29/MMBtu, mainly Brent-related.

• Condensate sales began in March 2024, contributing $18 million in H1 2024.

Outlook and guidance

• Leviathan Phase 1B expansion advancing with $429 million FEED and procurement budget; FID expected H1 2025, production targeted for 2028–2029.

• Export approvals allow up to 145 BCM, with infrastructure projects and FLNG options under evaluation.

• Sales to Egypt expected to double by 2027–2028 with infrastructure upgrades.

• Exploring further opportunities in Morocco, Cyprus, and renewables, including hydrogen.