NewMed Energy (NWMD) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 gas production of nearly 1.2 BCF/day (3.1 BCM), with EBITDA of $221 million and net profit of $147 million, up 25% year-over-year.

• Distributed $65 million in dividends for the quarter, with cumulative distributions nearing $1 billion since Leviathan's start.

• Net revenues for the nine months ended 30 September 2024 rose 6.9% year-over-year to $746 million, driven by higher gas production and prices.

• The Iron Swords War escalated, causing operational delays, higher insurance and contractor costs, and suspension of the Third Pipeline Project, but did not materially impact gas sales or financial results as of the report date.

• Continued deleveraging and prepared for a new investment cycle, including significant bond buybacks and new credit facilities.

Financial highlights

• Q3 2024 net profit was $147 million, a 25% increase from Q3 2023, with EBITDA at $221 million and revenues at $313.6 million.

• Sales volume for Q3 was 3.1 BCM, with average realized gas price at $6.18/mmbtu.

• Condensate sales contributed $4.7 million, starting in March 2024.

• Operating expenses rose, mainly due to higher transport, maintenance, insurance, and subcontractor costs.

• Financial expenses decreased, while financial income increased due to royalty revaluations.

Outlook and guidance

• On track to meet full-year sales targets for 2024, with domestic and export demand forecast to grow.

• Leviathan Phase 1B FEED and procurement underway, with FID targeted for H1 2025 and first gas expected between mid-2028 and mid-2029.

• The Third Pipeline Project is delayed at least six months due to the war, with completion now expected by end-2025.

• The Aphrodite reservoir development plan is under review by the Cypriot government, with approval and FID timing uncertain.

• Regional connectivity and infrastructure projects are scheduled through 2028 to enhance export capacity.