Atlantic Petroleum (ATLA DKK) Q3 2024 earnings summary

Executive summary

• Production rates for 2024 were 2,900–3,400 barrels/day, providing steady cash flow and meeting expectations; Orlando field expected to continue stable production into 2025.

• Net loss for the first nine months of 2024 was DKK 0.8MM, with operating profit at DKK 2.1MM and G&A costs minimized to DKK 1.7MM.

• Net assets/shareholders' equity stood at DKK -115.3MM, and bank debt was DKK 59.4MM as of September 30, 2024.

• The board is prioritizing debt reduction negotiations, with a deadline set for 2024; failure to achieve a solution threatens going concern status.

Financial highlights

• Revenue for the period was DKK 0; all gross profit and EBITDAX derived from deferred consideration on Orlando field.

• EBITDAX and operating profit for the nine months were DKK 2.1MM; profit before tax was DKK -0.8MM.

• Cash provided by operating activities was DKK 140,000; cash and cash equivalents at period end were DKK 8,000.

• Earnings per share (basic and diluted) for the nine months was DKK -0.21.

Outlook and guidance

• Orlando field production is expected to remain stable into 2025, but current reserves and production profile make it unlikely that revenue share will cover total debt.

• The board will seek a significant debt reduction agreement in 2024; if unsuccessful, the company may not continue as a going concern.

• Pending a debt solution, the group will pursue growth through participation in production or near-production assets in low political risk countries in the Northern Hemisphere.