Pharos Energy (PHAR) H1 2024 earnings summary

Executive summary

• New CEO and COO appointed in July 2024, marking a refreshed leadership team focused on disciplined capital allocation and operational delivery.

• Achieved stable production and robust cash flows from core assets in Vietnam and Egypt, with a focus on maximizing shareholder returns.

• Net cash position of $17.5m at 30 June 2024, transitioning from net debt of $16.4m year-over-year.

• Commitment to sustainability and Net Zero by 2050, with an 11% reduction in emissions year-over-year.

• Group 1H 2024 production averaged 5,851 boepd, with Vietnam at 4,456 boepd and Egypt at 1,395 bopd.

Financial highlights

• Group revenue was $65.0m in 1H 2024, with a cash balance of $30.7m as of June 30, 2024.

• Net profit for 1H 2024 was $15.3m, reversing a $14.3m loss in 1H 2023.

• Operating cash flow reached $28m, with free cash flow (post-capex) at $21.1m.

• Interim dividend of 0.363 pence per share declared, a 10% increase year-over-year, with a 7% annual yield including buybacks.

• Fully debt free, having repaid all outstanding debt and RBL facilities.

Outlook and guidance

• 2024 production guidance maintained at 5,200–6,500 boepd net; Vietnam: 3,900–5,000 boepd, Egypt: 1,300–1,500 bopd.

• Drilling activity ramping up in both Vietnam and Egypt in the second half, with TGT infill drilling and CNV RFDP approval expected.

• License extensions in Vietnam and consolidation in Egypt expected to unlock further development and investment.

• Guidance for 2025 will reflect results from current drilling and capital deployment.

• Continued focus on sustainable shareholder returns, with a dividend policy of no less than 10% of operating cash flow.