Rex (5WH) H1 2024 earnings summary

Executive summary

• H1 FY2024 revenue rose 48.4% YoY to US$158.67m from US$106.92m, while results shifted to a US$10.45m net loss from US$3.69m profit.

• Adjusted EBITDA increased 87.2% to US$88.25m from US$47.13m.

• Operating cash flow was US$84.41m; cash and quoted investments totalled US$106.26m at 30 June 2024.

Financial highlights

• Gross profit rose 61% to US$62.71m, operating income increased 126% to US$44.96m, and profit before tax was US$38.68m versus US$8.14m.

• Net loss reflected tax expense of US$49.14m versus US$4.45m, mainly due to higher taxable income in Norway.

• Production and operating expenses rose to US$51.82m from US$43.56m; depletion increased to US$41.88m from US$22.40m.

• Crude oil and gas sales were US$158.18m, with US$0.49m from goods and services.

Outlook and guidance

• Brage and Yme production is expected to remain stable; more than one Yumna lifting is expected in 2H FY2024.

• Yumna production is being optimised, with flowline fluid-capacity improvements planned after the September 2024 monsoon season.

• A Field Development Plan for Benin’s Sèmè Field was planned for submission in 2024, aiming to restart production.

• Bestla, in which there is a 17% interest, is expected to produce from H1 2027 to 2031, with potential extension; its development plan was submitted in April 2024.