RH PetroGas (T13) H2 2023 earnings summary

Executive summary

• FY2023 production rose 4% YoY to 4,990 BOEPD, while revenue declined 10% to US$94.1m as realised oil prices fell; net profit was US$3.2m, including a US$17.7m exploration write-off.

• Excluding the unsuccessful-well write-off, FY2023 net profit would have been US$13.8m; EBITDAX was US$25.3m.

Financial highlights

• Revenue was US$94.1m vs US$104.9m in FY2022; oil sales were US$81.4m and gas sales US$12.7m.

• Gross profit declined to US$26.0m from US$44.1m as cost of sales rose to US$68.1m from US$60.9m.

• Net profit was US$3.2m vs US$24.9m; profit attributable to owners was US$2.6m vs US$20.1m, and basic EPS was 0.31 cents vs 2.42 cents.

• Operating cash flow was US$16.8m; cash and bank balances were US$54.6m at year-end, and total equity was US$48.8m.

Outlook and guidance

• Further appraisal of Piarawi-1 is planned to assess the extent and commerciality of its oil discovery; the tighter-than-expected reservoir requires stimulation for optimal recovery.

• 2024 plans include EOR pilot field works and facilities installation; South Walio Offshore 3D seismic processing and interpretation are ongoing.

• Remaining capital commitments were US$39.2m at year-end, with US$24.6m expected to be incurred in the next 12 months.