Rockhopper Exploration (RKH) H2 2024 earnings summary

Executive summary

• Achieved significant progress on Sea Lion project financing, with a lead technical lending bank mandate signed and positive feedback from potential capital providers; FID targeted for H2 2025.

• Monetised Ombrina Mare arbitration award, receiving €19 million upfront and securing insurance for a minimum €31 million in case of annulment; potential for €65 million additional payment.

• Signed SPA to dispose of Italian business, reducing annual costs and decommissioning liabilities; completion pending regulatory approvals.

• Cash and term deposits increased to $20.9 million at year-end 2024, up from $8.0 million in 2023.

Financial highlights

• Reported profit of $47.6 million for 2024, compared to a $4.6 million loss in 2023, driven by $79.8 million other income from Ombrina Mare monetisation.

• Administrative expenses reduced to $3.3 million (2023: $3.8 million), with lower legal fees offset by higher staff bonuses.

• Cash and term deposits at $20.9 million as of 31 December 2024.

• Additions to intangible exploration and evaluation assets totaled $14.7 million, mainly for Sea Lion.

Outlook and guidance

• FID for Sea Lion expected in H2 2025, contingent on completion of bank due diligence and financing.

• Additional funding may be required for project sanction, depending on Ombrina Mare outcome and final project costs.

• Updated independent resource report for Sea Lion to be published soon.