Seacrest Petroleo Bermuda (SEAPT) Q2 2024 earnings summary

Executive summary

• Achieved first positive quarterly net profit of USD 5.5 million and EPS of USD 0.0153, with revenues of USD 47.2 million, up 3% sequentially, despite a 5% drop in production to 7,959 boepd due to temporary facility issues now resolved.

• Strong drilling performance with eight new infill wells drilled at an average of 4.2 days each, supporting imminent production growth and de-risking a 300-well program.

• Cash flow from operations turned positive at USD 0.2 million, a USD 56 million improvement from Q1 2024.

• Major steps taken to strengthen the balance sheet, including advanced convertible bond issuance and refinancing efforts.

• Maintained 2024 production cost guidance of USD 20–24/boe, with Q2 production cost at USD 26.2/boe due to lower output and higher costs.

Financial highlights

• EBITDA reached USD 9.5 million, up from USD 7.9 million in Q1 2024 and USD 1.5 million in Q2 2023.

• Operating profit was USD 2.6 million, reversing a loss of USD 0.5 million in Q1 2024 and USD 20.2 million in Q2 2023.

• Net profit of USD 5.5 million, reversing a net loss of USD 18.8 million in Q1 2024, mainly due to deferred tax gains.

• Realized hedging loss of USD 3.1 million impacted revenues and EBITDA.

• Adjusted net interest-bearing debt stood at USD 386 million at quarter-end.

Outlook and guidance

• 2024 production guidance revised to 8,300–8,600 boepd, with an exit rate of 9,500–12,500 boepd; long-term goal to more than triple oil production by 2027 remains unchanged.

• Capex guidance for 2024 reduced to USD 60–65 million; wells drilled guidance lowered to 18–32.

• Production cost per boe guided at USD 20–24, excluding certain costs.

• Temporary Q3 production reduction due to ANP-mandated upgrades, but long-term growth trajectory remains intact.

• Guidance updated in July, with expectations for rapid and profitable growth.