Tethys Oil (TETY) Q3 2024 earnings summary

Executive summary

• Q3 2024 featured stable production at 7,717 bopd, recovery from weather disruptions, and significant operational milestones, including the drilling of Kunooz-1 and progress on Block 56's FDP.

• Roc Oil launched a public offer at SEK 58.70 per share, representing an 89–89.5% premium to the pre-offer share price, with the board recommending acceptance; acceptance period runs until December 2, 2024.

• The company may transition to private ownership if the Roc Oil offer is accepted by shareholders by December 2, 2024.

• Significant investments in oil & gas properties ($23.1M in Q3) led to negative free cash flow and a reduction in net cash to $9.3M.

• A $60M term loan facility was secured, with $7.1M drawn in Q3 to support ongoing investments.

Financial highlights

• Q3 2024 revenue and other income totaled $30.8M (flat vs. Q2 2024); EBITDA was $15.2M (down from $15.7M in Q2 2024).

• Free cash flow was negative at $8.8M, mainly due to higher investments and lower operational cash flow.

• Cash and cash equivalents at quarter-end were $16.4M, with net cash position at $9.3M.

• Operating expenses per barrel remained stable at $18.0 for the second consecutive quarter.

• Net result was -$0.3M, mainly due to unrealized exchange losses.

Outlook and guidance

• Full-year 2024 production guidance narrowed to 7,800–8,000 bopd, with opex expected at $18.0/bbl.

• Full-year capital expenditure expected at $78M, mainly due to additional testing at Kunooz-1.

• Investments to be financed by operating cash flow, cash on hand, and available debt facilities.

• Block 56 FDP approval anticipated before year-end; Block 58 Kunooz-1 testing ongoing.