Tethys Oil (TETY) Q3 2024 earnings summary

Executive summary

• Q3 2024 featured stable production at 7,717 bopd, recovery from weather disruptions, and a positive production trend into Q4.

• Roc Oil launched a public offer at SEK 58.70 per share, representing an 89–89.5% premium and valuing the company at SEK 1.894 billion; the board recommends acceptance, with the acceptance period ending December 2, 2024.

• Drilling of Kunooz-1 on Block 58 completed, with open hole test program ongoing and initial exploration phase extended by one year.

• Field Development Plan for Block 56 nearing approval, expected in Q4 2024.

• $60 million, five-year amortizing term loan secured, with $7.1 million drawn in Q3 to support investments.

Financial highlights

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

• Free cash flow: -$8.8 million (down from $3.1 million in Q2 2024) due to higher investments and lower operational cash flow.

• Cash and cash equivalents: $16.4 million at quarter-end, with net cash position of $9.3 million.

• Operating expenses per barrel: $18.0 (unchanged from Q2 2024).

• Net result: -$0.3 million (down from $4.5 million in Q2 2024), mainly due to unrealized exchange losses.

Outlook and guidance

• Full-year 2024 production guidance narrowed to 7,800–8,000 bopd, reflecting stable and improving trends.

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

• Operating expenditure for 2024 expected at $18.0/bbl.

• All planned investments to be financed through cash flow, cash on hand, and available debt facilities.

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