Valeura Energy (VLE) Q4 2023 earnings summary

Executive summary

• First full year of Thailand operations generated US$493.5m oil revenue from 5.854m bbl sold; production averaged 20,440 bbl/d during the 285 days after the Mubadala Acquisition closed.

• Reserves additions more than replaced 2023 production, while Wassana appraisal and drilling increased its 2P reserves and supported potential redevelopment.

Financial highlights

• 2023 oil revenue was US$493.5m; average realised price was US$84.3/bbl, US$2.2/bbl above Brent. Q4 revenue was US$169.9m at US$85.5/bbl.

• 2023 comprehensive income was US$246.0m versus a US$15.2m loss in 2022; Q4 comprehensive income was US$57.4m versus a US$7.9m loss.

• Adjusted EBITDAX was US$230.7m and adjusted capex US$108.7m for 2023; adjusted opex was US$28.4/bbl in the narrative and US$28.3/bbl in the summary table.

• Adjusted cash flow from operations is reported as US$152.4m in the summary table and highlights, versus US$137.3m in the narrative; Q4 is US$56.0m in the table versus US$58.2m in the narrative.

• Total 2023 tax expense was US$71.2m.

Outlook and guidance

• 2024 Jasmine programme calls for ~7 wells in H2 plus one exploration well at Ratree; Manora infill drilling is notionally planned for late 2024.

• Nong Yao C development drilling is expected to start in coming weeks, with up to nine gross wells; first production is expected in late Q2 2024 and peak output target is ~11,000 bbl/d for the greater field.

• A final investment decision on potential Wassana redevelopment is anticipated in 2024; the selected concept will determine development scope and potential reserves upside.

• Growth plans include organic investment and potential Southeast Asia M&A, alongside further cost optimisation and tax-efficiency work.