Zenith Energy (ZEN) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended September 30, 2024, was CAD $911k, down from CAD $1,362k year-over-year.

• Net profit for the period was CAD $5,720k, a significant turnaround from a net loss of CAD $9,130k in the prior year.

• The company is engaged in three major international arbitrations against the Republic of Tunisia and ETAP, with a cumulative claim of US $639.7 million.

• Management focused on cost reduction, maximizing Italian asset revenues, and pursuing new business opportunities.

Financial highlights

• Gross profit was CAD $337k, compared to CAD $391k in the prior year.

• Administrative expenses dropped sharply to CAD $277k from CAD $8,083k year-over-year.

• Other income of CAD $9,112k contributed to the positive net result.

• Earnings per share were $0.02 basic and diluted, compared to a loss per share of $(0.04) and $(0.01) respectively.

• Cash and cash equivalents at period end were CAD $86k, down from CAD $843k.

Outlook and guidance

• Management expects 2025 to be significant, with key arbitration decisions anticipated and potential positive financial impact.

• The company is seeking new producing asset acquisitions in the US, South America, and Africa to diversify and increase cash generation.

• Directors believe adequate working capital exists for the next 12 months, assuming successful fundraises and positive arbitration outcomes.