19 Sep 2024
Half Year Results 2024
Half-Year Report Announcement
Randy Neely, Chief Executive, Capricorn Energy PLC said:
“I am delighted to report that Capricorn’s clear value opportunity offering has been confirmed by the Company’s production performance in Egypt indicating that we are on track to meet guidance targets for the full year. Maximising the value of the Company was the driving force behind the wholesale restructure of the business early last year, and this strategy has transformed Capricorn into the cash flow focused energy producer it is today.
Following material cash collections in Egypt, we have resumed investing. A key catalyst in improving production and unlocking value from these assets will be an amendment to the terms of our Production Sharing Contracts (PSCs) and we are formally engaged with our operating partner, Cheiron, and the Egyptian General Petroleum Corporation (EGPC) to achieve this. We were pleased to meet with Egypt’s new Minister of Petroleum & Mineral Resources, Karim Badawi, who has publicly outlined his intent to improve the investment environment to boost oil and gas production in country. We also met with the newly appointed Cheiron CEO and look forward to working together on this mutually beneficial objective.
We welcome the consistency of regular payments received from EGPC to date in 2024, improving the Company’s financial position and reinforcing our assertion that the Egyptian government honours its financial obligations. This gives us confidence that Capricorn will continue to collect receivables as we move forward with a focus on production enhancement, asset optimisation and value creation.
With a strong balance sheet and up to $72m of contingent and deferred receipts due in the months ahead, the Company moves into H2/24 with positive momentum as we prioritise opportunities for further shareholder returns and to create value in the UK North Sea, supported by our Egyptian asset base.”
H1 2024 Financial and Operational Highlights
- ~$50m returned to shareholders in June and ~$21m of the $25m share buyback repurchased
- Revenue in Egypt of $80m with realised oil price of $78.6 per bbl and gas price of $2.97 per mscf
- Material improvement of collections against Capricorn’s Egypt accounts receivable since YE/23 with cash receipts of $93m in H1/24 compared to $50m in H1/23
- Egypt receivables due have reduced from $169m at YE/23 to $155m at H1/24, with a further ~$20m received to date Q3/24
- Operating cost per boe of $4.7 on WI basis
- Sangomar Field first oil condition satisfied: $50m contingent payment anticipated early 2025 subject to satisfying oil price and performance conditions
- Balance sheet: Group cash $148m, net cash $40m after debt
- Development & Production capex of $32m
- Drilling resumed in Egypt with a liquids focused strategy
- Egypt H1 2024 WI production averaged ~26,200 boepd
- New Non-Executive Chair and Non-Executive Director appointed
2024 Outlook
- FY24 production expected to meet guidance of 20,000 – 24,000 boepd, reflecting robust asset performance and the resumption of development drilling. Average production to date of ~24,700 boepd
- Full year forecast capital expenditure of $50-60m following the resumption of drilling, with opex expected to average <$6 per boe
- Progress negotiations with EGPC towards an improved PSC
- Gross G&A remains on target to reach a run rate of ~$20m annually, by year end
- Continue to actively evaluate opportunities to create shareholder value in the UK North Sea
Enquiries to:
Analysts / Investors
Nathan Piper, Commercial Director
Tel: 0131 475 3000
Media
Diana Milford, Corporate Affairs
Tel: 0131 475 3000
Billy Clegg/Georgia Edmonds, Camarco
Tel: 0203 757 4980
Webcast
There will be a live audio webcast of the results presentation available to view on the website (www.capricornenergy.com) at 12 noon BST. This can be accessed on PC, Mac, iPad, iPhone, and Android mobile devices.
An 'on demand' version of the webcast will be available on the website as soon as possible after the event. This can be viewed on PC, Mac, iPad, iPhone, and Android mobile devices.
Presentation
The results presentation slides will be available on the website from 12 noon BST.
Conference call
You can listen to the results presentation by dialling in to a conference call at 12 noon BST using the below dial-in-details. Analysts who wish to ask a question should use the conference call facility.
Dial-in Details:
United Kingdom (Local): +44 (0) 33 0551 0200
Access code: Quote ‘Capricorn Half Year Results’ when prompted by the operator
Transcript
A transcript of the results presentation will be available on the website as soon as possible after the event.
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