Chariot (CHAR) H2 2023 earnings summary

Executive summary

• Advanced all business pillars: transitional gas, power, and green hydrogen, with significant progress in Morocco, South Africa, Mauritania, and other African markets.

• Secured Energean as a partner for Moroccan offshore gas, completed FEED at Anchois, and achieved a gas discovery at Loukos Onshore.

• Increased stake in Etana Energy to 49%, expanding electricity trading and renewable generation in South Africa.

• Completed feasibility study for 10GW Project Nour in Mauritania, confirming world-class green hydrogen potential.

• Raised $19.1 million in equity, ended 2023 with $6.0 million cash, and received $10 million post-period from Energean deal.

Financial highlights

• Year-end cash balance: $6.0 million (2022: $12.1 million); no debt.

• Loss after tax: $15.6 million (2022: $14.9 million); loss per share: $(0.02).

• Operating expenses: $15.6 million; share-based payments: $5.7 million; green hydrogen development costs: $1.3 million.

• Exploration and evaluation assets: $63.0 million (offshore Morocco: $61.8 million; onshore: $1.2 million).

• No dividend recommended for 2023.

Outlook and guidance

• Focus on near-term cashflows from gas assets, especially Anchois and Loukos, with drilling at Anchois East in Q3 2024.

• Strategic review of Transitional Power may result in sale or demerger to unlock value.

• Ongoing pursuit of financing at asset, subsidiary, or group level to support growth.

• Continued development of green hydrogen projects and expansion of renewable power portfolio.