Indonesia Energy Corporation (INDO) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was $2.67 million, down 24% from 2023, primarily due to a 22.7% decline in oil production and slightly lower oil prices; net loss increased to $6.34 million from $2.64 million in 2023, driven by lower revenue and higher general and administrative expenses, notably share-based compensation.

• Kruh Block contract was extended to September 2035, increasing after-tax profit split from 15% to 35% and cost recovery cap from 80% to 100%; seismic data acquisition completed in 2024, with new drilling expected to resume in 2025.

• Proved oil reserves at Kruh Block increased to 3.30 million barrels (gross) as of December 31, 2024, with net reserves at 2.53 million barrels; production averaged 3,774 barrels per month in 2024, down from 4,885 in 2023.

• Citarum Block exploration continues, with 31 prospects retained after relinquishing 80% of the original acreage; new seismic and geochemical surveys have reduced exploration risk.

Financial highlights

• Revenue: $2.67 million in 2024 (down 24% YoY); $3.53 million in 2023 (down 14% YoY).

• Net loss: $6.34 million in 2024 (vs. $2.64 million in 2023); average production cost per barrel rose to $61.05 in 2024 from $50.34 in 2023.

• Cash and restricted cash at year-end 2024: $6.49 million; capital expenditures in 2024: $2.46 million, mainly for seismic studies.

• No cost ceiling write-downs; no impairment charges recorded.

Outlook and guidance

• Drilling at Kruh Block to resume in 2025, targeting 18 new wells by 2029, aiming to increase production and reserves.

• Oil price outlook for 2025 is around $74 per barrel, with stable cash flows expected; management believes current cash and anticipated flows will cover working capital needs for at least 12 months.

• Citarum Block exploration to focus on highest-potential prospects, with further seismic and drilling planned.