Kistos (KIST) H1 2024 earnings summary

Executive summary

• Completed acquisition of EDF's UK gas storage business for £25 million, diversifying into midstream energy and increasing Hill Top working gas capacity by 24%.

• H1 2024 production averaged 8,400 boepd, with full-year guidance of 7,500–8,500 boepd and peak production forecast above 15,000 boepd in 2025.

• Revenue fell 13% to $113.3 million and Adjusted EBITDA dropped 34% to $48.6 million, mainly due to lower gas prices and production.

• Net debt rose to $175 million, with cash at period end of $70–72 million, reflecting capex and tax payments.

• Portfolio growth supported by strong operational performance at Greater Laggan Area and Balder, and high uptime at Balder.

Financial highlights

• Adjusted revenue for H1 2024 was $113.3 million, down from $113.8 million in H1 2023 and $129.7 million pro forma.

• Adjusted EBITDA was $48.6 million, down from $72.2 million in H1 2023.

• Average realised oil price increased 8% to $82/bbl, but gas prices fell 33% year-over-year to $54/boe.

• Unit opex rose to $29/boe due to lower production rates.

• Net loss of $17.2 million, compared to a $14.5 million profit in H1 2023.

Outlook and guidance

• Full-year 2024 production guidance set at 7,500–8,500 boepd.

• Production expected to peak above 15,000 boepd in 2025, driven by new wells and asset ramp-up.

• Jotun FPSO (Balder Future) start-up delayed to Q2 2025, with protections in place against cost overruns via Hybrid Bond structure.

• FEED study underway for recommissioning Hole House gas storage, with potential 60% capacity uplift.

• Continued M&A appetite in both traditional energy and energy transition sectors.