Kistos (KIST) H2 2024 earnings summary

Executive summary

• Achieved significant progress on the Balder Future project, with Jotun FPSO sail away completed and first oil expected by end of Q2 2025.

• FY24 oil and gas production reached 8,050 boepd across three regions, with organic growth in UK onshore gas storage.

• Statutory loss after tax of $52 million, impacted by impairment charges and fair value/FX losses.

Financial highlights

• Gross profit of $117 million and adjusted EBITDA of $95 million, down 27% year-over-year due to lower gas prices and production volumes.

• Cash balance of $114 million (excluding $29 million restricted funds) as of year-end.

• $144 million in CAPEX, reflecting ongoing investment in Balder Future.

• Received $80.7 million Norwegian tax rebate for 2023 CAPEX; expects NOK 746 million (~$65 million) rebate for 2024 investments in December 2025.

• Hybrid bond carrying value reduced to $0.7 million due to unmet milestones.

Outlook and guidance

• Balder Future first oil anticipated by end of Q2 2025, with net peak production of 8,000 boepd within 3-4 months.

• FY25 production guidance set at 8,000–9,000 boepd, with ambitions to grow average daily production to 9,000 boepd and peak above 15,000 boepd.

• Focus on progressing near-term development, converting 2C resources to 2P reserves, and pursuing value-accretive M&A.