Panoro Energy (PEN) Q2 2024 earnings summary

Executive summary

• H1 2024 working interest production rose to 9,168 bopd, up from 7,220 bopd in H1 2023, with revenue of USD 142.7 million and net profit of USD 24.2 million, reflecting strong operational and financial performance.

• Two significant oil discoveries in Gabon during H1 2024 increased 2P reserves by 23.1 MMbbls gross, with fast-tracked development and multiple new wells supporting future growth.

• Shareholder returns remain a priority, with NOK 50 million quarterly dividend, NOK 290 million distributed since inception, and a share buyback program extended to end-2024.

• Second quarter production was lower sequentially due to an extended planned shutdown in Gabon, but production is expected to exceed 13,000 bopd by year-end as new wells come online.

• Provisional awards of new exploration blocks in Gabon and Equatorial Guinea expand the E&A portfolio, with ongoing high-impact exploration wells planned.

Financial highlights

• H1 2024 revenue was USD 142.7 million, more than double H1 2023's USD 66.3 million, with EBITDA at USD 77.8 million and net profit at USD 24.2 million.

• Q2 2024 revenue was USD 73.7 million, and cash at bank stood at USD 43.2 million at 30 June 2024.

• CapEx for H1 2024 was USD 47.8 million, with full-year guidance at USD 75 million and upward pressure from expanded drilling.

• Gross debt decreased to USD 68.6–70.5 million, structured as a reserve-based loan with gentle amortization and extended maturity to Q1 2028.

• Net debt reduced significantly to USD 25.4 million from USD 56.4 million at the end of Q1 2024.

Outlook and guidance

• Production is expected to exceed 13,000 bopd by year-end, though full-year output may fall slightly below low-end guidance due to deferred projects and regulatory delays.

• CapEx projected to halve to about USD 40 million in 2025, with free cash flow expected to strengthen.

• Lifting schedule for 2024 targets 3.5 million barrels, a 35% increase from last year.

• Ongoing and upcoming high-impact exploration wells in Equatorial Guinea (Akeng Deep) and Gabon (Bourdon) in late 2024 and early 2025.