PetroNor E&P (PNOR) Q1 2025 earnings summary

Executive summary

• Q1 2025 net working interest production averaged 4,321 bopd, down from 4,759 bopd in Q4 2024 due to reservoir decline and maintenance, but efficiency is expected to improve with new wells coming online.

• Q1 2025 EBITDA was USD 14.75 million and net profit was USD 1.33 million, both down significantly year-over-year due to no oil liftings.

• Cash position at quarter-end was USD 107.5 million, with no debt, supporting a strong balance sheet and enabling significant shareholder returns.

• Strategy remains focused on maximizing value from the existing portfolio and returning excess cash to shareholders, with a proposed NOK 2.2 per share capital return at the upcoming AGM.

Financial highlights

• Revenue for Q1 2025 was USD 13.9 million, reflecting only royalties and tax oil due to no oil liftings, compared to USD 44.3 million in Q1 2024.

• Cash at bank increased to USD 107.5 million as of 31 March 2025, up from USD 79.7 million at year-end 2024.

• OPEX from the field was USD 4.5 million, or USD 11 per barrel, considered world-class for the industry.

• Two capital returns: NOK 2.0 per share in January and a proposed NOK 2.2 per share (~USD 30 million) pending AGM approval.

• Gross assets at 31 March 2025 were USD 264.9 million, with equity of USD 197.1 million.

Outlook and guidance

• Five-well infill drilling program in Congo to resume in 2H 2025, with production impact anticipated from August and a targeted exit rate above 5,000 bopd by year-end.

• Full-year average production is expected to approach 4,800 bopd, assuming drilling success.

• Next oil lifting expected in H2 2025 as H1 production replenishes oil stock after Q4 2024 overlift.

• Board proposes an additional NOK 2.2 per share capital repayment, subject to AGM approval.