PetroNor E&P (PNOR) Q4 2024 earnings summary

Executive summary

• Achieved record oil sales in 2024, lifting and selling 1.8 million barrels for $140 million, with stable production just under 4,800 barrels per day in Q4, and improved production efficiency supported by stable infrastructure.

• Ended 2024 with $80 million in cash, increasing to $115 million after January receipts, and remained debt-free.

• Distributed NOK 2 per share (USD 25.6 million) to shareholders in January 2025, with further distributions under consideration for 2025.

• Portfolio includes high-margin production in Congo (PNGF Sud), redevelopment in Nigeria (Aje field), and exploration in The Gambia and Guinea-Bissau.

• Market capitalization increased to USD 160.2 million from USD 110.0 million year-over-year.

Financial highlights

• Total revenue for 2024 was USD 204.5 million, up from USD 187 million in 2023, with EBITDA of USD 100.3 million and net profit of USD 43.3 million.

• Operating expenses were $20.5 million ($11.5 per barrel), CapEx was $13.1 million, and admin costs were $14 million, including $3.5 million in legal fees.

• Cash flows from operations totaled USD 60.8 million, up from USD 49.4 million in 2023.

• Cost of sales increased to USD 105.7 million, mainly due to a USD 35.8 million overlift position.

• Share price increased 37% over 12 months, with a NOK 2/share distribution offering a 14% return.

Outlook and guidance

• Five new infill wells planned for Congo in 2025, aiming to boost production above 30,000 barrels/day by year-end.

• Next oil lifting and sale expected in H2 2025 due to overlift repayment; no major sales until then.

• Board expects to recommend another shareholder distribution at the 2025 AGM, with timing dependent on audit completion.

• Ongoing technical work in The Gambia and Nigeria, with potential for increased economic interest in Aje field to over 50%.

• Awaiting results from Atum-1X well in Guinea-Bissau, which could trigger a USD 30 million contingent payment if successful.