Pharos Energy (PHAR) H1 2024 TU earnings summary

Executive summary

• Solid operational and financial performance in 1H 2024, with production within guidance and a strong net cash position supporting dividends and share buybacks.

• Positive macro environment in Egypt improved receivables, with $19 million received to date and further payments under discussion.

• Board and management changes include new CEO and COO appointments effective 1 July 2024.

Financial highlights

• Group 1H revenue reached $65 million.

• Cash balances at 30 June were approximately $31 million, with debt reduced to $13 million from $39.2 million at year-end 2023.

• Net cash position at 30 June was $18 million, compared to net debt of $6.6 million at 31 December 2023.

• Egypt receivables at 30 June were $31.3 million, down from $37.4 million at year-end, with $14.8 million received in 1H and an additional $4 million in July.

• Full-year forecast cash capex remains at $32 million ($27 million after Egyptian carry by IPR).

Outlook and guidance

• Group 2024 production guidance remains at 5,200–6,500 boepd net.

• Vietnam 2024 production guidance is 3,900–5,000 boepd net; Egypt guidance is 1,300–1,500 bopd net.

• Continued focus on near-term drilling and finalising licence extensions in Vietnam to support future investment.