2024 Interim Results

Pharos Energy plc, an independent energy company with assets in Vietnam and Egypt, announces its interim results for the six months ended 30 June 2024. A conference call for analysts will take place at 09.00 BST today.

Katherine Roe, Chief Executive Officer, commented:

“Since joining as CEO in July, I have found a solid operational business with quality assets delivering stable production and robust cash flows, an impressive team, and a strong financial base. Alongside this, the improving macro environment in Egypt has seen our receivables position improve significantly with over $20m received year to date. This financial strength allows us to announce today the intention to pay an interim dividend of 0.363 pence per share for the current financial year, a continuation of the existing share buyback programme and, importantly, the repayment of all our outstanding debt. We are proud of our Company moving to a net cash position of $17.5m at 30 June and, subsequent to that, is now debt-free.

“We have a solid foundation from which to build on and move forward to grow value in both Vietnam and Egypt. We benefit from having assets with catalysts. In Vietnam, actively progressing the license extensions will unlock appraisal potential. In Egypt, our consolidation proposal will provide enhanced fiscal terms to encourage appropriate re-investment. This will all be considered within the framework of a strict and transparent capital allocation policy that is balanced appropriately and with the priority on evaluating opportunities that can deliver the highest return to shareholders.

“I want to thank shareholders for their continued support and look forward to updating the market on our upcoming activity.”

1H Operational Highlights 

  • Group working interest 1H production was 5,851 boepd net (1H 2023: 6,915 boepd net), in line with full year guidance:
    • Vietnam 1H production 4,456 boepd (1H 2023: 5,566 boepd)
    • Egypt 1H production 1,395 bopd (1H 2023: 1,349 bopd)
  • In Vietnam:
    • Surface and subsurface optimisation to ensure stable TGT and CNV 1H production
    • Approval of the TGT Revised Field Development Plan (RFDP) by the Ministry of Industry and Trade (MOIT)
    • Agreement between Partners and PetroVietnam (PVN) on the terms and work programme commitments for the extension period of the TGT and CNV five-year licence extension applications; which now await formal approval
    • Progressing the opportunity in Block 125 with long lead items ordered in August 2024 
  • In Egypt:
    • Focus on workovers, recompletions, and water injection to bring low-cost barrels to production and build reservoir energy for future drilling
    • Preparation for exploration and development drilling programmes
    • Processing and interpretation of the recently acquired 3D Seismic in NBS 

1H Financial and Corporate Highlights

  • Net cash as at 30 June 2024 of $17.5m1,2 (30 June 2023: net debt of $16.4m)1,2
  • Group revenue $65.0m3 (1H 2023: $86.2m)3
  • Net profit $15.3m (1H 2023: $14.3m net loss), including $12.6m of restructuring expenses, re-measurements and impairments (1H 2023: $(15.2m)) 
  • Cash generated from operations $44.3m3 (1H 2023: $43.4m)3
  • Egypt receivables reduced with $14.8m received from EGPC in 1H 2024 and an additional $4m received on 1 July 2024
  • Operating cash flow $27.9m4 (1H 2023: $21.3m)4
  • Cash operating costs $17.09/bbl1 (1H 2023: $14.14/bbl)1  
  • Cash balances as at 30 June 2024 of $30.7m (30 June 2023: $35.9m)
  • Forecast cash capex for the full year is $31m ($26m after Egyptian carry by IPR), of which $6.8m had been incurred by 30 June 2024
  • Katherine Roe appointed CEO and Mohamed Sayed promoted to COO effective 1 July 2024
  • Commitment to shareholder returns continues with an interim dividend of 0.363 pence per share in respect of the year ended 31 December 2024 and continuation of the current phase of the share buyback programme, with $1.1m of the $3m incurred by the end of June 2024 

1 See Non-IFRS measures on page 31
2 Includes RBL and National Bank of Egypt working capital drawdown 
3 Stated after realised hedge losses of $0.1m in the period (1H 2023: no realised hedge gains or losses)
4 Operating cash flow = Net cash from operating activities, as set out in the Cash Flow Statement

Outlook

  • 2024 production guidance of 5,200 – 6,500 boepd net remains unchanged:
    • Vietnam 2024 production guidance 3,900 – 5,000 boepd net; Egypt 2024 production guidance 1,300 – 1,500 bopd net
  • Vietnam
    • Two-well TGT infill drilling programme commenced on 26 August 2024
    • Awaiting CNV RFDP approval, expected in Q4 2024, enabling further development drilling on CNV to commence in 2025
    • TGT and CNV five-year licence extensions well advanced; once signed, this will enable commitment to further investment in both fields
    • Discussions ongoing with potential farm-in partners and rig contractors required to progress Block 125
  • Egypt
    • Expected completion of the exploration commitment well on El Fayum in 4Q 
    • Processing of c.130km2 of 3D seismic data on NBS underway and expected to complete in 4Q
    • Discussions ongoing on the consolidation proposal following the initial feedback from EGPC 

 

Enquiries

Pharos Energy plc Tel: 020 7747 2000

Katherine Roe, Chief Executive Officer   

Sue Rivett, Chief Financial Officer

Mohamed Sayed, Chief Operating Officer 

Camarco Tel: 020 3757 4980

Billy Clegg | Georgia Edmonds | Violet Wilson | Kirsty Duff

Notes to editors

Pharos Energy plc is an independent energy company with a focus on sustainable growth and returns to stakeholders, which is listed on the London Stock Exchange. Pharos has production, development and/or exploration interests in Egypt and Vietnam. In Egypt, Pharos holds a 45% working interest share in the El Fayum Concession in the Western Desert, with IPR Lake Qarun, part of the international integrated energy business IPR Energy Group, holding the remaining 55% working interest. The El Fayum Concession produces oil from 10 fields and is located 80 km southwest of Cairo. It is operated by Petrosilah, a 50/50 joint stock company between the contractor parties (being IPR Lake Qarun and Pharos) and the Egyptian General Petroleum Corporation (EGPC). Pharos also holds a 45% working interest share in the North Beni Suef (NBS) Concession in Egypt, which is located immediately south of the El Fayum Concession. The first development lease on the NBS Concession was awarded in September 2023 and production started in December 2023. IPR Lake Qarun operates and holds the remaining 55% working interest in the NBS Concession. In Vietnam, Pharos has a 30.5% working interest in Block 16-1 which contains 97% of the Te Giac Trang (TGT) field and is operated by the Hoang Long Joint Operating Company. Pharos’ unitised interest in the TGT field is 29.7%. Pharos also has a 25% working interest in the Ca Ngu Vang (CNV) field located in Block 9-2, which is operated by the Hoan Vu Joint Operating Company. Blocks 16-1 and 9-2 are located in the shallow water Cuu Long Basin, offshore southern Vietnam. Pharos also holds a 70% interest in, and is designated operator of, Blocks 125 & 126, located in the moderate to deep water Phu Khanh Basin, north east of the Cuu Long Basin, offshore central Vietnam.

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