2024 Preliminary Results

A year of strong progress and momentum

 

Pharos Energy plc, an independent energy company with assets in Vietnam and Egypt, announces its preliminary results for the year ended 31 December 2024. An analyst presentation will take place at 12.30 GMT today by invitation only. If you would like to register to attend, please contact Camarco at [email protected].

Katherine Roe, Chief Executive Officer, commented: 

“2024 was a year of strong progress and delivery for Pharos, culminating in the approval for the extension of our producing licences in Vietnam. This milestone has enabled Pharos to begin 2025 with renewed momentum and a focus on growth.  

“Operationally we delivered successful drilling results and maintained stable production in Vietnam and Egypt delivering 5,801 boepd, generating consistent cash flows, allowing us to fully repay the legacy debt and declare today a 10% increase in the final dividend. We now have the benefit of an unlevered balance sheet capable of supporting additional financing for growth alongside our existing cash resources of $16.5 million at year end.

“The recent licence extensions in Vietnam are enabling us to move forward with a work programme to fully unlock the significant resource potential within these high quality assets. In Egypt, the signing of an MOU with EGPC for the merger of our Egyptian concessions in February this year demonstrates the alignment between all parties to conclude negotiations as soon as possible.

“Our disciplined approach to capital allocation continues to underpin our work programme as we focus on projects that yield the highest returns for our shareholders. We have recently submitted an application for a two-year extension on Blocks 125 & 126 which will allow us to retain future optionality for the prospect to be drilled, whilst investing in near term production growth in Vietnam.

“Pharos is a cash generative, debt free business with a robust balance sheet. This provides us with the flexibility and capacity to pursue both organic growth and inorganic opportunities, specifically compelling accretive acquisitions, to utilise our existing in-country track record and relationships to drive scale, growth and continued shareholder returns.

“I would like to thank all of our colleagues and stakeholders for their continued efforts and support and look forward to delivering in the year ahead.” 

2024 Operational Highlights 

• Group working interest 2024 production was 5,801 boepd net, in line with guidance:
  • Vietnam 4,361 boepd
  • Egypt 1,440 bopd
• Successful drilling campaigns in both Vietnam and Egypt
• Strong safety record with no LTIs
• Vietnam:
  • Applications for five-year licence extensions to the TGT and CNV fields formally granted by the Vietnamese Government in December, increasing year-end 2024 2P reserves in Vietnam by approximately 19%  to 8.9 mmboe and enabling further investment in both fields
  • TGT: successful completion of two-well infill drilling programme in October on time and under budget; we are pleased that both wells are now producing in line with expectations
  • Blocks 125 & 126: detailed drilling engineering studies for the proposed well on Prospect A commenced in 3Q; orders placed for long lead items in August
• Egypt:
  • El Fayum: successful drilling of second exploration commitment well in September, encountering oil-bearing reservoirs in Abu Roach G formation
  • One El Fayum development well put on production in December
  • North Beni Suef (NBS): ongoing processing of 3D seismic data

2024 Financial Highlights

• Group revenue of $136.1m ^1,2 (2023: $168.1m ^1,2)
• Cash generated from operations $89.3m (2023: $88.8m)
• Operating cash flow $54.0m ³ (2023: $44.9m)
• Cash operating costs ⁴ of $17.80/bbl (2023: $15.70/bbl)
• Cash balances as at 31 December 2024 of $16.5m (2023: $32.6m)
• Net cash ⁴ as at 31 December 2024 of $16.5m, the Group is debt free (2023: $6.6m net debt ^4,5)
• Profit for the year of $23.6m (2023: loss $48.8m), including post-tax impairment reversals of $19.9m (2023: post-tax impairment losses of $42.7m)

2024 Corporate Highlights

• Commitment to shareholder returns continue:
  • Sustainable dividend policy delivered with an interim dividend of 0.363 pence per share for the 2024 financial year, and proposed final dividend of 0.847 pence per share announced today, subject to shareholder approval at 2025 AGM
  • Share buyback programme concluded in January 2025 following full utilisation of the latest $3.0m committed to the programme. Since its initiation in July 2022, 30,708,855 ordinary shares have been repurchased by the Company at an average price paid of 23.65p per share

2025 Outlook and Highlights

• Group working interest production guidance of 5,000 – 6,200 boepd net:
  • Vietnam 3,600 – 4,600 boepd
  • Egypt 1,400 – 1,600 bopd
• Vietnam production; following the approval of the TGT and CNV five-year licence extensions:
  • TGT: Drilling of an appraisal commitment well in 4Q; appraisal success would open up an undrilled area in the field
  • TGT: Three infill wells drilling programme expected to commence in 4Q
  • CNV: Planning underway for the drilling of one infill well expected to commence in 4Q
  • 3D seismic reprocessing on both assets commenced in January 2025, expected completion in 3Q
• Vietnam exploration; Blocks 125 & 126:
  • Submitted application for a 2-Year PSC Exploration Phase Extension in February 2025
  • Long Lead Items for Block 125 exploration well expected to arrive in 2Q 2025
  • Renewed focus on farm-out strategy to enable drilling of the prospect
• Egypt:
  • El Fayum: Testing of the successful exploration commitment well in February
  • Application for commercial discovery declaration submitted to EGPC in 1Q
  • Planning underway to commence two-well El Fayum drilling programme in 2H
  • NBS: expected completion of 3D seismic data processing in 1H, with interpretation and mapping to follow
  • Memorandum of Understanding (MOU) with EGPC in relation to the proposed consolidation of the El Fayum and NBS concessions signed in February 2025
• On track to achieve our Net Zero interim three-year target (2024-2026) of 5% emissions reduction
• Forecast Group cash capex in the year expected to be a minimum of $37m and could potentially increase to $66m. The minimum programme reflects the drilling of one TGT appraisal commitment well and long lead items for TGT and CNV infill wells. The upper range would include drilling the three TGT infill wells, one CNV appraisal commitment well, and one CNV infill well. The minimum range includes long lead items for Block 125 exploration drilling in Vietnam. In Egypt, the minimum programme includes two El Fayum development wells and two injector wells, with the  potential for three additional development wells on El Fayum and two development wells and one water injector in NBS in our upper range, should activity increase following approval and signature of a consolidated concession agreement
• Active capital programme aimed at delivering important production growth from 2026

^{1 Egyptian revenues are stated post government take} 

^{2 Stated prior to realised hedging loss of $0.1m (2023: loss of $0.2m)}

^{3 Operating cash flow = Net cash from operating activities, as set out in the Cash Flow Statement}

^{4 See Non-IFRS measures on page 40}

^{5 Includes RBL and National Bank of Egypt working capital drawdown}

 

Enquiries

Pharos Energy plc Tel: 020 7747 2000

Katherine Roe, Chief Executive Officer   

Sue Rivett, Chief Financial Officer

 

Camarco Tel: 020 3757 4980

Billy Clegg | Georgia Edmonds | Violet Wilson | Tamsin Howard

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 currently 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 currently 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. Following the announcement by Pharos in December 2024 of approval a five year extension to the terms of the petroleum contracts for Blocks 16-1 and 9-2, together with associated changes to fiscal terms and participating interests, Pharos will hold a revised working interest in Block 16-1 (TGT) of 25.33% with effect from 8 December 2026 and a revised working interest in Block 9-2 (CNV) of 20% with effect from 16 December 2027. 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.