Release Date: August 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Production increased by a material percentage compared to last year.
- Revenue more than doubled compared to the previous period last year.
- Net profit significantly exceeded last year's figures.
- Announced a NOK50 million quarterly dividend, consistent with past quarters.
- Reserves in Dussafu increased by 23.1 million barrels due to successful drilling programs.
Negative Points
- Lower production in the second quarter due to an extended shutdown in Gabon at Dussafu.
- Slightly behind timing-wise on production targets, expected to be below the bottom end of guidance range.
- Regulatory delays in Tunisia impacting the timing of workovers and production activities.
- Higher drilling costs and expanded drilling program in Gabon putting upward pressure on CapEx guidance.
- Slight slippage in Equatorial Guinea drilling program, impacting production numbers.
Q & A Highlights
Q&A Highlights from Panoro Energy ASA (PESAF, Financial) Q2 2024 Earnings Call
Q: Could you comment on the chance of success for the Akeng Deep and Bourdon prospects, and provide an update on current production rates in Gabon?
A: (John Hamilton, CEO) The chance of success for Bourdon is about 50% for the Gamba sand and 33% for the deeper Dentale. Current production in Gabon is dynamic, with two new wells (Ruche and Hibiscus Northern Flank) expected online by year-end, and two wells offline awaiting pump replacements.
Q: Which of the Hibiscus South or Northern Flank contributed more to the reserve increase in Gabon? Also, could you provide insights on next year's CapEx focus?
A: (John Hamilton, CEO) The reserve increase is roughly split 50-50 between Hibiscus South and Northern Flank. Next year's CapEx will focus on completing the current Gabonese program, ongoing activities in Equatorial Guinea, and some workover activities in Tunisia. Exploration success could slightly adjust CapEx for long lead items.
Q: What should be the exit rate for 2024, and how do you view the mix between dividends and share buybacks?
A: (John Hamilton, CEO) The exit rate for 2024 is expected to be in excess of 13,000 barrels per day. We prefer a steady quarterly dividend and view share buybacks as a long-term tool to enhance NAV per share, rather than targeting short-term share price movements.
Q: What explains the deviation in the revenue line compared to the trading update?
A: (Qazi Qadeer, CFO) The deviation is due to the gross-up presentation for the tax under the PSC for Dussafu, which appears in the revenue line as other income and is offset in the income tax line.
Q: Is there any progress on the application for an exploration right in onshore South Africa?
A: (John Hamilton, CEO) The application is progressing well, with the environmental impact process underway. This asset is part of our transition strategy, focusing on methane gas with helium, and is seen as an exciting long-term opportunity.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
