Q2 2024 Africa Oil Corp Earnings Call Transcript
Key Points
- Africa Oil Corp (AOIFF) maintained a strong balance sheet with $185 million in cash at the end of Q2 2024.
- The company returned $51 million to shareholders through dividends and share buybacks in the first half of 2024.
- Prime's performance remained solid with an EBITDA of $92 million and free cash flow of $77 million for the quarter.
- The company sold its oil in Nigeria at an average price of $89 per barrel, above the Dated Brent price of $85.
- Africa Oil Corp (AOIFF) has significant drilling catalysts in the Venus Block and Block 3B/4B, targeting multi-billion barrel growth prospects by the end of 2025.
- The company's cash balance decreased from $232 million at the start of the year to $185 million by the end of Q2 2024.
- Net income for the quarter was impacted by exceptional items, including a $7 million loss from Africa Energy and a $12 million negative over lift balance.
- Production was slightly down in Q2 2024 due to a planned one-month shutdown of the Apko field.
- The Prime deal is expected to close in Q2 or Q3 2025, which may delay some strategic initiatives.
- There is uncertainty around the exact magnitude of dividends from Prime in the second half of the year.
On behalf of management, I thank you for joining us today for our second quarter 2024 results presentation. On the call today, we have President & CEO, Roger Tucker; our CFO, Pascal Nicodeme; and our Chief Commercial Officer, Oliver Quinn. There will be a presentation for around 20 minutes before we go into the Q&A session.
But first, I would like to remind everyone that remarks made during this session are subject to forward-looking statements, which involve significant risk factors and assumptions. And these have been fully described in the company's continuous disclosure reports. The information discussed is made as of today's date and time and Africa Oil assumes no obligation to update or revise this information to reflect new events or circumstances except as required by law. The company's complete financial statements and related MD&A are available on our website and on SEDAR.
I will now pass you over to Pascal for the highlights of the second quarter, and Pascal over to you. Go ahead please.
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