Q2 2024 Newmed Energy LP Earnings Call Transcript
Key Points
- NewMed Energy LP (DKDRF) reported a net profit of $137 million for Q2, marking a 47% increase from the previous year.
- The company achieved a significant increase in sales, reaching 2.8 BCM, primarily due to increased sales to the Egyptian market.
- EBITDA for the quarter exceeded $200 million, reflecting strong financial performance.
- A dividend distribution of $65 million was announced, adding to the $120 million already distributed this year.
- The company is on track with its Leviathan expansion project, which is expected to increase capacity significantly by mid-next year.
- Operating expenses increased by $6 million, impacting overall profitability.
- The company faces challenges in completing the engineering and securing tenders for drilling and subsea activities for the Leviathan expansion.
- There is a dependency on the Egyptian market, which could pose risks if market conditions change.
- Despite strong financial performance, the company still holds a significant total debt of approximately $1.75 billion.
- The timeline for the second phase of Leviathan's expansion is ambitious, with a target completion by mid-2028, which may face delays.
Good noon for everybody, and thank you for joining us for the second-quarter financial result. We'll take you through the second-quarter results. But as well, we will discuss some of our expansion activities. And in the end, if you have any questions, we'll be more than happy to the Chinese.
So the key highlights of the second quarter is obviously the sales. We sold 2.8 BCM, which is equivalent to 1.1 bcf a day, and we end up with the $137 million net profit and EBITDA -- higher than $200 million EBITDA.
We are continuing with the flow line of Leviathan, and the budget is on time, on budget. We are expecting to and finish this project by mid-next year. And by that, we would increase the capacity of Leviathan from the current capacity to around 1.45 or 1.5 bcf a day, so almost 15 BCM yearly.
And more than that, as you know, we just take investment decision to do FEED, both engineering and design of Leviathan Phase 2. We'll take you through that. We'll explain what it is, what we are going to do. And we'll discuss as well the financial result.
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