Energean PLC (FRA:1YE)
€ 12.19 0.67 (5.82%) Market Cap: 2.15 Bil Enterprise Value: 4.98 Bil PE Ratio: 10.68 PB Ratio: 3.40 GF Score: 70/100

Half Year 2024 Energean PLC Earnings Call Transcript

Sep 11, 2024 / 07:30AM GMT
Release Date Price: €10.34 (-1.62%)

Key Points

Positve
  • Energean PLC (EERGF) reported record production levels, with monthly production reaching nearly 180,000 barrels a day.
  • First half production increased by over 38% to 146,000 barrels a day compared to the previous period.
  • Group revenues rose by 47% year-on-year to $867 million, with EBITDAX increasing by 65% to $568 million.
  • The company has secured $2.4 billion in new gas contracts in Israel, ensuring a strong revenue stream.
  • Energean PLC (EERGF) is committed to returning $1 billion to shareholders by the end of 2025, with a declared dividend of $0.30 per share.
Negative
  • Operations in Morocco have not met expectations, with preliminary results falling short.
  • The geopolitical situation in Israel poses potential risks, although operations have not been affected so far.
  • The company is facing a capital-intensive period with ongoing developments like Katlan and Cassiopea.
  • Energean PLC (EERGF) has a high concentration of business in Israel, raising concerns about geopolitical risk exposure.
  • The Prinos Carbon Storage project faces commercial challenges and requires significant support from the EU and Greek government.
Mathios Rigas
Energean PLC - Managing Director

Good morning, everyone, and thanks for joining our call today. I would like to start with some highlights and key points from our results for the first half of the year, which has been a fantastic six months for us. We are seeing record production and growth and monthly production at the moment is over 177,000, close to 180,000 barrels a day. I'm truly honored and very happy to be leading the organization that has grown so fast and delivered on what we promised.

First half production increased to 146,000 barrels a day, that is over 38% increase from the previous period. Quick update on Israel and our operations. Everybody knows we are in a challenging geopolitical situation with a war going on but this has had no effect on our operations so far.

The uptime of our FPSO remains at a remarkable very high level of over 99%. The machine is working exceptionally well. And demand in the summer was very strong as we expected. So we've been producing at maximum rates throughout the summer.

Of course, these great numbers turn into a very

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