Half Year 2024 Gulf Keystone Petroleum Ltd Earnings Call (Q&A) Transcript
Key Points
- Gulf Keystone Petroleum Ltd (GUKYF) achieved a solid operational and financial performance in the first half of 2024, with no lost time incidents for over 590 days.
- The company returned to profitability and free cash flow generation, facilitated by robust local sales volumes and sustained capital and cost discipline.
- Gulf Keystone Petroleum Ltd (GUKYF) strengthened its balance sheet and restarted shareholder distributions, returning $25 million to shareholders via dividends and buybacks year to date.
- The Shaikan field is producing close to its maximum capacity, responding well to the ramp-up in local market demand.
- Adjusted EBITDA increased by 6% to $36 million in the first half of the year, driven by strong production and cost control.
- The Iraq-Turkey pipeline remains closed, impacting the company's ability to export and sell at international prices.
- Realized prices for local sales are significantly discounted, with crude sold at $25 to $28 per barrel, almost a $60 discount to Brent.
- The company faces unpredictability in the local market, with volumes and prices driven by local supply and demand dynamics.
- Production is expected to be impacted by a temporary shutdown of PF-1 in November, resulting in a loss of around 26,000 barrels of oil per day for three weeks.
- The company has over $150 million in outstanding export sales receivables, with repayment dependent on the reopening of the export pipeline.
Good afternoon, ladies and gentlemen. Welcome to the Gulf Keystone Petroleum Limited half-year results investor presentation. (Operator Instructions)
Now before we begin, as usual, we would just like to submit the following poll. If you give that your kind attention, I'm sure the company would be most grateful. I would now like to hand you over to CEO, Jon Harris. Jon, good afternoon, sir.
Yeah. Thanks, Jake. Welcome to Gulf Keystone's 2024 half-year results. My name is Jon Harris, and I'm the CEO. I'm joined by Gabriel Papineau-Legris, our Chief Financial Officer, who will be taking you through our financial performance shortly. I'm pleased to be able to speak directly to our retail shareholders who account for an important part of our share register. We are continually looking for opportunities to engage with and receive feedback from all of our investors, and we are pleased that you have joined us today. After the presentation, we'll be happy to take your questions
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