In This Article:
-
Net Cash Position: $17.5 million at the half-year mark.
-
Debt Status: Fully repaid all outstanding debt, currently debt-free.
-
Receivables: Over $20 million received year-to-date, with 55% of year-end 2023 receivables paid.
-
Operating Cash Flow: $28 million for the first half of 2024.
-
Capital Expenditure: Just under $7 million for the first half, with increased spending expected in the second half.
-
Interim Dividend: 0.36p per share, a 10% increase, with an annual yield of about 7%.
-
Operating Free Cash Flow Yield: 21%.
-
Free Cash Flow: $20 million from Vietnam and just under $13 million from Egypt.
-
Shareholder Returns: $9 million allocated for shareholder returns in 2024.
-
Cash Flow from Operations: Under $52 million, with $28 million operating cash flow after government payments and working capital.
Release Date: September 18, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Pharos Energy PLC (SOCLF) has become debt-free, having fully repaid all outstanding debt, including a legacy RBL and a facility with the National Bank of Egypt.
-
The company announced a 10% increase in its interim dividend, reflecting a strong financial position and commitment to shareholder returns.
-
Pharos Energy PLC (SOCLF) has received over $20 million in receivables year-to-date, significantly improving its cash flow position.
-
The company has solid assets in Vietnam and Egypt, providing stable production and reliable cash flow, which supports its sustained dividend policy.
-
Pharos Energy PLC (SOCLF) is actively pursuing license extensions in Vietnam and a consolidation proposal in Egypt to unlock further growth potential.
Negative Points
-
The company faces challenges in securing a drilling slot and farm-in partners for its exploration project in Block 125, Vietnam, which has delayed progress.
-
Production guidance has shown a downward trend over the past few years, with mature assets in Vietnam requiring careful management to sustain production levels.
-
The macroeconomic environment in Egypt has impacted the ramp-up of activities and production growth, necessitating a consolidation project to improve fiscal terms.
-
The timeline for receiving Vietnam license extensions is uncertain, as the approval process is not within the company's control.
-
The waterflood projects in Egypt have not yet yielded significant production increases, although they have helped stabilize production levels.
Q & A Highlights
Q: When will Block 125 drilling happen, and how many more years will it take? A: Mohamed Sayed, COO, explained that the company has been working on materializing the opportunity at Block 125, having completed seismic processing and interpretation. They have ordered long-lead items to preserve optionality for drilling next year. However, securing a drilling slot and farm-in partners has been challenging, and no hard timeframe can be provided yet.