| Three Months Ending September 30, 2024 |
Three Months Ending June 30, 2024 |
||
| Average Daily Oil Production(1) | (bbls /d) | 22,210 | 21,068 |
| Oil Volumes Sold | (mbbls) | 1,765 | 1,870 |
| Oil Revenues | (US$’000) | 139,278 | 163,960 |
| Net Earnings/(Loss) | (US$’000) | (3,913) | 11,309 |
| Adjusted EBITDAX(2) | (US$’000) | 70,551 | 99,594 |
| Adjusted Pre-Tax Cashflow from Operations | (US$’000) | 63,810 | 87,117 |
| Adjusted Cashflow from Operations(2) | (US$’000) | 50,138 | 65,686 |
| Adjusted Opex(2) | (US$’000) | 53,788 | 54,171 |
| Adjusted Capex(2) | (US$’000) | 35,490 | 30,641 |
| Weighted common shares excellent – primary | (‘000 shares) | 106,982 | 105,919 |
| As at September 30, 2024 |
As at June 30, 2024 |
||
| Cash & money equivalents and Restricted money | (US$’000) | 155,943 | 146,819 |
| Debt | (US$’000) | Nil | Nil |
| Adjusted Net Working Capital | (US$’000) | 166,261 | 144,244 |
| Shareholder’s Equity | (US$’000) | 314,423 | 317,431 |
(1) Working curiosity share manufacturing, earlier than royalties.
(2) Non-IFRS monetary measure – see “Non-IFRS Financial Measures and Ratios” part within the MD&A.
Financial Update
The Company’s Q3 2024 monetary efficiency was characterised by ongoing sturdy manufacturing volumes, influenced by the impact of decrease oil gross sales due each to the timing of liftings and decrease prevailing oil costs, as in comparison with the earlier quarter.
Oil manufacturing was up, averaging 22.2 mbbls/d throughout Q3 2024 (Valeura’s working curiosity share, earlier than royalties), a rise of 5% from the prior quarter. Rates have been buoyed by a rise in output from the Nong Yao C growth coming on-line close to the tip of the quarter, however have been offset by a precautionary suspension of manufacturing operations on the Company’s Wassana discipline all through July 2024. At the tip of Q3, with Nong Yao C absolutely on-line and all property operating easily, the typical working curiosity share oil manufacturing fee earlier than royalties over the months of September and October 2024 averaged 26.4 mbbls/d.
Oil gross sales / liftings totalled 1.8 million bbls throughout Q3 2024, 6% beneath the prior quarter. At the tip of the Q3, Valeura held crude oil stock of 1.2 million bbls, which was roughly 30% larger than the stock at the beginning of Q3. 0.51 million bbls of this quarter-end stock have been lifted on October 1, 2024, and shall be recorded as income in This autumn 2024. As a results of the higher-than-usual stock place at finish Q3, the Company expects for This autumn gross sales to exceed manufacturing.
Price realisations averaged $78.9/bbl throughout Q3 2024. equating to an approximate $0.6/bbl premium to the month-to-month common Dubai crude oil in the course of the interval. Dubai crude is the important thing oil benchmark used for promoting crude oil within the Gulf of Thailand. All the Company’s crudes realised a premium to Dubai crude benchmark at each lifting throughout Q3. A big proportion of the Company’s gross sales occurred on the tail finish of Q3, which corresponded to a comparatively decrease commodity worth setting on the time, as in comparison with the typical over the complete interval. In addition, a widening of the Dubai crude low cost to Brent resulted in a reduction to the typical month-to-month Brent worth. The Company continues to anticipate full 12 months worth realisations roughly on par with the Brent benchmark, consistent with its steerage estimates.
The ensuing oil income throughout Q3 2024 was US$139.3 million, down 17% from Q2 2024 as a result of each decrease volumes lifted (leading to elevated stock) and decrease oil costs. One of the Company’s crude oil liftings (0.18 million bbls) occurred simply previous to the tip of Q3, because of the settlement delay between the lifting of crude oil (i.e. recorded as gross sales) and receipt of the proceeds, the roughly US$14 million worth of this lifting (Valeura’s working curiosity share, earlier than royalties) was acquired in October 2024 and are recorded as a receivable as at September 30, 2024. In addition, two additional cargos have been lifted and bought within the first week of This autumn 2024.
Operating bills throughout Q3 2024 have been US$47.3 million, against US$41.7 million in Q2 2024. Adjusted opex throughout Q3 was US$53.8 million, roughly on par with adjusted opex of US$54.2 within the prior quarter. When expressed on a per unit of manufacturing foundation, adjusted opex in Q3 2024 was US$26.3/bbl, roughly 7% decrease than US$28.3/bbl in Q2 2024.
Valeura generated adjusted EBITDAX of US$70.6 million in Q3 2024, roughly 29% decrease than in Q2 2024, largely because of decrease income.
During Q3 2024, the Company paid petroleum taxes of US$30.1 million, reflecting the primary half-year instalment of petroleum revenue taxes due in respect of its Nong Yao and Manora fields. No tax was due on the Wassana discipline given the prevailing tax losses within the subsidiary firm that held the Wassana asset at finish of the quarter.
After accounting for the impression of ongoing capital spending and working bills (which incorporates sure one-off gadgets referring to underwater inspection work on the Wassana discipline), as at September 30, 2024, the Company had a money place of US$155.9 million, which incorporates US$22.5 million held as restricted money. Valeura stays debt free.
Valeura’s adjusted internet working capital surplus elevated to US$166.3 million at September 30, 2024.
Operations Update
During Q3 2024, the Company had ongoing manufacturing operations on all of its Gulf of Thailand fields, comprised of the Jasmine, Nong Yao, Manora, and Wassana fields. One drilling rig and one workover rig have been underneath contract in the course of the quarter, with the workover rig launched in August 2024.
Valeura’s mixture working curiosity share of manufacturing earlier than royalties averaged 22.2 mbbls/d throughout Q3 2024. Rates towards the tip of the quarter have been larger, and the Company expects to keep up manufacturing at roughly 26 mbbls/d via the rest of the 12 months.
Jasmine/Ban Yen
Oil manufacturing earlier than royalties from the Jasmine/Ban Yen discipline, in Licence B5/27 (100% operated curiosity) averaged 7.6 mbbls/d throughout Q3 2024, a rise of three% from Q2 2024. Increased manufacturing charges replicate the start-up of two horizontal infill wells which have been drilled on the Jasmine A platform in Q3 2024, and collectively delivered oil at an preliminary (three-day common) fee of 1,050 bbls/d (earlier than royalties). In addition, Valeura completed work on the ultimate 4 wells of a six-well workover marketing campaign, which was in progress at the start of the quarter.
As of mid-September, following completion of the 2 Jasmine A infill growth wells, the Company’s contracted drilling rig went off contract for scheduled inspection and upkeep work in dry dock. In early This autumn 2024 the rig returned to the Jasmine discipline the place it’s at the moment conducting an infill drilling marketing campaign on the Jasmine D platform, which is anticipated to be accomplished in mid-November 2024.
Nong Yao
At the Nong Yao discipline, in Licence G11/48 (90% operated working curiosity), manufacturing elevated primarily because of the Nong Yao C growth, which got here on-line August 15, 2024. Following full ramp-up of charges from Nong Yao C, mixture manufacturing from the licence achieved charges averaging 11.6 mbbls/d over the past seven days of the quarter (Valeura working curiosity share earlier than royalties) and has remained steady to this point. This is a rise of 84% from Q2 2024.
Developing the Nong Yao C accumulation included drilling seven producer wells and one water injection properly, all which have been accomplished throughout Q3 2024. In addition, the Company drilled a profitable appraisal properly, and appraised further targets with an expanded scope of a number of the growth wells, which have created a list of future infill drilling targets inside the Nong Yao C accumulation. Overall drilling efficiency has exceeded administration’s expectations, with the Nong Yao C drilling programme being executed sooner than deliberate, and 25% beneath funds.
The Nong Yao discipline is now the Company’s largest supply of manufacturing. In addition, it additionally has the Company’s lowest per unit adjusted opex and its oil sometimes fetches a premium to the Brent benchmark. As a consequence, Nong Yao is the Company’s most money generative asset, a attribute which shall be considerably elevated going ahead because of the company restructuring introduced on November 5, 2024.
Wassana
Oil manufacturing on the Wassana discipline, in Licence G10/48 (100% operated curiosity), averaged 2.7 mbbls/d (earlier than royalties), a lower of 42% from Q2 2024 because of the impression of a suspension of manufacturing operations lasting all through the month of July 2024, whereas the Company performed underwater inspection work. Subsequent to the inspection, which affirmed the structural integrity of the power, manufacturing on the Wassana discipline resumed on August 5, 2024, and manufacturing charges elevated to pre-suspension ranges within the days thereafter.
During Q3, 2024, Valeura progressed entrance finish engineering and design work for the potential redevelopment of the Wassana discipline. The Company is concentrating on to be prepared for a last funding determination on the venture in late Q1 2025, with an final objective of extra absolutely commercialising the Wassana discipline’s reserves and assets and increasing the financial lifetime of the sector properly past 2030.
Manora
At the Manora discipline, in Licence G1/48 (70% operated working curiosity), Valeura’s working curiosity share of oil manufacturing earlier than royalties averaged 2.5 mbbls/d, a lower of seven% from Q2 2024. No wells have been drilled or labored over throughout Q3 2024.
Valeura intends to start out a drilling marketing campaign on the Manora asset shortly, comprised of three infill growth wells plus two appraisal wells.
Türkiye: West Thrace Deep Gas Play
The Company had no lively operations in Türkiye throughout Q3 2024 because it continued its seek for a farm-in companion to pursue the subsequent section of labor on the deep gasoline play, the place it holds pursuits starting from 63% to 100%. The third extension interval of the Banarli and West Thrace Exploration Licences, extending the time period of such licences till June 27, 2025, has been efficiently accomplished and formally gazetted. The Company intends to use for additional extensions sooner or later.
Guidance Update
On August 8, 2024, the Company introduced up to date steerage estimates for the complete 12 months 2024, together with a narrowed manufacturing steerage vary and lowered capex estimate. All different steerage estimates have been unchanged.
| Category |
Original 2024 Guidance |
Updated 2024 Guidance |
Nine months ended September 30, 2024 |
|
| Average Daily Oil Production(1) | (bbls/d) | 21,500 – 24,500 | 22,000 – 24,000 | 21,722 |
| Price realisations | (US$/bbl) | Approx. equal to the Brent crude benchmark | Approx. equal to the Brent crude benchmark | US$1.0/bbl premium to Brent |
| Adjusted opex(2) | (US$ million) | 205 – 235 | 205 – 235 | 160 |
| Adjusted capex(3) | (US$ million) | 135 – 155 | 135 – 145 | 95 |
| Exploration expense | (US$ million) | Approx. 8 | Approx. 8 | 7 |
(1) Working curiosity share manufacturing, earlier than royalties.
(2) Represents adjusted opex which is a non-IFRS monetary measure – see “Non-IFRS Financial Measures and Ratios” within the MD&A.
(3) Represents adjusted capex which is a non-IFRS monetary measure – see “Non-IFRS Financial Measures and Ratios” within the MD&A.
While oil manufacturing efficiency for the 9 months ended September 30, 2024 averaged beneath the up to date steerage vary, newer charges have been larger, averaging 26.4 mbbls/d via September and October 2024, and helps a forecast full 12 months manufacturing end result on the mid level of the steerage vary. The Company continues to anticipate all different metrics to be inside the forecast steerage estimates, with capex probably on the decrease finish of the vary.
The Company intends to announce steerage estimates for the complete 12 months 2025 at roughly finish of 2024.
Corporate Restructuring
Effective November 1, 2024, Valeura accomplished an inside restructuring such that its working pursuits within the Nong Yao, Manora, and Wassana fields are actually held by a single wholly-owned subsidiary. As a consequence, Valeura will instantly pool all future prices and historic petroleum revenue tax loss carry-forwards related to these property. Notably, this consists of estimated accessible cumulative tax loss carry-forwards of US$397 million, at September 30, 2024(1). With a petroleum tax fee of fifty%, Valeura expects to understand worth because of quick and near-term extra money movement from this restructuring.
Valeura has beforehand indicated that the tax obligations referring to the earlier subsidiary corporations’ association are required to be assessed instantly and settled inside the subsequent 30 days. The Company can now say that the evaluation and settlement will solely happen in March 2025. Taxation preparations for the Jasmine discipline, which is ruled by a distinct classic of fiscal phrases (referred to as Thai I), and held in a separate subsidiary entity, will proceed unchanged.
(1) Unaudited inside administration estimate as at September 30, 2024, based mostly on Thai baht change fee as of November 1, 2024, topic to overview by tax advisors and auditors.
Share Buyback Programme
Given the Company’s sturdy money place and outlook for enhanced near-term money movement, Valeura believes it has the monetary capability to help each inorganic development alternatives in addition to shareholder returns. Valeura’s administration believes shareholder returns within the near-term are greatest achieved via share buybacks.
The Company acquired approval from the Toronto Stock Exchange (“TSX”) to undertake a share buyback programme through the TSX’s established regime for regular course issuer bids (“NCIB”). This programme has been authorised for a one-year interval commencing on November 14, 2024 and ending on November 13, 2025, or such earlier date because the Company could decide, or upon completion of purchases pursuant to the NCIB.
The Company will make use of an automated share buy plan with a delegated dealer, enabling the share buyback programme to proceed throughout relevant regulatory restrictions or inside buying and selling black-out intervals. Notwithstanding, Valeura intends to utilise the NCIB judiciously, executing buybacks on an opportunistic foundation, reflecting administration’s perception that the prevailing market worth of the shares could not, infrequently, replicate the Company’s intrinsic worth and future prospects.
Webinar
Valeura’s administration crew will host an investor and analyst webinar on Thursday November 14, 2024 at 08:00 Calgary / 15:00 London / 22:00 Bangkok / 23:00 Singapore to debate right now’s announcement. Please register prematurely through the hyperlink beneath.
Registration hyperlink: @a196a1a0-4579-4a0c-b3a3-855f4db8f64b
As an alternate, an audio solely feed of the occasion is on the market by telephone utilizing the Conference ID and dial-in numbers beneath.
Thailand: +66 2 026 9035,,428302927#
Singapore: +65 6450 6302,,428302927#
Canada: (833) 845-9589,,428302927#
Türkiye: 0800 142 034779,,428302927#
United States: (833) 846-5630,,428302927#
United Kingdom: 0800 640 3933,,428302927#
Phone convention ID: 428 302 927#
For additional data, please contact:
Valeura Energy Inc. (General Corporate Enquiries) +65 6373 6940
Sean Guest, President and CEO
Yacine Ben-Meriem, CFO
…
Valeura Energy Inc. (Investor and Media Enquiries) +1 403 975 6752 / +44 7392 940495
Robin James Martin, Vice President, Communications and Investor Relations
…
Contact particulars for the Company’s advisors, protecting analysis analysts and joint brokers, together with Auctus Advisors LLP, Canaccord Genuity Ltd (UK), Cormark Securities Inc., Research Capital Corporation, and Stifel Nicolaus Europe Limited, are listed on the Company’s web site at .
About the Company
Valeura Energy Inc. is a Canadian public firm engaged within the exploration, growth and manufacturing of petroleum and pure gasoline in Thailand and in Türkiye. The Company is pursuing a growth-oriented technique and intends to re-invest into its producing asset portfolio and to deploy assets towards additional natural and inorganic development in Southeast Asia. Valeura aspires towards worth accretive development for stakeholders whereas adhering to excessive requirements of environmental, social and governance duty.
Additional data referring to Valeura can be accessible on SEDAR+ at .
Advisory and Caution Regarding Forward-Looking Information
Certain data included on this information launch constitutes forward-looking data underneath relevant securities laws. Such forward-looking data is for the aim of explaining administration’s present expectations and plans referring to the longer term. Readers are cautioned that reliance on such data will not be acceptable for different functions, reminiscent of making funding selections. Forward-looking data sometimes incorporates statements with phrases reminiscent of “anticipate”, “consider”, “anticipate”, “plan”, “intend”, “estimate”, “suggest”, “venture”, “goal” or related phrases suggesting future outcomes or statements relating to an outlook. Forward-looking data on this information launch consists of, however isn’t restricted to, anticipated higher-than regular gross sales in This autumn 2024; the Company’s expectations that it’s going to obtain all its steerage estimates for 2024 whereas on the identical time having decreased its capex; the consolidation of the Thai III property right into a singly subsidiary growing the Company’s money movement era; the Company’s means to use its substantial tax loss carry-forwards to the mixed revenue of its fields and the ensuing impression on money flows; the mixed results of upper manufacturing and greater than typical oil in stock on the finish of Q3 making a uniquely sturdy monetary efficiency in This autumn; Valeura being properly positioned to proceed pursuing worth via development, whereas offering returns to shareholders; the timing of the graduation of the NCIB; the recording of income derived from the 0.51 million bbls lifted on October 1, 2024 in This autumn 2024; the Company’s anticipation that the complete 12 months worth realizations shall be roughly on par with the Brent benchmark; Valeura’s intention to right away pool all future prices and historic petroleum revenue tax loss carry-forwards related to the Nong Yao, Manora and Wassana fields; Valeura’s expectations relating to acquiring a big worth from its company restructuring; the Company’s expectations that the evaluation and settlement of tax obligations associated to the earlier subsidiary will happen in March 2025; the Company’s expectation that it’s going to keep manufacturing at present ranges all through the rest of the 12 months; the Company’s anticipated timing for the completion of the infill drilling marketing campaign on the Jasmine/Ban Yen fields; the Company’s anticipated timing for a last funding determination on the Wassana discipline; Valeura’s intention to start out a drilling marketing campaign on the Manora discipline in This autumn 2024, and the composition of such drilling marketing campaign; the Company’s intention to use for subsequent extensions of the Banarli and West Thrace Exploration licences; the Company’s expectations that every one metrics shall be inside the Company’s forecasted steerage for 2024; the Company’s anticipated timing for the announcement of its steerage estimates for 2025; the Company’s plan to enter into an automated share buy plan; and the Company’s expectation to execute buybacks on an opportunistic foundation. Although the Company believes the expectations and assumptions mirrored in such forward-looking data are cheap, they could show to be incorrect.
Forward-looking data is predicated on administration’s present expectations and assumptions relating to, amongst different issues: political stability of the areas through which the Company is working; continued security of operations and talent to proceed in a well timed method; continued operations of and approvals forthcoming from governments and regulators in a way in step with previous conduct; future drilling exercise on the required/anticipated timelines; the prospectivity of the Company’s lands; the continued beneficial pricing and working netbacks throughout its enterprise; future manufacturing charges and related working netbacks and money movement; decline charges; future sources of funding; future financial circumstances; the impression of inflation of future prices; future forex change charges; rates of interest; the power to satisfy drilling deadlines and fulfil commitments underneath licences and leases; future commodity costs; the impression of the Russian invasion of Ukraine; royalty charges and taxes; administration’s estimate of cumulative tax losses being right; future capital and different expenditures; the success obtained in drilling new wells and dealing over present wellbores; the efficiency of wells and services; the provision of the required capital to funds its exploration, growth and different operations, and the power of the Company to satisfy its commitments and monetary obligations; the power of the Company to safe satisfactory processing, transportation, fractionation and storage capability on acceptable phrases; the capability and reliability of services; the appliance of regulatory necessities respecting abandonment and reclamation; the recoverability of the Company’s reserves and contingent assets; future development; the sufficiency of budgeted capital expenditures in finishing up deliberate actions; the impression of accelerating competitors; the power to effectively combine property and workers acquired via acquisitions; international vitality insurance policies going ahead; future debt ranges; and the Company’s continued means to acquire and retain certified employees and gear in a well timed and value environment friendly method. In addition, the Company’s work programmes and budgets are partially based mostly upon anticipated settlement amongst three way partnership companions and related exploration, growth and advertising and marketing plans and anticipated prices and gross sales costs, that are topic to alter based mostly on, amongst different issues, the precise outcomes of drilling and associated exercise, availability of drilling, offshore storage and offloading services and different specialised oilfield gear and repair suppliers, adjustments in companions’ plans and surprising delays and adjustments in market circumstances. Although the Company believes the expectations and assumptions mirrored in such forward-looking data are cheap, they could show to be incorrect.
Forward-looking data includes vital recognized and unknown dangers and uncertainties. Exploration, appraisal, and growth of oil and pure gasoline reserves and assets are speculative actions and contain a level of threat. Various elements might trigger precise outcomes to vary materially from these anticipated by the Company together with, however not restricted to: the power of administration to execute its marketing strategy or realise anticipated advantages from acquisitions; the chance of disruptions from public well being emergencies and/or pandemics; competitors for specialised gear and human assets; the Company’s means to handle development; the Company’s means to handle the prices associated to inflation; disruption in provide chains; the chance of forex fluctuations; adjustments in rates of interest, oil and gasoline costs and netbacks; the chance that the Company’s tax advisors’ and/or auditors’ evaluation of the Company’s cumulative tax losses varies considerably from administration’s expectations of the identical; potential adjustments in three way partnership companion methods and participation in work programmes; uncertainty relating to the contemplated timelines and prices for work programme execution; the dangers of disruption to operations and entry to worksites; potential adjustments in legal guidelines and rules, the uncertainty relating to authorities and different approvals; counterparty threat; the chance that financing will not be accessible; dangers related to climate delays and pure disasters; and the chance related to worldwide exercise. See the latest annual data kind and administration’s dialogue and evaluation of the Company for an in depth dialogue of the chance elements.
The forward-looking data contained on this new launch is made as of the date hereof and the Company undertakes no obligation to replace publicly or revise any forward-looking data, whether or not because of new data, future occasions or in any other case, except required by relevant securities legal guidelines. The forward-looking data contained on this new launch is expressly certified by this cautionary assertion.
This information launch doesn’t represent a suggestion to promote or the solicitation of a suggestion to purchase securities in any jurisdiction, together with the place such supply can be illegal. This information launch isn’t for distribution or launch, straight or not directly, in or into the United States, Ireland, the Republic of South Africa or Japan or every other jurisdiction through which its publication or distribution can be illegal.
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that time period is outlined within the insurance policies of the Toronto Stock Exchange) accepts duty for the adequacy or accuracy of this information launch.
This data is offered by Reach, the non-regulatory press launch distribution service of RNS, a part of the London Stock Exchange. Terms and circumstances referring to the use and distribution of this data could apply. For additional data, please contact … or go to .
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