Half-Year 2024 results

17 September 2024—Singapore: Jadestone Energy plc (AIM:JSE) (“Jadestone” or the “Company”), an independent oil and gas production company and its subsidiaries (the “Group”), focused on the Asia-Pacific region, reports its unaudited condensed consolidated interim financial statements, as at and for the six-month period ended 30 June 2024 (the “financial statements”).

 Management will host a webcast at 9:00 a.m. UK time today, details of which can be found in the announcement below.

 Key updates: 

• Akatara development project achieved mechanical completion in June 2024, with sales gas production commencing in July 2024 and reaching c.14mmscf/d. Production has been recently curtailed by a small mechanical issue in the gas processing facility’s refrigeration compressors, with repairs underway. These repairs and their associated cost remain the responsibility of the EPCI contractor.
• Positive progress on the Montara oil storage tank repair and maintenance programme, which has allowed for the permanent stationing of shuttle tanker at the field to be discontinued in late-August, earlier than expected.
• Year-to date 2024 production (to end August 2024) has averaged 17,500 boe/d, a c.42% increase year-on-year due to the success of both organic and acquisition driven growth over the period. Annual 2024 production guidance is reiterated at 18,500 – 21,000 boe/d, with an expected outcome towards the lower end of the range, given year-to-date production and ongoing Akatara activities.
• Operating expenditure guidance for 2024 is reiterated at US$240-280 million (excluding forecast royalties and carbon taxes of c.US$30 million),
• Capital expenditure and other cash expenditure guidance is unchanged at US$80-110 million and US$62 million respectively,
• US$31.1 million loss after tax for the first half of 2024, which includes a US$45.8 million non-cash charge to production costs related to the CWLH 2 acquisition, which closed in February 2024.
• Net debt of US$69.1 million at 30 June 2024 reflects c.US$130.9 million of consolidated Group cash balances and US$200.0 million of debt drawn under the Group’s reserves-based lending (“RBL”) facility. As at 31 August 2024, net debt was US$94.6 million, based on consolidated Group cash balances of US$105.4 million and US$200.0 million of debt drawn under the RBL facility. The Group expects to receive c.US$57 million of proceeds in September relating to August liftings. The Group’s US$31.9 million working capital facility was undrawn at the end of the period.

Paul Blakeley, President and CEO commented:

“Increased production, coupled with robust price realisations and flat underlying operating costs, resulted in an improving financial performance in the first half of 2024, with adjusted EBITDAX and operating cash flows significantly higher year-on-year.

Our first half performance also benefited from the increasing diversification of the portfolio as we build greater reliability and resilience. The adverse weather which impacted our Australia production early in the year was offset by higher production from Malaysia, an increase in our CWLH interest and strong output from Sinphuhorm. Montara performance continues to improve with greater facility reliability year-to-date, and good progress on the FPSO tank and repair programme, which allowed us to release the temporary storage tanker at Montara a few months earlier than planned.  We also added a medium-term growth option by signing the SFA Cluster PSC offshore Malaysia, and we continue to work hard on a gas sales agreement for our Vietnam resource.

Jadestone’s primary focus so far in 2024 has been the completion and commissioning of the Akatara development project onshore Indonesia. The construction phase was completed on schedule at the end of the second quarter, followed by the start of both gas and condensate sales. Notwithstanding the current curtailment of production for a repair to the plant’s refrigeration compressors, the progress at Akatara, including an excellent safety record, is a major step forward for the Group, and will diversify our cash flow generation with more low cost and high value production.”

Link to full announcement.

Webcast

The Company will host an investor and analyst presentation at 9:00 a.m. (BST) on Tuesday, 17 September 2024, including a question-and-answer session, accessible through the link below:

Webcast link: https://www.investis-live.com/jadestone-energy/66c5c57a7caa6c19003474c9/maert

Event title: Jadestone Energy plc first-half 2024 results

Time: 9:00 a.m. (BST)

Date: 17 September 2024

To join the presentation by phone, please use the below dial-in details from the United Kingdom or the link for global dial-in details:

United Kingdom (Local): +44 20 3936 2999

United Kingdom (Toll-Free): +44 800 358 1035

Global Dial-In Details: https://www.netroadshow.com/events/global-numbers?confId=70236

Access Code: 288973