ASX 200 energy share Karoon Energy Ltd (ASX: KAR) lifted 8.63% to an intraday high of $1.51 on Thursday after the company released its full-year FY24 results.
Karoon Energy shares opened at $1.46 and are currently changing hands for $1.45 apiece.
The oil and gas producer also announced the signing of a purchase agreement for the Bauna Project's Floating Production, Storage and Offloading facility (FPSO) for US$115 million.
Let's go to the FY24 report first.
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ASX 200 energy share sparking on Thursday
Here are the highlights of the FY24 report:
- Record production volume on NRI basis of 10.4 MMBoe, up 14% on the prior corresponding period (pcp)
- Sales volume on NRI basis of 10.7 MMBoe, up 23%
- Sales revenue of US$776.5 million, up from US$680 million pcp
- Underlying EBITDAX of US$492.4 million, up 13% pcp
- Underlying net profit after tax (NPAT) of US$214 million, up 3%
- Statutory NPAT of US$127.5 million, down 39% pcp
- Net debt on 31 December 2024 of US$8.8 million, down from US$103.7 million pcp
- Final dividend of 5 cents per share (unfranked) payable on 31 March
What else happened in FY24?
Karoon Energy said a full year of production at Who Dat, acquired in late 2023, helped offset lower revenue from the Baúna Project and higher finance and depreciation costs.
Karoon Energy said its statutory NPAT fell 39% pcp primarily due to non-cash charges.
These included a US$60.9 million non-cash deferred tax adjustment and a US$15.1 million expense related to the unsuccessful Who Dat West well.
While Karoon delivered its highest-ever production of 10.4 MMboe, this was about 20% less than anticipated due to operational challenges at both Baúna and Who Dat.
There was 7.5 MMbbl from the Baúna Project and 2.9 MMboe from Who Dat on an NRI basis.
Karoon Energy CEO and Managing Director, Dr Julian Fowles, said:
We recognise the impact this had on shareholder value over the period and are committed to addressing these issues and restoring reliable and predictable operations, as well as the market's confidence in the Company.
Karoon said there was US$85.7 million worth of capital returns to shareholders in FY24 through dividends and on-market share buybacks.
What did Karoon Energy management say?
Fowles commented:
Despite many challenges in 2024, Karoon's 2024 full year results demonstrate the strength of our more diversified production base and competitive cost structure.
We generated US$395 million of operating cash flow (including lease payments) over the year, which fully funded healthy shareholder returns, the Petrobras contingent payment and a successful drilling program in the USA.
Karoon said its guidance for FY25 remains unchanged.
What's next for this ASX 200 energy share?
Karoon Energy also announced that it has signed a purchase agreement to acquire 100% of the Baúna FPSO for US$115 million, plus about US$8 million in transaction costs.
The FPSO is the production facility for Karoon's Baúna Project in the Santos Basin in Brazil. It is owned by Altera & Ocyan, and a wholly-owned subsidiary of Karoon Energy leases it.
Fowles said:
In Brazil, the acquisition of the Baúna FPSO is aimed at taking direct control over a vital asset for Karoon, allowing us to improve operational efficiencies and extend Baúna field life.
The flotel-supported FPSO maintenance campaign has now commenced, with a focus on substantially reducing the maintenance backlog and improving equipment reliability.
This, and other planned work, is targeted at improving FPSO efficiency from
84.5% in 2024 (excluding scheduled shutdowns), to 88-92% in 2025.
ASX 200 energy share price snapshot
The Karoon Energy share price has fallen 22% over the past 12 months.
The S&P/ASX 200 Index (ASX: XJO) has lifted 8% over the same period.
