RCS - Valeura Energy Inc. - Second Quarter 2025 Results
07/08/2025 08:15
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RNS Number : 3897U Valeura Energy Inc. 07 August 2025
Second Quarter 2025 Results
Singapore, August 7, 2025: Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF)
("Valeura" or the "Company") reports its unaudited financial and operating
results for the three and six month periods ended June 30, 2025.
Q2 Highlights
· Oil production of 21.4 mbbls/d((2)) and oil sales of 1.9 million
bbls;
· Average realised price of US$67.9/bbl, generating revenue of US$129.3
million;
· Adjusted EBITDAX of US$62.4 million((1)) and adjusted after tax cashflow
from operations of US$50.5 million((1));
· Cash and net cash balance as of June 30, 2025 of US$242.0
million((1),(3)), with no debt;
· Adjusted Working Capital as of June 30, 2025 of US$261.6 million;
· Final investment decision ("FID") taken on the Wassana field
redevelopment, and
· No change to the updated guidance disclosed post the Wassana field
redevelopment FID.
Recent Achievements
· Recent production averaged 23,150 bbls/d((2),(5)), an increase of
approximately 8% over the Q2 average;
· Strategic farm-in agreement with a subsidiary of PTT Exploration and
Production Plc ("PTTEP")((4));
o 40% working interest in blocks G1/65 and G3/65, offshore Gulf of Thailand;
o Earning by payment of US$14.7 million in back costs and carried US$3.7
million seismic acquisition;
o Substantial acreage expansion in Thailand from 2,623 km(2) to 22,757
km(2);
o Infrastructure-led growth potential, with existing discoveries in tie-back
range of infrastructure;
o Immediate activity with four wells already drilled in 2025 and 3D seismic
acquisition commencing this quarter; and.
· 2024 Sustainability Report published, highlighting a 20% reduction in
greenhouse gas emissions intensity, compared to the previous year.
(1) Non-IFRS financial measure or non-IFRS ratio - see "Non-IFRS Financial
Measures and Ratios" section below.
(2) Working interest share production, before royalties.
(3) Includes restricted cash of US$23.2 million.
(4) Subject to government of Thailand approval.
(5) August production ending August 5, 2025.
Dr. Sean Guest, President and CEO commented:
"We are taking bold steps to evolve our business and to assure value creation
through growth in the long-term. During Q2 we took a positive final
investment decision on the Wassana field redevelopment project and have now
started the construction phase. With a new central processing platform,
designed to accommodate future tie-in of satellite developments, we envisage a
production start in Q2 2027 and thereafter, a future for the asset spanning at
least the next two decades.
More recently, our strategic farm-in with PTTEP will add a new level of depth
and diversity to our portfolio. We see opportunities for infrastructure-led
gas developments, promising oil opportunities, and an exploration set that
entails a nearly ten-fold expansion in gross acreage. All of this within our
core Gulf of Thailand jurisdiction, and immediately adjacent to our operated
facilities and large gas-producing fields. As a result, the future of our
business is taking shape, and our team is excited to pursue these ambitions
with vigour.
As we begin to invest into these longer-term opportunities, we are vigilant
about maintaining a strong financial position to support our endeavours. We
believe our Q2 2025 performance illustrates the strength of our underlying
asset base, which serves as the engine to fund growth. Even against the
backdrop of lower global oil prices and lower liftings, we generated over
US$50 million Adjusted Cashflow from Operations((1)), on an after-tax basis.
Our business remains fundamentally healthy and capable of supporting our
investment plans. Ultimately, we have ended the quarter with Adjusted Net
Working Capital((1)) of US$261.6 million, and no debt.
At the same time, we continue to prioritise safety and sustainability in
everything we do. We have recently published our 2024 Sustainability Report,
which demonstrates the positive steps we are taking on the important
dimensions of environmental stewardship, social responsibility, and corporate
governance. In particular, we are pleased to highlight a 20% reduction in
greenhouse gas emissions intensity in Valeura's first full year of operating
these assets. These guiding principles govern our actions both as we look to
continue value generation from our existing portfolio, and also as we seek
further inorganic growth."
(1) Non-IFRS financial measure or non-IFRS ratio - see "Non-IFRS
Financial Measures and Ratios" section below.
Financial and Operating Results Summary
Three months ended Three months ended Delta (%) Three months ended Delta (%)
Jun 30, 2025 Mar 31, 2025 Jun 30, 2024
Oil Production((1)) ('000 bbls) 1,949 2,147 -9% 1,917 2%
Average Daily Oil Production((1)) (bbls/d) 21,412 23,853 -10% 21,068 2%
Average Realised Price (US$/bbl) 67.9 78.7 -14% 87.7 -23%
Oil Volumes Sold ('000 bbls) 1,902 1,881 1% 1,870 2%
Oil Revenue (US$'000) 129,264 148,081 -13% 163,960 -21%
Net Income (US$'000) 5,449 14,073 -61% 11,309 -52%
Adjusted EBITDAX((2)) (US$'000) 62,380 87,216 -28% 99,594 -37%
Adjusted Pre-Tax Cashflow from Operations((2)) (US$'000) 51,555 74,384 -31% 87,117 -41%
Adjusted Cashflow from Operations((2)) (US$'000) 50,534 73,954 -32% 65,686 -23%
Operating Expenses (US$'000) 43,796 38,852 13% 41,694 5%
Adjusted Opex((2)) (US$'000) 54,621 51,684 6% 54,171 1%
Operating Expenses per bbl (US$/bbl) 22.5 18.1 24% 21.7 4%
Adjusted Opex per bbl((2)) (US$/bbl) 28.0 24.1 16% 28.3 -1%
Adjusted Capex((2)) (US$'000) 48,935 32,899 49% 30,641 60%
Weighted average shares outstanding - basic ('000 shares) 106,258 106,532 0% 105,919 0%
As at As at Delta (%) As at Delta (%)
Jun 30, 2025 Mar 31, 2025 Jun 30, 2024
Cash & Cash equivalents((3)) (US$'000) 241,984 238,871 1% 148,819 63%
Adjusted Net Working Capital((2)) (US$'000) 261,575 253,511 3% 144,224 81%
Shareholder's Equity (US$'000) 542,693 538,137 1% 317,431 71%
(1) Working interest share production before royalties.
(2) Non-IFRS financial measure or non-IFRS ratio - see "Non-IFRS
Financial Measures and Ratios" section below.
(3) Includes restricted cash of US$23.2 million.
Financial Update
The Company's Q2 2025 financial performance reflects ongoing production
operations at all four of its fields in the offshore Gulf of Thailand.
Valeura's working interest share production before royalties totalled 1.95
million bbls during Q2 2025, an increase of 2% from Q2 2024, reflecting the
addition of production from the Nong Yao C facility in Q3 2024, offset by
natural declines across the portfolio.
Oil sales totalled 1.90 million bbls during Q2 2025, which was less than the
volume produced, and therefore contributed to an oil inventory increase to
0.93 million bbls at June 30, 2025. As all of the Company's oil production
is stored in floating offshore vessels before being sold in parcels of
approximately 0.2 - 0.3 million bbls, at any given time the Company maintains
some quantity of oil held in inventory. A 0.24 million bbls parcel of crude
oil was sold just after the end of the Q2 2025 period on July 1, 2025 for
US$19.2 million.
Price realisations averaged US$67.9/bbl, which was 23% lower than the same
period in 2024, reflecting lower global benchmark oil prices. Oil sales
prices reflect a US$0.7/bbl premium to the Brent crude oil price in Q2 2025,
which is consistent with the Company's general expectation of approximate
parity to this benchmark.
Operating expenses during Q2 2025 were US$43.8 million, an increase of 5%
compared to Q2 2024. Along with operating expenses, the Company includes the
price of leases for its floating offshore infrastructure (being US$10.8
million) to derive an Adjusted Opex((1)) of US$54.6 million in Q2 2025, which
equates to a per-unit rate of US$28.0/bbl. Adjusted Opex and the per bbl
unit rate for Q2 2025 were essentially unchanged from Q2 2024, but the
increase in unit rate relative to Q1 2025 is largely due to the lower
production, as expected, in the second quarter.
Valeura generated Adjusted Pre-Tax Cashflow from Operations((1)) of US$51.6
million, which was 41% lower than Q2 2024, primarily reflecting lower
benchmark oil prices. On an after-tax basis, Adjusted Cashflow from Operations
was US$50.6 million in Q2 2025, 23% lower than Q2 2024. The relatively
smaller difference between pre-tax and post-tax Adjusted Cashflow from
Operations reflects the more tax-efficient corporate structure, implemented in
Q4 2024, which has enabled a more optimised application of tax loss
carry-forwards.
Cash tax payments during Q2 2025 were US$15.8 million, relating primarily to
tax obligations arising from the 2024 production from the Jasmine field.
Taxable income accrued relating to the Nong Yao, Wassana, and Manora fields
was fully offset by the application of tax loss carry-forwards. No further
cash tax payments are anticipated in 2025. Valeura made cash outlays in
respect of its operating costs and capex of US$48.9 million. As a result,
Valeura's cash position at June 30, 2025 was US$242.0 million, inclusive of
restricted cash of US$23.2 million. In addition, cash from a June 25, 2025
lifting was not received until early in the following quarter. As a result,
the Company has recorded a net crude((2)) receivable in the amount of US$19.6
million to reflect the timing of payment happening in Q3 rather than Q2
2025. Valeura's net working capital surplus increased to US$261.6 million at
June 30, 2025, 81% higher than at June 30, 2024.
(1) Non-IFRS financial measure or non-IFRS ratio - see "Non-IFRS
Financial Measures and Ratios" section below.
(2) Excludes VAT.
Operations Update
During Q2 2025, Valeura had ongoing production operations at all of its Gulf
of Thailand fields, including Jasmine, Manora, Nong Yao, and Wassana. Total
working interest share oil production before royalties averaged 21,412
bbls/d. Q2 was anticipated to be the lowest production quarter of 2025, with
rates therefore weighted to the second half of 2025. Recently, drilling and
facilities operations have increased production. For the first five days of
August, Valeura's working interest share production before royalties averaged
23,150 bbls/d, an increase of approximately 8% over the Q2 average. One
drilling rig was under contract throughout the quarter.
Jasmine/Ban Yen
Oil production before royalties from the Jasmine/Ban Yen field, in Licence
B5/27 (100% operated interest) averaged 7,880 bbls/d during Q2 2025. The
Company conducted its annual maintenance shutdown in late April, affecting
production for approximately five days.
During the quarter, Valeura completed a drilling campaign on the block which
it had started in February 2025, comprised of eight wells, six of which were
development-oriented and are now contributing to production from the asset.
Results from the remaining (exploration and appraisal) wells are being
incorporated into further development planning for the block and will form the
basis of additional drilling campaigns planned for later in 2025 and 2026.
In addition, the Company progressed commissioning of a low-BTU gas generator
on the Jasmine B platform which is now online and utilising a waste gas stream
for power generation. This is expected to reduce diesel consumption and
associated GHG emissions going forward.
Nong Yao
The Company's Q2 2025 working interest share oil production before royalties
from the Nong Yao field, in Licence G11/48 (90% operated working interest),
averaged 8,401 bbls/d.
During Q2, the Company mobilised its contracted drilling rig to the Nong Yao
field, where it is currently executing a 10-well development drilling
campaign, covering all three of the field's wellhead platforms. The Company
anticipates completion of the Nong Yao drilling programme in Q4 2025.
Wassana
During Q2 2025, oil production before royalties from the Wassana field, in
Licence G10/48 (100% operated interest) averaged 3,140 bbls/d. Valeura also
conducted a workover to optimise performance of a production well.
In May 2025, Valeura took FID on the Wassana redevelopment project, which will
entail deployment of a new-build central processing platform facility on the
field. Construction activities have commenced and the project is on track.
First production is planned for Q2 2027.
Given the new redevelopment project, Valeura is not planning to drill any
further wells from the field's existing development facility, the mobile
offshore production unit ("MOPU") Ingenium. As a result the Company's focus
has shifted to ensuring facility integrity, uptime, and reliability.
Recently the Company completed a workover of the field's produced water
injection well which has resulted in an increase in water-handling and hence
also oil production.
Manora
Valeura's working interest share production before royalties from the Manora
field, in Licence G1/48 (70% operated working interest) averaged 1,991 bbls/d
during Q2 2025. Rates were impacted by planned maintenance shutdown work
performed at the end of April 2025.
No wells were drilled on the Manora field, but the Company performed two well
workovers to optimise production.
On May 21, 2025, the Company entered into a sale agreement to purchase the
Manora floating storage and offloading ("FSO") system with an anticipated
delivery date of January 30, 2026. The exercised option price is set at
US$15.5 million. Valeura anticipates that owning, rather than leasing, the
FSO system will give rise to operational synergies and cost savings starting
in 2026.
Outlook
Year-to-date oil production reflects management's expectation that rates will
be more weighted to the second half of the year 2025. As a result, Valeura's
guidance outlook remains unchanged on this front. In addition, the Company
re-iterates its guidance outlook assumptions for all other metrics, including
Adjusted Opex, Adjusted Capex and Exploration expense (now combined as a
single line item), and Free Cash Flow, as updated in May 2025 following its
final investment decision on the Wassana redevelopment project.
Original 2025 Updated 2025
Guidance Guidance
(Re-iterated)
(Pre-Wassana FID)
Average Daily Oil Production((1)) 23.0 - 25.5 mbbls/d 23.0 - 25.5 mbbls/d
Adjusted Opex US$215 - 245 million US$215 - 245 million
Adjusted Capex and Exploration expense US$136 - 161 million US$175 - 195 million
Free Cash Flow US$112 - 227 million((2)) US$80 - 195 million
(1) Working interest share production before royalties.
(2) Illustrative Free Cash Flow guidance based on the Company's
Original 2025 Guidance assumptions.
On July 25, 2025, Valeura announced that it had entered into a Farm-in
Agreement with a subsidiary of PTTEP to earn a 40% interest in Blocks G1/65
and G3/65, in the Gulf of Thailand (the "Farm-in"). To earn its interest,
Valeura will pay 40% of actual back costs related to the two blocks (US$14.7
million to June 30, 2025), and will carry PTTEP on an additional seismic
acquisition, capped at US$3.7 million (gross). As the Farm-in Agreement is
subject to the approval of the Government of Thailand, these amounts have not
been added to the Company's guidance outlook at this time. Given the
increased focus on exploration by way of the Farm-in, Valeura may opt to
re-allocate spending between development-oriented and exploration-oriented
work within its existing portfolio, and accordingly has combined Adjusted
Capex and Exploration expense in its guidance outlook, as set out above.
Webcast
Valeura's management team will host an investor and analyst webcast today,
Thursday, August 7, 2025 at 08:30 Calgary / 15:30 London / 21:30 Bangkok /
22:30 Singapore to discuss this announcement. The live audio and video feed
can be accessed via the link below. Written questions may be submitted
through the webcast system or by email to IR@valeuraenergy.com
(mailto:IR@valeuraenergy.com)
Webcast link:
https://events.teams.microsoft.com/event/16d71f0c-8db1-49e6-a5a0-6bc77405be08@a196a1a0-4579-4a0c-b3a3-855f4db8f64b
(https://events.teams.microsoft.com/event/16d71f0c-8db1-49e6-a5a0-6bc77405be08@a196a1a0-4579-4a0c-b3a3-855f4db8f64b)
An audio only feed of the event is available by phone using the Conference ID
and dial-in numbers below.
Conference ID: 305 706 998#
Dial-in numbers:
Canada: 833-845-9589
Singapore: +65 6450 6302
Thailand: +66 2 026 9035
Turkey: 00800142034779
UK: 0800 640 3933
USA: 833-846-5630
For further information, please contact:
Valeura Energy Inc. (General Corporate
Enquiries) +65 6373 6940
Sean Guest, President and CEO
Yacine Ben-Meriem, CFO
Contact@valeuraenergy.com (mailto:Contact@valeuraenergy.com)
Valeura Energy Inc. (Investor and Media
Enquiries) +1 403 975 6752 / +44
7392 940495
Robin James Martin, Vice President, Communications and Investor Relations
IR@valeuraenergy.com (mailto:IR@valeuraenergy.com)
Contact details for the Company's advisors, covering research analysts and
joint brokers, including Auctus Advisors LLP, Canaccord Genuity Ltd (UK),
Cormark Securities Inc., Research Capital Corporation, and Stifel Nicolaus
Europe Limited, are listed on the Company's website at
www.valeuraenergy.com/investor-information/analysts/
(http://www.valeuraenergy.com/investor-information/analysts/) .
About the Company
Valeura Energy Inc. is a Canadian public company engaged in the exploration,
development and production of petroleum and natural gas in Thailand and in
Türkiye. The Company is pursuing a growth-oriented strategy and intends to
re-invest into its producing asset portfolio and to deploy resources toward
further organic and inorganic growth in Southeast Asia. Valeura aspires toward
value accretive growth for stakeholders while adhering to high standards of
environmental, social and governance responsibility.
Additional information relating to Valeura is also available on SEDAR+ at
www.sedarplus.ca (http://www.sedarplus.ca) .
Non-IFRS Financial Measures and Ratios
This news release includes references to financial measures commonly used in
the oil and gas industry such as adjusted EBITDAX, net working capital,
adjusted net working capital, adjusted cashflow from operations, adjusted
opex, adjusted capex, net cash and outstanding debt which are not generally
accepted accounting measures under International Financial Reporting Standards
("IFRS Accounting Standards") which are not generally accepted accounting
measures under IFRS Accounting Standards as issued by International Accounting
Standards Board ("IASB") and do not have any standardised meaning prescribed
by IFRS Accounting Standards and, therefore, may not be comparable with
similar definitions that may be used by other public companies. Management
believes that adjusted EBITDAX, net working capital, adjusted net working
capital, adjusted cashflow from operations, adjusted opex, adjusted capex, net
cash and outstanding debt are useful supplemental measures that may assist
shareholders and investors in assessing the financial performance and position
of the Company. Non-IFRS financial measures should not be considered in
isolation or as a substitute for measures prepared in accordance with IFRS
Accounting Standards.
Adjusted EBITDAX: is a non-IFRS financial measure which does not have a
standardised meaning prescribed by IFRS Accounting Standards. This non-IFRS
financial measure is included because management uses the information to
analyse the financial performance of the Company. Adjusted EBITDAX is a
non-IFRS and non-standardised variant of EBITDAX, adjusted to remove non-cash
items as well as certain non-recurring costs including severance payments and
other one-off items in relation to the Company's recent acquisitions. Adjusted
EBITDAX is calculated by adjusting profit for the year before other items as
reported under IFRS Accounting Standards to exclude the effects of other
income, exploration, SRB, finance income and expense, depletion, depreciation
& amortisation ("DD&A"), other costs, and certain non-cash items (such
as impairments, foreign exchange, unrealised risk management contracts,
reassessment of contingent consideration and gains or losses arising from the
disposal of capital assets). In addition, other unusual or non-recurring items
are excluded from Adjusted EBITDAX, as they are not indicative of the
underlying financial performance of the Company.
Three months ended
Unaudited Unaudited
June 30, June 30,
$'000 2025 2024
Profit for the period before other items 14,951 38,841
Other income (8,768) (1,945)
Exploration 3,216 269
SRB 173 48
Finance costs 5,457 6,775
DD&A 44,288 52,899
Other non-recurring G&A costs ((1)(2)) 3,063 2,707
Adjusted EBITDAX 62,380 99,594
(1) Items are not shown in the Interim Financial
Statements.
(2) Represents non-recurring costs associated with
share-based compensation, actual severance incurred - See "General and
Administrative ("G&A") Expenses" for more details.
Adjusted opex and adjusted opex per bbl: are a non-IFRS financial measure and
a non-IFRS financial ratio, respectively, which do not have standardised
meanings prescribed by IFRS Accounting Standards. This non-IFRS financial
measure and ratio are included because management uses the information to
analyse cash generation and financial performance of the Company. Operating
cost represents the operating cash expenses incurred by the Company during the
period including the leases that are associated with operations, such as
bareboat contracts for key operating equipment, such as FSOs, floating
production storage and offloading ("FPSO") vessels, MOPUs, and warehouses.
Adjusted opex is calculated by effectively adjusting non-cash items from the
operating cost and adding lease costs.
Adjusted opex is divided by production in the period to arrive at adjusted
opex per bbl. Valeura calculates adjusted opex per barrel, to provide a more
consistent indication of the cost of field operations. Adjusted opex, as
opposed to operating expenses, excludes the impacts of non-recurring, non-cash
items such as prior period adjustments, and adds back lease costs in relation
to FSOs, FPSOs, MOPU, and other facilities.
Three months ended
Unaudited Unaudited
June 30, June 30,
$'000 2025 2024
Operating Costs 43,796 41,694
Cost of Goods Sold 43,796 41,694
Adjustment of accounting related to inventory capitalisation((3)) 2,731 4,980
Adjusted Opex((1)) (excluding Leases) 46,527 46,674
Leases((4)) 8,094 7,497
Adjusted Opex((1)) 54,621 54,171
Production Volumes during the period (mbbl) 1,949 1,917
Adjusted Opex per Barrel((1)) ($/bbl) 28.0 28.3
(1) Represent write down inventory to net realisable value.
(2) The item is not shown in the Interim Financial
Statements. The cost of crude inventory is capitalised from operating costs.
As a result, the Company has excluded the effect of crude inventory
capitalization.
(3) In accordance with IFRS 16 - Leases, the Company
recognised cost related to its operating leases - attributed to FSO and FPSO
vessels, MOPU used at its Jasmine/Ban Yen, Nong Yao, Manora and Wassana
fields, as well as onshore warehouse facilities costs to its balance sheet and
finance cost in the profit and loss statement. In order to report a more
relevant lifting cost, the Company has included costs associated with these
leases in the adjusted operating cost calculation. This will be a recurring
adjustment.
Adjusted cashflow from operations and adjusted cashflow from operations per
barrel: are a non-IFRS financial measure and a non-IFRS financial ratio,
respectively, which do not have a standardised meaning prescribed by IFRS
Accounting Standards. This non-IFRS finance measure and ratio are included
because management uses the information to analyse cash generation and
financial performance of the Company. Adjusted cashflow from operations is
calculated using two methods which generate the same figures: a) by
subtracting from oil revenues, adjusted opex, royalties, general and
administrative costs which are adjusted for non-recurring charges (generating
the adjusted pre-tax cashflow), and accrued PITA taxes and SRB expenses, and
b) to enhance and facilitate to the reader a reconciliation of this non-IFRS
measure, the Company also presented the adjusted cash flow from operations by
calculating from cash generated from (used in) operating activities in the
consolidated statement of cash flows, adjusting with non-cash items, adjusted
opex, general and administrative costs which are adjusted for non-recurring
charges (generating the adjusted pre-tax cashflow), and accrued PITA tax and
SRB expenses.
Adjusted cashflow from operations is divided by production in the period to
arrive at adjusted cashflow from operations per bbl. Valeura calculates
Adjusted cashflow from operations per barrel, to provide a more consistent
indication of cashflow generated from operations by the Company.
Three months ended
Unaudited Unaudited
June 30, June 30,
$'000 2025 2024
Oil revenues 129,264 163,960
Royalties Adjusted opex (16,819) (17,947)
Adjusted opex (54,621) (54,171)
Recurring G&A costs (6,269) (4,725)
Adjusted pre-tax cashflow from operations 51,555 87,117
Income tax / PITA tax (848) (21,383)
SRB (173) (48)
Adjusted cashflow from operations 50,534 65,686
Production during the period 1,949 1,917
Adjusted cashflow from operations per barrel ($/bbl) 25.9 34.3
Three months ended
Unaudited Unaudited
June 30, June 30,
$'000 2025 2024
Cash generated from operating activities 52,190 18,095
Change in non-cash working capital (1,154) 6,772
Non-cash items 61,409 121,146
Adjusted opex (54,621) (54,171)
Recurring G&A costs (6,269) (4,725)
Adjusted pre-tax cashflow from operations 51,555 87,117
Income tax / PITA tax (848) (21,383)
SRB (173) (48)
Adjusted cashflow from operations 50,534 65,686
Production during the period 1,949 1,917
Adjusted cashflow from operations per barrel ($/bbl) 25.9 34.3
Outstanding debt and net cash: are non-IFRS financial measures which do not
have a standardised meaning prescribed by IFRS Accounting Standards. These
non-IRFS financial measures are provided because management uses the
information to a) analyse financial strength and b) manage the capital
structure of the Company. These non-IFRS measures are used to ensure capital
is managed effectively in order to support the Company's ongoing operations
and needs.
Unaudited
June 30, December 31,
$'000 2025 2024
Outstanding Debt - -
Cash and cash equivalents 218,773 236,543
Restricted cash (Current) 875 1,093
Restricted cash (Non-current) 22,336 21,718
Cash balance 241,984 259,354
Net cash 241,984 259,354
Net working capital and adjusted net working capital: are non-IFRS financial
measures which do not have a standardised meaning prescribed by IFRS
Accounting Standards. These non-IFRS financial measures are included because
management uses the information to analyse liquidity and financial strength of
the Company. Net working capital is calculated by deducting current
liabilities from current assets. Adjusted net working capital is calculated by
adding back the current leases liabilities and including non-current
restricted cash in net working capital.
The leases are associated with operations, such as bareboat contracts for key
operating equipment, such as FSOs, FPSOs, MOPU, and warehouses which are
included in the Company's disclosed adjusted opex (and adjusted opex
guidance). Management believes the adjusted net working capital provides a
useful data point to the reader to ascertain the business' next-twelve-months
surplus or deficit capital requirement. It is also a data point that
management uses for cash management.
Unaudited
June 30, December 31,
$'000 2025 2024
Current assets 351,767 340,911
Current liabilities 151,890 (185,640)
Net working capital 199,877 155,271
Current lease liabilities 39,321 28,746
Restricted cash (Non-current) 22,336 21,718
Adjusted net working capital 261,534 205,735
Adjusted capex: is a non-IFRS measure which does not have a standardised
meaning prescribed by IFRS Accounting Standards. Adjusted capex is defined as
the addition in capital expenditure for capital work in progress, drilling,
brownfield, and other PP&E. Management uses this non-IFRS measure to
analyse the capital spending of the Company and assess investments in its
assets.
Three months ended
Unaudited Unaudited
June 30, June 30,
$'000 2025 2024
Capital work in progress 10,163 -
Drilling 29,939 28,606
Brownfield 6,428 2,806
Other PPE 2,405 (771)
Adjusted capex 48,935 30,641
Advisory and Caution Regarding Forward-Looking Information
Certain information included in this news release constitutes forward-looking
information under applicable securities legislation. Such forward-looking
information is for the purpose of explaining management's current expectations
and plans relating to the future. Readers are cautioned that reliance on such
information may not be appropriate for other purposes, such as making
investment decisions. Forward-looking information typically contains
statements with words such as "anticipate", "believe", "expect", "plan",
"intend", "estimate", "propose", "project", "target" or similar words
suggesting future outcomes or statements regarding an outlook. Forward-looking
information in this news release includes, but is not limited to, timing for
anticipated production start from the Wassana redevelopment project, the
future tie-on of satellite developments and future of the assets; the ability
of the Company's strong financial position to support its growth projects and
for its business to support investment plans; the expectation of no further
cash tax payments in 2025; the timing of drilling on Jasmine/Ban Yen field;
the expectation of production rates being weighted to the second half of 2025;
the expected reduction in diesel consumption as a result of the Jasmine
low-BTU gas generator; timing for completion of the Nong Yao drilling
programme; completion of the Company's purchase of the Manora FSO system; all
of the Company's guidance outlook expectations; and expectations regarding the
Farm-in, Including receiving government approval.
Although the Company believes the expectations and assumptions reflected in
such forward-looking information are reasonable, they may prove to be
incorrect.
Forward-looking information is based on management's current expectations and
assumptions regarding, among other things: political stability of the areas in
which the Company is operating; continued safety of operations and ability to
proceed in a timely manner; continued operations of and approvals forthcoming
from governments and regulators in a manner consistent with past conduct;
ability to achieve extensions to licences in Thailand and Türkiye to support
attractive development and resource recovery; future drilling activity on the
required/expected timelines; the prospectivity of the Company's lands; the
continued favourable pricing and operating netbacks across its business;
future production rates and associated operating netbacks and cash flow;
decline rates; future sources of funding; future economic conditions; the
impact of inflation of future costs; future currency exchange rates; interest
rates; the ability to meet drilling deadlines and fulfil commitments under
licences and leases; future commodity prices; the impact of the Russian
invasion of Ukraine; the impact of conflicts in the Middle East; royalty rates
and taxes; management's estimate of cumulative tax losses being correct;
future capital and other expenditures; the success obtained in drilling new
wells and working over existing wellbores; the performance of wells and
facilities; the availability of the required capital to funds its exploration,
development and other operations, and the ability of the Company to meet its
commitments and financial obligations; the ability of the Company to secure
adequate processing, transportation, fractionation and storage capacity on
acceptable terms; the capacity and reliability of facilities; the application
of regulatory requirements respecting abandonment and reclamation; the
recoverability of the Company's reserves and contingent resources; future
growth; the sufficiency of budgeted capital expenditures in carrying out
planned activities; the impact of increasing competition; the availability and
identification of mergers and acquisition opportunities; the ability to
successfully negotiate and complete any mergers and acquisition opportunities;
the ability to efficiently integrate assets and employees acquired through
acquisitions; global energy policies going forward; international trade
policies; future debt levels; and the Company's continued ability to obtain
and retain qualified staff and equipment in a timely and cost efficient
manner. In addition, the Company's work programmes and budgets are in part
based upon expected agreement among joint venture partners and associated
exploration, development and marketing plans and anticipated costs and sales
prices, which are subject to change based on, among other things, the actual
results of drilling and related activity, availability of drilling, offshore
storage and offloading facilities and other specialised oilfield equipment and
service providers, changes in partners' plans and unexpected delays and
changes in market conditions. Although the Company believes the expectations
and assumptions reflected in such forward-looking information are reasonable,
they may prove to be incorrect.
Forward-looking information involves significant known and unknown risks and
uncertainties. Exploration, appraisal, and development of oil and natural gas
reserves and resources are speculative activities and involve a degree of
risk. A number of factors could cause actual results to differ materially from
those anticipated by the Company including, but not limited to: the ability of
management to execute its business plan or realise anticipated benefits from
acquisitions; the risk of disruptions from public health emergencies and/or
pandemics; competition for specialised equipment and human resources; the
Company's ability to manage growth; the Company's ability to manage the costs
related to inflation; disruption in supply chains; the risk of currency
fluctuations; changes in interest rates, oil and gas prices and netbacks; the
risk that the Company's tax advisors' and/or auditors' assessment of the
Company's cumulative tax losses varies significantly from management's
expectations of the same; potential changes in joint venture partner
strategies and participation in work programmes; uncertainty regarding the
contemplated timelines and costs for work programme execution; the risks of
disruption to operations and access to worksites; potential changes in laws
and regulations, including international treaties and trade policies; the
uncertainty regarding government and other approvals; counterparty risk; the
risk that financing may not be available; risks associated with weather delays
and natural disasters; and the risk associated with international activity.
See the most recent annual information form and management's discussion and
analysis of the Company for a detailed discussion of the risk factors.
Certain forward-looking information in this news release may also constitute
"financial outlook" within the meaning of applicable securities legislation.
Financial outlook involves statements about Valeura's prospective financial
performance or position and is based on and subject to the assumptions and
risk factors described above in respect of forward-looking information
generally as well as any other specific assumptions and risk factors in
relation to such financial outlook noted in this news release. Such
assumptions are based on management's assessment of the relevant information
currently available, and any financial outlook included in this news release
is made as of the date hereof and provided for the purpose of helping readers
understand Valeura's current expectations and plans for the future. Readers
are cautioned that reliance on any financial outlook may not be appropriate
for other purposes or in other circumstances and that the risk factors
described above or other factors may cause actual results to differ materially
from any financial outlook.
The forward-looking information contained in this news release is made as of
the date hereof and the Company undertakes no obligation to update publicly or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, unless required by applicable
securities laws. The forward-looking information contained in this news
release is expressly qualified by this cautionary statement.
This news release does not constitute an offer to sell or the solicitation of
an offer to buy securities in any jurisdiction, including where such offer
would be unlawful. This news release is not for distribution or release,
directly or indirectly, in or into the United States, Ireland, the Republic of
South Africa or Japan or any other jurisdiction in which its publication or
distribution would be unlawful.
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the Toronto Stock Exchange) accepts
responsibility for the adequacy or accuracy of this news release.
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