REG - Kistos Holdings PLC - 2024 Full Year Results
11/04/2025 07:00
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RNS Number : 6697E Kistos Holdings PLC 11 April 2025
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET
ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) (UK MAR). UPON THE
PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK
MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
11 April 2025
Kistos Holdings plc
("Kistos", "the Company", or "the Group")
Full-year results for the year ended 31 December 2024
Kistos (LON: KIST), an independent energy company focused on generating value
across the upstream and midstream markets, is pleased to provide its audited
full-year results for the year ended 31 December 2024. A copy of the Company's
full audited annual report and accounts will be made available shortly on the
Company's website at www.kistosplc.com (http://www.kistosplc.com) .
2024 Highlights
Operational highlights
· Significant progress has been made towards completing the Balder
Future project, with the Jotun FPSO sail away successfully achieved after the
reporting period
· Acquired EDF Energy's gas storage assets, onshore UK, and
successfully undertook the fifth and final phase of a 'soft cycling' trial,
resulting in a 24% uplift in working gas capacity
Production, reserves and resources
· Average daily production of 8,050 boepd, in line with guidance,
supported by higher-than-expected well performance at GLA
· Year-end 2P reserves of 24.4 mmboe and estimated 2C contingent
resources of 57.5 mmboe
· Hill Top achieved 93.5% operational availability, injecting 112
million therms and withdrawing 97 million therms during the period after
completion
o Initial hedges, with injections in July 2024 and withdrawals in Q1 2025,
were placed at an average of 23.5 pence per therm
Financial highlights
· Adjusted EBITDA of $95 million(3) (FY23: $130 million)
· Capital expenditure on a cash basis was $144 million (FY23: $129
million), representing the ongoing investment in the Balder Future project
· Tax rebates receivables of approximately NOK 746 million ($65
million) in respect of investments in the 2024 calendar year payable in
December 2025
· Statutory loss after tax of $52 million (2023: $27 million loss)
resulting from both a $34 million impairment charge and a $26 million non-cash
NOK functional currency exchange loss that has now reversed
· Cash balances on 31 December 2024 of $114 million, excluding $29
million of funds which are restricted (31 December 2023: $215 million and $0.2
million of restricted funds)
· Adjusted net debt(2) on 31 December 2024 of $52 million (31
December 2023: net cash $62 million)
o Carrying value of Hybrid Bond debt has fallen to $0.7 million (FY23: $15.7
million), based on the likelihood of operational milestones being met,
including offload of 500,000 barrels of oil (gross) from the Jotun FPSO
between 31 December 2024 and 31 May 2025
2025 Outlook
· FY25 production guidance reiterated at 8,000 boepd - 9,000 boepd
· Hook-up and final commissioning of the Jotun FPSO, with first oil
targeted by the end of Q2 2025
· Production from Balder Future wells expected to start up shortly
after, and following a period of ramp-up (expected in the second half of 2025)
could increase area production to a peak of 110,000 boepd (gross)
· The drilling of the six Balder Phase V wells is ongoing with the
COSL Pioneer rig, utilising the remaining well slots installed during the
Balder Future project. The first of these wells are anticipated to flow before
the year end, and will also utilise the Jotun FPSO
· Progressing further development and exploration projects across the
Balder Area with a view to converting 2C resources to 2P reserves in the short
to medium-term
· Change of GLA operator expected in H1 2025 to provide renewed
commercial momentum to sanction near-term development projects
· Victory gas field expected to come on stream in Q4 2025, where
production will be processed through the onshore Shetland Gas Plant ("SGP")
· FEED study is ongoing at the Hole House gas storage facility, with
a view to taking FID to increase total working gas capacity up to
approximately 40 million therms from the current 22.1 million therms
· Exploring value-accretive M&A, with several identified
opportunities currently under evaluation
Andrew Austin, Executive Chairman of Kistos, commented:
"Strong production across the portfolio, particularly from the GLA, has
ensured we met production guidance for the year, despite delays to the Balder
Future project. In our pursuit of growth, we have added diversity to our
portfolio with the addition of the Hill Top and Hole House gas storage
facilities in Cheshire, expanding our midstream market position and
diversifying our revenue.
2025 is an exciting year for Kistos. The Balder Future project in Norway once
onstream, will significantly increase Group production and cashflow while also
increasing the ratio of oil in our portfolio. The completion of the Balder
Future project unlocks the Balder Phase V wells, and will spur further
development opportunities in the area as we look to convert 2C contingent
resources to 2P reserves with further infill drilling and exploration, thereby
extending the life of the Balder Area to 2045 and beyond.
Beyond our existing operations, we remain committed to exploring growth
opportunities that will drive substantial returns for our investors. As well
as assessing opportunities in familiar territories, we are also considering
new geographies which could offer near-term value accretion."
12 months ended 31 December 2024
FY 2024 FY 2023
(Restated)
Average production rate (1) boepd 8,050 8,800
Revenue $'000 216,319 223,032
Average realised sales price (1) $/boe 69 76
Adjusted EBITDA (3) $'000 95,324 130,242
Adjusted net (debt) / cash(2) $'000 (51,663) 62,067
Cash balance $'000 113,753 214,789
Notes:
(1) Average production rate includes gas, oil and natural gas liquids, and is
rounded to the nearest 100 barrels of oil equivalent per day. The actual
average production rate reflects the number of days during the year businesses
were controlled by the Group. Sales and production volumes are converted to
estimated barrels of oil equivalent (boe) using the conversion factors in
Appendix C to the Financial Statements.
(2) Non-IFRS measure. Net debt is adjusted for the Norwegian tax rebate
generated in 2024 and payable in December 2025. Refer to the definition within
the glossary and reconciliation in Appendix B3 to the Financial Statements
(3) Non-IFRS measure. Refer to note 2.2.2 to the financial statements for
definition and calculation.
Dr Richard Benmore, Non-Executive Director of Kistos with a Bachelors, Masters
and PhD in Geosciences and who has been involved in the energy industry for
more than 40 years, has read and approved the disclosure in this announcement.
The Company's internal estimates of resources contained in this announcement
were prepared in accordance with the Petroleum Resource Management System
guidelines endorsed by the Society of Petroleum Engineers, World Petroleum
Congress, American Association of Petroleum Geologists and Society of
Petroleum Evaluation Engineers.
Contacts
Kistos Holdings plc via Hawthorn Advisors
Andrew Austin
Panmure Liberum (NOMAD, Joint Broker) Tel: 0207 886 2500
James Sinclair-Ford / Dougie McLeod / Mark Murphy
Berenberg (Joint Broker) Tel: 0203 207 7800
Matthew Armitt / Ciaran Walsh
Hawthorn Advisors (Public Relations Advisor) Tel: 0203 745 4960
Henry Lerwill / Simon Woods
Camarco (Public Relations Advisor) Tel: 0203 757 4983
Billy Clegg
Glossary
2C resources those quantities of petroleum estimated, as of a given date, to be potentially
recoverable from known accumulations by application of development projects,
but which are not currently considered to be commercially recoverable owing to
one or more contingencies.
2P reserves the sum of proved and probable reserves, denotes the best estimate scenario of
reserves
boe barrels of oil equivalent
mmboe millions of barrels of oil equivalent
boepd barrels of oil equivalent per day
kboepd thousand barrels of oil equivalent per day
FEED Front End Engineering and Design
FPSO floating production, storage, and offloading vessel
GLA Greater Laggan Area
Executive Chairmans Statement
The Jotun floating production storage and offloading vessel (FPSO) sail away
represents an important milestone, together with all 14 production wells
completed and associated subsea equipment installed, the hook-up and final
commissioning is expected to be undertaken over the coming months, with first
oil targeted for the end of the second quarter of the year. Once online, the
project is expected to increase the area's peak daily production of circa
30,000 barrels of oil equivalent produced per day (boepd) (gross) by 80,000
boepd (gross), which is expected to occur approximately three to four months
following first oil.
Furthermore, it is anticipated that the completion of the Balder Future
project and ongoing drilling of Balder Phase V will unlock future infill and
exploration opportunities, as well as tie-back developments with a short time
to market. Kistos, alongside the operator, is progressing with further
development and exploration projects across the Balder Area with a view to
converting 2C resources to 2P reserves in the short to medium term.
In the UK, the Greater Laggan Area (GLA) contributed 3,240 boepd throughout
2024, significantly exceeding the operator budget following good uptime and
strong well performance. The GLA joint venture (JV) can look forward to the
third-party Victory gas field coming onstream in the final quarter of 2025,
while we continue to explore organic development opportunities, including the
Glendronach field and potential infill wells at Tormore and Glenlivet. The
change of operator in the GLA, which is expected to take place in the second
quarter of 2025, will provide additional momentum in sanctioning development
projects.
In the Netherlands, production from the Q10-A field averaged 2,070 boepd,
impacted by outages on the TAQA-operated P15-D platform. We are prioritising
efforts to maximise volumes and lower unit costs, while engaging in
discussions regarding the extension of life of the P15-D platform and wider
infrastructure, which the operator is committed to achieve.
Kistos achieved a full-year production rate of 8,050 boepd (2023: 8,800 boepd)
with sales volumes for liquids at 3,363 boepd (2023: 1,545 boepd) and natural
gas at 4,911 boepd (2023: 6,660 boepd). The average realised price of liquids
was $79/boe; for natural gas, it was $62/ boe in the UK and $63/boe in the
Netherlands. Unit operating expenses increased to $32/boe, driven by lower
production in the Netherlands and the UK. Impairment charges of $34 million
were recognised due to higher-than-expected outages and costs on the
TAQA-operated P15-D platform.
The acquisition of EDF's gas storage assets for £25 million marked our entry
into the midstream market, aligning with our strategy to pursue opportunities
that support the energy transition. Kistos has already increased the working
gas capacity to 22.1 million therms (by 24%) and we have a roadmap to increase
it to 35.0 million therms (a further 62%) by recommissioning Hole House in
Cheshire, UK.
Looking ahead, we remain committed to optimising production, reducing unit
costs and exploring new growth opportunities. The completion of the Jotun FPSO
refurbishment and the anticipated start-up of the Balder Future project will
drive significant production increases and we will continue leveraging our
diversified asset portfolio to navigate market challenges and capitalise on
emerging opportunities.
I would like to extend my gratitude to our employees, contractors, suppliers
and co- venturers for their dedication and support. Together, we will continue
to build on our platform to generate substantial returns for our investors,
while maintaining high standards of employee welfare, safety and corporate
governance, and a commitment to the environment.
Consolidated Financial Statements
Consolidated income statement
$'000 Note Year ended 31 December 2024 Year ended 31 December 2023
(restated)
Revenue 2.1 216,319 223,032
Other operating income/(expense) 5,193 (203)
Cost of sales (104,562) (78,422)
Gross profit 116,950 144,407
Exploration and development expenses (1,034) (3,618)
Abandonment expenses (3,533) (1,835)
General and administrative expenses 3.2 (18,731) (12,920)
Depreciation and amortisation 2.4, 2.5 (99,923) (106,949)
Impairment 2.6 (34,475) (63,400)
Change in fair value and releases of contingent consideration - 3,597
Operating loss (40,746) (40,718)
Interest income 3.5 6,417 10,039
Interest expenses 3.5 (34,196) (31,108)
Other finance income 3.5 15,003 26,680
Other finance costs 3.5 (42,360) (14,025)
Net finance costs (55,136) (8,414)
Loss before tax (95,882) (49,132)
Tax credit 6.1 43,883 22,538
Loss for the period (51,999) (26,594)
Basic loss per share ($) 3.1 (0.63) (0.32)
Diluted loss per share ($) 3.1 (0.63) (0.32)
Consolidated statement of other comprehensive income
$'000 Note Year ended 31 December 2024 Year ended 31 December 2023
(restated)
Loss for the period (51,999) (26,594)
Item that may be reclassified to profit or loss:
Foreign currency translation differences 5.6 (3,956) 3,059
Total other comprehensive loss (55,955) (23,535)
Consolidated balance sheet
$'000 Note 31 December 2024 31 December 2023 1 January 2023
(restated) (restated)
Non-current assets
Goodwill 2.5 49,215 54,239 11,642
Intangible assets 2.5 30,272 34,591 46,446
Property, plant and equipment 2.4 489,508 455,286 302,399
Deferred tax assets 6.2.2 1,885 2,133 606
Investment in associates 1,066 65 65
Other long-term receivables 176 165 109
572,122 546,479 361,267
Current assets
Inventories 4.5 18,436 22,544 10,373
Trade and other receivables 4.2 20,602 29,215 58,463
Current tax receivable 6.3.1 65,450 88,690 -
Restricted funds 4.1 29,385 185 27
Cash and cash equivalents 4.1 113,753 214,789 226,869
247,626 355,423 295,732
Total assets 819,748 901,902 656,999
Equity
Share capital and share premium 5.4 9,979 9,979 9,979
Other equity 5.5 5,557 3,897 -
Other reserves 5.6 71,311 74,714 71,492
Retained earnings (50,088) 1,911 28,504
Total equity 36,759 90,501 109,975
Non-current liabilities
Abandonment provision 2.3 251,426 231,283 132,239
Bond debt 5.1 245,243 237,936 86,473
Deferred tax liabilities 6.2.1 134,389 144,146 126,687
Other non-current liabilities 4.4 7,703 678 4,495
638,761 614,043 349,894
Current liabilities
Trade payables and accruals 4.3 32,180 44,477 22,821
Other current liabilities 4.4 14,952 6,152 18,321
Current tax payable 6.3.2 93,604 142,125 153,222
Abandonment provision 2.3 3,492 4,604 2,766
144,228 197,358 197,130
Total liabilities 782,989 811,401 547,024
Total equity and liabilities 819,748 901,902 656,999
Consolidated statement of changes in equity
$'000 Share capital and share premium Other equity Other reserves Retained earnings Total equity
(note 5.4) (note 5.5) (note 5.6)
At 1 January 2023 (restated) 9,979 - 71,492 28,504 109,975
Loss for the period - - - (26,593) (26,593)
Other comprehensive income - - 3,059 - 3,059
Total comprehensive loss for the period - - 3,059 (26,593) (23,534)
Share-based payments - - 163 - 163
Issue of warrants (note 5.5) - 3,897 - - 3,897
At 31 December 2023 (restated) 9,979 3,897 74,714 1,911 90,501
Loss for the period - - - (51,999) (51,999)
Other comprehensive income - - (3,956) - (3,956)
Total comprehensive loss for the period - - (3,956) (51,999) (55,955)
Share-based payments (note 3.4) - - 553 - 553
Issue of warrants (note 5.5) - 1,660 - - 1,660
At 31 December 2024 9,979 5,557 71,311 (50,088) 36,759
Consolidated cash flow statement
$'000 Note Year ended 31 December 2024 Year ended 31 December 2023
(restated)
Cash flows from operating activities:
Loss for the period after tax (51,999) (26,593)
Tax credit 6.1 (43,883) (21,804)
Net finance costs 3.5 55,136 8,414
Depreciation and amortisation 2.4, 2.5 99,923 106,949
Impairment 2.6 34,475 63,400
Change in fair value and releases of contingent consideration - (3,597)
Share-based payment expense 3.4 553 163
Income tax paid (72,175) (36,552)
Income tax received 80,713 78,520
Interest income received 6,008 10,012
Abandonment costs paid 2.3 (6,933) (2,102)
Decrease in trade and other receivables 4,856 40,483
Decrease in trade and other payables (9,975) (1,754)
Decrease in inventories 6,494 4,797
Movement in other working capital items 317 353
Net cash flow generated from operating activities 103,510 220,689
Cash flows from investing activities:
Payments to acquire tangible and intangible fixed assets (143,814) (129,067)
Net cash acquired in Mime Acquisition - 7,799
Consideration paid for GLA Acquisition - (17,388)
Consideration paid for Gas Storage Acquisition, net of cash acquired (22,073) -
Investment in Spiralis (1,000) -
Transfer to restricted funds (29,385) -
Net cash flow used in investing activities (196,272) (138,656)
Cash flows from financing activities:
Interest paid (5,773) (12,685)
Repurchase and redemption of bond debt 5.2 - (90,422)
Lease repayments and other financing cash flows (412) (1,390)
Other (2,823) -
Net cash flow used in financing activities (9,008) (104,497)
Decrease in cash and cash equivalents (101,770) (22,464)
Cash and cash equivalents at start of period 4.1 214,974 226,896
Effects of foreign exchange rate changes 549 10,542
Cash and cash equivalents at end of period 4.1 113,753 214,974
The notes to these financial statements are contained within the Company's
full audited annual report and accounts available on the Company's website at
www.kistosplc.com.
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