RCS - Valeura Energy Inc. - Third Quarter 2025 Results
14/11/2025 08:15
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RNS Number : 5859H Valeura Energy Inc. 14 November 2025
Third Quarter 2025 Results
Singapore, November 14, 2025: Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF)
("Valeura" or the "Company") reports its unaudited financial and operating
results for the three and nine month periods ended September 30, 2025.
Q3 Highlights
· Oil production of 23.0 mbbls/d((1)) and oil sales of 2.2 million
bbls;
· Average realised price of US$72.1/bbl, generating revenue of US$155.7
million;
· Adjusted EBITDAX of US$80.7 million((2)) and adjusted after tax
cashflow from operations of US$73.2 million((2));
· Cash and net cash balance as of September 30, 2025 of US$248.4
million((2,3)), with no debt;
· Adjusted working capital as of September 30, 2025 of US$275.2
million((2));
· Successful ten-well drilling campaign at block G11/48, resulting in a
production increase to 24.8 mbbls/d at quarter-end((1,4));
· Major offshore acreage expansion through strategic farm-in agreement
in the Gulf of Thailand((5));
· Continued progress on the Wassana field redevelopment project; and
· Recognised by Report on Business Magazine as Canada's No. 1 Top
Growing Company, based on three-year revenue growth of 20,064%.
Recent Achievements
· Entered into a joint venture agreement with a subsidiary of
Transatlantic Petroleum LLC ("Transatlantic") to explore and develop the deep
rights formations of the Thrace basin of northwest Türkiye; and
· Recent drilling on the Jasmine field has resulted in production for
the month of November to date of 24.5 mbbls/d((1,6)).
(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$23.8 million.
(4) Seven-day average to September 30, 2025.
(5) Subject to government of Thailand approval.
(6) Average from November 1 through November 12, 2025.
Dr. Sean Guest, President and CEO commented:
"Our Q3 2025 results illustrate our ongoing focus on both top tier execution
and setting up our business to drive value generation in the future. All of
our financial and operating results are improved relative to 12 months ago,
and also relative to Q2 2025.
On the operational front, we safely executed a large-scale drilling campaign
at our Nong Yao field which has delivered the trifecta of immediate oil
production, new targets for future development, and the expectation of reserve
additions when evaluated at year-end. Across all our producing assets, we
are relentless in our push to drive value by extending economic field life.
We also took meaningful strides to build out a longer-term line of sight for
our business. In particular, our agreement to farm in to the G1/65 and G3/65
blocks in the Gulf of Thailand creates running room to transform our portfolio
through multiple gas and oil developments within the coming years. At the
same time, redevelopment of our Wassana field will provide a new lease of life
for this important asset. Construction of the new Wassana central processing
platform is progressing ahead of plan, and the project remains on track for
first oil in Q2 2027.
Our investments across the portfolio are well-supported by the strong margins
we continue to deliver. This quarter illustrates how deliberate actions like
reducing adjusted opex((1)) and setting up a more efficient tax structure can
enhance cash flow. On an after-tax basis, cashflow from operations((1)) has
increased by 46% when compared to the same quarter last year.
The net effect is a stronger balance sheet than ever before. With increased
cash and no debt, our working capital surplus has surged to a new record of
US$275 million. Our financial position sets the scene for both ongoing
investment into our portfolio and also for inorganic growth. With this
position of strength, against a backdrop of an industry that struggles for
access to capital, we now have our sights set on larger inorganic
opportunities, which have the potential to be truly transformational in
nature."
(1) Non-IFRS financial measure or non-IFRS ratio - see "Non-IFRS
Financial Measures and Ratios" section below.
Financial and Operating Results Summary
Three months ended Three months ended Delta (%) Three months ended Delta (%)
Sep 30, 2025 Jun 30, 2025 Sep 30, 2024
Oil Production((1)) ('000 bbls) 2,114 1,949 +8% 2,043 +3%
Average Daily Oil Production((1)) (bbls/d) 22,976 21,412 +7% 22,210 +3%
Average Realised Price (US$/bbl) 72.1 67.9 +6% 78.9 -9%
Oil Volumes Sold ('000 bbls) 2,160 1,902 +14% 1,765 +22%
Oil Revenue (US$'000) 155,651 129,264 +20% 139,278 +12%
Net Income (US$'000) 15,813 5,449 +190% (3,913) +504%
Adjusted EBITDAX((2)) (US$'000) 80,710 62,380 +29% 70,551 +14%
Adjusted Pre-Tax Cashflow from Operations((2)) (US$'000) 77,278 51,555 +50% 63,810 +21%
Adjusted Cashflow from Operations((2)) (US$'000) 73,227 50,534 +45% 50,138 +46%
Operating Expenses (US$'000) 49,093 43,796 +12% 47,318 +4%
Adjusted Opex((2)) (US$'000) 52,525 54,621 -4% 53,788 -2%
Operating Expenses per bbl (US$/bbl) 23.2 22.5 +3% 23.2 0%
Adjusted Opex per bbl((2)) (US$/bbl) 24.8 28.0 -11% 26.3 -6%
Adjusted Capex((2)) (US$'000) 52,355 48,935 +7% 35,490 +48%
Weighted average shares outstanding - basic ('000 shares) 106,219 106,258 0% 106,982 -1%
As at As at Delta (%) As at Delta (%)
Sep 30, 2025 Jun 30, 2025 Sep 30, 2024
Cash & Cash equivalents((3)) (US$'000) 248,389 241,984 +3% 155,943 +59%
Adjusted Net Working Capital((2)) (US$'000) 275,190 261,575 +5% 166,261 +66%
Shareholder's Equity (US$'000) 558,072 542,693 +3% 314,423 +77%
(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$23.8 million.
Financial Update
The Company's Q3 2025 financial performance reflects ongoing production
operations at all four of its fields in the offshore Gulf of Thailand. As
noted in the table above, substantially all key operational and financial
metrics have increased relative to Q3 2024 and Q2 2025. Valeura's working
interest share production before royalties totalled 2.11 million bbls during
Q3 2025, an increase of 3% from Q3 2024, led by increased production from the
Nong Yao field in light of its recently completed ten-well drilling
programme.
Oil sales totalled 2.16 million bbls during Q3 2025, just slightly higher than
the volume produced. As all of the Company's oil production is stored in
floating offshore vessels before being sold, at any given time the Company
maintains some quantity of oil held in inventory. At September 30, 2025, the
Company had a total of 0.88 million bbls of crude oil in inventory.
Price realisations averaged US$72.1/bbl, which was only 9% lower than the same
period in 2024. Oil sales prices reflect a US$2.5/bbl premium to the Brent
crude oil price in Q3 2025. With the combined effect of higher oil sales
volumes offsetting lower price realisations, revenue increased to US$156
million, an increase of 12% compared to Q3 2024.
Operating expenses during Q3 2025 were US$49.1 million, an increase of 4%
compared to Q3 2024. Along with operating expenses, the Company includes the
price of leases for its floating offshore infrastructure (being US$8.2
million) to derive an adjusted opex((1)) of US$52.5 million in Q3 2025, which
equates to a per-bbl rate of US$24.8/bbl. Adjusted opex and its per bbl unit
rate for Q3 2025 were lower than the comparable period a year earlier,
reflecting reduced leasing costs for certain floating vessels used in the
Company's production operations.
Valeura generated adjusted pre-tax cashflow from operations((1)) of US$77.3
million, which was 21% higher than Q3 2024, primarily reflecting higher oil
revenue, as increased oil sales more than offset the effect of lower realised
prices. On an after-tax basis, adjusted cashflow from operations was US$73.2
million in Q3 2025, 46% higher than Q3 2024. The substantial increase in
after-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.
No cash tax payments related to Petroleum Income Tax were required in Q3 2025,
nor are any anticipated for the remainder of 2025.
Valeura made cash outlays in respect of its operating costs, as noted above,
and capex of US$52.4 million in Q3 2025. Capex was higher primarily due to
the Wassana field redevelopment project, reflecting the start of construction
activities.
Valeura's cash position at September 30, 2025 was US$248.4 million, inclusive
of restricted cash of US$23.8 million. In addition, cash from three crude
oil liftings in September 2025, amounting to US$36.7 million net to the
Company, was received in mid-October. As a result, the Company has recorded
a net crude((2)) receivable to that amount, to reflect the timing of payment
happening in Q4 rather than Q3 2025.
Valeura's net working capital surplus increased to US$275.2 million at
September 30, 2025, 34% higher than at September 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 Q3 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 22,976
bbls/d. As anticipated by management, 2025 production is weighted toward the
second half of the year, and accordingly, working interest share oil
production before royalties in Q3 was 7% higher than Q2 2025. Subsequent to
the end of the quarter, the drilling programme, focused on the Jasmine field,
has yielded aggregate average working interest share oil production before
royalties of 24,537 bbls/d for the month of November 2025 to date.
Jasmine/Ban Yen
Oil production before royalties from the Jasmine/Ban Yen field, in Licence
B5/27 (100% operated interest) averaged 7,514 bbls/d during Q3 2025. No
wells were drilled in Licence B5/27 during Q3 2025, but during the last week
of the quarter, the Company mobilised its contracted drilling rig to the
Jasmine field to begin an infill drilling campaign which is planned to
continue into early 2026. The drilling campaign will entail approximately
nine wells, including both development and appraisal targets.
Nong Yao
The Company's Q3 2025 working interest share oil production before royalties
from the Nong Yao field, in Licence G11/48 (90% operated working interest),
averaged 10,563 bbls/d. Oil production increased in Q3 2025 as a result of a
ten-well drilling programme which was completed just before the end of the
quarter. The Company's working interest share oil production before royalties
increased from approximately 7,996 bbls/d prior to the first new wells coming
on stream, to a rate of 11,562 bbls/d over the seven-day period ending
September 30, 2025.
The drilling campaign covered all three of the block's wellhead infrastructure
facilities and included both development and appraisal targets. The campaign
was executed safely, on time, and within budget. In addition to increasing
production rates, the Company anticipates that the reservoirs encountered may
add to the ultimate production potential of the Nong Yao field, thereby
further extending its economic life.
Wassana
During Q3 2025, oil production before royalties from the Wassana field, in
Licence G10/48 (100% operated interest) averaged 3,011 bbls/d. No wells were
drilled on the licence in Q3 2025. Ongoing work on the production facility
(the mobile offshore production unit ("MOPU") Ingenium) consists of routine
maintenance and repairs to keep the facility in good working order in advance
of the Wassana field redevelopment project.
In May 2025, Valeura took a final investment decision on the Wassana field
redevelopment project, which entails building and deploying a new central
processing platform facility on the Wassana field. The project is on plan
for deployment of the new facility in late 2026 and first production in Q2
2027. The Wassana redevelopment project is intended to increase production,
reduce unit costs, and create a hub for eventual tie-in of potential
additional satellite wellhead platforms. Management estimates that the
Wassana field will produce oil at rates of approximately 10,000 bbls/d (before
royalties) in the second half of 2027.
In addition, subsequent to the end of the quarter, Valeura completed an
extensive scheduled underwater inspection of the MOPU Ingenium's sub-sea
structural components. No anomalies were encountered, thereby reconfirming the
structural integrity of the facility. No further inspections are anticipated
prior to the start of production from the new Wassana central processing
platform.
Manora
Valeura's working interest share production before royalties from the Manora
field, in Licence G1/48 (70% operated working interest) averaged 1,888 bbls/d
during Q3 2025.
No wells were drilled on the Manora field during the quarter, and operations
focussed on maintaining ongoing safe production operations.
Blocks G1/65 and G3/65
On July 25, 2025 Valeura announced that it had entered into a farm-in
agreement with a subsidiary of PTT Exploration and Production Plc ("PTTEP") to
earn a 40% non-operated working interest in blocks G1/65 and G3/65 (the
"Blocks"), in the offshore Gulf of Thailand (the "Farm-in"). To earn its
interest, Valeura will pay its share of actual back costs related to the
Blocks and will carry PTTEP on an additional seismic survey to the northeast
of the Nong Yao field. Upon completion (which is subject to the approval of
the Government of Thailand), the Farm-in will result in a substantial
expansion of Valeura's gross acreage position in Thailand from 2,623 km(2) to
22,757 km(2) and will provide access to discoveries and exploration prospects
that can be tied back quickly to existing oil and gas infrastructure.
During Q3 2025 and subsequent to the end of the quarter, the operator acquired
a total of 1,200 km(2) of 3D seismic over three separate areas on the
Blocks. Seismic processing is now underway, and results are expected to be
delivered in mid-2026. This 3D seismic acquisition has fulfilled the seismic
commitments across the Blocks and will shape a new drilling programme,
expected to commence in early 2027.
Separately, the operator is commencing development planning in block G3/65
based on the new gas discovery made earlier this year, and the existing
historic discoveries. These discoveries are already covered by existing 3D
seismic data. More details on development planning and the anticipated
timing of a final investment decision on the initial block G3/65 development
are expected in the first half of 2026.
Valeura is currently working in partnership with the operator to assess the
full resource potential of these Blocks and intends to commission a
third-party estimate of oil and gas resources, which Valeura anticipates will
be disclosed in the first half of 2026.
Thrace Basin Türkiye
On October 15, 2025, Valeura announced that it had entered into a joint
venture agreement with a subsidiary of Transatlantic to explore for and
develop hydrocarbons in the deep rights formations of the Thrace basin of
northwest Türkiye (the "Joint Venture"). Under the Joint Venture,
Transatlantic has an opportunity to earn a 50% working interest in Valeura's
lands in Türkiye through two phases of operations; first, through the
re-entry and testing of the Company's Devepinar-1 exploration well, and
second, by an option to drill a new deep appraisal well.
Activity began in the Thrace Basin lands in late October 2025, with re-entry
of the Devepinar-1 well to re-test the existing perforated and stimulated
interval, between 4,641 and 4,766 metres depth. These initial testing
operations will focus on gathering fluid samples and re-testing the
Devepinar-1 well in its current state. Hydraulic stimulation and testing of
the shallower Kesan formation is in the advanced planning stage, with
operations expected to commence in December 2025.
Outlook
Valeura re-affirms its guidance estimates for the full year 2025.
2025 Full Year 2025 Full Year Nine months ended September 30, 2025
Original 2025 Guidance Updated 2025 Guidance Performance
Average Daily Oil Production((1)) (mbbls/d) 23.0 - 25.5 23.0 - 25.5 22.7
Adjusted Opex((2)) (US$ million) 215 - 245 215 - 245 159
Adjusted Capex((3)) and Exploration expense (US$ million) 136 - 161 175 - 196 138
Free Cash Flow((4)) (US$ million) 112 - 227((5)) 80 - 195 67
(1) Working interest share production, before royalties.
(2) Represents adjusted opex which is a non-IFRS financial measure
- see "Non-IFRS Financial Measures and Ratios" below.
(3) Represents adjusted capex which is a non-IFRS financial
measure - see "Non-IFRS Financial Measures and Ratios" below.
(4) Represents mid-point of the production, adjusted opex, and
adjusted capex with Brent prices within the range of US$65 and US$85/bbl.
(5) Illustrative free cash flow guidance based on the Company's
original 2025 Guidance assumptions.
With nine months of 2025 production now completed, and an observed up-tick in
rates at the end of Q3 2025, the Company anticipates a full year average
production outcome within, but at the lower end of, its stated 2025 guidance
range.
Adjusted opex has trended lower than initially planned for the year, owing in
part to lower fuel costs as a result of both prevailing commodity prices and
the Company's deliberate actions to optimise use of fuel in its operations.
The Company anticipates achieving a full year adjusted opex outcome within the
lower part of its 2025 guidance range. The combination of lower production
and lower costs is expected to yield a per barrel adjusted opex in line with
the Company's mid-case 2025 guidance for the year.
The Company's adjusted capex and exploration expense was updated following its
final investment decision in May 2025 to pursue the Wassana field
redevelopment project. With the Company's largest capital spending projects
progressing on plan (including both the Wassana field redevelopment project
and the full year drilling programme), the Company re-iterates its guidance
range for the year.
The Company's 2025 guidance assumptions do not include the potential for
spending in relation to the Farm-in. Such estimates will be updated upon
closing of the Farm-in, which is subject to the approval of the Government of
Thailand.
Webcast
Valeura's management team will host an investor and analyst webcast on Monday,
November 17, 2025 at 08:00 Calgary / 15:00 London / 22:00 Bangkok / 23:00
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/cd589988-0ecc-4810-8a2a-fb92c62e0fee@a196a1a0-4579-4a0c-b3a3-855f4db8f64b
(https://events.teams.microsoft.com/event/cd589988-0ecc-4810-8a2a-fb92c62e0fee@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: 195 804 391#
Dial-in numbers:
Canada: 833-845-9589
Singapore: +65 6450 6302
Thailand: +66 2 026 9035
Türkiye: 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 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
September 30, September 30,
$'000 2025 2024
Profit for the period before other items 23,516 9,782
Other income (3,386) (2,358)
Exploration 201 363
SRB 3,582 3,334
Finance costs 5,941 7,107
DD&A 49,951 51,271
Other non-recurring G&A costs ((1)(2)) - 271
Adjusted EBITDAX 905 781
(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" in the Company's management's discussion
& analysis 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 floating storage and
offloading vessels ("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
September 30, September 30,
$'000 2025 2024
Operating Costs 49,093 47,318
Cost of Goods Sold - (271)
Adjustment of accounting related to inventory capitalisation((3)) 2,731 49,093
Adjusted Opex((1)) (excluding Leases) (4,751) (1,139)
Leases((4)) 44,342 45,908
Adjusted Opex((1)) 8,183 7,880
Production Volumes during the period (mbbl) 52,525 53,788
Adjusted Opex per Barrel((1)) ($/bbl) 2,114 2,043
(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 Petroleum Income Tax Act ("PITA")
taxes and special remuneratory benefit ("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
September 30, September 30,
$'000 2025 2024
Oil revenues 155,651 139,278
Royalties Adjusted opex (18,759) (17,218)
Adjusted opex (52,525) (53,788)
Recurring G&A costs (7,089) (4,462)
Adjusted pre-tax cashflow from operations 77,278 63,810
Income tax / PITA tax (469) (10,338)
SRB (3,582) (3,334)
Adjusted cashflow from operations 73,227 50,138
Production during the period 2,114 2,043
Adjusted cashflow from operations per barrel ($/bbl) 34.6 24.5
Three months ended
Unaudited Unaudited
September 30, September 30,
$'000 2025 2024
Cash generated from operating activities 77,512 42,364
Change in non-cash working capital 2,356 (8,181)
Non-cash items 57,024 87,877
Adjusted opex (52,525) (53,788)
Recurring G&A costs (7,089) (4,462)
Adjusted pre-tax cashflow from operations 77,278 63,810
Income tax / PITA tax (469) (10,338)
SRB (3,582) (3,334)
Adjusted cashflow from operations 73,227 50,138
Production during the period 2,114 2,043
Adjusted cashflow from operations per barrel ($/bbl) 34.6 24.5
Free cash flow: is a non-IFRS financial measure which does 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. To
calculate free cash flow, Valeura starts with adjusted cashflow from
operations, subtracts adjusted capex and exploration expenses, adds other
income, deducting any impact from foreign exchange gains or losses.
Three months ended
Unaudited Unaudited
September 30, September 30,
$'000 2025 2024
Adjusted cashflow from operations 73,227 50,138
Adjusted capex (52,355) (35,490)
Exploration expenses((1)) (267) (255)
Other income 3,386 2,358
Foreign exchange (gain) loss (218) (478)
Other finance cost (1,928) (2,157)
Free cash flow 21,845 14,116
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
September 30, December 31,
$'000 2025 2024
Outstanding Debt - -
Cash and cash equivalents 224,553 236,543
Restricted cash (Current) 874 1,093
Restricted cash (Non-current) 22,962 21,718
Cash balance 248,389 259,354
Net cash 248,389 259,354
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
September 30, December 31,
$'000 2025 2024
Current assets 363,024 340,911
Current liabilities (149,040) (185,640)
Net working capital 213,984 155,271
Current lease liabilities 38,244 28,746
Restricted cash (Non-current) 22,962 21,718
Adjusted net working capital 275,190 205,735
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
September 30, September 30,
$'000 2025 2024
Capital work in progress 16,258 -
Drilling 31,647 30,450
Brownfield 3,432 6,765
Other PPE 1,018 (1,725)
Adjusted capex 52,355 35,490
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, the expectation that the Farm-in will transform Valeura's
portfolio through multiple gas and oil developments in the coming years; the
Wassana field redevelopment project extending the life of the Wassana field,
and the anticipated first oil from the Wassana field redevelopment project
occurring in 2027; the expectation that the Wassana field redevelopment
project will increase production, reduce unit costs and create a hub for
eventual tie-in of potential additional satellite wellhead platforms; the
Company's expectations that no tax payments related to Petroleum Income Tax
will be required for the remainder of 2025; the anticipated timing of
Company's Jasmine drilling campaign and the amount of wells to be drilled; the
Company's anticipation that the Nong Yao reservoirs encountered on the Nong
Yao drilling campaign may add to the ultimate production potential of the Nong
Yao field and extend its economic life; the Company's expectation that ongoing
work on MOPU Ingenium will keep the facility in good working order;
management's estimate of the Wassana field's oil production of approximately
10,000 bbls/d (before royalties) in the second half of 2027; the Company's
expectation that no further inspections will be required prior to commencement
of production from the Wassana platform; expectations that the Farm-in will
result in a substantial expansion of Valeura's gross acreage position in
Thailand from 2,623 km(2) to 22,757 km(2) and will provide access to
discoveries and exploration prospects that can be tied back quickly to
existing oil and gas infrastructure; timing and results of the seismic
processing in respect of the Blocks; timing and commencement of a new drilling
programme on the Blocks; more information on the development planning and
timing of a final investment decision on Block G3/65; results of the Company's
partnership with the operator to assess the full resource potential of the
Blocks and the timing thereof; the Company's plan to commission a third-party
estimate of oil and gas resources, and the anticipated timing of the results
thereof; results of the re-entry of the Devepinar-1 and the timing of results
thereof; anticipated hydraulic stimulation and testing of the Kesan formation
and the timing thereof; the Company's intention to update the 2025 guidance
upon closing of the Farm-in; the Farm-in receiving approval of the Government
of Thailand;
and the expectation of a per barrel Adjusted opex result in line with the
Company's mid-case for the year.
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; 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.
This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
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. END NRAQZLBFEFLZFBD
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