Kistos earnings narrow amid ongoing capital spend
By Josh White
Date: Friday 11 Apr 2025
(Sharecast News) - Kistos posted adjusted EBITDA of $95m for the year ended 31 December on Friday, down from $130m in 2023, reflecting lower earnings amid ongoing capital investment.
The AIM-traded company reported a statutory post-tax loss of $52m, impacted by a $34m impairment charge and a $26m non-cash currency loss, which it said had since reversed.
Capital expenditure for the year totalled $144m, primarily driven by continued investment in the Balder Future project, which reached a major milestone with the post-period sail-away of the Jotun FPSO.
Net debt stood at $52m at year-end, compared with net cash of $62m a year earlier.
Cash balances were $114m, excluding $29m in restricted funds.
Operationally, Kistos said it achieved average daily production of 8,050 barrels of oil equivalent, in line with guidance, and reported year-end 2P reserves of 24.4 million barrels of oil equivalent, alongside 2C resources of 57.5 million equivalent barrels.
The company also completed the acquisition of EDF Energy's UK onshore gas storage assets and reported a 24% increase in working gas capacity at Hill Top following the final phase of testing.
Looking ahead, Kistos reaffirmed 2025 production guidance of 8,000 to 9,000 barrels of oil equivalent per day.
First oil from Balder Future was expected by the end of the second quarter, with ramp-up in the second half of the year potentially boosting gross area production to 110,000 daily equivalent barrels.
Drilling of six phase five wells was continuing, with initial production expected before year-end.
The Victory gas field remained on track for start-up in the fourth quarter of 2025, as front-end engineering work continued at the Hole House storage site, targeting a potential expansion in capacity.
Kistos also confirmed that a change in GLA operatorship was expected in the first half of the year to support commercial progress on near-term developments.
The company said it was continuing to assess merger and acquisition opportunities to support its growth strategy.
"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," said executive chairman Andrew Austin.
"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 cash flow while also increasing the ratio of oil in our portfolio."
Austin said the completion of the Balder Future project unlocked the Balder Phase V wells, and would spur further development opportunities in the area as the firm looked to convert 2C contingent resources to 2P reserves with further infill drilling and exploration, 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."
At 1128 BST, shares in Kistos Holdings were flat at 122p.
Reporting by Josh White for Sharecast.com.
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