Kistos Reports Widening Losses and Project Delays in 2024 Full Year Results
Why we think this is bad
The 2024 results paint a challenging picture for Kistos. The company's statutory loss after tax has nearly doubled to $52 million, while revenue slightly decreased. More concerning is the shift from a net cash position to a net debt position, with cash balances significantly reduced. The delays in key projects like Balder Future are worrying, as they could impact future revenues and cash flows. While there are some positive developments, such as the acquisition of gas storage assets, these are overshadowed by the financial performance and operational challenges. The mention of headwinds and a competitive landscape in the current trading environment further adds to the negative outlook.
Key Points
- Statutory loss after tax increased to $52 million from $27 million in 2023
- Revenue slightly decreased to $216 million from $223 million
- Adjusted EBITDA fell to $95 million from $130 million
- Net debt position of $52 million, compared to net cash of $62 million in 2023
- Cash balances decreased to $114 million from $215 million
- Balder Future project facing delays, with first oil targeted for end of Q2 2025
- Acquired EDF Energy's gas storage assets, increasing working gas capacity
- FY25 production guidance maintained at 8,000-9,000 boepd
- Berenberg Bank reiterates 'Buy' rating with 465.00p price target
Summary
Kistos Holdings plc has released its 2024 full-year results, revealing a challenging financial year. The company reported a statutory loss after tax of $52 million, nearly double the previous year's loss. Revenue slightly decreased to $216 million, while Adjusted EBITDA fell to $95 million from $130 million. Notably, the company's cash position deteriorated, moving from a net cash position of $62 million to a net debt of $52 million. The Balder Future project faces delays, potentially impacting future revenues. On a positive note, Kistos acquired EDF Energy's gas storage assets and increased working gas capacity. The company maintains its FY25 production guidance at 8,000-9,000 boepd. Berenberg Bank has reiterated a 'Buy' rating with a price target of 465.00p, suggesting potential upside despite current challenges.