Karoon Energy (ASX: KAR) expects production to improve in CY24

Highlights

• Karoon Energy is an oil and gas production and exploration company, listed on ASX
• In FY23, the company recorded 70.4% rise in underlying NPAT to USD 145.90 million
• Australian Retirement Trust has the highest stake in KAR, with a shareholding of 4.34%

Karoon Energy Limited (ASX:KAR) is a global oil and gas exploration firm which manages assets in Australia, the United States of America and Brazil.

In the financial year 2023 (FY23), the company reported 47.1% YoY rise in sales revenue to USD 566.50 million and 56.8% YoY growth in underlying EBITDA to USD 321.80 million. In FY23, underlying NPAT decreased by 70.4% to USD 145.90 million.

Rise in top-line during the reported period depicts higher production from the Bauna interventions and Patola development, which was offset weaker oil prices. KAR’s oil production in FY23 grew by 52% YoY to 7.04 million barrels.

Top 10 shareholders of KAR

The top 10 shareholders of KAR have around 20.04% shareholding in the firm. The top two shareholders of KAR are Australian Retirement Trust and State Street Global Advisors Australia Ltd, with a shareholding of nearly 4.34% and 3.13%, respectively.

Recent business update

Through an ASX-filing dated 22 December 2023, the company informed that it had finalized the acquisition of US Gulf of Mexico from LLOG Exploration Offshore, LLC, and LLOG Omega Holdings on 21 December 2023. With this development, KAR’s geographic and asset reach has expanded.

Outlook

In CY24, expected range of Brazil production is 7.2 to 9.0 million barrels, while the expected range of total production including the Who Dat assets is 11.2 – 13.5 million barrels of oil equivalent.

For the stated period, unit production costs are expected to be USD 10.5 – 15 per boe, which is higher than the previous range of USD 9 – 14 per boe, owing to the intervention costs and reduced production.

The company is focused on continuous evaluation of development and exploration opportunities, focused on Australia and Brazil.

Share performance of KAR

KAR shares closed 0.26% down at AUD 1.905 apiece on 25 January 2024. With this, KAR’s share price has fallen by 17.08% in the last 12 months and has declined by 23.35% in the past three months.

The 52-week high of KAR is AUD 2.708, recorded on 2 October 2023, while the 52-week low is AUD 1.77, recorded on 18 January 2024.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 25 January 2024. The reference data in this report has been partly sourced from REFINITIV.

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