SINGAPORE, May 14, 2025 (GLOBE NEWSWIRE) -- Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF) (“Valeura” or the “Company”) reports its unaudited financial and operating results for the three month period ended March 31, 2025.
The complete quarterly reporting package for the Company, including the unaudited financial statements and associated management's discussion and analysis (“MD&A”) are being filed on SEDAR+ at www.sedarplus.ca and posted to the Company's website at www.valeuraenergy.com.
Highlights
- Oil production of 23,853 bbls/d(1), an increase of 9% compared to Q1 last year;
- Adjusted opex(2) trending downward, to US$24.1/bbl, a decrease of 8% compared to Q1 last year;
- Adjusted Cashflow from Operations(2) of US$74.0 million, an increase of 55% compared to Q1 2024, demonstrating the effects of the corporate restructuring and application of tax loss carry-forwards;
- The Company's balance sheet remains very strong, with US$239 million cash(3) and no debt; and
- Adjusted Working Capital(2) of US$254 million.
(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$23.4 million.
Dr. Sean Guest, President and CEO commented:
“We have demonstrated our ability to generate increasing cash flow. Q1 2025 was the first full quarter benefitting from our corporate re-organisation, which makes it possible to optimise the use of tax loss carry-forwards. As a result, our post-tax Adjusted Cashflow from Operations(1) increased to US$74 million, up 55% compared to the same quarter of last year, on revenue that is essentially unchanged. This creates a uniquely resilient position for our Company, which makes it possible for us to weather volatile markets better than many of our competitors.
Underlying this is a respectable operational performance which saw us produce at an average rate of 23,854 bbls/d, while recording Adjusted Opex per barrel(1) of US$24/bbl. The long-term downward trend in Adjusted Opex per barrel(1) is a direct reflection of our strategic priorities in action – operating our assets in a worldclass manner with the objective of driving deeper efficiency and maximising cash flow and growth from our assets.
Our balance sheet echoes this sentiment too. Even after a quarter with a US$39 million out-of-round tax payment and a build in oil inventory, our financial position remained strong, with a March 31st cash balance of US$239 million and no debt. As a result, we are in a prime position to pursue both organic and inorganic growth ambitions and continue to see exiting opportunities come to the foreground.”
(1) Non-IFRS financial measure or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section below.
Financial and Operating Results Summary
| Three months ended Mar 31, 2025 |
Three months ended Dec 31, 2024 |
Delta (%) | Three months ended Mar 31, 2024 |
Delta (%) | ||||||
| Oil Production(1) | (‘000 bbls) | 2,147 | 2,402 | -11 | % | 1,991 | 8 | % | ||
| Average Daily Oil Production(1) | (bbls/d) | 23,853 | 26,109 | -9 | % | 21,882 | 9 | % | ||
| Average Realised Price | (US$/bbl) | 78.7 | 76.7 | 3 | % | 84.6 | -7 | % | ||
| Oil Volumes Sold | (‘000 bbls) | 1,881 | 2,948 | -36 | % | 1,765 | 7 | % | ||
| Oil Revenue | (US$'000) | 148,081 | 226,148 | -35 | % | 149,408 | -1 | % | ||
| Net Income | (US$'000) | 14,073 | 213,983 | -93 | % | 19,418 | -28 | % | ||
| Adjusted EBITDAX(2) | (US$'000) | 87,216 | 132,402 | -34 | % | 88,721 | -2 | % | ||
| Adjusted Pre-Tax Cashflow from Operations(2) | (US$'000) | 74,384 | 133,612 | -44 | % | 72,088 | 3 | % | ||
| Adjusted Cashflow from Operations(2) | (US$'000) | 73,954 | 107,134 | -31 | % | 47,855 | 55 | % | ||
| Operating Expenses | (US$'000) | 38,852 | 55,607 | -30 | % | 41,788 | -7 | % | ||
| Adjusted Opex(2) | (US$'000) | 51,684 | 54,668 | -5 | % | 52,264 | -1 | % | ||
| Operating Expenses per bbl | (US$/bbl) | 18.1 | 23.2 | -22 | % | 21 | -14 | % | ||
| Adjusted Opex per bbl(2) | (US$/bbl) | 24.1 | 22.8 | 6 | % | 26.2 | -8 | % | ||
| Adjusted Capex(2) | (US$'000) | 32,899 | 38,870 | -15 | % | 29,257 | 12 | % | ||
| Weighted average shares outstanding – basic | (‘000 shares) | 106,532 | 106,955 | 0 | % | 103,229 | 3 | % | ||
| As at Mar 31, 2025 |
As at Dec 31, 2024 |
Delta (%) | As at Mar 31, 2024 |
Delta (%) | ||||||
| Cash & Cash equivalents(3) | (US$'000) | 238,871 | 259,354 | -8 | % | 193,683 | 23 | % | ||
| Adjusted Net Working Capital(2) | (US$'000) | 253,511 | 205,735 | 23 | % | 141,877 | 79 | % | ||
| Shareholder's Equity | (US$'000) | 538,137 | 528,283 | 2 | % | 304,318 | 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$23.4 million.
Financial Update
The Company's Q1 2025 financial performance reflects ongoing strong production operations at all four of its fields in the offshore Gulf of Thailand. Valeura's working interest share production before royalties totalled 2.15 million bbls during Q1 2025, an increase of 8% from Q1 2024. Production was in line with the Company's expectations considering the Nong Yao field experienced a planned maintenance shutdown.
Oil sales totalled 1.88 million bbls during Q1 2025, which was less than the volume produced, and therefore contributed to an oil inventory increase to 0.89 million bbls at March 31, 2025. As all of the Company's oil production is stored in floating offshore vessels before being sold in parcels of approximately 200,000 – 300,000 bbls, at any given time, the Company maintains some quantity of oil held in inventory.
Price realisations averaged US$78.7/bbl, which was 7% lower than the same period in 2024, reflecting lower global benchmark oil prices. The Company's oil sales continue to achieve a premium when compared to the Brent crude oil benchmark, averaging US$2.9/bbl in Q1 2025, versus US$1.6/bbl in Q1 of 2024. Valeura generated oil revenue of US$148 million in Q1 2025, essentially unchanged from the oil revenue generated Q1 2024, reflecting the increase in production being offset by reduced sales prices.
Operating expenses during Q1 2025 reflect a long-term trend of improving production efficiency, influenced by ongoing strong performance of the Nong Yao field, which is both the Company's largest source of production and also the lowest unit cost field in Valeura's portfolio. Along with operating expenses, the Company includes the price of leases for its floating offshore infrastructure (being US$8.5 million) to derive an Adjusted Opex(1) of US$51.7 million in Q1 2025, which equates to a per-unit rate of US$24.1/bbl, an improvement of 8% when compared to Q1 2024.
Valeura generated adjusted cashflow from operations(1) (pre-tax) of US$74.0 million, which was a 55% increase over Q1 2024. The increase is directly related to the more tax-efficient corporate structure as a result of the Company's corporate re-organisation, which was completed in November 2024. Under the new structure, Valeura may apply its tax loss carry-forwards to taxable income for the Nong Yao, Manora, and Wassana fields.
While cash tax payments are normally paid in May and August each year, the Company made a final tax payment of US$39.2 million in connection with its corporate restructuring. This payment effectively completed the tax obligations for its Thai III licences under their previous organisation structure, giving rise to the more optimised application of tax loss carry-forwards as noted above. In addition to this out-of-round payment, Valeura made cash outlays in respect of its operating costs and capex of US$32.9 million. As a result, Valeura's cash position at March 31, 2025 was US$238.9 million, inclusive of restricted cash of US$23.4 million. Valeura's net working capital surplus was US$253.5 million at March 31, 2025.
(1) Non-IFRS financial measure or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section below.
Operations Update and Outlook
During Q1 2025, Valeura had ongoing production operations at all of its Gulf of Thailand fields, including Jasmine, Manora, Nong Yao, and Wassana fields. Total working interest share production before royalties averaged 23,853 bbls/d, which was in line with management's expectations and consistent with achieving the Company's guidance range for the full year 2025 of 23,000 – 25,500 bbls/d. One drilling rig was under contract throughout the quarter.
Jasmine/Ban Yen
Oil production before royalties from the Jasmine/Ban Yen field, in Licence B5/27 (100% operated interest) averaged 8,356 bbls/d during Q1 2025.
In February 2025, the Company's contracted drilling rig began a seven-well infill drilling campaign which includes both development and appraisal targets on the Jasmine C, Jasmine D, and Ban Yen A facilities. Drilling operations are progressing safely and on time. The drilling programme is expected to be complete approximately by the end of May 2025.
Also during Q1 2025, a low-BTU gas generator was delivered to the Jasmine B platform. Installation and commissioning activities in respect of the low-BTU gas generator are underway, with the new equipment planned to be fully operational and online later in Q2 2025. The low-BTU gas generator is a modernisation of the Jasmine B platform's power generation facility, which will enable a waste gas stream to be used as feedstock for power generation, thereby reducing the Jasmine field's reliance on diesel. As a result, Valeura anticipates immediate savings in operating expenses and a long-term reduction in its greenhouse gas emissions from the Jasmine field.
Nong Yao
At the Nong Yao field, in Licence G11/48 (90% operated working interest), Valeura's working interest share production before royalties averaged 9,275 bbls/d. As a result of the Company's development of the Nong Yao C field extension in 2024, Nong Yao has become the Company's largest source of production, with the Company's lowest per unit Adjusted Opex.
Near the end of Q1 2025, Valeura conducted a planned seven-day annual maintenance shutdown of the Nong Yao field. All maintenance work was performed safely, under budget, and ahead of schedule. The Nong Yao field has since resumed normal operations.
Wassana
Oil production before royalties from the Wassana field, in Licence G10/48 (100% operated interest), averaged 3,686 bbls/d during Q1 2025. Production operations progressed without incident throughout the quarter. No wells were drilled during the quarter.
During Q1 2025 Valeura completed the front end engineering and design work for the potential redevelopment of the Wasssana field and more recently has finalised detailed contracting and procurement work to validate cost assumptions for the project.
As announced separately today, the Company has determined a positive final investment decision and intends to pursue the Wassana field redevelopment project, targeting the start of production from a newly built facility in Q2 2027.
Manora
At the Manora field, in Licence G1/48 (70% operated working interest), Valeura's working interest share of oil production before royalties averaged 2,536 bbls/d.
During Q1 2025, Valeura completed a five-well infill drilling campaign on the Manora field, comprised of both development and appraisal targets. The drilling programme achieved its objectives and successful appraisal results have identified between three and five potential future drilling targets, which are now being evaluated for inclusion in a future drilling programme.
Türkiye
The Company had no active operations in Türkiye during Q1 2025. Valeura continues to hold an interest in a potentially large deep gas play in the Thrace basin in the northwest part of the country. The terms of the subject leases and licences have been extended to June 27, 2026, with further extensions possible for appraisal purposes thereafter.
Valeura intends to farm out a portion of its interest to a new partner in order to jointly pursue the next phase of appraisal work. The Company continues to see the Thrace basin deep gas play as a source of significant potential value in the longer-term.
Webcast
Valeura's Annual General Meeting of Shareholders is scheduled for today, May 14, 2025, at 4:00 P.M. (Calgary time) in Calgary. Shareholders may attend in person, as further detailed in the Management's Information Circular which was mailed to shareholders and is available on the Company's website and on www.sedarplus.ca. A webcast of the live event is available with the link below. In addition to the meeting, Valeura's management will discuss the Q1 2025 results and will host a question and answer session. Written questions may be submitted through the webcast system or by email to IR@valeuraenergy.com.
Participants are advised to register for the online event in advance, using the following link: https://events.teams.microsoft.com/event/f0e30b40-c6bc-4673-bd84-b57491e1ba58@a196a1a0-4579-4a0c-b3a3-855f4db8f64b
An audio only feed of the Meeting is available by phone using the Conference ID and dial-in numbers below:
Conference ID: 239 311 896 799
Dial-in numbers:
Canada: (833) 845-9589,,49176158#
Singapore: +65 6450 6302,,49176158#
Thailand: +66 2 026 9035,,49176158#
Türkiye: 0800 142 034779,,49176158#
United Kingdom: 0800 640 3933,,49176158#
United States: (833) 846-5630,,49176158#
For further information, please contact:
| Valeura Energy Inc. (General Corporate Enquiries) Sean Guest, President and CEO Yacine Ben-Meriem, CFO Contact@valeuraenergy.com |
+65 6373 6940 |
| Valeura Energy Inc. (Investor and Media Enquiries) Robin James Martin, Vice President, Communications and Investor Relations IR@valeuraenergy.com |
+1 403 975 6752 / +44 7392 940495 |
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/.
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.
More details could be found via this link: Valeura Energy Inc.: First Quarter 2025 Results