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Highlights

  • 2024 production averaged 8,050 boepd with major strides in Balder Future and Hill Top projects.

  • Statutory loss of $52 million due to impairment and non-cash currency effects, but $95 million adjusted EBITDA reported.

  • 2025 outlook remains positive with Balder Future first oil targeted for Q2 and Victory gas field due in Q4.

Independent energy company Kistos (LSE:KIST) has released its audited full-year financial and operational results for the year ended December 31, 2024, showcasing significant project progress and a resilient performance despite macroeconomic challenges.

Operational Achievements and Strategic Milestones

Kistos made marked progress across key assets in 2024. The company advanced its flagship Balder Future project, successfully completing the Jotun FPSO sail away after the reporting period, setting the stage for first oil in Q2 2025. The acquisition of EDF Energy’s onshore UK gas storage assets further diversified Kistos’ portfolio and enhanced its midstream capabilities. These assets underwent a successful ‘soft cycling’ trial, resulting in a 24% uplift in working gas capacity.

Stable Production and Resource Growth

Production averaged 8,050 barrels of oil equivalent per day (boepd), aligning with guidance and supported by better-than-expected output from the Greater Laggan Area (GLA). Year-end reserves stood at 24.4 million barrels of oil equivalent (mmboe) in 2P reserves, with a substantial 57.5 mmboe in 2C contingent resources. The Hill Top gas storage site delivered encouraging results with 93.5% operational availability, injecting 112 million therms and withdrawing 97 million therms during the year. Early hedging activity secured average pricing of 23.5 pence per therm for gas injections in July 2024 and expected withdrawals in Q1 2025.

Financial Performance

Kistos reported adjusted EBITDA of $95 million, down from $130 million in 2023, due to a combination of market conditions and continued capital investments. Capital expenditure rose to $144 million, reflecting sustained investment in the Balder Future project. The company recorded a statutory after-tax loss of $52 million, impacted by a $34 million impairment charge and a $26 million non-cash currency loss, which has since reversed.

Tax rebate receivables of approximately NOK 746 million ($65 million) related to 2024 investments are expected in December 2025. As of year-end, Kistos held $114 million in cash, with an additional $29 million in restricted funds. Adjusted net debt was $52 million, reversing from a net cash position of $62 million a year earlier. Notably, the carrying value of its Hybrid Bond debt decreased to $0.7 million, linked to expected milestone achievements including the offload of 500,000 barrels of oil from the Jotun FPSO.

Positive Outlook for 2025

Looking ahead, Kistos has reaffirmed its 2025 production guidance at 8,000–9,000 boepd. Key operational goals include the final hook-up and commissioning of the Jotun FPSO, with initial production from Balder Future wells expected in the second half of the year, potentially ramping area production up to 110,000 boepd gross.

Further drilling is ongoing in Balder Phase V, with first flows anticipated by year-end. The company also aims to convert 2C resources to 2P reserves through ongoing development and exploration. A change in operator for the GLA is expected in H1 2025, potentially accelerating project sanctioning. Meanwhile, the Victory gas field remains on track for Q4 2025 start-up, with production to be processed via the Shetland Gas Plant.