Pharos Energy PLC, an independent energy company, has released its preliminary results for the year ended 31 December 2023. The company's CEO, Jann Brown, highlighted the successful drilling activities in Vietnam and Egypt, as well as the management of challenges in Egypt, resulting in a strong financial position with net debt down to $6.6m and cash balances of $32.6m. The company also announced a final dividend for the 2023 financial year of 0.77 pence per share, subject to shareholders' approval at the Company's 2024 AGM, representing a 10% increase from the prior year.
In 2023, the Group's working interest production was 6,508 boepd net, with strong performance from the first new CNV lateral well in Vietnam and three new wells put on production and injection in Egypt. The company also received positive feedback from PetroVietnam and the Ministry of Industry and Trade on five-year extension proposals to the TGT & CNV licences. In Egypt, exploration success was achieved with the first commitment well in the Abu Roash G and Upper Bahariya formations, and the first exploration commitment well (NBS-SW1X) was declared a commercial discovery and put on production in December 2023.
Financially, the Group reported a revenue of $168.1m, with cash generated from operations at $88.8m and operating cash flow at $44.9m. The company ended the year with cash balances of $32.6m and net debt down to $6.6m. The loss for the year was $48.8m, compared to a profit of $24.4m in 2022. The net debt to EBITDAX ratio was 0.06x, showing a significant improvement from the previous year.
Looking ahead to 2024, the company plans to drill the potentially transformational Block 125 in Vietnam and continue its modest and measured approach to capital allocation and drilling in Egypt. The focus for this year's work programme in Egypt is low-cost recompletions and waterflood, with ongoing engagement with EGPC regarding payment of receivables and more favorable outlook following substantial support packages committed to Egypt.
Pharos Energy PLC is committed to delivering value for all stakeholders in 2024 and beyond, with a strong balance sheet providing the foundation to continue its track record of delivering shareholder returns.