Star Energy Group PLC has released its full-year results for the year ended 31 December 2023. The company's Chief Executive Officer, Chris Hopkinson, highlighted the strong production in 2023 and the successful securing of a new €25 million secured financing facility. This facility is expected to provide the business with better positioning for the longer term and enable sustained growth, particularly in the geothermal activities, while also allowing greater flexibility to optimize the value of the entire asset portfolio.
In terms of financial performance, the company reported revenues of £49.5m, a decrease from £59.2m in 2022. The net debt decreased to £1.6m from £6.1m in the previous year. Adjusted EBITDA stood at £16.1m, down from £21.1m in 2022. The loss after tax was £(5.5)m, an improvement from £(11.8)m in the previous year. The company also reported a cash and cash equivalents balance of £3.9m.
The corporate and financial highlights included the successful securing of a bespoke €25 million transition financing facility provided by Kommunalkredit Austria AG, which will support the transition strategy into geothermal energy and enable continued investment in the oil and gas business. The company also experienced significant growth in its geothermal portfolio, entering a new geography with a Croatian acquisition and subsequent license awards.
Operationally, the company reported net production averaging 2,100 boepd in 2023, beating guidance, with uptime across the portfolio remaining strong over the year. The company anticipates net production of approximately 2,000 boepd and operating costs of approximately $41/boe in 2024.
The company's Chairman, in his statement, expressed delight in presenting the strong operational performance in 2023, despite the impact of lower oil prices on the underlying operating profit. The successful conclusion of a refinancing of the existing debt facility post-year end was highlighted as an important milestone for the company, providing the runway to deliver on its transition strategy.
Overall, the company's focus on optimizing near-term conventional production, developing and monetizing the geothermal business, and its successful securing of a new financing facility positions it for sustained growth and operational success in the coming years.