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Highlights

  • In 3QFY24, KAR’s revenue reached USD 144.90 million, down 28.94% YoY
  • Top 10 shareholders hold 40.64% of the company, Australian Retirement Trust holds maximum stake of 7.30%
  • FY24 total production guidance revised to 1–10.3 MMboe (previously 10.5–10.8 MMboe) 

Karoon Energy Limited (ASX:KAR) is an ASX-listed oil and gas exploration and production firm that operates across Australia, Brazil and the United States.

In the third quarter of the financial year 2024 (3QFY24), the company recorded 28.94% YoY drop in its sales revenue to USD 144.90 million and 24% YoY decrease in sales volume to 2.06MMboe, driven by the timing of liftings with a cargo in transit at the end of the quarter.

During the reported quarter, production on a net revenue interest basis jumped 25% over 2QFY24. The Bauna project reported a 44% QoQ increase in production and Who Dat NRI reported a 10% QoQ fall in production because of seasonal hurricane-related shut-ins and planned maintenance. 

Recent business update

Through an ASX update dated 17 December 2024, the company informed that the production at the Baúna Project was safely halted on December 11 (Brasilia Time) due to an issue with the FPSO mooring system. Prior to the shutdown, daily production had stabilised at approximately 24,000 barrels of oil per day (bopd), following extensive maintenance work on the FPSO during Q3 2024, which included upgrades to the gas compressors and main production header. The reservoirs at the Baúna Project continue to deliver expected performance levels.

Top 10 shareholders of KAR

The top 10 shareholders of KAR have around 40.64% shareholding in the company. Australian Retirement Trust and The Vanguard Group, Inc. have the highest stake in the firm with a shareholding of 7.30% and 5.42%, respectively.

Outlook

The company has revised its FY24 production guidance for Baúna to 7.2–7.4 million barrels (MMbbl), down from the previous estimate of 7.5–7.7 MMbbl, influenced by repair schedule uncertainties.

Meanwhile, the Who Dat production forecast has been reduced to 2.9 MMboe from 3.0–3.1 MMboe, attributed to extended maintenance following Hurricane Rafael and a slower ramp-up in production. Consequently, the total FY24 production guidance has been revised to 10.1–10.3 MMboe, compared to the earlier range of 10.5–10.8 MMboe.

Share performance of KAR

KAR shares closed 0.77% lower at AUD 1.285 per share on 23 December 2024. Over the past year, KAR’s share price has recorded a fall of nearly 37.31% and in three months, the share price has dropped by nearly 15.18%.

52-week high of KAR is AUD 2.42, recorded on 15 April 2024 and 52-week low is AUD 1.175, recorded on 18 December 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 23 December 2024. The reference data in this report has been partly sourced from EODHD/Others.