• Revenue: $808 million, up 19%.
• EBITDA: $368 million, up 3%.
• Net Income: $246 million, a record level, up 2%.
• Group Share of Net Income: $233 million, up 9% year-over-year.
• Free Cash Flow: $241 million, up 54% from 2023.
• Net Cash Position: Positive $34 million at December 31, 2024, compared to a net debt of $120 million at the end of 2023.
• Dividend: Proposed EUR0.33 per share, up 10% from the previous year.
• Production: Up 29% to 36,244 barrels per day.
• Operating Cash Flow: $272 million, up 9%.
• Available Liquidity: $260 million, including $193 million in cash.
• Debt Position: Total debt reduced to $160 million from $700 million in 2019.
• Dividend Paid: $64 million in 2024.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Etablissements Maurel & Prom (FRA:ETX) reported a solid operational and financial performance for 2024, with a 30% increase in output.
• The company achieved a positive net cash position for the first time since 2007, with a free cash flow of $241 million, up 54% from 2023.
• A dividend increase of 10% was proposed, reflecting confidence in the company's financial health.
• The acquisition of a 40% stake in the Sinu-9 gas permit in Colombia is expected to enhance production capacity and diversify cash flow.
• The company has significantly reduced its debt from $700 million in 2019 to $160 million in 2024, strengthening its financial position.

Negative Points

• The company experienced some environmental and security incidents in 2024, leading to work stoppages, although they were minor.
• There is uncertainty regarding the impact of US sanctions on Venezuela, which could affect the company's operations and dividends from the region.
• Tanzania's production was 2% below guidance, indicating potential challenges in meeting demand.
• Financial expenses increased from $20 million to $23 million due to currency fluctuations, impacting the company's financial results.
• The legislative and legal context in Italy is complex, which could pose challenges for exploration activities in the region.

Q & A Highlights

Q: Can you provide information on the Fiume Tellaro exploration project, including the target and budget? A: The Fiume Tellaro exploration is focused on oil and gas, primarily crude. The potential is high based on a 2020 seismic campaign. The budget is north of $10 million, and while the targets aren't huge, they could yield a few thousand barrels of oil per day per well.

Q: What type of assets is M&P targeting for acquisitions? A: M&P aims to continue acquisitions in South America and Africa, focusing on both onshore and offshore projects. The preference is for assets under operation or those with potential to reach an operating stage, with opportunities in both oil and gas.

Q: What is M&P's dividend policy and approach to gearing? A: M&P is committed to both growth and substantial dividend payouts. The company has consistently increased dividends over the years and plans to continue this trend, ensuring shareholders receive good returns while also pursuing growth opportunities.

Q: Can we expect a dividend increase from Seplat following its acquisition of ExxonMobil assets? A: It is very likely that Seplat will increase its dividend, given the significant acquisition and change in scope. Seplat's dividends have been increasing over the past two years, and this trend is expected to continue.

Q: What are the expectations for the Etekamba gas project in Gabon? A: The Etekamba gas project has shown positive exploration results, with potential reserves around 100 Bcf. The market is available, and agreements with authorities are in place to utilize the asset, although it is not considered a major asset.

Q: Could you provide more details about the financial expenses? A: Financial expenses increased from $20 million last year to $23 million this year, primarily due to accounting impacts from a stronger dollar, which affects the euros held by the company.

Q: What is M&P's stance on future acquisitions in Colombia? A: Colombia is a familiar market with significant potential. M&P holds a 40% interest in the Sinu-9 permit and is open to increasing its stake if opportunities arise, with interesting trends expected in the region.

Q: What is the strategy for share buybacks in 2025? A: The buyback strategy is not extensive, with $5 million worth of shares bought back in 2024. Depending on the situation, M&P may continue with similar buybacks in 2025, potentially ranging from 5% to 20%.

Q: At what Brent price level would it become a problem for M&P? A: M&P's breakeven is between $25 and $40 per barrel, with a positive result at $40 after debt service. The company is confident in its financial position and ability to withstand adverse market conditions.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.