Proactive Investors - i3 Energy PLC (LON:I3E) looks forward to 2024 and beyond in a much-strengthened financial position, chief executive Majid Shafiq told investors.
Shafiq, in the company’s full year results statement, added that the company has a strong balance sheet and is growing relationships with providers of debt capital for growth.
In 2023, the company achieved a record annual production of 20,711 barrels of oil equivalent per day, a 2% increase over the prior year's total. It drove group revenue to £146.3 million for the year.
This was achieved despite the impact of the Alberta wildfires and market volatility.
i3 Energy declared total dividends of £13.3 million for the year, whilst reporting net operating income of £74.5 million. Earnings (adjusted EBITDA) came in at £67.8 million. Group profit after tax was marked at £15.2 million.
Capital expenditure amounted to £23.2 million for the year, funding the completion of twelve wells.
During the year, the company successfully refinanced its debt through a C$100 million facility with Trafigura.
“Our core asset base continues to perform consistently well and will underpin the development of the significant undeveloped reserve and resource potential in our portfolio,” Majid Shafiq said.
“We look forward to executing a successful drilling programme in Canada in 2024, in what we believe will be a more positive pricing environment, growing production and continuing to return cash to shareholders to deliver on our total shareholder return model."
Looking back to last year’s operatons, Shafiq commented: “"i3 entered 2023 with strong momentum following a very successful Q4 drilling campaign in 2022 … However, as became common for 2023, the market was hit by volatile commodity prices, and, alongside natural disasters like the Alberta wildfires, and planned turnarounds and debottlenecking projects, i3 moved quickly to revaluate its capital programme and protect its balance sheet.
“We proceeded to focus on low-risk wells in our core production assets and appraisal wells in the Clearwater and are very pleased with the results, which were delivered on budget even in an inflationary cost environment.
“Despite these challenges and due to our ability to adapt our portfolio and investment and drilling strategy quickly, i3 achieved record annual average production of 20,711 boepd.
“This is a testament to the quality of our low decline production base, our low-risk drilling inventory and the skills and dedication of our employees.”
Shafiq added that i3 Energy remains committed to delivering shareholder value via cash returns and growth.
“Management continuously weighs the expected returns generated through organic portfolio development against potential acquisition opportunities, which we continue to actively evaluate.”