Karoon Energy Team. Source: Karoon Energy
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  • Following its first year as an oil producer, Karoon Energy (KAR) has raked in $29.1 million in profit over the first half of this financial year
  • In its half year report, KAR revealed underlying net profit after tax (NPAT) for the period was up from $12.9 million in the prior corresponding period
  • However, a statutory net loss after tax of $135 million was reported, which included a non-cash adjustment for the Baúna asset in Brazil following an increase in oil price outlook
  • The company ended the half with cash and equivalents of $282.5 million, with $179.9 million in undrawn debt
  • Shares have been trading 4.2 per cent higher at $1.96 at 1:27pm AEDT

Following its first year as an oil producer, Karoon Energy (KAR) has raked in $29.1 million in profit over the first half of this financial year.

In its half-year report, KAR has revealed underlying net profit after tax (NPAT) for the period was up from $12.9 million in the prior corresponding period.

While underlying revenue totalled $257.7 million, a 27 per cent increase on the second half of financial year 2021, production costs, royalties as well as inventory movements contributed to the resulting NPAT.

However, a statutory net loss after tax of $135 million was reported, which included a non-cash adjustment to the anticipated contingent consideration payable to Petrobras for the Baúna asset in Brazil, of $167.6 million net of tax, following an increase in Karoon’s oil price outlook.

The Baúna field had an annual decline rate of 15 per cent when KAR took over ownership, and over the first half of this year that percentage has been mitigated to around ten per cent.

In the second half, production is anticipated to be lower due to scheduled maintenance next month and an intervention campaign over April and May.

Following completion of the campaign, the company plans to drill two new development wells, targeting first Patola production early in the calendar year 2023.

Karoon is also working towards becoming carbon neutral for its Scope 1 and 2 Baúna greenhouse gas emissions for this year, and has entered into an agreement with Shell to purchase more than 480,000 carbon credits which will result in 60 per cent of the total emissions to be offset to 2030.

The company ended the half with cash and equivalents of $282.5 million, with $179.9 million in undrawn debt.

Shares were trading 3.3 per cent higher at $1.96 at 1:27 pm AEDT.

KAR by the numbers
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