Energia
Maha Energy AB Announces Filing of Fourth Quarter 2022 Report & Live Webcast
Maha Energy AB (publ) (“Maha” or the “Company”) is pleased to announce its fourth quarter results. The report is attached to this press release and available on the Company's website at www.mahaenergy.ca.
Highlights
(all amounts are in US dollars unless otherwise noted)
Fourth Quarter 2022
Full Year 2022
Financial Summary
The table below relate to continuing and discontinued operations combined:
The table below presents the highlights of the continuing operations:
The table below presents the highlights of the discontinued operations:
Letter to shareholders
Dear Friends and Fellow Shareholders of Maha Energy AB,
The fourth quarter of 2022 triggered a transformational moment for Maha with the incorporation as shareholder of the Investment Fund managed by Starboard, a Brazilian private equity firm, becoming the largest shareholder with 19.9% ownership. This significant change on Maha's shareholder structure, board of directors and management, brought renewed leadership and sectorial expertise with successful track-record in the Latin American energy industry.
Among the changes that happened since last November, it is important to highlight the following events:
The above mentioned events illustrates what the new management of Maha is pursuing for the upcoming years, which can be summarized as: (i) financial optimization, improving the Company's capital structure and capital allocation; (ii) optimization of CAPEX and OPEX to capture superior returns out of the deployed capital; and (iii) search for opportunistic targets that can be acquired at attractive entry prices and with potential scalability within its production ramp-up.
During Q4 2022, the Brazilian production was fully recovered with the workover campaign successfully completed and all production wells back on stream, with improved artificial lift and tubing leaks repaired as required. The Tie-6 well commenced water injection into the Agua Grande formation to aid in pressure maintenance and oil recovery plans. In Tartaruga, the TTG-3 well was converted to a water disposal well for produced water which will eliminate the need to truck water from Sergipe to Bahia province for treating and will reduce operating costs significantly. Good progress was made in Oman with the conclusion of the assignment of Maha's 35% work interest to Mafraq Energy. The Company is now looking forward to start testing these wells in the near-term and further appraising the Mafraq field. The Company will update the market of its developments in Oman as soon as possible. Finally, in the US our production was very stable in the Illinois Basin and averaged 280 BOPD over the quarter with minor maintenance workovers carried out to keep all wells producing.
From a financial standpoint, Q4 2022 was a transitional quarter for Maha. Total production was 2,621 BOEPD and for the full year was 3,213 BOEPD. Even though the production improved from the third quarter 2022, revenues and net results for the fourth quarter were lower due to decreasing realized oil price compared to the third quarter 2022 and high general and administrative costs relating to the transactions occurred during the quarter. For the full year 2022 revenue was USD 89.8 million compared to full year 2021 revenue of USD 68.3 million, representing a 31.5% increase. Operating netback for the current year was impacted by workover costs and inflation; however, Maha's full year 2022 operating netback of USD 60.7 million was much higher than the full year 2021 operating netback of USD 46.1 million. Maha closed the quarter with gross debt of USD 46.1 million and a cash position of USD 23.2 million (including cash relating to the discontinued operations). Maha ended the year 2022 with EBITDA of USD 55.1 million compared to EBITDA of USD 47.8 million for 2021, an increase of 15.3% on a year over year basis.
Overall, with the above information and figures, which represent a challenging transition phase for Maha, the Company is now actively working in pursuing attractive opportunities to create value for its shareholders.
Yours sincerely,
Paulo T. Arantes de Mendonça (CEO)
Q 4 Webcast to morrow 1 March at 1 8 : 3 0 CET
There will be a live webcast tomorrow, on 1 March at 18:30 CET (Sweden time) to present the quarterly results and provide an operational update. A link to the webcast is available on the Company's website: www.mahaenergy.ca. Questions posted on the day of the presentation should be made directly in the YouTube Comments/Questions field. The webcast will be broadcast live on Nyhetsbyrån Direkts Youtube Channel and is hosted by the Company Laika and will feature representatives from Maha.
This information is such information as Maha Energy AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 19 :45 CET on February 28 , 2023 .
For more information, please contact:
Paulo Mendonça (CEO)
Tel: +46 8 611 05 11
info@mahaenergy.ca
Bernardo Guterres (CFO)
Tel: +46 8 611 05 11
info@mahaenergy.ca
About Maha
Maha Energy AB (publ) is a listed, international upstream oil and gas company
whose business activities include exploration, development and production of crude oil and natural gas. The strategy is to target and develop underperforming hydrocarbon assets on global basis. Maha operates three oil
assets : Block-70 (Oman), Powder River (LAK Ranch) and Illinois Basin in the United States. The shares are listed on Nasdaq Stockholm ( MAHA-A ). The head office is in Stockholm, Sweden with a technical office in Calgary, Canada, as well as operations offices in Grayville, Illinois, USA and Rio De Janeiro, Brazil. For more information, please visit our website
www.mahaenergy.ca
Attachments
2321 Rosecrans Avenue. Suite 2200
90245 El Segundo Stati Uniti