Kolibri Global Energy Inc. ((TSE:KEI)) has held its Q4 earnings call. Read on for the main highlights of the call.
Kolibri Global Energy Inc. recently held its earnings call for 2024, which highlighted a strong performance throughout the year. The company reported significant production increases, robust revenue growth, and effective cost management, despite facing some challenges with net income and pricing. The overall sentiment was optimistic, with strategic initiatives and cost control measures positioning the company well for future growth, as reflected in positive forecasts for 2025.
Significant Production Increase
Kolibri Global Energy Inc. achieved a remarkable 24% increase in production over the previous year, reaching 3,478 BOE per day compared to 2,796 BOE per day in 2023. This substantial growth underscores the company’s operational efficiency and strategic focus on expanding its production capabilities.
Record-Breaking Revenue and EBITDA
The company reported a net revenue of $58.5 million for 2024, marking a 60% increase from the prior year. Additionally, the adjusted EBITDA rose by 28% to $44 million. These record-breaking figures highlight Kolibri’s successful financial performance and strong market position.
Successful Cost Management
Kolibri maintained its operating expenses at $7.44 per BOE, demonstrating significant improvements in drilling times and costs. This effective cost management strategy has been a key factor in the company’s ability to sustain profitability and growth.
Crude Reserves Growth
The company reported a 24% increase in year-end crude reserves compared to 2023. This growth in reserves is a positive indicator of Kolibri’s future production potential and resource management capabilities.
Positive Stock Performance
Kolibri’s stock price experienced a substantial gain of 58% in 2024 and continued to rise into 2025. This positive stock performance reflects investor confidence in the company’s strategic direction and financial health.
Net Income Decrease
Despite the strong overall performance, Kolibri’s net income decreased by 6% to $18.1 million, with earnings per share dropping from $0.54 to $0.51 compared to 2023. This decline highlights some challenges the company faced in maintaining its net profitability.
Price and Netback Decline
The average prices dropped by 7%, and the netback from operations decreased to $38.54 per BOE, down from $42.97 in 2023. These declines indicate some pricing pressures that affected the company’s overall financial metrics.
Higher Operating Expenses
Operating expenses saw an increase compared to 2023, with specific mention of $0.63 cost true-ups included in 2024. This rise in expenses suggests areas where the company may need to focus on improving efficiency.
Optimistic 2025 Forecast
Kolibri Global Energy Inc. provided an optimistic forecast for 2025, anticipating production growth between 29% and 47% and a revenue increase of 28% to 52%. The company plans to invest $48 million to $53 million in CapEx, funding nine wells, including seven longer laterals, primarily through operational cash flow. Additionally, they intend to continue their share buyback program and aim to maintain a net debt of $25 million to $30 million by year-end 2025.
In summary, Kolibri Global Energy Inc.’s 2024 earnings call reflected a strong performance with significant production and revenue growth, despite some challenges in net income and pricing. The company’s strategic initiatives and cost management have positioned it well for future growth, as indicated by their optimistic forecasts for 2025. Investors and stakeholders can look forward to continued positive developments from Kolibri as it progresses into the next fiscal year.