Karoon Energy Ltd (KAR) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you very much, Darcy. And good morning, everyone. Thank you for joining our 2025 Half-Year Results webcast. My name is Julian Fowles, the CEO at Karun, and I have with me this morning Ray Church, our CFO, and Anne Diamond, our head of IR. Earlier this morning, we released our 2025 Half-Year Results to the market, and we're now going to talk through those. Noting the disclaimers on slide two, I'll move to slide four, which provides an overview of the first half of 2025. Karun's main areas of focus during this period have been to ensure safe and reliable operations at our assets, to complete the Bona FPSO transaction, and to progress our organic growth projects at Neon and Houdat, while maintaining strong capital discipline to allow us to continue to provide returns to shareholders. As a result of our efforts over the past year, our safety performance is gradually improving, and the Bowen at FPSO is now operating at significantly higher levels of uptime than it did in 2024, providing an uplift to our production relative to the first half of 24, although I would note the partial failure in August of the electrical submersible pump at SPS 92, which I shall return to later. At Houdat, the assets are performing in line with expectations. Underlying impact for the half was US$45 million, 61% lower than the prior corresponding period, largely due to weaker global oil prices and lower sales volumes as a cargo of Bona oil was loading at the end of June. We ended the half with net debt of US$238 million and our liquidity remained strong at US$452 million. During the half, we acquired the Bauna FPSO. This was a strategic transaction. It is expected to lower Bauna's cost base over time and extend its economic life out to 2039, leading to a significant increase in our remain...