Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF) has reported its unaudited financial and operating results for the three and six month periods ended June 30, 2025.
Q2 Highlights
- Oil production of 21.4 mbbls/d(2) and oil sales of 1.9 million bbls;
- Average realised price of US$67.9/bbl, generating revenue of US$129.3 million;
- Adjusted EBITDAX of US$62.4 million(1) and adjusted after tax cashflow from operations of US$50.5 million(1);
- Cash and net cash balance as of June 30, 2025 of US$242.0 million(1),(3), with no debt;
- Adjusted Working Capital as of June 30, 2025 of US$261.6 million;
- Final investment decision (“FID”) taken on the Wassana field redevelopment, and
- No change to the updated guidance disclosed post the Wassana field redevelopment FID.
Recent Achievements
- Recent production averaged 23,150 bbls/d(2),(5), an increase of approximately 8% over the Q2 average;
- Strategic farm-in agreement with a subsidiary of PTT Exploration and Production Plc (“PTTEP”)(4);
- 40% working interest in blocks G1/65 and G3/65, offshore Gulf of Thailand;
- Earning by payment of US$14.7 million in back costs and carried US$3.7 million seismic acquisition;
- Substantial acreage expansion in Thailand from 2,623 km2 to 22,757 km2;
- Infrastructure-led growth potential, with existing discoveries in tie-back range of infrastructure;
- Immediate activity with four wells already drilled in 2025 and 3D seismic acquisition commencing this quarter; and.
- 2024 Sustainability Report published, highlighting a 20% reduction in greenhouse gas emissions intensity, compared to the previous year.
(1) Non-IFRS financial measure or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section below.
(2) Working interest share production, before royalties.
(3) Includes restricted cash of US$23.2 million.
(4) Subject to government of Thailand approval.
(5) August production ending August 5, 2025.
Dr. Sean Guest, Valeura Energy President and CEO commented:
“We are taking bold steps to evolve our business and to assure value creation through growth in the long-term. During Q2 we took a positive final investment decision on the Wassana field redevelopment project and have now started the construction phase. With a new central processing platform, designed to accommodate future tie-in of satellite developments, we envisage a production start in Q2 2027 and thereafter, a future for the asset spanning at least the next two decades.
More recently, our strategic farm-in with PTTEP will add a new level of depth and diversity to our portfolio. We see opportunities for infrastructure-led gas developments, promising oil opportunities, and an exploration set that entails a nearly ten-fold expansion in gross acreage. All of this within our core Gulf of Thailand jurisdiction, and immediately adjacent to our operated facilities and large gas-producing fields. As a result, the future of our business is taking shape, and our team is excited to pursue these ambitions with vigour.
As we begin to invest into these longer-term opportunities, we are vigilant about maintaining a strong financial position to support our endeavours. We believe our Q2 2025 performance illustrates the strength of our underlying asset base, which serves as the engine to fund growth. Even against the backdrop of lower global oil prices and lower liftings, we generated over US$50 million Adjusted Cashflow from Operations(1), on an after-tax basis. Our business remains fundamentally healthy and capable of supporting our investment plans. Ultimately, we have ended the quarter with Adjusted Net Working Capital(1) of US$261.6 million, and no debt.
At the same time, we continue to prioritise safety and sustainability in everything we do. We have recently published our 2024 Sustainability Report, which demonstrates the positive steps we are taking on the important dimensions of environmental stewardship, social responsibility, and corporate governance. In particular, we are pleased to highlight a 20% reduction in greenhouse gas emissions intensity in Valeura’s first full year of operating these assets. These guiding principles govern our actions both as we look to continue value generation from our existing portfolio, and also as we seek further inorganic growth.”
(1) Non-IFRS financial measure or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section below.
Financial and Operating Results Summary
| Three months endedJun 30, 2025 | Three months endedMar 31, 2025 | Delta (%) | Three months endedJun 30, 2024 | Delta (%) | ||||
| Oil Production(1) | (‘000 bbls) | 1,949 | 2,147 | -9% | 1,917 | 2% | ||
| Average Daily Oil Production(1) | (bbls/d) | 21,412 | 23,853 | -10% | 21,068 | 2% | ||
| Average Realised Price | (US$/bbl) | 67.9 | 78.7 | -14% | 87.7 | -23% | ||
| Oil Volumes Sold | (‘000 bbls) | 1,902 | 1,881 | 1% | 1,870 | 2% | ||
| Oil Revenue | (US$’000) | 129,264 | 148,081 | -13% | 163,960 | -21% | ||
| Net Income | (US$’000) | 5,449 | 14,073 | -61% | 11,309 | -52% | ||
| Adjusted EBITDAX(2) | (US$’000) | 62,380 | 87,216 | -28% | 99,594 | -37% | ||
| Adjusted Pre-Tax Cashflow from Operations(2) | (US$’000) | 51,555 | 74,384 | -31% | 87,117 | -41% | ||
| Adjusted Cashflow from Operations(2) | (US$’000) | 50,534 | 73,954 | -32% | 65,686 | -23% | ||
| Operating Expenses | (US$’000) | 43,796 | 38,852 | 13% | 41,694 | 5% | ||
| Adjusted Opex(2) | (US$’000) | 54,621 | 51,684 | 6% | 54,171 | 1% | ||
| Operating Expenses per bbl | (US$/bbl) | 22.5 | 18.1 | 24% | 21.7 | 4% | ||
| Adjusted Opex per bbl(2) | (US$/bbl) | 28.0 | 24.1 | 16% | 28.3 | -1% | ||
| Adjusted Capex(2) | (US$’000) | 48,935 | 32,899 | 49% | 30,641 | 60% | ||
| Weighted average shares outstanding – basic | (‘000 shares) | 106,258 | 106,532 | 0% | 105,919 | 0% | ||
| As atJun 30, 2025 | As atMar 31, 2025 | Delta (%) | As atJun 30, 2024 | Delta (%) | ||||
| Cash & Cash equivalents(3) | (US$’000) | 241,984 | 238,871 | 1% | 148,819 | 63% | ||
| Adjusted Net Working Capital(2) | (US$’000) | 261,575 | 253,511 | 3% | 144,224 | 81% | ||
| Shareholder’s Equity | (US$’000) | 542,693 | 538,137 | 1% | 317,431 | 71% |
(1) Working interest share production before royalties.
(2) Non-IFRS financial measure or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section below.
(#) Includes restricted cash of US$23.2 million.
Financial Update
The Company’s Q2 2025 financial performance reflects ongoing production operations at all four of its fields in the offshore Gulf of Thailand. Valeura’s working interest share production before royalties totalled 1.95 million bbls during Q2 2025, an increase of 2% from Q2 2024, reflecting the addition of production from the Nong Yao C facility in Q3 2024, offset by natural declines across the portfolio.
Oil sales totalled 1.90 million bbls during Q2 2025, which was less than the volume produced, and therefore contributed to an oil inventory increase to 0.93 million bbls at June 30, 2025. As all of the Company’s oil production is stored in floating offshore vessels before being sold in parcels of approximately 0.2 – 0.3 million bbls, at any given time the Company maintains some quantity of oil held in inventory. A 0.24 million bbls parcel of crude oil was sold just after the end of the Q2 2025 period on July 1, 2025 for US$19.2 million.
Price realisations averaged US$67.9/bbl, which was 23% lower than the same period in 2024, reflecting lower global benchmark oil prices. Oil sales prices reflect a US$0.7/bbl premium to the Brent crude oil price in Q2 2025, which is consistent with the Company’s general expectation of approximate parity to this benchmark.
Operating expenses during Q2 2025 were US$43.8 million, an increase of 5% compared to Q2 2024. Along with operating expenses, the Company includes the price of leases for its floating offshore infrastructure (being US$10.8 million) to derive an Adjusted Opex(1) of US$54.6 million in Q2 2025, which equates to a per-unit rate of US$28.0/bbl. Adjusted Opex and the per bbl unit rate for Q2 2025 were essentially unchanged from Q2 2024, but the increase in unit rate relative to Q1 2025 is largely due to the lower production, as expected, in the second quarter.
Valeura generated Adjusted Pre-Tax Cashflow from Operations(1) of US$51.6 million, which was 41% lower than Q2 2024, primarily reflecting lower benchmark oil prices. On an after-tax basis, Adjusted Cashflow from Operations was US$50.6 million in Q2 2025, 23% lower than Q2 2024. The relatively smaller difference between pre-tax and post-tax Adjusted Cashflow from Operations reflects the more tax-efficient corporate structure, implemented in Q4 2024, which has enabled a more optimised application of tax loss carry-forwards.
Cash tax payments during Q2 2025 were US$15.8 million, relating primarily to tax obligations arising from the 2024 production from the Jasmine field. Taxable income accrued relating to the Nong Yao, Wassana, and Manora fields was fully offset by the application of tax loss carry-forwards. No further cash tax payments are anticipated in 2025. Valeura made cash outlays in respect of its operating costs and capex of US$48.9 million. As a result, Valeura’s cash position at June 30, 2025 was US$242.0 million, inclusive of restricted cash of US$23.2 million. In addition, cash from a June 25, 2025 lifting was not received until early in the following quarter. As a result, the Company has recorded a net crude(2) receivable in the amount of US$19.6 million to reflect the timing of payment happening in Q3 rather than Q2 2025. Valeura’s net working capital surplus increased to US$261.6 million at June 30, 2025, 81% higher than at June 30, 2024.
(1) Non-IFRS financial measure or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section below.
(2) Excludes VAT.
Operations Update
During Q2 2025, Valeura had ongoing production operations at all of its Gulf of Thailand fields, including Jasmine, Manora, Nong Yao, and Wassana. Total working interest share oil production before royalties averaged 21,412 bbls/d. Q2 was anticipated to be the lowest production quarter of 2025, with rates therefore weighted to the second half of 2025. Recently, drilling and facilities operations have increased production. For the first five days of August, Valeura’s working interest share production before royalties averaged 23,150 bbls/d, an increase of approximately 8% over the Q2 average. One drilling rig was under contract throughout the quarter.
Jasmine/Ban Yen
Oil production before royalties from the Jasmine/Ban Yen field, in Licence B5/27 (100% operated interest) averaged 7,880 bbls/d during Q2 2025. The Company conducted its annual maintenance shutdown in late April, affecting production for approximately five days.
During the quarter, Valeura completed a drilling campaign on the block which it had started in February 2025, comprised of eight wells, six of which were development-oriented and are now contributing to production from the asset. Results from the remaining (exploration and appraisal) wells are being incorporated into further development planning for the block and will form the basis of additional drilling campaigns planned for later in 2025 and 2026.
In addition, the Company progressed commissioning of a low-BTU gas generator on the Jasmine B platform which is now online and utilising a waste gas stream for power generation. This is expected to reduce diesel consumption and associated GHG emissions going forward.
Nong Yao
The Company’s Q2 2025 working interest share oil production before royalties from the Nong Yao field, in Licence G11/48 (90% operated working interest), averaged 8,401 bbls/d.
During Q2, the Company mobilised its contracted drilling rig to the Nong Yao field, where it is currently executing a 10-well development drilling campaign, covering all three of the field’s wellhead platforms. The Company anticipates completion of the Nong Yao drilling programme in Q4 2025.
Wassana
During Q2 2025, oil production before royalties from the Wassana field, in Licence G10/48 (100% operated interest) averaged 3,140 bbls/d. Valeura also conducted a workover to optimise performance of a production well.
In May 2025, Valeura took FID on the Wassana redevelopment project, which will entail deployment of a new-build central processing platform facility on the field. Construction activities have commenced and the project is on track. First production is planned for Q2 2027.
Given the new redevelopment project, Valeura is not planning to drill any further wells from the field’s existing development facility, the mobile offshore production unit (“MOPU”) Ingenium. As a result the Company’s focus has shifted to ensuring facility integrity, uptime, and reliability. Recently the Company completed a workover of the field’s produced water injection well which has resulted in an increase in water-handling and hence also oil production.
Manora
Valeura’s working interest share production before royalties from the Manora field, in Licence G1/48 (70% operated working interest) averaged 1,991 bbls/d during Q2 2025. Rates were impacted by planned maintenance shutdown work performed at the end of April 2025.
No wells were drilled on the Manora field, but the Company performed two well workovers to optimise production.
On May 21, 2025, the Company entered into a sale agreement to purchase the Manora floating storage and offloading (“FSO”) system with an anticipated delivery date of January 30, 2026. The exercised option price is set at US$15.5 million. Valeura anticipates that owning, rather than leasing, the FSO system will give rise to operational synergies and cost savings starting in 2026.
Outlook
Year-to-date oil production reflects management’s expectation that rates will be more weighted to the second half of the year 2025. As a result, Valeura’s guidance outlook remains unchanged on this front. In addition, the Company re-iterates its guidance outlook assumptions for all other metrics, including Adjusted Opex, Adjusted Capex and Exploration expense (now combined as a single line item), and Free Cash Flow, as updated in May 2025 following its final investment decision on the Wassana redevelopment project.
| Original 2025Guidance(Pre-Wassana FID) | Updated 2025Guidance (Re-iterated) | |
| Average Daily Oil Production(1) | 23.0 – 25.5 mbbls/d | 23.0 – 25.5 mbbls/d |
| Adjusted Opex | US$215 – 245 million | US$215 – 245 million |
| Adjusted Capex and Exploration expense | US$136 – 161 million | US$175 – 195 million |
| Free Cash Flow | US$112 – 227 million(2) | US$80 – 195 million |
(1) Working interest share production before royalties.
(2) Illustrative Free Cash Flow guidance based on the Company’s Original 2025 Guidance assumptions.
On July 25, 2025, Valeura announced that it had entered into a Farm-in Agreement with a subsidiary of PTTEP to earn a 40% interest in Blocks G1/65 and G3/65, in the Gulf of Thailand (the “Farm-in”). To earn its interest, Valeura will pay 40% of actual back costs related to the two blocks (US$14.7 million to June 30, 2025), and will carry PTTEP on an additional seismic acquisition, capped at US$3.7 million (gross). As the Farm-in Agreement is subject to the approval of the Government of Thailand, these amounts have not been added to the Company’s guidance outlook at this time. Given the increased focus on exploration by way of the Farm-in, Valeura may opt to re-allocate spending between development-oriented and exploration-oriented work within its existing portfolio, and accordingly has combined Adjusted Capex and Exploration expense in its guidance outlook, as set out above.
Webcast
Valeura’s management team will host an investor and analyst webcast today, Thursday, August 7, 2025 at 08:30 Calgary / 15:30 London / 21:30 Bangkok / 22:30 Singapore to discuss this announcement. The live audio and video feed can be accessed via the link below. Written questions may be submitted through the webcast system or by email to [email protected]
Webcast link: https://events.teams.microsoft.com/event/16d71f0c-8db1-49e6-a5a0-6bc77405be08@a196a1a0-4579-4a0c-b3a3-855f4db8f64b
An audio only feed of the event is available by phone using the Conference ID and dial-in numbers below.
Conference ID: 305 706 998#
Dial-in numbers:
Canada: 833-845-9589
Singapore: +65 6450 6302
Thailand: +66 2 026 9035
Turkey: 00800142034779
UK: 0800 640 3933
USA: 833-846-5630
