Please can you add Kistos PLC, they have recently IPO’d on the LSE and shown steady growth since inception
Has there been any update on this being added? Bought in at IPO on a different broker but hoped to transfer to Freetrade once available. Raised a request a couple of months ago also via the form.
This company aims to create value for its investors by acquiring and managing businesses in the energy sector.
Looks cheap down here. Decent write up by Malcy.
The gas storage they bought from EDF also … wow… up to 11% of the UK’s flexible capacity …
Malcy comments;
Kistos is looking in good shape right now given the deck it has been given by the UK Government and its fiscal policy that is driving away investors and killing off the domestic oil & gas industry. But as this update shows, Kistos is bearing up and with ongoing production sitting at around 8/- b/d and looking likely to be on a decent long term rising trend, particularly with Balder coming on stream later this year.
The company has made the debt, cash and near cash very clear and it’s very positive. As seen above in the RNS Kistos has $144m of cash after receipts of $84m in December for the tax rebate and will receive another of $65m in December 2025 so pro forma net debt of $45m with undrawn cash facilities of a further $20m in place leaving the balance sheet ‘simple and strong’.
With the Balder hybrid debt leaving the picture we know that production from the development will commence later this year and it leaves the company well placed, Balder Future leads to Phase V and there is more exploration behind that for significant potential upside.
Elsewhere the substantial amount of growth opportunities are not limited to Norway, the GLA is a good gas development and with the arrival of Prax, Glendronach should move up the pecking order. I remain very optimistic about the potential for the UK gas storage business and of course Kistos is always assessing acquisition opportunities for ‘value accretive expansion’ and so I remain as confident as ever in the high quality management team to deliver for shareholders who we must remember the Chairman and the Board are significant stakeholders…
Strategic Value of the Gas Storage Business
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The acquisition adds flexibility to Kistos’ portfolio, allowing them to store gas when prices drop and sell when profitable.
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The asset is outside the ring-fence for taxation, meaning it’s taxed at corporation tax rates, offering financial advantages.
“Kistos said Hill Top accounts for 3.1% of the UK’s total available onshore storage capacity and up to 11% of the UK’s flexible daily capacity if called upon.”
Pretty decent set of results. They only lost cash due to impairment and fx movement. £105m market cap, $114m cash
Next up production is increase to near double from Norway (not subject to uk taxes)
“Production: In H1 2024, Kistos reported a production rate of 8.4 thousand barrels of oil equivalent per day (kboepd). They forecast production to reach 15 kboepd in 2025, driven by projects like the Balder Future project in Norway”
Chart looks in a dip too.
Beginning to undip now. It’s really all about the forward guidance. Remember Norway is not subject to ridiculous UK energy taxes
All about what’s coming…
FY25 production guidance reiterated at 8,000 boepd - 9,000 boepd
· Hook-up and final commissioning of the Jotun FPSO, with first oil targeted by the end of Q2 2025
· Production from Balder Future wells expected to start up shortly after, and following a period of ramp-up (expected in the second half of 2025) could increase area production to a peak of 110,000 boepd (gross)
This is a solid set of results, production is in line with guidance which for the time being is maintained for 2025 at 8,000-9,000 boepd and 2P reserves of 24.4m and 2C resources of 57.5m offer plenty of upside. But it is the future that is exciting for shareholders, as Chairman Andrew Austin states and that can be primarily down to the Balder Future project in Norway which is about to deliver first oil.
But it’s not just Balder that is showing growth going forward, there is upside potential from both Glendronach following the change of GLA operator and the Victory gas field which is expected to come on stream in Q4 2025, where production will be processed through the onshore Shetland Gas Plant.
Also the gas storage facilities have benefited from the addition of the Hill Top and Hole House operations in Cheshire, the former achieving a 93.5% operational availability injecting 112m therms and withdrawing 97m during the period after completion. This adds to the portfolio via ‘expanding our midstream market position and diversifying our revenue.
Kistos had cash of $114m at the year end, excluding $29m of restricted funds and adjusted net debt at the same date was $52m, this strong position getting better all the time and these market conditions must be creating opportunities that Kistos excels in, it remains nailed on in the Bucket List.
I don’t know if it’s me reading this wrong, or I’m missing something..
KIST own the 10% of Balder (non operating interest) so circa 8000 Bopd to KIST (as below from Jotun the operating co)..
“ Once Balder X is on stream, the development is expected to take around three to four months to reach peak production of around 80,000 boed, of which a hefty 72,000 boed will be net to Vår thanks to its 90% operated interest in the Balder area”
That’s doubling their current production and first oil from it is due by end of this quarter. 8000 bopd, x say $60 being conservative.. well.. it’s a heck of a lot per month and per year. Hold for glory, Norway so not subject to North Sea uk taxation
