Kolibri Sees Earnings Slip despite Production, Revenue Growth

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Kolibri Sees Earnings Slip despite Production, Revenue Growth

Kolibri Global Energy Inc. has reported a 6 percent decline in net income from $19.3 million for 2023 to $18.1 million for 2024. The company linked the decrease to a reduced unrealized gain in commodity contracts for 2024. Increased revenue was counterbalanced by higher operating costs and elevated income taxes, along with an uptick in […]

Increased revenue was counterbalanced by higher operating costs and elevated income taxes, along with an uptick in general and administrative expenses, primarily due to the company’s NASDAQ listing, and interest expenses, Kolibri said in a media release.

Net revenues for 2024 were $58.5 million, up 16 percent compared to 2023 primarily due to 24 percent higher production. In 2024, Kolibri’s average production reached 3,478 barrels of oil equivalent per day (boepd), up 24 percent compared to the 2,796 boepd produced in 2023 and in line with guidance. This growth is attributed to output from wells drilled and completed during 2024.

The company posted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $44 million, up 13 percent from the $39.1 million reported for 2023.

“We are pleased with the continued production and cash flow growth of the Company in 2024. We were able to meet our forecasted guidance in revenue and adjusted EBITDA even though actual prices were lower than the price used in our forecast”, Wolf Regener, Kolibri’s President and Chief Executive Officer, said.

“The Company increased production by 24 percent, which was in line with our forecast, while only spending $31.3 million on capital expenditures, which was less than we had forecasted and a 41 percent decrease from the prior year. The cost efficiencies that our field operations team has achieved have allowed us to continue to grow production and revenue and drill 50 percent longer laterals while spending 12 percent less per well than we had forecast to spend in our 2023 drilling program”, Regener said.

Regener anticipates continued expansion in 2025, driven by Kolibri’s drilling program. The company is working on the second of four wholly-owned Lovina wells, with completion slated for May, followed by the Forguson well, which targets an unproven area. Regener forecasts 2025 production of 4,500 to 5,100 boepd, a 29 percent to 47 percent increase from 2024. The company also projects revenues of $75 million to $89 million and adjusted EBITDA of $58 million to $71 million, representing substantial year-over-year growth.

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