Edinburgh-based oil and gas firm Capricorn Energy said its 2024 revenue fell about 26% to $147.8 million and it made profit after tax of $11 million compared to a loss of $144 million in 2023.
Capricorn Energy, formerly called Cairn Energy, said it returned $57 million to shareholders in 2024 via a $50 million special dividend and a $7 million share buyback.
The Edinburgh energy firm reported group net cash of $23 million, comprising $123 million cash and $100 million of debt.
Capricorn Energy has experienced a tumultuous recent few years, with two aborted merger deals and a revolt by shareholders that ousted the company’s former executive leadership.
Capricorn Energy CEO Randy Neely said: “2024 was a pivotal year for Capricorn during which we continued to improve the operational performance of the Egyptian business and continued our culture of financial discipline, which helped the Company achieve the upper end of production guidance.
“A key milestone in unlocking further value in our asset base will be achieved through the amendment to the terms of our concession agreements. In Q3 2024, together with our operating partner Cheiron Oil and Gas Limited, Capricorn proposed an amendment to consolidate the eight existing Egyptian concession agreements where we have an equal working interest into a new, single integrated concession agreement.
“Negotiations have gained real momentum since the Egyptian General Petroleum Corporation (EGPC) formally convened an investment committee in September 2024 to assess the proposal, with the process expected to complete in 2025.
“A new concession agreement would include the commercial terms and additional investment that would support increased production and reserves, through enhanced activity levels, and strengthened returns, to the benefit of all parties.
“We were pleased to report that the Company received $50m in January 2025 related to our disposal of the Sangomar asset to Woodside Energy. Capricorn’s stated desire to return the $50m payment has been impacted by the requirement to retain cash for any future tax obligations in Senegal related to the divestment, along with Waldorf Production UK’s failure to pay Capricorn $22.5m when due in January 2025.
“Growth and diversification of operations and cash flows will be a key focus for 2025. Our goal is to ultimately deliver consistent shareholder returns and we are evaluating M&A opportunities in the UK North Sea and MENA region, through a strict set of financial and strategic criteria, to facilitate this. With a solid foundation being established in Egypt, we are well positioned for positive developments this year.”