Star Energy reports mixed annual results, eyes geothermal growth

Published 29/04/2025, 07:24
Star Energy reports mixed annual results, eyes geothermal growth

LONDON - Star Energy Group PLC (AIM:STAR) released its full-year financial results for the year ending December 31, 2024, revealing a mix of challenges and strategic advancements under the new leadership of CEO Ross Glover. The company, which operates in the oil and gas sector while expanding into geothermal energy, reported a decrease in revenues to £43.7 million, down from £49.5 million the previous year.

The energy firm’s net debt increased to £7.5 million, compared to £1.6 million in 2023, and it suffered a loss after tax of £12.6 million, more than double the £5.5 million loss reported in the prior year. Despite these setbacks, Star Energy highlighted its strong production performance and cost-reduction efforts, projecting substantial general and administrative savings for 2025.

On the operational front, the company maintained net production averaging 1,989 barrels of oil equivalent per day (boepd) in 2024, slightly down from 2,100 boepd in 2023. Star Energy also began work on the Singleton gas-to-wire project, which is expected to contribute approximately 74 boe/d upon its completion in late 2025.

In terms of financial highlights, Star Energy secured a €25 million financing facility from Kommunalkredit Austria AG, bolstering its investment in both oil and gas operations and geothermal projects. The company increased its stake in its Croatian subsidiary to 71%, post year-end, to better control the development of its geothermal initiatives.

Looking ahead to 2025, the company anticipates net production of around 2,000 boepd with operating costs of approximately $40/boe, assuming an average exchange rate of £1:$1.27. Star Energy’s forecasted capital expenditure for 2025 is around £10.0 million, including significant investment in the Singleton project and other incremental projects aimed at reducing operating costs.

The sale of non-core land for £6.3 million in November 2024, with proceeds received in April 2025, will be used to repay part of the company’s loan facility. Additionally, Star Energy is actively seeking strategic partnerships in the UK to advance its pipeline of projects.

The results presentation will be available later today on the company’s investor relations website. Marie Dransfield, Technical Director of Star Energy Group plc, has reviewed and approved the technical information contained in this announcement, based on her 19 years of oil and gas exploration and production experience.

This news article is based on a press release statement from Star Energy Group PLC.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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