FINANCIAL REVIEW LOSS FOR THE YEAR AND ADJUSTED EBITDA The Group recorded a loss after tax of US$50.20 million in the financial year ended 31 December 2024 (“FY2024”), from a loss after tax of US$69.36 million in the corresponding financial year ended 31 December 2023 (“FY2023”). Adjusted EBITDA (earnings before interest, taxes, depletion, depreciation, amortisation, impairments) was a positive US$160.43 million in FY2024, as compared to a positive US$109.19 million for FY2023. REVENUE AND COST OF SALES Revenue from sale of crude oil and gas increased to US$298.14 million in FY2024 (FY2023: US$222.39 million) from the sale of crude oil from the Yumna Field (after the Oman government’s share of oil), the Brage Field and the Yme Field. The increase in revenue from sale of crude oil and gas was due to an increase in the volume of oil lifted and sold in Norway, partially offset by 1) a decrease in the volume of oil lifted and sold in Oman (after the Oman government’s share of oil) due to gradual decline in production and production stoppages for the multi-well drilling campaign in the first half of 2024; and 2) a decrease in average crude oil sale prices. Revenue from sale of goods and services of US$0.75 million in FY2024 was from the sale and service maintenance of commercial drones. Production and operating expenses increased to US$95.31 million in FY2024, (FY2023: US$73.05 million), mainly due to increased production activities in the Brage Field and the acquisition of an additional 15 per cent interest in the Yme Field. Depletion of oil and gas properties (“O&G”) increased to US$97.93 million in FY2024 (FY2023: US$75.12 million), mainly due to the increase in volume of production in Norway in FY2024. Exploration and evaluation expenditure (“E&E”) decreased to US$5.43 million in FY2024 (FY2023: US$9.17 million), mainly due to non-recurring write-off of a damaged flowline in Oman in FY2023. ADMINISTRATIVE EXPENSES Administrative expenses increased to US$41.76 million in FY2024 (FY2023: US$28.64 million), mainly due to an increase in payroll-related expenses, as a result of an increase in headcount in Norway and Singapore, an increase in remuneration to key executives of the Group; and inclusion of administrative expenses from newly acquired subsidiary, Xer Technologies Pte. Ltd. (acquisition was completed at the end of 2023). OTHER EXPENSES/ OTHER INCOME Other expenses decreased to US$50.24 million in FY2024 (FY2023: US$53.97 million) mainly due to 1) a decrease in impairment of goodwill to US$7.76 million in FY2024 (FY2023: US$21.86 million) for the Yme Field (goodwill in relation to acquisition of the Yme Field had since been fully impaired in FY2024); and 2) a decrease in impairment loss on E&E assets to US$0.38 million in FY2024 (FY2023: US$19.54 million). In FY2023, the impairment loss on E&E assets of US$19.54 million was due to discontinuation of certain exploration licences in Norway, the non-commerciality of one exploration well in Oman, and the relinquishment of an offshore licence in relation to a production sharing contract in Malaysia. The decrease in other expenses in FY2024 was net against an increase in impairment loss on O&G properties of US$41.42 million in FY2024 (FY2023: S$11.79 million), following annual impairment assessment performed over the Group’s O&G properties. Other income of US$5.66 million recorded in FY2024 was mainly due to gain on acquisition of a 15 per cent interest in the Yme Field of US$2.13 million, gain on disposal of a jointly controlled entity of US$1.10 million, and other income of US$1.33 million from the settlement of an insurance claim on damaged flowline in Oman. Comparatively, other income of US$1.79 million recorded in FY2023 was mainly due to unrealised fair value gain of quoted investments, as a result of better performance in the bond and equity markets in Europe in FY2023. Annual Report 2024 5 4
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