Africa Oil Corp. announced solid financial results for the first quarter of 2025, highlighted by the completion of the amalgamation with Prime Oil & Gas Cooperatief U.A., which doubled its reserves and production. In this context, the company declared a second quarterly dividend of $25mn, to be paid in June, confirming its expanded shareholder return policy.
Consolidated results and strengthened financial position
For the period ended March 31, Africa Oil reported net income of $50.9mn, compared to $3.5mn a year earlier. Average daily working interest production stood at 33,400 barrels of oil equivalent per day (boepd), while entitlement production reached 37,700 boepd. Five cargoes were sold for a total volume of approximately 5mn barrels, at an average price of $79.5 per barrel, higher than the average Dated Brent price of $75.7 during the same period.
Cash flow from operations before working capital changes amounted to $99.8mn. The company reduced its Reserves-Based Lending (RBL) facility balance by $130mn to $620mn. Cash on hand at the end of the quarter was $428.4mn, with net debt of $191.6mn, resulting in a net debt/EBITDAX ratio of 0.3x.
Dividends and post-closing initiatives
In April, Africa Oil paid its first quarterly dividend of $25mn. The board of directors approved a second identical distribution, scheduled for payment in June 2025 to shareholders of record as of May 26. The company also repaid an additional $80mn on its RBL facility and initiated the cancellation process of its $65mn undrawn corporate facility.
Dividends to shareholders who are not Canadian residents will be subject to applicable withholding taxes. Shares traded on the Toronto Stock Exchange will be paid in Canadian dollars, while those on Nasdaq Stockholm will be settled in Swedish Krona via Euroclear.
Development outlook and guidance stability
Africa Oil maintains its full-year 2025 guidance, based on an average Brent price of $75 per barrel. Net production is expected between 28,000 and 33,000 boepd, and cash flow from operations between $320mn and $370mn. EBITDAX is estimated between $500mn and $600mn depending on price assumptions.
The company plans an additional exploration campaign in the second half of 2025, notably in Namibia and South Africa, while efforts continue to secure partners in Equatorial Guinea.
