Orca Energy Group Inc. Announces Completion of Q3 2024 Interim Filings

Core Viewpoint - Orca Energy Group Inc. reported a decrease in revenue for Q3 2024 and the nine months ended September 30, 2024, primarily due to changes in gas supply agreements and external factors affecting gas demand [2][3]. Financial Performance - Revenue decreased by 9% for Q3 2024 and by 13% for the nine months ended September 30, 2024, compared to the same periods in the prior year, totaling $24.8 million for Q3 2024 and$74.7 million for the nine months [2][5]. - Net income attributable to shareholders increased by 715% for Q3 2024 but decreased by 43% for the nine months ended September 30, 2024, primarily due to decreased revenue and higher foreign exchange losses [3][5]. - Net cash flows from operating activities decreased by 32% for Q3 2024 and by 46% for the nine months ended September 30, 2024, reflecting the impact of reduced revenue [3][5]. Gas Production and Sales - Daily average gas delivered and sold was 75.9 MMcfd for Q3 2024, an 8% decrease compared to the prior year, and 70.9 MMcfd for the nine months, a 19% decrease [5]. - Gas deliveries to the power sector decreased by 15% for Q3 2024 and by 24% for the nine months, attributed to increased hydropower generation from the Julius Nyerere Hydropower Project [2][5]. Operational Challenges - The termination of the Protected Gas supply after July 31, 2024, led to unrecognized revenues, including $3.6 million from Songas and$1.0 million from TPCPLC [2][3]. - The Interim Power Purchase Agreement between TANESCO and Songas expired on October 31, 2024, raising concerns about the potential indefinite shutdown of the Songas Power Plant, which would adversely affect gas demand [2][3]. Capital Expenditures and Investments - Capital expenditures increased by 219% for Q3 2024 and by 111% for the nine months ended September 30, 2024, primarily due to the SS-7 well workover program [3][5]. - The total expected cost for the SS-7 workover program increased to $23.5 million due to equipment failures and logistical delays [3][5]. Working Capital and Financial Position - As of September 30, 2024, the company had$67.1 million in working capital and $101.7 million in cash and cash equivalents, with a decrease in long-term debt to$25.1 million [3][5][6]. - The current receivable from TANESCO was $8.1 million, with a long-term receivable of$22.0 million, indicating ongoing financial engagements with the Tanzanian electricity supplier [3][5].