Orca Energy Group Inc

ORC.A

Equity

ISIN VGG6769T1075 / Valor 1884678

TSX Venture Exchange (2025-11-20)

CAD 61.00%

Orca Energy Group Inc
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About company

Orca Energy Group Inc is a key player in the energy sector, primarily operating the Songo Songo gas field located offshore Tanzania. The company plays a crucial role in the Tanzanian energy landscape by providing reliable and affordable natural gas, which is fundamental for the country's power generation, industrial development, and overall economic growth. Orca Energy is responsible for both upstream activities—such as the extraction of natural gas—and downstream operations, including the processing of gas at the Songas plant and managing the distribution network in Dar es Salaam. This comprehensive involvement ensures a steady supply of natural gas to meet the growing energy demands of Tanzania. Orca Energy is also committed to expanding its production capabilities and distribution reach, with plans to enhance its infrastructure based on future seismic exploration results and contractual agreements. This strategy aims at increasing sales volumes and extending the supply of industrial gas, with an eye towards replacing more carbon-intensive and costly energy sources. Additionally, the company emphasizes safe and efficient operations, stakeholder engagement, and maintaining a transparent approach regarding its environmental impact. Orca Energy's business strategy includes a focus on sustainable growth, shareholder value through regular dividends, and a Normal Course Issuer Bid, reflecting its commitment to long-term stakeholder returns and operational excellence in the Tanzanian energy sector.

Summarized from source with an LLMView SourceSector: Energy

Revenue Growth

Orca Energy's revenue surged by 51% in Q4 2024 compared to the same quarter in the previous year. For the full year ended December 31, 2024, revenue increased by 1% year-over-year. The notable quarterly growth was influenced by volumes previously supplied as Protected Gas, although certain revenues were not recognized due to terminated agreements.

Decrease in Gas Sales

Gas delivered and sold decreased by 3% in Q4 2024 and by 15% for the year ended December 31, 2024, compared to the prior year periods. Factors contributing to this decline include the shutdown of the Songas Power Plant and increased hydro power generation from Tanzania's Julius Nyerere Hydropower Project, which reduced demand for Orca's gas production.

Net Loss and Asset Impairments

For the year ended December 31, 2024, Orca Energy reported a net loss attributable to shareholders of $21.6 million, reversing the net income of $7.0 million reported in the previous year. This loss was primarily driven by an asset impairment expense of $25.9 million related to the SS-7 well workover program and a loss allowance of $21.7 million due to ongoing litigation.

Legal and Litigation Expenses

Orca Energy is involved in significant legal disputes, including a judgment from the Tanzanian High Court requiring the company to pay $23.1 million to a contractor. The company is appealing this decision, but until resolved, it has recognized the liability in its financial statements. Additionally, disputes with the Government of Tanzania and Songas have impacted financial outcomes.

Capital Expenditures Increase

Capital expenditures saw a substantial increase of 635% in Q4 2024 and 244% for the year ended December 31, 2024, compared to the previous year. The rise in capital spending is primarily attributed to the well workover program and ongoing seismic acquisition efforts aimed at enhancing production capabilities.

Working Capital and Cash Flow

Orca Energy's working capital decreased to $21.9 million by the end of 2024 from $67.3 million the previous year. Additionally, net cash flows from operating activities declined by 37% in Q4 2024 and by 44% for the full year, mainly due to changes in non-cash working capital.

Summarized from source with an LLMView Source

Key figures

2,063%1Y

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Performance

1,430%1Y

1,609%3Y

1,609%5Y

Volatility