Sound Energy plc

No formal revenue, EPS, or gross margin figures were reported in this presentation. Management said cash was GBP 2.8 million at 30 June. They also said the company has a 10-year take-or-pay LNG sales contract with Afriquia Gas at around $8 per unit at site, roughly 10 million cubic feet a day / 100 million cubic meters a year, and a Phase 2 take-or-pay contract with ONEE for 300 million cubic meters a year. For Phase 2, Graham Lyon said the project could generate about $90 million a year of revenue when fully on production, with Phase 1 plus Phase 2 totaling about $120 million a year, of which Sound’s share would be 20%. Management said first gas is expected by the end of this year, while the Phase 2 FEED update should be completed by year-end and the bonds are due in December 2027.

Graham Lyon’s tone was strongly optimistic and focused on being “on the cusp” of production and value creation. He emphasized that the Managem deal improved Sound’s financial position, that Phase 1 is close to first gas, and that Phase 2 is progressing with debt financing already in place. He also framed Morocco as attractive for transition energy, citing domestic gas demand, strong local partners, and the opportunity to expand into renewables and hydrogen.

Andrew Matharu said his priorities are moving the company from pre-revenue to operational cash flow, addressing the balance sheet, and evaluating new ventures. He noted the shift from vendor financing to a traditional EPC structure for the micro-LNG plant improved economics and reduced cost, helped by a $25 million debt facility, of which Sound’s share is $5 million. He explained the reported FX loss was driven by USD and euro debt against sterling and was a P&L effect rather than cash impact, and he said the company had GBP 2.8 million cash at 30 June plus carried funding for Phase 2 and the two exploration wells.

Investors asked about timing for share-price recovery, revenue delays, possible stalling by Mana Energy, funding for the solar project, takeover risk, and when drilling would begin. Management repeatedly said there is a lot of near-term news flow coming, that Mana is not stalling first gas, and that the solar JV is 50-50 with Gaia Energy and could attract 80%-90% debt because it is lower risk than drilling. On drilling, John Argent said the exploration permits still need to be perfected before operations can start, but Mana is already looking for a rig and the program could expand into a multi-well schedule across development and exploration.