UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2024


Commission File Number: 001-36298

GeoPark Limited

(Exact name of registrant as specified in its charter)

Calle 94 N° 11-30 Piso 8

Bogota, Colombia

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F

X

 

Form 40-F


GEOPARK LIMITED

TABLE OF CONTENTS

ITEM

1.

Interim Condensed Consolidated Financial Statements and Explanatory Notes for the three-month and six-month periods ended June 30, 2024 and 2023.


Item 1

GEOPARK LIMITED

INTERIM CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

AND EXPLANATORY NOTES

For the three-month and six-month periods ended June 30, 2024 and 2023



Table of Contents

GEOPARK LIMITED

June 30, 2024

CONDENSED CONSOLIDATED STATEMENT OF INCOME

Three-month

Three-month

Six-month

Six-month

period ended

period ended

period ended

period ended

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

Amounts in US$ ´000

Note

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

REVENUE

3

190,204

182,326

357,620

364,777

Production and operating costs

5

(41,410)

(60,689)

(79,950)

(113,185)

Geological and geophysical expenses

6

(2,917)

(2,543)

(5,655)

(5,060)

Administrative expenses

7

(13,109)

(11,341)

(23,072)

(20,702)

Selling expenses

8

(4,386)

(2,223)

(8,526)

(4,576)

Depreciation

  

(34,333)

(29,357)

(62,992)

(56,560)

Write-off of unsuccessful exploration efforts

11

(3,398)

(1,613)

(3,398)

(12,193)

Other (expenses) income

  

(330)

(5,051)

249

(6,407)

OPERATING PROFIT

  

90,321

69,509

174,276

146,094

Financial expenses

9

(10,885)

(11,240)

(22,022)

(22,160)

Financial income

9

2,109

1,720

4,192

2,812

Foreign exchange gain (loss)

9

5,955

(9,582)

6,119

(12,974)

PROFIT BEFORE INCOME TAX

  

87,500

50,407

162,565

113,772

Income tax expense

10

(61,762)

(16,657)

(106,635)

(53,765)

PROFIT FOR THE PERIOD

  

25,738

33,750

55,930

60,007

Earnings per share (in US$). Basic

  

0.49

0.59

1.04

1.04

Earnings per share (in US$). Diluted

  

0.48

0.59

1.03

1.04

The above condensed consolidated statement of income should be read in conjunction with the accompanying notes.

3


Table of Contents

GEOPARK LIMITED

June 30, 2024

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Three-month

Three-month

Six-month

Six-month

period ended

period ended

period ended

period ended

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

Amounts in US$ ´000

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Profit for the period

25,738

33,750

55,930

60,007

Other comprehensive income

  

  

  

  

Items that may be subsequently reclassified to profit or loss:

  

  

  

  

Currency translation differences

(1,078)

731

(1,464)

1,332

Profit (Loss) on cash flow hedges (a)

327

(58)

(3,616)

1,084

Income tax (expense) benefit relating to cash flow hedges

(163)

29

1,808

(542)

Other comprehensive (loss) profit for the period

(914)

702

(3,272)

1,874

Total comprehensive profit for the period

24,824

34,452

52,658

61,881

(a)Unrealized result on commodity risk management contracts designated as cash flow hedges. See Note 4.

The above condensed consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

4


Table of Contents

GEOPARK LIMITED

June 30, 2024

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Note

At June 30, 2024

Year ended

Amounts in US$ ´000

(Unaudited)

December 31, 2023

ASSETS

  

  

  

NON CURRENT ASSETS

  

  

  

Property, plant and equipment

11

721,363

686,824

Right-of-use assets

  

25,335

28,451

Prepayments and other receivables

12

3,009

3,063

Other financial assets

  

11,922

12,564

Deferred income tax asset

  

11,698

15,920

TOTAL NON CURRENT ASSETS

  

773,327

746,822

CURRENT ASSETS

  

  

  

Inventories

  

12,000

13,552

Trade receivables

  

62,070

65,049

Prepayments and other receivables

12

73,702

25,896

Derivative financial instrument assets

18

130

3,775

Cash and cash equivalents

  

66,013

133,036

Assets held for sale

28,419

TOTAL CURRENT ASSETS

  

213,915

269,727

TOTAL ASSETS

  

987,242

1,016,549

EQUITY

  

  

  

Equity attributable to owners of the Company

  

  

  

Share capital

13

51

55

Share premium

  

72,936

111,281

Translation reserve

(11,426)

(9,962)

Other reserves

  

28,292

45,116

Retained earnings

  

83,277

29,530

TOTAL EQUITY

  

173,130

176,020

LIABILITIES

  

  

  

NON CURRENT LIABILITIES

  

  

  

Borrowings

14

490,202

488,453

Lease liabilities

  

19,702

23,387

Provisions and other long-term liabilities

15

32,584

34,083

Deferred income tax liability

  

87,967

64,063

TOTAL NON CURRENT LIABILITIES

  

630,455

609,986

CURRENT LIABILITIES

  

  

  

Borrowings

14

12,528

12,528

Lease liabilities

  

7,594

8,911

Derivative financial instrument liabilities

18

41

70

Current income tax liability

  

50,478

44,269

Trade and other payables

16

113,016

137,817

Liabilities associated with assets held for sale

26,948

TOTAL CURRENT LIABILITIES

  

183,657

230,543

TOTAL LIABILITIES

  

814,112

840,529

TOTAL EQUITY AND LIABILITIES

  

987,242

1,016,549

The above condensed consolidated statement of financial position should be read in conjunction with the accompanying notes.

5


Table of Contents

GEOPARK LIMITED

June 30, 2024

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Attributable to owners of the Company

Retained

earnings

Share

Share

Translation

Other

(Accumulated

Amount in US$ '000

Capital

Premium

Reserve

Reserve

losses)

Total

Equity at January 1, 2023

58

134,798

(11,586)

73,462

(81,147)

115,585

Comprehensive income:

  

  

  

  

  

  

Profit for the six-month period

60,007

60,007

Other comprehensive profit for the period

1,332

542

1,874

Total comprehensive profit for the period ended June 30, 2023

1,332

542

60,007

61,881

Transactions with owners:

  

  

  

  

  

  

Share-based payment

1

6,870

(3,514)

3,357

Repurchase of shares

(2)

(18,652)

(18,654)

Cash distribution

(14,883)

(14,883)

Total transactions with owners for the period ended June 30, 2023

(1)

(11,782)

(14,883)

(3,514)

(30,180)

Balance at June 30, 2023 (Unaudited)

57

123,016

(10,254)

59,121

(24,654)

147,286

Equity at January 1, 2024

55

111,281

(9,962)

45,116

29,530

176,020

Comprehensive income:

  

  

  

  

  

  

Profit for the six-month period

55,930

55,930

Other comprehensive loss for the period

(1,464)

(1,808)

(3,272)

Total comprehensive (loss) profit for the period ended June 30, 2024

(1,464)

(1,808)

55,930

52,658

Transactions with owners:

  

  

  

  

  

  

Share-based payment

5,342

(2,183)

3,159

Repurchase of shares

(4)

(43,687)

(43,691)

Cash distribution

(15,016)

(15,016)

Total transactions with owners for the period ended June 30, 2024

(4)

(38,345)

(15,016)

(2,183)

(55,548)

Balance at June 30, 2024 (Unaudited)

51

72,936

(11,426)

28,292

83,277

173,130

The above condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

6


CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

Six-month

Six-month

period ended

period ended

June 30, 2024

June 30, 2023

Amounts in US$ ’000

(Unaudited)

(Unaudited)

Operating activities

  

  

Profit for the period

55,930

60,007

Adjustments for:

  

  

Income tax expense

106,635

53,765

Depreciation

62,992

56,560

Loss on disposal of property, plant and equipment

34

338

Write-off of unsuccessful exploration efforts

3,398

12,193

Amortization of other long-term liabilities

(58)

(73)

Accrual of borrowing interests

15,499

15,393

Unwinding of long-term liabilities

2,683

3,288

Accrual of share-based payment

3,159

3,357

Foreign exchange (gain) loss

(6,119)

15,883

Income tax paid (a)

(55,641)

(94,219)

Change in working capital (b) (c)

(45,344)

(28,787)

Cash flows from operating activities – net

143,168

97,705

Investing activities

  

  

Purchase of property, plant and equipment

(98,002)

(88,347)

Acquisitions of business (d)

(38,000)

Proceeds from disposal of long-term assets (e)

2,257

Cash flows used in investing activities – net

(133,745)

(88,347)

Financing activities

  

  

Interest paid

(13,750)

(13,750)

Lease payments

(3,640)

(5,093)

Repurchase of shares (f)

(43,691)

(18,654)

Cash distribution

(15,016)

(14,883)

Cash flows used in financing activities - net

(76,097)

(52,380)

Net decrease in cash and cash equivalents

(66,674)

(43,022)

Cash and cash equivalents at January 1

133,036

128,843

Currency translation differences

(349)

601

Cash and cash equivalents at the end of the period

66,013

86,422

Ending Cash and cash equivalents are specified as follows:

  

  

Cash at bank and bank deposits

66,000

86,410

Cash in hand

13

12

Cash and cash equivalents

66,013

86,422

(a)Includes self-withholding taxes of US$ 11,568,000 and US$ 15,306,000 during the six-month periods ended June 30, 2024 and 2023, respectively.
(b)Includes withholding taxes from clients of US$ 11,860,000 and US$ 11,723,000 during the six-month periods ended June 30, 2024 and 2023, respectively.
(c)Includes advanced payment for midstream capacity of US$ 11,096,000 as part of the business transaction in Argentina in 2024. See Notes 12 and 20.
(d)Advanced payment for the acquisition of working interests in four unconventional blocks in Argentina. See Note 20.
(e)Net of cash assigned to the purchaser within the Chilean subsidiaries. See Notes 12 and 20.
(f)Acquisition of 4,369,181 of the Company’s common shares at a purchase price of US$ 10 per share. See Note 13.

The above condensed consolidated statement of cash flow should be read in conjunction with the accompanying notes.

7


EXPLANATORY NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1

General information

GeoPark Limited (the “Company”) is a company incorporated under the laws of Bermuda. The Registered Office address is Clarendon House, 2 Church Street, Hamilton HM11, Bermuda.

The principal activity of the Company and its subsidiaries (the “Group” or “GeoPark”) is the exploration, development and production for oil and gas reserves in Latin America.

These interim condensed consolidated financial statements were authorized for issue by the Board of Directors on August 12, 2024.

Basis of Preparation

The interim condensed consolidated financial statements of GeoPark Limited are presented in accordance with IAS 34 “Interim Financial Reporting”. They do not include all of the information required for full annual financial statements and should be read in conjunction with the annual consolidated financial statements as of and for the year ended December 31, 2023, which have been prepared in accordance with IFRS.

The interim condensed consolidated financial statements have been prepared in accordance with the accounting policies applied in the most recent annual consolidated financial statements. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. The amendments and interpretations detailed in the annual consolidated financial statements as of and for the year ended December 31, 2023, that apply for the first time in 2024, do not have an impact on the interim condensed consolidated financial statements of the Group.

Whenever necessary, certain comparative amounts have been reclassified to conform to changes in presentation in the current period.

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual profit or loss.

The activities of the Group are not subject to significant seasonal changes.

Estimates

The preparation of interim financial information requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. Actual results may differ from these estimates.

In preparing these interim condensed consolidated financial statements, the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the annual consolidated financial statements as of and for the year ended December 31, 2023.

Financial risk management

The Group’s activities expose it to a variety of financial risks: currency risk, price risk, credit risk concentration, funding and liquidity risk, interest risk and capital risk. The interim condensed consolidated financial statements do not include all the financial risk management information and disclosures required in the annual consolidated financial statements and should be read in conjunction with the Group’s annual consolidated financial statements as of and for the year ended December 31, 2023.

8


Note 1 (Continued)

Financial risk management (Continued)

The Group is continually reviewing its exposure to the current market conditions and adjusting its capital expenditures program which remains flexible and quickly adaptable to different oil price scenarios. GeoPark also continues to add new oil hedges, increasing its price risk protection within the upcoming four quarters.

The Group maintained a cash position of US$ 66,013,000 as of June 30, 2024, after the repurchase of own shares in April 2024 (see Note 13), the advance payment for the business transaction in Argentina in May 2024 (see Notes 12 and 20) and the final payments for the 2023 income tax in Colombia in May and June 2024. In addition, GeoPark has access to up to US$ 300,000,000 of committed funding from Vitol, a US$ 80,000,000 senior unsecured credit agreement with Banco BTG Pactual S.A. and Banco Latinoamericano de Comercio Exterior S.A., and US$ 176,900,000 in uncommitted credit lines.

Subsidiary undertakings

The following chart illustrates the main companies of the Group structure as of June 30, 2024:

Graphic

(1)GeoPark Ecuador S.A. holds 50% working interest in the consortiums that operate the Espejo and Perico Blocks.  

Details of the subsidiaries and joint operations of the Group are set out in Note 21 to the annual consolidated financial statements as of and for the year ended December 31, 2023.

During the six-month period ended June 30, 2024, the following change took place:

The Chilean subsidiaries GeoPark Chile S.p.A., GeoPark Fell S.p.A., GeoPark TdF S.p.A. and GeoPark Magallanes Limitada were divested on January 18, 2024. See Note 20.

9


Note 2

Segment information

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Executive Committee. This committee is integrated by the Chief Executive Officer, Chief Financial Officer, Chief Technical Officer, Chief Exploration Officer, Chief Operating Officer, Chief Strategy, Sustainability and Legal Officer and Chief People Officer. This committee reviews the Group’s internal reporting to assess performance and allocate resources. Management has determined the operating segments based on these reports. The committee considers the business from a geographic perspective.

The Executive Committee assesses the performance of the operating segments based on a measure of Adjusted EBITDA. Adjusted EBITDA is defined as profit (loss) for the period (determined as if IFRS 16 Leases has not been adopted), before net finance cost, income tax, depreciation, amortization, certain non-cash items such as impairments and write-offs of unsuccessful exploration efforts, accrual of share-based payment, unrealized result on commodity risk management contracts, geological and geophysical expenses allocated to capitalized projects, and other non-recurring events. Other information provided to the Executive Committee is measured in a manner consistent with that in the consolidated financial statements.

Six-month period ended June 30, 2024:

Amounts in US$ '000

Total

Colombia

Ecuador

Brazil

Chile (a)

Argentina

Corporate

Revenue

357,620

337,615

12,447

2,934

398

4,226

Sale of crude oil

349,404

336,843

12,447

114

Sale of purchased crude oil

4,226

4,226

Sale of gas

4,075

857

2,820

398

Commodity risk management contracts designated as cash flow hedges (a)

(85)

(85)

Production and operating costs

(79,950)

(69,746)

(3,731)

(2,332)

(437)

(3,704)

Royalties in cash

(2,005)

(1,769)

(224)

(12)

Economic rights in cash

(3,778)

(3,778)

Share-based payment

(331)

(329)

(2)

Operating costs

(73,836)

(63,870)

(3,729)

(2,108)

(425)

(3,704)

Depreciation

(62,992)

(59,120)

(3,000)

(862)

(8)

(2)

Adjusted EBITDA

239,399

238,899

6,507

(824)

(120)

(1,080)

(3,983)

Six-month period ended June 30, 2023:

Amounts in US$ '000

Total

Colombia

Ecuador

Brazil

Chile (a)

Argentina

Corporate

Revenue

364,777

340,294

7,073

7,487

7,974

1,949

Sale of crude oil

348,942

339,912

7,073

259

1,698

Sale of purchased crude oil

1,949

1,949

Sale of gas

13,886

382

7,228

6,276

Production and operating costs

(113,185)

(101,210)

(4,158)

(2,136)

(4,045)

(1,636)

Royalties in cash

(10,758)

(9,922)

(586)

(250)

Economic rights in cash

(39,562)

(39,562)

Share-based payment

(259)

(232)

(2)

(25)

Operating costs

(62,606)

(51,494)

(4,156)

(1,550)

(3,770)

(1,636)

Depreciation

(56,560)

(47,331)

(2,506)

(1,175)

(5,535)

(11)

(2)

Adjusted EBITDA

218,836

215,623

1,449

3,978

2,578

(1,193)

(3,599)

(a)Divested on January 18, 2024. See Note 20.

10


Note 2 (Continued)

Segment information (Continued)

Total Assets

Total

Colombia

Ecuador

Brazil

Chile (a)

Argentina

Corporate

June 30, 2024

987,242

850,434

53,650

21,837

55,637

5,684

December 31, 2023

1,016,549

895,900

40,336

27,891

36,192

357

15,873

(a)Divested on January 18, 2024. See Note 20.

A reconciliation of total Adjusted EBITDA to total Profit before income tax is provided as follows:

Three-month

Three-month

Six-month

Six-month

period ended

period ended

period ended

period ended

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

Adjusted EBITDA

127,856

103,913

239,399

218,836

Depreciation (a)

(34,333)

(29,357)

(62,992)

(56,560)

Write-off of unsuccessful exploration efforts

(3,398)

(1,613)

(3,398)

(12,193)

Share-based payment

(1,531)

(1,899)

(3,159)

(3,357)

Lease accounting - IFRS 16

1,783

3,193

3,640

5,093

Others (b)

(56)

(4,728)

786

(5,725)

Operating profit

90,321

69,509

174,276

146,094

Financial expenses

(10,885)

(11,240)

(22,022)

(22,160)

Financial income

2,109

1,720

4,192

2,812

Foreign exchange gain (loss)

5,955

(9,582)

6,119

(12,974)

Profit before tax

87,500

50,407

162,565

113,772

(a)Net of capitalized costs for oil stock included in Inventories.

(b)Includes allocation to capitalized projects.

Note 3

Revenue

Three-month

Three-month

Six-month

Six-month

period ended

period ended

period ended

period ended

Amounts in US$ '000

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

Sale of crude oil

187,217

173,828

349,404

348,942

Sale of purchased crude oil

2,425

1,157

4,226

1,949

Sale of gas

562

7,341

4,075

13,886

Commodity risk management contracts designated as cash flow hedges (a)

(85)

190,204

182,326

357,620

364,777

(a)Realized result on commodity risk management contracts designated as cash flow hedges. See Note 4.

11


Note 4

Commodity risk management contracts

The Group has entered into derivative financial instruments to manage its exposure to oil price risk. These derivatives are zero-premium collars and were placed with major financial institutions and commodity traders. The Group entered into the derivatives under ISDA Master Agreements and Credit Support Annexes, which provide credit lines for collateral posting thus alleviating possible liquidity needs under the instruments and protect the Group from potential non-performance risk by its counterparties.

The Group’s derivatives are designated and qualify as cash flow hedges. The effective portion of changes in the fair values of these derivative contracts are recognized in Other Reserve within Equity. The gain or loss relating to the ineffective portion, if any, is recognized immediately as gains or losses in the results of the periods in which they occur. The amount accumulated in Other Reserves is reclassified to profit or loss as a reclassification adjustment in the same period or periods during which the hedged cash flows affect profit or loss as part of the Revenue line item in the Condensed Consolidated Statement of Income.

The following table summarizes the Group’s production hedged during the six-month period ended June 30, 2024, and for the following periods as a consequence of the derivative contracts in force as of June 30, 2024:

Volume

Average

Period

Reference

Type

bbl/d

price US$/bbl

January 1, 2024 - March 31, 2024

ICE BRENT

Zero Premium Collars

8,500

65.59 Put 92.04 Call

April 1, 2024 - June 30, 2024

ICE BRENT

Zero Premium Collars

9,000

67.50 Put 96.99 Call

July 1, 2024 - September 30, 2024

ICE BRENT

Zero Premium Collars

9,000

67.22 Put 99.36 Call

October 1, 2024 - December 31, 2024

ICE BRENT

Zero Premium Collars

5,500

70.00 Put 98.86 Call

12


Note 5

Production and operating costs

Three-month

Three-month

Six-month

Six-month

period ended

period ended

period ended

period ended

Amounts in US$ '000

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

Staff costs

4,539

3,996

8,035

7,107

Share-based payment

187

234

331

259

Royalties in cash (a)

801

3,578

2,005

10,758

Economic rights in cash (a)

2,311

23,450

3,778

39,562

Well and facilities maintenance

5,756

6,001

11,407

11,374

Operation and maintenance

2,191

2,049

4,561

3,681

Consumables (b)

8,313

8,454

18,259

16,099

Equipment rental

1,658

552

3,086

1,767

Transportation costs

1,161

1,421

2,963

2,963

Field camp

1,689

1,619

3,183

2,824

Safety and insurance costs

915

1,095

1,855

1,822

Personnel transportation

838

918

1,813

1,678

Consultant fees

509

473

1,362

959

Gas plant costs

451

428

994

977

Non-operated blocks costs

5,002

5,097

9,995

9,598

Crude oil stock variation

1,823

(116)

767

(1,275)

Purchased crude oil

2,161

957

3,704

1,636

Other costs

1,105

483

1,852

1,396

41,410

60,689

79,950

113,185

(a)Royalties and economic rights in Colombia are payable to the Colombian National Hydrocarbons Agency (“ANH”) and are determined on a field-by-field basis depending on different variables such as crude quality and price levels, among others. During 2023 and 2024, the mix of royalties and economic rights paid “in-kind” increased as compared to royalties and economic rights paid ‘in-cash”. These changes caused variations in the ‘royalties in cash’ and ‘economic rights in cash’ line items from period to period, which are compensated by variations in the quantities of oil sales impacting the ‘Revenue’ line item in the Condensed Consolidated Statement of Income.

(b)Consumables include energy costs of US$ 5,450,000 and US$ 5,741,000 for the three-month periods ended June 30, 2024 and 2023, respectively, and US$ 12,661,000 and US$ 10,732,000 for the six-month periods ended June 30, 2024 and 2023, respectively. These costs were driven by a drought that affected the energy matrix in Colombia as a result of decreased availability of hydroelectric power.

Note 6

Geological and geophysical expenses

Three-month

Three-month

Six-month

Six-month

period ended

period ended

period ended

period ended

Amounts in US$ '000

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

Staff costs

2,053

1,849

3,803

3,836

Share-based payment

85

166

196

246

Communication and IT costs

756

463

1,183

940

Consultant fees

146

232

740

435

Allocation to capitalized project

(274)

(323)

(537)

(682)

Other services

151

156

270

285

2,917

2,543

5,655

5,060

13


Note 7

Administrative expenses

Three-month

Three-month

Six-month

Six-month

period ended

period ended

period ended

period ended

Amounts in US$ '000

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

Staff costs

7,108

6,861

13,447

12,557

Share-based payment

1,255

1,494

2,624

2,847

Consultant fees (a)

3,488

2,567

5,579

4,522

Safety and insurance costs

813

854

1,632

1,978

Travel expenses

367

611

740

1,102

Non-operated blocks expenses

888

331

1,299

657

Director fees and allowance

312

201

461

401

Communication and IT costs

1,056

879

1,719

1,446

Allocation to joint operations

(2,945)

(3,156)

(6,050)

(6,298)

Other administrative expenses

767

699

1,621

1,490

13,109

11,341

23,072

20,702

(a)The increase in consultant fees in 2024 is mainly due to advisory services related to new business efforts.

Note 8

Selling expenses

Three-month

Three-month

Six-month

Six-month

period ended

period ended

period ended

period ended

Amounts in US$ '000

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

Staff costs

134

133

250

234

Share-based payment

4

5

8

5

Transportation (a)

3,161

1,438

6,406

2,873

Selling taxes and other

1,087

647

1,862

1,464

4,386

2,223

8,526

4,576

(a)The rise in transportation costs is mainly attributed to deliveries at different sales points in the CPO-5 Block in Colombia. Sales at the wellhead incur no selling costs but yield lower revenue, while transportation expenses for sales to alternative delivery points are recognized as selling expenses.

Note 9

Financial results

Three-month

Three-month

Six-month

Six-month

period ended

period ended

period ended

period ended

Amounts in US$ '000

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

Financial expenses

  

  

  

  

Bank charges and other financial costs

(1,857)

(1,797)

(3,840)

(3,479)

Interest and amortization of debt issue costs

(7,752)

(7,699)

(15,499)

(15,393)

Unwinding of long-term liabilities

(1,276)

(1,744)

(2,683)

(3,288)

(10,885)

(11,240)

(22,022)

(22,160)

Financial income

  

  

  

  

Interest received

2,109

1,720

4,192

2,812

2,109

1,720

4,192

2,812

Foreign exchange gains and losses

  

  

  

  

Foreign exchange gain (loss)

5,955

(11,606)

6,119

(15,883)

Result on currency risk management contracts

2,024

2,909

5,955

(9,582)

6,119

(12,974)

Total financial results

(2,821)

(19,102)

(11,711)

(32,322)

14


Note 10

Income tax

The Group calculates income tax expense using the tax rate that would be applicable to the expected total annual earnings. The main components of income tax expense in the Condensed Consolidated Statement of Income are:

Three-month

Three-month

Six-month

Six-month

period ended

period ended

period ended

period ended

Amounts in US$ '000

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

Current income tax expense

 

(34,167)

(44,628)

(80,562)

(74,479)

Deferred income tax expense

(27,595)

27,971

(26,073)

20,714

(61,762)

 

(16,657)

(106,635)

(53,765)

The effective tax rate was 71% and 33% for the three-month periods ended June 30, 2024 and 2023, respectively, and 66% and 47% for the six-month periods ended June 30, 2024 and 2023, respectively.

As of June 30, 2024 and 2023, the statutory income tax rate in Colombia was 35%, though a tax surcharge is also applicable, impacting companies engaged in the extraction of crude oil like GeoPark. The tax surcharge varies from zero to 15%, depending on different Brent oil prices. The Group currently estimates a tax surcharge of 15% for 2024, and therefore, the applicable statutory income tax rate in Colombia for 2024 would be 50%.

The Group’s consolidated effective tax rate of 71% for the three-month period ended June 30, 2024, which is higher than the statutory income tax rate in Colombia as noted above, is mainly driven by the effect of fluctuations of the Colombian peso on deferred income taxes (the Colombian peso devalued by 8%, representing an approximately 15% increase in the effective tax rate for the three-month period ended June 30, 2024).

15


Note 11

Property, plant and equipment

Furniture,

Exploration

equipment

Production

Buildings

and

Oil & gas

and

facilities and

and

Construction 

evaluation

Amounts in US$ '000

properties

vehicles

machinery

improvements

in progress

assets

Total

Cost at January 1, 2023

1,079,257

19,093

222,727

11,027

16,480

113,041

1,461,625

Additions

3,848

(a)

520

12

10

51,367

28,575

84,332

Disposals

(1,209)

(2,150)

(38)

(3,397)

Write-offs

(12,193)

(b)

(12,193)

Transfers

44,085

6,445

5

(45,690)

(4,845)

Currency translation differences

3,698

48

295

9

22

24

4,096

Cost at June 30, 2023

1,130,888

18,452

229,479

8,901

22,141

124,602

1,534,463

Cost at January 1, 2024

920,660

13,133

169,787

4,047

15,781

80,579

1,203,987

Additions

1,062

(a)

413

65,184

32,405

99,064

Disposals

(44)

(7)

(51)

Write-offs

(3,398)

(c)

(3,398)

Transfers

65,657

90

8,582

(58,969)

(15,360)

Currency translation differences

(6,251)

(82)

(533)

(16)

(2)

(43)

(6,927)

Cost at June 30, 2024

981,128

13,510

177,836

4,024

21,994

94,183

1,292,675

Depreciation and write-down at January 1, 2023

(642,280)

(16,799)

(129,073)

(6,594)

(794,746)

Depreciation

(45,643)

(665)

(6,591)

(273)

(53,172)

Disposals

1,182

1,877

3,059

Currency translation differences

(3,299)

(44)

(295)

(9)

(3,647)

Depreciation and write-down at June 30, 2023