2024 was marked by relative price stability in oil and gas despite substantial geopolitical events during the year. Brent prices ranged from $69/bbl to $91/bbl, with a significant premium on European natural gas prices averaging $11.5/mmbtu compared to the US’s Henry Hub average of $3.0/mmbtu, which continues to pressure industrial activity and discretionary investment on the Continent.
However, it was another difficult year for many sectors in the Energy Transition space, with significant value loss across most sub-sectors as investors in both the private and public arenas focused on the challenging economic and technology risks of many of the alternative energy activities. Against this backdrop, L1 Energy has had a strong year. In particular, it has been a transformative year for Wintershall Dea, with the successful reverse merger of most international assets into Harbour Energy plc, completed on 3 September 2024. This strategic transaction resulted in a substantial cash dividend and portfolio realignment. The remaining organisation is now focused on the value recovery process for the assets either economically expropriated (in Russia) or affected by the conflict in Ukraine (pipelines and upstream assets in the Netherlands and Libya). Significant value remains in those assets and the German organisation is focused and committed as we manage into another phase of the geopolitics.
Harbour Energy plc
At year-end 2024, L1 holds a c15% stake in Harbour Energy plc following its acquisition of Wintershall Dea’s international upstream portfolio. Harbour now operates as the largest London-listed independent E&P, with global diversification and a material resource base. Key 2024 milestones included progressing the Talbot project (UK North Sea), advancing Zama (Mexico) and development planning for Andaman (Indonesia). These assets are expected to contribute to near- and mid-term production growth. The company maintained strong capital discipline, focusing on managing capex and debt reduction and enhanced returns. Harbour also announced a refreshed shareholder return framework, underpinned by free cashflow strength and operational efficiency. The integration of Wintershall Dea assets is proceeding smoothly, creating a platform with global reach and executional depth.
Breakwater Energy
Despite headwinds from low US natural gas prices, Repsol E&P continued to high-grade its portfolio through a series of strategic divestitures, including noncore assets in Eagle Ford, infrastructure in Ecuador and Colombia and its least prospective acreage in West Eagle Ford. The $630mn sale of its Colombian assets closed successfully in Q1 2025. Significant progress was made at a number of Repsol E&P’s major development projects in Brazil, Alaska and the Gulf of Mexico. The company maintained robust performance metrics and received investment-grade ratings (BBB+ from S&P and Fitch), validating its strong financial footing.
Plastic Energy
The company continued to progress plant construction in both France and the Netherlands, with commissioning planned for 2025, and make significant progress with its licensing business, with a number of new deals signed with leading global industry players. Technology development and R&D will underpin the next generation of plants, with material trials underway at the plants in Spain to increase and optimise yields. Cash discipline improved alongside governance changes and existing shareholders demonstrated ongoing commitment to the company via an internal capital raise. The company’s positioning in advanced chemical recycling places it at the forefront of the circular economy, with increasing interest from both regulators and industry.
H2scan
Revenues increased 26% over 2023 and the company continues its growth journey towards EBITDA generation. The company launched five new products, including intrinsically safe and new solutions for data centre and battery storage protection. Cash discipline remains very good and new customers, including Amazon AWS, ConEdison in New York and Chubu Electric Power in Japan, along with orders from Form Energy. The company also significantly reduced supply chain reliance on China, improving resilience. Product innovation and execution discipline remain core strengths, supported by a lean cost base and targeted market expansion in hydrogen safety and grid resilience applications.
Tigo Energy
Tigo Energy faced a challenging 2024, with revenue down 63% due to industrywide oversupply, higher financing costs and regulatory changes in key markets such as California. In response, Tigo focused on innovation and cost control, launching the high-efficiency TS4-X MLPE line (rated up to 800W) and GO ESS storage systems with integrated EV charging. Supply chain optimisation included relocating MLPE production from China to Thailand and reducing tariff risk exposure. The Predict+ platform, a new AI-driven forecasting and analytics tool, gained early traction among installers and utility-scale players. Despite top-line pressure, the company preserved strong cash discipline and is targeting margin recovery through higher-value product mixes.
Dayim
L1’s investment in Dayim, based in KSA, was successfully signed and closed in Q3 2024. Founded in 2006, Dayim provides equipment and logistics support to many industrial and economic sectors in the GCC, with a focus in Saudi Arabia. It has established itself as a market leader, operating across key industries such as oil and gas, infrastructure, logistics and mega projects. Its commitment to technology, logistics, operational excellence and customer satisfaction has solidified its position as a trusted partner with significant growth potential in the region.
