Sable Offshore Corp. Reports $109.5 Million Net Loss, Plans Production Restart

Sable Offshore Corp. reported a net loss of $109.5 million for the three months ended March 31, 2025, a significant decrease from the $180.1 million loss recorded in the previous period. The company, which has not generated any revenue since the shut-in of its assets in 2015, attributed the loss primarily to increased operational and maintenance expenses, which rose to $34.4 million, up 135.3% from the previous period. General and administrative expenses also saw a notable decline, dropping from $150.4 million to $22.3 million, largely due to the absence of one-time costs associated with the company's recent business combination and settlement expenses.

The company’s total operating expenses for the quarter amounted to $59.8 million, down from $159.1 million in the prior period. This reduction was influenced by the absence of significant one-time expenses related to the merger and the Grey Fox settlement, which had previously inflated costs. The decrease in depreciation, depletion, amortization, and accretion expenses, which fell to $3.0 million from $4.0 million, was attributed to the company not recognizing depreciation on its assets, as they are not currently in service.

Sable Offshore Corp. has made strategic moves to enhance its operational capacity, including a significant increase in its workforce, which has grown by 90% since the business combination. The company is focused on restarting production from its Santa Ynez Unit (SYU) assets, which have been inactive since 2015. As of March 31, 2025, Sable reported total assets of $1.56 billion, with cash and cash equivalents of $189 million, down from $300 million at the end of 2024. The company’s liabilities increased to $1.28 billion, primarily due to a senior secured term loan and accrued expenses.

Looking ahead, Sable Offshore Corp. anticipates that restarting production will require approximately $44.1 million in capital expenditures. The company expects to generate sufficient cash flow to cover operational expenses and debt obligations once production resumes, which is projected for the second quarter of 2025, contingent upon obtaining necessary regulatory approvals. However, the company has expressed concerns regarding its ability to continue as a going concern, given the substantial regulatory hurdles and the need for additional capital if production does not restart as planned.