Pharos Energy (PHAR) investor relations material

Executive summary

• Achieved strategic, operational, and financial milestones, including license extensions in Vietnam and Egypt, debt repayment, and a strengthened board with a new chairman aligned with major shareholders.

• Maintained stable production averaging 5,642 boepd for 1H 2025, with strong cash generation and a debt-free balance sheet.

• Focused on organic growth through a major six-well drilling campaign in Vietnam and improved fiscal terms in Egypt, supporting reinvestment and production growth.

• Maintained a disciplined approach to capital allocation, balancing shareholder returns with reinvestment in assets, and completed share buybacks.

• Egypt received approval for a consolidated concession agreement, expected to increase 2P reserves by 25% and improve fiscal terms.

Financial highlights

• Group revenue for 1H 2025 was $65.6m, stable year-over-year despite a $12 drop in Brent price, supported by inventory sales.

• Net cash increased to $22.6m at half-year, up from $16.5m in 1H 2024; company remains debt free.

• Cash flow from operations was $16.1m, down from the prior year due to the absence of a one-off payment from EGPC.

• Free cash flow was $7.9m (1H 2024: $21.1m).

• Announced a 10% increase in interim dividend to 0.3993p/share for 2025, with payout scheduled for January 2026; $9.0m share buyback completed in January 2025.

Outlook and guidance

• 2025 production guidance narrowed to 5,200–6,000 boepd, reflecting stable Vietnam output and lower Egypt production.

• Six-well Vietnam drilling campaign to commence in 4Q 2025, expected to boost 2026 production.

• Egypt production was lower than expected in the first half, but improved fiscal terms and receivables recovery are expected to support future reinvestment.

• 2025 capital investment programme of $35m, with $22m additional spend in 1H 2026.

• Actively seeking inorganic growth opportunities, particularly in Southeast Asia.