Capricorn Energy (CNE) H1 2025 earnings summary

Executive summary

• Achieved government approval for a consolidated production sharing contract (PSC) in Egypt, improving fiscal terms, extending contract life, and strengthening relationships with the Egyptian government; all non-core activities exited and overheads significantly reduced.

• Solid operational performance in H1 2025, with production tracking above the mid-point of guidance at 20,342 boepd (43% liquids) in Egypt.

• Over $600 million returned to shareholders since June 2023 through dividends and buybacks.

• Focus on maximizing value from Egypt, seeking North Sea opportunities, and evaluating synergistic asset deals, with strong technical and financial alignment with JV partner Cheiron.

• Self-funding business model adopted, with minimal spend outside Egypt and disciplined capital allocation.

Financial highlights

• H1 2025 Egypt revenue was $59m, with realised oil price at $73.6/bbl and gas at $3/mscf; group cash position at $96m as of June 30, 2025.

• Average working interest production was 20,342 boepd, with 43% liquids; production in line with projections and guidance of 17,000–21,000 boepd.

• Operating costs averaged $5.1/boe; development and production capex totaled $19m, exploration capex $8m.

• Egypt receivables at $172m as of June 30, 2025, improved to $160m by August 31, 2025, with further receipts of over $90m forecast by year-end.

• Net cash position was $32m at June 30, 2025, after $36m in loan repayments.

Outlook and guidance

• FY25 production guidance set at 17,000–21,000 boepd, with YTD average of 19,994 boepd to August 31, 2025.

• Full-year forecast net capex of $75–85m; operating costs expected to remain within $5–$7/boe.

• Parliamentary ratification of the integrated concession agreement expected in 2025, unlocking further reserves and production.

• 15 development wells planned for H2 2025, all targeting liquids in the BED area.

• Updated CPR to be published post-ratification, including revised CapEx and production profiles.