Gulf Keystone Petroleum (GKP) H1 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in H1 2025, with 12% higher gross average production at 44,100 bopd year-over-year, driven by robust local demand and reservoir performance.

• Production was temporarily disrupted in July due to security incidents but returned to near full capacity in August after consultation with the Kurdistan Regional Government.

• Declared $25 million interim dividends in April and September, bringing total 2025 dividends paid and declared to $50 million, supported by a robust cash balance and no outstanding debt.

• Sanctioned installation of water handling facilities at PF-2, expected to unlock 4,000–8,000 bopd incremental production from 2027 and reduce reservoir risk.

• Focused on unlocking export restart and realizing significant potential upside, with increased engagement with government stakeholders.

Financial highlights

• Adjusted EBITDA rose 13% year-over-year to $41.1 million, driven by higher production and realized prices.

• Revenue increased 17% to $83.1 million in H1 2025, with realized prices up 6% to $27.8/bbl year-over-year.

• Free cash flow was $24.6 million in H1 2025, supporting $50 million in dividends.

• Cash balance at end of June was $99 million, improving to $106 million by August 27.

• Reported a net loss after tax of $7.2 million, mainly due to an $8.9 million expected credit loss provision on overdue export receivables.

Outlook and guidance

• 2025 gross average production guidance set at 40,000–42,000 bopd, reflecting recent temporary disruptions.

• Net capital expenditure for 2025 expected at $30–$35 million, up from previous guidance, mainly due to water handling project.

• Operating cost guidance unchanged at $50–$55 million; G&A expenses expected under $10 million.

• Continued engagement with government stakeholders to restart exports through the Iraq-Turkey Pipeline, pending agreements on payment surety, receivables repayment, and contract economics.