Gulf Keystone Petroleum (GKP) H1 2026 earnings summary

Executive summary

• Demonstrated operational and financial resilience in H1 2026 despite significant regional disruption and two precautionary production shut-ins, prioritizing staff safety and maintaining a robust balance sheet.

• Production and exports restarted after shut-ins, ramping up toward pre-shutdown levels, with a focus on unlocking full PSC entitlement for export sales at international prices.

• Paid $12.5 million dividend in April and announced a $10 million interim dividend for September 2026, bringing total 2026 dividends to $22.5 million.

Financial highlights

• Adjusted EBITDA rose 26% to $52 million in H1 2026, driven by higher realized prices and lower operating costs, offsetting lower production.

• Revenue for H1 2026 was $82.8 million, with a realized price of $83.5/bbl, significantly higher than the prior year.

• Operating costs reduced by 25% to $20 million year-over-year; G&A expenses down 6% to $4.3 million.

• Free cash outflow was $(2.0) million, reflecting cost and CapEx reductions and working capital outflows.

• Net capital expenditure was $18.3 million, focused on safety upgrades and water handling project.

Outlook and guidance

• Production ramp-up expected to reach 44,000–45,000 bpd within weeks of restart, with stable export sales contingent on security.

• Achieving full PSC entitlement for export sales at international prices could significantly bolster H2 2026 cash flow and support production growth in 2027.

• Field development and drilling targeted for H2 2027, pending agreement on the field development plan and PSC entitlement.