Gulf Keystone Petroleum (GKP) H2 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in 2025, meeting or exceeding guidance despite regional disruptions, with production, CapEx, and costs in line with targets, positive free cash flow, and zero lost time incidents.

• Successfully completed a dual listing on Euronext Growth Oslo, improving share liquidity and engaging new investors.

• Restarted Kurdistan crude exports in September 2025 after a 2.5-year hiatus, leading to higher realised prices, improved cash flow, and consistent liftings and payments.

• Maintained a robust balance sheet, balanced investment, and shareholder distributions.

• Production and exports were shut in from February 28, 2026, due to regional security deterioration, but assets remain unaffected and staff protected.

Financial highlights

• Adjusted EBITDA rose 46% year-over-year to $111 million, driven by higher realised prices and a 2% production increase.

• Revenue (invoiced) reached $193.1 million, up from $151.2 million in 2024.

• Generated $29 million in free cash flow, with a year-end cash balance of $78 million, increasing to $89 million by March 2026.

• Paid $50 million in dividends in 2025 and declared an interim dividend of $12.5 million for April 2026.

• Profit after tax increased to $15.1 million from $7.2 million in 2024.

Outlook and guidance

• Previous production, CapEx, and OpEx guidance for 2026 suspended due to the shut-in; updates will follow once production restarts.

• Flexibility to reduce expenditures and cost base further if disruptions persist, with a focus on preserving liquidity and rapid restart capability.

• Interim export agreements expected to be extended, with progress toward international pricing.

• Dividend policy remains under review, with potential for supplementary payments upon production and export resumption.