Horizon Oil (HZN) H1 2026 earnings summary

Executive summary

• Achieved strong operating and financial performance in HY26, with underlying revenue of US$54.2 million and EBITDAX of US$28.6 million, despite a 15% lower realized oil price, driven by disciplined cost control and successful integration of Thailand assets.

• Net profit after tax declined 64% year-over-year to US$2.4 million, mainly due to higher non-cash amortisation and lower realised oil prices.

• Thailand acquisition and Maari permit extension increased production, cash flow resilience, and portfolio life, diversifying the business across five producing assets in four countries.

• Maintained commitment to shareholder returns with a sixth consecutive year of distributions and a new interim dividend declared.

• Completed the acquisition of two onshore gas fields in Thailand, adding 3.5 MMboe of 2P reserves and boosting production by ~2,000 boe/d at low operating costs.

Financial highlights

• Production and sales volumes rose by 26% and 25% year-over-year, with Thailand contributing five months of results; HY26 production reached 1.07 million boe, with 1.05 million boe sold.

• Underlying revenue for the half year was US$54.2 million, including US$9.6 million from Thailand; EBITDAX was US$28.6 million, in line with the prior half despite lower oil prices.

• Operating cash flow increased 37% to US$25.1 million; ended the period with US$35.6 million cash and net debt of US$9.8 million.

• Calendar year underlying revenue reached US$103.6 million, with EBITDAX of US$54 million and profit of US$8 million, reflecting higher non-cash amortization and lower oil prices.

• Free cash flow for CY25 was US$30 million, with cumulative shareholder distributions exceeding US$165 million over five years.

Outlook and guidance

• Liquids handling upgrade at Block 22/12 to ramp up in Q1 2026; further drilling and workovers under review.

• Maari to focus on optimization and infrastructure integrity following permit extension.

• Mereenie planning additional gas infill wells, supported by long-term sales agreements and NT Power & Water LOI to extend gas offtake through 2034.

• Thailand advancing Nam Phong booster compressor and Sinphuhorm infill well tie-ins, expected to boost production and cash flow from H2 2026.

• Near-term focus on optimising production, maturing infill drilling and facilities optimisation, and evaluating growth opportunities.