Horizon Oil (HZN) H2 2025 earnings summary

Executive summary

• FY25 saw strong operational and financial performance, with revenue of US$105.3 million, EBITDAX of US$54.8 million, and statutory profit after tax of US$12.2 million, supported by the completion of the Thailand acquisition, which increased daily production by nearly 50% and 2P reserves by about 40%.

• The Maari permit was extended by 10 years to December 2037, ensuring continued production and deferral of decommissioning.

• Production and sales volumes totaled 1.62 million bbl of oil equivalent, with a 13% rise in production and a 24% increase in sales volumes, supported by the Mereenie asset integration and Thailand acquisition.

• The company maintained a robust balance sheet, with net cash at year-end of US$13.7 million and cash reserves of US$39.8 million, while continuing consistent dividend payments.

• Strategic acquisitions and operational improvements drove a 50% increase in group production and a 40% increase in 2P reserves post year-end.

Financial highlights

• Revenue for FY25 was US$105.3 million, with an average realized oil and gas price of US$65.1 per bbl of oil equivalent, down from US$85 in FY24.

• EBITDAX reached US$54.8 million, and statutory profit after tax was US$12.2 million, down from US$25.9 million the previous year.

• Cash flow from operating activities was US$35.9 million, with free cash flow of US$20 million, impacted by timing of Maari revenue.

• Cash reserves at year-end were US$39.8 million, with net cash of US$13.7 million after returning ~US$32 million to shareholders.

• Final dividend of AUD 0.015 per share, totaling AUD 0.03 per share for the year, marking five consecutive years of such distributions.

Outlook and guidance

• The Thailand acquisition is expected to add 3.9 million bbl of oil equivalent of 2P reserves, raising total 2P reserves to about 12.5 million bbl.

• Production is forecast to average over 6,000 bbl of oil equivalent per day for the next three years, with stable output through 2030 and growth potential from infill drilling and facility upgrades.

• Operational plans include water handling upgrades in China, further infill drilling at Mereenie, and production enhancements at Maari and Thai assets.