Karoon Energy (KAR) H1 2026 earnings summary

Executive summary

• Successfully completed Baúna FPSO operatorship transition and major revitalization, restoring production from key wells and positioning for higher performance and lower costs in H2 2026.

• Produced 3.17 MMboe and sold 3.08 MMboe in H1 2026, with FPSO efficiency at 97%.

• Declared a fully franked interim dividend of AUD 0.012 per share, maintaining a track record of shareholder returns since 2024.

• Over $500 million invested since 2024 in optimization and growth, including Baúna and Who Dat projects.

• Zero recordable injuries and lost time incidents over 1.1 million work hours in H1 2026.

Financial highlights

• Revenue for H1 2026 was $244.9 million, with underlying NPAT of $29.2 million and EBITDAX of $129.7 million.

• Average realized liquids price reached $80.65/BOE; Baúna oil price up 18% to $80.66/bbl, Who Dat up 20% to $80.60/bbl.

• Operating cash flow was $58.4 million; net cash reduced by $125.8 million due to heavy investment.

• Liquidity at period end was $363.6 million, including $80.3 million cash and undrawn $283.3 million RBL.

• Gearing at 21% at period end.

Outlook and guidance

• Full-year 2026 production guidance: 7.2–8.2 MMboe, with unit production costs of $12–15/boe.

• Second half investment expenditures to be materially less, supporting stronger free cash generation and deleveraging.

• Committed to $30–40 million annual cost savings from Baúna FPSO operatorship.

• Guidance revised to reflect Who Dat East sanction, increasing 2H26 investment by $15–20 million.

• Neon project progressing with phased approach and pre-FEED in H2 2026; FEED entry expected in 4Q26.