Karoon Energy (KAR) H2 2025 earnings summary

Executive summary

• Produced 10.3 million BOE in 2025, with 93% liquids, nearly matching prior year despite well issues and natural decline.

• Achieved total shareholder return of 16% and share price appreciation of 11% in 2025, outperforming the S&P/ASX 200 Energy Index.

• Paid $80 million to shareholders via dividends and buybacks, canceling 11% of shares since 2H 2024.

• Maintained strong safety performance and reduced flaring by 41% year-over-year.

• Baúna FPSO efficiency improved to 95.1%.

Financial highlights

• Sales revenue was $628.6 million, down from $776.5 million in 2024 due to lower oil prices and volumes.

• Underlying NPAT was $107.5 million; operating cash flow reached $231.3 million.

• Closed the year with $206.1 million in cash and $143.9 million net debt, mainly due to FPSO acquisition.

• Pre-tax cash margin remained above 65% per BOE despite oil price decline; gross margin improved to 66%.

• Unit production costs reduced to $13.20/BOE; break-even realized price improved to $31/BOE.

Outlook and guidance

• 2026 split into two halves: first half focused on intensive investment and maintenance, second half expected to benefit from increased uptime and production.

• 2026 guidance: total production of 8.1–9.2 MMboe, unit production costs of $12–15/boe, and capex of $110–135m plus $28m Petrobras payment.

• Who Dat 2026 production expected at lower end of 2.1–2.5 million BOE guidance due to riser repairs.

• CapEx for 2026 front-loaded, with 85% expected in first half.