Karoon Energy (KAR) H2 2025 earnings summary

Executive summary

• Produced 10.3 million BOE in 2025, with 93% liquids, maintaining stable output despite well issues and natural decline.

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

• Paid US$80.4 million to shareholders via dividends and buybacks, canceling 11% of shares since 2H 2024.

• Maintained strong safety performance, with zero Lost Time Injuries and a TRIR of 0.16, and reduced flaring by 41% year-over-year.

Financial highlights

• Sales revenue was US$628.6 million, down 19% year-over-year due to lower oil prices and volumes.

• Underlying NPAT was US$107.5 million; underlying EBITDAX was US$388.8 million; operating cash flow reached US$231.3 million.

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

• Pre-tax cash margin remained above 65% per BOE; unit production costs reduced to US$13.20/BOE; break-even realized price improved to US$31/BOE.

• Liquidity at year-end was US$546.1 million, with access to US$350 million high yield bond and US$340 million RBL facility.

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 production guidance is 8.1–9.2 MMboe, with Baúna at 6.0–6.7 MMbbl and Who Dat at 2.1–2.5 MMboe.

• Unit production costs expected at US$12–15/boe; total capex guidance is US$110–135 million plus US$28 million Petrobras payment.

• Key 1H26 activities include full operational control and revitalisation of Baúna FPSO, restoration of Baúna wells, and Who Dat riser repairs.

• Guidance excludes one-off FPSO transition costs, flotel costs, and corporate relocation expenses.