Karoon Energy (KAR) Q3 2025 earnings summary

Executive summary

• Third quarter 2025 production (NRI) was 2.59 MMboe, down 12% sequentially due to Baúna well issues and a Who Dat facility shutdown.

• Sales revenue rose 3% to US$164.1 million, driven by higher Baúna oil prices despite a 3% drop in sales volumes.

• Net debt reduced by US$89 million to US$148.7 million, reflecting strong cashflows.

• No recordable safety or process safety incidents occurred during the quarter.

Financial highlights

• Year-to-date sales revenue was US$472.4 million, down 15% year-over-year.

• Capital expenditure for the quarter was US$4.5 million, a 96% decrease from the previous quarter.

• Cash at quarter-end was US$201.3 million, with total liquidity of US$541.3 million.

• Interim dividend payment of US$11.5 million and US$6.1 million spent on share buybacks during the quarter.

Outlook and guidance

• 2025 production guidance narrowed to 9.8–10.4 MMboe; capex guidance reduced to US$95–111 million.

• Restoration of Baúna SPS-92 and PRA-2 wells targeted for mid-2026, aiming to recover ~5,000 bopd in H2 2026.

• Final Investment Decision for Who Dat East expected in early 2026.

• Guidance excludes US$21.1 million flotel costs, US$5–7 million FPSO transition costs, and US$3–5 million corporate relocation costs.