Kinetiko Energy (KKO) H2 2025 earnings summary

Executive summary

• Achieved a technical milestone with record gas flows from production test wells, notably 1,600 Mscfd at Brakfontein, over three times prior best results.

• Optimised drilling protocols led to improved gas flow and operational efficiency, following expert review of prior underperforming wells.

• Advanced partnerships, including a term sheet with FFS Refiners for a pilot LNG plant and ongoing collaboration with the Industrial Development Corporation of South Africa.

• Zero reportable safety incidents across nearly 30,000 person-hours, with strong local procurement and community engagement.

Financial highlights

• Net loss after tax for FY2025 was $5.54 million, compared to $5.23 million in FY2024.

• Revenue from other income was $211,456, down from $358,224 year-over-year.

• Cash and cash equivalents at year-end were $1.89 million, down from $7.21 million at the prior year-end.

• Capitalised exploration and evaluation assets increased to $69.46 million from $66.45 million.

• Share-based payments for the year totaled $329,288.

Outlook and guidance

• FY2026 focus is on accelerating production test well programs, expanding resource base, and progressing toward pilot-scale gas production.

• Anticipates strong demand fundamentals due to South Africa's tightening gas supply, aiming to convert contingent resources into certified reserves.

• Targeting commissioning of a pilot LNG plant in late 2026.