Pharos Energy (PHAR) H1 2026 earnings summary

Executive summary

• Multi-rig drilling campaigns advanced in Vietnam and Egypt, with six wells completed offshore Vietnam and two of six wells completed in Egypt, supporting production and reserves growth.

• Group remains debt-free, with strengthened financial position due to strong commodity prices and full collection of Egyptian receivables.

• Shareholders approved the recommended acquisition by Ratio Petroleum, with completion expected in 1H 2027, pending regulatory and court approvals.

Financial highlights

• Group revenue rose to $85.5m (1H 2025: $65.6m), driven by higher realised prices and increased sales volumes.

• Operating profit increased to $17.4m (1H 2025: $12.2m); EBITDAX reached $45.0m (1H 2025: $34.3m).

• Net loss narrowed to $0.4m (1H 2025: $2.8m loss).

• Cash generated from operations was $50.6m (1H 2025: $31.9m); cash at period end was $45.4m (Dec 2025: $40.2m).

• Cash operating costs per BOE increased to $18.38 (1H 2025: $17.04); realised hedging loss of $3.7m.

• Interim and final dividends for 2025 totaled 1.331 pence per share ($7.4m).

Outlook and guidance

• 2026 production guidance narrowed to 5,300–5,900 boepd, reflecting strong Vietnam output and lower Egypt production.

• Additional appraisal well (TGT-20X) in Vietnam to be drilled in late September 2026.

• Estimated 2026 cash capex is $54m, with $29.2m spent in 1H 2026.

• 58% of 2H 2026 and 20% of 1H 2027 forecast production hedged at average floor/ceiling prices of $60.7/$81.5 and $67.3/$85.1 per bbl, respectively.