Zenith Energy (ZEN) H2 2026 earnings summary

Executive summary

• Significant progress in international arbitration against the Republic of Tunisia, with claims totaling approximately US$700 million; major milestones reached in ICSID proceedings and ongoing annulment efforts for an unfavorable ICC-2 award.

• Expansion of renewable energy portfolio in Italy, with solar development projects reaching 173.5 MWp as of March 31, 2026, and subsequent acquisitions increasing capacity to 193.5 MWp.

• Spin-out of uranium exploration assets into Reveille Resources Plc, providing dedicated management and capital access for Italian uranium projects.

• Launch of bond exchange program to consolidate debt maturities and enhance financial flexibility.

• Entry into exclusivity agreements for potential acquisition of a controlling interest in Daybreak Oil and Gas, Inc. in the US.

Financial highlights

• Revenue for the year ended March 31, 2026: CAD$2,327k, up from CAD$2,147k year-over-year.

• Loss after tax: CAD$28.3 million (2025: profit after tax CAD$1.1 million); total comprehensive loss: CAD$29.9 million (2025: loss CAD$3.1 million).

• Extraordinary items impacting loss: CAD$8,041k in legal/arbitration costs, CAD$1,397k non-cash stock option expenses, CAD$1,670k listing costs, CAD$5,557k impairment of Tunisian assets, and CAD$1,232k impairment of Tunisian oil inventory.

• General and administrative costs: CAD$15,794k (2025: CAD$6,478k); production costs: CAD$1,310k (2025: CAD$1,701k).

• Cash balance at year-end: CAD$1,872k (2025: CAD$3,199k); total equity: CAD$51,735k (2025: CAD$65,629k).

Outlook and guidance

• Strategic focus on advancing renewable energy projects to construction and operation, targeting 200 MWp solar capacity by end of 2026.

• Ongoing permitting for uranium projects, with regulatory decisions expected within 6–9 months of submission.

• Continued pursuit of legal claims against Tunisia, with potential material financial impact if successful, but timing and recovery remain uncertain.

• Diversification into US energy assets and biogas projects in Italy, with new acquisitions and project developments underway.