Indonesia Energy Corporation (INDO) Q4 2025 earnings summary

Executive summary

• Focused on oil and gas exploration and production in Indonesia, with two main assets: Kruh Block (producing) and Citarum Block (exploration).

• Kruh Block contract extended to September 2035, increasing after-tax profit split from 15% to 35% and cost recovery cap from 80% to 100%.

• Citarum Block exploration ongoing, with encouraging geochemical survey results in 2025 confirming hydrocarbon presence.

• Net losses continue, with substantial doubt about ability to continue as a going concern.

Financial highlights

• Revenue for 2025: $2.0M, down 24.6% from $2.7M in 2024, due to lower oil prices and production.

• Net loss for 2025: $5.1M, improved from $6.3M in 2024, mainly due to reduced G&A expenses.

• Average production cost per barrel in 2025: $66.14, up from $61.05 in 2024.

• Cash balance at year-end 2025: $5.5M; working capital: $6.0M.

• Negative cash flow from operations: $5.4M in 2025, up from $3.1M in 2024.

Outlook and guidance

• Oil price volatility expected to continue; 2026 ICP forecast around $96/bbl, supporting improved cash flow.

• Drilling of two new wells at Kruh Block (K-29 and WK-5) scheduled to begin in late May 2026.

• 18-well drilling program at Kruh Block planned through 2030, aiming to increase reserves and production.

• Citarum Block exploration to focus on eight lowest-risk prospects; further seismic and drilling planned.