International Petroleum (IPCO) Q4 2025 earnings summary

Executive summary

• 2025 average net production was 44,900 boepd, at the high end of guidance, with Q4 at 45,600 boepd.

• Blackrod Phase 1 achieved first steam ahead of schedule in Q4 2025; first oil expected in Q3 2026.

• No material HSE or safety incidents were recorded; annual sustainability report issued.

• 7.7 million shares were repurchased and cancelled in 2025, reducing outstanding shares by 6.5%.

• Operating costs for 2025 were $17.8/boe, below guidance.

Financial highlights

• 2025 revenue was $685.9 million, with EBITDA of $243.5 million and net profit of $28.9 million.

• Operating cash flow for 2025 was $258.9 million, slightly ahead of guidance.

• Free cash flow for 2025 was negative $153.1 million, mainly due to Blackrod capital expenditure.

• Net debt at year-end was $484 million, reflecting high investment and share buybacks.

• Operating costs per boe were $17.8 for 2025, below guidance.

Outlook and guidance

• 2026 production guidance is 44,000–47,000 boepd, with first oil from Blackrod Phase 1 expected in Q3 2026.

• 2026 capital and decommissioning expenditure budget is $122 million, with $90 million for Blackrod.

• 2026 OCF expected between $100–250 million (Brent $55–75/bbl); FCF forecast ranges from -$70 million to +$85 million.

• Cumulative FCF forecast for 2026–2030 is $1–2 billion (Brent $65–85/bbl).

• Continued strong premiums for Malaysian cargoes and gas price improvement expected as LNG Canada’s second train comes online.