Nostrum Oil & Gas (NOG) Q2 2025 earnings summary

Executive summary

• Daily titled production rose 39% year-over-year to 16,974 boepd, driven by increased third-party processing volumes from Ural Oil & Gas LLP.

• Revenue declined 1.8% to $64.1 million due to lower Brent prices and natural field decline, despite higher processed volumes.

• Comprehensive loss increased to $66.7 million from $48.2 million, mainly due to higher depreciation, finance costs, and management incentive plan expenses.

• Approval secured for phased development of Stepnoy Leopard Fields, extending project life to 2044.

• Extended third-party processing agreement with Ural O&G to May 2031, supporting infrastructure utilization.

Financial highlights

• Revenue: $64.1 million (down 1.8% year-over-year).

• EBITDA: $22.4 million, margin 35.0% (vs. $22.3 million, 34.2% margin in H1 2024).

• Gross profit: $24.4 million (down from $30.4 million in H1 2024).

• Net loss: $66.7 million (vs. $48.2 million loss in H1 2024).

• Cash and cash equivalents: $135.9 million at period end.

• Operating cash flow before one-off items: $6.2 million (up from $4.2 million in H1 2024).

Outlook and guidance

• Focus on maximizing gas processing capacity, advancing Stepnoy Leopard development, and cost discipline.

• Ongoing bond restructuring discussions; confident in ability to restructure notes maturing June 2026.

• Sensitivity analysis shows resilience to Brent price, production, and cost fluctuations.