Panoro Energy (PEN) Q4 2025 earnings summary

Executive summary

• Acquired a 40.375% interest in Block G, Equatorial Guinea, for $180 million, boosting 2P reserves by 110% and 2025 production by over 80%, with closing expected in summer 2026; deferred contingent consideration up to $39.5 million based on production and oil price thresholds.

• Acquisition funded by an oversubscribed $50 million equity private placement at no discount and a $150 million bond tap; all approvals secured except for CEMAC anti-competition clearance.

• Q4 2025 revenue was $67.3 million, EBITDA $27.6 million; full-year 2025 revenue $216.8 million, EBITDA $97.5 million, with a net loss of $14.6 million compared to a $60.7 million profit in 2024.

• Strong operational performance across Equatorial Guinea, Gabon, and Tunisia, with record production in 2025 and robust reserve replacement.

• Shareholder distributions since March 2023 total ~30% of market cap, with NOK 411 million distributed in 2025.

Financial highlights

• FY 2025 revenue was $216.8 million, EBITDA $97.5 million, and net cash from operations $73.3 million; capital expenditure was $39.5 million.

• Cash at year-end 2025 was $77 million, including $25 million advances against future oil liftings; gross debt $147.3 million to $150 million.

• Q4 2025 loss before tax was $8.1 million after $16.1 million impairments, mainly from Block S exploration.

• Free cash flow yield implied at 21% for 2025; 50% of FCF to equity distributed.

• Share buybacks and distributions in 2025 totaled NOK 411 million.

Outlook and guidance

• 2026 group production expected to average 15,000–17,000 bopd, rising to 20,000 bopd by 2027; 2026 liftings guidance: 3.1–3.5 million barrels (current), 5.1–5.5 million barrels (pro forma).

• 2026 capital expenditure guidance: $55 million (excluding acquisition), $72 million with full Block G interest.

• Distribution capacity for 2026 is capped at $21–21.6 million due to bond terms; estimated at ~NOK 205 million.

• Hedging program in place for 500,000 barrels at minimum $66/bbl, targeting at least 50% of 2026 sales.