PetroNor E&P (PNOR) Q2 2025 earnings summary

Executive summary

• Stable production and operational efficiency maintained in H1 2025, with infill drilling on Choboila East and Tchibouela East fields expected to boost H2 output from September.

• Total shareholder return exceeded 50% over the last 12 months, with $55.8M repaid in two tranches and NOK 4.2 per share returned in H1.

• Portfolio includes high-margin Congo production, Nigerian gas redevelopment, and Gambian exploration, with technical work highlighting hydrocarbon potential.

• U.S. Department of Justice closed its investigation; Norwegian Økokrim investigation ongoing with uncertain timeline.

• EBITDA for H1 2025 was $34.6M, down from $62.4M in H1 2024, with net profit at $8.0M versus $31.0M year-over-year.

Financial highlights

• Cash balance at June 30, 2025, was $60.6M, down from $79.7M at year-end 2024.

• Revenue for H1 2025 was $27.6M, reflecting grossed-up tax and royalties paid in oil, with no oil sales or cash input in H1.

• Operating expenses totaled $20.8M, with field operating costs at $11 per barrel.

• Administrative expenses reduced to $5.4M from $7.9M year-over-year due to restructuring and lower legal costs.

• Capital expenditures for H1 were $5.4M, with full-year CapEx expected to reach $18M.

Outlook and guidance

• Production for 2025 expected to average 4,400–4,700 bopd, with an exit rate above 5,000 bopd; operator forecasts year-end gross production to exceed 30,000 bbl/day.

• 2026 production anticipated to be higher than 2025, supported by ongoing infill and workover programs.

• Oil sales lifting planned before year-end 2025, with inventory build-up in H2 to support Q4 sale.

• Additional shareholder distributions likely, with next cycle expected to be announced at May AGM.

• Continued focus on maximizing portfolio value and shareholder returns.