Pharos Energy (PHAR) H1 2025 earnings summary

Executive summary

• Achieved strategic operational and financial milestones, including debt repayment, license extensions in Vietnam, and improved fiscal terms in Egypt, supporting future growth and reinvestment.

• Maintained a disciplined approach to capital allocation, balancing shareholder returns with reinvestment in core assets, and completed share buybacks.

• Strengthened board leadership and alignment with major shareholders, supporting stability and strategic progress.

Financial highlights

• Group revenue for 1H 2025 was $65.6m (1H 2024: $65.0m), with net cash at $22.6m and no debt.

• Cash flow from operations was $16.1m, down from $27.9m in 1H 2024 due to absence of a prior one-off payment.

• Free cash flow for the period was $7.9m, with additional contingent consideration expected in the second half.

• Announced a 10% increase in the interim dividend to 0.3993p/share for 2025, to be paid in January 2026.

• EBITDAX for 1H 2025 was $34.3m; ROCE was 3.0%.

Outlook and guidance

• 2025 production guidance narrowed to 5,200–6,000 boepd, reflecting stable Vietnam output and lower Egypt production.

• Largest capital program in years underway in Vietnam, with a six-well drilling campaign to commence in 4Q 2025, expected to drive 2026 production growth.

• Egypt production underperformed in the first half, but improved fiscal terms and receivables recovery expected to support future reinvestment.

• Forecast full-year cash capex is ~$35m, with $8.2m incurred in 1H and $22m for the drilling campaign expected in 1H 2026.

• Ongoing focus on organic growth and potential inorganic opportunities, especially in Southeast Asia.