Pharos Energy (PHAR) H2 2025 earnings summary

Executive summary

• Delivered strong full-year 2025 results with robust operational and financial performance in both Vietnam and Egypt, supported by stable production and major investments.

• Secured critical license extensions in Vietnam, enabling the largest six-well drilling campaign since original development, and consolidated Egyptian licenses into a new agreement with improved fiscal terms and a retroactive effective date.

• Achieved a material reduction in Egyptian receivables, including a one-off $20 million payment at year-end, and maintained a debt-free position with increased dividends by 10%.

• Egypt's new concession agreement improved fiscal terms, increased reserves by 25%, and enhanced the future investment framework.

Financial highlights

• Revenue for 2025 was $115 million, with Vietnam contributing $99.8 million and Egypt $14.8 million; year-end cash was $40.2 million, boosted by the Egyptian receivable payment.

• Operating cash flow increased to $55.6 million despite a lower Brent price year-over-year.

• Free cash flow after exceptionals was $30.5 million; $28 million spent on CapEx, mainly in Vietnam.

• Egyptian receivables reduced to $7.4 million at year-end and further to $6.1 million post-year-end, the lowest level since 2021.

• Brent price averaged $69.13/bbl in 2025.

Outlook and guidance

• Six-well drilling program in Vietnam expected to complete on time and budget in H1 2026, underpinning stable production.

• 2026 capital investment program set at $50 million, with 79–80% allocated to Vietnam and the remainder to Egypt.

• Vietnam 2026 production guidance: 4,000–4,950 boepd; Egypt: 1,200–1,450 bopd.

• Dividend remains a priority, supported by balance sheet strength and ongoing focus on receivables recovery in Egypt.