Pharos Energy plc (LON:PHAR), an independent energy company with assets in Vietnam and Egypt, has announced its interim results for the six months ended 30 June 2025. A conference call for analysts will take place at 09.00 BST today.
Katherine Roe, Chief Executive Officer, commented:
“We have continued to make strong strategic and operational progress during the first half of the year. The global stage remains challenging but our focus on operational excellence and financial discipline has delivered stable production averaging 5,642 boepd net, and continued strong cash generation, in line with our guidance.
“In Vietnam, we will begin an important and material six-well drilling campaign in the fourth quarter, with results expected in the first half of 2026. Preparations for drilling the TGT appraisal well 18X to unlock future upside are progressing well and, together with the planned CNV 5X-L1 appraisal and infill drilling campaign, are expected to de-risk additional development opportunities and drive production growth from 2026 onwards. On our exploration blocks 125 & 126, we have engaged with an independent third party adviser to conduct a formal process to identify farm-in partners. This process, together with the ordering of long lead items, provides optionality to pursue the long-term potential of these important exploration assets. The recent approval of a two-year PSC extension in June further supports this optionality.
“In Egypt, we continue to ensure we make economic investment decisions to maximise the value of these self-funding assets. We were pleased to have announced on Tuesday the approval from EGPC of a consolidated Concession Agreement, which brings an immediate uplift in the value of our Egyptian portfolio and a 25% increase from year-end 2024 2P reserves. The improved fiscal terms provide an attractive investment framework for both Pharos and our partner IPR. We will continue our cautious approach to capital allocation whilst we seek to continue the recovery of our outstanding receivables.
“Underpinning our progress is our strong cash flow generation and debt-free balance sheet. This financial strength allows us to announce today an interim dividend of 0.3993 pence per share for the 2025 financial year, an increase of 10% from last year. As we restart investment into our core assets, we will continue to be careful to maintain a strong financial position to support our commitment to shareholder returns.
“Looking ahead, we recognise scale is essential to delivering long-term growth and we have the financial flexibility to pursue both organic and inorganic opportunities. We remain committed to delivering value for shareholders through disciplined execution with strategic focus.”
1H Operational Highlights
· Group working interest production was 5,642 boepd net (1H 2024: 5,851 boepd net), in line with full year guidance:
o Vietnam 4,183 boepd (1H 2024: 4,456 boepd)
o Egypt 1,459 bopd (1H 2024: 1,395 bopd)
· In Vietnam:
o TGT: Rig contracts secured for the drilling of three infill wells and the 18X appraisal well in 4Q, targeting the block’s untapped western area
o CNV: Planning continues for the drilling of one infill well and the 5X-LI appraisal well in 4Q, intended to unlock the northern part of the field
o Rig contracts also incorporate flexibility to drill optional appraisal wells on TGT and CNV
o Blocks 125 & 126: Approval received from the Vietnamese Government for the two-year extension of the PSC Exploration Period (from 9 November 2025 to 8 November 2027); appointment of independent third party adviser to support formal process to identify a potential farm-in partner
· In Egypt:
o El Fayum: East Saad-1X well on production from 1 July following commercial discovery in February
o North Beni Suef (NBS): 3D seismic data processing ongoing
1H Financial and Corporate Highlights
· Group revenue $65.6m1 (1H 2024: $65.0m)
· Net loss $2.2m after adjusting for re-measurements of $0.6m (1H 2024: $2.7m net profit after adjusting for restructuring expenses, re-measurements and impairment reversals totalling $12.6m credit) 2
· Cash generated from operations $31.9m (1H 2024: $44.3m including $10m one off payment from EGPC in USD)
· Operating cash flow $16.1m3 (1H 2024: $27.9m including $10m one off payment from EGPC in USD)3
· Cash operating costs $17.04/bbl4 (1H 2024: $17.09/bbl)4
· Net cash as at 30 June 2025 of $22.6m (31 Dec 2024: $16.5m)
· Egypt receivable balance at 30 June 2025 of $33.5m (31 Dec 2024: $29.5m), having received $5.5m in the six months to 30 June. Post our balance sheet date, we received an additional $5.6m as at 23 September 2025
· Interim dividend in respect of 2024 of 0.363 pence per share was paid on 22 January 2025. The final dividend of 0.847 pence per share, amounting to $4.7m, was paid on 18 July 2025. The full year 2024 dividend was 1.210 pence per share, amounting to $6.5m in total
· Appointment of João Saraiva e Silva as Non-Executive Chair on 26 June 2025
1 No realised hedge gains or losses in the period (1H 2024: realised hedge losses of $0.1m)
2 Refer to page 9 for a reconciliation to (Loss)/Profit after tax
3 Operating cash flow = Net cash from operating activities, as set out in the Cash Flow Statement
4 See Non-IFRS measures on page 30
Outlook
· 2025 production guidance range narrowed to 5,200-6,000 boepd (from 5,000 – 6,200 boepd), reflecting consistent production in Vietnam and lower than expected production in Egypt
· Six-well drilling campaign in Vietnam about to commence and expected to deliver incremental production volumes in 2026 and beyond
· Exploration farm-out of blocks 125 & 126 in Vietnam to continue with encouraging engagement from potential partners
· Improved fiscal terms in Egypt now agreed; preparations for the committed work programme to commence imminently
· Forecast cash capex for the full year expected to be c. $35m, of which $8.2m incurred in the first half. A further $22m relating to the 2025 drilling campaign is expected to fall into 1H 2026
· Strategic focus on maximising value from existing portfolio whilst evaluating opportunities to build scale
