Pharos Energy Eyes Future Growth and 5.6% Dividend Yield – Shore Capital

Pharos Energy Plc
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Pharos Energy Plc (LON:PHAR) has delivered its full-year 2024 results, underlining a year of solid operational execution and a strong financial foundation. With operations spanning Vietnam and Egypt, the company ended the year in a notably robust position—debt-free and holding $16.5 million in cash, a testament to its disciplined approach to capital management.

Pharos generated revenues of $136 million from net production of 5.8kboe/d in 2024, alongside an EBITDAX of $86 million and free cash flow of $25 million. Shareholders were further rewarded with a 10% year-on-year increase in the dividend, bringing the full-year payout to 1.21p per share, translating to a healthy 5.6% yield—subject to shareholder approval at the upcoming AGM.

James Hosie, Research Analyst at Shore Capital, noted, “Pharos Energy’s FY24 results statement outlines how the business is positioning itself for medium term growth in both Vietnam and Egypt.”

Looking ahead to FY25, Pharos is exploring options to flex its capital budget upward—from the initial $33 million to as much as $66 million. This increase would support accelerated drilling in Vietnam and new development wells in Egypt, provided regulatory timelines align. While not expected to materially shift FY25 production guidance, this strategy is geared towards unlocking higher output in FY26.

The company’s year-end 2P reserves stand at 21.3mmboe, with 42% located in Vietnam. While Vietnam saw reserve upgrades linked to recent licence extensions, Egypt’s El Fayum asset experienced a downward revision.

Pharos is also seeking a two-year extension on Blocks 125 & 126 in Vietnam, giving it additional time to secure a farm-down before drilling the high-impact Prospect A well. Long-lead items have already been ordered, expected to arrive by Q2 2025.

Beyond organic initiatives, Pharos is also on the lookout for acquisition opportunities. With its strong balance sheet and in-country experience, the company is well positioned to scale its footprint within existing geographies.

On a Final Note

Pharos Energy’s 2024 results reflect a business that is not only rewarding its shareholders but also laying the groundwork for future growth. With capital flexibility, a solid asset base, and a clear eye on value-accretive opportunities, the company enters 2025 with both ambition and resilience.

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