2025 Interim Results
Summary by AI BETAClose X
Pharos Energy plc
("Pharos" or the "Company" or, together with its subsidiaries, the "Group")
Interim results for the six months ended 30 June 2025
Pharos Energy plc, an independent energy company with assets in Vietnam and Egypt, announces 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
Enquiries
Pharos Energy plc Tel: 020 7747 2000
Katherine Roe, Chief Executive Officer
Sue Rivett, Chief Financial Officer
Camarco Tel: 020 3757 4980
Billy Clegg | Georgia Edmonds | Violet Wilson | Tamsin Howard
Notes to editors
Pharos Energy plc is an independent energy company focused on delivering sustainable growth and returns to stakeholders, with a portfolio of stable production, development and exploration assets in Vietnam and Egypt. Led by an experienced team, Pharos is a cash generative business with a robust balance sheet and an established platform to deliver both organic growth and inorganic opportunities.
Pharos is listed on the Main Market of the London Stock Exchange. For further information, please visit www.pharos.energy.
Operational Review
Health and Safety
We are pleased to report that in Egypt and Vietnam, we have worked with our partners to maintain our record of zero Lost Time Injury
(LTI) frequency rate through the first half of 2025. Although Pharos had no recordable spills in Vietnam and Egypt during the period, in July 2025, an incident involving a truck occurred in Egypt, causing damage to the truck and spillage of 178 barrels of crude oil. No injuries occurred during this incident. Following a thorough internal investigation, several operating procedures, such as additional training and monitoring systems, have been updated to prevent similar incidents in the future. All oil spilled was cleaned up efficiently and with limited environmental damage.
Safety continues to be the top priority for our business, and we are committed to operating safely and responsibly at all times to provide a safe and healthy working environment for staff and contractors working within our joint ventures or JOCs.
Vietnam
Vietnam Production
Production for the first half of 2025 from the TGT and CNV fields net to the Group's working interest averaged 4,183 boepd (1H 2024: 4,456 boepd), in line with guidance.
TGT 1H 2025 production averaged 11,053 boepd gross and 3,279 boepd net to Pharos (1H 2024: 11,086 boepd gross and 3,289 boepd net). CNV 1H 2025 production averaged 3,617 boepd gross and 904 boepd net to Pharos (1H 2024: 4,667 boepd gross and 1,167 boepd net).
Vietnam Development and Operations
TGT & CNV Fields
Operational activities in the first half focused on securing rig contracts and preparing for appraisal and infill drilling programmes on both TGT and CNV in 2H 2025, with no new wells drilled. Overall production remained stable due to well interventions and production optimisation opportunities.
Following the approval of the TGT and CNV five-year licence extension in December, preparations are underway for the drilling of the 18X appraisal well and three infill wells on the TGT Field in Block 16-1. The success of the appraisal well would open up an undrilled area in the western part of the field. Contracts for two rigs were secured in August, and drilling is expected to commence in 4Q.
On the CNV Field in Block 9-2, planning continues for the drilling of the 5X-LI appraisal well and one infill well, expected to commence in 4Q. The appraisal well is intended to unlock the potential of the northern area of the field.
Additionally, 3D seismic reprocessing on both assets was completed in August and interpretation of this data is now underway.
Vietnam Exploration
Blocks 125 & 126
In 1H 2025, the Company continued to optimise its prospects and leads portfolio with detailed drilling engineering studies for the well on Prospect A.
Additionally, Pharos has engaged an independent third party adviser to support a formal process intended to identify a potential farm-in partner before exploration drilling commences with encouraging engagement. In parallel, discussions continue with rig contractors to retain optionality for the prospect to be drilled.
Most notably, the application for a two-year extension of the Blocks 125 & 126 PSC Exploration Period was granted by the Vietnamese Government in June 2025, extending the Exploration Period to 8 November 2027. This extension reflects the Government's continued support for Pharos and underlines our commitment to the region.
Egypt
Egypt Production
Production for the first half of 2025 from the El Fayum and NBS fields net to the Group's working interest averaged 1,459 bopd (1H 2024: 1,395 bopd), in line with guidance.
El Fayum 1H 2025 production averaged 3,093 bopd gross and 1,392 bopd net to Pharos (1H 2024: 2,867 bopd gross and 1,290 bopd net). NBS 1H 2025 production averaged 150 bopd gross and 67 bopd net to Pharos (1H 2024: 232 bopd gross and 105 bopd net).
Egypt Development and Operations
El Fayum
Following its commercial discovery in February 2025, the East Saad-1X well was put on production from 1 July, contributing to total production.
Planning is underway for the two-well drilling programme which is expected to commence in 4Q.
Egypt Commercial
On 23 September, Pharos announced that it had received approval from the Executive Board of EGPC for the consolidation of the El Fayum and North Beni Suef Concession Agreements into a new consolidated concession agreement. Pharos will retain a 45% working interest in the Consolidated Concession, with IPR continuing as operator with a 55% working interest. In addition to the 12 development leases of the EF and NBS Concessions, the Consolidated Concession will include three new exploration areas.
The Consolidated Concession will unlock significant value in the Western Desert by improving certain fiscal terms, extending the duration of the licenses, and committing the Contractor parties (Pharos Group and IPR) to additional work programmes to deliver production growth. Based on Pharos' Competent Person's Reports as at 31 December 2024, the Consolidated Concession could result in moving approximately 3.1 MMstb from contingent resources to 2P reserves, or a 25% increase from year-end 2024, net to Pharos working interest.
The Consolidated Concession is subject to customary approvals and to Egyptian Parliamentary ratification, which is expected to take place in late 2025 or early 2026, but the new set of terms will start imminently.
The improved terms of the Consolidated Concession reset our investment into the assets in order to unlock further value.
Egypt Exploration
North Beni Suef
The processing of c.130 km2 of 3D seismic data on NBS is ongoing and expected to complete by 4Q. The next steps are data mapping and interpretation.
Financial Review
Finance strategy
There has been solid financial performance from our operations in the first half of 2025 underpinning our strong liquidity position. Net cash has improved to $22.6m from $16.5m as at 31 December 2024. The Group remains debt free following the full and voluntary repayment of the RBL facility in September 2024. The El Fayum concession became profitable during 2024, reversing the previous historical tax losses since first production, and this has led to a gross-up of revenues and tax charge in the Income Statement by $1.1m in 1H 2025.
Returns to shareholders have been delivered through the completion in January 2025 of the third $3m share buyback programme and the payment of an interim dividend for 2024 of 0.363 pence per share in January 2025. A final dividend for 2024 of 0.847 pence per share was paid to shareholders in July 2025 and the Board is pleased to also announce an interim dividend of 0.3993 pence per share in respect of the year ended 31 December 2025. This dividend will be paid on 21 January 2026 to shareholders on the Company's register of members on 19 December 2025.
Key Data
|
|
1H 2025 |
1H 2024 |
|
Production Volumes (boepd) |
5,642 |
5,851 |
|
Sales Volumes (boepd) |
5,198 |
4,607 |
|
Oil Price Realised ($/bbl) |
75.55 |
87.31 |
|
Oil & Gas Price Realised ($/boe) |
68.48 |
77.71 |
|
|
||
|
Oil & Gas Sales ($m) |
65.6 |
65.1 |
|
Total Revenue ($m)1 |
65.6 |
65.0 |
|
Gross Profit ($m) |
16.7 |
32.0 |
|
Operating profit ($m) |
12.2 |
35.2 |
|
Operating profit excluding impairment (reversal)/charge ($m)² |
12.2 |
26.7 |
|
Net cash from operating activities (OCF $m) |
16.1 |
27.9 |
|
Shareholder returns ($m) 2 3 |
2.6 |
3.0 |
|
Cash operating cost per ($/boe)2 |
17.04 |
17.09 |
|
Net cash ($m)2 |
22.6 |
17.5 |
|
EBITDAX ($m)2 |
34.3 |
50.6 |
|
Gearing2 |
- |
0.05 |
1 No realised hedge gains or losses in the period (1H 2024: realised hedge losses of $0.1m)
2 See Non-IFRS measures on page 30
3 For 2025, includes $0.3m in respect of the $3m share buyback programme (the Second Programme Extension), which completed in January 2025. Also, Interim Group dividends of $2.3m in respect of the year ended 31 December 2025, announced in September 2025, will be paid to shareholders in January 2026.
Operating Performance - Income Statement
Revenue
Oil & gas revenues were maintained for the period at $65.6m (1H 2024: $65.1m). This was despite a 12% decrease in Group average price realised. Whilst Group production was down 4% to 5,642 boepd, actual sales volumes increased 13% as additional cargoes were lifted from our oil inventories which supported the revenues in the period.
In Vietnam, revenues increased 1% to $56.2m (1H 2024: $55.8m). Sales volumes were higher by 14%, due to the timing of cargoes and maintenance shutdown at the BSR-owned Dung Quat refinery in 1H 2024 to which TGT crude is sold. The average realised crude oil price, including the premium received over Brent, was $77.25/bbl (1H 2024: $89.07/bbl), a 13% decrease. The average premium to Brent rose marginally to $5.67/bbl (1H 2024: $5.39/bbl).
In Egypt, revenues increased by 1% to $9.4m (1H 2024: $9.3m), inclusive of $1.1m (1H 2024: $nil) gross-up for corporate income taxes to be paid by EGPC on behalf of Pharos El Fayum. The average realised crude oil price, after discounts, was $65.85/bbl (1H 2024: $78.30/bbl), a decrease of 16%. There are two discounts applied to Egypt crude production - a general Western Desert Discount and one related specifically to El Fayum and NBS fields. Both are set by EGPC (the in-country regulator) and together increased to just over $6/bbl (1H 2024: just under $6/bbl).
Hedging
For 2025, the Group entered into zero cost collar hedges to protect the Brent component of forecast oil sales and to provide downside protection to cash flows in the event of commodity prices falling. The commodity hedges run until Dec 2025 and are settled monthly. Our hedging positions for the period resulted in no realised gain or loss (1H 2024: $0.1m realised loss). Additionally, the fair value as at 30 June 2025 was an unrealised gain of $0.1m for the remaining hedges in place (1H 2024: unrealised loss of $0.8m).
For 2H 2025, 26% of the Group's total oil entitlement production has been hedged, securing average floor and ceiling prices for the hedged volumes at $61.3/bbl and $84.5/bbl, respectively.
Group operating costs, DD&A and expenses
Cost of sales, inclusive of cash and non-cash elements, were 48% higher at $48.9m (1H 2024: $33.0m), and these results also capture the impairment reversal of financial asset in relation to EGPC receivables. There was a $16.7m change in inventories period on period as a result of the inventory build in 1H 2024 due to maintenance shutdown at the BSR-owned refinery in Vietnam and this build reduced in 1H 2025 with extra cargoes supporting the 1H 2025 revenue numbers. This effect, combined with a 20% reduction in June 2025 closing Brent price (plus premium) used for inventory valuation year on year (June 2025: $73.77/bbl; June 2024: $92.61/bbl), increased cost of sales in the period. Operating costs in Egypt increased 135% to $4.7m (1H 2024: $2.0m) and this was principally due to a credit of $2.7m in 1H 2024 relating to reversal of expected credit losses on EGPC trade receivables. However, the underlying cash operating costs decreased in 1H 2025 to $17.4m versus $18.2m in 1H 2024, see table below.
DD&A charges on production and development assets decreased to $21.8m (1H 2024: $23.8m), driven by the 4% reduction in Group production volumes. DD&A per bbl is currently $21.35/boe (1H 2024: $22.35/boe).
Administrative expenses of $4.1m (1H 2024: $4.7m) were 13% lower. After adjusting for non-cash share based payment charges of $0.3m (1H 2024: $0.3m), the underlying administrative expenses were $3.8m (1H 2024: $4.4m).
Other operating expenses of $0.2m (1H 2024: $0.6m) were 67% lower. In the prior year, $0.6m related to the posthumous vesting of share scheme awards to the former CEO of the Company, which was formally approved by the Remuneration Committee, settled in cash and paid to his estate with the agreement of the executor.
Cash Operating Costs
Cash operating costs at Group level, defined in the Non-IFRS measures section on page 30 and shown below, amounted to $17.4m (1H 2024: $18.2m), a 4% decrease over the same period last year. On a barrel of oil equivalent basis, this was $17.04/boe (1H 2024: $17.09/boe).
Cash operating costs in Vietnam decreased to $12.6m (1H 2024: $13.6m) in the period which equates to $16.64/bbl (1H 2024: $16.77/bbl). The decrease is primarily driven by lower costs relating to the FPSO as a result of higher production from TLJOC, which shares the facilities and the costs of the FPSO based on production rates (28.1% cost share in 1H 2025 compared to 23.0% in 1H 2024). This was partially offset by 6% lower production in 1H 2025.
Cash operating costs in Egypt were $4.8m (1H 2024: $4.6m) in the period, which equates to $18.18/bbl (1H 2024: $18.12/bbl). The 4% increase in cash operating costs was driven by increased transportation and chemical costs, and higher cost of well workovers.
|
|
|
|
|
|
|
|
|
|
(unaudited) six months ended 30 Jun 25 |
(unaudited) six months ended 30 Jun 24 |
|
Cash operating costs per barrel |
|
|
|
|
$ million |
$ million |
||||
|
Cost of sales 1 |
48.9 |
33.0 |
||||||||
|
(Less)/add: |
|
|
||||||||
|
Depreciation, depletion and amortisation |
(21.8) |
(23.8) |
||||||||
|
Production based taxes |
(3.9) |
(4.9) |
||||||||
|
Change in inventories |
(5.0) |
11.9 |
||||||||
|
Trade receivables expected credit loss |
0.1 |
2.7 |
||||||||
|
Other cost of sales |
|
|
|
|
(0.9) |
(0.7) |
||||
|
Cash operating costs |
|
|
|
|
17.4 |
18.2 |
||||
|
Production (BOEPD) |
|
|
|
|
5,642 |
5,851 |
||||
|
Cash operating cost per BOE ($) |
|
|
|
|
17.04 |
17.09 |
||||
1 Includes impairment reversal of financial asset
Financing costs
Finance costs for the period were significantly lower at $1.2m (1H 2024: $2.6m) due to full voluntary repayment of the Group's RBL facility during September 2024. The unwinding of discount on Vietnam decommissioning provisions for 1H 2025 was $1.2m (1H 2024: $1.0m).
In 1H 2024, there was also interest expense and similar fees of $1.1m and foreign exchange losses of $0.5m, primarily driven by the devaluation of EGP against USD.
Taxation
The overall net tax charge of $13.3m (1H 2024: $18.3m) principally relates to tax charges in Vietnam of $12.2m (1H 2024: Vietnam tax charges of $18.3m).
The Group's effective tax rate approximates the statutory tax rate in Vietnam of 50%, after adjusting for non-deductible expenditure and tax losses not recognised.
The Egypt concessions are subject to corporate income tax at the standard rate of 40.55%, however responsibility for payment of corporate income taxes falls upon EGPC on behalf of PEF and the other contractor parties. The Group records a tax charge, with a corresponding increase in revenue, for the tax paid by EGPC on its behalf. PEF became profitable at the end of 2024, reversing the historic tax loss position since first production, and this led to a 1H 2025 tax charge of $1.1m (1H 2024: $nil).
One of the Group's companies entered into commodity zero cost collars designated as cash flow hedges. In accordance with IAS 12, a deferred tax asset has not been recognised in relation to historic hedging losses as it is unlikely that the UK tax group will generate sufficient taxable profit in the future, against which the deductible temporary differences can be utilised.
Net loss/profit
The post-tax loss for the period of $(2.8)m (1H 2024: $15.3m post-tax profit) included $(0.6)m of restructuring expenses, re-measurements and impairments (1H 2024: $12.6m) which are shown in the table below. Business performance post-tax loss for the period was $(2.2)m (1H 2024: $2.7m post-tax profit).
Restructuring expenses, re-measurements and impairments are comprised of the following:
|
Financial Statements Impact:
|
1H 2025 $m |
1H 2024 $m |
|
|
(Loss)/profit for the period |
(2.8) |
15.3 |
|
|
|
|
|
|
|
Impact of restructuring expense, re-measurements and impairments |
|
|
|
|
Revenue |
- |
0.1 |
Realised hedging losses |
|
Cost of sales |
(0.1) |
(2.7) |
Trade receivables expected credit loss |
|
Impairment reversal - Property, plant and equipment |
- |
(8.5) |
|
|
Other/restructuring expenses |
- |
0.4 |
Egypt redundancy cost following farm down |
|
Loss/(gain) on fair value movement of financial asset |
0.7 |
(1.2) |
Revision of contingent consideration in relation to Egypt farm-out |
|
Finance costs |
- |
(0.7) |
Adjustment and amortisation of capitalised borrowing costs |
|
|
0.6 |
(12.6) |
|
|
|
|
|
|
|
Business performance post-tax (loss)/profit * |
(2.2) |
2.7 |
|
* A non-GAAP measure of underlying net profit from operations, which takes out the impact of unusual, non-recurring transactions and the impact of non-cash re-measurements and impairments.
Balance Sheet
Impairments and Impairment Reversals
We have evaluated each of our oil and gas producing properties for impairment or impairment reversal triggers. The average Brent price forecast as at HY 2025 fell by only 6.8% for 2025 to 2027 and 4.6% in the longer-term and does not indicate a significant change in the underlying value of oil and gas assets. Furthermore, there were no significant changes to the weighted average cost of capital (WACC) and forecast production volumes for both Vietnam and Egypt assets compared to 2024 year end.
As a result, after examining both internal and external indicators of impairment, the Group determined that no impairments or impairment reversal indicators were identified on any of the Group's oil and gas producing properties and no impairment tests were considered necessary as at 30 June 2025.
As at 30 June 2025, the carrying amount of the TGT oil and gas producing property, after additions of $0.9m, increase in decommissioning asset of $0.7m and DD&A of $14.9m, is $140.3m (Jun 2024: $141.2m; Dec 2024: $153.6m). As at 30 June 2025, the carrying amount of the CNV oil and gas producing property, after additions of $0.5m, increase in decommissioning asset of $0.3m and DD&A of $4.2m, is $56.8m (Jun 2024: $59.9m; Dec 2024: $60.2m).
As at 30 June 2025, the carrying amount of the El Fayum oil and gas producing property, after additions of $0.7m, transfer from intangibles of $2.9m and DD&A of $2.6m, is $59.5m (Jun 2024: $62.0m; Dec 2024: $58.5m). As at 30 June 2025, the carrying amount of the NBS oil and gas producing property, after DD&A of $0.1m, is $1.0m (Jun 2024: $1.2m; Dec 2024: $1.1m).
Cash flow
Operating cash flow (before movements in working capital) was $33.5m (1H 2024: $50.9m). After tax charges of $15.9m (1H 2024: $16.2m), other/restructuring costs of $nil (1H 2024: $0.4m), working capital outflow of $1.6m (1H 2024: $6.6m outflow) and interest received of $0.1m (1H 2024: $0.2m), the cash generated from operations was $16.1m (1H 2024: $27.9m). This highlights the continuing strong operating performance from the producing fields in Vietnam and Egypt, despite 13% fall in Group realised oil price.
Cash generated from operations, after tax charges, exceptional expenses and working capital movements, is the basis of our dividend framework.
There was an increase in receivables of $5.0m for the period (1H 2024: decrease of $6.8m). $2.9m increase relates to Egypt trade receivables (2024: $3.4m decrease) following reduced recovery from EGPC during the first half of 2025. Vietnam trade and other receivables increased by $1.6m (2024: decrease of $3.3m), primarily linked to the timing of liftings (3 cargoes in June 2025 compared to 2 cargoes in December 2024). Inventory decreased by $5.0m (1H 2024: increase of $11.9m) and this was driven by Vietnam operations and the timing of liftings from TGT. Vietnam revenue volumes overall were up 14% compared to 1H 2024 and, combined with lower production and a reduced commodity price environment, this led to a reduction in inventory compared to the inventory build in 1H 2024. Trade and other payables were a cash outflow of $1.6m (1H 2024: $1.5m).
Share Buyback and Dividends
In January 2025, the third and final $3.0m tranche of the Company's share buyback programme initiated in July 2022 was completed. Although there is currently no active share buyback programme, the Board will keep the possibility of further buybacks under consideration as part of the Company's commitment to shareholder returns.
Pharos has a clear sustainable policy for regular dividend payments and this has been set at returning no less than 10% of Operating Cash Flow (OCF) each year in two tranches
- An interim dividend payable in January of the following year; and
- A final dividend payable in July of the following year.
An interim dividend of 0.363 pence per share in respect of the year ended 31 December 2024, $1.8m equivalent, was paid on 22 January 2025 to shareholders on the Company's register as at 20 December 2024.
A final dividend of 0.847 pence per share in respect of the year ended 31 December 2024, $4.7m equivalent, was approved by the shareholders at the Company's AGM in May 2025 and subsequently paid on 18 July 2025 to shareholders on the register at the close of business on 13 June 2025. This took the 2024 full year dividend to 1.21 pence per share.
The Board has resolved to pay an interim dividend of 0.3993 pence per share, $2.3m equivalent, in respect of the year ended 31 December 2025 and this will be paid on 21 January 2026 to shareholders on the Company's register as at 19 December 2025.
Liquidity risk management and going concern
The Group continuously monitors its business activities, financial position, cash flows and liquidity. Cash forecasts are regularly produced, and stress tested for several scenarios including a downturn in the oil price and adverse changes in production rates. Given the current rapidly changing global political and economic landscape, and fluctuations in oil price, inflation and interest rates, the scope of our scenario planning remains extensive. Accordingly, stress tests have been run for oil prices down to $45.2/bbl in September 2025, rising gradually over a year until in line with our base oil price curve, concurrent with reductions in Vietnam and Egypt production compared to our base case of 5%. As at 30 June 2025, the Group had a cash balance of $22.6m with improved liquidity and no debt. Forecasts show that the Group will have sufficient financial headroom for the period of 12 months from the date of approval of these half-year results. Based on this analysis, the Directors have a reasonable expectation that the Group has adequate resources to continue its operations in the foreseeable future. Therefore, they continue to adopt the going concern basis of accounting in preparing these half-year results.
Sue Rivett
Chief Financial Officer
Corporate Review
Environmental, Social, and Governance (ESG)
Pharos continues to prioritise sustainability in everything we do. We recognise the importance of environmental stewardship, social responsibility, and corporate governance in the energy industry, and continue to demonstrate our commitment to our Net Zero by 2050 target by managing our emissions across the portfolio.
In 1H 2025, the Group's Scope 1 and 2 emissions remained at the same level compared to the same time last year. The continuation of various emission-reduction projects to upgrade energy efficiency and reduce flaring in Vietnam, and the continuous usage of our diesel replacement gas generators in Egypt, were key drivers behind our stable emission level, which is a reduction compared to our 2021 baseline. Most recently, our field operations in Egypt are now connected to the national electrical grid, which further reduce the consumption of carbon-intensive fuel in our field operations.
We are proud of our social initiatives which have been an important part of Pharos since inception. For 1H 2025, the Company invested in 20 social and community projects, ranging from providing educational support for children with disabilities to supporting low-income communities. Pharos will continue to work closely with our local partners and joint ventures to ensure our social initiatives bring positive, sustainable impacts to host countries and the local communities.
On corporate governance, over the past few years, the Board has undergone leadership changes to maintain a high standard of governance. The Board is refreshed, resilient, and strong. Pharos will continue to have positive and regular engagements with shareholders and are grateful for their continued trust and support.
Principal and emerging risks and uncertainties for the second half of 2025
The Board continues to fulfil its role in risk oversight by developing policies and procedures around risks that are consistent with the organisation's strategy and risk appetite.
Pharos carried out an assessment of its principal and emerging risks at half year 2025. There has been no change in the principal and emerging risk from December 2024. The key principal and emerging risks are:
· HSE & Social
· Political and regional instability, including conflicts and ensuing sanctions
· Risk of rising inflation and stagflation
· Climate change
· Commodity price volatility
· Partners' alignment
· Sub-optimal capital allocation
· Cyber security
· Reserves downgrades
· Insufficient funds to meet commitments
Responsibility Statement
The Directors confirm that, to the best of their knowledge:
1. The interim condensed consolidated set of financial statements immediately following this report has been prepared in accordance with United Kingdom adopted International Accounting Standard IAS 34 'Interim Financial Reporting' and gives a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and
2. The interim report includes a fair review of the information required by:
· DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed consolidated set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and
· DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.
On behalf of the Board:
Katherine Roe Sue Rivett
Chief Executive Officer Chief Financial Officer
23 September 2025 23 September 2025
INDEPENDENT REVIEW REPORT TO PHAROS ENERGY PLC
Conclusion
We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2025 which comprises the interim condensed consolidated income statement, the interim condensed consolidated statement of other comprehensive income, the interim condensed consolidated balance sheet, the interim condensed consolidated statement of changes in equity, the interim condensed consolidated cash flow statement and the related explanatory notes 1-15. We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2025 is not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review Engagements 2410 (UK) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" (ISRE) issued by the Financial Reporting Council. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
As disclosed in note 2, the annual financial statements of the group are prepared in accordance with UK adopted international accounting standards. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with UK adopted International Accounting Standard 34, "Interim Financial Reporting".
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for Conclusion section of this report, nothing has come to our attention to suggest that management have inappropriately adopted the going concern basis of accounting or that management have identified material uncertainties relating to going concern that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with this ISRE, however future events or conditions may cause the entity to cease to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report. Our conclusion, including our Conclusions Relating to Going Concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report.
Use of our report
This report is made solely to the company in accordance with guidance contained in International Standard on Review Engagements 2410 (UK) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Financial Reporting Council. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our work, for this report, or for the conclusions we have formed.
Ernst & Young LLP
London
23 September 2025
|
interim Condensed consolidated income statement |
|
|
|
|
||||||||||||||||
|
|
|
(unaudited) Six months ended |
(unaudited) Six months ended |
Year ended |
|
|||||||||||||||
|
|
|
|
|
|
|
|
30 Jun 2025 |
30 Jun 2024 |
31 Dec 2024 |
|
||||||||||
|
|
|
|
|
|
|
Notes |
$ million |
$ million |
$ million |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Revenue |
|
|
|
|
|
3, 13 |
65.6 |
65.0 |
136.0 |
|
||||||||||
|
Cost of sales |
|
|
|
|
|
4 |
(49.0) |
(35.7) |
(89.8) |
|
||||||||||
|
Impairment reversal - Financial asset |
|
|
|
|
4 |
0.1 |
2.7 |
2.5 |
|
|||||||||||
|
Gross profit |
|
|
|
|
|
16.7 |
32.0 |
48.7 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Administrative expenses |
|
|
|
|
(4.1) |
(4.7) |
(9.1) |
|
||||||||||||
|
Other operating costs |
|
|
|
5 |
(0.2) |
(0.6) |
(0.8) |
|
||||||||||||
|
Pre-licence costs |
|
|
|
3 |
(0.2) |
- |
(0.8) |
|
||||||||||||
|
Impairment charge - Intangible assets |
|
3, 9 |
- |
- |
(2.0) |
|
||||||||||||||
|
Impairment reversal - Property, plant and equipment |
|
3, 10 |
- |
8.5 |
28.3 |
|
||||||||||||||
|
Operating profit |
|
|
|
|
12.2 |
35.2 |
64.3 |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Other/restructuring expense |
|
5 |
- |
(0.4) |
(0.4) |
|
||||||||||||||
|
(Loss)/gain on fair value movement of financial asset |
|
3 |
(0.7) |
1.2 |
0.3 |
|
||||||||||||||
|
Investment revenue |
|
|
0.2 |
0.2 |
0.4 |
|
||||||||||||||
|
Finance costs |
|
|
|
|
6 |
(1.2) |
(2.6) |
(3.9) |
|
|||||||||||
|
Profit for the period before tax |
3 |
10.5 |
33.6 |
60.7 |
|
|||||||||||||||
|
Income tax charge |
|
|
|
|
|
7 |
(13.3) |
(18.3) |
(37.1) |
|
||||||||||
|
(Loss)/profit for the period |
|
(2.8) |
15.3 |
23.6 |
|
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
|
(Loss)/profit per share (cents) |
8 |
|
|
|
|
|||||||||||||||
|
Basic |
|
|
|
|
|
(0.7) |
3.7 |
5.7 |
|
|||||||||||
|
Diluted |
|
|
|
|
|
(0.7) |
3.6 |
5.4 |
|
|||||||||||
|
interim Condensed consolidated statement of OTHER comprehensive income
|
|
|
|
|
|
|
||||||||||||||
|
|
|
(unaudited) Six months ended |
(unaudited) Six months ended |
Year ended |
|
|||||||||||||||
|
|
|
|
|
|
|
|
30 Jun 2025 |
30 Jun 2024 |
31 Dec 2024 |
|
||||||||||
|
|
|
|
|
|
|
Notes |
$ million |
$ million |
$ million |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
(Loss)/profit for the period |
|
|
|
|
(2.8) |
15.3 |
23.6 |
|
||||||||||||
|
Items that may be subsequently reclassified to profit or loss: |
|
|
|
|
||||||||||||||||
|
Fair value loss arising on hedging instruments 13 during the period |
- |
(0.9) |
(0.1) |
|
||||||||||||||||
|
Less: Loss arising on hedging instruments reclassified to profit or loss |
0.1 |
0.1 |
0.1 |
|
||||||||||||||||
|
Net currency exchange translation differences |
0.1 |
- |
- |
|
||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
|
Total comprehensive (loss)/income for the period |
|
(2.6) |
14.5 |
23.6
|
|
|||||||||||||||
The above interim condensed consolidated income statement and interim condensed consolidated statement of other comprehensive income should be read in conjunction with the accompanying notes.
|
interim CONDENSED CONSOLIDATED Balance sheets |
|
||||||||
|
|
|
|
|
|
|
(unaudited) |
(unaudited) |
|
|
|
|
|
|
|
|
|
30 Jun 25 |
30 Jun 24 Restated 1 |
31 Dec 24 Restated 1 |
|
|
|
|
|
|
|
Notes |
$ million |
$ million |
$ million |
|
|
Non-current assets |
|
|
|
|
|
|
|
||
|
Intangible assets |
|
|
|
9 |
23.7 |
20.1 |
21.8 |
||
|
Property, plant and equipment |
|
|
10 |
257.7 |
264.3 |
273.5 |
|||
|
Right of use asset |
|
|
10 |
0.1 |
0.4 |
0.2 |
|||
|
Other assets |
|
|
|
|
57.8 |
57.3 |
57.8 |
||
|
|
|
|
|
|
|
339.3 |
342.1 |
353.3 |
|
|
Current assets |
|
|
|
|
|
|
|
||
|
Inventories |
|
|
|
|
|
4.3 |
15.2 |
9.3 |
|
|
Trade and other receivables |
|
|
|
52.9 |
52.4 |
47.8 |
|||
|
Derivative financial instruments |
|
|
13 |
0.2 |
- |
0.1 |
|||
|
Tax receivables |
|
|
|
|
0.4 |
0.3 |
0.3 |
||
|
Cash and cash equivalents |
|
|
|
22.6 |
30.7 |
16.5 |
|||
|
|
|
|
|
|
|
80.4 |
98.6 |
74.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
|
419.7 |
440.7 |
427.3 |
||
|
Current liabilities |
|
|
|
|
|
|
|
||
|
Trade and other payables |
|
|
|
(12.3) |
(14.6) |
(14.3) |
|||
|
Derivative financial instruments |
|
|
13 |
- |
(0.7) |
- |
|||
|
Borrowings |
|
|
14 |
- |
(13.8) |
- |
|||
|
Lease Liabilities |
|
|
|
(0.2) |
(0.3) |
(0.2) |
|||
|
Tax payables |
|
(2.8) |
(5.3) |
(3.2) |
|||||
|
|
|
|
|
|
|
(15.3) |
(34.7) |
(17.7) |
|
|
Net current assets |
|
|
|
65.1 |
63.9 |
56.3 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
||
|
Other payables |
|
- |
(0.2) |
(0.2) |
|||||
|
Deferred tax liabilities |
|
|
|
|
(59.4) |
(64.3) |
(62.6) |
||
|
Lease Liabilities |
|
|
|
|
- |
(0.1) |
- |
||
|
Long term provisions |
|
|
|
|
(53.2) |
(52.9) |
(51.1) |
||
|
|
|
|
|
|
|
(112.6) |
(117.5) |
(113.9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
|
(127.9) |
(152.2) |
(131.6) |
||
|
Net assets |
|
|
|
|
291.8 |
288.5 |
295.7 |
||
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
Share capital |
|
|
|
|
33.0 |
33.4 |
33.1 |
||
|
Share premium |
|
|
|
|
58.0 |
58.0 |
58.0 |
||
|
Other reserves |
|
|
|
|
259.1 |
255.9 |
258.1 |
||
|
Retained deficit |
|
|
|
(58.3) |
(58.8) |
(53.5) |
|||
|
Total equity |
|
|
|
|
291.8 |
288.5 |
295.7 |
||
1 See Note 2
The above interim condensed consolidated balance sheets should be read in conjunction with the accompanying notes.
interim CONDENSED consolidated STATEMENTs OF CHANGES IN EQUITY
|
|
|
|
|
|
Called up share capital |
Share Premium |
Other reserves |
Retained (deficit)/ earnings |
Total |
||||||
|
|
|
|
|
|
$ million |
$ million |
$ million |
$ million |
$ million |
||||||
|
|
|
||||||||||||||
|
As at 1 January 2024, Restated 3 |
|
|
|
33.7 |
58.0 |
255.41 |
(67.0) |
280.1 |
|||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Profit for the period |
|
- |
- |
- |
15.3 |
15.3 |
|||||||||
|
Other comprehensive loss |
|
- |
- |
(0.8) |
- |
(0.8) |
|||||||||
|
Share buy back 2 |
|
(0.3) |
- |
0.3 |
(1.1) |
(1.1) |
|||||||||
|
Distributions to shareholders |
|
- |
- |
- |
(5.8) |
(5.8) |
|||||||||
|
Share-based payments |
|
- |
- |
0.8 |
- |
0.8 |
|||||||||
|
Transfer relating to share-based payments |
|
|
|
- |
- |
0.2 |
(0.2) |
- |
|||||||
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
||||||||||||||
|
As at 30 June 2024 (unaudited), Restated 3 |
|
|
33.4 |
58.0 |
255.91 |
(58.8) |
288.5 |
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Profit for the period |
|
|
- |
- |
- |
8.3 |
8.3 |
||||||||
|
Other comprehensive income |
|
|
- |
- |
0.8 |
- |
0.8 |
||||||||
|
Share buy back 2 |
|
|
(0.3) |
- |
0.3 |
(1.8) |
(1.8) |
||||||||
|
Shares purchased |
|
|
- |
- |
(0.9) |
- |
(0.9) |
||||||||
|
Distributions to shareholders |
|
|
- |
- |
- |
(0.1) |
(0.1) |
||||||||
|
Share-based payments |
|
|
- |
- |
0.9 |
- |
0.9 |
||||||||
|
Transfer relating to share-based payments |
|
|
- |
- |
1.1 |
(1.1) |
- |
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
||||||||||||||
|
As at 1 January 2025, Restated 3 |
|
|
33.1 |
58.0 |
258.11 |
(53.5) |
295.7 |
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Loss for the period |
|
|
- |
- |
- |
(2.8) |
(2.8) |
||||||||
|
Other comprehensive income |
|
|
- |
- |
0.2 |
- |
0.2 |
||||||||
|
Share buy back 2 |
|
|
(0.1) |
- |
0.1 |
(0.3) |
(0.3) |
||||||||
|
Distributions to shareholders |
|
|
- |
- |
- |
(1.8) |
(1.8) |
||||||||
|
Share-based payments |
|
|
- |
- |
0.8 |
- |
0.8 |
||||||||
|
Transfer relating to share-based payments |
|
|
- |
- |
(0.1) |
0.1 |
- |
||||||||
|
|
|
|
|
|
|
|
|
|
|||||||
|
As at 30 June 2025 (unaudited) |
|
|
33.0 |
58.0 |
259.1 |
(58.3) |
291.8 |
||||||||
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
||||||||||
1 Includes $137.1m as Merger Reserve which is fully distributable.
2 During 1H 2025, the Company repurchased 905,087 shares at an average price of 26.46 pence per share (1H 2024: 4,073,265 shares at average price of 22.01 pence per share; 2024: 9,725,763 at an average price of 23.41 pence per share).
3 See Note 2
The above interim condensed consolidated statements of changes in equity should be read in conjunction with the accompanying notes.
interim condensed consolidated cash flow statements
|
|
|
|
|
|
(unaudited) Six months ended |
(unaudited) Six months ended |
Year ended |
|
||||
|
|
|
|
|
|
30 Jun 2025 |
30 Jun 2024 |
31 Dec 2024 |
|
||||
|
|
|
|
|
Notes |
$ million |
$ million |
$ million |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
|
Net cash from operating activities |
12 |
16.1 |
27.9 |
54.0 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
||||
|
Investing activities |
|
|
|
|
|
|
|
|||||
|
Purchase of intangible assets |
|
|
(3.0) |
(1.9) |
(5.4) |
|
||||||
|
Purchase of property, plant and equipment |
|
(3.3) |
(3.8) |
(18.4) |
|
|||||||
|
Consideration in relation to farm out of Egyptian assets1 |
|
- |
5.0 |
5.0 |
|
|||||||
|
Contingent consideration received in relation to farm out of Egyptian assets |
|
0.7 |
3.6 |
3.6 |
|
|||||||
|
Assignment fee in relation to farm out of Egyptian assets |
|
- |
(0.4) |
(0.4) |
|
|||||||
|
Payment to abandonment fund |
|
|
(1.9) |
(1.1) |
(2.3) |
|
||||||
|
Net cash (used in)/from investing activities |
|
(7.5) |
1.4 |
(17.9) |
|
|||||||
|
|
|
|
|
|
|
|
|
|
||||
|
Financing activities |
|
|
|
|
|
|
|
|||||
|
Proceeds from borrowings |
|
|
14 |
- |
2.2 |
2.2 |
|
|||||
|
Interest paid on borrowings |
|
|
14 |
- |
(1.8) |
(2.4) |
|
|||||
|
Repayment of borrowings |
|
|
14 |
- |
(28.2) |
(41.4) |
|
|||||
|
Lease payments |
|
|
|
(0.2) |
(0.2) |
(0.3) |
|
|||||
|
Share buy back |
|
|
|
(0.3) |
(1.1) |
(2.9) |
|
|||||
|
Share purchase |
|
|
|
- |
- |
(0.9) |
|
|||||
|
Share-based payments |
|
|
|
- |
0.1 |
- |
|
|||||
|
Dividends paid to shareholders |
|
(1.8) |
(1.8) |
(5.9) |
|
|||||||
|
Net cash used in financing activities |
|
(2.3) |
(30.8) |
(51.6) |
|
|||||||
|
|
|
|
|
|
|
|
|
|
||||
|
Net increase/(decrease) in cash and cash equivalents |
|
6.3 |
(1.5) |
(15.5) |
|
|||||||
|
|
|
|
|
|
|
|
|
|
||||
|
Cash and cash equivalents at beginning of period |
|
16.5 |
32.6 |
32.6 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
||||
|
Effect of foreign exchange rate changes |
|
(0.2) |
(0.4) |
(0.6) |
|
|||||||
|
|
|
|
|
|
|
|
|
|
||||
|
Cash and cash equivalents at end of period |
|
22.6 |
30.7 |
16.5 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
||
1 During 2024 IPR, acting as operator and agent, was authorised to settle its operating liabilities of $3.7m and investing liabilities of $1.3m against the consideration due from the associated carry debtor amounting to $5.0m. The Company has disclosed the underlying cash flows as operating, investing or financing according to their nature on the basis that, as a principal, the entity has the right to the cash inflows and/or the obligation to settle the liability and ensure clarity of disclosure of the operating cash costs of the business.
The above interim condensed consolidated cash flow statements should be read in conjunction with the accompanying notes.
Notes to the interim condensed consolidated financial statements
1. General information
The Interim condensed financial statements for the six-month period ended 30 June 2025 have been prepared in accordance with International Accounting Standards ("IAS") 34 Interim Financial Reporting as adopted by the UK and the requirements of the Disclosure and Transparency Rules ("DTR") of the Financial Conduct Authority (FCA) in the United Kingdom as applicable to interim financial reporting.
The interim condensed financial statements represent a 'condensed set of financial statements' as referred to in the DTR issued by the FCA. Accordingly, they do not include all the information required for a full annual financial report and are to be read in conjunction with the Group's financial statements for the year ended 31 December 2024, which were prepared in accordance with UK-adopted International Accounting Standards ("IFRSs") in conformity with the requirements of the Companies Act 2006 and International Financial Reporting Standards as issued by the International Accounting Standard Board (IASB) and endorsed by the UK Endorsement Board (UKEB). The interim condensed financial statements are unaudited and do not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information for the year ended 31 December 2024 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. This information was derived from the statutory accounts for the year ended 31 December 2024, a copy of which has been delivered to the Registrar of Companies. The auditor's report on these accounts was unqualified, did not include a reference to any matters to which the auditor drew attention by way of an emphasis of matter and did not contain a statement under sections 498 (2) or (3) of the Companies Act 2006.
The half-year financial report for the six months ended 30 June 2025 was approved by the Directors on 23 September 2025.
2. Accounting policies
The annual financial statements of Pharos Energy plc will be prepared in accordance with UK-adopted IFRSs. The interim condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the UK and the Disclosure Guidance and Transparency Rules of the United Kingdom's FCA DTR. The accounting policies adopted in the June 2025 interim condensed set of financial statements are the same as those adopted in the Group's Annual Report and Accounts as at 31 December 2024.
The interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 31 December 2024 and any public announcements made by Pharos during the interim reporting period.
Restatement
Comparative information in respect of the deferred tax liability has been restated in relation to an adjustment made to correct excess cost recovery considered in the deferred tax calculations in respect of years prior to 2024. The deferred tax liability as at 31 December 2024 and 30 June 2024 was overstated by $4.9m. As a result of the correction, the deferred tax liability decreased from $67.5m to $62.6m as at 31 December 2024 and from $69.2m to $64.3m as at 30 June 2024. As the error related to years prior to 2024, the opening retained deficit has been restated, resulting in a decrease from $(71.9)m to $(67.0)m as at 1 January 2024, from $(63.7)m to $(58.8)m as at 30 June 2024, and from $(58.4)m to $(53.5)m as at 31 December 2024.
Going Concern
The Group continuously monitors its business activities, financial position, cash flows and liquidity through detailed forecasts. Scenarios and sensitivities are also regularly presented to the Board, including changes in commodity prices and in production levels from the existing assets, plus other factors that could affect the Group's future performance and position. These events include:
· A material reduction in the oil price putting pressure on the Group's capital available for investment
· A reduction in production
· An unfavourable event resulting in lost production and oil price shock
A base case forecast has been considered that utilises oil prices of $69.0/bbl in 2025 and $67.2/bbl in 2026. The key assumptions and related sensitivities include a "Reasonable Worst Case" (RWC) scenario, where the Board has taken into account the risk of a significant fall in oil prices by a third to $45.2/bbl in September 2025 and gradually recovers to the base case price over the next 12 months, concurrent with 5% reductions in Vietnam and Egypt production compared to our base case from September 2025. Both the base case and RWC take into account effect of hedging that has already been put in place at 30 June 2025 and subsequent hedges placed in 2025, now covering c. 26% of the Group's 2H 2025 total oil entitlement production. We have secured an average floor price and ceiling price of $61.3/bbl and $84.5/bbl respectively for the entire hedged volumes. Under the RWC scenario, we have identified appropriate mitigating actions which could look to reduce head office G&A by $2.0m for 2025 and not making any dividend distributions during 2026.
In addition, a revere stress test has been performed to test for a further decline in oil price, including mitigating actions, to determine at what levels oil price would need to reach such that liquidity headroom runs out. The likelihood of Brent price dropping to such levels throughout the going concern period is considered to be remote.
As at 30 June 2025, the Group had a net cash balance and improved liquidity of $22.6m (Dec 2024: $16.5m). On the basis of the forecasts provided above, the Group is expected to have sufficient financial headroom for the period of 12 months from the date of approval of these half-year results. Based on this analysis, the Directors have a reasonable expectation the Group has adequate resources to continue its operations in the foreseeable future. Therefore, the half-year results have been prepared using the going concern basis of accounting.
New and amended standards adopted by the Group
Amendments that apply for the first time in 2025, but do not have an impact on the interim condensed consolidated financial statements of the Group are:
· Lack of exchangeability - Amendments to IAS 21
Critical judgements and accounting estimates
The preparation of condensed consolidated financial statements requires management to make judgements, estimates and assumptions which affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates.
(a) Critical judgement in applying the Group's accounting policies
In the process of applying the Group's accounting policies, management has made judgements that may have a significant effect on the amounts recognised in the financial statements. These were applied for oil and gas assets.
(b) Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date, other than those mentioned above, that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year continue to be: (i) oil & gas reserves, including the impact on DD&A; and (ii) impairment of producing oil & gas assets.
3. Segment information
The Group has one principal business activity being oil and gas exploration and production. The Group's continuing operations are located in South East Asia (SE Asia) and Egypt and these areas form the basis on which the Group reports its segment information (the Group's operating segments). There are no inter-segment sales.
|
Six months ended 30 June 2025 (unaudited) |
SE Asia |
Egypt |
Unallocated1 |
Group |
||||||
|
|
|
|
|
|
|
|
$ million |
$ million |
$ million |
$ million |
|
Oil and gas sales |
|
|
|
|
56.2 |
9.4 |
- |
65.6 |
||
|
Realised loss on commodity hedges (see Note 13) |
- |
- |
- |
- |
||||||
|
Total revenue |
56.2 |
9.4 |
- |
65.6 |
||||||
|
Cost of sales |
(41.1) |
(7.9) |
- |
(49.0) |
||||||
|
Impairment reversal - Financial asset |
- |
0.1 |
- |
0.1 |
||||||
|
Administrative expenses |
- |
- |
(4.1) |
(4.1) |
||||||
|
Depreciation, depletion and amortisation - oil and gas |
(19.1) |
(2.7) |
- |
(21.8) |
||||||
|
Depreciation, depletion and amortisation - other |
- |
(0.1) |
- |
(0.1) |
||||||
|
Other operating costs |
- |
- |
(0.2) |
(0.2) |
||||||
|
Pre-licence costs |
- |
(0.2) |
- |
(0.2) |
||||||
|
Loss on fair value movement of financial asset2 |
- |
(0.7) |
- |
(0.7) |
||||||
|
Profit/(loss) before tax |
13.8 |
0.9 |
(4.2) |
10.5 |
||||||
|
Tax charge on operations (see Note 7) |
(12.2) |
(1.1) |
- |
(13.3) |
||||||
|
Non-current assets3 |
221.0 |
60.5 |
- |
281.5 |
||||||
|
Six months ended 30 June 2024 (unaudited) |
SE Asia |
Egypt |
Unallocated1 |
Group |
|
|||||||||
|
|
|
|
|
|
|
|
$ million |
$ million |
$ million |
$ million |
|
|||
|
Oil and gas sales |
|
|
|
|
55.8 |
9.3 |
- |
65.1 |
|
|||||
|
Realised loss on commodity hedges (see Note 13) |
- |
- |
(0.1) |
(0.1) |
|
|||||||||
|
Total revenue |
55.8 |
9.3 |
(0.1) |
65.0 |
|
|||||||||
|
Cost of sales |
(28.7) |
(7.0) |
- |
(35.7) |
|
|||||||||
|
Impairment reversal - Financial asset |
- |
2.7 |
- |
2.7 |
|
|||||||||
|
Administrative expenses |
- |
- |
(4.7) |
(4.7) |
|
|||||||||
|
Depreciation, depletion and amortisation - oil and gas |
(21.5) |
(2.3) |
- |
(23.8) |
|
|||||||||
|
Depreciation, depletion and amortisation - other |
- |
(0.1) |
- |
(0.1) |
|
|||||||||
|
Other operating costs |
- |
- |
(0.6) |
(0.6) |
|
|||||||||
|
Impairment reversal - PP&E |
- |
8.5 |
- |
8.5 |
|
|||||||||
|
Gain on fair value movement of financial asset2 |
- |
1.2 |
- |
1.2 |
|
|||||||||
|
Profit/(loss) before tax |
25.9 |
14.0 |
(6.3) |
33.6 |
|
|||||||||
|
Tax charge on operations (see Note 7) |
(18.3) |
- |
- |
(18.3) |
|
|||||||||
|
Non-current assets3 |
219.2 |
65.6 |
- |
284.8 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year end 31 December 2024 |
SE Asia |
Egypt |
Unallocated1 |
Group |
|
|||||||||
|
|
|
|
|
|
|
|
$ million |
$ million |
$ million |
$ million |
|
|||
|
Oil and gas sales |
|
|
|
|
115.4 |
20.7 |
- |
136.1 |
|
|||||
|
Realised loss on commodity hedges |
- |
- |
(0.1) |
(0.1) |
|
|||||||||
|
Total revenue |
115.4 |
20.7 |
(0.1) |
136.0 |
|
|||||||||
|
Cost of sales |
(75.6) |
(14.2) |
- |
(89.8) |
|
|||||||||
|
Impairment reversal - Financial asset |
- |
2.5 |
- |
2.5 |
|
|||||||||
|
Administrative expenses |
- |
- |
(9.1) |
(9.1) |
|
|||||||||
|
Depreciation, depletion and amortisation - oil and gas |
(42.1) |
(5.0) |
- |
(47.1) |
|
|||||||||
|
Depreciation, depletion and amortisation - other |
- |
(0.2) |
- |
(0.2) |
|
|||||||||
|
Other operating costs |
- |
- |
(0.8) |
(0.8) |
|
|||||||||
|
Pre-licence costs |
- |
- |
(0.8) |
(0.8) |
|
|||||||||
|
Impairment charge - Intangibles assets |
- |
(2.0) |
- |
(2.0) |
|
|||||||||
|
Impairment reversal - PP&E |
23.4 |
4.9 |
- |
28.3 |
|
|||||||||
|
Gain on fair value movement of financial asset2 |
- |
0.3 |
- |
0.3 |
|
|||||||||
|
Profit/(loss) before tax |
60.9 |
11.3 |
(11.5) |
60.7 |
|
|||||||||
|
Tax charge on operations (see Note 7) |
(26.8) |
(1.9) |
- |
(28.7) |
|
|||||||||
|
Tax charge on impairment reversal (see Note 7) |
(8.4) |
- |
- |
(8.4) |
|
|||||||||
|
Non-current assets3 |
233.5 |
62.0 |
- |
295.5 |
|
|||||||||
1 Unallocated amounts included in profit/(loss) before tax comprise corporate costs not attributable to an operating segment, investment and hedging revenue, other gains and losses and finance costs.
2 Relates to the revision of contingent consideration due from the farm-out of the Egyptian concessions with IPR, partially offset by the movement in contingent liability (assignment fee) owed to EGPC.
3 Excludes Other assets.
4. Cost of sales
|
|
|
|
|
|
|
|
|
|
(unaudited) six months ended 30 Jun 2025 |
(unaudited) six months ended 30 Jun 2024 |
Year ended 31 Dec 2024 |
|
|
|
|
|
|
|
|
$ million |
$ million |
$ million |
|
|||||
|
Depreciation, depletion and amortisation |
21.8 |
23.8 |
47.1 |
|
|||||||||
|
Production based taxes |
|
|
|
|
|
3.9 |
4.9 |
9.2 |
|
||||
|
Production operating costs |
|
|
|
|
|
18.3 |
18.9 |
39.5 |
|
||||
|
Change in inventories |
|
|
|
|
|
5.0 |
(11.9) |
(6.0) |
|
||||
|
|
|
|
|
|
49.0 |
35.7 |
89.8 |
|
|||||
|
Impairment reversal - financial asset |
|
|
|
|
(0.1) |
(2.7) |
(2.5) |
|
|||||
|
|
|
|
|
|
48.9 |
33.0 |
87.3 |
|
|||||
5. Other Operating Costs and Other/restructuring expense
|
|
|
|
|
|
|
|
|
|
(unaudited) six months ended 30 Jun 2025 |
(unaudited) six months ended 30 Jun 2024 |
Year ended 31 Dec 2024 |
|
|
|
|
|
|
$ million |
$ million |
$ million |
||||
|
Other operating costs |
|
|
|
||||||||
|
Share based payments |
- |
0.6 |
0.6 |
||||||||
|
Other |
0.2 |
- |
0.2 |
||||||||
|
|
0.2 |
0.6 |
0.8 |
||||||||
|
Other/restructuring expense |
|
|
|
||||||||
|
Redundancy costs |
- |
0.4 |
0.4 |
||||||||
|
|
|
|
|
|
- |
0.4 |
0.4 |
||||
In 1H 2024, other operating costs of $0.6m relate to the posthumous vesting of share scheme awards to the former CEO of the Company, settled in cash and paid to his estate with the agreement of the executor. This cash settlement was provided for in the relevant share scheme rules and formally approved by the Remuneration Committee.
In 1H 2024, Other/restructuring expenses included $0.4m of redundancy costs relating to the Egypt office in Cairo.
6. Finance Costs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 For 1H 2025, $1.2m relates to the unwinding of discount on the provisions for decommissioning (1H 2024: $1.0m). The provisions are based on the net present value of the Group's share of the expenditure which will be incurred at the end of the life of TGT and CNV (currently estimated to be 7-8 years) in the removal and decommissioning of the facilities currently in place.
2 Following the June 2024 redetermination and the $20.0m repayment of principal in relation to the Group's reserve based lending facility, there was a change in estimated future cash flows. As a result, in 1H 2024, a credit of $(0.1)m was recognised in the income statement.
2 The RBL loan facility was voluntarily repaid early and in full on 17 September 2024 and, in full year 2024, a credit of $1.3m was recognised in the income statement.
7. Tax
|
|
|
|
|
|
|
|
|
|
(unaudited) six months ended 30 Jun 2025 |
(unaudited) six months ended 30 Jun 2024 |
Year ended 31 Dec 2024 |
|
|
|
|
|
|
$ million |
$ million |
$ million |
||||
|
Current tax |
|
|
|
||||||||
|
Corporation tax |
16.5 |
15.8 |
36.0 |
||||||||
|
Adjustments to tax charge in respect of previous periods |
- |
1.5 |
1.8 |
||||||||
|
|
16.5 |
17.3 |
37.8 |
||||||||
|
Deferred tax |
|
|
|
||||||||
|
Deferred tax (credit)/charge on operations |
(3.2) |
1.0 |
(9.1) |
||||||||
|
Deferred tax charge on net impairment reversal |
- |
- |
8.4 |
||||||||
|
|
|
|
|
|
(3.2) |
1.0 |
(0.7) |
||||
|
|
|
|
|
|
|
|
|
||||
|
Total tax charge |
|
|
|
|
13.3 |
18.3 |
37.1 |
||||
The Group's corporation tax is calculated at 50% (1H 2024: 50%) of the estimated assessable profit for the year in Vietnam. In Egypt, under the terms of the concession any local taxes arising are settled by EGPC on behalf of the Group. During each period, both current and deferred taxation have arisen in overseas jurisdictions only.
The charge for the period can be reconciled to the profit per the income statement as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The prevailing tax rate in Vietnam, where the Group produces oil and gas, is 50% (1H 2024: 50%). The tax charge in future periods may also be affected by the factors in the reconciliation above.
In full year 2024, non-taxable income relates to the tax impact of Vietnam impairment reversals of $(3.3)m in relation to the non-cost recovery pool and Egypt impairment reversal of $(2.5)m.
Non-deductible expenses primarily relate to Vietnam DD&A charges for costs previously capitalised, which are non-deductible for Vietnamese tax purposes of $5.3m (1H 2024: $3.8m; Dec 2024: $6.2m). 1H 2025 also includes $0.7m of non-deductible expenses for Egypt operations. A further $0.3m (1H 2024: $0.2m; Dec 2024: $0.9m) relates to non-deductible corporate costs including share scheme incentives. In the year ended 31 December 2024, non-deductible expenses also included the tax impact of Egypt intangible impairment charges of $1.0m.
The Egypt concessions are subject to corporate income tax at the standard rate of 40.55%, however responsibility for payment of corporate income taxes falls upon EGPC on behalf of PEF. The Group records a tax charge, with a corresponding increase in revenue, for the tax paid by EGPC on its behalf. As PEF became profitable during 2024, reversing the historic tax loss position since first production, this has resulted in $1.1m (1H 2024: $nil; Dec 2024: $1.9m) tax charge being recorded in 1H 2025. The effect from tax losses not recognised in 1H 2025 and 2024 relates to costs, primarily of the Company, deductible for tax in the UK but not expected to be utilised in the foreseeable future.
8. Earnings per share
The calculation of the basic and diluted earnings per share is based on the following data:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In accordance with IAS 33 "Earnings per Share", the effects of 13.5m antidilutive potential shares have not been included when calculating dilutive earnings per share for the period ended 30 June 2025, as the Group was loss making.
9. Intangible assets
Intangible assets comprise the Group's exploration and evaluation projects which are pending determination. Included in the 1H 2025 additions are charges for Blocks 125 & 126 in Vietnam of $4.1m, including $2.6m of drill casings and long-lead items ahead of drilling the first commitment well, and Egypt of $0.7m.
In Egypt, as part of the planned work programme for 2024, an exploration well was drilled on El Fayum in August 2024. Testing of the East Saad well was carried out at the beginning of February 2025. IPR, the operator of the El Fayum Concession, applied to EGPC for commercial discovery declaration and early production permission in February 2025. The development lease was approved and first production commenced at the end of June 2025. As a result, exploration costs of $2.9m were reclassified to property, plant and equipment in 1H 2025.
In June 2025, having reviewed the triggers for impairment or impairment reversal, Management are of the view that none of the impairment indicators under IFRS 6 have been triggered and therefore no impairment testing is required for Vietnam and Egypt.
While costs for exploration are forecast and funds are available for future exploration, there is insufficient certainty of full recovery to justify the reversal of the previous impairment charges in 2020. The accumulated impairment charges against exploration and evaluation expenditure at 30 June 2025 stands at $28.9m (30 June 2024: $26.8m). This will be kept under review as the exploration activity continues.
10. Property, plant and equipment
|
|
|
|
|
|
|
|
|
|
Oil and gas properties |
Other |
Total |
|
Jun 2025 |
|
|
|
|
$ million |
$ million |
$ million |
||||
|
Property, plant and equipment |
257.5 |
0.2 |
257.7 |
||||||||
|
Right of use asset |
0.1 |
- |
0.1 |
||||||||
|
As at 30 Jun 2025 |
257.6 |
0.2 |
257.8 |
||||||||
|
|
|
|
|
|
|
|
|
|
Oil and gas properties |
Other |
Total |
|
Jun 2024 |
|
|
|
|
$ million |
$ million |
$ million |
||||
|
Property, plant and equipment |
263.9 |
0.4 |
264.3 |
||||||||
|
Right of use asset |
0.4 |
- |
0.4 |
||||||||
|
As at 30 Jun 2024 |
264.3 |
0.4 |
264.7 |
||||||||
|
|
|
|
|
|
|
|
|
|
Oil and gas properties |
Other |
Total |
|
Dec 2024 |
|
|
|
|
$ million |
$ million |
$ million |
||||
|
Property, plant and equipment |
273.2 |
0.3 |
273.5 |
||||||||
|
Right of use asset |
0.2 |
- |
0.2 |
||||||||
|
As at 31 Dec 2024 |
273.4 |
0.3 |
273.7 |
||||||||
We have evaluated each of our oil and gas producing properties for impairment or impairment reversal triggers. For each producing property with such triggers, the recoverable amount held on the books would be determined using the value in use method. The recoverable amount is calculated using a discounted cash flow valuation of the 2P production profile.
The average Brent price forecast as at HY 2025 fell by only 6.8% for 2025 to 2027 and 4.6% in the longer-term and does not indicate a significant change in the underlying value of oil and gas assets. Furthermore, there were no significant changes to the weighted average cost of capital (WACC) and forecast production volumes for both Vietnam and Egypt assets compared to 2024 year end.
As a result, after examining both internal and external indicators of impairment, the Group determined that no impairments or impairment reversal indicators were identified on any of the Group's oil and gas producing properties and no impairment tests were considered necessary as at 30 June 2025.
Vietnam
As at 30 June 2025, the carrying amount of the TGT oil and gas producing property, after additions of $0.9m, increase in decommissioning asset of $0.7m and DD&A of $14.9m, is $140.3m (Jun 2024: $141.2m; Dec 2024: $153.6m). As at 30 June 2025, the carrying amount of the CNV oil and gas producing property, after additions of $0.5m, increase in decommissioning asset of $0.3m and DD&A of $4.2m, is $56.8m (Jun 2024: $59.9m; Dec 2024: $60.2m).
Egypt
As at 30 June 2025, the carrying amount of the El Fayum oil and gas producing property, after additions of $0.7m, transfer from intangibles of $2.9m and DD&A of $2.6m, is $59.5m (Jun 2024: $62.0m; Dec 2024: $58.5m). As at 30 June 2025, the carrying amount of the NBS oil and gas producing property, after DD&A of $0.1m, is $1.0m (Jun 2024: $1.2m; Dec 2024: $1.1m).
Other
Other fixed assets comprise office fixtures and fittings and computer equipment of $0.2m (Jun 2024: $0.4m; Dec 2024: $0.3m).
11. Distribution to Shareholders
An interim dividend of 0.363 pence per share in respect of the year ended 31 December 2024, $1.8m equivalent, was paid on 22 January 2025 to shareholders on the Company's register as at 20 December 2024.
A final dividend of 0.847 pence per share in respect of the year ended 31 December 2024, $4.7m equivalent, was approved by the shareholders at the Company's AGM in May 2025 and subsequently paid on 18 July 2025 to shareholders on the register at the close of business on 13 June 2025. This took the 2024 full year dividend to 1.21 pence per share, an increase of 10% on the prior year.
In accordance with dividend policy, the Board has resolved to pay an interim dividend of 0.3993 pence per share, $2.3m equivalent, in respect of the year ended 31 December 2025 and this will be paid on 21 January 2026 to shareholders on the Company's register as at 19 December 2025.
12. Reconciliation of operating profit to operating cash flows
|
|
|
|
|
|
|
|
|
|
(unaudited) six months ended 30 Jun 2025 |
(unaudited) six months ended 30 Jun 2024 |
Year ended 31 Dec 2024 |
|
|
|
|
|
|
|
|
|
|
$ million |
$ million |
$ million |
|
Operating profit |
|
|
|
|
|
12.2 |
35.2 |
64.3 |
|||
|
Share-based payments |
|
|
|
|
0.5 |
0.3 |
0.9 |
||||
|
Depreciation, depletion and amortisation |
|
|
|
21.9 |
23.9 |
47.3 |
|||||
|
Impairment reversal |
|
|
|
- |
(8.5) |
(26.3) |
|||||
|
Taxes paid-in-kind |
|
|
|
(1.1) |
- |
(1.9) |
|||||
|
Operating cash flows before movements in working capital |
|
33.5 |
50.9 |
84.3 |
|||||||
|
|
|
|
|
|
|||||||
|
Decrease/(increase) in inventories |
|
|
|
5.0 |
(11.9) |
(6.0) |
|||||
|
(Increase)/decrease in receivables1 |
|
|
|
|
(5.0) |
6.8 |
11.3 |
||||
|
Decrease in payables |
|
|
|
(1.6) |
(1.5) |
(0.3) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash generated by operations |
|
|
|
31.9 |
44.3 |
89.3 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest received |
|
|
|
|
|
0.1 |
0.2 |
0.4 |
|||
|
Other/restructuring expense outflow |
|
|
|
|
- |
(0.4) |
(0.4) |
||||
|
Income taxes paid |
|
|
|
|
(15.9) |
(16.2) |
(35.3) |
||||
|
Net cash from operating activities |
|
|
|
16.1 |
27.9 |
54.0 |
|||||
1 Includes $0.1m decrease (1H 2024: $2.7m) in risk factor provision in respect of Egypt trade receivables.
During the period ended 30 June 2025, a total of $0.3m (1H 2024: $0.4m) of trade receivables due from EGPC in Egypt and relating to training bonuses were settled by way of non-cash offset. In 1H 2024, this was predominantly due to the assignment bonus settled upon receipt of contingent consideration in relation to the IPR Farm out.
13. Hedge transactions
During 1H 2025, Pharos entered into zero cost collar hedges to protect the Brent component of forecast oil sales and to provide downside protection to cash flows in the event of commodity prices falling. The commodity hedges run until December 2025 and are settled monthly.
Our hedging positions for the period resulted in no realised gain or loss (1H 2024: $0.1m realised loss). The outstanding unrealised gain on open positions at 30 June 2025 amounted to $0.1m (1H 2024: outstanding unrealised loss of $0.8m).
For 2H 2025, 26% of the Group's total oil entitlement production has been hedged, securing average floor and ceiling prices for the hedged volumes at $61.3/bbl and $84.5/bbl, respectively.
Pharos has designated the zero cost collars as cash flow hedges. This means that the effective portion of unrealised gains or losses on open positions will be reflected in other comprehensive income. Every month, the realised gain or loss will be reflected in the revenue line of the income statement.
The carrying amount of the zero cost collars are based on the fair value determined by a financial institution. As all material inputs are observable, they are categorised within Level 2 in the fair value hierarchy. It is presented in "Derivative financial instruments" in the consolidated statement of financial position. The net receivable position as at 30 June 2025 was $0.2m (30 Jun 2024: net liability position of $0.7m; 31 Dec 2024: net receivable position of $0.1m).
Please see below for a summary of hedges outstanding as at 30 June 2025, which are all zero cost collar.
|
|
|
3Q25 |
4Q25 |
|
|
Production hedge per quarter - 000/bbls |
|
120 |
90 |
|
|
Min. Average value of hedge - $/bbl |
|
61.5 |
61.0 |
|
|
Max. Average value of hedge - $/bbl |
|
84.7 |
84.3 |
|
14. Borrowings
Changes in liabilities arising from financing activities:
|
|
|
|
|
|
(unaudited) six months ended 30 Jun 2025 $ million |
|
|
(unaudited) six months ended 30 Jun 2024 $ million |
|
|
|
|
|
|
Total Borrowings |
Credit facility |
RBL |
Total Borrowings |
|
Carrying value as of 1 January |
|
|
|
|
- |
9.2 |
31.3 |
40.5 |
|
Proceeds from Uncommitted Revolving credit facility |
|
|
|
|
- |
2.2 |
- |
2.2 |
|
Repayments of borrowings |
|
|
|
|
- |
(8.2) |
(20.0) |
(28.2) |
|
Interest expense and similar fees (see Note 6) |
|
|
|
|
- |
0.3 |
0.8 |
1.1 |
|
Interest paid during the year |
|
|
|
|
- |
(0.3) |
(1.5) |
(1.8) |
|
Carrying value as of 30 June |
|
|
|
|
- |
3.2 |
10.6 |
13.8 |
|
Current |
|
|
|
|
- |
3.2 |
10.6 |
13.8 |
|
Non-current |
|
|
|
|
- |
- |
- |
- |
|
Carrying value as of 30 June |
|
|
|
|
- |
3.2 |
10.6 |
13.8 |
Reserve Based Lending facility (RBL)
The RBL was secured over the Vietnam producing assets only and, as at 30 June 2024, had a one-year term maturing in June 2025. The loan bore a per annum interest rate of 5.25% plus Compound SOFR plus CAS (Credit Adjustment Spread). The RBL loan facility was repaid in full on 17 September 2024 and it was agreed to voluntarily reduce the borrowing base to $0.1m. The RBL loan facility was voluntarily cancelled in full on 30 June 2025.
The RBL was subject to a number of financial covenants, which continued to apply up to the date of maturity and voluntary cancellation, all of which were complied with during the 1H 2025 and 2024 reporting periods.
Uncommitted revolving credit facility - National Bank of Egypt (Credit facility)
In June 2025, the Group renegotiated the uncommitted revolving credit facility with NBE UK for discounting (with recourse) of up to $10m until 9 June 2026.
Loans are available for up to one year from the date of utilisation. The loan bears a per annum interest rate of Term SOFR plus 3.50% for initial advances and 4.00% for any extensions beyond 180 days from the date of the utilisation.
The carrying amount of the trade receivables include receivables in Egypt which are subject to an Uncommitted Revolving Credit Facility for Discounting (with Recourse) arrangement. This facility was put in place to mitigate the risk of late payment. Under this arrangement, Pharos is able to access cash from the facility using the El Fayum oil sales invoices as evidence to support its ability to repay the facility. The oil sales invoices remain due to Pharos and it retains the credit risk. The Group therefore continues to recognise the receivables in their entirety in its balance sheet. The facility was repaid in full in August 2024.
15. Subsequent events
On 23 September 2025, the Group announced that it has received approval from the Executive Board of EGPC for the consolidation of the El Fayum and North Beni Suef Concession Agreements into a new consolidated concession agreement, with improvement of certain fiscal terms. Pharos will retain 45% working interest in the Consolidated Concession, with IPR continuing as operator with a 55% working interest. In addition to the 12 development leases of the El Fayum and NBS Concessions, the Consolidated Concession will include three new exploration areas. The Consolidated Concession is subject to customary approvals and ratification by the Egyptian Parliament, which is expected to take place in late 2025 or early 2026. The financial statement effect of the Consolidated Concession cannot be made as of the date of this announcement.
Non-IFRS measures
The Group uses certain measures of performance that are not specifically defined under IFRS or other generally accepted accounting principles. These non-IFRS measures include cash operating costs per barrel, DD&A per barrel, gearing, free cash flow, operating cash per share and return on capital employed.
For the RBL covenant compliance, three Non-IFRS measures are included: Net debt, EBITDAX and Net debt/EBITDAX.
Cash operating costs per barrel
Cash operating costs are defined as cost of sales less DD&A, production-based taxes, movement in inventories and certain other immaterial cost of sales.
Cash operating costs for the period are then divided by barrels of oil equivalent produced. This is a useful indicator of cash operating costs incurred to produce oil and gas from the Group's producing assets.
|
|
|
|
|
|
|
|
|
|
(unaudited) six months ended 30 Jun 25 |
(unaudited) six months ended 30 Jun 24 |
Year ended 31 Dec 24 |
|
|
|
|
|
|
$ million |
$ million |
$ million |
||||
|
Cost of sales 1 |
48.9 |
33.0 |
87.3 |
||||||||
|
(Less)/add: |
|
|
|
||||||||
|
Depreciation, depletion and amortisation |
(21.8) |
(23.8) |
(47.1) |
||||||||
|
Production based taxes |
(3.9) |
(4.9) |
(9.2) |
||||||||
|
Change in inventories |
(5.0) |
11.9 |
6.0 |
||||||||
|
Trade receivables expected credit loss |
0.1 |
2.7 |
2.5 |
||||||||
|
Other cost of sales |
|
|
|
|
(0.9) |
(0.7) |
(1.7) |
||||
|
Cash operating costs |
|
|
|
|
17.4 |
18.2 |
37.8 |
||||
|
Production (BOEPD) |
|
|
|
|
5,642 |
5,851 |
5,801 |
||||
|
Cash operating cost per BOE ($) |
|
|
|
|
17.04 |
17.09 |
17.80 |
||||
1 Includes impairment reversal of financial asset
Cash operating costs per barrel by segment (1H 2025)
|
Vietnam |
|
|
|
|
|
|
|
|
(unaudited) six months ended 30 Jun 25 |
(unaudited) six months ended 30 Jun 24 |
|
|
|
|
|
|
$ million |
$ million |
||||
|
Cost of sales |
41.1 |
28.7 |
||||||||
|
Less: |
|
|
||||||||
|
Depreciation, depletion and amortisation |
(19.1) |
(21.5) |
||||||||
|
Production based taxes |
(3.8) |
(4.8) |
||||||||
|
Change in inventories |
(5.0) |
11.7 |
||||||||
|
Other cost of sales |
|
|
|
|
(0.6) |
(0.5) |
||||
|
Cash operating costs |
|
|
|
|
12.6 |
13.6 |
||||
|
Production (BOEPD) |
|
|
|
|
4,183 |
4,456 |
||||
|
Cash operating cost per BOE ($) |
|
|
|
|
16.64 |
16.77 |
||||
|
Egypt |
|
|
|
|
|
|
|
|
(unaudited) six months ended 30 Jun 25 |
(unaudited) six months ended 30 Jun 24 |
|
|
|
|
|
|
$ million |
$ million |
||||
|
Cost of sales |
7.8 |
4.3 |
||||||||
|
Less: |
|
|
||||||||
|
Depreciation, depletion and amortisation |
(2.7) |
(2.3) |
||||||||
|
Production based taxes |
(0.1) |
(0.1) |
||||||||
|
Change in inventories |
- |
0.2 |
||||||||
|
Trade receivables expected credit loss |
0.1 |
2.7 |
||||||||
|
Other cost of sales |
|
|
|
|
(0.3) |
(0.2) |
||||
|
Cash operating costs |
|
|
|
|
4.8 |
4.6 |
||||
|
Production (BOEPD) |
|
|
|
|
1,459 |
1,395 |
||||
|
Cash operating cost per BOE ($) |
|
|
|
|
18.18 |
18.12 |
||||
DD&A per barrel
DD&A per barrel is calculated as net book value of oil and gas assets in production, together with estimated future development costs over the remaining 2P reserves. This is a useful indicator of ongoing rates of depreciation and amortisation of the Group's producing assets.
|
|
|
|
|
|
|
|
|
|
(unaudited) six months ended 30 Jun 25 |
(unaudited) six months ended 30 Jun 24 |
Year ended 31 Dec 24 |
|
|
|
|
|
|
$ million |
$ million |
$ million |
||||
|
Depreciation, depletion and amortisation |
21.8 |
23.8 |
47.1 |
||||||||
|
Production (BOEPD) |
|
|
|
|
5,642 |
5,851 |
5,801 |
||||
|
DD&A per BOE ($) |
|
|
|
|
21.35 |
22.35 |
22.18 |
||||
DD&A per barrel by segment (1H 2025)
|
Vietnam |
|
|
|
|
|
|
|
|
(unaudited) six months ended 30 Jun 25 |
(unaudited) six months ended 30 Jun 24 |
Year ended 31 Dec 24 |
|
|
|
|
|
|
$ million |
$ million |
$ million |
||||
|
Depreciation, depletion and amortisation |
19.1 |
21.5 |
42.1 |
||||||||
|
Production (BOEPD) |
|
|
|
|
4,183 |
4,456 |
4,361 |
||||
|
DD&A per BOE ($) |
|
|
|
|
25.23 |
26.51 |
26.38 |
||||
|
Egypt |
|
|
|
|
|
|
|
|
(unaudited) six months ended 30 Jun 25 |
(unaudited) six months ended 30 Jun 24 |
Year ended 31 Dec 24 |
|
|
|
|
|
|
$ million |
$ million |
$ million |
||||
|
Depreciation, depletion and amortisation |
2.7 |
2.3 |
5.0 |
||||||||
|
Production (BOEPD) |
|
|
|
|
1,459 |
1,395 |
1,440 |
||||
|
DD&A per BOE ($) |
|
|
|
|
10.22 |
9.06 |
9.49 |
||||
Gearing
Debt to equity ratio is calculated by dividing interest-bearing bank loans by stockholder's equity. The debt to equity ratio expresses the relationship between external equity (liabilities) and internal equity (stockholder equity).
|
|
|
|
|
|
|
|
|
|
(unaudited) six months ended 30 Jun 25 |
(unaudited) six months ended 30 Jun 24 |
Year ended 31 Dec 24 |
|
|
|
|
|
|
$ million |
$ million |
$ million |
||||
|
Total Debt |
- |
13.2 |
- |
||||||||
|
Total Equity |
|
|
|
|
291.8 |
283.6 |
290.8 |
||||
|
Debt to Equity |
|
|
|
|
- |
0.05 |
- |
||||
Free cash flow
Free cash flow is calculated by subtracting capital cash expenditure from net cash from operating activities.
|
|
|
|
|
|
|
|
|
|
(unaudited) six months ended 30 Jun 25 |
(unaudited) six months ended 30 Jun 24 |
Year ended 31 Dec 24 |
|
|
|
|
|
|
$ million |
$ million |
$ million |
||||
|
Net cash from operating activities |
16.1 |
27.9 |
54.0 |
||||||||
|
Capital cash expenditure |
|
|
|
|
(8.2) |
(6.8) |
(26.1) |
||||
|
Free cash flow |
|
|
|
|
7.9 |
21.1 |
27.9 |
||||
Operating cash per share
Operating cash per share is calculated by dividing net cash from continuing operations by number of shares.
|
|
|
|
|
|
|
|
|
|
(unaudited) six months ended 30 Jun 25 |
(unaudited) six months ended 30 Jun 24 |
Year ended 31 Dec 24 |
|
|
|
|
|
|
$ million |
$ million |
$ million |
||||
|
Net cash from continuing operating activities |
16.1 |
27.9 |
54.0 |
||||||||
|
Weighted number of shares in the year |
|
|
|
|
412,341,532 |
419,333,288 |
417,019,506 |
||||
|
Operating cash per share |
|
|
|
|
0.04 |
0.07 |
0.13 |
||||
Net Cash/(Debt)
Net Cash/(Debt) comprises cash and cash equivalents, less interest-bearing bank loans.
|
|
|
|
|
|
|
|
|
|
(unaudited) six months ended 30 Jun 25 |
(unaudited) six months ended 30 Jun 24 |
Year ended 31 Dec 24 |
|
|
|
|
|
|
$ million |
$ million |
$ million |
||||
|
Cash and cash equivalents |
22.6 |
30.7 |
16.5 |
||||||||
|
Borrowings* |
|
|
|
|
- |
(13.2) |
- |
||||
|
Net Cash |
|
|
|
|
22.6 |
17.5 |
16.5 |
||||
*Excludes unamortised capitalised finance costs
EBITDAX
EBITDAX is earnings from continuing activities before interest, tax, DD&A, impairment charge/(reversal) of PP&E and intangibles, exploration expenditure, pre-licence costs and Other/restructuring expense items in the period.
|
|
|
|
|
|
|
|
|
|
(unaudited) six months ended 30 Jun 25 |
(unaudited) six months ended 30 Jun 24 |
Year ended 31 Dec 24 |
|
|
|
|
|
|
$ million |
$ million |
$ million |
||||
|
Operating profit |
12.2 |
35.2 |
64.3 |
||||||||
|
Depreciation, depletion and amortisation |
21.9 |
23.9 |
47.3 |
||||||||
|
Pre-licence costs |
0.2 |
- |
0.8 |
||||||||
|
Impairment reversal |
|
|
|
|
- |
(8.5) |
(26.3) |
||||
|
EBITDAX |
|
|
|
|
34.3 |
50.6 |
86.1 |
||||
Return on capital employed (ROCE)
ROCE is calculated by dividing operating profit by total assets less current liabilities. ROCE measures a company's profitability and the efficiency with which its capital is employed.
|
|
|
|
|
|
|
|
|
|
(unaudited) six months ended 30 Jun 25 |
(unaudited) six months ended 30 Jun 24 |
Year ended 31 Dec 24 |
|
|
|
|
|
|
$ million |
$ million |
$ million |
||||
|
Operating profit |
12.2 |
35.2 |
64.3 |
||||||||
|
Total assets less current liabilities |
|
|
|
|
404.4 |
406.0 |
409.6 |
||||
|
ROCE |
|
3.0% |
8.7% |
15.7% |
|||||||
Glossary of Terms
boepd
Barrels of oil equivalent per day
bopd
Barrels of oil per day
cash
Cash, cash equivalent and liquid investments
capex
Capital expenditure
CNV
Ca Ngu Vang field located in Block 9-2, Vietnam
Company
Pharos Energy plc
EGP
Egyptian Pound
EGPC
Egyptian General Petroleum Corporation, an Egyptian state oil and gas company and the industry regulator
El Fayum or the El Fayum Concession
The concession agreement for petroleum exploration and exploitation entered into on 15 July 2004 between the Arab Republic of Egypt, EGPC and Pharos El Fayum in respect of the El Fayum area, Western Desert, as amended from time to time
FPSO
Floating production, storage and offloading vessel
Group
Pharos and its direct and indirect subsidiary undertakings
HLJOC
Hoang Long Joint Operating Company, the operator of TGT
HLHVJOC
The HLJOC and the HVJOC
HVJOC
Hoan Vu Joint Operating Company, the operator of CNV
IPR
The IPR Energy group of companies, including IPR Lake Qarun and IPR Energy AG, or such of them as the context may require
IPR Lake Qarun
IPR Lake Qarun Petroleum Co, an exempted company with limited liability organised and existing under the laws of the Cayman Islands (registration number 379306), a wholly owned subsidiary of IPR Energy AG
JOC
Joint Operating Company
km
Kilometre
km2
Square kilometre
m
Million
MOIT
Ministry of Industry and Trade of Vietnam
NBS, North Beni Suef or the North Beni Suef Concession
The concession agreement for petroleum exploration and exploitation entered into on 24 December 2019 between the Arab Republic of Egypt, EGPC and Pharos El Fayum in respect of the North Beni Suef area, Nile Valley
Petrosilah
An Egyptian joint stock company held 50/50 between the El Fayum Contractor parties (being the Pharos Group and IPR Lake Qarun) and EGPC
Prospect and lead
An identified trap that may contain hydrocarbons. A potential hydrocarbon accumulation may be described as a lead or prospect depending on the degree of certainty in that accumulation. A prospect is generally mature enough to be considered for drilling
PSC
Production sharing contract or production sharing agreement
PVN
PetroVietnam, the principal state oil and gas company of Vietnam
RBL
Reserve Based Lending facility
share
Ordinary share of 5p in the capital of the Company, unless the context otherwise requires
TGT
Te Giac Trang field located in Block 16-1, Vietnam
$ or USD
United States Dollar
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