Revenue Decline#
UK energy producer Pharos Energy has reported a preliminary revenue decline for 2025. The company's oil and gas sales totaled $114.60 million, a decrease from the previous year, primarily due to lower oil prices.
Financial Performance#
Pharos Energy experienced a shift to a preliminary net loss for 2025, contrasting with a profit in the prior year. The gross profit for the year was $18.20 million, while the operating profit reached $8.70 million. Despite these challenges, the company has proposed a final dividend of $5.2 million for 2025, pending shareholder approval.
Production Guidance and Investments#
Looking ahead, Pharos Energy has raised its production guidance for 2026 to between 5,200 and 6,400 barrels of oil equivalent per day. The company’s drilling program in Vietnam is expected to conclude by mid-2026, with the potential for a 20% increase in output if appraisal wells are successful.
For 2026, the group anticipates capital expenditures of $50 million, with $39 million allocated to Vietnam and $11 million to Egypt. Recently, Pharos completed a six-well campaign in Vietnam aimed at supporting current production levels and unlocking additional volumes.
Strategic Developments#
Pharos Energy has also received approval for the consolidation of two concessions in Egypt, which has resulted in an immediate increase in value through lease extensions and improved fiscal terms. Additionally, the company received a $20 million payment from the Egyptian General Petroleum Corporation (EGPC), which has significantly reduced receivables and doubled its cash balance at year-end, marking the lowest receivables level since December 2021.