Stock Markets March 25, 2026

Pharos Energy posts lower 2025 revenue as oil prices weigh on sales

Preliminary results show drop in oil and gas revenue, a swing to a net loss and boosted 2026 production guidance driven by Vietnam activity

By Marcus Reed
Pharos Energy posts lower 2025 revenue as oil prices weigh on sales

Pharos Energy reported preliminary 2025 results marked by a decline in oil and gas revenue to $114.60 million and a return to a net loss after a prior-year profit. The company recorded gross profit of $18.20 million and operating profit of $8.70 million, proposed a $5.2 million final dividend subject to shareholder approval, and raised its 2026 working interest production guidance to 5,200-6,400 boe/d net. Capital spending is planned at $50 million for 2026, and Vietnam operations remain central to near-term production upside.

Key Points

  • Pharos reported oil and gas sales of $114.60 million for 2025, a decline attributed to lower oil prices - impacts energy and upstream oil and gas sectors.
  • The company recorded a preliminary net loss for 2025, with gross profit of $18.20 million and operating profit of $8.70 million - relevant to investors and credit stakeholders.
  • 2026 guidance was raised to 5,200-6,400 boe/d net and group cash capex is set at $50 million, split $39 million to Vietnam and $11 million to Egypt - significant for capital allocation and production planning in oil and gas markets.

Pharos Energy said preliminary figures for 2025 show a downturn in oil and gas sales, with revenue of $114.60 million reflecting the impact of lower oil prices on top-line performance.

The group swung to a preliminary net loss for 2025, a reversal from the profit reported the previous year. On a profitability basis, the company posted gross profit of $18.20 million and operating profit of $8.70 million in the period covered by the preliminary results.

Pharos proposed a final dividend for 2025 of $5.2 million, which remains conditional on approval by shareholders at the relevant meeting.

Looking ahead, Pharos adjusted its 2026 working interest production guidance upward, targeting a range of 5,200-6,400 barrels of oil equivalent per day net. The company said its Vietnam drilling programme is scheduled to conclude by mid-2026. Management indicated there is a potential for a c.20% uplift in output if appraisal wells in Vietnam prove successful.

Group capital expenditure on a cash basis for 2026 is expected to be $50 million in total. Of that amount, $39 million is earmarked for activities in Vietnam while $11 million is allocated to operations in Egypt.

Operationally, Pharos completed a six-well campaign across the TGT and CNV fields in Vietnam, work the company characterised as supporting current production and intended to unlock incremental volumes.

In Egypt, the company secured approval to consolidate two concessions. The consolidation delivered an immediate uplift in value, according to Pharos, through lease extensions and improved fiscal terms that accompany the transaction.

On the balance sheet front, the company received a $20 million payment from EGPC. Pharos said this inflow reduced receivables to their lowest level since December 2021 and resulted in a doubling of the year-end cash balance.


Context and next steps

Pharos has signalled a focus on Vietnam as the primary source of near-term production growth while maintaining targeted capital discipline in 2026. The company will seek shareholder approval for the proposed final dividend and continue to execute the recently completed drilling programme and the Egypt concession consolidation.

Risks

  • Continuing exposure to oil price weakness that reduced 2025 revenue - risk to upstream producers and commodity-linked equity performance.
  • Appraisal wells in Vietnam may not deliver the potential c.20% output boost, creating uncertainty around the raised 2026 production guidance - exploration and production risk.
  • Receivables and cash position remain sensitive to counterparty payments; while a $20 million payment from EGPC improved cash and receivables, future collections could affect liquidity - relevant to corporate finance and investor sentiment.

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