Pharos Energy reports solid first-half performance

(Sharecast News) - Pharos Energy reported a solid first-half operational performance on Thursday, with stable production and continued free cash flow generation, enabling it to reaffirm full-year guidance and dividend commitments despite volatile macro conditions. Group working interest production averaged 5,642 barrels of oil equivalent per day in the period, with output of 4,183 daily equivalent barrels in Vietnam, and 1,459 in Egypt.

Full-year guidance remained unchanged at 5,000 to 6,200 barrels of oil equivalent per day, with Vietnam expected to deliver 3,600 to 4,600 daily barrels, and Egypt 1,400 to 1,600.

"We have had a strong first half of the year with stable production and healthy free cash flow generation against a backdrop of volatile macro conditions," said CEO Katherine Roe.

"This reflects our high-quality asset base and strict approach to capital discipline."

In Vietnam, preparations were underway for a six-well infill and appraisal drilling campaign across the TGT and CNV fields, expected to begin late in the third quarter and into the fourth.

The company said success could lead to incremental volumes from 2026 and de-risk further development potential.

Pharos also received Vietnamese government approval for a two-year extension to the exploration period on Blocks 125 and 126, supporting ongoing farm-out efforts.

In Egypt, the East Saad-1X well in El Fayum entered production on 1 July following a commercial discovery earlier in the year.

Seismic processing continued on the North Beni Suef licence, while negotiations to consolidate the El Fayum and NBS concessions under improved production sharing contract terms were progressing.

First-half revenue came in at $65.3m, broadly flat year-on-year, while cash balances rose to $22.6m from $16.5m at year-end.

The company said it remained debt-free, and confirmed capital expenditure guidance of $33m to $40m for the year, with a further $17m expected in early 2026.

Shareholders approved a final dividend of 0.847p per share for 2024, bringing the total payout for the year to 1.21p per share, or $6.5m.

The final dividend would be paid on 18 July.

Pharos also noted that 25% of its second-half entitlement production was hedged at an average floor of $61.30 per barrel and a ceiling of $84.50.

João Saraiva e Silva was appointed as non-executive chair in June, succeeding John Martin.

At 1329 BST, shares in Pharos Energy were up 4.29% at 21.9p.

Reporting by Josh White for Sharecast.com.