Kistos announces interim results for the six months to 30 June 2025 & FID of Hole House Storage

Kistos, an independent energy company focused on generating value across the upstream and midstream markets, has provided its interim results for the period to 30 June 2025.

The first half of 2025 has been a period of significant and transformational investment for Kistos. The Company has delivered on its commitment to achieve first oil from the Balder FPSO in June, successfully meeting the key operational milestone set out at the start of the year. As such, the Group remains firmly on track to meet its full-year production guidance of 8,000 - 9,000 boepd.

The hybrid bond structure, designed from the outset to protect Kistos against delays in the commissioning of the FPSO, has proved highly effective, ensuring that financial outcomes were directly aligned with project delivery. These achievements represent a pivotal shift, positioning the Group for substantial increases in Revenue, EBITDA, and Cash Flow in the periods ahead.

In September 2025, the Group reached a Final Investment Decision to proceed with the Hole House gas storage project. Supported by third-party financing on attractive terms, the recommissioning will increase working capacity by 63% and further strengthen the UK's energy resilience and flexibility.

 Norway Operations

• Net production for H1 2025: 2,800 boepd (H1 2024: 2,800 boepd).
• A Final Investment Decision was taken on Balder Phase VI to develop around 1.5 mmboe (net).
• Production efficiency at Balder FPU and Ringhorne Platform: 91% (versus planned: 86%).
• Jotun FPSO departed Rosenberg-Worley yard in March, achieved first oil in June, and started up the first of 14 Balder Future wells in July.
• Ramp-up of Balder Future wells was concluded in September 2025, with peak production of approximately 9,000 boepd (net) and total area production exceeding 11,000 boepd (net).
• COSL Pioneer rig began drilling six wells for Balder Phase V, targeting 3.0 mmboe (net). First multi-lateral well completed by end of June with First Oil expected in Q4 2025. Two new wells were also drilled from the Ringhorne platform.

UK Operations

• Net production from Greater Laggan Area: 2,500 boepd (H1 2024: 3,400 boepd), in line with expectations.
• ·Victory first gas remains on schedule by end-2025, and increased throughput at the Shetland Gas Plant is expected to deliver significant OPEX savings for the Greater Laggan Area partners.
• At the Hole House gas storage site, a Final Investment Decision was taken in September 2025 to proceed with recommissioning, underpinned by favourable economics and third-party financing secured on attractive terms. This decision will increase working capacity by 63%.

Netherlands Operations

• Q10-A production was significantly lower during the period, 900 boepd lower than in H1 2024 (2,200 boepd).
• Aside from natural decline, a planned shutdown of the TAQA-operated P15-D platform overran for longer than expected (98 vs 35 days planned), although this will be partially offset by flush production post start-up in H2.

Corporate & Financial

• Capital investment of $70 million in Balder Future and Balder Phase V, unlocking a high-value asset for the Company with low unit cost ~$5/boe.
• TotalEnergies' planned sale of its remaining 40% stake in West of Shetlands assets to Prax Upstream Limited did not complete due to Prax's parent company entering administration; assets remain with TotalEnergies.
• Total cash at period end: $104 million, including restricted funds of $20 million.
• Adjusted net debt at period end: $86 million (30 June 2024: $89 million). See notes to the accounts for further details.
• Hybrid bonds linked to Jotun FPSO milestones were cancelled for nil consideration; some bondholders exercised rights to acquire Kistos warrants (exercisable at a price of 385 pence per share).

6 months ended 30 June 2025

1. Total production rate includes gas, oil and natural gas liquids and is rounded to the nearest 100 barrels of oil equivalent per day. Sales and production volumes are converted to estimated barrels of oil equivalent (boe) using the conversion factors in the Appendix to the Interim Financial Statements.

2. Non-IFRS measure. See note 2.2.1 to the Interim Financial Statements for definition and reconciliation to the nearest equivalent IFRS measure.

Andrew Austin, Executive Chairman of Kistos, commented:

"The Group is on track to meet our full-year production guidance of 8,000-9,000 boepd whilst upholding strong operational performance and unlocking the full potential of our existing asset base to deliver long-term value for shareholders.

The completion of Balder Future marks a pivotal event for Kistos. It diversifies our production profile and rebalances our hydrocarbon mix, while also releasing capital to support growth across other areas of the business. Progress in Norway remains strong, with Balder Phase V achieving successful completion of its first well and the positive investment decision on Balder Phase VI both occurring during the first half of the year.

In the UK, we look forward to the start-up of the Victory field. This development is anticipated to realise significant operating expenditure savings for the GLA partners as throughput at the Shetland Gas Plant will increase substantially. I am also pleased to confirm that the Group has taken a Final Investment Decision to proceed with the Hole House gas storage project. This milestone, supported by third-party financing on attractive terms, reflects our commitment to enhancing the UK's energy resilience and flexibility.

Kistos remains focused on disciplined execution, operational excellence, and continues to seek out organic and inorganic growth opportunities. We are committed to ensuring that any transaction we undertake, either in or outside of the North Sea, offers meaningful near-term value creation for shareholders, underpinned by a prudent risk profile. As we continue to evaluate opportunities across the value chain, we remain centred on maintaining financial strength and operational reliability."

Original announcement link

Source: Kistos