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Pharos Energy announces 2025 Preliminary Results

25 Mar 2026

A year of delivery and strength

Pharos Energy, an independent energy company with assets in Vietnam and Egypt, has announced its preliminary results for the year ended 31 December 2025.

Katherine Roe, Chief Executive Officer, commented:

'Pharos made significant strides in 2025 to enter 2026 with strong momentum across our portfolio. In Vietnam, we commenced the six-well drilling campaign on TGT and CNV to support current production and unlock incremental volumes from these assets. On Blocks 125 & 126, approval of the two-year extension in June 2025 enabled a renewed and structured process to progress discussions with potential farm-in partners, which continues with active discussions. In Egypt, we were pleased to receive approval from EGPC for the consolidation of our two existing concessions, delivering an immediate uplift in value with 20-year lease extensions and improved fiscal terms. I am delighted that our receivable balance is now at its lowest level since December 2021 at $6.1m, due to the $20 million payment received from EGPC in December, doubling our year end cash balance.

'This stronger balance sheet provides the foundation to continue our track record of delivering tangible shareholder returns, with $6.5m of dividend payments in 2025. Today, the Board has recommended a final dividend for the 2025 financial year of $5.2m, 0.9317 pence per share, subject to shareholders' approval at the Company's 2026 AGM, taking the 2025 full year dividend to 1.331 pence per share, an increase of 10% on the prior year.

'Going into 2026, Pharos is well positioned for continued growth and delivery. With a geographically stable asset base, solid financial performance, and well-protected cash flows, we are well placed to weather challenging macroeconomic conditions. Our majority unhedged position enables us to take advantage of the high oil price environment while pursuing a balanced mix of growth opportunities. We continue to progress our Vietnam drilling programme, which is on track to complete by mid-2026, and look forward to updating the market on the results of these wells in April or early May. In Egypt, the first well on the agreed six-well work programme is expected to commence shortly. On our high impact exploration asset in Vietnam, we look forward to continuing current discussions with a view to securing a partner for Blocks 125 & 126. Additionally, we are progressing a number of opportunities to add scale and materiality to our business, enhancing the existing portfolio. With a strengthened balance sheet, Pharos is well positioned to continue delivering shareholder returns while investing in the next phase of growth.

'I would like to thank all of our stakeholders for their continued support, and I look forward to another year of progress and delivery.'

2025 Operational Highlights

Group working interest 2025 production totalled 5,398 boepd net, in line with guidance of 5,200 - 6,000 boepd:
- Vietnam 4,095 boepd
- Egypt 1,303 bopd
Strong safety record maintained with zero LTIs
Vietnam:
- On TGT & CNV: six-well offshore drilling programme commenced operations on 18 October 2025 consisting of two commitment appraisal wells and four infill wells:
  - TGT infill wells: two infill wells on the H1 and H5 fault blocks completed by year end. The wells were drilled on time, under budget, and are producing as expected. The final infill well on the H4 fault block reached total depth (TD) on 21 March 2026, and is expected to be brought into production in April
  - TGT-18X appraisal well: drilling completed on time and budget with testing underway; update to the market on the results of the testing expected in April or early May
  - CNV infill well: drilling of the CNV-8P infill well completed in mid-March
  - CNV-5X appraisal well: drilling commenced in mid-March and is expected to finish mid-2026
- On Blocks 125 & 126: two-year extension to the Exploration Period to November 2027 granted in June 2025. Discussions continue with potential farm-in partners
Egypt:
- Approval received in September from EGPC Executive Board for the consolidated Concession Agreement, with improved fiscal terms effective from 5 October 2025, the date of full EGPC Board approval
- North Beni Suef (NBS) 3D seismic data processing and interpretation is complete, with a number of targets identified and two wells included in the committed work programme under the consolidated Concession Agreement

2025 Financial Highlights

Group revenue of $114.6m 1,2 (2024: $136.1m 1,2)
Cash generated from operations $85.5m (2024: $89.3m)
Operating cash flow $55.6m 3 (2024: $54.0m)
Cash operating costs 4 of $19.39/bbl (2024: $17.80/bbl)
Net cash 4 as at 31 December 2025 of $40.2m, the Group is debt free (2024: $16.5m net cash 4)
Receivables balance in Egypt at 31 December 2025 of $7.4m following total payments received of $37.7m
Loss for the year of $6.6m (2024: profit $23.6m including net post-tax impairment reversals of $19.9m)

2025 Corporate Highlights

Commitment to shareholder returns continue:
- Sustainable dividend policy delivered with an interim dividend of 0.363 pence per share for the 2024 financial year, totalling $1.8m, being paid on 22 January 2025. The final dividend for the year ended 31 December 2024 of 0.847 pence per share, totalling a further $4.7m, was approved by the shareholders at the Company's AGM in May 2025 and subsequently paid on 18 July 2025
- Returns to shareholders maintained with an interim dividend for the 2025 financial year of $2.2m, 0.3993 pence per share, paid on 21 January 2026

2026 Outlook

Group working interest production guidance increased from 2025 to 5,200 - 6,400 boepd net:
- Vietnam 4,000 - 4,950 boepd
- Egypt 1,200 - 1,450 bopd
Vietnam production:
- TGT & CNV: continuation of six-well drilling programme which is expected to finish by mid-2026
- The four infill wells in the programme are planned to maintain production at 2025 levels. Successes at both appraisal wells, TGT-18X and CNV-5X, could deliver up to a 20% increase in Vietnam production volumes and de-risk additional development opportunities
Vietnam exploration:
- Blocks 125 & 126 formal farm-out process ongoing with discussions continuing; further updates expected by mid-2026
Egypt:
- Drilling rig for El Fayum now secured, with second rig being contracted for North Beni Suef. Preparations underway for the approved budget and work programme of six wells; first well expected to commence drilling shortly
- Parliamentary ratification of the consolidated Concession Agreement expected later in 2026; 5 October 2025 retroactive date applies
Final dividend of $5.2 million, equating to 0.9317 pence per share, to be paid in July 2026, to be proposed for shareholders' approval at the 2026 AGM; total dividend for the year of $7.4 million
With the current volatility in commodity prices, modest hedging has been put in place to protect downside whilst also facilitating taking advantage of the upside
Group cash capex for 2026 is expected to be $50m, of which $11m is for Egypt, and $39m is for Vietnam
On track to achieve our Net Zero interim three-year target (2024-2026) of 5% emissions reduction compared to 2021 baseline