Afentra Reports Robust H1 2025 Results with Strategic Growth in Angola

Afentra H1 2025: Production steady, portfolio expanding, cash flow protected

Afentra’s half-year update is a tidy blend of operational discipline and strategic ambition. The big headlines are a first offshore operatorship in Angola, more equity in its core offshore assets, and onshore licences edging forward. Under the bonnet, production is broadly stable, reserves are growing faster than depletion, and the balance sheet is being managed with care.

There are a few moving parts, but the direction of travel is clear: build a resilient, cash-generative Angolan portfolio with near-term catalysts.

Strategic moves in Angola: operatorship and bolt-on equity

Post period, Afentra signed Heads of Terms for Block 3/24, taking 40% and operatorship. That matters. Operatorship gives Afentra more control over pace, costs and tie-backs to existing infrastructure in Blocks 3/05 and 3/05A. The block is adjacent to those assets, holds five discoveries in the same Pinda reservoir, plus the previously developed Canuku cluster that once did up to 12,000 bopd. If approved in Q4 2025, this looks like a classic short-cycle, low-cost development story.

In June, Afentra also agreed to buy an extra 5% in Block 3/05 and 6.67% in 3/05A from Etu Energias. The effective date is backdated to 31 December 2023, which should reduce cash at completion. Closing is expected in late H2 2025. The deal adds materiality and alignment in the JV, with an immediate uplift to production and reserves on completion.

Onshore, Angola remains a deliberate second leg. KON15 was awarded in February, and the KON4 Risk Service Contract was initialled in June, confirming Afentra as operator with a 35% working interest, with award completion targeted for Q4 2025. KON4 includes the Quenguela Norte field, historically the largest onshore discovery, and the plan is to apply modern data and techniques to redevelop legacy fields and test low-cost exploration ideas.

Operational performance: stable base and strong reserve replacement

H1 2025 gross production across Blocks 3/05 and 3/05A averaged about 21,350 bopd (net 6,348 bopd). Rates stepped up above 23,000 bopd from late June after light well interventions resumed. Post period, July and August averaged 22,172 bopd gross (net 6,583 bopd).

The redevelopment programme is doing its job. Water injection averaged 35,000 bwpd in H1, with upgrades targeting around 85,000 bwpd by year end, and maximum rates over 100,000 bwpd achieved in the half. Ten light well interventions were delivered in H1, a further eight in July and August, and roughly 30 more are planned through year end. Opex remains around $23/bbl and uptime was stable with no major downtime.

Crucially, reserves are keeping pace. Afentra reports a 2P reserve replacement ratio above 140% over the 18 months to 31 December 2024, offsetting roughly 11 mmbo produced. That signals long life and running room, not just harvesting.

Sales, cash and debt: disciplined and de-risked

Two liftings in H1 totalled 0.7 mmbbls at an average realised price of $72.2/bbl, generating $52.0 million of revenue. Adjusted EBITDAX came in at $27.9 million and profit after tax at $5.7 million. A third lifting on 1 July of about 500,000 bbls at $70/bbl added $35.4 million of H2 revenue and cash. Year to date, three liftings total 1.2 mmbbls at an average realised price of $71.3/bbl.

At 30 June, borrowings were $36.3 million and net debt $15.5 million, with total debt to annualised adjusted EBITDAX at 0.7x. After the 1 July lifting, Afentra moved to a pro forma net cash position of $19.9 million, then made an early semi-annual repayment in August that reduced the outstanding RBL balance to $31.5 million. Cash resources at period end were $21.6 million (cash and restricted funds).

Hedging remains sensible. About 70% of 2025 production is hedged via $60-$65/bbl puts, with $80-$89/bbl calls covering 45% of volumes. That protects downside while keeping some upside, and aligns with the capital programme. Note the stock position at end-August was 128,745 bbls, and the company was in an overlift position of 217,000 bbls after the 1 July cargo.

Key numbers at a glance

Net production (H1 2025)	6,348 bopd
Gross production (H1 2025)	\~21,350 bopd
Sales volume (H1 2025)	0.7 mmbbls
Average realised price (H1 2025)	$72.2/bbl
Revenue (H1 2025)	$52.0 million
Adjusted EBITDAX	$27.9 million
Profit after tax	$5.7 million
Opex	\~$23/bbl
Borrowings (30 June)	$36.3 million
Net debt (30 June)	$15.5 million
Cash resources (30 June)	$21.6 million
2P reserve replacement (18 months)	>140%
Planned capital investment programme	$180 million (Net: $54 million)

Positives, watch-outs and why it matters

What looks good

• Operatorship of Block 3/24 at 40% is a step-change in control and value capture, with clear tie-back logic to 3/05 infrastructure.
• Reserve replacement above 140% over 18 months underpins asset longevity and future cash generation.
• Costs are grounded. Opex around $23/bbl and stable uptime put the base in good shape for 2026 drilling and workovers.
• Balance sheet trending the right way. Early debt paydown, net cash post July cargo, and 0.7x debt to annualised adjusted EBITDAX keep risk contained.
• Hedging provides downside protection while preserving some upside. Sensible in choppy markets.
• Onshore Kwanza options (KON4, KON15, KON19) offer short-cycle redevelopment and low-cost exploration potential.

What to keep an eye on

• Approvals still to come. Government sign-off is expected in Q4 2025 for Block 3/24 and KON4.
• Etu Energias acquisition closing. Completion is targeted for late H2 2025; until then the uplift remains prospective.
• H1 cash outflow from operations. Working capital swings matter in lifting-based sales and inventories rose to $24.2 million at period end.
• Admin costs are rising with growth. Net administrative expenditure increased to $7.4 million as the business scales.
• Contingent consideration stands at $25.6 million. It is linked to price and performance, so it will ebb and flow with outcomes.
• Concentration risk. The story is anchored in Angola, which makes execution and local partnerships critical.

Near-term catalysts investors should track

• Next crude cargo lifting of about 400,000 bbls expected late September 2025.
• Completion of the Etu Energias transaction in Q4 2025.
• Formal award of KON4 in Q4 2025 and Block 3/24 award in Q4 2025.
• 2026 drilling and workover programme under preparation, with rig mobilisation targeted for 1H 2026.
• Planned maintenance has been pushed to 2026, reflecting stable operations.

My take: a disciplined build