Enwell Energy 2025 results: a brutal year driven by Ukraine licence suspensions
Enwell Energy’s 2025 numbers are rough reading, but the reason is very clear. This was not a normal operational wobble or a commodity price problem. The business was hit by the suspension of its MEX-GOL, SV and VAS production licences, on top of the continuing war in Ukraine.
The result was a collapse in output, sales and profit. Revenue fell 92% to $3.3 million, the group swung from a $23.7 million profit to a $4.5 million net loss, and there is currently no production from those suspended fields.
| Key number | 2025 | 2024 |
|---|---|---|
| Revenue | $3.3 million | $44.9 million |
| Gross profit | $1.2 million | $28.2 million |
| Operating result | $1.5 million loss | $29.1 million profit |
| Net result | $4.5 million loss | $23.7 million profit |
| Production volumes | 48,962 boe | 722,753 boe |
| Average daily production | 1,865 boepd | 2,288 boepd |
| Cash at 31 December | $97.1 million | $99.4 million |
| Cash at 8 May 2026 | $92.0 million | Not disclosed |
Why Enwell Energy production and revenue collapsed in 2025
The production numbers need a bit of unpacking. Average daily production was 1,865 boepd, down from 2,288 boepd. Boepd means barrels of oil equivalent per day – a standard way of combining gas and liquids into one measure.
That daily decline looks bad, but the annual production collapse is far worse. Total production volumes fell 93% to 48,962 boe because the fields were producing for only a fraction of the year. MEX-GOL and SV produced for 23 days in 2025 versus 356 days in 2024, while VAS produced for 58 days versus 143 days in 2024.
That is the key point for investors. The company did not just have weaker wells. It lost the ability to operate for most of the year.
Since 1 March 2025, there have been no hydrocarbon sales at all from the MEX-GOL, SV and VAS production licences. There was also no LPG production in 2025 because of a delay in renewing the LPG production licence.
Ukraine regulatory action is now the core investment risk for Enwell Energy
The biggest issue here is not oil and gas prices. It is regulatory risk in Ukraine. On 15 November 2024, the State Geologic and Subsoil Survey of Ukraine suspended the MEX-GOL, SV and VAS production licences for ten years, effective from 8 October 2024.
Enwell challenged those suspensions in the Ukrainian courts and initially got interim rulings that temporarily lifted them. But those rulings were overturned in January 2025 for MEX-GOL and SV, and in February 2025 for VAS. That is why all field operations on those licences are now suspended.
The company has now escalated matters. In August 2025, it started arbitration proceedings against Ukraine under the bilateral investment treaty between the UK and Ukraine, through the International Centre for Settlement of Investment Disputes. In plain English, it is using an international legal route to seek damages, licence reinstatement and costs.
This matters because the investment case has shifted. For now, Enwell is less a production recovery story and more a legal and political one. Until the licence issue is resolved, the main assets are effectively frozen.
Cash is Enwell Energy’s big strength, but the auditor warning should not be ignored
The clear positive is the balance sheet. Cash and cash equivalents were $97.1 million at 31 December 2025 and $92.0 million at 8 May 2026. For a company generating almost no revenue, that is a serious financial cushion.
The group also has no external borrowings and says its limited development programme for the rest of 2026 and 2027 should be funded from existing cash resources and operational cash flow. Annual running costs are stated to be less than $8 million, and management says those are currently covered by interest income from its cash pile.
That said, investors should not gloss over the auditor’s wording. The auditor’s report was unqualified, but it included a material uncertainty regarding the group’s ability to continue as a going concern. That sounds alarming, but in context it is driven by war and regulatory uncertainty rather than an immediate cash crunch.
Directors say they modelled even a worst-case scenario with zero production and still believe the group has enough liquid resources for the foreseeable future. I think that is credible based on the cash balance, but the warning still matters because the operational outlook is not in the company’s control.
SC exploration licence is the one operational bright spot in the 2026 outlook
There is one area where Enwell is still moving forward: the SC exploration licence. Unlike the suspended production licences, SC is not suspended, and development planning is continuing.
The company is planning the SC-5 exploration well and new gas processing facilities, while also installing temporary gathering, separation and compression equipment at the SC-4 well site. The idea is to separate gas and condensate at SC-4, compress the gas on site, then truck it to the group’s existing processing facilities at MEX-GOL and SV for treatment and sale.
That is not a full restart of the business, and it is not guaranteed. But it is at least a practical route to some limited production later in the year, which the chief executive said he hopes to establish. For investors, SC is currently the only visible operational upside.
Other important details from the Enwell Energy annual results
- Average realised gas prices in Ukraine rose to $377/Mm3 from $318/Mm3, which helped a bit, but nowhere near enough to offset lost volumes.
- Average realised condensate prices fell to $63/bbl from $101/bbl, while average realised oil prices were $64/bbl.
- Administrative expenses rose to $7.5 million from $6.2 million, mainly because of higher legal costs.
- The group generated negative cash from operations of $7.7 million, but still reported a slightly positive net cash inflow from operating activities of $0.08 million thanks largely to $9.2 million of interest received.
- In December 2025, Russian military drones damaged gas processing facilities at the VAS field. No casualties were reported because the site had been mothballed.
What Enwell Energy shareholders should take from these 2025 results
This is a bad set of results, and there is no point dressing it up. Revenue, profit and production all fell off a cliff, and that is a direct consequence of licence suspensions and the war in Ukraine.
But it is not a balance sheet crisis. Enwell still has a lot of cash, no meaningful debt pressure, and enough financial muscle to wait, fight the legal case and keep the SC project moving. That makes the company resilient, even if it does not make it low risk.
My view is simple. The downside is obvious: the core producing assets are shut, the timeline for resolution is not disclosed, and geopolitics now dominates the story. The upside is also obvious: if licences are reinstated, Enwell has the assets, the cash and the infrastructure to recover far faster than the 2025 income statement suggests.
For now, though, this remains a patience test. Investors are not really buying current earnings. They are buying legal optionality, operational survivability and the hope that SC can provide a modest bridge until the bigger dispute is resolved.
