Kistos profits surge as Oman deal adds another leg to growth

Kistos delivers a sizeable first-half uplift

Kistos Holdings PLC has reported a sharp improvement in first-half financial performance, driven by higher Norwegian production and strong commodity prices.

Actual revenue for the six months to 30 June 2026 rose to $211.9 million, from $87.9 million a year earlier. EBITDA increased to $154.0 million from $23.7 million, while the group moved from a $12.3 million loss to a $14.3 million profit.

The independent energy company also completed the acquisition of its interest in Oman Blocks 3 and 4 on 14 September 2026, after the reporting period. Completion of the separate Block 9 transaction is expected during the second half.

That timing matters because Kistos has placed considerable emphasis on pro forma figures. These show what the results might have looked like if both Oman acquisitions had completed on 1 January 2026.

On that basis, production was 20,800 barrels of oil equivalent per day, or boepd, revenue was $290.2 million and EBITDA was approximately $205.0 million.

The key Kistos figures

Metric	H1 2026 actual	H1 2025 actual	H1 2026 pro forma
Production	11,800 boepd	6,200 boepd	20,800 boepd
Revenue	$211.9 million	$87.9 million	$290.2 million
EBITDA	$154.0 million	$23.7 million	$205.0 million
Average realised oil price	$97 per barrel	$67 per barrel	$98 per barrel
Average realised gas price	$82 per boe	$77 per boe	$82 per boe
Unit operating cost	$17 per boe	$42 per boe	Not disclosed
Adjusted net debt	$22.6 million	$86.0 million	Not disclosed

EBITDA is earnings before interest, tax, depreciation and amortisation. It is a commonly used measure of operating performance, but it is not defined under International Financial Reporting Standards and should not be viewed as a substitute for statutory profit.

The statutory numbers are nevertheless clearly stronger. Operating profit reached $102.3 million, compared with an operating loss of $17.5 million in the previous first half. Profit before tax was $80.9 million, although a $66.5 million tax charge reduced the final profit to $14.3 million.

Basic earnings per share were $0.17, against a loss per share of $0.15 in H1 2025.

Norway did the heavy lifting

Norway was the standout contributor. Net production from the Balder area increased to 8,500 boepd from 2,800 boepd, helped by three new Balder Phase V wells and production efficiency of 94% across the relevant facilities.

Norwegian EBITDA rose to $119.9 million from $10.9 million, accounting for most of the group's improvement.

The remaining two Balder Phase V wells started production in July. Drilling is also under way on the Balder Phase VI trilateral well, which is targeting approximately 1.5 million boe net to Kistos. First oil is scheduled for December 2026.

Meanwhile, the Balder Next New Wells project was sanctioned in June. It involves seven wells targeting approximately 8.6 million boe net, with start-up expected by the end of 2027.

Kistos says the project has a breakeven cost of approximately $30 per boe and a projected rate of return above 35%. These are project estimates rather than guaranteed outcomes, but they suggest the investment could remain commercially attractive at oil prices well below those achieved during the half year.

Oman changes the scale of the group

The Oman assets contributed $51 million of pro forma EBITDA during the period. Combined with the Norwegian uplift, that explains the substantial gap between Kistos's actual and pro forma results.

The acquisition gives Kistos a 20% non-operated working interest in Blocks 3 and 4 and a 5% non-operated interest in Block 9. The original Oman acquisition and 2025 trading update provides useful context on the transaction.

Completion of Blocks 3 and 4 removes one significant transaction milestone. Block 9 remains outstanding, although management continues to expect completion during the second half of 2026.

Following the Balder investment decision, Kistos reported pro forma proved plus probable, or 2P, reserves of 49.2 million boe. A further 52.4 million boe was classified as 2C contingent resources, based on company estimates.

Management reiterated full-year pro forma production guidance of 19,000 to 21,000 boepd.

Lower costs and stronger cash generation

Unit operating costs fell to $17 per boe from $42 per boe. Higher production helped spread costs across more barrels, while the Victory field tie-back reduced the Greater Laggan Area's share of Shetland Gas Plant operating costs.

Net cash generated from operating activities increased to $132.3 million from $22.5 million. Capital expenditure was $53.9 million, down from $69.8 million, and was directed almost entirely towards the Balder development programme.

Adjusted net debt fell to $22.6 million from $86.0 million. However, investors should handle this measure carefully because it includes restricted funds, acquisition prepayments and current tax receivables alongside cash.

At the reporting date, Kistos held $128.1 million of unrestricted cash and $395.4 million of restricted funds. Its stated cash and near-cash measure was $259 million, including $95 million held in escrow for the Oman acquisition and a $36 million Norwegian tax rebate expected in December 2026.

Refinancing brings breathing room at a price

Kistos issued a new $300 million senior secured bond carrying a 9.875% coupon and maturing in May 2030. The proceeds were principally used to repay the Norwegian subsidiary's existing bonds in July.

This extends the maturity profile and moves debt to the parent company level, improving financial flexibility. The trade-off is a meaningful cash interest cost, with the bond coupon close to 10%.

The group also drew $20 million from its credit facility during the period, although this was repaid in August. Kistos reported that it complied with the new bond's liquidity and leverage covenants at 30 June.

What investors should watch next

There is plenty for shareholders to welcome: actual production nearly doubled, revenue more than doubled, unit costs fell sharply and operating cash generation strengthened. Oman adds another material source of earnings, while the Balder programme offers a visible development pipeline.

The main caveat is that the headline pro forma figures are not the same as reported performance. They assume ownership of the Oman assets from the start of the year and use draft financial information supplied by the seller.

Kistos is also fully unhedged. That worked strongly in its favour during this period, but it leaves future revenue and cash generation directly exposed to movements in oil and gas prices.

Other points to monitor include completion of Block 9, delivery of first oil from Balder Phase VI, progress on the seven-well Balder Next programme and the group's substantial tax and decommissioning obligations. The current tax liability was $142.2 million, while abandonment provisions stood at $267.3 million.

The first-half numbers show a business operating at a much larger scale than a year ago. The next test is whether Kistos can convert that expanded portfolio into sustained cash generation while managing acquisition integration, debt costs and commodity-price volatility.

The full figures and accompanying notes are available in the original company announcement.