Nostrum Oil & Gas Reports H1 2025 Financial Results with Stable EBITDA and Increased Production

H1 2025 results: steady EBITDA, bigger volumes despite weaker Brent

Nostrum Oil & Gas has posted a solid set of first-half numbers for 2025. Revenue was US$64.1 million, broadly flat year on year against US$65.3 million, but crucially EBITDA held steady at US$22.4 million with a 35.0% margin. That resilience came in spite of a 16% drop in the average Brent price to US$71.92/bbl and ongoing natural decline at the Chinarevskoye field.

The story under the bonnet is all about throughput and costs. Titled production rose 39% to 16,974 boepd (barrels of oil equivalent per day), total processed volumes jumped 65% to 24,619 boepd, and operating expenses per barrel of processed volumes fell 41% to US$4.4. That combination cushioned the price impact and kept margins intact.

Key numbers at a glance

Metric	H1 2025	Comparator
Revenue	US$64.1 million	H1 2024: US$65.3 million
EBITDA (non-IFRS)	US$22.4 million	H1 2024: US$22.3 million
EBITDA margin	35.0%	H1 2024: 34.2%
Operating expense per barrel of processed volumes	US$4.4	H1 2024: US$7.6
Net operating cash flow (pre one-offs)	US$6.2 million	H1 2024: US$4.2 million
Unrestricted cash	US$135.9 million	31 Dec 2024: US$150.4 million
Restricted cash (incl. DSRA)	US$26.1 million	31 Dec 2024: US$25.9 million
Net debt	US$473.1 million	31 Dec 2024: US$404.2 million
Average titled production	16,974 boepd	H1 2024: 12,220 boepd
Total processed volumes	24,619 boepd	H1 2024: 14,919 boepd
Average sales volumes	15,555 boepd	H1 2024: 10,475 boepd
Average Brent price	US$71.92/bbl	H1 2024: US$83.70/bbl

Notes: EBITDA is profit before tax and non-cash items as defined by the Company. DSRA is the debt service retention account. boepd means barrels of oil equivalent per day.

What drove the performance: volumes up, costs down

Third-party processing and a shift toward gas

Two operational levers did the heavy lifting. First, throughput: Nostrum processed more third-party feedstock from Ural Oil & Gas LLP, supported by a new processing agreement that runs until May 2031. Second, the Company benefited from well No.301 (onstream since May 2024) and targeted workovers on Chinarevskoye wells.

The product mix continues to skew towards gas and LPG. Year on year, dry gas volumes rose 62.4% to 9,735 boepd and LPG climbed 59.6% to 3,165 boepd. Crude oil was up 3.5% to 2,476 boepd, while stabilised condensate fell 13.6% to 1,598 boepd. Gas-heavy output is less exposed to oil price swings and supports consistent plant utilisation, which is clearly a strategic focus.

Opex reductions underpin margins

Operating expenses per barrel of processed volumes dropped 41% to US$4.4 from US$7.6. That is a meaningful efficiency gain and a key reason EBITDA held at US$22.4 million with a 35.0% margin despite weaker pricing. Management also emphasised maximum facilities uptime, which helps absorb fixed costs and stabilise earnings.

Cash, debt and liquidity: the fine print

Operating cash generation improved, with positive net operating cash flows of US$6.2 million before one-off items, up from US$4.2 million. Working capital timing – namely sales receivables linked to crude and condensate shipments – weighed on reported cash flows.

After one-off payments of US$15.5 million under the management incentive plan and limited capex on Chinarevskoye and Stepnoy Leopard, unrestricted cash reduced by US$14.5 million in the half to US$135.9 million. Restricted cash stood at US$26.1 million.

Net debt increased to US$473.1 million at 30 June 2025. The bridge is worth noting: US$27.9 million of interest capitalised on Senior Unsecured Notes, US$33.8 million fair value amortisation, an US$8.3 million delayed coupon on SSNs and SUNs, and the lower unrestricted cash balance. This was partially offset by the cancellation of US$5,628,000 of Senior Secured Notes and US$9,629,836 of Senior Unsecured Notes in April 2025.

My take: liquidity looks adequate for near-term operations, but leverage remains elevated and moved higher in the period. The delayed coupon referenced in July press releases is a watch item for bondholders and equity holders alike.

Operations update: drilling at Chinarevskoye and FDP for Stepnoy Leopard

The 2025 limited-scale drilling programme targets the most economic subsurface opportunities while meeting licence obligations. In August 2025, Nostrum spudded well Ch-116_1 at Chinarevskoye, initially targeting oil in the Mullinski reservoir before converting the well to a water-injector. Optimised workovers continue to slow decline at this mature field.

At the Stepnoy Leopard Fields, a phased full-field development plan received approval from Kazakhstan’s Ministry of Energy in April 2025 – a key milestone that should enable staged capital deployment. Design and engineering work is progressing alongside limited procurement to stay compliant with licence commitments.

Third-party processing remains a strategic pillar. The multi-year extension with Ural O&G supports cash flows, keeps the gas plants busy, and aids the efficient development of the Rozhkovskoye field. In short, Nostrum is positioning itself as a regional processing hub, which helps offset legacy decline in its own upstream base.

HSE and ESG: safety steady, TRIR higher

There were zero fatalities and a zero Lost Time Injury Rate in H1 2025, which is good to see. The Total Recordable Incident Rate rose to 1.3 from 0.64, so there is room for improvement even with overall safe operations. Air emissions were 2,236 tonnes against 5,188 tonnes permitted for 2025, indicating headroom under the environmental cap.

Why this matters for shareholders

Positives:

• EBITDA and margins held firm at US$22.4 million and 35.0% despite a weaker oil price backdrop.
• Throughput growth – titled production up 39% and processed volumes up 65% – demonstrates plant reliability and a growing role as a processor.
• Costs are moving the right way, with opex per processed barrel down 41% to US$4.4.
• Multi-year Ural O&G agreement to May 2031 underpins utilisation and tolling income visibility.
• Stepnoy Leopard FDP approval gives a clearer path to unlocking the asset over time.

Watch-outs:

• Net debt rose to US$473.1 million, and a delayed US$8.3 million coupon highlights ongoing financing sensitivity.
• Chinarevskoye remains in natural decline, making execution on workovers, selective drilling and third-party volumes critical.
• TRIR increased to 1.3 – not alarming, but it bears attention.
• Cash reduced by US$14.5 million in H1 after one-offs; sustained free cash flow depends on continued high uptime and disciplined capex.

What to watch in H2 2025

• Facility uptime and third-party feedstock volumes – are processed volumes sustained near H1 levels?
• Progress on Ch-116_1 and further Chinarevskoye workovers – do they stabilise titled production?
• Stepnoy Leopard workstreams – tangible milestones on engineering and procurement under the phased FDP.
• Debt service updates and net debt trajectory – any movement on coupons, capitalised interest, or note redemptions.
• Realised pricing mix – gas and LPG volumes are rising; watch how that feeds through to revenue and margins.

Overall, this is a quietly encouraging half. Nostrum is proving the value of its processing hub strategy, squeezing costs, and keeping EBITDA steady in a tougher pricing environment. The balance sheet remains the key swing factor, but operational momentum and the long-dated Ural O&G agreement give the Company a fighting chance to create value from here.