Pharos Energy reports $85.5 million in H1 2026 revenue as drilling campaigns advance and Ratio Petroleum acquisition nears completion
Pharos Energy posted group revenue of $85.5 million for the first half of 2026, up 30% from $65.6 million a year earlier, as the independent oil and gas company benefited from stronger commodity prices and active drilling across its Vietnam and Egypt operations. Cash generation also improved sharply, with operating cash flow reaching $34.9 million compared to $16.1 million in H1 2025, and the company ended the period with $45.4 million in cash — while recording a near-breakeven net loss of just $0.4 million.
Pharos Energy posts strong H1 2026 financial results
The numbers behind that headline figure tell an equally encouraging story. Group revenue of $85.5 million was stated before a realized hedging loss of $3.7 million — worth flagging, though it doesn’t change the picture of a company generating significantly more cash than it did twelve months ago.
Cash generated from operations climbed to $50.6 million, up from $31.9 million in H1 2025, and that improvement flowed straight through to the bottom line. The net loss narrowed to just $0.4 million, down from $2.8 million in the same period last year. Cash on hand grew to $45.4 million at 30 June 2026, up from $40.2 million at end of 2025.
Three TGT infill wells and one appraisal well, TGT-18X, were all wrapped up by April 2026, with the TGT campaign collectively contributing 3,800 bopd gross in June.
Higher oil prices and active drilling underpin revenue growth
The biggest single driver of the revenue jump was price. In Vietnam, Pharos’s average realized crude price rose 28% year-on-year to $99.10 per barrel — a figure that already includes premiums over Brent of $5.57 per barrel for the TGT field and $5.83 per barrel for CNV in H1 2026. Those premiums look set to widen considerably: agreed premiums for TGT cargoes from July to October 2026 average $12.26 per barrel, and the CNV September cargo achieved $13.78 per barrel.
Egypt also delivered a strong price performance. The average realized price there rose 31% to $86.36 per barrel, even after discounts to Brent averaging $6.65 per barrel across the El Fayum and North Beni Suef fields.
Group working interest production was broadly flat at 5,650 boepd net — almost identical to the 5,642 boepd recorded in H1 2025. Vietnam production rose to 4,583 boepd while Egypt declined to 1,067 bopd. One additional cash flow boost came from Egypt: Pharos collected $13.7 million in outstanding receivables during the half, cutting that balance to just $1.7 million by 30 June.
Vietnam six-well campaign completed; Egypt drilling program underway
Operationally, the headline event was the conclusion of Pharos’s six-well offshore drilling campaign in Vietnam. Three TGT infill wells and one appraisal well, TGT-18X, were all wrapped up by April 2026, with the TGT campaign collectively contributing 3,800 bopd gross in June. On CNV, an infill well completed in March; appraisal well CNV-5X completed on 30 July and is currently undergoing production testing.
The momentum isn’t stopping there. PetroVietnam approved an additional sidetrack appraisal well, TGT-20X, expected to spud in late September 2026. Pharos plans to draw on supplies from the recently completed campaign, keeping incremental costs relatively contained — around $4 million of the company’s $54 million estimated full-year capital expenditure.
In Egypt, the 2026 six-well drilling program is under way. The first well, Silah 8-2, completed on 9 July; the second, Aboud 1-5, on 9 September. A third well is expected to spud shortly after a second rig mobilizes. Full-year 2026 production guidance was narrowed to 5,300–5,900 boepd from the earlier range of 5,200–6,400 boepd, reflecting stronger Vietnam output and lower-than-expected Egypt production.
Ratio Petroleum acquisition approved by shareholders, pending court sanction
Beyond the operational results, the most significant corporate development was the agreed acquisition of Pharos by Ratio Petroleum. On 24 June 2026, both boards announced they’d reached agreement on the terms of a recommended all-cash acquisition, to be implemented through a court-sanctioned scheme of arrangement.
The process had a competitive twist. Serica Energy announced a competing offer on 26 July 2026, prompting Ratio to respond on 7 August with an increased offer. Serica’s bid subsequently lapsed on 13 August. Pharos shareholders then voted to approve the Ratio scheme at both the court-convened meeting and the general meeting held on 28 August 2026.
Completion still requires regulatory approvals in Vietnam and Egypt, plus formal court sanction at the Sanction Hearing. Both companies are actively pursuing the necessary consents.
Hedging strategy, debt-free balance sheet, and dividend context
Pharos has hedged approximately 58% of its H2 2026 forecast entitlement production through a mix of zero-cost collars, fixed-price swaps, and put options. That portfolio secures average floor and ceiling prices of $60.7 per barrel and $81.5 per barrel respectively, with swap hedges averaging $88.4 per barrel. For H1 2027, around 20% of forecast production is hedged, with a floor of $67.3 per barrel, a ceiling of $85.1 per barrel, and swaps at $79.0 per barrel.
Throughout the period, Pharos maintained a debt-free balance sheet — something CEO Katherine Roe highlighted as giving the company room to reinvest opportunistically, as with the TGT-20X well.
On dividends, the full-year 2025 payout totaled 1.331 cents per share, or $7.4 million in aggregate. The interim tranche of 0.3993 cents per share was paid in January 2026, with the final tranche of 0.9317 cents per share following in July 2026. With the Ratio acquisition still pending, future dividend decisions will hinge on how quickly the remaining regulatory and court conditions get resolved.
Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.
