Prospex Energy swings to profit in H1 2026 as Italian and Spanish assets deliver higher cash flow and net asset value reaches £23.3 million
Prospex Energy flipped from a £180,101 loss to a £131,941 profit in the first half of 2026. That’s a swing of just over £312,000 in twelve months — and it didn’t happen by accident. The AIM-quoted investment company published unaudited interim results showing net asset value climbing from £22.9 million at end-2025 to £23.3 million by 30 June 2026, as its producing assets in Italy and Spain pushed out rising cash flow across the six-month period.
Profit reversal and key financial results
Several things moved at once to make this happen. A £628,789 unrealized gain on financial assets held at fair value was among the bigger contributors — a revaluation of the company’s underlying investment vehicles based on forward European natural gas prices and exchange rates as of 30 June 2026. A year earlier, those same assets produced an unrealized loss of £32,715, making the reversal meaningful on its own.
Net asset value — shareholder equity — rose by £363,519 over the six months, landing at £23,303,440 at the reporting date, up from £22,939,921 at year-end 2025.
Both producing assets are generating increasing cash flow, one of them now running independently, and the balance sheet is stronger with cash grown significantly.
Cash improved sharply: Prospex held £524,643 at 30 June 2026, compared with just £38,935 at end-2025. Non-consolidated investment vehicles added another £327,368 on top of that, and the company says those vehicles have enough funds to keep operating and cover known future capital costs.
Causes: Rising production revenue and completed fundraising
The Italian Selva Malvezzi asset did a lot of the heavy lifting. The Podere Maiar-1 well produced 5.28 MMscm net to Prospex’s 37% interest during the period, sold at an average realized price of €0.46 per standard cubic meter — translating into €2.41 million in net revenue to the company’s investments, supported by favorable European natural gas prices that fed directly into asset revaluations.
Spain’s El Romeral had a rougher start but found its footing. The gas and power plant came back online in January 2026 after a rental transformer was installed, and from there, good well management stretched daily generation from around four hours to roughly 16 hours per day. Higher output combined with strong wholesale electricity prices drove consistently increasing revenue through the reporting period.
Prospex also wrapped up its Convertible Loan Note issuance in March 2026, raising approximately £2 million — well past the original £1.6 million target. Of that, £1.37 million in cash landed during the period, accounting for a significant portion of the cash position improvement versus year-end 2025.
Administrative expenses did go up, rising by £250,352 to £881,156 against £630,804 in H1 2025. Worth noting: £195,686 of that increase was non-recurring — management transition costs of £89,052, debt-raise costs of £69,155, and foreign exchange losses and timing differences totaling £37,479.
Effects: Self-sufficient operations and post-period milestones
Things kept moving after the period closed. The most operationally notable development at El Romeral was installation of a permanent transformer post-period, replacing the rental unit and cutting operating costs. Tarba Energia, the El Romeral operator, has run without any funding support from Prospex since July 2026 — a real shift for a company of Prospex’s size.
At Selva Malvezzi, Italy’s Ministry of Environment and Energy Security declared the Environmental Impact Assessment admissible after the period end. The EIA covers plans to drill four new wells within the production concession in the Po Valley Basin, and admissibility kicked off a standard 60-day public observation window before the assessment can move forward.
A new 12-month gas supply agreement with Hera Trading was signed post-period, covering gas from Selva Malvezzi starting 1 October 2026. High European gas prices contributed to record gas sales revenue at the asset in August.
Background: Portfolio expansion and strategic review
Tom Reynolds took over as CEO on 1 February 2026, stepping in for Mark Routh. One of his first moves was a detailed review of the company’s asset portfolio and corporate strategy, with initial findings presented at the AGM in June and each asset given what the company calls a clear value development pathway.
Prospex’s Polish subsidiary, PXEN Tatra, was awarded two new licenses during the period. The San license covers shallow Miocene gas prospectivity, while the Dunajec license includes both Jurassic oil potential and the shallow Miocene gas play, and contains an undeveloped oil discovery called Mniszow. The company has been working through historical license data focused on Mniszow and is exploring development options for the field as an oil producer.
At El Romeral, Prospex agreed a strategic collaboration with the IMMAGE scientific drilling project — a land-to-sea initiative investigating Mediterranean-Atlantic gateway exchange. IMMAGE will contribute up to US$1.5 million toward coring and logging operations in a subset of El Romeral’s planned wells, while Prospex gets access to geological data and international research visibility at no extra cost.
What the H1 2026 results add up to
Prospex Energy goes into the second half of 2026 in noticeably better shape than it started the year. Both producing assets are generating increasing cash flow, one of them now running independently, and the balance sheet is stronger with cash grown significantly. Post-period developments in both Italy and Spain point toward continued progress.
The £131,941 profit is modest on paper. But the direction matters. Revaluation gains, steady Italian gas production, a recovering Spanish power plant, a completed fundraise, new Polish licenses, and a fresh strategic review all landed in the same six-month window. Whether that holds through H2 2026 will depend partly on European energy prices — something Prospex can watch closely but can’t control.
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.
