REG - Capricorn Energy PLC - Half-Year Report Announcement
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RNS Number : 7840Z Capricorn Energy PLC 18 September 2025
FOR IMMEDIATE RELEASE 18 September 2025
CAPRICORN ENERGY PLC ("Capricorn" or "the Company")
Half-Year Report Announcement
Randy Neely, Chief Executive, Capricorn Energy PLC said:
"Capricorn delivered solid operational performance during H1 2025, with the
Company on track to achieve the mid-point of our annual production guidance.
This performance reflects our ongoing commitment to operational and financial
discipline as we pursue long-term value creation for shareholders.
Significant progress has been made towards unlocking value from our Egypt
portfolio, having achieved a number of key milestones for increased investment
in country. Crucial groundwork has been laid by the Egyptian General Petroleum
Corporation's (EGPC's) approval of the amendment and consolidation of eight of
the Company's 50% owned concession agreements into a new, single integrated
concession agreement, pending Egyptian Parliamentary ratification which is
expected later this year. In return for a modernisation payment paid in
instalments, improved commercial terms in the new concession agreement support
material investment which should unlock significant contingent resources and
could increase future production and substantially increase reserves through
economic extensions and investment.
We have received regular payments to date against a receivables balance which
has remained stable and we anticipate the receipt of at least $90m in H2 2025,
based on the most recent guidance from EGPC. We continue to invest in the
asset base and we are actively working with EGPC to ensure that collections
keep pace with our increasing investments in Egypt.
Operationally, the Company and its partners prioritised fulfilling its
outstanding exploration commitments in H1 2025. Having encountered
hydrocarbons in all three exploration wells drilled in the North Um Baraka
(NUMB), West El Fayoum (WEF) and South East Horus (SEH) concessions, we are
pleased to report that the joint venture (JV) elected to test two wells to
evaluate commerciality, with results expected in September. With these
exploration wells, our financial commitments will be fully met on SEH and WEF,
with only ~$750k remaining on NUMB. A fourth rig was contracted in April, and
in the second half of the year, we anticipate drilling 15 development wells,
all focused on liquids in the Badr El Din (BED) area, to deliver our planned
drilling target of 22 development wells during 2025.
We remain focused on growing cash flow through diversification and expanding
our operations. Outside of our Egypt portfolio, the active evaluation of
M&A opportunities in the UK North Sea and in the MENA region continues
against a strict set of commercial and strategic criteria. We are well
positioned for growth and look forward to updating the market on our efforts."
H1 2025 Financial and Operational Highlights
Ø Revenue in Egypt of $59m with a realised oil price of $73.6/bbl and gas
price of $3/mscf
Ø Increased investment programme bolstered by EGPC's approval to consolidate
eight of the Company's existing Egyptian concession agreements into a new,
single integrated concession agreement (including improved commercial terms
and a refreshed primary development term), as well as an agreed payment plan
Ø Cash collections of $61m in Egypt
Ø Egypt receivables of $172m at 30 June 2025
Ø Operating costs of $5.1 per boe on a working interest (WI) basis
Ø Balance sheet: Group cash of $96m, net cash $32m after debt
Ø Exploration capex of $8m; development and production capex of $19m
Ø Seven development wells drilled; two Abu Roash G (ARG) targeted wells on
the Alam El Shawish West (AESW) concession and five ARG wells in BED. In
April, a fourth rig was added to accelerate exploration drilling prior to
licence expiry across the exploration concessions
Ø WI production averaged 20,342 boepd, tracking slightly above the mid-point
of 2025 guidance of 17,000-21,000 boepd comprising 43% liquids
2025 Outlook
Ø On track to deliver FY25 production guidance of 17,000-21,000 boepd with
year-to-date production averaging 19,994 boepd to 31 August 2025 comprising
42% liquids
Ø Full year forecast net capital expenditure of $75-85m
Ø Operating costs remain within guidance forecast of $5-7 per boe
Ø Egyptian Parliamentary ratification of the integrated concession agreement
expected in 2025
Ø Payments expected in H2 2025 of at least $90m based on EGPC's payment plan
Ø Drilling of 15 development wells forecast in second half of 2025, all
focused on the BED area, targeting liquids. Work programme is expected to be
attributed against the commitments that the Company will be required to fulfil
as part of the integrated concession agreement
Ø Continue to actively evaluate opportunities to create shareholder value in
the UK North Sea and MENA region
Enquiries to:
Analysts / Investors
Nathan Piper, Commercial Director Tel: 0131 475 3000
Media
Diana Milford, Corporate Affairs Tel: 0131 475 3000
Georgia Edmonds / Violet Wilson / Fergus Young, Camarco Tel: 0203 757 4980
Presentation
The results presentation slides will be available on the website from 09:00
BST.
Analyst conference call
You can listen to the results presentation by dialling in to a conference call
5-10 minutes prior to 09:00 BST using the below dial-in-details. Analysts who
wish to ask a question should use the conference call facility.
Dial-in Details:
United Kingdom (Local): +44 (0) 33 0551 0200
Access code: Quote "Capricorn" when prompted by the operator.
Analyst and institutional investor webcast
A live webcast of the presentation including Q&A will be held today at
09.00 BST for investors and analysts and will be available via our website at
https://www.capricornenergy.com/ (https://www.capricornenergy.com/) or on
https://brrmedia.news/CNE_HY25 (https://brrmedia.news/CNE_HY25) . This will be
available for playback after the event.
Retail investor webcast
A live webcast for retail investors will be held today at 12:00 BST. Questions
can be submitted pre-event via your Investor Meet Company dashboard up until
09:00 BST, or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add to meet
Capricorn via:
https://www.investormeetcompany.com/capricorn-energy-plc/register-investor
(https://www.investormeetcompany.com/capricorn-energy-plc/register-investor) .
Corporate overview
In May, EGPC approved new concession agreement terms which, following the
conclusion of customary parliamentary ratification expected later this year,
will create a catalyst for development activity in lands previously impacted
by licence expiry and commercial terms. The new terms will consolidate eight
of Capricorn's 50% owned Egyptian concessions into a single integrated
concession, with an increased footprint covering field extension
opportunities, materially improving the Company's cost recovery, profit share
and extending the overall contract life to potentially 2045.
The improvement in terms is a catalyst for the Company, boosting the economics
of individual well opportunities, underpinning long term investment across the
asset base and adding reserves. Capricorn has been working with our partner
and operator, Cheiron, (the Operator) to ensure the sequencing of wells across
the four active rigs is consistent with plans to prioritise high value
liquids. At current levels of rig activity, exploration activity will also be
stimulated by this new concession agreement with the addition of two new
exploration areas. Furthermore, the JV partners are evaluating the opportunity
for exploration activity across their existing development leases, with the
benefit of recently reprocessed seismic data.
New concession terms are also being pursued on AESW; improvement in terms here
may also create a similar catalyst for sustained investment and improved value
for all partners.
Work programme costs across the existing development concessions in the first
half of 2025 were below budget due to changes to operational and project
scheduling and cost savings. Correspondingly, we have slightly reduced our
total net capex spend forecast to $75-85m. Capricorn will continue to actively
manage investment in Egypt against collections and funds available in-country,
and exclusive of any outstanding exploration commitments.
Reducing the Group's Egypt receivables position continues to be a key
strategic priority. At $172m as of H1 2025, the receivables position has
improved over year end 2024. Since 30 June 2025, Capricorn has received $37m
of the minimum $90m expected to be collected in H2. At 31 August 2025, overall
accounts receivable had reduced to $160m, with further improvement expected by
year end.
Egypt operations
Operationally, our ability to sustain and grow production in Egypt remains a
key focus. WI production for H1 2025 in the Western Desert averaged
approximately 20,342 boepd (43% liquids), tracking slightly above the
mid-point of our full year guidance range. We are working closely with the
Operator to prioritise production opportunities including restarting
high-graded shut-in wells, identifying additional perforation opportunities,
and optimising the development well sequence to accommodate new development
areas that are expected to only be accessible following ratification of the
new concession agreement.
22 development wells are planned for 2025, following legacy exploration
commitments (postponed from 2024 and backed by a parent company guarantee)
limiting development drilling activity in H1 2025. In the first half of the
year, two Abu Roash G (ARG) targeted wells on the Alam El Shawish West (AESW)
concession and five ARG wells in BED were completed. A fourth rig commenced
operations in April, and, since July, the entire fleet has been allocated to
development activity. We forecast the drilling of 15 development wells in H2
2025, all focused on liquids in the BED area, in addition to the seven drilled
in H1 2025. Three exploration wells were drilled in the first half of 2025
(one on each of the NUMB, WEF and SEH concessions) and testing operations to
establish the commerciality of the wells drilled on NUMB and SEH are ongoing
with results expected this month. The work programme is expected to be
attributed against the commitments that the Company will be required to fulfil
as part of the integrated concession agreement.
In March, Capricorn's reserves auditor, GLJ, carried out preliminary work to
assess the expected reserves and resources increment associated with the
integrated concession which aligns with the Company's own expectation of an
initial conversion of WI resources to 2P reserves of up to approximately 20
mmboe in the current year. Capricorn intends to issue an updated CPR at
ratification, in addition to the conventional year end announcement.
UK North Sea contingent payment
Capricorn continues to pursue the recovery of the defaulted payment of $29.5m
owed by Waldorf Production UK Plc (Waldorf) following the High Court judgement
handed down in August which refused to sanction Waldorf's restructuring plan.
As previously disclosed, it is unlikely that Capricorn will receive the full
amount owed considering Waldorf's poor financial position, however discussions
with Waldorf are ongoing and the Company continues to consider its position on
this matter in conjunction with its legal advisers.
Senegal tax assessment
We continue to dispute the two assessments raised by the Senegal tax
authorities relating to capital gains tax and registration duties on
Capricorn's sale of the Sangomar field to Woodside Energy and continue to work
with the purchaser to defend the Group's position. No provision has been made
in the financial statements at the half year. Woodside has filed an action
with the High Court of Dakar and a request for arbitration with the
International Centre for Settlement of Investment Disputes disputing the tax
assessment.
Future outlook
Parliamentary ratification of the new concession agreement is anticipated to
take place later this year, with the consolidated concession anticipated to
unlock significant contingent resources and lead to increased production and
reserves. Following this formality, the Company will provide updated guidance
on its ongoing work programme with the potential for incremental development
drilling. The Company anticipates current investments made prior to formal
ratification will be recognised under the new terms.
Capricorn continues to actively evaluate accretive M&A opportunities in
the UK North Sea alongside strategic investment and partnership opportunities
in the MENA region, leveraging its position in both geographies to diversify
and expand operations and grow cash flow.
Principal risks and uncertainties
Managing the Group's key risks and associated opportunities is essential to
Capricorn's long-term success and sustainability. The Group endeavours to
deploy capital in such a way that offers an appropriate level of return while
ensuring the levels of associated political, commercial, and technical risk
remain within the defined risk appetite of the Group.
The Group's risk management framework provides a systematic process for the
identification and management of the key risks and opportunities which may
affect the delivery of the Group's strategic objectives. Key Performance
Indicators are set annually to determine the level of risk the Group is
willing to accept in the pursuit of these objectives and form a fundamental
component of the Group's risk management framework.
Overall responsibility for the system of risk management and internal control
and reviewing the effectiveness of such systems rests with the Board.
Principal risks, as well as progress against key risk projects, are reviewed
at each Board meeting, and at least once a year the Board undertakes a
dedicated risk workshop to review the Group's principal risks. This integrated
approach to risk management has been and continues to be critical to the
delivery of our strategic objectives.
Responding to changing risks during 2025
Capricorn has assessed the principal risks and uncertainties at the end of H1
2025. The principal risks are:
· Increasing EGPC receivables balance
· Volatile oil and gas prices
· Underperformance of Egypt assets
· Failure to meet payment obligations relating to operational
activities
· Significant volume of company equity held by small shareholder
group
· Failure to replace long-term reserves and resources
· Failure to expand and diversify the production base
· Crystallisation of an adverse Senegal tax assessment
· Political and fiscal uncertainties
· Future challenges and costs as markets transition to net zero
Within the Group's risk assessment framework, emerging risks are considered as
part of the identification phase. These are risks that cannot yet be fully
assessed, risks that are known but are not likely to have an impact for
several years, or risks which are unknown but could have implications for the
business moving forward.
Financial Review
Key production statistics
Period Period Year
ended ended ended
30 June 30 June 31 December 2024
2025 2024
Production - net WI share (boepd) 20,342 26,215 23,763
Sales volumes - net EI oil (boepd) 3,331 4,290 3,847
Sales volume - net EI gas (mscfd) 27,949 34,562 32,980
Average price per bbl ($)* 73.6 78.6 79.3
Revenue from production ($m) 59 80 147
Average production costs per boe ($) 5.1 4.7 4.8
*Excludes reduction in revenue due to expected credit loss charge
(Loss)/Profit for the Period
Period Period Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
$m $m $m
Profit from Egypt operating segment 9 5 1
Loss from other Group continuing operations (15) (2) (13)
(Loss)/Profit from discontinued operations - (1) 23
(Loss)/Profit for the period (6) 2 11
Egypt Operating Segment Results
In Egypt, total revenue was $59m. $44m was generated on sale of liquids with
an average price of $73.6 per bbl on net sales volumes of 602,900 mmbbls. Gas
revenue was $15m from volumes of 5,058,800 mscf at the contracted rate of
$3/mscf.
Cost of sales in the half-year were $18m. Production costs increased slightly
to $5.1 per boe, on working interest production over the six-month period
while depletion charges were $38m, at a weighted average rate of $22.3 per boe
across the concessions.
Capricorn records other income on additional production that is notionally
allocated to the Group to cover tax due on profits from the concessions. This
is offset by an equal and opposite tax charge. In the current period, the
value of this income and notional tax gross-up is $8m.
Net finance costs in Egypt of $1m, with loan interest and charges of $5m
offset by foreign exchange gains.
The total tax credit on Egypt operations for the period is $1m, being the tax
gross-up charge of $8m offset by deferred tax credits on asset temporary
differences of $9m.
Results from Other Continuing operations
The loss on other continuing operations of $15m predominantly results from
administration charges of $10m and net finance costs of $5m including $3m of
foreign exchange losses.
Net cash inflow for the Period
$m
Opening net cash as at 1 January 2025 23
Senegal contingent consideration 50
Net cash inflow from Egypt operations 35
Exploration expenditure (6)
Development expenditure - Egypt (27)
Deferred consideration - Egypt (25)
Administration expenses, corporate assets, and office lease costs (13)
Net finance costs, equity and other movements (4)
Discontinued operations (1)
Closing net cash as at 30 June 2025 32
Cash and cash equivalent balances at 30 June 2025 of $96m were offset by
borrowings in Egypt of $64m. Cash includes restricted cash balances of $12m
which may not be distributed to shareholders. Of this amount, $10m is
available for use to fund non-operated concessions in Egypt and debt interest
payments. Loan repayments in the period were $36m. At the balance sheet date,
and the date of this report, the Company has secured a waiver to events of
default that have occurred on the facility to allow payments to continue in
line with the scheduled amortisation of the facility.
Cash inflows from operations in Egypt of $35m, can be reconciled to cash flows
from operations per the statutory cash flow as follows:
$m
Operating cash flow per statutory cash flow statement 20
Non-GAAP Adjustments:
Administration expenses 13
Royalties and other reallocations 2
Net cash inflow from Egypt operations 35
During the six months to 30 June 2025, Capricorn received payments of $61m
against outstanding trade receivables, in accordance with the agreed payment
plan with EGPC. Closing trade receivables in Egypt were $172m at 30 June 2025,
after expected credit loss adjustments.
Balance Sheet
The Group's net asset position at 30 June 2025 is summarised as follows:
$m
Exploration assets - Egypt 8
Development assets and goodwill - Egypt 203
Other long-term assets 13
Net deferred tax assts 5
Working capital - non-Egypt 79
Cash and cash equivalents 86
Deferred consideration receivable 2
Trade and other receivables and payables, and provisions (9)
Working capital - Egypt 47
Trade and other receivables and payables, and inventory 100
Net debt, including unamortised facility fees (53)
Lease liabilities (6)
Net assets 349
Exploration assets
All three exploration wells drilled in H1 2025 in NUMB, WEF and SEH
concessions encountered hydrocarbons. At the balance sheet date, work
interpreting the results continued with a subsequent decision by the JV in
August 2025 not to test the WEF discovery due to sub-commercial volumes. Costs
carried at the balance sheet date of $3.9m on the WEF concession shall be
expensed in H2 2025.
Development assets and goodwill
At the period end, the carrying value of the Group's producing assets in Egypt
was $193m, after additions in the period of $19m.
The Group reviewed its producing assets in Egypt for indicators of impairment,
however no indicators were identified, and no impairment tests have therefore
been performed at the half-year.
Other assets and liabilities
Other long-term assets represent other property plant and equipment and
intangibles. The Group's net deferred tax position at 30 June 2025 fully
relates to assets in Egypt.
Statement of Directors' Responsibilities
The directors confirm that these condensed consolidated interim financial
statements have been prepared in accordance with UK adopted International
Accounting Standard 34, 'Interim Financial Reporting', and the Disclosure
Guidance and Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority and give a true and fair view of the assets, liabilities,
financial position and loss for the period and that the interim management
report includes a fair review of the information required by DTR 4.2.7 and DTR
4.2.8, namely:
➢ an indication of important events that have occurred during the first six
months and their impact on the condensed set of financial statements, and
➢ a description of the principal risks and uncertainties for the remaining
six months of the financial year.
There were no material related-party transactions in the first six months and
no material changes in the related-party transactions described in the last
annual report.
The directors of Capricorn Energy PLC are listed in the Capricorn Energy PLC
Annual Report for 31 December 2024. A list of current directors is maintained
on the Capricorn Energy PLC website: www.capricornenergy.com
(https://www.capricornenergy.com/) .
By order of the Board.
Randy Neely
Chief Executive
17 September 2025
About Capricorn Energy PLC
Capricorn is a cash flow-focused energy producer, with an attractive portfolio
of onshore development and production assets in the Western Desert.
For further information, visit www.capricornenergy.com
(https://www.capricornenergy.com/) .
Independent review report to Capricorn Energy PLC
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed Capricorn Energy PLC's condensed consolidated interim
financial statements (the "interim financial statements") in the Financial
Statements of Capricorn Energy PLC for the 6 month period ended 30 June 2025
(the "period").
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
The interim financial statements comprise:
· the Group Balance Sheet as at 30 June 2025;
· the Group Income Statement and Group Statement of Comprehensive
Income for the period then ended;
· the Group Statement of Cash Flows for the period then ended;
· the Group Statement of Changes in Equity for the period then
ended; and
· the explanatory notes to the interim financial statements.
The interim financial statements included in the Financial Statements of
Capricorn Energy PLC have been prepared in accordance with UK adopted
International Accounting Standard 34, 'Interim Financial Reporting' and the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the Financial Statements and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The Financial Statements, including the interim financial statements, is the
responsibility of, and has been approved by the directors. The directors are
responsible for preparing the Financial Statements in accordance with the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority. In preparing the Financial Statements, including
the interim financial statements, the directors are responsible for assessing
the group's ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the group or to
cease operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the Financial Statements based on our review. Our conclusion,
including our Conclusions relating to going concern, is based on procedures
that are less extensive than audit procedures, as described in the Basis for
conclusion paragraph of this report. This report, including the conclusion,
has been prepared for and only for the company for the purpose of complying
with the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority and for no other purpose. We do not, in
giving this conclusion, accept or assume responsibility for any other purpose
or to any other person to whom this report is shown or into whose hands it may
come save where expressly agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
Edinburgh
17 September 2025
Capricorn Energy PLC
Financial Statements
For the six months ended 30 June 2025
Contents
Group Income Statement
Group Statement of Comprehensive Income
Group Balance Sheet
Group Statement of Cash Flows
Group Statement of Changes in Equity
Section 1 - Basis of Preparation
1.1 Accounting Policies: Basis of Preparation
1.2 Going Concern
Section 2 - Oil and Gas Assets and Operations
2.1 Gross Profit: Revenue and Cost of Sales
2.2 Property, Plant & Equipment - Development/Producing Assets
2.3 Other Property, Plant & Equipment and Intangible Assets
2.4 Capital Commitments
Section 3 - Working Capital, Financial Instruments and Long-Term Liabilities
3.1 Cash and Cash Equivalents
3.2 Loans and Borrowings
3.3 Lease Liabilities
3.4 Trade and Other Receivables
3.5 Financial Liabilities at Fair Value Through Profit and Loss
3.6 Trade and Other Payables
Section 4 - Income Statement Analysis
4.1 Segmental Analysis
4.2 Finance Income
4.3 Finance Costs
4.4 Earnings per Ordinary Share
Section 5 - Taxation
5.1 Tax Credit/(Charge) on (Loss)/Profit for the Period
5.2 Deferred Tax Asset and Liabilities
Section 6 - Discontinued Operations
6.1 (Loss)/Profit from Discontinued Operations
6.2 Cash Flow Information for Discontinued Operations
Section 7 - Share Capital
7.1 Called-Up Share Capital
Capricorn Energy PLC
Group Income Statement
For the six months ended 30 June 2025
Note Six months ended Six months ended Year
30 June 30 June ended
2025 2024 31 December
(unaudited) (unaudited) 2024
$m $m (audited)
$m
Continuing operations
Revenue 2.1 59.7 80.8 147.8
Other income 2.1 7.6 23.0 30.1
Cost of sales (18.4) (22.5) (41.6)
Depletion charge 2.2 (37.8) (37.3) (85.1)
Gross profit 11.1 44.0 51.2
Pre-award costs (0.2) - -
General exploration costs 1.0 (1.4) (1.1)
Unsuccessful exploration well costs - (4.3) (8.9)
Impairment reversal of property, plant and equipment - development/producing 2.2 - - 15.7
assets
Expected credit loss adjustment on revenue receivable (1.7) - (3.9)
Other operating income 0.4 0.6 1.0
Administrative and other expenses (12.6) (12.0) (23.9)
Operating (loss)/profit (2.0) 26.9 30.1
Fair value loss - deferred consideration on business combination - (4.5) (5.2)
Other gains/(losses) through profit or loss 0.4 - (0.1)
Finance income 4.2 2.3 5.0 9.5
Finance costs 4.3 (8.2) (11.0) (20.4)
(Loss)/Profit before taxation from continuing operations (7.5) 16.4 13.9
Tax credit/(charge) 5.1 1.0 (13.9) (26.5)
(Loss)/Profit from continuing operations (6.5) 2.5 (12.6)
(Loss)/Profit from discontinued operations 6.1 - (0.7) 23.2
(Loss)/Profit for the period attributable to equity holders of the Parent (6.5) 1.8 10.6
Earnings per share for (loss)/profit from continuing operations:
(Loss)/Profit per ordinary share - basic ($) 4.4 (0.09) 0.03 (0.16)
(Loss)/Profit per ordinary share - diluted ($) 4.4 (0.09) 0.03 (0.16)
Earnings per share for (loss)/profit attributable to equity holders of the
Parent:
(Loss)/Profit per ordinary share - basic ($) 4.4 (0.09) 0.02 0.14
(Loss)/Profit per ordinary share - diluted ($) 4.4 (0.09) 0.02 0.14
Capricorn Energy PLC
Group Statement of Comprehensive Income
For the six months ended 30 June 2025
Six months ended Six months ended Year
30 June 30 June ended
2025 2024 31 December
(unaudited) (unaudited) 2024
$m $m (audited)
$m
(Loss)/Profit for the period attributable to equity holders of the Parent (6.5) 1.8 10.6
Other Comprehensive Income/(Expense) - items that may be recycled to the
Income Statement
Currency translation differences 6.0 (0.5) (1.2)
Currency translation differences recycled on liquidation of subsidiaries - - (0.4)
6.0 (0.5) (1.6)
Other Comprehensive Income/(Expense) for the period
Total Comprehensive (Expense)/Income for the period attributable to equity (0.5) 1.3 9.0
holders of the Parent
Total Comprehensive (Expense)/Income from:
Continuing operations (0.5) 2.0 (14.2)
Discontinuing operations - (0.7) 23.2
(0.5) 1.3 9.0
Capricorn Energy PLC
Group Balance Sheet
As at 30 June 2025
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
Note $m $m $m
Non-current assets
Intangible exploration/appraisal assets 7.9 - -
Property, plant & equipment - development/producing assets 2.2 192.5 211.8 210.8
Goodwill 10.8 10.8 10.8
Other property, plant & equipment and intangible assets 2.3 13.1 13.6 13.0
Deferred tax asset 5.2 24.5 10.0 18.3
Other long-term receivables - 7.0 -
248.8 253.2 252.9
Current assets
Cash and cash equivalents 3.1 96.0 148.3 123.4
Inventory 8.0 8.5 8.0
Trade and other receivables 3.4 180.4 192.7 231.4
Current tax receivable 4.0 - 4.0
288.4 349.5 366.8
537.2 602.7 619.7
Total assets
Current liabilities
Loans and borrowings 3.2 26.2 12.4 26.4
Lease liabilities 3.3 1.1 1.3 1.0
Deferred consideration on business combinations 3.5 - 24.3 25.0
Trade and other payables 3.6 91.3 98.7 110.6
Provisions - well abandonment 0.6 - 0.5
119.2 136.7 163.5
Non-current liabilities
Loans and borrowings 3.2 37.1 94.1 72.9
Lease liabilities 3.3 5.1 5.8 5.1
Deferred tax liabilities 5.2 19.7 8.7 22.1
Provisions - well abandonment 7.5 7.2 6.8
69.4 115.8 106.9
188.6 252.5 270.4
Total liabilities
348.6 350.2 349.3
Net assets
Equity attributable to equity holders of the Parent
Called-up share capital 7.1 7.3 7.4 7.3
Share premium 7.1 0.9 0.9 0.9
Shares held by ESOP/SIP Trusts (7.8) (3.6) (6.7)
Foreign currency translation (81.3) (86.2) (87.3)
Merger and capital reserves 46.2 46.1 46.2
Retained earnings 383.3 385.6 388.9
348.6 350.2 349.3
Total equity
Capricorn Energy PLC
Group Statement of Cash Flows
For the six months ended 30 June 2025
Six months ended Six months ended Year
30 June 30 June ended
2025 2024 31 December
(unaudited) (unaudited) 2024
$m $m (audited)
$m
Cash flows from operating activities:
(Loss)/Profit before taxation from continuing operations (7.5) 16.4 13.9
(Loss)/Profit before tax from discontinued operations (note 6.1) - (0.7) 23.2
(Loss)/Profit before tax including discontinued operations (7.5) 15.7 37.1
Adjustments for non-cash income and expense and non-operating cash flows:
Other income - tax entitlement volumes (7.6) (23.0) (30.1)
Unsuccessful exploration costs - 4.3 8.9
Depreciation, depletion and amortisation charges 38.4 38.7 86.8
Impairment reversal of property, plant and equipment - development/producing - - (15.7)
assets
Expected credit loss adjustment on revenue receivable 1.7 - 3.9
Share-based payments charge 1.2 0.9 1.9
Fair value loss - deferred consideration on business combination - 4.5 5.2
Other (gains)/losses through profit or loss (0.4) - 0.1
Loss on disposal of a financial asset - discontinued operations - 0.7 26.1
Loss on disposal of a subsidiary - discontinued operations - - 0.7
Gain on disposal of oil and gas asset - discontinued operations - - (50.0)
Finance income (2.3) (5.0) (9.5)
Finance costs 8.2 11.0 20.4
Adjustments in current assets and liabilities:
Inventory movement - (0.2) 0.3
Decrease/(Increase) in trade and other receivables (note 3.4) 1.8 17.2 (9.1)
(Decrease)/Increase in trade and other payables (note 3.6) (13.0) (2.2) 9.1
20.5 62.6 86.1
Net cash flows from operating activities
Cash flows from investing activities:
Expenditure on intangible exploration/appraisal assets (5.8) - (1.0)
Expenditure on property, plant & equipment - development/producing assets (27.4) (16.2) (39.7)
Expenditure on other property, plant & equipment and intangible assets - - (0.9)
Deferred consideration received - discontinued operations - 2.0 2.0
Deferred consideration paid on business combination (25.0) (25.0) (25.0)
Proceeds on disposal of financial assets 0.4 3.0 3.1
Senegal contingent consideration payment - discontinued operations 50.0 - -
Refund of proceeds on disposed of oil and gas assets - discontinued operations (0.7) - -
Tax refund received on investing activities - - 1.4
Interest received and other finance income 2.6 5.2 8.8
(5.9) (31.0) (51.3)
Net cash flows used in investing activities
Cash flows from financing activities:
Dividends paid - (50.1) (50.1)
Share repurchase - (3.3) (7.3)
Other interest and charges (4.9) (8.8) (14.8)
Repayment of borrowings (36.5) (5.8) (13.5)
Proceeds from issue of shares - 0.1 0.2
Cost of shares purchased (1.4) (3.9) (10.9)
Lease payments (0.8) (0.4) (0.9)
Net cash flows used in financing activities (43.6) (72.2) (97.3)
Net decrease in cash and cash equivalents (29.0) (40.6) (62.5)
Opening cash and cash equivalents at the beginning of the period 123.4 189.5 189.5
Foreign exchange differences 1.6 (0.6) (3.6)
96.0 148.3 123.4
Closing cash and cash equivalents (note 3.1)
Capricorn Energy PLC
Group Statement of Changes in Equity
For the six months ended 30 June 2025
Equity Shares held by ESOP/ SIP Trusts Foreign currency translation Merger and capital reserves Retained earnings Total equity
share capital and share premium
$m $m $m $m $m $m
At 1 January 2024 8.4 (6.3) (85.7) 45.9 444.2 406.5
Profit for the year - - - - 10.6 10.6
Currency translation differences - - (1.2) - - (1.2)
Currency translation differences recycled on liquidation of subsidiaries - - (0.4) - - (0.4)
Total comprehensive income - - (1.6) - 10.6 9.0
Dividends paid - - - - (50.1) (50.1)
Share repurchase (0.3) - - 0.3 (7.3) (7.3)
Share based payments - - - - 1.9 1.9
Exercise of employee share options 0.1 0.1 - - - 0.2
Cost of shares purchased - (10.9) - - - (10.9)
Cost of shares vesting - 10.4 - - (10.4) -
8.2 (6.7) (87.3) 46.2 388.9 349.3
At 31 December 2024
Loss for the period - - - - (6.5) (6.5)
Currency translation differences - - 6.0 - - 6.0
- - 6.0 - (6.5) (0.5)
Total comprehensive expense
Share-based payments - - - - 1.2 1.2
Cost of shares purchased - (1.4) - - - (1.4)
Cost of shares vesting - 0.3 - - (0.3) -
8.2 (7.8) (81.3) 46.2 383.3 348.6
At 30 June 2025
Capricorn Energy PLC
Group Statement of Changes in Equity (continued)
For the six months ended 30 June 2024
Equity share capital and share premium Shares held by ESOP/ SIP Trusts Foreign currency translation Merger and capital reserves Retained earnings Total
equity
$m $m $m $m $m $m
At 1 January 2024 8.4 (6.3) (85.7) 45.9 444.2 406.5
Profit for the period - - - - 1.8 1.8
Currency translation differences - - (0.5) - - (0.5)
- - (0.5) - 1.8 1.3
Total comprehensive income
Share-based payments - - - - 0.9 0.9
Exercise of employee share options 0.1 - - - - 0.1
Cost of shares purchased - (4.8) - - - (4.8)
Cost of shares vesting - 7.5 - - (7.5) -
Dividends paid - - - - (50.1) (50.1)
Share repurchase (0.2) - - 0.2 (3.7) (3.7)
8.3 (3.6) (86.2) 46.1 385.6 350.2
At 30 June 2024
Section 1 - Basis of Preparation
1.1 Accounting Policies: Basis of Preparation
The half-year condensed consolidated Financial Statements (the "Financial
Statements") for the six months ended 30 June 2025 have been prepared in
accordance with the Disclosure and Transparency Rules of the Financial Conduct
Authority and with UK adopted International Accounting Standard IAS 34,
'Interim financial reporting'. They should be read in conjunction with the
annual Financial Statements for the year ended 31 December 2024, which have
been prepared in accordance with UK-adopted International Accounting Standards
and with the requirements of the Companies Act 2006 as applicable to companies
reporting under those standards.
This half-yearly report was approved by the Directors on 17 September 2025.
The disclosed figures, which have been reviewed but not audited, are not
statutory accounts in terms of Section 434 of the Companies Act 2006.
Statutory accounts for the year ended 31 December 2024, on which the auditors
gave an unqualified audit report, which did not contain an emphasis of matter
paragraph or any statement under section 498 of the Companies Act 2006, have
been filed with the Registrar of Companies.
This half-yearly report has been prepared on a basis consistent with the
accounting policies expected to be applied for the year ending 31 December
2024 and uses the same accounting and financial risk management policies and
methods of computation as those applied for the year ended 31 December 2024.
Changes to IFRS effective 1 January 2025 have no significant impact on
Capricorn's accounting policies or Financial Statements.
Material key estimates and assumptions are unchanged from those applied in the
year ended 31 December 2024 and therefore apply to these Financial
Statements.
1.2 Going Concern
The Directors have considered the factors relevant to support a statement of
going concern. In assessing whether the going concern assumption is
appropriate, the Board considered the Group cash flow forecasts under various
scenarios, identifying risks and mitigating factors and ensuring the Group has
sufficient funding to meet its current and contracted commitments as and when
they fall due for a period of at least 12 months from the date of signing
these Financial Statements.
At the balance sheet date and the date of this report, the Group has surplus
cash balances exceeding debt drawn on the Senior Secured Borrowing and Junior
Debt Facilities within the Egypt business. Under both Capricorn's and the
lenders assumptions, the Group has sufficient resources to maintain compliance
with the financial covenants associated with the facilities in terms of a
12-month forward-looking liquidity test. There are currently events of default
existing on the facilities. Throughout the period, Capricorn has obtained
waivers from the lenders to roll forward the outstanding debt drawn on
existing terms on either a monthly or quarterly basis, maintaining the most
recent repayment forecasts approved by the lenders. The lenders approved a
three-month rollover of the debt on 27(th) May 2025 allowing Capricorn to
continue to disclose payments forecast to fall due over 12 months from the
balance sheet date as non-current liabilities.
For the Group's business outside of Egypt, the Group has sufficient funds to
continue operating as a going concern in the base case scenario, based on the
current general and administrative costs forecasts, and in the downside case,
which assumes a 10% increase in overhead costs and a tax settlement in
Senegal.
For the Egypt business, the base case forecast assumes receipts based on
current monthly invoices at oil prices as per the current forward curve, with
the additional bullet payment of $50m in October 2025, in line with the agreed
EGPC payment plan, and quarterly settlements to reduce the legacy receivables
position. A downside scenario run includes lower monthly rates of collections
from EGPC, with a 10% reduction against the base case, and no reduction in the
legacy receivables position outside of the bullet payment due in October 2025.
The downside case also includes a 10% increase in general and administrative
costs. It is assumed that an increase in production and drilling costs would
lead to a reduction in the number of rigs operating. An oil-price crash
scenario assumes a fall in the oil price to $40 per bbl in Q4 2025 with a
recovery to $50 per bbl by the year-end 2026. Under all scenarios, Capricorn
Egypt business has sufficient cash headroom to continue to operate as a going
concern within Egypt.
Under the terms of the borrowing facilities entered into in connection with
the Group's Egypt assets, Capricorn Egypt Limited, the subsidiary holding the
Egypt assets, as borrower jointly and severally guarantees the performance of
the obligations of the joint venture counterparty. Should the counterparty
fail to meet its repayment obligations the lender could enforce this
guarantee, though other routes to recovery would be more likely. Though
considered highly remote, default by the counterparty, or if the lenders
withhold approval for the ongoing waivers, could result in the lenders
assuming control of the Egypt assets. While the assets would be heavily
impaired to expected recoverable amounts, as the facilities are non-recourse
beyond Capricorn Egypt Limited, the remaining Capricorn Energy PLC Group would
continue to operate as a going concern with sufficient cash balances held
outside Egypt, allowing the Group to meet its remaining liabilities as they
fall due.
Section 2 - Oil and Gas Assets and Operations
2.1 Gross Profit: Revenue and Cost of Sales
Six months Six months ended Year
ended 30 June ended
30 June 2024 31 December
2025 2024
$m $m $m
Oil sales 44.3 61.4 111.6
Gas sales 15.1 18.9 35.2
Revenue from oil and gas sales 59.4 80.3 146.8
Royalty income 0.3 0.5 1.0
Total revenue 59.7 80.8 147.8
Other Income - Tax entitlement volumes 7.6 23.0 30.1
Other income 7.6 23.0 30.1
Production costs and inventory movements (18.4) (22.5) (41.6)
Cost of sales (18.4) (22.5) (41.6)
Depletion (note 2.2) (37.8) (37.3) (85.1)
Gross profit 11.1 44.0 51.2
Oil and gas revenue in Egypt for the half year ended 30 June 2025 was $59.4m
(30 June 2024: $80.3m; 31 December 2024: $146.8m), from net entitlement
volumes of 1.5 mmboe (30 June 2024: 1.9 mmboe; 31 December 2024: 3.6 mmboe).
Oil sales price realised averaged $73.6/boe (30 June 2024: $78.6/boe; 31
December 2024: $79.3/boe) and gas sales prices at $3.0/mscf (30 June 2024:
$3.0/mscf; 31 December 2024; $2.9/mscf). Other income represents additional
entitlement to cover tax due which is paid on Capricorn's behalf by EGPC; see
section 5.
Cost of sales over the period were $18.4m (30 June 2024: $22.5m; 31 December
2024: $41.6m), or $5.1/boe (30 June 2024: $4.7/boe; 31 December 2024:
$4.8/boe) (on a WI basis).
Section 2 - Oil and Gas Assets and Operations (continued)
2.2 Property, Plant & Equipment - Development/Producing Assets
Egypt
$m
Cost
At 1 January 2024 572.2
Additions 31.5
At 30 June 2024 603.7
Additions 31.1
634.8
At 31 December 2024
Additions 19.5
At 30 June 2025 654.3
Accumulated depletion and impairment
At 1 January 2024 354.6
Depletion and amortisation charges 37.3
At 30 June 2024 391.9
Depletion 47.8
Impairment reversal (15.7)
424.0
At 31 December 2024
Depletion 37.8
At 30 June 2025 461.8
Net book value
At 30 June 2024 211.8
At 31 December 2024 210.8
192.5
At 30 June 2025
Additions on development activity in the period were funded through cash and
working capital.
In Egypt, depletion of $37.8m (30 June 2024: $37.3m, 31 December 2024: $85.1m)
was charged to the Income Statement based on entitlement interest production.
The costs for depletion include future capital costs-to-complete consistent
with the life-of-field reserves estimates used in the calculation.
The Group reviewed its producing assets in Egypt for indicators of impairment,
but no indicators were identified, and no impairment tests have therefore been
performed at the half-year.
Section 2 - Oil and Gas Assets and Operations (continued)
2.3 Other Property, Plant & Equipment and Intangible assets
Carbon Intangible Property, plant Right-of-use Total
credits assets & equipment Assets (restated)
(restated)
$m $m $m $m $m
Cost
At 1 January 2024 6.8 12.2 0.3 7.6 26.9
Foreign exchange - (0.1) - - (0.1)
At 30 June 2024 6.8 12.1 0.3 7.6 26.8
Additions - 0.9 - - 0.9
Disposals - (8.8) - - (8.8)
Right-of-use asset adjustment - - - (0.6) (0.6)
Foreign exchange - (0.2) - - (0.2)
6.8 4.0 0.3 7.0 18.1
At 31 December 2024
Additions - - - 0.3 0.3
Disposals - (1.6) - - (1.6)
Foreign exchange - 0.7 - 0.6 1.3
6.8 3.1 0.3 7.9 18.1
At 30 June 2025
Accumulated depreciation and amortisation
At 1 January 2024 - 11.6 - 0.8 12.4
Charge for the period - 0.4 0.1 0.4 0.9
Foreign exchange - (0.1) - - (0.1)
At 30 June 2024 - 11.9 0.1 1.2 13.2
Charge for the period - 0.2 - 0.6 0.8
Disposals - (8.8) - - (8.8)
Foreign exchange - (0.2) - 0.1 (0.1)
At 31 December 2024 - 3.1 0.1 1.9 5.1
Charge for the period - 0.1 - 0.5 0.6
Disposals - (1.6) - - (1.6)
Foreign exchange - 0.8 - 0.1 0.9
At 30 June 2025 - 2.4 0.1 2.5 5.0
Net book value
At 30 June 2024 6.8 0.2 0.2 6.4 13.6
At 31 December 2024 6.8 0.9 0.2 5.1 13.0
6.8 0.7 0.2 5.4 13.1
At 30 June 2025
Prior year comparatives for right-of-use assets have been restated to reflect
the disposal of fully amortised office leases for the previous head office in
Edinburgh and satellite office in London. The closing net book value of
right-of-use assets at 30 June 2024 is unchanged.
Section 2 - Oil and Gas Assets and Operations (continued)
2.4 Capital Commitments At At At
30 June 30 June 31 December
2025 2024 2024
Oil and gas expenditure: $m $m $m
Intangible exploration/appraisal assets 1.1 6.4 7.6
Property, plant & equipment - development/producing assets 55.6 24.4 -
56.7 30.8 7.6
Capital commitments represent Capricorn's share of obligations relating to its
interests in joint operations. These commitments include Capricorn's share of
the capital commitments of the joint operations themselves.
Capital commitments of $1.1m (30 June 2024: $6.4m, 31 December 2024: $7.6m)
for intangible exploration/appraisal assets relate to planned exploration
wells in Egypt. Capital commitments of $55.6m (30 June 2024: $24.4m, 31
December 2024: $nil) for property, plant & equipment -
development/producing assets relate to planned expenditure in Egypt in line
with approved budgets. Authorisation for expenditure for budget line items are
subject to further approval by Capricorn.
Section 3 - Working Capital, Financial Instruments and Long-Term Liabilities
3.1 Cash and Cash Equivalents
At At At
30 June 30 June 31 December
2025 2024 2024
$m $m $m
Cash at bank 12.7 7.6 16.2
Money market funds 83.3 140.7 107.2
96.0 148.3 123.4
At 30 June 2025, $11.9m (30 June 2024: $55.2m, 31 December 2024: $48.7m) of
cash and cash equivalents are restricted and not available for immediate
ordinary business use. Of this restricted amount of cash and cash equivalents
$9.7m (30 June 2024: $54.3m, 31 December 2024: $45.5m) is held in Egypt.
Restricted cash in Egypt may be used to fund ongoing costs of the Egypt
operations and local administration costs.
3.2 Loans and Borrowings
Reconciliation of opening and closing liabilities to cash flow movements: At At At
30 June 30 June 31 December
2025 2024 2024
$m $m $m
Opening liabilities 99.3 111.8 111.8
Loan repayments in the period disclosed in the Cash Flow Statement:
Senior Debt Facility (36.5) (5.8) (13.5)
(36.5) (5.8) (13.5)
Non-cash movements:
Accrued debt facility interest 0.1 - 0.1
Amortisation of debt arrangement fees 0.4 0.5 0.9
Closing liabilities 63.3 106.5 99.3
26.2 12.4 26.4
Amounts due less than one year
Amounts due greater than one year 37.1 94.1 72.9
Closing liabilities 63.3 106.5 99.3
Section 3 - Working Capital, Financial Instruments and Long-Term Liabilities
(continued)
3.3 Lease Liabilities
Reconciliation of opening and closing liabilities to cash flow movements: At At At
30 June 30 June 31 December
2025 2024 2024
$m $m $m
Opening liabilities 6.1 7.4 7.4
Lease payments in the period disclosed in the Cash Flow Statement as financing
cash flows:
Total lease payments (0.8) (0.4) (0.9)
(0.8) (0.4) (0.9)
Non-cash movements:
Lease additions 0.3 - -
Lease adjustment - - (0.7)
Lease interest charges 0.2 0.2 0.4
Foreign exchange 0.4 (0.1) (0.1)
Closing liabilities 6.2 7.1 6.1
1.1 1.3 1.0
Amounts due less than one year
Amounts due greater than one year 5.1 5.8 5.1
Closing liabilities 6.2 7.1 6.1
As at 30 June 2025 the balance of $6.2m wholly relates to the office lease
costs in the UK and Egypt. Amortisation charges on the Right-of-Use assets are
disclosed in note 4.1.
For the six months ended 30 June 2025 the Group did not incur any further
fixed or variable lease costs.
3.4 Trade and Other Receivables
At At At
30 June 30 June 31 December
2025 2024 2024
$m $m $m
Trade receivables 171.9 155.4 175.4
Other receivables 3.8 32.9 54.1
Prepayments 0.9 1.4 0.8
Joint operation receivables 3.8 3.0 1.1
180.4 192.7 231.4
Trade receivables relate to the Group's producing assets in Egypt. The
receivables position is net of expected credit loss adjustments of $10.4m.
Capricorn and EGPC have agreed on a payment plan to partially address legacy
receivables. Further discussions are ongoing with EGPC and the Operator to
manage the receivables position and capital expenditure outflows in Egypt are
being managed with the partner to match incoming receipts.
Other receivables of $3.8m include $1.5m of deferred consideration receivable
from Waldorf, $0.8m related to a subleased office, $0.6m of interest
receivable on an India tax refund, $0.3m of money market interest receivable,
$0.3m of VAT recoverable in the UK, $0.2m receivable from the local council in
relation to a historic office lease, and $0.1m of funds in transit.
Joint operation receivables include Capricorn's working interest share of the
receivables relating to joint operations and amounts recoverable from partners
in joint operations.
Section 3 - Working Capital, Financial Instruments and Long-Term Liabilities
(continued)
3.4 Trade and Other Receivables (continued)
Reconciliation of opening and closing receivables to operating cash flow At At At
movements:
30 June 30 June 31 December 2024
2025 2024 $m
$m $m
Opening trade and other receivables 231.4 186.0 186.0
Closing trade and other receivables (180.4) (192.7) (231.4)
Decrease/(Increase) in trade and other receivables 51.0 (6.7) (45.4)
Foreign exchange 2.5 (0.8) (1.4)
Senegal consideration (received)/receivable (50.0) - 50.0
Increase/(Decrease) in joint operation receivables relating to investing 0.1 1.5 (7.7)
activities for expenditure on oil and gas assets
(Decrease)/Increase in other debtors relating to investing activities (1.8) 19.9 (4.4)
Increase/(Decrease) in prepayments and other receivables relating to financing - (0.6) 0.3
activities
Trade and other receivables movement on earnout settlement - (2.0) (0.5)
Other receivable recognised on India tax refund - 5.9 -
Increase/(Decrease) in trade and other receivables movement recorded in 1.8 17.2 (9.1)
operating cash flows
3.5 Financial Liabilities at Fair Value Through Profit and Loss
Financial liabilities at fair value through profit or loss - deferred
consideration on business combination
Deferred consideration was due to Shell following the Egypt business
combination in 2021. Amounts due were determined by the average annual dated
Brent oil price for each year up to 2024, with a maximum of $50.0m payable for
each year, split 50:50 between Capricorn and Cheiron, if the average price
exceeded $75/bbl. The full $25.0m was payable in respect of the 2022, 2023,
and 2024 years and was settled in January 2023, June 2024, and January 2025,
respectively. There are no outstanding payments remaining in relation to
deferred consideration on the business combination.
The fair value of the liability was based on third-party mark-to-market
valuations: $24.3m for the period ended 30 June 2024, and $25.0m for the year
ended 31 December 2024.
Section 3 - Working Capital, Financial Instruments and Long-Term Liabilities
(continued)
3.6 Trade and Other Payables
At At At
30 June 30 June 31 December
2025 2024 2024
$m $m $m
Trade payables 0.3 0.9 0.1
Other taxation and social security 0.4 0.4 0.6
Accruals and other payables 3.8 5.3 6.3
Joint operation payables 86.8 92.1 103.6
91.3 98.7 110.6
Joint operation payables include Capricorn's share of the trade and other
payables of the joint operations in which the Group participates.
The reduction in accruals and other payables from the year end reflects the
reduction in bonus and employer national insurance accruals.
Reconciliation of opening and closing payables to operating cash flow At At At
movements:
30 June 30 June 31 December 2024
2025 2024 $m
$m $m
Opening trade and other payables (110.6) (82.0) (82.0)
Closing trade and other payables 91.3 98.7 110.6
(Decrease)/Increase in trade and other payables (19.3) 16.7 28.6
Foreign exchange (0.2) (1.2) (0.5)
Decrease in trade payables relating to investing activities - (1.2) -
Decrease/(Increase) in joint operation payables relating to investing 5.7 (15.8) (18.2)
activities
Increase in accruals relating to other financing activities - repurchase of - (0.4) -
shares
Increase in accruals relating to other financing activities - cost of shares - (0.3) -
purchased
Decrease/(Increase) in accruals and other payables relating to investing 0.7 - (0.7)
activities
Decrease in accruals and other payables relating to financing activities 0.1 - (0.1)
(Decrease)/Increase in trade and other payables recorded in operating cash (13.0) (2.2) 9.1
flows
Section 4 - Income Statement Analysis
4.1 Segmental Analysis
Operating segments
Capricorn's assets are managed by the Board on a geographical basis, with each
country forming an operating segment. The Board monitors each segment
separately for the purposes of making decisions about resource allocation and
performance assessment.
At 30 June 2025, Capricorn identified two reporting segments: Egypt and Other
countries. "Other countries" combine costs relating to legacy assets in
Mauritania, Mexico and Suriname and ongoing new venture activities in the UK.
The "Other Capricorn Energy Group" segment exists to accumulate the activities
and results of the Parent and other holding companies together with other
unallocated expenditure and net assets/liabilities, including amounts of a
corporate nature not specifically attributable to any of the business units.
Non-current assets as analysed on a segmental basis consist of: intangible
exploration/appraisal assets; property, plant & equipment -
development/producing assets; goodwill; and other property, plant &
equipment and intangible assets.
The segment results for the six months ended 30 June 2025 are as follows:
Egypt Other countries Other Capricorn Energy Group Total
$m $m $m $m
Revenue 59.4 - 0.3 59.7
Other income 7.6 - - 7.6
Cost of sales (18.4) - - (18.4)
Depletion and amortisation charges (37.8) - - (37.8)
Gross profit 10.8 - 0.3 11.1
Pre-awards - (0.1) (0.1) (0.2)
General exploration costs 1.0 - - 1.0
Expected credit loss adjustment on revenue receivable (1.7) - - (1.7)
Other operating income - - 0.4 0.4
Amortisation - right-of-use assets (0.1) - (0.4) (0.5)
Amortisation of other intangible assets - - (0.1) (0.1)
Other administrative expenses (1.5) (1.3) (9.2) (12.0)
Operating profit/(loss) 8.5 (1.4) (9.1) (2.0)
Other gains - - 0.4 0.4
Interest income 0.4 - 1.9 2.3
Interest expense (4.7) - (0.2) (4.9)
Other net finance income/(expense) 3.5 (0.9) (5.9) (3.3)
Profit/(Loss) before taxation from continuing operations 7.7 (2.3) (12.9) (7.5)
Tax credit 1.0 - - 1.0
Profit/(Loss) for the period attributable to equity holders of the Parent 8.7 (2.3) (12.9) (6.5)
Balances at 30 June 2025:
Capital expenditure 19.8 - - 19.8
Total assets 428.4 3.6 105.2 537.2
Total liabilities 166.6 12.3 9.7 188.6
Non-current assets 211.5 - 12.8 224.3
Section 4 - Income Statement Analysis (continued)
4.1 Segmental Analysis (continued)
The segment results for the six months ended 30 June 2024 were as follows:
Egypt Other countries Other Capricorn Energy Group Total
$m $m $m $m
Revenue 80.3 - 0.5 80.8
Other income 23.0 - - 23.0
Cost of sales (22.5) - - (22.5)
Depletion and amortisation charges (37.3) - - (37.3)
Gross profit 43.5 - 0.5 44.0
Unsuccessful exploration costs (2.5) (1.8) - (4.3)
General exploration costs (1.4) - - (1.4)
Other operating income - - 0.6 0.6
Depreciation - purchased assets - - (0.1) (0.1)
Amortisation - right-of-use assets (0.1) - (0.3) (0.4)
Amortisation of other intangible assets - (0.2) (0.2) (0.4)
Other administrative expenses - (0.9) (10.2) (11.1)
Operating profit/(loss) 39.5 (2.9) (9.7) 26.9
Fair value loss on deferred consideration (4.5) - - (4.5)
Interest income 0.6 - 4.4 5.0
Interest expense (6.7) - (0.3) (7.0)
Other net finance (expense)/income (3.9) (0.5) 0.4 (4.0)
Profit/(Loss) before taxation from continuing operations 25.0 (3.4) (5.2) 16.4
Tax (charge)/credit (19.8) - 5.9 (13.9)
Profit/(Loss) for the period from continuing operations 5.2 (3.4) 0.7 2.5
- - (0.7) (0.7)
Loss from discontinued operations
Profit/(Loss) attributable to equity holders of the Parent 5.2 (3.4) - 1.8
Balances at 30 June 2025:
Capital expenditure 31.5 1.8 - 33.3
Total assets 454.6 33.3 114.8 602.7
Total liabilities 230.5 11.2 10.8 252.5
Non-current assets 233.5 7.0 12.7 253.2
Section 4 - Income Statement Analysis (continued)
4.1 Segmental Analysis (continued)
The segment results for the year ended 31 December 2024 were as follows:
Egypt Mexico Other countries Other Capricorn Total
Energy
Group
$m $m $m $m $m
Revenue 146.8 - - 1.0 147.8
Other income 30.1 - - - 30.1
Cost of sales (41.6) - - - (41.6)
Depletion and amortisation (85.1) - - - (85.1)
Gross profit 50.2 - - 1.0 51.2
General exploration costs (1.1) - - - (1.1)
Unsuccessful exploration costs (2.5) (4.7) (1.7) - (8.9)
Impairment reversal of property, plant & equipment - development/producing 15.7 - - - 15.7
assets
Expected credit loss adjustment on revenue receivable (3.9) - - - (3.9)
Other operating income - - - 1.0 1.0
Depreciation - purchased assets - - - (0.1) (0.1)
Amortisation - right-of-use assets (0.3) - - (0.7) (1.0)
Amortisation of other intangible assets - (0.1) - (0.5) (0.6)
Other administrative expenses (2.6) (0.3) (0.5) (18.8) (22.2)
Operating profit/(loss) 55.5 (5.1) (2.2) (18.1) 30.1
Fair value loss on deferred consideration (5.2) - - - (5.2)
Other losses through profit or loss - - - (0.1) (0.1)
Interest income 1.8 0.1 - 7.1 9.0
Interest expense (13.7) - - (0.4) (14.1)
Other net finance (expense)/income (5.6) (1.1) (0.2) 1.1 (5.8)
Profit/(Loss) before taxation from continuing operations 32.8 (6.1) (2.4) (10.4) 13.9
Tax charge (31.9) - - 5.4 (26.5)
Profit/(Loss) for the year from continuing operations 0.9 (6.1) (2.4) (5.0) (12.6)
Profit on disposal of discontinued operations - - - 23.2 23.2
Profit/(Loss) attributable to equity holders of the Parent 0.9 (6.1) (2.4) 18.2 10.6
Balances at 31 December 2024:
Capital expenditure 62.6 - - 0.9 63.5
Total assets 469.5 1.6 7.5 141.1 619.7
Total liabilities 246.9 4.3 7.5 11.7 270.4
Non-current assets 221.8 - - 12.8 234.6
Section 4 - Income Statement Analysis (continued)
4.2 Finance Income
Six months ended Six months ended Year
30 June 30 June ended
2025 2024 31 December
2024
$m $m $m
Bank and other interest receivable 2.3 5.0 8.5
Other finance income - - 0.6
Exchange gain recycled from Other Comprehensive Income - - 0.4
2.3 5.0 9.5
4.3 Finance Costs
Six months ended Six months ended Year
30 June 30 June ended
2025 2024 31 December
2024
$m $m $m
Loan interest 4.5 6.7 12.8
Facility fee amortisation 0.4 0.5 0.9
Other finance charges and unwind of discount 0.6 1.8 2.8
Exchange loss 2.7 2.0 3.9
8.2 11.0 20.4
Section 4 - Income Statement Analysis (continued)
4.4 Earnings per Ordinary Share
Basic and diluted earnings per share are calculated using the following
measures of (loss)/profit:
Six months ended Six months ended Year
30 June 30 June ended
2025 2024 31 December
2024
$m $m $m
(Loss)/Profit and diluted loss after taxation from continuing operations (6.5) 2.5 (12.6)
(Loss)/Profit and diluted loss attributable to equity holders of the Parent (6.5) 1.8 10.6
The following reflects the share data used in the basic and diluted earnings
per share computations:
Six months ended Six months ended Year
30 June 30 June ended
2025 2024 31 December
2024
'000 '000 '000
Weighted average number of shares 70,558 88,252 79,557
Less weighted average shares held by the ESOP and SIP Trusts (2,029) (1,104) (1,310)
68,529 87,148 78,247
Basic and diluted weighted average number of shares
Potentially dilutive effect of shares issuable under employee share plans:
LTIP awards - 1,584 -
Approved and unapproved plans - 9 -
Employee share awards - 93 -
Deferred bonus - 37 -
68,529 88,871 78,247
Diluted weighted average number of shares
Potentially issuable shares not included above:
LTIP awards - 6,349 -
Approved and unapproved plans - 85 -
Employee share awards - 626 -
- 7,060 -
Number potentially issuable shares
Section 5 - Taxation
5.1 Tax Credit/(Charge) on (Loss)/Profit for the Period
Six months ended Six months ended Year
30 June 30 June ended
2025 2024 31 December
2024
$m $m $m
Current tax charge:
Overseas corporation tax - Egypt 7.6 23.0 30.1
Overseas corporation tax refund - India - (5.9) (5.4)
Total current tax charge on loss from continuing operations 7.6 17.1 24.7
Deferred tax (credit)/charge:
Deferred tax (credit)/charge on intangible/tangible assets - Egypt (8.6) (3.2) 1.8
Total deferred tax (credit)/charge on loss from continuing operations (8.6) (3.2) 1.8
Total tax (credit)/charge on loss from continuing operations (1.0) 13.9 26.5
5.2 Deferred Tax Assets and Liabilities
Reconciliation of movement in deferred tax assets/(liabilities):
Temporary difference Losses
in respect of (restated) Total
non-current asset $m $m
(restated)
$m
Deferred tax assets
At 1 January 2024 4.3 3.3 7.6
Deferred tax credit through the Income Statement 2.4 - 2.4
At 30 June 2024 6.7 3.3 10.0
Deferred tax credit through the Income Statement 10.8 (2.5) 8.3
At 31 December 2024 17.5 0.8 18.3
Deferred tax credit through the Income Statement 4.0 2.2 6.2
At 30 June 2025 21.5 3.0 24.5
Prior year comparatives have been restated to correctly disclose the deferred
tax impact of temporary differences in respect of non-current assets from the
deferred tax impact of tax losses within Egypt deferred tax assets. There is
no change to the net deferred tax asset or liability recognised at 30 June
2024.
Section 5 - Taxation (continued)
5.2 Deferred Tax Assets and Liabilities (continued)
Total
Temporary differences in respect of intangible/tangible assets
$m $m
Deferred tax liabilities
At 1 January 2024 (9.6) (9.6)
Deferred tax credit through the Income Statement - continuing operations 0.9 0.9
At 30 June 2024 (8.7) (8.7)
Deferred tax charge through the Income Statement - continuing operations (13.4) (13.4)
At 31 December 2024 (22.1) (22.1)
Deferred tax credit through the Income Statement - continuing operations 2.4 2.4
At 30 June 2025 (19.7) (19.7)
Deferred tax assets and liabilities in Egypt:
At At At
30 June 30 June 31 December
2025 2024 2024
$m $m $m
Deferred tax assets 24.5 10.0 18.3
Deferred tax liabilities (19.7) (8.7) (22.1)
4.8 1.3 (3.8)
Section 6 - Discontinued Operations
6.1 (Loss)/Profit from Discontinued Operations
Sale of Capricorn's interest in the Catcher and Kraken Producing Assets ("UK
Producing Assets")
On 2 November 2021, Capricorn completed the sale of its interests in the UK
Catcher and Kraken producing assets to Waldorf Production Limited ("Waldorf").
Consideration under the agreement included contingent consideration ('earnout
consideration') dependent on oil prices from 2021 to the end of 2025 and
minimum production levels being achieved. The first annual payment of earnout
consideration of $75.8m due on 2021 production was received in 2022. The
second annual payment of $134.4m due on 2022 production was settled in March
2023.
On 18 December 2023, Capricorn entered into a settlement agreement with
Waldorf for the full and final settlement of the remaining earnout
consideration due. Under the agreement, Capricorn received an initial payment
of $48.0m in December 2023, with a further $2.0m received at the end of Q1
2024. An additional payment of $22.5m was due in early January 2025 and
Capricorn were also due to receive Waldorf's 25% non-operated WI in the
Columbus gas field, subject to the necessary approvals. However, due to
financial difficulties impacting Waldorf, the transfer of the Columbus asset
is not expected to complete and the related long-term receivable was fully
impaired in 2024. In addition, the $22.5m has not been received and instead
written down to an estimated recoverable value of only $1.5m in 2024, the
balance is still applicable as at 30 June 2025.
The financial performance of the discontinued operations is expanded in the
tables below for the periods ended 30 June 2025, 30 June 2024 and 31 December
2024 respectively.
Six months Six months Year
ended ended ended
30 June 2025 30 June 31 December
$m 2024 2024
$m $m
Operating Profit - - -
Gain on disposal of oil and gas assets - - 50.0
Loss on disposal of a subsidiary - - (0.7)
Loss on disposal of a financial asset - - (26.1)
Expected credit loss - (0.7) -
(Loss)/Profit before tax from discontinued operations - (0.7) 23.2
Taxation - - -
- (0.7) 23.2
(Loss)/Profit after tax from discontinued operations
Earnings per Share for (Loss)/Profit from Discontinued Operations $ $
$
(Loss)/Profit per ordinary share - basic and diluted ($) - (0.01) 0.30
6.2 Cash Flow Information for Discontinued Operations
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
$m $m $m
Net cash flows from investing activities 49.3 2.0 2.0
Net increase in cash and cash equivalents 49.3 2.0 2.0
Section 7 - Share Capital
7.1 Called-Up Share Capital
Number 735/143p ordinary Number 799/122p ordinary 735/143p ordinary 799/122p ordinary
'000 '000 $m $m
Allotted, issued and fully paid ordinary shares
At 1 January 2024 93,778 - 7.6 -
Share repurchase pre consolidation (1,840) - (0.2) -
Consolidation of shares (91,938) 72,154 (7.4) 7.4
Share repurchase post consolidation - (280) - -
At 30 June 2024 - 71,874 - 7.4
Share repurchase - (1,316) - (0.1)
- 70,558 - 7.3
At 31 December 2024 and 30 June 2025
Share premium $m
At 1 January 2024 0.8
Arising on shares issued for employee share options 0.1
At 30 June 2024, 31 December 2024 and 0.9
30 June 2025
Glossary
bbl barrel of oil
boe barrels of oil equivalent
boepd barrels of oil equivalent per day
bopd barrels of oil per day
EGPC Egyptian General Petroleum Corporation
EI Entitlement interest
JV joint venture
m million
mmbbls million barrels of oil
mmboe million barrels of oil equivalent
mscf thousand standard cubic feet
WI working interest
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