Iraq's Gulf Keystone posts flat H1 revenue as higher realised price offsets production drop

Gulf Keystone Petroleum

25/08/2026 07:13

Overview
Iraq oil producer's H1 revenue was flat yr/yr as 67% drop in average production was offset by higher realised prices
Adjusted EBITDA for H1 rose 26% to $51.7 mln, supported by realised prices and cost cuts
Company declared $10 mln interim dividend, citing progress on export entitlements and stable cash

Outlook
Gulf Keystone aims to complete production ramp-up and maintain stable export sales, subject to security
Company progressing PF-2 water handling project, targeting start-up in Q1 2027
Company seeking full PSC entitlement for export sales at international prices to bolster cash flow

Result Drivers
SECURITY SHUT-INS - Production dropped 67% yr/yr due to precautionary shut-ins following regional security issues
HIGHER REALISED PRICES - Revenue was supported by higher realised prices for export sales, offsetting lower production volumes
COST REDUCTIONS - Operating costs fell 25% as company suspended most capital projects and implemented cost controls during shut-ins

Company press release: ID:nMFN3RTTs1

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
Beat
$82.80 mln
$71 mln (1 Analyst)
H1 Net Income
 
$12.90 mln
 
H1 Adjusted EBITDA
Beat
$51.70 mln
$27 mln (1 Analyst)
H1 Basic EPS
 
$0.06
 
H1 Capex
 
$18.30 mln
 
H1 Free Cash Flow
 
-$2 mln
 

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil & gas exploration and production peer group is "buy."
Wall Street's median 12-month price target for Gulf Keystone Petroleum Limited is GBp277.00, about 51% above its August 24 closing price of GBp183.40
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads
Aug 24 - BW Offshore posts Q2 loss, cuts 2026 EBITDA outlook on BW Opal delay
Aug 24 - Libya signs production-sharing agreement with Chevron 
Aug 25 - Woodside scraps clean energy target, posts 7% first-half profit rise

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)