Nostrum Oil & Gas - Financial results for Q2 and 6M ended 30 June 2025

Nostrum Oil & Gas

29/08/2025 07:00

RNS Number : 1377X

Nostrum Oil & Gas PLC

29 August 2025

 

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION

 

FOR IMMEDIATE RELEASE

 

 

London, 29 August 2025

 

 

Financial results for the second quarter and six months ended 30 June 2025

 

Nostrum Oil & Gas PLC (LSE: NOG) ("Nostrum", or the "Company" and together with its subsidiaries, the "Group"), an independent mixed-asset energy company with world-class gas processing facilities and export hub in north-west Kazakhstan, is pleased to announce its results for the second quarter and six months ended 30 June 2025 ("H1 2025").

 

Viktor Gladun, Chief Executive Officer of Nostrum Oil & Gas, commented:

 

"I am pleased to confirm Nostrum's positive results for the first half of 2025 and share further details in addition to what has been announced earlier in our operational update.

 

US$22.4 million EBITDA and an EBITDA margin of 35.0% in H1 2025 were achieved thanks to the stable operational and financial performance, despite relatively weaker product prices and the continuing decline of production from the mature Chinarevskoye field. A 65% increase in processed volumes with maximum facilities uptime showcase that Nostrum is a reliable business partner and well-positioned to become a major gas processor in the region.

 

On our upstream business, we have launched our 2025 limited-scale drilling programme for the Chinarevskoye field along with well workover and intervention works, and we continue to carefully assess Stepnoy Leopard development options, with a view to ensure compliance with license requirements and achieve the most favorable outcomes from both of these fields.

 

Looking forward, we are strongly committed to keeping health and safety as our top priority, and to striving to deliver value to all our stakeholders and the benefit of Kazakhstan."

 

H1 2025 Highlights:

 

Financial

 

·      H1 2025 revenue of US$64.1 million (H1 2024: US$65.3 million). Increases in titled production and processed volumes from Ural Oil & Gas LLP ("Ural O&G") feedstock and Chinarevskoye well workovers were offset by the natural decline in Chinarevskoye field production and a 16% average Brent crude oil price reduction (H1 2025 US$71.92/bbl vs H1 2024 US$83.70/bbl).

 

·      H1 2025 EBITDA1 of US$22.4 million and EBITDA margin of 35.0% (H1 2024 US$22.3 million and 34.2%, respectively).

 

·      A 41% reduction in operating expenses per barrel of processed volumes: H1 2025 US$4.4 (H1 2024 US$7.6).

 

·      H1 2025 Group positive net operating cashflows of US$6.2 million before one-off items (H1 2024 US$4.2 million), which was adversely impacted by a high level of sales receivables due to the timing of shipments of crude oil and condensate. After one-off payments of US$15.5 million under the management incentive plan (including associated social security payments), and limited capital expenditures on the Chinarevskoye and Stepnoy Leopard Fields the Group's unrestricted cash and cash equivalents balance reduced by US$14.5 million during H1 2025.

 

·      Unrestricted cash balance of US$135.9 million as at 30 June 2025 (31 March 2025: US$148.6 million, 31 December 2024: US$150.4 million). The Group's restricted cash balance (debt service retention account ("DSRA") and asset liquidation fund) was US$26.1 million as at 30 June 2025 (31 December 2024: US$25.9 million, 31 March 2025: US$26.2 million).

 

·      Net debt2 of US$473.1 million as at 30 June 2025 (31 March 2025: US$440.2 million, 31 December 2024: US$404.2 million). The Group's net debt increased due to US$27.9 million of interest capitalised on SUNs, a US$33.8 million amortisation of the fair value adjustment, US$8.3 million delayed SSN and SUN coupon payment, and a net US$14.5 million reduction in unrestricted cash balance. The increase was partially offset by the cancellation of US$5,628,000 outstanding Senior Secured Notes (SSNs) and US$9,629,836 Senior Unsecured Notes (SUNs) in April 2025, pursuant to the terms of the holding period trust deed dated 9 February 2023.

 

·      With respect to the US$8.3 million delayed SSN and SUN coupon payment, please refer to the Company's press releases dated 10 July, 22 July and 30 July 2025.

 

·      The Group remains focused on maximising facility uptime, controlling costs wherever possible, and improving efficiencies across all facets of business. At the same time, we are committed to allocating and utilising resources efficiently to support our growth projects.

 

Operational

 

·      Production and sales

 

o  A 39% increase in average daily titled production volumes (i.e. final products processed and owned by Nostrum) to 16,974 boepd in H1 2025 (H1 2024: 12,220 boepd). A 65% increase in total processed volumes (including condensate tolling volumes owned by third parties) to 24,619 boepd in H1 2025 (H1 2024: 14,919 boepd). Whilst production from the maturing Chinarevskoye field continues to decline naturally, Nostrum's titled production and processed volumes increased due to:

 

o  Ramp up of production by Ural O&G.

o  Production from well No.301 (producing from May 2024) and Chinarevskoye well workovers.

 

·      The titled production volume split was as follows:

Products
H1 2025
volumes
(boepd)
H1 2024
volumes
(boepd)
Y-on-Y
Change
(%)
H1 2025
product mix
(%)
H1 2024
product mix
(%)
Crude Oil
2,476
2,393
3.5%
14.6%
19.6%
Stabilised Condensate*
1,598
1,850
(13.6)%
9.4%
15.1%
LPG (Liquid Petroleum Gas)
3,165
1,983
59.6%
18.6%
16.2%
Dry Gas
9,735
5,994
62.4%
57.4%
49.1%
Total
16,974
12,220
38.9%
100.0%
100.0%

*Stabilised condensate volumes exclude Ural O&G processed volumes for which Nostrum receives a fixed tolling fee

 

·      A 49% increase in average daily sales volumes to 15,555 boepd in H1 2025 (H1 2024: 10,475 boepd), reflecting the increase in titled production. The difference between titled production and sales volumes is primarily due to the internal consumption of dry gas produced and timing of product deliveries, which leads to inventory increases or decreases at period end.

 

·      Chinarevskoye drilling programme

 

The Company's Chinarevskoye limited-scale drilling programme for 2025 targets the most economic subsurface opportunities while also ensuring compliance with license obligations. In August 2025 the Company commenced drilling operations on the well Ch-116_1, which is targeting the Mullinski reservoir for initial oil depletion, after which it is expected to be converted to a water-injector well. In parallel, the Company continues to carry out optimised well workovers to minimise production decline.

 

·      Stepnoy Leopard Fields

 

In April 2025, the Company secured approval from Kazakhstan's Ministry of Energy for a phased full-field development plan (FDP) for the Stepnoy Leopard Fields, which marks a key milestone in advancing the commercial potential of the upstream asset, enabling optimized capital deployment. As part of the ongoing progress, the Company continues to advance design and engineering works, and limited procurement to ensure compliance with license commitments.

 

·      Processing of Ural O&G products

 

Throughout H1 2025, the Company continued processing raw gas and condensate volumes from Ural O&G, resulting in the increases in titled production and processed volumes. As announced on 21 March 2025, the Group signed a new agreement with Ural O&G to extend third-party hydrocarbon processing terms until May 2031, strengthening cash flows, supporting efficient plant operations, and facilitating cost-effective development of the Rozhkovskoye field.

 

HSE and ESG

 

·      Zero fatalities among employees and contractors during operations in H1 2025 (H1 2024: zero).

 

·      Total Recordable Incidents Rate (incidents per million man-hours) of 1.3 in H1 2025 (H1 2024:0.64).

 

·      Zero Lost Time Injury Rate (incidents per million man-hours) in H1 2025 (H1 2024: zero).

 

·      2,236 tonnes of air emissions emitted in H1 2025 against 5,188 tonnes permitted for 2025 under the Kazakhstan Environmental Code.

 

·      Safety of all staff and contractors, along with a commitment to sustainable operations, remains the Group's priority.

 

Notes to press release

1 EBITDA is a non-IFRS measure and is defined as profit / loss before tax and depreciation, depletion and amortisation, share-based compensation, foreign exchange gains / losses, finance costs, interest income, other income, other expenses, and one-off items.

2 Net debt is defined as total debt (notes payable and accumulated interest) less cash and cash equivalents and DSRA 

 

The Company's H1 2025 Interim Financial report is available to download from its website:

 

Download: H1 2025 Interim Financial Report

 

LEI: 2138007VWEP4MM3J8B29

 

 

Further information

For further information please visit www.nostrumoilandgas.com

 

Further enquiries

Nostrum Oil & Gas PLC                                                

Petro Mychalkiw

Chief Financial Officer

ir@nog.co.uk                                                                                                     

 

Instinctif Partners - UK                                                                                        

Galyna Kulachek

+ 44 (0) 207 457 2020

nostrum@instinctif.com

 

Notifying person

Thomas Hartnett

Company Secretary

 

About Nostrum Oil & Gas

 

Nostrum Oil & Gas PLC is an independent mixed-asset energy company with world-class gas processing facilities and export hub in north-west Kazakhstan. Its shares are listed on the London Stock Exchange (ticker symbol: NOG). The principal producing asset of Nostrum Oil & Gas PLC is the Chinarevskoye field which is operated by its wholly-owned subsidiary Zhaikmunai LLP, which is the sole holder of the subsoil use rights with respect to the development of the Chinarevskoye field. The Company also owns an 80% interest in Positiv Invest LLP, which holds the subsoil use rights for the "Kamenskoe" and "Kamensko-Teplovsko-Tokarevskoe" areas in the West Kazakhstan region (the Stepnoy Leopard Fields).

 

Forward-Looking Statements

 

Some of the statements in this document are forward-looking. Forward-looking statements include statements regarding the intent, belief and current expectations of the Company or its officers with respect to various matters. When used in this document, the words "expects", "believes", "anticipates", "plans", "may", "will", "should" and similar expressions, and the negatives thereof, are intended to identify forward-looking statements. Such statements are not promises nor guarantees and are subject to risks and uncertainties that could cause actual outcomes to differ materially from those suggested by any such statements.

 

No part of this announcement constitutes, or shall be taken to constitute, an invitation or inducement to invest in the Company or any other entity, and shareholders of the Company are cautioned not to place undue reliance on the forward-looking statements. Save as required by the relevant listing rules and applicable law, the Company does not undertake to update or change any forward-looking statements to reflect events occurring after the date of this announcement.

 

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