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

Nostrum Oil & GasAnnouncement

29/08/2025 07:00

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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 EBITDA(1) 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 debt(2) 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   H1 2024     Y-on-Y       H1 2025       H1 2024

                             volumes   volumes     Change       product mix   product mix

                             (boepd)    (boepd)    (%)          (%)            (%)
 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
(https://www.nostrumoilandgas.com/investors/summary-financials/#quarterly)

 

LEI: 2138007VWEP4MM3J8B29

 

 

Further information

For further information please visit www.nostrumoilandgas.com
(http://www.nostrumoilandgas.com)

 

Further enquiries

Nostrum Oil & Gas PLC
 

Petro Mychalkiw

Chief Financial Officer

ir@nog.co.uk (mailto:ir@nog.co.uk)
 
 

 

Instinctif Partners -
UK
 

Galyna Kulachek

+ 44 (0) 207 457 2020

nostrum@instinctif.com (mailto: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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