REG - Nostrum Oil & Gas - Financial results for Q3 and 9M 2025

Nostrum Oil & GasAnnouncement

25/11/2025 07:00

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RNS Number : 8165I  Nostrum Oil & Gas PLC  25 November 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, 25 November 2025

 

 

 

Financial results for the third quarter and nine months ended 30 September
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 financial results for the third quarter
and nine months ended 30 September 2025 (the "Results").

 

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

 

"Nostrum remains firmly focused on strengthening its commitment to strong
leadership, strategic growth and the highest standards of health and safety. I
am pleased to welcome Robert Wynne to the Board of Directors as a
Non-Executive Director, bringing extensive commercial experience and technical
expertise in the oil and gas industry.

During the first nine months of 2025, Nostrum demonstrated resilience and
disciplined execution despite a challenging environment marked by weaker oil
prices and the natural production decline of the mature Chinarevskoye field.
We delivered an EBITDA of US$26.8 million, complemented by a 28% reduction in
operating expenses per barrel processed, which reflects our improved
processing efficiencies and growth in third-party volume
processing.

Additionally, we maintained a strong liquidity position, with net positive
operating cash flow over the nine months of US$21.6 million before one-off
items and unrestricted cash of US$147.3 million as of the period end. These
results highlight the stability of our operations and the reliability of our
infrastructure.

 

Looking ahead, we remain deeply committed to create sustainable value for all
our stakeholders and contributing positively to Kazakhstan's energy sector."

 

 

9M 2025 Highlights:

 

Financial

·      Revenue of US$85.5 million (9M 2024: US$101.4 million). The
increase in titled production and processed volumes from Ural Oil & Gas
LLP ("Ural O&G") feedstock and continued well workovers had a positive
impact on revenues. However, this was offset by natural production decline at
the Chinarevskoye field and a 14% decrease in the average Brent crude oil
price (US$70.95/bbl in 9M 2025 vs US$82.6/bbl in 9M 2024).

 

·      EBITDA(1) of US$26.8 million (9M 2024: 34.7 million) and an
EBITDA margin of 31.3% (9M 2024: 34.2%).

 

·      A 28% reduction in average operating expenses per barrel of
processed volumes: US$4.7 during 9M 2025: (9M 2024: US$6.5).

 

·      The Group's net positive operating cashflow was US$21.6 million,
before one-off items. After limited capital expenditures on the Chinarevskoye
and Stepnoy Leopard fields and one-off payments under the management incentive
plan, the Group's unrestricted cash and cash equivalents balance reduced by
US$3.1 million during 9M 2025.

 

·      The unrestricted cash and cash equivalents balance of US$147.3
million as at 30 September 2025 (30 June 2025: US$135.9 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$26.3 million as
at 30 September 2025 (30 June 2025: US$26.1 million, 31 December 2024: US$25.9
million).

 

·      Net debt(2) of US$501.3 million as at 30 September 2025 (30 June
2025: US$473.1million, 31 December 2024: US$404.2 million). The Group's net
debt mainly increased due to US$42.7 million payment-in-kind interest
capitalised on its Senior Unsecured Notes (SUNs), US$14.2 million accrued cash
interest and a US$50.1 million amortisation of the fair value adjustment. The
increase was partially offset by the cancellation of US$5,628,000 Senior
Secured Notes (SSNs) and US$9,629,836 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,
30 July, 2 September, 16 September, 24 September and 6 October 2025.

 

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

 

Operational

 

·      Production and sales

 

·      A 33% increase in average processed volumes (including third
party condensate tolling volumes) to 23,596 boepd in 9M 2025 (9M 2024: 17,748
boepd). An 18.5% increase in average daily titled production volumes (i.e.
final products processed and owned by Nostrum) to 16,300 boepd in 9M 2025 (9M
2024: 13,758 boepd). These increases were achieved through continuing to
process ramping up feedstock from Ural O&G, and managing expected decline
in Chinarevskoye production through well workovers.

 

·      The titled production volume split was as follows:

 Products                    9M 2025   9M 2024     Y-on-Y       9M 2025       9M 2024

                             volumes   volumes     Change       product mix   product mix

                             (boepd)    (boepd)    (%)          (%)            (%)
 Crude Oil                   2,403     2,500       (3.9)%       14.7%         18.2%
 Stabilised Condensate*      1,559     1,824       (14.5)%      9.6%          13.3%
 LPG (Liquid Petroleum Gas)  3,038     2,335       30.1%        18.6%         17.0%
 Dry Gas                     9,300     7,099       31.0%        57.1%         51.5%
 Total                       16,300    13,758      18.5%        100.0%        100.0%

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

 

·      A 19.9% increase in average daily sales volumes to 14,339 boepd
in 9M 2025 (9M 2024: 11,956 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 may lead to inventory increases or decreases at the
period end.

 

·      Chinarevskoye drilling and workover programme

 

The Company's Chinarevskoye limited-scale drilling programme for 2025 is
targeting the most economic subsurface opportunities while also ensuring
compliance with license obligations. On 13 October 2025, the Company
successfully completed drilling operations on well No.116_1, which was
followed by well completion and testing over the following three weeks. In
parallel, the Company continues to carry out optimised well workovers to
minimise production decline and enhance operational efficiency.

 

·      Stepnoy Leopard Fields

 

In April 2025, the Company received formal approval from Kazakhstan's Ministry
of Energy for a phased Full-Field Development Plan (FDP) for the Stepnoy
Leopard Fields. The Company is actively progressing with detailed design and
engineering activities, alongside selective procurement, to ensure compliance
with license commitments. Key development projects, including the pipeline to
Chinarevskoye and the sour gas treatment infrastructure, continue to undergo
rigorous review to ensure alignment with project objectives and regulatory
requirements.

 

·      Processing of Ural O&G products

 

Throughout 9M 2025, the Company continued processing raw gas and condensate
volumes from Ural O&G, resulting in increases in titled production and
processed volumes. As announced on 21 March 2025, the Company signed a new
agreement with Ural O&G, extending third-party hydrocarbon processing
terms through 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 9M 2025 (9M 2024: zero).

 

·      Total Recordable Incidents Rate (incidents per million man-hours)
of 0.81 in 9M 2025 (9M 2024:0.84).

 

·      Zero Lost Time Injury Rate (incidents per million man-hours) in
9M 2025 (9M 2024: zero).

 

·      3,087 tonnes of air emissions emitted in 9M 2025 against 5,188
tonnes permitted for 2025 under Kazakhstan's 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 9M 2025 interim condensed consolidated financial statements are
available to download from its website:

 

Download: 9M 2025 Interim Condensed Consolidated Financial Statements
(https://www.nostrumoilandgas.com/investors/summary-financials/#quarterly)

 

LEI: 2138007VWEP4MM3J8B29

 

Further information

For further information please visit www.nog.co.uk (http://www.nog.co.uk)

 

Further enquiries

Nostrum Oil & Gas PLC
 

Elena Zhuravleva

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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