REG - Nostrum Oil & Gas - Full Year Results

Nostrum Oil & GasAnnouncement

29/04/2026 07:00

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RNS Number : 3051C  Nostrum Oil & Gas PLC  29 April 2026

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RELEVANT LAWS OF THAT JURISDICTION

 

FOR IMMEDIATE RELEASE

 

London, 29 April 2026

 

 

Full Year Results for the Year Ended 31 December 2025

 

Nostrum Oil & Gas PLC (LSE: NOG) ("Nostrum", or the "Company" and together
with its subsidiaries, the "Group"), an independent energy company with gas
processing infrastructure and export hub in north-west Kazakhstan, is pleased
to announce its results for the twelve months ended 31 December 2025 ("FY
2025"), together with the publication of its 2025 Annual Report.

 

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

 

"2025 was a year of disciplined transformation for Nostrum amid a challenging
macroeconomic backdrop. We maintained LTI-free operations and continued to
strengthen our safety culture, governance framework and internal controls,
while further developing the capabilities of our people. Financial performance
remained resilient, supported by third-party processing volumes and cost
discipline, despite lower commodity prices and natural production decline at
the Chinarevskoye field.

 

During the year, we also advanced a focused review of our strategic and
capital allocation priorities across the Group's asset base, including our
development options at the Chinarevskoye and Stepnoy Leopard fields. At the
same time, we continued to preserve liquidity, improve operational efficiency
and engage constructively with stakeholders on the extension of our debt
maturity profile.

 

Looking ahead, our priorities remain clear: safe and reliable operations,
financial resilience, and disciplined execution of our strategic objectives to
support long-term value creation."

 

FY 2025 Highlights:

 

Financial

·       Revenue was US$118.0 million (FY 2024: US$137.1 million). The
decrease is a combined result of a natural production decline at the
Chinarevskoye field (approximately 21% decrease in production) and a 14.3%
decrease in the average Brent crude oil price (US$69.1/bbl in FY 2025 vs
US$80.6/bbl in FY 2024). However, this was partially offset by increase in
feedstock from Ural Oil & Gas LLP ("Ural O&G") and the related titled
and processed volumes.

 

·       EBITDA(1) of US$37.6 million (FY 2024: 48.9 million) and an
EBITDA margin of 31.9% (FY 2024: 35.7%).

 

·       The Group generated US$29.9 million of operating cash flow
before one-off items (FY 2024: US$33.1 million). 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$7.1 million during FY 2025.

 

·       The unrestricted cash and cash equivalents balance was US$143.3
million as at 31 December 2025 (31 December 2024: US$150.4 million). The
Group's restricted cash balance (debt service retention account ("DSRA") and
asset liquidation fund) was US$26.6 million as at 31 December 2025 (31
December 2024: US$25.9 million).

 

·       Net debt(2) was US$541.5 million as at 31 December 2025 (31
December 2024: US$404.4 million). The Group's net debt increased mainly due to
US$57.5 million payment-in-kind interest capitalised on its Senior Unsecured
Notes (SUNs), US$16.8 million accrued cash coupon and a US$66.0 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.

 

·       The accrued interest on the Group's Notes, which was due for
payment on 30 June 2025 and 31 December 2025, remains outstanding as a result
of the continuing payment administration issue which currently does not permit
the Group to make payments on the Notes through the clearing systems. The
Group has applied for the applicable regulatory licences to make such payment.
The delay in the coupon payments does not reflect any issue of the Group's
Issuer's solvency or liquidity. All underlying funds for making the interest
payments are available and secured. For further details please refer to the
Company's press releases dated 10 July, 22 July, 30 July, 2 September, 16
September, 24 September, 6 October 2025 and 2 January 2026.

 

·       The Group remains focused on maximising facility uptime,
controlling costs wherever possible and improving efficiencies across the
business. At the same time, capital allocation remains disciplined and focused
on preserving liquidity while assessing development opportunities across the
asset base.

 

Operational

 

Production and sales

 

·       A 23.3% increase in average daily processed volumes (i.e.
Chinarevskoye and Ural O&G feedstock, including condensate tolling) to
24,431 boepd in FY 2025 (FY 2024: 19,831 boepd). This includes a 12.9%
increase in average daily titled production volumes (i.e. Chinarevskoye
production and dry gas and LPG produced from Ural O&G feedstock) to 16,867
boepd in FY 2025 (FY 2024: 14,935 boepd). These increases were achieved
through continuing to process the ramping up feedstock from Ural O&G and
managing the expected decline in Chinarevskoye production through well
workovers.

 

·       The split of the titled production volumes (i.e. Chinarevskoye
production and dry gas and LPG produced from Ural O&G feedstock) was as
follows:

 

 Products                    FY 2025 volumes (boepd)  FY 2024 volumes (boepd)  Y-on-Y change (%)      FY 2025 product mix     FY 2024 product mix
                                                                                                      (%)                     (%)
 Crude Oil                   2,343                    2,536                    (7.6)%                 13.9%                   17.0%
 Stabilised Condensate       1,664                    1,897                    (12.3)%                9.9%                    12.7%
 LPG (Liquid Petroleum Gas)  3,162                    2,537                    24.6%                  18.7%                   17.0%
 Dry Gas                     9,698                    7,965                    21.8%                  57.5%                   53.3%
 Total                       16,867                   14,935                   12.9%                  100.0%                  100.0%

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

 

·       There was a 16.2% increase in average daily sales volumes to
15,146 boepd in FY 2025 (FY 2024: 13,038 boepd), reflecting higher titled
production. The difference between titled production and sales volumes was
primarily due to the internal consumption of dry gas produced and the timing
of product deliveries, which may lead to inventory increases or decreases at
period end.

 

Chinarevskoye drilling and workover programme

 

The Company's Chinarevskoye limited-scale drilling programme for 2025 targeted
the most economic subsurface opportunities while also ensuring compliance with
license obligations.

 

On 13 October 2025, the Company successfully completed drilling operations on
well 116_1 within the planned timetable and at a lower-than-budgeted cost.
After perforation, stimulation and flowline tie-in, the well was brought on
production on 21 November 2025, achieving initial production rates in line
with management's expectations. In parallel, during the year the Company
continued to carry out targeted well workovers to minimise production decline
and support operational efficiency.

 

A comprehensive review and assessment of potential well workovers and new
drilling prospects is underway.

 

Stepnoy Leopard Fields

 

A comprehensive review of the overall development strategy for the Stepnoy
Leopard Fields is underway, considering project economics, infrastructure
access, sales delivery points, compliance with regulatory and license
requirements and capital allocation priorities.

 

Processing of Ural O&G products

 

Throughout FY 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, supporting stable processing cash flows, efficient
utilisation of the Group's facilities, and phased development of the
Rozhkovskoye field.

 

HSE and ESG

 

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

 

·       Total Recordable Incidents Rate (incidents per million
man-hours) of 0.92 in 2025 (2024:0.63).

 

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

 

·       4,047 tonnes of air emissions emitted in 2025 against 5,200
tonnes permitted for 2025 under the Kazakhstan Environmental Code.

 

·       The safety of employees and contractors, together with a
commitment to responsible operations, remains the Group's priority.

 

2026 production guidance

Average daily production for the Chinarevskoye field in 2026 is currently
expected to be in the range of 5,000 boepd to 6,000 boepd.

 

Results materials for FY 2025

 

The Company's results materials will be available to download on Nostrum's
website.

Download: 2025 Annual Report
(https://www.nostrumoilandgas.com/investors/reports-presentations/)

 

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.

 

LEI: 2138007VWEP4MM3J8B29

 

Further information

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

 

Further enquiries

Nostrum Oil & Gas PLC

Elena Zhuravleva

Chief Financial Officer

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

 

TEAM
LEWIS
 
 

Galyna Kulachek

+ 44 (0) 20 7802 2664

nostrum@teamlewis.com (mailto:nostrum@teamlewis.com)

 

 

About Nostrum Oil & Gas

 

Nostrum Oil & Gas PLC is an independent energy company with gas processing
infrastructure and an 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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