Pharos Energy Posts Higher Revenue as Ratio Takeover Nears Court Sanction
Pharos Energy reported sharply higher revenue and cash flow for the first half of 2026, but the results carry little weight for shareholders now that Ratio Petroleum’s takeover has been approved and awaits court sanction.
Pharos Energy (LON: PHAR), the oil and gas explorer and producer with assets in Vietnam and Egypt, said first-half revenue rose 30% to $85.5m, from $65.6m a year earlier, as operating cash flow more than doubled to $34.9m.Group production edged up to 5,650 barrels of oil equivalent per day, from 5,642 boepd in the same period last year.
The shares were trading at 29.6p in early trading today, down 1.33% from Tuesday’s close of 30.0p, having opened at 29.5p and traded between 29.5p and 30.1p. Volume stood at 82,020 shares. The muted reaction reflects the shares trading close to the terms of Ratio Petroleum’s recommended cash acquisition rather than any read-through from the results themselves.
The higher revenue was driven by stronger realised oil prices: Vietnam crude averaged $99.10 a barrel, up 28% on the year, while Egyptian crude averaged $86.36 a barrel, up 31%. Cash generated from operations reached $50.6m, and Pharos ended June with $45.4m in cash and no debt.
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Pharos Energy’s H1 2026 revenue, operating cash flow and cash balance all rose year-on-year versus H1 2025 (six months ended 30 June, $ millions)
Despite the stronger operating performance, Pharos posted a net loss of $0.4m, an improvement on the $2.8m loss a year earlier, after a tax charge of $16.6m reflecting Vietnam’s roughly 50% statutory tax rate.
Underpinning our operational performance is our continued debt-free balance sheet.
Katherine Roe, Chief Executive Officer, Pharos Energy plc
The results land against the backdrop of Ratio Petroleum Energy LP’s recommended cash takeover, agreed on the 24th of June after Ratio saw off a competing offer from Serica Energy plc, which lapsed on the 13th of August. Shareholders approved the scheme on the 28th of August, and completion now awaits sanction by the court, expected in the first half of 2027.
Because the deal is pending, the board withheld its normal interim dividend in favour of a 4.0p payment aligned with the scheme’s timetable, and auditor Ernst & Young flagged a “material uncertainty” over going concern, tied to the pending change of control; the auditor’s conclusion was not modified.
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