DJ 2025 Full Year Results Announcement
Gulf Keystone Petroleum Ltd (GKP)
2025 Full Year Results Announcement
19-March-2026 / 07:00 GMT/BST
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19 March 2026
Gulf Keystone Petroleum Ltd. (LSE & OSE: GKP)
("Gulf Keystone", "GKP", "the Group" or "the Company")
2025 Full Year Results Announcement
Gulf Keystone, a leading independent operator and producer in the Kurdistan Region of Iraq, today announces its results
for the full year ended 31 December 2025.
Jon Harris, Gulf Keystone's Chief Executive Officer, said:
"We delivered a strong operational and financial performance in 2025 in line with guidance and another year of zero
Lost Time Incidents. Free cash flow generation enabled the continued execution of our strategy as we balanced
investments in production enhancing projects with USD50 million of dividends. Kurdistan pipeline exports restarted in
September 2025, representing a significant milestone for the Company and broader industry.
We started 2026 positively, with production increasing above 44,000 bopd towards the end of February and consistent
export payments generating cash flow. We have also been making good progress towards a return to international prices,
with lower discounts to Brent visible in 2025 export invoices.
Since the outbreak of the regional conflict, we have shut-in the Shaikan Field as a precaution and taken measures to
protect staff. We have also suspended 2026 guidance until production restarts. We are hopeful that the security
situation will stabilise soon and we are ready to quickly restart production and exports once it is safe to do so. We
are in a strong position to navigate the disruptions, with a robust, debt-free balance sheet and significant
flexibility to reduce expenditures.
Following careful consideration of these factors and the current outlook, the Board has approved the declaration of a
USD12.5 million interim dividend. I would like to thank all of GKP's staff, shareholders and broader stakeholder base for
their continued support at this challenging time."
Highlights to 31 December 2025 and post reporting period
Operational
-- Strong operational delivery in 2025:
- Gross average production of 41,560 bopd, up 2% relative to the prior year (2024: 40,689 bopd) and towards the
top end of tightened 40,000 - 42,000 bopd guidance range
- Successful transition from trucking sales to pipeline exports via the Iraq-Türkiye Pipeline ("ITP") on 27
September 2025
- Sanction of water handling facilities at PF-2 to unlock future production growth and reduce reservoir risk
- Safe operations, with zero Lost Time Incidents for over three years despite busy work programme and security
disruptions
-- Gross average production of c.41,300 bopd in 2026 year to 28 February:
- Gross average production had increased above 44,000 bopd towards the end of February 2026 reflecting the
successful completion of well workovers and interventions
-- On 28 February 2026, the Shaikan Field was shut in as a safety precaution following the strikes by the US and
Israel on Iran and the subsequent retaliatory strikes in the Middle East, including in Kurdistan
- Gross average production of c.32,100 bopd in 2026 year to 17 March, with estimated annualised losses to date
from the shut-in of approximately 840 bopd a week
- The Company is ready to restart production and exports quickly with an improvement in the security environment
Shaikan Field estimated reserves
-- The Company estimates gross 2P reserves of 416 MMstb as at 31 December 2025 (31 December 2024 internal estimate:
443 MMstb)
- Reduction relative to prior year reflects gross production of 15 MMstb in 2025 and minor revisions of 12 MMstb
Financial
-- Strong financial performance, with disciplined investment in production enhancing projects, strict cost control and
free cash flow generation underpinning shareholder distributions
-- Revenue based on sales invoices, a non-IFRS measure, increased 28% to USD193.1 million (2024 revenue: USD151.2
million), reflecting the production increase and average realised price of USD33.9/bbl (2024: USD26.8/bbl)
- Average realised price of USD50.5/bbl for 2025 exports sales, a significant improvement on the price achieved
from 2025 local sales of USD27.6/bbl and representing a USD13.4/bbl discount to Dated Brent
- Cash receipts for 2025 exports sales equated to USD30/bbl as per the interim exports agreements
-- Adjusted EBITDA up 46% to USD111.4 million in 2025 (2024: USD76.1 million), driven by resilient production, cost
control in line with guidance and the sharp increase in realised prices visible in exports sales invoices
- Stable gross Opex per barrel of USD4.3/bbl relative to prior year (2024: USD4.4/bbl), with 18% reduction in other G
&A expenses to USD9.3 million (2024: USD11.4 million)
-- Net capital expenditure of USD38.8 million (2024: USD18.3 million), in line with guidance and reflecting investment in
PF-2 safety upgrades, well workovers and initial expenditure on PF-2 water handling installation
-- Free cash flow of USD29.1 million (2024: USD65.4 million), with the increase in Adjusted EBITDA offset by incremental
net capex and a working capital outflow related to 2025 exports sales receivables
- 2025 exports sales receivables reflect the timing difference of around two months between production and
payment and the differential between invoiced realised prices and cash receipts of USD30/bbl
- The amounts receivable at the year-end related to the timing difference of exports sales have since been
collected as expected in 2026
-- USD50 million returned to shareholders in 2025 through semi-annual dividend payments in April and September
-- 2025 year-end cash balance of USD78.2 million (31 December 2024: USD102.3 million) and no debt
- Cash balance as at 18 March 2026 of USD89.1 million reflecting consistent payments for exports sales in the year
to date
Dual listing on Euronext Growth Oslo
-- On 18 February 2026, the Company's shares began trading on Euronext Growth Oslo operated by the Oslo Stock Exchange
("OSE")
-- Arrangements are being progressed to enable cross-border transfers of the Company's shares between Euronext Growth
Oslo and the London Stock Exchange ("LSE") on or around 1 April 2026
Outlook
-- Considering the deterioration of the regional security environment and the production shut-in, the Company has
placed under review its previous 2026 gross average production guidance of 37,000 - 41,000 bopd
-- The Company has also suspended its previous 2026 net capex, net operating costs and other G&A expenses guidance
(respectively USD40-USD50 million, USD55-USD60 million and less than USD10 million)
-- The Company retains a robust balance sheet and significant flexibility to reduce its work programme and cost base
if the production shut-in persists
-- The current interim exports agreements, which expire on 31 March 2026, are expected to be extended while a review
by an international independent consultant of exports invoices and contractual costs progresses
- On completion of the review, the Company anticipates a reconciliation to full PSC entitlement at international
prices, both for future sales and volumes sold under the interim agreements, as well as the negotiation of
longer-term exports agreements
-- The Company continues to progress its negotiations with the Kurdistan Regional Government ("KRG") regarding a
number of historical Shaikan commercial matters, including the settlement of past oil sales arrears and other
KRG-related assets and liabilities
Shareholder distributions
-- Gulf Keystone remains committed to distributing excess cash to shareholders according to its established approach
to shareholder returns:
- The Board reviews the Company's capacity to pay a dividend on a semi-annual basis, considering the liquidity
needs of the business and the operating environment and
- share buybacks are considered opportunistically throughout the year
-- Consistent payments for export sales have continued in 2026 to date, demonstrating the viability of the new export
arrangements and generating positive cash flow. However, the recent deterioration in the regional security
environment has impacted production and the Shaikan Field remains shut-in as a precautionary measure
-- The Board has carefully considered these factors, the current security outlook, the Company's debt-free balance
sheet and ability to reduce capex and costs. Consequently, it has decided to declare an interim dividend of USD12.5
million, equivalent to USD0.0575 per Common Share
- The dividend will be paid on 27 April 2026, based on a record date of 10 April 2026 and ex-dividend date of 9
April 2026
-- The Board intends to review the feasibility of a supplementary dividend payment following a restart of production,
exports and payment receipts
Investor & analyst presentation
Gulf Keystone's management team will be hosting a presentation for analysts and investors at 10:00am GMT (11:00am CET)
today via live audio webcast:
https://brrmedia.news/GKP_FY25
Sell-side analysts are requested to join the meeting via the dial-in details provided to them separately and ask
questions verbally. Investors are encouraged to pre-submit written questions via the webcast registration page, with
the opportunity to submit questions live during the presentation.
(MORE TO FOLLOW) Dow Jones Newswires
March 19, 2026 03:01 ET (07:01 GMT)
DJ 2025 Full Year Results Announcement -2-
A recording of the presentation will be made available on Gulf Keystone's website.
Disclosure regulation:
This announcement contains information which is considered to be inside information pursuant to the UK Market Abuse
Regulation ("UK MAR") and the EU Market Abuse Regulation ("EU MAR") and is subject to the disclosure requirements
pursuant to UK MAR, EU MAR article 17 and section 5-12 of the Norwegian Securities Trading Act. This stock exchange
announcement was published on behalf of Gulf Keystone by Aaron Clark, Head of Investor Relations and Corporate
Communications of Gulf Keystone, at the date and time as set out above.
Enquiries:
Gulf Keystone: +44 (0) 20 7514 1400
Aaron Clark, Head of Investor Relations
& Corporate Communications aclark@gulfkeystone.com
FTI Consulting +44 (0) 20 3727 1000
Ben Brewerton
GKP@fticonsulting.com
Nick Hennis
or visit: www.gulfkeystone.com
Notes to Editors:
Gulf Keystone Petroleum Ltd. (LSE & OSE: GKP) is a leading independent operator and producer in the Kurdistan Region of Iraq. Further information on Gulf Keystone is available on its website: www.gulfkeystone.com
Disclaimer
This announcement contains certain forward-looking statements that are subject to the risks and uncertainties associated with the oil & gas exploration and production business. These statements are made by the Company and its Directors in good faith based on the information available to them up to the time of their approval of this announcement but such statements should be treated with caution due to inherent risks and uncertainties, including both economic and business factors and/or factors beyond the Company's control or within the Company's control where, for example, the Company decides on a change of plan or strategy. This announcement has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. This announcement should not be relied on by any other party or for any other purpose.
Chair's statement
Gulf Keystone delivered a strong operational and financial performance in 2025, with gross average production of 41,560 bopd reflecting an increase of 2% compared to the prior year. This was despite some operational disruptions in the summer due to trucking shortages and security issues related to neighbouring oil fields which caused a temporary field shutdown. Net capital expenditure and operating costs were delivered in line with annual guidance, and an important project to install produced water handling facilities at PF-2 was sanctioned during the year using lease financing to minimise upfront expenditures. I am pleased to report that the Company's safety performance has also remained exemplary, with another year without a Lost Time Incident.
The robust operational performance, coupled with the Company's disciplined approach to capital and operating cost management, meant that significant free cash flow was generated during the year and this enabled the Company to distribute USD50 million in dividends to our shareholders.
A highlight of 2025 was the successful restart of international pipeline exports from the Shaikan Field on 27 September 2025. The reopening of the Iraq-Türkiye Pipeline was the result of two and a half years of sustained engagement by the Company and other International Oil Companies with key Government stakeholders. When the pipeline closed in 2023, the Company had to rapidly respond to the revenue shortage by winding down a large development programme, reducing its cost base and re-establishing a presence in the local sales market. The signing of a tripartite interim export agreement with the Kurdistan Regional Government ("KRG") and Federal Government of Iraq ("FGI"), as well as the commencement of consistent crude oil liftings and payments by an international oil trading company, is expected to allow a normalisation of export operations with improved cash generation.
The Company is now working to negotiate and finalise long term export agreements and to secure payment arrangements with the KRG and FGI, which are commensurate with the Shaikan PSC terms. These developments should unlock an improved investment environment for the Kurdistan oil and gas industry and a strong foundation for future field development. With the Shaikan Field's large remaining reserves and resources base, there is a significant opportunity ahead to invest in profitable production growth and create additional shareholder value.
We were pleased to announce in September 2025 that the Company was exploring a potential dual listing of the Company's shares on Euronext Growth Oslo, operated by the Oslo Stock Exchange ("OSE"). On 13 February 2026, the Company completed a small retail offering connected with the listing of just over 500,000 shares, welcoming around 700 new shareholders. On 18 February 2026, GKP's shares began trading on Euronext Growth Oslo for the first time.
The Oslo listing will provide investors active in the Norwegian markets with better access to GKP's shares and is expected to improve the liquidity of the Company's share capital. It will also enable the Company to attract new institutional and retail investors from a capital market that knows GKP and Kurdistan well and who have been very proactive in financing the oil and gas industry in the region. In early April, cross-border transfers to Oslo will become possible for all holders of the UK-listed shares and, in due course, the Company expects to upgrade its listing to the OSE's Main Market. As a Board, we are excited about engaging with new investors in Norway and would like to thank the existing GKP shareholders for their support during the dual listing process.
While the Company's medium-term outlook and potential for value creation remain strong, we are currently adapting to the recent deterioration in the regional security environment following the strikes by the US and Israel on Iran on 28 February 2026 and subsequent retaliatory strikes in the Middle East, including in Kurdistan. The Company's assets have not been impacted as at the date of this report and measures have been taken to protect staff. However, production has been shut-in as a precautionary measure since the hostilities began, in line with other oil fields in Kurdistan and Federal Iraq. GKP is in a strong position to weather the storm, with a robust balance sheet, and we are hopeful that the security situation will stabilise in the near future and production and exports can resume. Notwithstanding this, the Company is taking prudent steps to identify initiatives to reduce capital, operating and running costs if this proves to be necessary.
Balancing investment in profitable production growth with shareholder distributions remains central to the Company's strategy and our established approach to shareholder distributions is to review the capacity for dividend payments around the full and half year results, while considering share buybacks opportunistically throughout the year. Consistent with this approach, the Board has carefully considered the regional security outlook and the Company's current cash position and proven ability to significantly reduce costs if required. Following this review, the Board has decided to declare an interim dividend of USD12.5 million, to be paid on 27 April 2026, and will consider the feasibility of a supplementary dividend payment following the restart of production, exports and payment receipts.
Finally, in June 2025, along with the other members of the GKP Board, I was delighted to visit the Company's business operations in Erbil and the Shaikan Field. During the trip, we met senior officials from the Kurdistan Regional Government, the Ministry of Natural Resources and various local authorities, spent time with the GKP team and visited the field facilities, well sites and local community development projects. It is clear that GKP has made a significant contribution to Kurdistan during its long history of investment and operations in the region and, despite the current security challenges, we believe it will continue to do so. The Shaikan Field remains a world-class asset and the Board would like to thank the Company's management team and staff for their continued efforts to realise its full potential.
David Thomas
Non-Executive Chair
18 March 2026
CEO review
2025 was a significant year of transition for the Company, defined by the restart of Kurdistan pipeline exports in September 2025 after over two and a half years of suspension. Our operational and financial delivery remained consistent, with production towards the top end of tightened guidance and investments in production-enhancing projects, primarily the sanction of water handling at PF-2, balanced with USD50 million of dividends paid to shareholders. While the near-term outlook is uncertain considering the recent deterioration in the regional security environment, the Company is in a strong position to navigate this period of turbulence with our robust cash position, flexibility to moderate our costs should the need arise and ability to swiftly return to production and exports once the current situation stabilises.
2025 performance
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March 19, 2026 03:01 ET (07:01 GMT)
