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.
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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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Safe operations are our number one priority at Gulf Keystone and we were pleased to record another year without a Lost Time Incident ("LTI") in 2025. Our continued strong safety performance was delivered in the context of disruptions to production and field operations over the summer due to trucking shortages and security issues, the transition from local sales to exports in September 2025 and a number of active work fronts across our facilities and well sites. In January 2026 we celebrated three years without an LTI. We have extended our track record of LTI-free days to over 1,150 as at the date of this report and have gone more than a year without a recordable incident.
Gross average production in 2025 was 41,560 bopd, towards the top end of the Company's tightened guidance range of 40,000 - 42,000 bopd and 2% higher than the prior year (2024: 40,689 bopd). Cumulative volumes from the Shaikan Field since commercial production began passed 150 million barrels in November 2025, which is testament to the enduring quality of the asset.
Local market demand for Shaikan Field crude was consistently strong between January and May 2025, enabling monthly gross average production above 45,000 bopd. Production reduced from June to August because of trucking shortages and security disruptions caused by drone attacks on other oil fields in the region, the latter leading to the temporary shut-in of the Shaikan Field between 15 and 31 July 2025. The total loss of gross production due to these factors amounted to approximately 1.3 MMstb, or approximately 3,500 bopd on an annualised basis.
On 27 September 2025, pipeline exports from the Shaikan Field restarted based on interim agreements signed by the Company and other IOCs with the KRG and FGI. All trucking sales ceased on 26 September 2025. The transition was smooth with volumes quickly ramping up towards full well capacity following the reopening of the Iraq-Türkiye Pipeline ("ITP").
The interim exports agreements are in full compliance with the 2023-2025 Federal Iraqi Budget Law (the 'Budget Law') while maintaining the sanctity of Kurdistan's Production Sharing Contracts ("PSCs"). The Budget Law provides for an interim period during which IOCs are compensated USD16/bbl for exported production to cover the costs of production and transportation. As the KRG is no longer paid for its entitlement, but rather is compensated through FGI budget transfers, the USD16/bbl equated to USD30/bbl for 2025 exports sales on a cash received basis, based on the level of net entitlement for the Shaikan Contractor in the second half of the year.
Following the interim period, a reconciliation to full PSC entitlement at international prices and the signing of longer-term agreements is expected following a review of IOC invoices and contractual costs conducted by an international independent consultant. The Company expects the interim exports agreements to be extended beyond their current expiry of 31 March 2026 to facilitate the completion of the consultant's review. The Company's invoiced revenue for exports sales in 2025 indicate the potential level of international netbacks we could expect to receive, both in top-up payments for interim period sales and for future exports sales, with discounts to Dated Brent significantly reduced relative to both 2025 local sales and exports sales prior to the ITP closure in March 2023 (see the 'Financial review' for further detail).
Regular monthly liftings of crude allocated to the Company and other IOCs by a nominated trader commenced at the Ceyhan oil terminal in Türkiye in November 2025 and associated payments began in December 2025. Monthly liftings and payments have continued into 2026 as expected.
The Company's work programme in 2025 comprised disciplined and targeted investment in maintaining the safety and reliability of the Shaikan Field's production facilities, with safety upgrades progressed at PF-2, and optimising production through well workovers and interventions.
In August, we were pleased to sanction the installation of water handling facilities at PF-2. Once operational, the water handling facilities are expected to unlock an estimated 4,000 - 8,000 bopd of incremental gross production above the anticipated field baseline from existing constrained wells and reduce downside risk to reservoir recovery. The facilities will also add additional wet oil processing capacity of around 17,000 bopd to the Shaikan Field's existing dry oil processing capacity of around 60,000 bopd. While good progress has been made on the project since sanction, the schedule is currently under review due to the regional security environment.
2026 outlook
Gross production averaged c.41,300 bopd in 2026 year to 28 February, with production exceeding 44,000 bopd on several days towards the end of February 2026 reflecting the successful completion of well workovers and interventions.
Gross production has averaged c.32,100 bopd in 2026 year to 17 March, with the reduction reflecting the precautionary shut-in of the Shaikan Field 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. Annualised losses to date from the shut-in are estimated at approximately 840 bopd a week. The Company is ready to restart production and exports quickly with an improvement in the security environment.
Due to the security situation the Company has placed its previous gross average production guidance for 2026 of 37,000 - 41,000 bopd under review. The Company has also suspended its 2026 net capex, net operating costs and other G&A expenses guidance and is assessing initiatives to reduce expenditures, if required. We will look to reinstate guidance once production has resumed and the overall impact of the shut-in is known.
Shaikan Field estimated reserves
The Company estimates gross 2P reserves of 416 MMstb as at 31 December 2025 contained in the Jurassic reservoir. The reduction relative to the 2024 year-end internal estimate of 443 MMstb reflects gross production of 15 MMstb in 2025 and minor revisions of 12 MMstb.
Gross 2P reserves have been internally estimated based on a draft FDP, which models a return to development drilling towards the end of 2026. Revisions to estimated reserves reflect updated assumptions regarding reservoir and well performance, partially offset by additional infill drilling.
Gross 2C resources continue to be estimated at 311 MMstb based on the Company's latest independent Competent Person's Report ("CPR") prepared by ERC Equipoise ("ERCE") as at 31 December 2022. Total gross 2C resources include an estimated 101 MMstb in the Jurassic reservoir, 157 MMstb in the Triassic reservoir and 53 MMstb in the Cretaceous reservoir.
The 2022 CPR was the Company's last published independent third-party evaluation of the Company's reserves and resources. The Company expects to commission an updated CPR, including a comprehensive independent assessment of 1P and 2P reserves and 2C resources, once a path to future field development has been established.
Jon Harris
Chief Executive Officer
18 March 2026
Financial review
Key financial highlights
Year Local sales Year
Export sales
ended 1 January to ended
27 September to 31
December
31 December 26 September 31 December
2025
2025 2025 2024
Gross average production(1) bopd 41,560 43,434 40,891 40,689
Dated Brent(2) USD/bbl 69.1 63.9 71.0 80.8
Realised price(1)(3) USD/bbl 33.9 50.5 27.6 26.8
Discount to Dated Brent USD/bbl 35.2 13.4 43.4 53.9
Revenue (invoiced for the period)(1) USDm 193.1 79.2 113.9 151.2
(4)
Revenue (IFRS)(5) USDm 164.8 50.9 113.9 151.2
Operating costs USDm 52.6 14.0 38.6 52.4
Gross operating costs per barrel(1) USD/bbl 4.3 4.2 4.4 4.4
Other general and administrative USDm 9.3 2.0 7.3 11.4
expenses
Share option expense USDm 7.0 1.0 6.0 4.4
Adjusted EBITDA(1)(6) USDm 111.4 56.8 54.6 76.1
Profit/(loss) after tax USDm 15.1 24.0 (8.9) 7.2
Basic earnings/(loss) per share cents 7.0 11.1 (4.1) 3.3
Revenue receipts(1) USDm 122.4 14.1 108.3 144.1
Net capital expenditure(1)(7) USDm 38.8 14.6 24.2 18.3
Free cash flow(1) USDm 29.1 (8.3) 37.4 65.4
Shareholder distributions(8) USDm 50 0 50 45
Cash and cash equivalents USDm 78.2 78.2 87.2 102.3
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March 19, 2026 03:01 ET (07:01 GMT)
DJ 2025 Full Year Results Announcement -4-
1. Represents either a non-financial or non-IFRS measure which are explained in the summary of non-IFRS measures where
applicable. 2. Simple average Dated Brent price; provided as a comparator for realised price. 3. 2024 realised prices reflect a full year of local sales, 2025 realised prices reflect local sales from 1 January to
26 September 2025 and export sales from 27 September to 31 December 2025. Realised prices for 2025 export sales
reflect the full value of entitlement invoices at international prices with adjustments for quality and
transportation costs. Cash received for 2025 export sales equated to USD30/bbl. 4. Revenue (invoiced for the period) is a non-IFRS measure reflecting the full value of local and export sales
entitlement invoices. See note 2 in the financial statements for further details. 5. Revenue (IFRS) reflects 'Revenue (invoiced for the period)' adjusted for the effective recovery of past
receivables. 6. Adjusted EBITDA is based on 'Revenue (invoiced for the period)'. 7. 2025 net capital expenditure includes a USD5.4 million non-cash charge associated with the capitalisation of drilling
inventory previously classified as held for sale. 8. 2025: USD50 million of dividends; 2024: USD35 million of dividends and USD10 million of completed share buybacks.
2025 was another year of strong delivery in line with annual guidance, with targeted investment in production-enhancing projects, strict cost control and continued free cash flow generation underpinning USD50 million of dividend payments to GKP shareholders. The restart of Kurdistan exports was a pivotal milestone for the Company, with significantly higher realised prices visible in our invoiced revenue in Q4 2025 and consistent payments to date for sales under the interim exports agreements.
Looking ahead, the Company is currently navigating the recent deterioration of the regional security environment and shut-in of production. We are in a strong position, with a robust balance sheet and significant flexibility to reduce expenditures should the shut-in persist.
Notwithstanding these immediate challenges, we see several opportunities for shareholder value creation ahead by securing a return to exports sales at international prices, concluding our commercial negotiations with the KRG and capitalising on a new phase of balancing investment in profitable production growth with shareholder returns as we approach the full recovery of past recoverable costs.
Adjusted EBITDA
Adjusted EBITDA increased 46% to USD111.4 million in 2025 (2024: USD76.1 million), driven by a resilient production performance, tight cost control in line with annual guidance and the sharp increase in realised prices visible in exports sales invoices following the restart of Shaikan Field pipeline exports on 27 September 2025.
Revenue based on sales invoices issued in 2025, a non-IFRS measure, increased 28% to USD193.1 million (2024: USD151.2 million), reflecting the 2% improvement in annual production and an average realised price of USD33.9/bbl (2024: USD26.8/ bbl). Revenue on an IFRS basis was USD164.8 million (2024: USD151.2 million) which reflects an adjustment for the effective recovery of past receivables. The Group is restricted from reporting a total receivable balance in excess of the unrecovered cost oil balance (or 'Cost Pool') and therefore cannot recognise revenue under IFRS beyond this point. See note 2 in the financial statements for further details.
Under the exports agreements signed in September 2025, crude pricing is now linked to Dated Brent around cargo lifting windows as opposed to average monthly Brent pricing in the month of production. The realised price achieved from export sales in 2025 was USD50.5/bbl and therefore represented a significant improvement on the price achieved from local sales of USD27.6/bbl in January to September 2025 and USD26.8/bbl in 2024. The average discount to Dated Brent of USD13.4/bbl arising from 2025 export sales is encouraging and represents a sizeable reduction compared to the average discount to Dated Brent of USD27.2/bbl in 2022, the last full year of exports sales prior to the ITP closure in March 2023. However, it is relatively early in the new export process to project the precise discount for exports sales going forward given the limited time period, the limited number of cargo liftings in the period and the ongoing review of the independent consultant.
The Company continued to exercise rigorous cost control in 2025, with operating costs and other G&A expenses in line with annual guidance. Gross operating costs per barrel and operating costs were broadly flat at USD4.3/bbl (2024: USD4.4/ bbl) and USD52.6 million (2024: USD52.4 million) respectively. Other G&A expenses reduced 18% to USD9.3 million in 2025 (2024: USD11.4 million), primarily reflecting the absence of one-off retention awards in 2024.
Share option expense was USD7.0 million in 2025 (2024: USD4.4 million), principally reflecting the increase in vested awards associated with the 2022 LTIP relative to the vesting of the 2021 LTIP award in 2024.
Cash flows
Revenue receipts, which reflect cash received in the year for the Company's net entitlement of local and interim period exports sales (with the latter reflecting cash receipts of USD30/bbl as per the interim exports agreements), were USD122.4 million. Revenue receipts were 15% lower relative to the prior year (2024: USD144.1 million) reflecting the transition from pre-paid local sales to payments for exports sales typically in the second month after production. As such, two exports sales payments were received in December 2025 for two crude liftings in November 2025 covering September and most of October exports sales. This timing difference of around two months is reflected as a receivable as at 31 December 2025 of USD32.0 million net to GKP. Payments for exports liftings have continued consistently to the date of this report, in line with the interim exports agreements, enabling us to collect the amounts receivable at the year end.
The Company has also accrued a receivable for exports sales under the interim agreements to account for the differential between realised prices for cash received from 2025 export sales and the expected reconciliation to international prices, reflected in the realised prices for invoiced revenue. This additional receivable totalled USD32.8 million net to GKP at year end 2025. The Company's current expectation is that this receivable, as well as increases accrued for export sales ahead of the conclusion of the consultant's review and interim exports agreements, will be paid in the form of additional allocated liftings of crude and associated payments. The estimated payment timing and value of this receivable are subject to the independent consultant's report. The current interim exports agreements, which expire on 31 March 2026, are expected to be extended to facilitate its completion of the report.
Net capital expenditure in 2025 was USD38.8 million (2024: USD18.3 million) reflecting investment in PF-2 safety upgrades, well workovers and initial expenditure on the installation of water handling facilities at PF-2. Net capex in the period included a non-cash charge of USD5.4 million associated with the capitalisation of drilling inventory purchased and paid for in 2022 and 2023 that had previously been classified as held for sale following the wind down of the Company's expansion programme in 2023. Excluding this charge, cash net capital expenditure of USD33.4 million was in line with annual guidance.
Free cash flow generation in 2025 was USD29.1 million (2024: USD65.4 million), with the increase in Adjusted EBITDA offset by the increase in net capital expenditure in the year and a working capital outflow related to the 2025 exports sales receivables.
The Company was pleased to pay dividends in the year of USD50 million (2024: USD35 million of dividends and USD10 million of completed share buybacks), according to the Company's announced approach of semi-annual dividend reviews around the full-year and half-year results.
To satisfy the vesting of the 2022 LTIP award in 2025, purchases of the Company's shares were made by the Employee Benefit Trust ("EBT") in the first half of the year, amounting to USD4.0 million. The Company expects the EBT to purchase shares to satisfy the potential vesting of future LTIP awards. The vesting of LTIP awards in previous years has been satisfied by the issuance of shares.
GKP's cash balance was USD78.2 million as at 31 December 2025 (31 December 2024: USD102.3 million) with no outstanding debt. The cash balance as at 18 March 2026 was USD89.1 million, with the increase since year end 2025 driven by continued consistent cash payments for exports sales.
The Group performed a cash flow and liquidity analysis, including the impact of the ongoing conflict in the Middle East region and the precautionary shut-in of the Shaikan Field since 28 February 2026. Consequently, the Group has considered a range of sensitivities, including delays to a production restart, and remains satisfied that sufficient levers and mitigating actions are available to preserve liquidity, which are set out in more detail in the 'Going concern' note within the financial statements. Therefore, the going concern basis of accounting is used to prepare the financial statements.
Net entitlement
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March 19, 2026 03:01 ET (07:01 GMT)
