2024 Preliminary Results

About this update from Pharos Energy Plc

[{"type":"text","content":"\n \n Pharos Energy plc \n (\"Pharos\" or the \"Company\" or, together with its subsidiaries, the \"Group\") \n 2024 Preliminary Results \n A year of strong progress and momentum \n   \n Pharos Energy plc, an independent energy company with assets in Vietnam and Egypt, announces its preliminary results for the year ended 31 December 2024. An analyst presentation will take place at 12.30 GMT today by invitation only. If you would like to register to attend, please contact Camarco at [email protected] . \n   \n   \n Katherine Roe, Chief Executive Officer, commented: \n \"2024 was a year of strong progress and delivery for Pharos, culminating in the approval for the extension of our producing licences in Vietnam. This milestone has enabled Pharos to begin 2025 with renewed momentum and a focus on growth.  \n \"Operationally we delivered successful drilling results and maintained stable production in Vietnam and Egypt delivering 5,801 boepd, generating consistent cash flows, allowing us to fully repay the legacy debt and declare today a 10% increase in the final dividend. We now have the benefit of an unlevered balance sheet capable of supporting additional financing for growth alongside our existing cash resources of $16.5 million at year end. \n \"The recent licence extensions in Vietnam are enabling us to move forward with a work programme to fully unlock the significant resource potential within these high quality assets. In Egypt, the signing of an MOU with EGPC for the merger of our Egyptian concessions in February this year demonstrates the alignment between all parties to conclude negotiations as soon as possible. \n \"Our disciplined approach to capital allocation continues to underpin our work programme as we focus on projects that yield the highest returns for our shareholders. We have recently submitted an application for a two-year extension on Blocks 125 & 126 which will allow us to retain future optionality for the prospect to be drilled, whilst investing in near term production growth in Vietnam. \n \"Pharos is a cash generative, debt free business with a robust balance sheet. This provides us with the flexibility and capacity to pursue both organic growth and inorganic opportunities, specifically compelling accretive acquisitions, to utilise our existing in-country track record and relationships to drive scale, growth and continued shareholder returns. \n \"I would like to thank all of our colleagues and stakeholders for their continued efforts and support and look forward to delivering in the year ahead.\" \n   \n 2024 Operational Highlights \n ·      Group working interest 2024 production was 5,801 boepd net, in line with guidance: \n -       Vietnam 4,361 boepd \n -       Egypt 1,440 bopd \n ·      Successful drilling campaigns in both Vietnam and Egypt \n ·      Strong safety record with no LTIs \n ·      Vietnam: \n -       Applications for five-year licence extensions to the TGT and CNV fields formally granted by the Vietnamese Government in December, increasing year-end 2024 2P reserves in Vietnam by approximately 19%  to 8.9 mmboe and enabling further investment in both fields \n -       TGT: successful completion of two-well infill drilling programme in October on time and under budget; we are pleased that both wells are now producing in line with expectations \n -       Blocks 125 & 126: detailed drilling engineering studies for the proposed well on Prospect A commenced in 3Q; orders placedfor long lead items in August \n   \n ·      Egypt: \n -       El Fayum: successful drilling of second exploration commitment well in September, encountering oil-bearing reservoirs in Abu Roach G formation \n -       One El Fayum development well put on production in December \n -       North Beni Suef (NBS): ongoing processing of 3D seismic data \n   \n 2024 Financial Highlights \n ·      Group revenue of $136.1m 1,2 (2023: $168.1m 1,2 ) \n ·      Cash generated from operations $89.3m (2023: $88.8m) \n ·      Operating cash flow $54.0m 3 (2023: $44.9m) \n ·      Cash operating costs 4 of $17.80/bbl (2023: $15.70/bbl) \n ·      Cash balances as at 31 December 2024 of $16.5m (2023: $32.6m) \n ·      Net cash 4 as at 31 December 2024 of $16.5m, the Group is debt free (2023: $6.6m net debt 4,5 ) \n ·      Profit for the year of $23.6m (2023: loss $48.8m), including post-tax impairment reversals of $19.9m (2023: post-tax impairment losses of $42.7m) \n   \n 2024 Corporate Highlights \n ·      Commitment to shareholder returns continue: \n -       Sustainable dividend policy delivered with an interim dividend of 0.363 pence per share for the 2024 financial year, and proposed final dividend of 0.847 pence per share announced today, subject to shareholder approval at 2025 AGM \n -       Share buyback programme concluded in January 2025 following full utilisation of the latest $3.0m committed to the programme. Since its initiation in July 2022, 30,708,855 ordinary shares have been repurchased by the Company at an average price paid of 23.65p per share \n   \n 2025 Outlook and Highlights \n ·      Group working interest production guidance of 5,000 - 6,200 boepd net: \n -       Vietnam 3,600 - 4,600 boepd \n -       Egypt 1,400 - 1,600 bopd \n ·      Vietnam production; following the approval of the TGT and CNV five-year licence extensions: \n -       TGT: Drilling of an appraisal commitment well in 4Q; appraisal success would open up an undrilled area in the field \n -       TGT: Three infill wells drilling programme expected to commence in 4Q \n -       CNV: Planning underway for the drilling of one infill well expected to commence in 4Q \n -       3D seismic reprocessing on both assets commenced in January 2025, expected completion in 3Q \n ·      Vietnam exploration; Blocks 125 & 126: \n -       Submitted application for a 2-Year PSC Exploration Phase Extension in February 2025 \n -       Long Lead Items for Block 125 exploration well expected to arrive in 2Q 2025 \n -       Renewed focus on farm-out strategy to enable drilling of the prospect \n   \n ·      Egypt: \n -       El Fayum: Testing of the successful exploration commitment well in February \n -       Application for commercial discovery declaration submitted to EGPC in 1Q \n -       Planning underway to commence two-well El Fayum drilling programme in 2H \n -       NBS: expected completion of 3D seismic data processing in 1H, with interpretation and mapping to follow \n -       Memorandum of Understanding (MOU) with EGPC in relation to the proposed consolidation of the El Fayum and NBS concessions signed in February 2025 \n ·      On track to achieve our Net Zero interim three-year target (2024-2026) of 5% emissions reduction \n ·      Forecast Group cash capex in the year expected to be a minimum of $37m and could potentially increase to $66m. The minimum programme reflects the drilling of one TGT appraisal commitment well and long lead items for TGT and CNV infill wells. The upper range would include drilling the three TGT infill wells, one CNV appraisal commitment well, and one CNV infill well. The minimum range includes long lead items for Block 125 exploration drilling in Vietnam. In Egypt, the minimum programme includes two El Fayum development wells and two injector wells , with the  potential for three additional development wells on El Fayum and two development wells and one water injector in NBS in our upper range, should activity increase following approval and signature of a consolidated concession agreement \n ·      Active capital programme aimed at delivering important production growth from 2026 \n   \n 1 Egyptian revenues are stated post government take \n   \n 2 Stated prior to realised hedging loss of $0.1m (2023: loss of $0.2m) \n   \n 3 Operating cash flow = Net cash from operating activities, as set out in the Cash Flow Statement \n   \n 4 See Non-IFRS measures on page 40 \n   \n 5 Includes RBL and National Bank of Egypt working capital drawdown \n   \n   \n Enquiries \n   \n Pharos Energy plc                                                                                                                                   Tel: 020 7747 2000 \n Katherine Roe, Chief Executive Officer  \n Sue Rivett, Chief Financial Officer \n   \n Camarco                                                                                                                                                 Tel: 020 3757 4980 \n Billy Clegg | Georgia Edmonds | Violet Wilson | Tamsin Howard \n   \n   \n Notes to editors \n Pharos Energy plc is an independent energy company with a focus on sustainable growth and returns to stakeholders, which is listed on the London Stock Exchange. Pharos has production, development and/or exploration interests in Egypt and Vietnam. In Egypt, Pharos holds a 45% working interest share in the El Fayum Concession in the Western Desert, with IPR Lake Qarun, part of the international integrated energy business IPR Energy Group, holding the remaining 55% working interest. The El Fayum Concession produces oil from 10 fields and is located 80 km southwest of Cairo. It is operated by Petrosilah, a 50/50 joint stock company between the contractor parties (being IPR Lake Qarun and Pharos) and the Egyptian General Petroleum Corporation (EGPC). Pharos also holds a 45% working interest share in the North Beni Suef (NBS) Concession in Egypt, which is located immediately south of the El Fayum Concession. The first development lease on the NBS Concession was awarded in September 2023 and production started in December 2023. IPR Lake Qarun operates and holds the remaining 55% working interest in the NBS Concession. In Vietnam, Pharos currently has a 30.5% working interest in Block 16-1 which contains 97% of the Te Giac Trang (TGT) field and is operated by the Hoang Long Joint Operating Company. Pharos' unitised interest in the TGT field is 29.7%. Pharos also currently has a 25% working interest in the Ca Ngu Vang (CNV) field located in Block 9-2, which is operated by the Hoan Vu Joint Operating Company. Following the announcement by Pharos in December 2024 of approval a five year extension to the terms of the petroleum contracts for Blocks 16-1 and 9-2, together with associated changes to fiscal terms and participating interests, Pharos will hold a revised working interest in Block 16-1 (TGT) of 25.33% with effect from 8 December 2026 and a revised working interest in Block 9-2 (CNV) of 20% with effect from 16 December 2027. Blocks 16-1 and 9-2 are located in the shallow water Cuu Long Basin, offshore southern Vietnam. Pharos also holds a 70% interest in, and is designated operator of, Blocks 125 & 126, located in the moderate to deep water Phu Khanh Basin, north east of the Cuu Long Basin, offshore central Vietnam. \n \n \n   \n Chair's Statement \n Strengthened foundation for future growth \n For Pharos, 2024 has been a year of significant progress, during which we have enhanced our core business with the licence extensions in Vietnam, achieved financial resilience with the repayment in full of the company's debt and strengthened our leadership team, laying the foundation for the next stage of growth. \n Throughout the portfolio, the team's focus on operational delivery was evidenced by good drilling performance both in Vietnam, with the two TGT wells contributing to production, and in Egypt, with exploration success on the El Fayum commitment well. Most notably, the Vietnam JOCs' application for the five-year licence extensions to the TGT and CNV fields was granted by the Vietnamese Government in December, an important catalyst to enable further investment in both fields. We have continued to build on a culture of capital discipline to transform the Group's balance sheet, having fully paid off all outstanding debt in September and leaving the Company debt-free. Alongside this, the improving macro environment in Egypt has seen our receivables position improve with over $25m received during the year. This performance has allowed the Board to announce today the intention to pay a final dividend of 0.847pence per share for the 2024 financial year, taking the 2024 full year dividend to 1.210 pence, a continuation of our commitment to sustainable shareholder returns. \n These achievements are a testament to the hard work, dedication, and commitment of the entire Pharos team. I would like to congratulate all of my colleagues on a year of good performance which has positioned Pharos for a positive future with strong operational momentum, a robust capital structure, and excellent growth opportunities. \n Board governance and leadership changes \n Over the past few years, the Board has undergone significant changes to strengthen Board independence and maintain a high standard of governance. We invest in regular Board training and evaluations to address any skills gaps and ensure the Board has the right balance of relevant skills and expertise to guide the Company through its next phase of growth. \n I am delighted that Katherine Roe joined the Pharos Board as its new Chief Executive Officer in July 2024 following Jann Brown's retirement from the Board in April. Katherine's 20 years of senior corporate, industry and capital markets experience across several international jurisdictions will be of great value to us as she leads Pharos into our next strategic stage. Since joining the Company in July, Katherine has already forged strong relationships with key stakeholders in both jurisdictions, successfully securing the five-year licence extensions to TGT and CNV in Vietnam in December 2024, and the signing of the MOU with IPR and EGPC for the consolidation of our Egyptian assets in February 2025. It is also important to recognise Jann's contribution throughout her tenure as CEO during challenging times, establishing the platform for much of the recent progress across the business. I would like to thank Jann for her years of service to Pharos and wish her well in her retirement. \n Another significant change the Company made was the appointment of Bill Higgs as Independent Non-Executive Director in January 2024 and subsequently as Chair of the Company's new Reserves Committee, an important addition to our governance framework as his technical expertise will be crucial to assess and advise on growth opportunities in our portfolio. \n With the changes in 2024, the Board is refreshed, resilient, and strong. We will continue to evaluate opportunities to strengthen our capabilities at Board and senior management level with a view to ensuring we are well-positioned for future success. \n A diverse and inclusive culture \n At Pharos, we recognise that a positive and inclusive company culture is essential to our long-term success. We are proud of our small yet diverse global workforce, whose broad range of backgrounds, ethnicities, skills and experience help strengthen the Company for the future. As at year end, I am pleased to report that the Company had three female Directors, representing 50% of the Board. Most notably, our global team comprised 10 different nationalities, of which women account for c.51%. \n The Board and senior management team are dedicated to creating a safe workplace for all, in which people are confident to engage and contribute. During the year, as Non-Executive Chair of the Board and designated Non-Executive Director responsible for workforce engagement, I carried out various in-person town hall meetings, during which staff were invited to share their feedback and views about the Company without the presence of any Executive Directors to provide an open, honest and safe space for all employees to express any concerns they might have. I am pleased to report that staff morale remains high, and we have seen a significant strengthening of our company culture post COVID-19 lockdowns. We operate in a global industry, and we are careful to ensure that we continue to foster an environment that is safe, inclusive and collaborative in order to benefit from the diverse perspectives that our people bring. \n   \n Ongoing dialogues with stakeholders \n Pharos' operational success and long-standing partnerships, spanning over 25 years, are built on a culture of transparency and integrity. The senior management team and I have maintained regular and proactive dialogues with local governments, joint-operating partners, and shareholders. In addition to the annual Strategy Day, where the Board focuses on where and how we can best offer value to our stakeholders, we also held regular ad-hoc discussions with corporate advisers and commercial experts in 2024 to stay well-informed about shareholder interests and industry challenges as the Company develops, reviews, refines and executes its long-term strategic plan. \n The Board recognises the importance of scale. While Pharos has consistently delivered strong results as an independent small-cap energy producer, we understand that increasing our scale will allow us to create more long-term value for shareholders and compete more effectively in the E&P market. The Board remains committed to delivering returns for shareholders, including potential organic and inorganic opportunities that will enhance our portfolio and strengthen the Company's position in the sector. In doing so, the Board and senior management team will continue to engage with our stakeholders in a personal and meaningful way. We are grateful to our shareholders whose support during times of uncertainty has been crucial to our growth and transformation throughout the years. \n Making a positive difference \n As Pharos explores these strategic opportunities, we also recognise the need for more balanced energy systems worldwide, delivering energy sources that have a lower climate impact and are reliable and affordable for developed and emerging nations alike. The importance of energy and climate security continues to be a key issue for global governments, and I firmly believe that responsible production and development of oil and gas resources, especially in economies transitioning from heavy reliance on coal, can be a major driver for economic development and alleviating energy poverty. Our host governments understand and appreciate Pharos' in-country impact that goes beyond national revenues from oil and gas production, and we appreciate our host nations' trust in us and the long-term role that we play in their countries' energy transition. \n As the global energy landscape continues to evolve, sustainability remains at the heart of our business. In 2024, we progressed our net zero strategy by updating our 2023 Net Zero Roadmap to outline the steps we have taken to reduce our carbon footprint and contribute to a more sustainable future. We are on track to achieve our 2026 interim emissions reduction target and remain committed to transparency in our sustainability reporting. \n We are proud of our social and community initiatives, which have been an important part of the Company's philosophy throughout its history. In 2024, in addition to a training levy of $500,000 that goes into a ring-fenced fund to support the development of industry talents in Vietnam and Egypt, we also supported a record 26 community investment projects across Egypt, Vietnam, and the UK, investing a total of $259,889 in education, training, healthcare and infrastructure in our local communities. Pharos is committed to deploying our expertise and capital to partner with host governments to develop local capacity, enhance energy security and unlock value from our host nations' natural resources in an environmentally sustainable and socially responsible manner. \n Looking ahead \n In addition to seeing a number of important organisational changes at Board and senior management level, 2024 was a year of delivery for Pharos. The Company continued to deliver on its strategy, strengthened its financial health, and built on its track record of sustainable shareholder returns. As Chair of the Board, I would like to thank my fellow Board members, senior management and the Pharos team as a whole for their hard work, commitment, and dedication throughout the year. Their expertise and support have been vital in driving Pharos forward and delivering long-term sustainable value for all shareholders. I am also grateful to our host nations and communities for their continued trust, our shareholders for their confidence, and our partners, suppliers and advisers for their support. \n Pharos has a leadership team that brings deep technical experience and strong financial discipline, a clear strategy, a focused portfolio that is unique within our sector, and a commitment to delivering value. We have the right combination to execute the right growth opportunities at the right time, and the Board looks to the future with great confidence in our ability to deliver growth and value in 2025 and beyond. \n   \n   \n   \n John Martin \n Non-Executive Chair \n \n Chief Executive Officer's Statement \n Maximising the value of our high quality portfolio \n 2024 has been a year of delivery for Pharos Energy. Amidst the challenging global environment and ongoing volatilities facing the industry, Pharos delivered crucial milestones that allowed us to emerge operationally stronger and financially robust. In my first Annual Report statement as Chief Executive Officer of Pharos Energy, I am proud to report a strong performance throughout 2024, with a solid operational business, high-quality assets delivering stable production and robust cash flows, an impressive and dedicated team, and a robust financial base. \n Financial strength \n Strengthening our balance sheet has been a pivotal achievement for Pharos in 2024. We were proud to report our Company moving to a debt-free position in September with the full repayment of all outstanding legacy debt since 2019. We ended the year in a strong financial position with cash balances of $16.5m and revenues of $136.1m. Alongside this, the improving macroeconomic environment in Egypt, coupled with our careful cost control, has seen our receivables position improve, with year-end 2024 balance down 21% to $29.5m and over $25m received from EGPC during the year. The continued progress of regular receivable payments will determine the pace of our future investment in country. We benefit from having quality assets with catalysts to extract further value and we look forward to continuing to invest in our portfolio within the framework of a strict and transparent capital allocation policy. \n At Pharos, we have a firm commitment to deliver returns to shareholders. Our established dividend programme is at the heart of our business model, and it is through this lens that we assess all capital allocation goals. With a stronger balance sheet compared to the same time last year and disciplined fiscal management, we continue our track record of delivering sustainable shareholder returns in 2024, totalling $8.8m this year through a combination of dividend payments and share buybacks. \n Today, the Board have recommended a final dividend for the 2024 financial year of 0.847 pence per share which, subject to shareholders' approval at the Company's 2025 AGM, would take the 2024 full year dividend to 1.210 pence per share. Dividends continue to be a fundamental part of the Company's investment proposition , and we are committed to striking the right balance between tangible shareholder returns with investment in our assets to generate growth whilst preserving the financial health of the business. \n Operational momentum across the portfolio \n The Company had an operationally busy year in 2024. Our healthy balance sheet allowed us to support active drilling work programmes during the year, with campaigns in both Vietnam and Egypt successfully completed in the second half. We are proud to have delivered solid production results on time, on budget, in line with guidance, and with zero LTIs across the Group. \n In Vietnam, the Group continued to deliver stable production rates, robust operations, and high netback. At the TGT field, a two infill well drilling programme was completed in October, with both wells producing in line with expectations. At the CNV field, two infill wells were agreed by all partners in 1H. Overall production from Vietnam was further supported by well interventions and production optimisation activities throughout the year. Most notably, in December, the HLHVJOCs' applications for five-year licence extensions to both the TGT and CNV fields were granted by the Vietnamese Government, extending the licence for the TGT field to 7 December 2031, and CNV field to 15 December 2032. The granting of the licence extensions is a significant achievement for the Company, immediately increasing our year-end 2024 2P reserves in Vietnam by approximately 19% and allowing us to prioritise future investments to unlock untapped potential in both fields. \n In Egypt, the Group maintains a measured approach to funding allocation for capital expenditure. Production throughout the year was stable due to a strong focus on workovers, recompletions, and water injection to bring low-cost barrels to production and build reservoir energy for future drilling. On El Fayum, drilling of the second exploration commitment well successfully completed in September after encountering oil-bearing reservoirs in the Abu Roach G formation. Additionally, one El Fayum development well was put on production in December. On North Beni Suef, the processing of 3D seismic data continued, with interpretation and mapping to follow in 2025. \n We are committed to operating safely and responsibly at all times. We are proud to have maintained our excellent safety record during an operationally active year like 2024. In particular, in Vietnam, we have maintained this record since 1997 thanks to the JOCs' consistent efforts to provide and champion workers' health, safety, and well-being; an achievement of which we are proud. The health and safety of our workforce remains our highest priority, and we are careful to maintain this going forward. \n   \n   \n Well-positioned to develop growth opportunities \n Our operational momentum in 2024 has laid a solid foundation for Pharos to further develop growth opportunities in our portfolio, with options continuously being explored and development work progressed to maximise the potential of each asset. \n In Vietnam, our exploration blocks, Blocks 125 & 126, have significant potential to unlock material organic value. We are active in our discussions to source a partner to support the funding of a commitment well on Block 125. To preserve our ability to drill in 2025, we ordered Long Lead Items (LLIs) in August 2024 , demonstrating our commitment to progressing this opportunity. We have recently submitted an application for a two-year extension on Blocks 125 & 126 which will allow us to retain future optionality for the prospect to be drilled, whilst investing in near term production growth in Vietnam.   \n In Egypt, we have further upside in El Fayum and North Beni Suef, demonstrated by the successes in both concessions in 2023 and 2024. The recent signing of a Memorandum of Understanding (MOU) with IPR and EGPC in February 2025 was a key catalyst in the project seeking to consolidate our two existing concessions. The negotiations, once concluded, are expected to result in a new consolidated Concession Agreement for both assets with improved fiscal terms, an extension of the current term of the concessions and further work programmes aimed at increasing production from the areas. This consolidation is expected to add significant value to our low-cost Egyptian asset base and deliver future growth. We will continue to work closely with all parties and use our best efforts to complete negotiations as soon as possible, with a view to the new agreement receiving government and parliament approval and then being signed by all parties at the earliest opportunity. \n Positive partnerships for mutual success \n Since joining as CEO in July 2024, I have been greatly encouraged by the open and receptive dialogues we had with key stakeholders. During the year, I met with our regulators, government representatives and JOC partners in both Vietnam and Egypt, including EGPC, IPR, the Egyptian Minister of Petroleum and Natural Resources, PetroVietnam (PVN), and the HLHVJOCs. Their ongoing support has been instrumental in delivering some of our key strategic objectives in 2024, such as the TGT and CNV licence extensions in Vietnam and the signature of the consolidation MOU in Egypt, and underscored the constructive relationship and recognition of our long-term commitment to the regions from our host governments and joint operating partners. \n Our positive relationships in both jurisdictions will continue to support our strategy and provide a competitive edge as we seek to unlock further value from these assets. As we maintain a firm handle on our existing portfolio, we also look for inorganic opportunities that can generate additional value for our shareholders, align with our long-term strategy, and leverage our existing long-standing in-country presence and partnerships. We have an experienced and highly dedicated team with strong industry relations to assess these opportunities in a disciplined and systematic manner. Underpinned by a debt-free balance sheet and steady production base, we are confident in our ability to build on our existing portfolio to create further sustainable, value-accretive growth for all our shareholders. \n As Pharos explores these opportunities, we remain focused on the role we play in the socio-economic development of our host countries. We believe that oil and gas companies like Pharos, with our commitment to producing safely and responsibly, a wealth of industry expertise, and a healthy financial base, will continue to play an important part in the energy transition, especially in emerging economies like Vietnam and Egypt. In our discussions with our host governments, we note their recognition of the importance of our operations and investments to support their broader energy security agenda and prosperity. This is exactly what we have done in 2024, having committed to the domestic sale of 100% of oil and gas produced from our assets in both Egypt and Vietnam during the year. We also progressed our net zero strategy in 2024 by updating our 2023 Net Zero Roadmap to outline the steps we have taken since its original publication to reduce our carbon footprint and contribute to a more sustainable future. More details of our updated Roadmap will be set out in our 2024 Annual Report & Accounts. \n Outlook \n Pharos has made significant strides in 2024, having delivered a stabilised asset base set for growth, a solid financial performance, well-protected cash flows, and an exciting mix of opportunities to pursue in 2025 and beyond. In Vietnam, planning is underway for the drilling of a TGT commitment well in 4Q 2025, the success of which could open up an undrilled area in the field. We also have additional infill drilling programmes in both TGT and CNV. We have recently submitted a two-year extension on Blocks 125 & 126 which will allow us to retain future optionality for the prospect to be drilled, whilst investing in near term production growth in Vietnam. In parallel, we continue active farm-out discussions with potential partners recognising the risk- reward balance of our portfolio. In Egypt, a two-well drilling programme in El Fayum will commence in 2H 2025 and, in parallel, discussions will continue on the consolidated Concession Agreement. \n   \n With capital discipline at our core, a clear set of strategic objectives, a portfolio of assets with catalysts, a strong financial position, a dedicated and diverse workforce, and a committed leadership team, the Company is well-positioned to deliver long-term sustainable value for all stakeholders. We have a stronger than ever foundation from which to build on and move forward to grow value in both Vietnam and Egypt. \n I would like to take this opportunity to thank all of our employees, partners, and shareholders for their continued dedication and support. Looking ahead, I am confident in our ability to execute our strategy and look forward to steering Pharos on a path towards a new phase of growth and success. \n   \n   \n   \n Katherine Roe \n Chief Executive Officer \n \n \n   \n Operational Review \n   \n   \n Operations \n   \n The Group's working interest 2024 production was 5,801 boepd net, in line with the Group's production guidance of 5,200 to 6,500 boepd. \n   \n Vietnam \n Vietnam Production \n Production in 2024 from the TGT and CNV fields net to the Group's working interest averaged 4,361 boepd . This is in line with the 2024 production guidance for Vietnam of 3,900 - 5,000 boepd net. \n TGT production averaged 10,968 boepd gross and 3,254 boepd net to the Group . CNV production averaged 4,426 boepd gross and 1,107 boepd net to the Group. \n   \n Vietnam Development and Operations \n   \n TGT & CNV Fields \n On Block 16-1 - TGT Field, operational activities in the first half of 2024 focused on adding low-cost production through well interventions and production optimisation opportunities. The second half of the year saw successful completion of the two-well infill drilling programme from October on time and under budget. Both wells are contributing to production. \n On 20 December 2024, the applications for our five-year licence extensions to the TGT and CNV fields were granted by the Vietnamese Government. The extensions resulted in an increase to the TGT and CNV 2024 year-end 2P reserves of approximately 19%, with potential to further increase reserves through appraisal success and infill wells. As one of the conditions of the licence extensions, the working interest of the foreign contractor parties will reduce with effect from the start of the five year extension period under each petroleum contract, being December 2026 for TGT (Block 16-1) and December 2027 for CNV (Block 9-2)) . The Group's working interest for TGT will change from 30.5% to 25.3% and its working interest in CNV will change from 25% to 20%. The extensions are accompanied by an agreed work programme commitment of 3D seismic reprocessing and one appraisal well on each field. Certain other licence terms have been revised to be consistent with precedent extensions granted to other operators by the Vietnamese Government and are in line with the current Vietnamese Petroleum Law. \n Vietnam Exploration \n   \n Blocks 125 & 126 \n   \n On Blocks 125 & 126, discussions with potential farm-in parties and drilling contractors are ongoing. In 2024, the Company continued to optimise its prospects and leads portfolio, and progress options to secure a drilling slot in Block 125. Detailed drilling engineering studies for the well on Prospect A commenced in 3Q 2024. To preserve our ability to drill, we have ordered Long Lead Items (LLIs) in August 2024 for delivery during 2025. In February 2025, we also submitted an application for a two-year PSC exploration phase extension to the relevant authorities, underscoring our commitment to pursuing this exciting opportunity . \n   \n 2025 Vietnam Work Programme \n   \n TGT & CNV Fields \n ·      Vietnam production guidance for 2025 is 3,600 - 4,600 boepd net \n ·      Following the approval of the TGT and CNV five-year licence extensions: \n o  TGT: Drilling of an appraisal commitment well in 4Q; appraisal success would open up an undrilled area in the field \n o  TGT: Three TGT infill wells drilling programme expected to commence in 4Q \n o  CNV: Planning underway for the drilling of one infill well expected to commence in 4Q \n o  3D seismic reprocessing on both assets commenced in January 2025, expected completion in 3Q 2025 \n   \n   \n   \n Blocks 125 & 126 \n   \n ·      Submitted application for a 2-Year PSC Exploration Phase Extension in February 2025 \n ·      Long Lead Items for Block 125 exploration well expected to arrive in 2Q 2025 \n ·      Renewed focus on farm-out strategy to enable drilling of the prospect \n   \n   \n Egypt \n Egypt Production \n   \n Production in 2024 from the El Fayum and NBS concessions net to the Group's working interest averaged 1,440 bopd . This is in line with the 2024 production guidance for Egypt of 1,300 - 1,500 bopd net. \n El Fayum production averaged 2,978 bopd gross and 1,340 bopd net to the Group. NBS production averaged 223 bopd gross and 100 bopd net to the Group. \n Egypt Development and Operations \n El Fayum \n One development well was put on production in 2024. \n North Beni Suef (NBS) \n The NBS-SW1X well, which was declared a commercial discovery and put on production in December 2023, continued to contribute to total production in 2024. \n Egypt Exploration \n El Fayum exploration \n   \n In 2024, we had continued exploration success with a second exploration commitment well in September encountering oil-bearing reservoirs in the Abu Roach G formation. \n   \n North Beni Suef exploration \n   \n On NBS, all technical commitments of the initial exploration period have been fulfilled with 3D seismic survey acquired on time and on budget. The processing of 3D seismic data is ongoing, with data interpretation and mapping to follow. \n   \n   \n Egypt Commercial \n IPR and Pharos El Fayum (PEF), in their capacity as the Contractor parties under the El Fayum and NBS Concession Agreements, submitted a request to EGPC to merge the two assets and replace them with a new consolidated Concession Agreement. The consolidated Concession Agreement is expected to unlock significant value in the Western Desert by improving certain fiscal terms, extending the term of the concessions and committing the Contractor parties to additional work programmes aimed at increasing production from the areas. \n   \n In February 2025, the Company announced that PEF had entered into a non-binding Memorandum of Understanding (MOU) with IPR and EGPC in relation to the proposed consolidation of the two Concession Agreements. The signing of the MOU is a key milestone in the process. Under the MOU, EGPC and the Contractor parties have agreed to use their best efforts to conclude negotiations on the new consolidated Concession Agreement as soon as possible, with a view to the agreement receiving government and parliament approval and then being signed by all parties at the earliest opportunity. \n   \n   \n   \n   \n   \n 2025 Egypt Work Programme \n   \n El Fayum & North Beni Suef \n ·      Egypt production guidance for 2025 is 1,400 - 1,600 bopd net \n ·      El Fayum: \n o  Testing of the successful exploration commitment well completed in February \n o  Application for commercial discovery declaration submitted to EGPC in 1Q \n o  Planning underway to commence two-well El Fayum drilling programme in 2H \n ·      NBS: \n o  Expected completion of 3D seismic data processing in 1H, with interpretation and mapping to follow \n   \n   \n Health, Safety and Environment (HSE) \n   \n On health and safety, we are pleased to report that in Egypt and Vietnam, we have worked with our partners to maintain our record of zero Lost Time Injury (LTI) and zero spillage incidents in 2024. The health and safety of our workforce remains our highest priority, and we are committed to operating safely and responsibly at all times to provide a safe and healthy working environment for staff and contractors. \n   \n On environmental matters, while operational activities in 2024 have increased compared to last year, we have maintained our emissions reduction. This is driven by improved process optimisation and monitoring, and measures to reduce the consumption of carbon-intensive fuel in our field operations. Compared to our 2021 baseline, we are on track to achieve our Net Zero interim short-term three-year target (2024-2026) of 5% emissions reduction. Pharos will continue to work closely with our operating partners to identify opportunities to reduce emissions to ensure we achieve our climate targets. \n   \n   \n   \n \n \n   \n Group Reserves and Contingent Resources \n The Group Reserves Statistics table below summarises our reserves and contingent resources based on the Group's unitised net working interest in each field. Gross reserves and contingent resources have been independently audited by McDaniel & Associates Consultants Ltd. (McDaniel). \n   \n Group Reserves Statistics \n   \n \n \n \n \n Net working interest, mmboe \n \n \n TGT \n \n \n CNV \n \n \n Vietnam \n \n \n El Fayum \n \n \n NBS \n \n \n Egypt \n \n \n Group \n \n \n \n \n Oil and Gas 2P Commercial Reserves 1,2 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n As at 1 January 2024 \n \n \n 6.3 \n \n \n 2.8 \n \n \n 9.1 \n \n \n 13.6 \n \n \n 0.8 \n \n \n 14.4 \n \n \n 23.5 \n \n \n \n \n Production \n \n \n (1.2) \n \n \n (0.4) \n \n \n (1.6) \n \n \n (0.5) \n \n \n - \n \n \n (0.5) \n \n \n (2.1) \n \n \n \n \n Revision \n \n \n 1.0 \n \n \n 0.4 \n \n \n 1.4 \n \n \n (1.6) \n \n \n 0.1 \n \n \n (1.5) \n \n \n (0.1) \n \n \n \n \n 2P Commercial Reserves as at 31 December 2024 \n \n \n 6.1 \n \n \n 2.8 \n \n \n 8.9 \n \n \n 11.5 \n \n \n 0.9 \n \n \n 12.4 \n \n \n 21.3 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Oil and Gas 2C Contingent Resources 1,2 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n As at 1 January 2024 \n \n \n 6.3 \n \n \n 5.6 \n \n \n 11.9 \n \n \n 9.6 \n \n \n - \n \n \n 9.6 \n \n \n 21.5 \n \n \n \n \n Revision \n \n \n (0.8) \n \n \n (3.3) \n \n \n (4.1) \n \n \n (1.3) \n \n \n - \n \n \n (1.3) \n \n \n (5.4) \n \n \n \n \n 2C Contingent Resources as at 31 December 2024 \n \n \n 5.5 \n \n \n 2.3 \n \n \n 7.8 \n \n \n 8.3 \n \n \n - \n \n \n 8.3 \n \n \n 16.1 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total of 2P Reserves and 2C Contingent Resources as at 31 December 2024 \n \n \n 11.6 \n \n \n 5.1 \n \n \n 16.7 \n \n \n 19.8 \n \n \n 0.9 \n \n \n 20.7 \n \n \n 37.4 \n \n \n \n \n   \n 1) Reserves and Contingent Resources are categorised in line with 2018 SPE/WPC/AAPG/SPEE /SWLA Petroleum Resource Management System. \n 2) Assumes an oil equivalent conversion factor of 6,000 standard cubic feet per barrel of oil equivalent. \n   \n   \n   \n \n Group's Net Working Interest Reserves and Contingent Resources \n   \n TGT Field at 31 December 2024 (mmboe) (net to Group's working interest) \n \n \n \n \n Reserves 2 \n \n \n 1P \n \n \n 2P \n \n \n 3P \n \n \n \n \n Oil \n \n \n 5.0 \n \n \n 5.8 \n \n \n 6.3 \n \n \n \n \n Gas 1 \n \n \n 0.1 \n \n \n 0.3 \n \n \n 0.4 \n \n \n \n \n Total \n \n \n 5.1 \n \n \n 6.1 \n \n \n 6.7 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Contingent Resources 2 \n \n \n 1C \n \n \n 2C \n \n \n 3C \n \n \n \n \n Oil \n \n \n 3.3 \n \n \n 5.1 \n \n \n 6.7 \n \n \n \n \n Gas 1 \n \n \n 0.2 \n \n \n 0.4 \n \n \n 0.5 \n \n \n \n \n Total \n \n \n 3.5 \n \n \n 5.5 \n \n \n 7.2 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Sum of Reserves and Contingent Resources 3 \n \n \n 1P & 1C \n \n \n 2P & 2C \n \n \n 3P & 3C \n \n \n \n \n Oil \n \n \n 8.3 \n \n \n 10.9 \n \n \n 13.0 \n \n \n \n \n Gas 1 \n \n \n 0.3 \n \n \n 0.7 \n \n \n 0.9 \n \n \n \n \n Total \n \n \n 8.6 \n \n \n 11.6 \n \n \n 13.9 \n \n \n \n \n   \n 1) Assumes oil equivalent conversion factor of 6,000 standard cubic feet per barrel of oil equivalent. \n 2) Reserves and Contingent Resources have been audited independently by McDaniel. \n 3) The summation of Reserves and Contingent Resources has been prepared by the Company. \n   \n CNV Field at 31 December 2024 (mmboe) (net to Group's working interest) \n \n \n \n \n Reserves 2 \n \n \n 1P \n \n \n 2P \n \n \n 3P \n \n \n \n \n Oil \n \n \n 1.5 \n \n \n 1.7 \n \n \n 1.9 \n \n \n \n \n Gas 1 \n \n \n 1.0 \n \n \n 1.1 \n \n \n 1.2 \n \n \n \n \n Total \n \n \n 2.5 \n \n \n 2.8 \n \n \n 3.1 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Contingent Resources 2 \n \n \n 1C \n \n \n 2C \n \n \n 3C \n \n \n \n \n Oil \n \n \n 0.8 \n \n \n 1.4 \n \n \n 2.2 \n \n \n \n \n Gas 1 \n \n \n 0.6 \n \n \n 0.9 \n \n \n 1.4 \n \n \n \n \n Total \n \n \n 1.4 \n \n \n 2.3 \n \n \n 3.6 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Sum of Reserves and Contingent Resources 3 \n \n \n 1P & 1C \n \n \n 2P & 2C \n \n \n 3P & 3C \n \n \n \n \n Oil \n \n \n 2.3 \n \n \n 3.1 \n \n \n 4.1 \n \n \n \n \n Gas 1 \n \n \n 1.6 \n \n \n 2.0 \n \n \n 2.6 \n \n \n \n \n Total \n \n \n 3.9 \n \n \n 5.1 \n \n \n 6.7 \n \n \n \n \n   \n 1) Assumes oil equivalent conversion factor of 6,000 standard cubic feet per barrel of oil equivalent. \n 2) Reserves and Contingent Resources have been audited independently by McDaniel. \n 3) The summation of Reserves and Contingent Resources has been prepared by the Company. \n \n \n   \n El Fayum Concession at 31 December 2024 (mmboe) (net to Group's working interest) \n \n \n \n \n Reserves 1 \n \n \n 1P \n \n \n 2P \n \n \n 3P \n \n \n \n \n Oil \n \n \n 6.1 \n \n \n 11.5 \n \n \n 13.9 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Contingent Resources 1 \n \n \n 1C \n \n \n 2C \n \n \n 3C \n \n \n \n \n Oil \n \n \n 3.1 \n \n \n 8.3 \n \n \n 16.4 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Sum of Reserves and Contingent Resources 2 \n \n \n 1P & 1C \n \n \n 2P & 2C \n \n \n 3P & 3C \n \n \n \n \n Total \n \n \n 9.2 \n \n \n 19.8 \n \n \n 30.3 \n \n \n \n \n   \n 1) Reserves and Contingent Resources have been audited independently by McDaniel. \n 2) The summation of Reserves and Contingent Resources has been prepared by the Company. \n   \n   \n North Beni Suef Concession at 31 December 2024 (mmboe) (net to Group's working interest) \n \n \n \n \n Reserves 1 \n \n \n 1P \n \n \n 2P \n \n \n 3P \n \n \n \n \n Oil \n \n \n 0.3 \n \n \n 0.9 \n \n \n 1.0 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Contingent Resources 1 \n \n \n 1C \n \n \n 2C \n \n \n 3C \n \n \n \n \n Oil \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Sum of Reserves and Contingent Resources 2 \n \n \n 1P & 1C \n \n \n 2P & 2C \n \n \n 3P & 3C \n \n \n \n \n Total \n \n \n 0.3 \n \n \n 0.9 \n \n \n 1.0 \n \n \n \n \n   \n 1) Reserves and Contingent Resources have been audited independently by McDaniel. \n 2) The summation of Reserves and Contingent Resources has been prepared by the Company. \n   \n   \n     \n   \n   \n   \n Chief Financial Officer's Statement \n Robust financial position \n   \n We have seen a strong financial performance from our operations and continued strengthening of our liquidity position, where we have moved into a positive net cash position of $16.5m compared to net debt of $6.6m reported at the end of December 2023. We have achieved solid USD cash flow from our Vietnam and Egypt portfolios and this has enabled us to accelerate the repayment of our borrowings. Following the farm down of the Egypt concessions in 2022, the Company continued to benefit from a full carry of all contractor costs for G&A, opex and the capital programme through to April 2024. In addition, Egypt operations became profitable during 2024, reversing the previous historical tax losses since first production, and this has led to a gross-up of revenues and tax charge in the Income Statement by $1.9m. \n   \n Returns to shareholders have been delivered through an additional $3.0m committed to the Company's share buyback programme, completed in January 2025, and the payment of an interim and final dividend in respect of the year ended 31 December 2023. The interim dividend of 0.33 pence per share was paid in January 2024, and the final dividend of 0.77 pence per share, following approval at the AGM in May 2024, was paid to shareholders in July 2024. In addition, an interim dividend of 0.363 pence per share in respect of the year ended 31 December 2024 was paid to shareholders in January 2025, and a final dividend of 0.847 pence per share to be paid in July 2025 will be proposed to shareholders at this year's AGM. \n   \n   \n Operating performance \n Revenues \n Group revenues of $136.1m, prior to realised hedging loss of $0.1m (2023: $168.1m prior to realised hedging loss of $0.2m) were negatively impacted by an 18% decrease in sales volumes, leading to an inventory build of $6m in Vietnam, and 3% fall in realised commodity prices. \n Revenues for Vietnam of $115.4m (2023: $149.2m) decreased year on year as a result of a reduction in sales volumes due to timing of cargoes and maintenance shutdown at the BSR-owned Dung Quat refinery to which TGT crude is sold, together with lower realised prices in general. The average realised crude oil price was $85.52/bbl (2023: $87.42/bbl), a 2% decrease year on year, and the premium to Brent was over $5/bbl on average (2023: just under $7/bbl). Production was lower at 4,361 boepd (2023:  5,127 boepd) and, combined with 21% fall in sales volumes, this has led to an inventory build of $6.0m for the Vietnam producing fields. \n The revenue for Egypt of $20.7m (2023: $18.9m) increased year on year, inclusive of $1.9m (2023: $nil) gross-up for corporate income taxes to be paid by EGPC on behalf of PEF. There was lower average realised crude oil price, down 4% to $74.83/bbl (2023: $78.18/bbl). Production rose to 1,440 bopd (2023: 1,381 bopd) and this included the NBS-SW1X well that commenced production in December 2023. There are two discounts applied to the Egypt crude production - a general Western Desert discount and one related specifically to El Fayum. Both are set by EGPC (the in-country regulator) and combined increased to just under $6/bbl for the year (2023: over $4/bbl). \n Hedging \n During 2024, the Group entered into zero cost collar hedges to protect the Brent component of forecast oil sales and to ensure future compliance with its obligations under the RBL facility agreement secured over the Group's producing assets in Vietnam and to provide downside protection to cash flows in the event of commodity price falling. \n At 31 December 2024, the commodity hedges run until June 2025 and are settled monthly. Our hedging positions for the year resulted in a $0.1m realised loss (2023: loss of $0.2m). \n For full year 2024, 31% of the Group's total oil entitlement production was hedged, securing average floor and ceiling prices for the hedged volumes at $63.4/bbl and $89.2/bbl, respectively. The RBL facility agreement requires the Group to hedge at least 35% of Vietnam RBL production volumes and the current hedging programme meets this requirement through to June 2025, leaving 72% of 1H 2025 Group entitlement production unhedged as at 31 December 2024. Following the maturity of the RBL facility in July 2025, the Group intends to continue hedging to mitigate the risk of commodity prices falling. As a result, the Group placed two further hedges in January 2025 through which the Group has hedged 20% of total forecast group entitlement production for 2025. \n \n The table below sets out a summary of the Group's hedges outstanding as at 31 December 2024, which are all zero cost collars. \n   \n \n \n \n \n   \n \n \n   \n \n \n 1Q25 \n \n \n 2Q25 \n \n \n \n \n Production hedge per quarter - 000/bbls \n \n \n \n \n \n 150 \n \n \n 90 \n \n \n \n \n Min. Average value of hedge - $/bbl \n \n \n \n \n \n 63.60 \n \n \n 64.00 \n \n \n \n \n Max. Average value of hedge - $/bbl \n \n \n \n \n \n 88.94 \n \n \n 90.17 \n \n \n \n \n \n \n \n \n \n \n \n   \n Operating costs \n Group cash operating costs, defined in the Non-IFRS measures section on page 40, were $37.8m (2023: $37.3m). Vietnam increased marginally by 1% from $28.8m to $29.1m in 2024, the equivalent of $18.23/bbl (2023: $15.39/bbl). The increase is partly due to costs relating to the FPSO as a result of lower 3 rd party production throughput from the TLJOC, which increased the HLJOC's share of the costs (TLJOC had 23.4% cost share in 2024 compared to 23.2% in 2023). \n Cash operating costs in Egypt were $8.7m in 2024 (2023: $8.5m), which equates to $16.51/bbl (2023: $16.86/bbl). The 2% decrease in cash operating costs per barrel was mainly due to 4% higher production following full year contribution from NBS, combined with a reduction in fixed costs due to devaluation of the EGP against USD. \n DD&A \n Group DD&A associated with the producing assets decreased to $47.1m (2023: $55.4m) driven by 15% decrease in production year on year for the Vietnam assets and lower DD&A rates per barrel following the impairment charge recorded on TGT in December 2023. This was partially offset by higher DD&A from Egypt due to the increase in production and impairment reversal recorded on El Fayum as at 30 June 2024. \n DD&A per bbl is currently $26.38/boe for Vietnam (2023: $27.25/boe). DD&A per bbl for Egypt is $9.49/boe (2023: $8.73/boe). \n Administrative expenses \n Administrative expenses in 2024 of $9.1m (2023: $9.0m) were comparable to prior year. After adjusting for non-cash share based payment charges of $0.9m (2023: $0.9m) the underlying administrative expenses were $8.2m (2023: $8.1m). \n Other operating expenses \n Other operating expenses in 2024 of $0.8m (2023: $nil) included $0.6m in relation to the posthumous vesting of share scheme awards to the former CEO of the Company, which was formally approved by the Remuneration Committee, settled in cash and paid to his estate with the agreement of the executor. A further $0.2m related to closure costs in respect of the US office, where the former CEO of the Company was based. \n Operating profit/(loss) \n Operating profit from continuing operations for the year was $38.0m (2023: $47.3m) excluding the net impairment reversal of $26.3m (2023: $65.4m net impairment charge), reflecting the combined impact of a decrease in production volumes and a lower commodity price environment during the year. \n Other/restructuring expenses and gain/(loss) on fair value movement of financial asset \n Other/restructuring expenses in 2024 of $0.4m (2023: $0.6m) related to restructuring costs for the Egypt office in Cairo. \n As part of the 2022 farm-down of 55% of the Egypt concessions, Pharos is entitled to contingent consideration depending on the average Brent price each year from 2022 to the end of 2025 (with floor and cap at $62/bbl and c.$90/bbl respectively). The contingent consideration is calculated annually and is capped at a maximum total payment of $20.0m. The change in contingent consideration is booked under gain/(loss) on fair value movement of financial asset.  \n The gain on fair value movement of financial assets for the year of $0.3m (2023: $0.3m loss) is due to upwards revision of the contingent consideration, as there was an immaterial movement in the assignment fee payable to EGPC. \n Finance costs \n Finance costs decreased to $3.9m (2023: $10.2m), due to voluntary repayments on the Group's RBL facility. Following the June 2024 redetermination, there was a change in estimated future cash flows. Upon full repayment of the loan in September 2024, a credit of $1.3m was recognised in the income statement. There was also interest expenses and similar fees of $2.4m, unwinding of discount on Vietnam decommissioning provisions of $2.2m and foreign exchange losses of $0.6m primarily driven by devaluation of the EGP against USD. \n In 2023, following the June and December 2023 redeterminations and the $35.0m repayment of principal in relation to the Group's RBL, there was a change in estimated future cash flows. As a result, a charge of $2.7m was recognised in profit and loss, offset by an amortisation adjustment of $(1.4)m. There was also interest expenses and similar fees of $6.4m, unwinding of discount on Vietnam decommissioning provisions of $2.0m and foreign exchange losses of $0.5m primarily driven by devaluation of the EGP against USD. \n   \n \n \n \n \n Cash operating cost per barrel* \n \n \n 2024 \n $m \n \n \n 2023 \n $m \n \n \n \n \n Cost of sales 1 \n \n \n 87.3 \n \n \n 111.2 \n \n \n \n \n Less \n \n \n   \n \n \n \n \n \n \n \n Depreciation, depletion and amortisation \n \n \n (47.1) \n \n \n (55.4) \n \n \n \n \n Production based taxes \n \n \n (9.2) \n \n \n (10.5) \n \n \n \n \n Change in inventories \n \n \n 6.0 \n \n \n (4.0) \n \n \n \n \n Trade receivables expected credit loss \n \n \n 2.5 \n \n \n (2.2) \n \n \n \n \n Other cost of sales \n \n \n (1.7) \n \n \n (1.8) \n \n \n \n \n Cash operating costs \n \n \n 37.8 \n \n \n 37.3 \n \n \n \n \n Production (BOEPD) \n \n \n 5,801 \n \n \n 6,508 \n \n \n \n \n Cash operating cost per BOE ($) \n \n \n 17.80 \n \n \n 15.70 \n \n \n \n \n   \n 1 Includes impairment reversal/(charge) of financial asset \n   \n \n \n \n \n DD&A per barrel* \n \n \n 2024 \n $m \n \n \n 2023 \n $m \n \n \n \n \n Depreciation, depletion and amortisation \n \n \n 47.1 \n \n \n 55.4 \n \n \n \n \n Production (BOEPD) \n \n \n 5,801 \n \n \n 6,508 \n \n \n \n \n DD&A per BOE ($) \n \n \n 22.18 \n \n \n 23.32 \n \n \n \n \n   \n * Cash operating cost per barrel and DD&A per barrel are alternative performance measures. See pages 40 and 41 for definitions. \n   \n   \n \n \n \n \n \n Cash operating cost per barrel by Segment \n   \n \n \n Vietnam \n   \n   \n $m \n \n \n Egypt \n   \n   \n $m \n \n \n Total \n   \n   \n $m \n \n \n \n \n Cost of sales \n \n \n 75.6 \n \n \n 11.7 \n \n \n 87.3 \n \n \n \n \n Less \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Depreciation, depletion and amortisation \n \n \n (42.1) \n \n \n (5.0) \n \n \n (47.1) \n \n \n \n \n Production based taxes \n \n \n (9.1) \n \n \n (0.1) \n \n \n (9.2) \n \n \n \n \n Change in inventories \n \n \n 6.0 \n \n \n - \n \n \n 6.0 \n \n \n \n \n Trade Receivable expected credit loss \n \n \n - \n \n \n 2.5 \n \n \n 2.5 \n \n \n \n \n Other cost of sales \n \n \n (1.3) \n \n \n (0.4) \n \n \n (1.7) \n \n \n \n \n Cash operating costs \n \n \n 29.1 \n \n \n 8.7 \n \n \n 37.8 \n \n \n \n \n Production (BOEPD) \n \n \n 4,361 \n \n \n 1,440 \n \n \n 5,801 \n \n \n \n \n Cash operating cost per BOE ($) \n \n \n 18.23 \n \n \n 16.51 \n \n \n 17.80 \n \n \n \n \n   \n   \n   \n \n \n \n \n DD&A per barrel by Segment \n \n \n Vietnam \n $m \n \n \n Egypt \n $m \n \n \n Total \n $m \n \n \n \n \n Depreciation, depletion and amortisation \n \n \n 42.1 \n \n \n 5.0 \n \n \n 47.1 \n \n \n \n \n Production (BOEPD) \n \n \n 4,361 \n \n \n 1,440 \n \n \n 5,801 \n \n \n \n \n DD&A per BOE ($) \n \n \n 26.38 \n \n \n 9.49 \n \n \n 22.18 \n \n \n \n \n   \n   \n \n \n \n \n Movements in Property, Plant and Equipment \n \n \n 2024 \n $m \n \n \n 2023 \n $m \n \n \n   \n \n \n \n \n As at 1 January \n \n \n \n \n \n 279.8 \n \n \n 381.8 \n \n \n \n \n \n \n \n Capital spend \n \n \n \n \n \n 17.8 \n \n \n 12.1 \n \n \n \n \n \n \n \n Transfer from intangible assets \n \n \n \n \n \n - \n \n \n 2.9 \n \n \n \n \n \n \n \n Revision in decommissioning assets \n \n \n \n \n \n (4.9) \n \n \n (2.5) \n \n \n \n \n \n \n \n DD&A - Oil and gas properties \n \n \n \n \n \n (47.1) \n \n \n (55.4) \n \n \n \n \n \n \n \n DD&A - Other assets \n \n \n \n \n \n (0.2) \n \n \n (0.2) \n \n \n \n \n \n \n \n Impairment reversal/(charge) - PP&E \n \n \n \n \n \n 28.3 \n \n \n (58.9) \n \n \n \n \n \n \n \n As at 31 December \n \n \n \n \n \n 273.7 \n \n \n 279.8 \n \n \n \n \n \n \n \n Property, Plant and Equipment \n \n \n \n \n \n 273.5 \n \n \n 279.3 \n \n \n \n \n \n \n \n Right-of-use-Asset \n \n \n \n \n \n 0.2 \n \n \n 0.5 \n \n \n \n \n \n \n \n As at 31 December \n \n \n \n \n \n 273.7 \n \n \n 279.8 \n \n \n \n \n \n \n \n   \n   \n Taxation \n The overall net tax charge of $37.1m (2023: $19.8m) principally relates to tax charges in Vietnam of $26.8m and the deferred tax charge on impairment reversals of $8.4m (2023: Vietnam tax charges of $36.0m less the deferred tax credit on net impairment charges of $16.2m). \n The Group's effective tax rate approximates to the statutory tax rate in Vietnam of 50%, after adjusting for non-deductible expenditure and tax losses not recognised. \n The Egypt concessions are subject to corporate income tax at the standard rate of 40.55%, however responsibility for payment of corporate income taxes falls upon EGPC on behalf of PEF and the other contractor parties. The Group records a tax charge, with a corresponding increase in revenue, for the tax paid by EGPC on its behalf. As PEF became profitable in 2024, reversing the historic tax loss position since first production, this led to a $1.9m tax charge being recorded (2023: $nil). \n One of the Group's companies entered into commodity zero cost collars designated as cash flow hedges. In accordance with IAS 12, a deferred tax asset has not been recognised in relation to the hedging losses of $0.1m (2023: $0.2m) recorded in the year as it is unlikely that the UK tax group will generate sufficient taxable profit in the future, against which the deductible temporary differences can be utilised. \n Profit/(loss) post-tax \n The post-tax profit for the year of $23.6m (2023: $48.8m post-tax loss) included $19.9m of restructuring expenses, re-measurements and impairments (2023: $53.8m) which are shown in the table below. Business performance post-tax profit for the year was $3.7m (2023: $5.0m). \n Restructuring expenses, re-measurements and impairments are comprised of the following: \n   \n \n \n \n \n Financial Statements Impact: \n   \n \n \n 2024 \n $m \n \n \n 2023 \n $m \n \n \n \n \n \n \n \n Profit/(loss) for the year \n \n \n 23.6 \n \n \n (48.8) \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Impact of restructuring expense, re-measurements and impairments \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Revenue \n \n \n (0.1) \n \n \n (0.2) \n \n \n Realised hedging losses \n \n \n \n \n Cost of sales \n \n \n 2.5 \n \n \n (2.2) \n \n \n Trade receivables expected credit loss \n \n \n \n \n Other operating costs \n \n \n (0.8) \n \n \n - \n \n \n Posthumous vesting of share scheme awards and US office closure \n \n \n \n \n Pre-licence costs \n \n \n (0.8) \n \n \n - \n \n \n Write-off of pre-licence costs \n \n \n \n \n Impairment charge - Intangible assets \n \n \n (2.0) \n \n \n (6.5) \n \n \n \n \n \n \n \n Impairment reversal/(charge) - Property, plant and equipment \n \n \n 28.3 \n \n \n (58.9) \n \n \n \n \n \n \n \n Other/restructuring expenses \n \n \n (0.4) \n \n \n (0.6) \n \n \n Egypt redundancy cost following farm down and revision of carry with IPR \n \n \n \n \n Gain/(loss) on fair value movement of financial asset \n \n \n 0.3 \n \n \n (0.3) \n \n \n Revision of contingent consideration in relation to Egypt farm-out \n \n \n \n \n Finance costs \n \n \n 1.3 \n \n \n (1.3) \n \n \n Adjustment and amortisation of capitalised borrowing costs \n \n \n \n \n Income tax (charge)/credit \n \n \n (8.4) \n \n \n 16.2 \n \n \n Deferred tax on impairment (reversal)/charge \n \n \n \n \n Total \n \n \n 19.9 \n \n \n (53.8) \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Business performance post-tax profit * \n \n \n 3.7 \n \n \n 5.0 \n \n \n \n \n \n \n \n   \n * A non-GAAP measure of underlying net profit from operations, which takes out the impact of unusual, non-recurring transactions and the impact of non-cash re-measurements and impairments. \n   \n Cash flow \n Operating cash flow (before movements in working capital) was $84.3m (2023: $103.8m). After tax charges of $35.3m (2023: $44.3m), other/restructuring costs of $0.4m (2023: $nil), working capital inflow of $5.0m (2023: $15.0m outflow) and interest received of $0.4m (2023: $0.4m), the cash generated from operations was $54.0m (2023: $44.9m). \n Cash generated from operations, after tax charges, exceptional expenses and working capital movements, is the basis of our dividend framework.  \n Operating cash flow (before movements in working capital) adjusted for the impact of the hedging positions of $0.1m loss (2023: $0.2m loss) gives an underlying operational performance of $84.4m (2023: $104.0m), which is consistent with the production decrease year on year and reduction in realised commodity prices. \n The decrease in receivables was $11.3m (2023: increase in receivables of $19.1m). The movement in 2024 is primarily driven by $6.4m decrease from Vietnam (2024: $7.4m increase) due to three cargoes being lifted in December 2023 compared to two cargoes in December 2024. Payments for the December 2023 cargoes were received in January 2024 and December 2024 cargoes were received in January 2025. \n There was a further $4.8m decrease in receivables from Egypt (2023: increase in receivables of $11.4m), due to a reduction in EGPC receivables. As of 31 December 2024, the trade receivables with EGPC stood at $29.5m (2023: $37.4m) and the Company received total payments of $25.5m during 2024, following increased recovery during the year. \n In Egypt, 2024 has brought about a general improvement of the macroeconomic situation. In late February/early March 2024, the Egyptian Government (i) announced a landmark agreement with ADQ (an Abu Dhabi sovereign wealth fund), whereby the latter has acquired development rights of the new coastal city of Ras El Hekma for $35 billion ($24 billion paid in cash and $11 billion as conversion of UAE deposits at the Central Bank of Egypt), and then (ii) on 6 March 2024, raised all main interest rates by 600 basis points; signed a significantly expanded new loan with the International Monetary Fund (IMF) ($8 billion, including the original $3 billion secured in December 2022), which facilitated an additional $14 billion from other institutional lenders including the World Bank and the European Union; and let the Egyptian pound (EGP) fully float, with an immediate devaluation from c.31 to c.49 EGP per USD, which forthwith eradicated the parallel FX market. \n As a result of these policy decisions and diplomatic achievements, Egypt's foreign currency reserves increased from $35.3 billion in February 2024 to $47.1 billion in December 2024. \n While the improved macroeconomic situation and increased FX reserves have not yet translated into a significant improvement in EGPC's arrears to oil and gas producers, the general trend is encouraging, as is the focus that the new Minister of Petroleum & Mineral Resources, Karim Badawi, is placing on the matter in order to ensure that companies resume investing in field activities. PEF is entitled under contract to be paid for hydrocarbon sales in US dollars. Until March 2024, the Group had opted to reject payment of any part of PEF's receivables balance in EGP and continued to hold USD denominated receivables due to the devaluation of currency against USD. Following the carry with IPR having been fully utilised by April 2024, the Group opted to accept the payment of part of the receivables balance in EGP in order to cover operational expenditure, cash calls and other expenses in local currencies. These factors have accelerated the recovery of Egyptian trade receivables during 2024 and the Group remains optimistic that its receivable position will continue to improve during 2025. \n Capital expenditure on continuing operations for the year was marginally lower at $26.1m (2023: $26.7m). On Block 16-1 - TGT Field, a two-well infill programme completed successfully in October on time and under budget. In Egypt, on El Fayum, the drilling of a second exploration commitment well completed in September, encountering oil-bearing reservoirs in Abu Roach G formation. In addition, a further El Fayum development well was put on production in December 2024. \n Net cash outflows from financing activities of $51.6m (2023: $50.1m outflow) included outflows in relation to the RBL of $20.0m in May 2024 (2023: $22.4m in June 2023 and $12.6m in December 2023) following the half year redetermination process, plus a further $10.0m principal repayment in September 2024. The amount drawn stood at $nil at year end (2023: $30.0m) and the RBL facility, which is secured only over the Group's interest in the Vietnam producing assets, matures in July 2025. \n There was a net outflow of $9.2m in relation to the NBE revolving credit facility (2023: $nil). This facility allows PEF to draw down 60% of the value of each El Fayum invoice in USD. The amount drawn under the NBE facility as at 31 December 2024 was $nil (2023: $9.2m). \n The Group is now debt free. \n Financing activities also included $2.9m outflow (2023: $2.8m) in relation to the $3.0m extension of the share buyback programme and there was a $5.9m outflow (2023: $5.6m) following payment of the interim and final dividends of $1.7m and $4.2m respectively for the 2023 financial year. The final dividend for the 2023 financial year was approved by shareholders at the AGM in May 2024. \n Tax strategy and total tax contribution \n Tax is managed proactively and responsibly with the goal of ensuring that the Group is compliant in all countries in which it holds interests. Any tax planning undertaken is commercially driven and within the spirit as well as the letter of the law. \n This approach forms an integral part of the Group's sustainable business model. \n The Group's Code of Business Conduct and Ethics seeks to build open, cooperative and constructive relationships with tax authorities and governmental bodies in all territories in which it operates. The Group supports greater transparency in tax reporting to build and maintain stakeholder trust. Our Tax Strategy statement can be found on our website at www.pharos.energy/responsibility/policy-statements/ . We have a number of overseas subsidiaries which were set up some time ago and the Group is now proactively planning to bring these into the UK tax net to ensure greater transparency and comparability. No additional taxes are expected to be due as a result of this exercise. \n During 2024, the total payments to governments for the Group amounted to $160.3m (2023: $188.0m), of which $138.7m or 87% (2023: $166.5m or 89%) was related to the Vietnam producing licence areas, of which $92.9m (2023: $110.8m) was for indirect taxes based on production entitlement. In Egypt, payments to government totalled $19.1m (2023: $19.3m), of which $18.5m (2023: $18.4m) related to indirect taxes based on production entitlement. \n Balance sheet \n Intangible assets increased during the year to $21.8m (2023: $18.2m). Additions for the year related to Blocks 125 & 126 in Vietnam $2.8m (2023: $3.1m) and Egypt $2.8m (2023: $8.0m), which included $2.2m in respect of the East Saad 1X exploration well drilled on El Fayum. During the prior year, the first exploration well on NBS (NBS-SW1X) was declared a commercial discovery in September 2023 and put on production in December 2023, and exploration costs of $2.9m relating to the development lease were transferred to property, plant and equipment. There were total Exploration and evaluation expenditure impairment charges of $2.0m in the year (2023: $6.5m), which included $1.4m write-off of an El Fayum exploration well in the Abu Roach G and Upper Bahariya formations drilled in the prior year. \n The movements in the Property, Plant and Equipment asset class are shown above. \n Impairment reversals/(charges) \n As a result of previously recognised impairment losses, combined with the licence extensions, and movements in 2P reserves, we have tested each of our oil and gas producing properties for impairment. The results of these impairment tests are summarised below. For each producing property, the recoverable amount has been determined using the value in use method. The recoverable amount is calculated using a discounted cash flow valuation of the 2P production profile. \n   \n \n \n \n \n Summary of Impairments - Oil and Gas properties \n   \n \n \n TGT \n $m \n \n \n CNV \n $m \n \n \n El Fayum \n $m \n \n \n NBS \n $m \n \n \n Total \n $m \n \n \n \n \n 2024 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Pre-tax impairment credit \n \n \n 19.8 \n \n \n 3.6 \n \n \n 4.9 \n \n \n - \n \n \n 28.3 \n \n \n \n \n Deferred tax charge \n \n \n (7.1) \n \n \n (1.3) \n \n \n - \n \n \n - \n \n \n (8.4) \n \n \n \n \n Post-tax impairment credit \n \n \n 12.7 \n \n \n 2.3 \n \n \n 4.9 \n \n \n - \n \n \n 19.9 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Reconciliation of carrying amount: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n As at 1 January 2024 \n \n \n 158.6 \n \n \n 65.0 \n \n \n 54.7 \n \n \n 1.0 \n \n \n 279.3 \n \n \n \n \n Additions \n \n \n 12.8 \n \n \n 1.0 \n \n \n 3.5 \n \n \n 0.5 \n \n \n 17.8 \n \n \n \n \n Changes in decommissioning asset 1 \n \n \n (4.9) \n \n \n - \n \n \n - \n \n \n - \n \n \n (4.9) \n \n \n \n \n DD&A \n \n \n (32.7) \n \n \n (9.4) \n \n \n (4.6) \n \n \n (0.4) \n \n \n (47.1) \n \n \n \n \n Impairment reversal \n \n \n 19.8 \n \n \n 3.6 \n \n \n 4.9 \n \n \n - \n \n \n 28.3 \n \n \n \n \n As at 31 December 2024 \n \n \n 153.6 \n \n \n 60.2 \n \n \n 58.5 \n \n \n 1.1 \n \n \n 273.4 \n \n \n \n \n   \n \n \n \n \n   \n \n \n TGT \n $m \n \n \n CNV \n $m \n \n \n El Fayum \n $m \n \n \n NBS \n $m \n \n \n Total \n $m \n \n \n \n \n 2023 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Pre-tax impairment (charge)/credit \n \n \n (46.3) \n \n \n 0.3 \n \n \n (11.0) \n \n \n (1.9) \n \n \n (58.9) \n \n \n \n \n Deferred tax credit/(charge) \n \n \n 16.5 \n \n \n (0.3) \n \n \n - \n \n \n - \n \n \n 16.2 \n \n \n \n \n Post-tax impairment charge \n \n \n (29.8) \n \n \n - \n \n \n (11.0) \n \n \n (1.9) \n \n \n (42.7) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Reconciliation of carrying amount: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n As at 1 January 2023 \n \n \n 242.4 \n \n \n 76.4 \n \n \n 62.5 \n \n \n - \n \n \n 381.3 \n \n \n \n \n Additions \n \n \n 1.3 \n \n \n 3.0 \n \n \n 7.6 \n \n \n - \n \n \n 11.9 \n \n \n \n \n Transfer from intangible assets \n \n \n - \n \n \n - \n \n \n - \n \n \n 2.9 \n \n \n 2.9 \n \n \n \n \n Changes in decommissioning asset 1 \n \n \n - \n \n \n (2.5) \n \n \n - \n \n \n - \n \n \n (2.5) \n \n \n \n \n DD&A \n \n \n (38.8) \n \n \n (12.2) \n \n \n (4.4) \n \n \n - \n \n \n (55.4) \n \n \n \n \n Impairment (charge)/reversal \n \n \n (46.3) \n \n \n 0.3 \n \n \n (11.0) \n \n \n (1.9) \n \n \n (58.9) \n \n \n \n \n As at 31 December 2023 \n \n \n 158.6 \n \n \n 65.0 \n \n \n 54.7 \n \n \n 1.0 \n \n \n 279.3 \n \n \n \n \n   \n 1 Changes in decommissioning asset for TGT are due to a change in discount rate and field abandonment plan, including two new infill wells completed in October 2024. CNV reflects a change in discount rate and field abandonment plan (2023: change in discount rate only for TGT; change in field abandonment plan and discount rate for CNV) \n Cash is set aside into abandonment funds for both TGT and CNV. These abandonment funds are controlled by PetroVietnam and, as the Group retains the legal rights to the funds pending commencement of abandonment operations, they are treated as other non-current assets in the Financial Statements. As at 31 December 2024, the Group's total contribution to the funds was $56.0m (2023: $53.7m). \n Oil inventory was $9.3m at 31 December 2024 (2023: $3.3m), of which $9.1m related to Vietnam and $0.2m to Egypt. Trade and other receivables decreased to $47.9m (2023: $62.3m) of which $14.5m (2023: $19.0m) relates to Vietnam and $32.7m (2023: $42.7m) relates to Egypt. Egypt trade receivables include $28.1m from EGPC, after expected credit loss provision of $1.4m recognised under IFRS 9, where collection has been delayed by the devaluation of EGP and ongoing restrictions on outgoing USD transfers by the Central Bank of Egypt previously highlighted (2023: trade receivable from Egypt $33.4m after expected credit loss provision of $4.0m). For Egypt in 2023, the closing balance included $4.9m of carry which reflected the remaining disproportionate funding contribution from IPR to compensate for net cash flows between the economic date of the farm down transaction, 1 July 2020, and the completion date of 21 March 2022. The carry decreased every month by the cash calls received from IPR and was utilised in full by April 2024. \n Cash and cash equivalents at the end of the year were $16.5m (2023: $32.6m) and the decrease was mainly driven by $39.2m net repayment of borrowings (2023: $40.5m) and $10.6m reduction in utilisation of the carry compared to prior year, offset by cash flows from operating activities of $54.0m (2023: $44.9m) due to working capital inflows. \n Trade and other payables were higher at $14.3m (2023: $12.5m), of which $5.3m (2023: $7.9m) relates to Egypt, primarily net JV payables in relation to operations and Stratton royalty obligation. $5.1m (2023: $2.2m) relates to Vietnam payables and $3.9m (2023: $2.4m) Head Office payables. Tax payables decreased to $3.2m (2023: $5.8m) which relates to Vietnam taxes on oil and gas revenues. \n Borrowings were $nil (2023: $40.5m) following voluntary repayment of the RBL loan facility (2023: $31.3m RBL loan) and the NBE revolving credit facility was also repaid in full (2023: $9.2m NBE credit facility). \n Long-term provisions comprise the Group's decommissioning obligations for the Vietnam fields. The decommissioning provision decreased from $53.8m at 2023 year end to $51.1m at 31 December 2024, as $2.2m unwind of the decommissioning provision and $0.9m impact of two new infill wells on TGT, were offset by an increase in discount rate from 3.87% to 4.58% for both TGT and CNV ($2.4m), finalisation of revised abandonment plans for both fields ($0.8m) and also extension of the production licences for both TGT and CNV to December 2031 and December 2032 respectively ($2.6m). The amounts set aside into the abandonment funds total $56.0m (2023: $53.7m). No decommissioning obligation exists under the El Fayum and NBS Concessions.  \n   \n Own shares \n The Pharos Employee Benefit Trust holds ordinary shares of the Company for the purposes of satisfying long-term incentive awards for senior management. At the end of 2024, the trust held 3,784,406 (2023: 2,126,857), representing 0.89% (2023: 0.49%) of the issued share capital. \n In addition, as at 31 December 2024, the Company held 9,122,268 (2023: 9,122,268) treasury shares, representing 2.15% (2023: 2.11%) of the issued share capital. All shares purchased under the on-market buyback programme originally announced in July 2022 and extended in January 2023 and December 2023 have been cancelled rather than retained in treasury. \n   \n Share buyback and dividend framework \n Following a period of relatively stable commodity prices and a strengthening of the Group's liquidity position, the Company committed to shareholder returns in the form of share buybacks and dividends. On 6 December 2023, the Company announced the continuation of a further $3.0m share buyback programme in 2024 (the Second Programme Extension), of which $2.9m had been incurred by the end of December 2024. The programme subsequently completed in full during January 2025. \n   \n Pharos has a clear sustainable policy for regular dividend payments and this has been set at returning no less than 10% of Operating Cash Flow (OCF) each year in two tranches: \n   \n - An interim dividend of 33% of the previous year's total dividend, payable in January of the following year; and \n - A final dividend payable in July of the following year. \n   \n On 6 December 2023, an interim dividend of 0.33 pence per share, $1.7m equivalent, was declared by the Board in respect of the year ended 31 December 2023 and paid on 24 January 2024 to shareholders on the register at the close of business on 22 December 2023. A final dividend of 0.77 pence per share in respect of the year ended 31 December 2023, $4.2m equivalent, was approved by the shareholders at the Company's AGM in May 2024 and subsequently paid on 19 July 2024 to shareholders on the register at the close of business on 14 June 2024. This took the 2023 full year dividend to 1.10 pence per share, an increase of 10% on the prior year. \n   \n The Board resolved to pay an interim dividend of 0.363 pence per share, $1.8m equivalent, in respect of the year ended 31 December 2024 and this was paid on 22 January 2025 to shareholders on the Company's register as at 20 December 2024. \n   \n The Board have recommended a final dividend in respect of the year ended 31 December 2024 of 0.847 pence per share subject to approval of the shareholders at the Company's 2025 AGM. Subject to this approval, the final dividend will be paid in full on 18 July 2025 in Pounds Sterling to ordinary shareholders on the register at the close of business on 13 June 2025, with an ex-dividend date of 12 June 2025. This would take the 2024 full year dividend to 1.210 pence per share, which is 10% higher than prior year. \n   \n Going concern \n Pharos continuously monitors its business activities, financial position, cash flows and liquidity through detailed forecasts. Scenarios and sensitivities are also regularly presented to the Board, including changes in commodity prices and in production levels from the existing assets, plus other factors that could affect the Group's future performance and position. \n A base case forecast has been considered that utilises oil prices of $74.7/bbl in 2025 and $72.9/bbl in 2026. The key assumptions and related sensitivities include a \"Reasonable Worst Case\" (RWC) scenario, where the Board has taken into account the risk of an oil price crash broadly similar to what occurred in 2020. It assumes the Brent oil price down by a third to $49.5/bbl in April 2025 and gradually recovers to base price in next 12 months, concurrent with 5% reductions in Vietnam and Egypt production compared to our base case from April 2025. Both the base case and RWC take into account effect of hedging that has already been put in place at 31 December 2024 and subsequent hedges placed in 2025, now covering 20% of total group entitlement production for 2025. We have therefore secured an average floor price and ceiling price of c. $63.5/bbl and c. $87.6/bbl, respectively, for the entire hedged volumes in 2025. Under the RWC scenario, we have identified appropriate mitigating actions, which could look to defer uncommitted expenditure as required. \n In addition, we have conducted a reverse stress test sensitivity analysis that indicates the magnitude of oil price decline required to breach our financial headroom, assuming all other variables remain unchanged.  \n Our business in Vietnam remains robust, with a low breakeven oil price. In Q4 2025 to 1Q 2026, we have three infill wells and one appraisal well on TGT, and one infill well on CNV planned to be drilled. The Group voluntarily repaid the RBL loan facility in full on 17 September 2024 and is currently debt-free. \n In Egypt, we have also focused on economically efficient programmes, including development wells and recompletions on both El-Fayum and NBS in 2025. Pharos has an extended $10m revolving credit facility until November 2025. \n On the basis of the forecasts provided above, the Group is expected to have sufficient financial headroom for the period up to 31 March 2026. Based on this analysis, the Directors have a reasonable expectation that the Group has adequate resources to continue its operations in the foreseeable future. Therefore, the Financial Statements have been prepared using the going concern basis of accounting.  \n Financial outlook \n We are in a strong position as we move into 2025 with a number of value catalysts: \n ·      An extensive drilling campaign in Vietnam with the approval of the licence extensions on our producing assets TGT and CNV \n ·      Look forward to approval of the consolidation of  our concessions in Egypt with improved fiscal terms and increased longevity \n ·      A strong and stable balance sheet with improved liquidity position. \n ·      Continued improvement in the economic situation in Egypt unlocking more of our receivables position \n Stable returns to shareholders are expected in 2025, with the dividend policy of no less than 10% of OCF. \n   \n   \n   \n   \n   \n Sue Rivett \n Chief Financial Officer \n \n \n   \n \n \n \n \n Condensed consolidated income statement \n \n \n \n \n \n \n \n \n   \n \n \n \n \n for the year to 31 December 2024 \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Notes \n \n \n $ million \n \n \n $ million \n \n \n   \n \n \n \n \n Continuing operations \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Revenue \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 3 \n \n \n 136.0 \n \n \n 167.9 \n \n \n   \n \n \n \n \n Cost of sales \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 4 \n \n \n (89.8) \n \n \n (109.0) \n \n \n   \n \n \n \n \n Impairment reversal/(charge) - Financial asset \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 4 \n \n \n 2.5 \n \n \n (2.2) \n \n \n   \n \n \n \n \n Gross profit \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 48.7 \n \n \n 56.7 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n Administrative expenses \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (9.1) \n \n \n (9.0) \n \n \n   \n \n \n \n \n Other operating costs \n \n \n \n \n \n \n \n \n \n \n \n 5 \n \n \n (0.8) \n \n \n - \n \n \n   \n \n \n \n \n Pre-licence costs \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (0.8) \n \n \n (0.4) \n \n \n   \n \n \n \n \n Impairment charge - Intangibles assets \n \n \n 3, 9 \n \n \n (2.0) \n \n \n (6.5) \n \n \n   \n \n \n \n \n Impairment reversal/(charge) - Property, plant and equipment \n \n \n 3, 10 \n \n \n 28.3 \n \n \n (58.9) \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n Operating profit/(loss) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 64.3 \n \n \n (18.1) \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n Other/restructuring expense \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 5 \n \n \n (0.4) \n \n \n (0.6) \n \n \n   \n \n \n \n \n Gain/(loss) on fair value movement of financial asset \n \n \n \n \n \n 0.3 \n \n \n (0.3) \n \n \n   \n \n \n \n \n Investment revenue \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 0.4 \n \n \n 0.2 \n \n \n   \n \n \n \n \n Finance costs \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 6 \n \n \n (3.9) \n \n \n (10.2) \n \n \n   \n \n \n \n \n Profit/(loss) before tax \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 3 \n \n \n 60.7 \n \n \n (29.0) \n \n \n   \n \n \n \n \n Income tax charge \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 7 \n \n \n (37.1) \n \n \n (19.8) \n \n \n   \n \n \n \n \n Profit/(loss) for the year \n \n \n       \n \n \n 23.6 \n \n \n (48.8) \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n Profit/(loss) per share (cents) \n \n \n 8 \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n Basic \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 5.7 \n \n \n (11.4) \n \n \n   \n \n \n \n \n Diluted \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 5.4 \n \n \n (11.4) \n \n \n   \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n   \n   \n \n \n   \n \n \n \n \n Condensed consolidated statement of comprehensive income \n \n \n   \n \n \n \n \n for the year to 31 December 2024 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n $ million \n \n \n $ million \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n Profit/(loss) for the year \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 23.6 \n \n \n (48.8) \n \n \n   \n \n \n \n \n Items that may be subsequently reclassified to profit or loss: \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n Fair value (loss)/gain arising on hedging instruments during the year                                          11 \n \n \n (0.1) \n \n \n 0.6 \n \n \n   \n \n \n \n \n Less: Loss arising on hedging Instruments reclassified to profit or loss                                        11 \n \n \n 0.1 \n \n \n 0.2 \n \n \n   \n \n \n \n \n Total comprehensive income/(loss) for the year \n \n \n \n \n \n 23.6 \n \n \n (48.0) \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n The above condensed consolidated income statement and condensed consolidated statement of comprehensive income should be read in conjunction with the accompanying notes. \n \n \n \n \n \n CONDENSED CONSOLIDATED Balance sheet \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n Group \n \n \n   \n \n \n   \n \n \n Company \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 2024 \n   \n \n \n 2023 \n Restated 1 \n \n \n   \n \n \n 2024 \n   \n \n \n 2023 \n Restated 1 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Notes \n \n \n $ million \n \n \n $ million \n \n \n   \n \n \n $ million \n \n \n $ million \n \n \n \n \n Non-current assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Intangible assets \n \n \n \n \n \n \n \n \n \n \n \n 9 \n \n \n 21.8 \n \n \n 18.2 \n \n \n \n \n \n - \n \n \n - \n \n \n \n \n Property, plant and equipment \n \n \n \n \n \n \n \n \n 10 \n \n \n 273.5 \n \n \n 279.3 \n \n \n \n \n \n - \n \n \n - \n \n \n \n \n Right of use asset \n \n \n \n \n \n \n \n \n 10 \n \n \n 0.2 \n \n \n 0.5 \n \n \n \n \n \n - \n \n \n - \n \n \n \n \n Investments \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n - \n \n \n - \n \n \n \n \n \n 287.0 \n \n \n 261.5 \n \n \n \n \n Loan to subsidiaries \n \n \n \n \n \n - \n \n \n - \n \n \n \n \n \n 18.4 \n \n \n 16.8 \n \n \n \n \n Other assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 57.8 \n \n \n 58.6 \n \n \n \n \n \n - \n \n \n - \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 353.3 \n \n \n 356.6 \n \n \n \n \n \n 305.4 \n \n \n 278.3 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Current assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Inventories \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 9.3 \n \n \n 3.3 \n \n \n \n \n \n - \n \n \n - \n \n \n \n \n Trade and other receivables \n \n \n \n \n \n                            \n \n \n \n \n \n 47.9 \n \n \n 62.3 \n \n \n \n \n \n 0.5 \n \n \n 0.4 \n \n \n \n \n Tax receivables \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 0.3 \n \n \n 2.2 \n \n \n \n \n \n 0.2 \n \n \n 0.2 \n \n \n \n \n Cash and cash equivalents \n \n \n \n \n \n \n \n \n \n \n \n 16.5 \n \n \n 32.6 \n \n \n \n \n \n 0.8 \n \n \n 1.7 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 74.0 \n \n \n 100.4 \n \n \n \n \n \n 1.5 \n \n \n 2.3 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Total assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 427.3 \n \n \n 457.0 \n \n \n \n \n \n 306.9 \n \n \n 280.6 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Current liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Trade and other payables \n \n \n \n \n \n \n \n \n \n \n \n (14.3) \n \n \n (15.7) \n \n \n \n \n \n (3.8) \n \n \n (2.3) \n \n \n \n \n Borrowings \n \n \n \n \n \n \n \n \n \n \n \n - \n \n \n (29.5) \n \n \n \n \n \n - \n \n \n - \n \n \n \n \n Lease Liabilities \n \n \n \n \n \n \n \n \n \n \n \n (0.2) \n \n \n (0.3) \n \n \n \n \n \n - \n \n \n - \n \n \n \n \n Tax payables \n \n \n \n \n \n \n \n \n \n \n \n (3.2) \n \n \n (2.6) \n \n \n \n \n \n - \n \n \n (0.9) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (17.7) \n \n \n (48.1) \n \n \n \n \n \n (3.8) \n \n \n (3.2) \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Non-current liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Other payables \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (0.2) \n \n \n (0.5) \n \n \n \n \n \n - \n \n \n - \n \n \n \n \n Deferred tax liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (67.5) \n \n \n (68.2) \n \n \n \n \n \n - \n \n \n - \n \n \n \n \n Borrowings \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n - \n \n \n (11.0) \n \n \n \n \n \n - \n \n \n - \n \n \n \n \n Lease liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n - \n \n \n (0.2) \n \n \n \n \n \n - \n \n \n - \n \n \n \n \n Long term provisions \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (51.1) \n \n \n (53.8) \n \n \n \n \n \n - \n \n \n - \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (118.8) \n \n \n (133.7) \n \n \n \n \n \n - \n \n \n - \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Total liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (136.5) \n \n \n (181.8) \n \n \n \n \n \n (3.8) \n \n \n (3.2) \n \n \n \n \n Net assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 290.8 \n \n \n 275.2 \n \n \n \n \n \n 303.1 \n \n \n 277.4 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Equity \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Share capital \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 33.1 \n \n \n 33.7 \n \n \n \n \n...

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