Horizon Oil Limited

FY '26 revenue was USD 107.2 million, broadly in line with the comparative period; EBITDAX was USD 56.4 million; operating cash flow was USD 47.2 million, up 32%; free cash flow was USD 36.6 million; statutory profit after tax was USD 11.1 million; year-end cash was USD 37.4 million; and net debt was USD 11.3 million. Production reached a record 2.15 million barrels of oil equivalent and sales volumes reached 1.98 million barrels of oil equivalent. Cash operating costs were maintained below USD 25 per boe, with Kyle citing approximately USD 21 per boe. For reserves and resources, net 2P reserves rose 51% to 13.6 million boe and net 2C contingent resources rose 61% to 19.8 million boe. Management said the 11-month Thailand contribution supported results, and about 130,000 barrels of crude inventory on hand at June 30 were sold early in 2027, generating further revenues in excess of USD 10 million. Guidance was mostly qualitative: Thailand compression and tie-in work should lift production further, Mahato has infill drilling and exploration activity underway, Palm Valley has appraisal wells, and the company sees multiple infrastructure-led growth opportunities across the portfolio; no formal next-quarter or full-year financial guidance was given.

Richard Beament framed FY '26 as a reset in scale and cash flow, saying Horizon is now a 5-country Asia Pacific producer with 9 producing assets. His message was that the company is building a broader, longer-dated platform with reliable production, low costs, disciplined reinvestment, and shareholder returns. Tone was constructive and confident, with repeated emphasis that the enlarged portfolio gives Horizon more ways to grow without taking undue risk.

Kyle Keen focused on the cash flow bridge and balance sheet. He highlighted USD 47.2 million of operating cash flow funding USD 33.1 million paid to shareholders, USD 10.6 million of debt repayments, and targeted investment, while year-end cash remained USD 37.4 million and net debt was only USD 11.3 million. He also pointed to cash operating costs of approximately USD 21 per boe and noted that the decline in realized sales price reflected the addition of gas assets; statutory profit after tax was USD 11.1 million after USD 32.2 million of amortization.

On the dividend, management said dividends remain a priority but explained the lower final dividend in the context of heavy near-term capital needs, including 5 wells currently being drilled or committed, 3 more likely in Sinphuhorm, booster compression in Thailand, and ongoing workovers and tie-ins. On debt, Richard said modest net debt is acceptable because the portfolio is now broader and more cash-generative, though the company does not intend to gear up substantially unless there is a particularly accretive opportunity. On the Strait of Hormuz question, he said the main effect has been a positive strategic one through higher oil prices and, more importantly, greater emphasis on regional energy security. On Cue, he said Mahato looks most interesting near term because of infill drilling and a high-impact exploration well, while Palm Valley and Maari also offer opportunity.