Capricorn Energy flags takeover risk despite profitable half

Edinburgh-based Capricorn Energy has reported a profitable first half of the year, although the group has cautioned that the potential collapse of two ongoing takeover bids represents a significant threat to its future. In its interim results, the company identified the risk that proposed transactions may fail to complete as one of the principal uncertainties facing the business. The firm is currently the subject of competing acquisition offers, with Saudi-based Alamadiyaf al-Masiyyah for Trading initially courting the company before Genel Energy intervened with a counter-offer valuing the group at approximately $360 million. Although shareholders voted in favour of the acquisition, DNO ASA has subsequently entered the process with a bid worth $396 million. The report indicates that the completion of either transaction is anticipated within the next 12 months.

Beyond the uncertainty surrounding the change of control, Capricorn Energy outlined several other key risks, including volatility in oil and gas prices, an adverse outcome in a legacy tax arbitration in Senegal, and potential underperformance of its Egyptian assets. Despite these challenges, the company generated $100 million in revenue from its operations in Egypt. The group’s activities in the country are expected to benefit from a merged concession agreement that became effective on 1 July 2025. Management stated that this development creates an improved framework for long-term investment across its core producing assets. During the period, the company drilled 18 development wells and two near-field exploration wells, which are expected to provide further drilling opportunities. This activity should drive full-year production above the mid-point of the guidance range of 18,000 to 22,000 barrels of oil equivalent per day.

Financially, the company recorded a $36 million profit from its Egyptian assets during the first half. However, a $12 million loss from other operations reduced the profit after taxation to $24 million, marking an improvement on the $6 million loss recorded in the equivalent period of 2025. The results were impacted by $14 million in administration charges, which included $2 million in legal costs associated with the ongoing takeover offers. Chief executive Randy Neely noted that the ratification of the consolidated concession agreement in Egypt supports the resource conversion funnel and extends the life of key assets. He added that the company has progressed development plans with partner and operator Cheiron to grow production and unlock value. Capricorn Energy, formerly known as Cairn Energy, was founded in 1981 and changed its name in 2021 following a legal dispute with India. The group holds stakes in onshore upstream oil and gas operations across four concession areas in Egypt’s Western Desert, which it acquired in 2021.