Kistos Energy reports $80.8m half-year profit on production surge

Kistos Energy has reported a pre-tax profit of $80.8 million for the first half of the year, reversing a loss of $6.9 million recorded in the same period last year. The UK-listed company attributed the financial turnaround to the full benefit of strong market prices and a significant increase in oil and gas delivery. Production in Norway trebled during the period, while the firm also counted new acquisitions in Oman towards its results.

The company stated that its pro-forma production reached 20,800 barrels of oil equivalent per day, up from 6,200 boepd in the first half of 2025. Correspondingly, pro-forma first-half revenues rose to $290 million, compared with $87.9 million year on year. Executive chairman Andrew Austin said the group generated significant cash in the period, supported by strong operational performance across its asset portfolio. He confirmed that the company remained on track to meet its full-year pro forma production guidance of 19,000 to 21,000 boepd.

In Norway, the COSL Pioneer has commenced drilling following the completion of Balder Phase V, with first oil scheduled for December 2026. The King well, drilled from the Ringhorne platform, started up in August 2026. Austin noted that the sanctioning of the Balder Next New Wells project in June 2026 marked an important milestone. This development delivered a reserves replacement ratio of 120% across the existing asset base and strengthened the 2P reserves base, which has more than doubled over the past year alongside new interests in Oman.

In the UK, the firm is eyeing a production boost through tie backs. This is linked to a long-awaited government plan to enable transitional energy certificates, a key component of the North Sea Future plan. Kistos owns non-operated stakes alongside Serica Energy, which took full control of production in the Greater Laggan Area. The company plans to extract near-term value from infill drilling and further third-party tiebacks to the Shetland Gas Plant. It also noted that the Victory field, now owned by the Adura joint venture, is expected to continue delivering significant unit operating expenditure reduction.

Austin added that the group remains focused on realising organic growth opportunities, including further development of the Balder area and enhanced terms secured under Block 9 EPSA in Oman. He stated that Kistos remains disciplined in its approach to growth and continues to see a range of value-accretive merger and acquisition opportunities across its core geographies. The company believes its track record and ability to execute transactions make it an attractive counterparty while maintaining financial strength and operational reliability.