Karoon Gas Australia Stock Earnings Reports

Karoon reported H1 2025 underlying NPAT of USD 45m, weighed down by lower oil prices and timing of a Baúna cargo, while production increased versus H1 2024 driven by improved Baúna FPSO uptime. The company completed the strategic acquisition of the Baúna FPSO (acquired 30 April 2025), which materially lowers future operating costs, extends economic life to ~2039 and led to a 45% increase in 2P reserves at Baúna to 52.7 million barrels. Karoon is targeting direct operatorship of the FPSO by end-H1 2026 and expects annual savings of USD 30–40m once operatorship and efficiency initiatives are embedded, though transition costs of USD 5–7m remain for 2025. A partial ESP failure at well SPS-92 reduced that well to ~2.5–3.0 kbbl/d; a heavy workover is required and full restoration is not expected before Q2 2026. Who Dat performed in line with expectations (net ~1.4m boe H1), with a planned E6 sidetrack to drill in Q3 2025 and FID for Who Dat East targeted late 2025/early 2026. Neon’s 2C contingent resources rose ~54% to 86.5m bbl and Neon moved into a three-stage defined phase with a targeted potential FID in H2 2026; farm-down process has commenced. Financially, Karoon ended the half with net debt ~USD 238m, liquidity ~USD 452m, returned USD 53m to shareholders (dividend + buyback), announced an AUD 0.024 unfranked dividend and is continuing a USD 75m on-market buyback. Guidance was updated: Baúna 2025 production was upgraded (7.3–7.8m bbl), Who Dat guidance narrowed, and unit opex midpoint reduced ~10% to USD 12–15/boe. Key near-term risks: SPS-92 repair timing/costs and rig availability, ongoing FPSO transition and maintenance, and commodity price volatility affecting realized revenue and contingent consideration valuations.