RH Petrogas Limited: FY2025 Q4 Profit Guidance and Operational Update

On 20 February 2026, RH Petrogas Limited issued a profit guidance update for its unaudited financial results for the fourth quarter and twelve-month period ended 31 December 2025. The announcement provides insight into the company’s operational performance, strategic direction, and expected financial outcomes for the reporting periods.

Key Financial Metrics and Performance Summary

The company has indicated that it expects to record a net loss for Q4 2025, a reversal from the net profit recorded in the same quarter of the previous year. This anticipated loss is primarily attributed to the write-off of approximately US\$4.7 million in exploration and evaluation expenditures related to the unsuccessful Karim-1 exploration well under the Kepala Burung Production Sharing Contract (PSC).

Additionally, the company had previously issued profit guidance for Q3 2025, citing an expected loss due to a US\$7.5 million cost write-off for a 3D seismic survey in the Salawati PSC offshore work area.

Despite these quarterly losses, RH Petrogas projects profitability for the full financial year 2025, with positive EBITDAX and positive net cash flows from operations in both Q4 2025 and the year as a whole.

Exceptional Expenses

• Q4 2025: US\$4.7 million write-off for the unsuccessful Karim-1 exploration well.
• Q3 2025: US\$7.5 million write-off for 3D seismic survey costs in the Salawati PSC.

Operational and Strategic Updates

• The Group continues to focus on exploration, development, and production of oil and gas assets.
• Preparation is underway to drill the Northwest Klagagi-1 exploration well, with spudding expected around the end of Q1 2026 as part of the PSC’s firm work commitment.

Outlook and Forecasted Events

Despite the losses resulting from exploration write-offs in Q3 and Q4 2025, RH Petrogas expects to remain profitable for the full year 2025, with a positive EBITDAX and operating cash flow. The success of upcoming exploration activities, particularly the Northwest Klagagi-1 well, will be critical in supporting the Group’s long-term growth strategy and enhancing stakeholder value.

Chairman’s Statement

No separate Chairman’s statement was included in the report. However, the communication from Group CEO & Executive Director, Chang Cheng-Hsing Francis, advised shareholders and investors to “exercise caution when dealing in the shares of the Company.” This indicates a cautious and prudent tone given the recent exploration setbacks and associated financial impact.

Conclusion and Investment Recommendations

Overall Assessment: The company’s financial performance in the latter half of 2025 was negatively impacted by significant exploration-related write-offs. However, the ability to maintain overall annual profitability, positive EBITDAX, and positive net cash flow from operations demonstrates underlying operational resilience. The outlook remains dependent on the success of future exploration activities, particularly the Northwest Klagagi-1 well.

• If you currently hold the stock:
  Consider maintaining a cautious approach. Monitor the company’s upcoming exploration results and the full audited financial release. The underlying business remains cash flow positive, but recent exploration setbacks highlight inherent risks in the sector.
• If you do not currently hold the stock:
  Exercise patience and wait for more clarity following the next exploration cycle and full-year results. The company is exposed to exploration risks, and upcoming drilling outcomes will be key to future growth prospects.

Disclaimer: The above analysis and recommendations are based solely on the information presented in the company’s profit guidance and should not be construed as personalized investment advice. All investments carry risk. Please consult your financial advisor before making any investment decisions.

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