RH Petrogas Limited (SGX: T13) 2025 Full-Year and Q4 Financial Analysis

RH Petrogas Limited, a Singapore-listed oil and gas exploration and production company, released its unaudited condensed interim financial statements for the fourth quarter and full year ended 31 December 2025. The results reflect the challenging commodities environment, operational setbacks, and notable exceptional items. Below, we analyze the key financial metrics, operational highlights, and recent corporate developments.

Key Financial Metrics & Performance Comparison

Historical Performance & Trends

2025 saw a substantial contraction in RH Petrogas’s earnings and profitability. Revenue dropped 16.2% YoY, gross profit declined 32.4%, and net profit plunged by 80.7%. The Q4 result was a net loss of \$0.16m, compared to a \$5.17m profit a year earlier. This deterioration was driven by lower realised oil prices (down 13.9% YoY for FY 2025), reduced production volume due to operational disruptions (notably power outages), increased equipment and maintenance costs, and significant write-offs of unsuccessful exploration assets.

Exceptional Items & One-Offs

• Write-off of unsuccessful exploration and evaluation expenditure totaling \$12.26m for FY 2025, including the costs incurred for the Karim-1 well and a 3D seismic survey in Salawati PSC.
• Reversal of a prior legal compensation provision (\$984,000) after a favorable judicial review outcome for a land dispute in Indonesia.
• No impairment losses recognized for oil and gas properties or exploration assets, despite challenging market conditions and asset write-offs.

Dividends

The board has proposed a final dividend of S\$0.003 per share for FY 2025, representing a return to dividend payouts after a year with no dividends. The dividend is tax-exempt (one-tier) and subject to shareholder approval at the next AGM.

Cash Flow & Balance Sheet

• Operating cash flows remained positive at \$21.34m for FY 2025, though down from \$33.80m in FY 2024.
• Cash and bank balances stood at \$65.44m at year-end, up from \$55.81m a year earlier, providing continued liquidity.
• Net asset value per share improved slightly to \$7.08 for the Group.

Corporate Actions and Share Capital

• 740,000 new shares were issued in FY 2025 from the exercise of employee share options. No share buybacks, placements or treasury shares were reported.
• No material related-party transactions or interested person transactions above S\$100,000 were disclosed.

Legal and Governance Developments

• Following whistleblower allegations, an independent review and legal assessment were completed. A series of governance, compliance, and procurement improvements were implemented throughout 2025 and early 2026.
• No subsequent events requiring adjustment to the financial statements were disclosed.

Operational Update & Outlook

• Brent crude prices averaged \$69 per barrel in 2025, down 15% YoY, with Q4 prices even lower. The oil market outlook for 2026 remains uncertain amid supply glut concerns, global economic risks, and geopolitical shifts.
• RH Petrogas is preparing for the drilling of the Northwest Klagagi-1 exploration well in Kepala Burung PSC in Q2 2026 and anticipates a 3D seismic acquisition project and a new exploration well in Salawati PSC in the second half of 2026.
• The Group is focused on cost management and execution of its planned work program.

Directors’ Pay and Remuneration

The remuneration for directors and key management personnel will be detailed in the Annual Report for FY 2025, but no specific figures are disclosed in this interim report.

Chairman’s Statement

Conclusion & Recommendations

Overall Financial Performance & Outlook: RH Petrogas’s FY 2025 results are weak, marked by significant declines in revenue, profit, and cash flow, largely due to lower oil prices, operational disruptions, and substantial exploration write-offs. Management is proactively addressing governance and operational risks, and liquidity remains strong. The proposed dividend signals some confidence but is modest relative to historical profitability.

Investor Recommendations:

• If you currently hold RH Petrogas shares: Consider holding if you value the company’s liquidity, dividend resumption, and exposure to oil price recovery. However, monitor upcoming exploration results and oil price trends closely. If you are risk-averse and concerned by recent earnings volatility, you may want to rebalance your exposure.
• If you are not currently holding RH Petrogas shares: Exercise caution before initiating a position. Wait for evidence of operational turnaround, successful exploration outcomes, or sustained improvement in oil prices. The sector remains volatile and the company’s performance is sensitive to external shocks.

Disclaimer: This analysis is based solely on the company’s published financial reports and does not constitute investment advice. Investors should conduct their own due diligence, taking into account their risk tolerance and investment objectives.

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