• Underlying net profit after tax of US$107.5 million
• Unit production costs fell 3% to US$13.2/boe
• Declared a final dividend of 3.1 Australian cents per share

Karoon Energy Ltd reported its FY25 results, with an underlying net profit after tax of US$107.5 million, while statutory net profit after tax was US$125.5 million. The movements compared to 2024 primarily reflected lower realised oil prices and one less Baúna cargo sold, partly offset by a reduction in operating costs. Unit production costs in 2025 on an NWI basis fell 3% from US$13.6/boe in 2024 to US$13.2/boe, driven by a 7% decrease in Baúna Project unit production costs following the FPSO purchase in April 2025, resulting in no further lease costs. Net debt at the end of 2025 was US$143.9 million, while liquidity was US$546.1 million. Total 2P Reserves increased 7% year-on-year, reflecting a seven-year extension in Baúna field life, while 2C Contingent Resources were 34% higher at 31 December 2025 than at the end of 2024. The Board has declared a final dividend of 3.1 Australian cents per share (fully franked), taking total dividend payments in respect of 2025 to 5.5 Australian cents per share, equivalent to 25% of 2025 underlying NPAT.

Production guidance for 2026 is 8.1 - 9.2 MMboe, with unit production costs of US$12 - 15/boe and total capital expenditure of US$110 - 135 million.

The first half of 2026 will be a pivotal period for the company, with plans to take full operational control of the Baúna FPSO and complete an intensive maintenance and revitalisation campaign on the vessel. The company also expects to restore full production from the SPS-92 and PRA-2 wells at Baúna by mid-year. At Who Dat, the company expects to reinstate production from a shut-in riser in the second half of 2026.