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Star Energy tightens balance sheet and refocuses on UK as profits remain under pressure

Story Highlights
  • Star Energy improved cash generation and reduced net debt in 2025, supported by cost cuts and hedging despite lower revenues.
  • The company is exiting Croatian geothermal assets to refocus on UK operations, boost flexibility and seek value-accretive growth.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Star Energy tightens balance sheet and refocuses on UK as profits remain under pressure

Meet Samuel – Your Personal Investing Prophet

IGas Energy ( (GB:STAR) ) has issued an announcement.

Star Energy reported 2025 revenues of £34.7 million, adjusted EBITDA of £7.7 million and a narrowed post-tax loss of £7.8 million, while cutting net debt to £4.3 million and boosting cash to £7.6 million. Production averaged 1,886 boepd, supported by cost savings, an active hedging programme and more than £2.0 million of G&A reductions that underpinned cash flow despite lower commodity prices.

The group is sharpening its strategic focus on the UK by agreeing to sell its Croatian geothermal licences, which will release restricted cash and remove future funding demands. Management plans to maximise cash flow from its oil and gas portfolio, complete the Singleton gas-to-wire project, maintain a low-cost UK geothermal platform and pursue value-accretive acquisitions that can utilise its substantial tax losses while targeting further cost efficiencies in 2026.

Spark’s Take on STAR Stock

According to Spark, TipRanks’ AI Analyst, STAR is a Neutral.

The overall stock score is primarily influenced by significant financial challenges, including declining revenues and profitability, which weigh heavily on the score. However, positive technical indicators and a strategic corporate event provide some support. The valuation remains a concern due to the negative P/E ratio and lack of dividend yield.

To see Spark’s full report on STAR stock, click here.

More about IGas Energy

Star Energy Group is a UK-focused onshore energy producer operating oil and gas fields and a low-cost geothermal platform. The company emphasises domestic production, disciplined financial management and selective investment, aiming to differentiate itself from small-cap peers through stable output, strong operational control and a focus on cash generation in its home market.

Average Trading Volume: 353,911

Technical Sentiment Signal: Hold

Current Market Cap: £22.29M

See more insights into STAR stock on TipRanks’ Stock Analysis page.

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