Pharos Energy (PHAR) AI Stock Analysis

• Market Cap: £82.30M
• Dividend Yield: 6.25%
• Average Volume (3M): 326.55K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.57
• Revenue Growth: -9.43%
• EPS Growth: N/A
• Country: UK
• Employees: 36
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): >-0.01
• Shares Outstanding: 416,320,470
• 10 Day Avg. Volume: 283,812
• 30 Day Avg. Volume: 326,547
• PEG Ratio: -0.04
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 1.00
• P/FCF Ratio: 3.56
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 5.05
• Revenue Forecast (FY): £8.86B

• Rating: 66 Neutral
• Price Target: 21.00p ▲(3.96% Upside)

Pharos Energy's overall score reflects a mixed financial performance with significant strategic achievements highlighted in the earnings call. The technical analysis indicates bearish momentum, which is a concern. The valuation is fair, with an attractive dividend yield. Strategic focus on growth and shareholder returns is a positive aspect.

Positive Factors

License Extensions

Securing license extensions in Vietnam enhances operational stability and provides a longer time horizon for resource extraction, supporting long-term revenue generation.

Financial Flexibility

A debt-free status and strong cash position allow Pharos Energy to invest in growth opportunities and weather market fluctuations, ensuring financial resilience.

Investment in Vietnam

The significant investment in Vietnam aims to boost production and value, indicating a commitment to organic growth and long-term asset development.

Negative Factors

Revenue Decline

A decline in revenue can impact profitability and cash flow, challenging the company's ability to fund operations and investments without external financing.

Challenging Egyptian Market

Operational challenges in Egypt, including production issues and high receivables, can strain resources and affect cash flow, posing risks to operational efficiency.

Complex Drilling Operations

Complex and risky drilling operations in Vietnam require expertise and careful execution, potentially leading to cost overruns and operational setbacks.

Pharos Energy Business Overview & Revenue Model

Company Description

Pharos Energy (PHAR) is an independent oil and gas exploration and production company based in the United Kingdom. The company primarily operates in the oil and gas sector, focusing on the development of oil and gas assets in Egypt and Vietnam. Pharos Energy aims to deliver sustainable growth through the development and production of oil and gas resources, leveraging its technical expertise and operational efficiency to maximize value for stakeholders.

How the Company Makes Money

Pharos Energy generates revenue primarily through the exploration, production, and sale of crude oil and natural gas. The company's key revenue streams include the sale of hydrocarbons from its operated assets in Egypt and Vietnam, where it has established production facilities. Additionally, Pharos may engage in joint ventures or partnerships with other companies to share resources and reduce operational costs, which can enhance profitability. The company also benefits from fluctuating oil and gas prices, as higher market prices can significantly increase revenue from its production activities. Operational efficiency, cost management, and strategic asset development are crucial factors contributing to Pharos Energy's earnings.

Pharos Energy Financial Statement Overview

Summary

Pharos Energy shows mixed financial performance with improved operational efficiency and stable leverage. However, revenue declines and historical volatility in profitability and cash flows pose risks.

Income Statement

Pharos Energy has shown significant volatility in its financial performance. The gross profit margin and EBIT margin have improved in recent years, indicating better cost management and operational efficiency. However, revenue has declined in the latest year, and the company has seen negative net profit margins in some periods, highlighting challenges in maintaining stable profitability.

Balance Sheet

The balance sheet of Pharos Energy is relatively stable with a low debt-to-equity ratio, indicating conservative leverage. The equity ratio remains strong, suggesting solid financial backing. However, fluctuations in stockholders' equity and total assets over the years suggest potential stability concerns.

Cash Flow

Cash flow analysis reveals a positive but inconsistent trend in free cash flow, with a notable increase in the latest year. The operating cash flow to net income ratio is favorable, indicating strong cash generation relative to reported earnings. Yet, historical volatility in cash flows may pose risks to liquidity management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	128.40M	126.80M	167.90M	184.40M	134.10M	142.00M
Gross Profit	33.30M	46.20M	56.70M	82.30M	19.50M	18.20M
EBITDA	67.20M	111.30M	36.30M	143.10M	94.60M	-171.10M
Net Income	5.50M	23.60M	-48.80M	24.40M	-4.70M	-215.80M
Balance Sheet
Total Assets	419.70M	427.30M	457.00M	572.90M	589.70M	549.00M
Cash, Cash Equivalents and Short-Term Investments	22.60M	16.50M	32.60M	45.30M	27.10M	24.60M
Total Debt	200.00K	200.00K	41.00M	75.00M	80.50M	54.10M
Total Liabilities	127.90M	136.50M	183.50M	242.30M	285.30M	255.30M
Stockholders Equity	291.80M	290.80M	273.50M	330.60M	304.40M	293.70M
Cash Flow
Free Cash Flow	24.30M	35.60M	21.70M	23.60M	-28.80M	17.40M
Operating Cash Flow	42.20M	54.00M	44.90M	53.40M	10.80M	56.40M
Investing Cash Flow	-27.24M	-17.90M	-6.60M	-14.00M	-39.80M	-41.30M
Financing Cash Flow	-23.23M	-51.60M	-50.10M	-19.80M	31.10M	-48.50M

Pharos Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PHAR, the sentiment is Negative. The current price of 20.2 is above the 20-day moving average (MA) of 19.74, above the 50-day MA of 20.06, and above the 200-day MA of 20.04, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 46.06 is Neutral, neither overbought nor oversold. The STOCH value of 59.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:PHAR.

Pharos Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AET	76 Outperform	£85.94M	3.18	42.05%	―	50.35%	48.07%
ENW	67 Neutral	£48.10M	6.36	5.77%	―	-54.53%	-64.24%
PHAR	66 Neutral	£82.30M	19.55	1.91%	6.25%	-9.43%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SAVE	64 Neutral	£121.55M	1.08	34.81%	―	7.74%	―
JSE	54 Neutral	£125.81M	7.83	56.01%	―	4.56%	―
ZPHR	53 Neutral	£53.57M	-2.08	-50.13%	―	-35.06%	-550.00%

Pharos Energy Corporate Events

Pharos Energy Executives Increase Shareholdings, Signaling Confidence in Future Growth

Pharos Energy announced that its CEO, Katherine Roe, and CFO, Sue Rivett, have purchased additional shares in the company, reflecting their confidence in its future prospects. The share purchases, executed under pre-established trading plans, signify a commitment to the company’s growth strategy and may positively influence stakeholder perception.

Pharos Energy Executives Increase Shareholdings, Signaling Confidence

Pharos Energy announced that its CEO, Katherine Roe, and CFO, Sue Rivett, have purchased additional shares in the company, reflecting their confidence in its future. This move is seen as a positive signal to the market, potentially boosting stakeholder confidence and indicating strong leadership commitment to the company’s growth strategy.

Pharos Energy Launches Six-Well Drilling Programme in Vietnam

Pharos Energy has commenced a six-well drilling programme in Vietnam, targeting production growth from existing fields and de-risking new development opportunities. The programme, fully funded and expected to complete by mid-2026, involves two rigs and aims to enhance production and unlock potential in the TGT and CNV fields.

Pharos Energy Seeks Block Listing for 7.6 Million Shares

Pharos Energy plc has applied for a block listing of 7,600,000 ordinary shares to be admitted to the London Stock Exchange’s Main Market. This move is part of the company’s Long-Term Incentive Plan, with the shares to be issued as awards are exercised. The block listing is expected to become effective on 30 September 2025, potentially enhancing the company’s market presence and providing opportunities for growth.

Pharos Energy Reports Stable Production and Strategic Progress in H1 2025

Pharos Energy reported stable production and strong cash generation for the first half of 2025, with significant operational progress in Vietnam and Egypt. The company plans a six-well drilling campaign in Vietnam to enhance production from 2026 and has secured a two-year extension for its exploration period. In Egypt, Pharos announced a consolidated Concession Agreement, improving the value of its portfolio and fiscal terms. The company’s strong cash flow and debt-free status support a 10% increase in interim dividends, highlighting its commitment to shareholder returns.

Pharos Energy Secures Approval for Consolidated Concession in Egypt

Pharos Energy plc has received approval from the Egyptian General Petroleum Corporation’s Executive Board to consolidate its El Fayum and North Beni Suef Concession Agreements into a new Consolidated Concession. This agreement, which includes three new exploration areas, aims to unlock long-term value through improved fiscal terms and extended license durations. The Consolidated Concession is expected to enhance production growth and increase reserves by 25% from year-end 2024, subject to customary approvals and Egyptian Parliamentary ratification. The company has committed to an 11-well work program and will pay a signature bonus post-ratification.

Pharos Energy to Present Interim Results 2025

Pharos Energy plc announced that CEO Katherine Roe and CFO Sue Rivett will present the company’s Interim Results 2025 via a live presentation on Investor Meet Company. This event, scheduled for 24 September 2025, is open to existing and potential shareholders, offering them an opportunity to engage with the company’s leadership and gain insights into its financial performance and strategic direction.