Pharos Energy (GB:PHAR)
LSE:PHAR
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Pharos Energy
(LSE:PHAR)
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Rating:73Outperform
Price Target:
30.00 p
▲(48.51% Upside)
Action:UpgradedDate:03/26/26
The score is primarily supported by strong financial quality (low leverage and solid free cash flow) and constructive technical momentum. Earnings-call guidance is broadly positive on funding, reserves economics, and dividends, but is balanced by receivables/production challenges in Egypt and higher-risk drilling execution. Valuation is helped by the dividend yield, though a negative P/E limits confidence in earnings-based valuation.
Positive Factors
Conservative balance sheet
A near-zero debt position and positive net cash provide durable financial flexibility, allowing Pharos to fund capex, sustain dividends, and withstand cyclical commodity shocks without needing external financing. This materially reduces solvency risk over the next 2–6 months and beyond.
Negative Factors
Volatile profitability
Earnings and revenue volatility reflect exposure to commodity cycles, uneven production and one-off items. This undermines predictable cash flow and makes dividend sustainability and capital planning more uncertain, increasing execution pressure during lower price or production periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
A near-zero debt position and positive net cash provide durable financial flexibility, allowing Pharos to fund capex, sustain dividends, and withstand cyclical commodity shocks without needing external financing. This materially reduces solvency risk over the next 2–6 months and beyond.
Read all positive factors
Pharos Energy (PHAR) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£111.80M
Dividend Yield6.46%
Average Volume (3M)326.55K
Price to Earnings (P/E)―
Beta (1Y)0.30
Revenue Growth-9.43%
EPS GrowthN/A
CountryUK
Employees36
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding416,320,470
10 Day Avg. Volume283,812
30 Day Avg. Volume326,547
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)0.41
Price to Sales (P/S)1.00
P/FCF Ratio2.91
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.09
Revenue Forecast (FY)£136.70M
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. Ph...
How the Company Makes Money
Pharos Energy primarily makes money by producing and selling hydrocarbons (crude oil and, where applicable, natural gas) from its operated and non-operated upstream assets. Revenue is generated from the sale of its entitlement share of production,...
Pharos Energy Earnings Call Summary
Earnings Call Date:Sep 24, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Sep 16, 2026
Earnings Call Sentiment Neutral
Pharos Energy demonstrated strong strategic achievements, particularly in securing license extensions and maintaining financial flexibility. However, challenges remain, particularly in Egypt with receivables and production issues, and in the risky nature of upcoming drilling operations. The company is focused on disciplined capital allocation and delivering shareholder returns.Positive Updates
License Extensions in Vietnam and Egypt
Secured license extensions for two producing fields in Vietnam until end of 2027 and successfully agreed new fiscal terms in Egypt, resulting in improved economics and additional time on licenses.
Negative Updates
Decline in Cash Flow from Operations
Cash flow from operations decreased to $16.1 million from the previous year's figure, primarily due to the absence of a one-off $10 million payment from EGPC.
Read all updates
Q2-2025 Updates
Positive
Negative
License Extensions in Vietnam and Egypt
Secured license extensions for two producing fields in Vietnam until end of 2027 and successfully agreed new fiscal terms in Egypt, resulting in improved economics and additional time on licenses.
Read all positive updates
Company Guidance
In the recent investor presentation, Pharos Energy plc provided guidance on several key metrics and strategic initiatives. The company reported stable revenue for the first half of 2025 at over $65 million, despite a $12 reduction in Brent prices, thanks to inventory management. Pharos maintains a net cash position of $22.6 million and generated $16.1 million in cash flow from operations, although this is a decrease from 2024 due to the absence of a one-off payment from EGPC. The company has a 26% hedging position for the second half, providing a floor of $60 per barrel. Pharos is focusing its capital investment on a significant 6-well drilling campaign in Vietnam, which marks its largest investment since the original development. The firm's cash flow allows for a fully funded capital program, emphasizing organic growth through asset reinvestment while maintaining a sustainable dividend. Additionally, Pharos has secured improved fiscal terms in Egypt, resulting in a 25% uplift in 2P reserves, and is actively pursuing a farm-in partner for its high-impact frontier exploration in Vietnam's Blocks 125 and 126. These efforts underscore Pharos's strategic focus on operational and financial flexibility to drive future growth.Pharos Energy Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
86
Very Positive
Cash Flow
79
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 117.00M | 126.80M | 167.90M | 184.40M | 134.10M |
| Gross Profit | 14.70M | 46.20M | 56.70M | 82.30M | 19.50M |
| EBITDA | 55.13M | 111.30M | 36.30M | 143.10M | 94.60M |
| Net Income | ― | 23.60M | -48.80M | 24.40M | -4.70M |
Balance Sheet | |||||
| Total Assets | 403.15M | 427.30M | 457.00M | 572.90M | 589.70M |
| Cash, Cash Equivalents and Short-Term Investments | 40.21M | 16.50M | 32.60M | 45.30M | 27.10M |
| Total Debt | 0.00 | 200.00K | 41.00M | 75.00M | 80.50M |
| Total Liabilities | 119.14M | 136.50M | 183.50M | 242.30M | 285.30M |
| Stockholders Equity | 284.00M | 290.80M | 273.50M | 330.60M | 304.40M |
Cash Flow | |||||
| Free Cash Flow | 40.33M | 35.60M | 21.70M | 23.60M | -28.80M |
| Operating Cash Flow | 56.77M | 54.00M | 44.90M | 53.40M | 10.80M |
| Investing Cash Flow | -25.22M | -17.90M | -6.60M | -14.00M | -39.80M |
| Financing Cash Flow | -7.15M | -51.60M | -50.10M | -19.80M | 31.10M |
Pharos Energy Technical Analysis
Positive
20.20
Price Trends
23.83
Positive
21.94
Positive
21.36
Positive
Market Momentum
1.06
Positive
61.00
Neutral
46.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PHAR, the sentiment is Positive. The current price of 20.2 is below the 20-day moving average (MA) of 26.11, below the 50-day MA of 23.83, and below the 200-day MA of 21.36, indicating a bullish trend. The MACD of 1.06 indicates Positive momentum. The RSI at 61.00 is Neutral, neither overbought nor oversold. The STOCH value of 46.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:PHAR.
Pharos Energy Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £111.80M | -10.05 | 1.89% | 6.46% | -9.43% | ― | |
69 Neutral | £147.34M | 0.45 | 31.64% | ― | 7.74% | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
61 Neutral | £185.12M | -8.32 | 0.66% | ― | -32.66% | 72.67% | |
56 Neutral | £184.38M | -1.99 | 57.02% | ― | -32.47% | -1490.91% | |
44 Neutral | £153.36M | -24.27 | -11.54% | ― | -0.20% | -25.68% | |
44 Neutral | £205.30M | -4.39 | -92.03% | ― | -16.87% | 21.18% |
* Energy Sector Average
GB:PHAR
Pharos Energy
27.50
6.00
27.90%
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Genel Energy
55.00
-16.70
-23.29%
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Capricorn Energy PLC
265.00
12.00
4.74%
GB:SAVE
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7.90
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6.04%
GB:TLW
Tullow Oil
13.00
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-21.88%
GB:KIST
Kistos PLC
255.00
121.00
90.30%
Pharos Energy Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Pharos Energy Boosts Balance Sheet and Drilling Momentum Despite 2025 Loss
Positive
Mar 25, 2026
Pharos Energy reported 2025 working interest production of 5,398 boepd, maintaining guidance with strong safety performance and key operational progress in Vietnam and Egypt. The company advanced a six-well drilling campaign on Vietnam’s TGT...
Business Operations and StrategyFinancial Disclosures
Pharos Energy Schedules Online Investor Briefing on 2025 Results
Positive
Mar 11, 2026
Pharos Energy has announced that CEO Katherine Roe and CFO Sue Rivett will host a live online presentation for investors to discuss the company’s 2025 preliminary results on 25 March 2026 via the Investor Meet Company platform. The event is ...
Business Operations and Strategy
Pharos Energy CEO and CFO Boost Stakes in London-Listed Producer
Positive
Mar 2, 2026
Pharos Energy’s chief executive officer Katherine Roe and chief financial officer Sue Rivett have increased their holdings in the company, buying ordinary shares on the open market at £0.242 each under previously established trading pla...
Business Operations and Strategy
Pharos Energy CEO and CFO Increase Holdings Through Market Share Purchases
Positive
Jan 28, 2026
Pharos Energy has disclosed that its Chief Executive Officer, Katherine Roe, and Chief Financial Officer, Sue Rivett, have purchased additional ordinary shares in the company on the open market under pre-arranged trading plans. Roe acquired 6,764 ...
Business Operations and StrategyDividendsFinancial Disclosures
Pharos Energy Lifts 2026 Production Guidance on Vietnam Drilling Progress and Strong Cash Position
Positive
Jan 22, 2026
Pharos Energy reported 2025 working interest production of 5,398 boepd, broadly split between Vietnam (4,095 boepd) and Egypt (1,303 bopd), delivering estimated revenue of about $115m, maintaining a debt-free balance sheet and closing the year wit...
Business Operations and StrategyFinancial Disclosures
Pharos Energy Cuts Egyptian Receivables After $20m EGPC Payment
Positive
Dec 31, 2025
Pharos Energy has received a $20 million payment from the Egyptian General Petroleum Corporation, significantly reducing its outstanding receivables in Egypt to $7.4 million, the lowest level since 2021. Management highlighted that the improved re...
Other
Pharos Energy CEO and CFO Boost Stakes in the Company
Positive
Dec 31, 2025
Pharos Energy’s chief executive officer, Katherine Roe, and chief financial officer, Sue Rivett, have increased their holdings in the company by purchasing ordinary shares on the open market at £0.195 per share under pre-arranged tradin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.