Pharos Energy (PHAR) AI Stock Analysis

• Market Cap: £86.63M
• Dividend Yield: 6.46%
• Average Volume (3M): 326.55K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.63
• 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: £55.00
• Price Target Upside: 172.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 5.05
• Revenue Forecast (FY): £8.86B

• Rating: 66 Neutral
• Price Target: 22.50p ▲(11.39% 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

Net cash / Debt-free balance sheet

A net cash position and no debt provide durable financial flexibility, lowering refinancing and interest risks. This supports funding the 6‑well Vietnam program from operations, sustains the dividend policy, and preserves capacity to weather commodity cycles over the medium term.

Improved fiscal terms and license extensions

Extended licenses and better fiscal terms increase operational runway and lift recoverable reserves (guidance notes a 25% uplift in 2P reserves). This reduces regulatory and contract risk, enhances project economics, and bolsters long‑term production visibility.

Improving margins and cash generation

Sustained margin improvements and favorable operating cash conversion indicate stronger cost control and operational efficiency. These fundamentals underpin resilience to price swings, support reinvestment for organic growth, and help maintain shareholder distributions over time.

Negative Factors

Declining revenue trend

A persistent revenue decline reduces scale economics and limits free cash flow over the medium term. If production or sales volumes do not rebound, lower topline constrains reinvestment capacity, raises per‑unit costs, and pressures sustainable dividend and growth plans.

High receivables and Egyptian operational issues

Elevated receivables create working capital strain and collection risk, delaying cash inflows needed for operations and distributions. Coupled with production shortfalls in Egypt, this weakens near‑term cash predictability and increases reliance on timing or partner payments for funding.

Risky, capital‑intensive Vietnam drilling campaign

A large, complex drilling program concentrates capital in high‑risk exploration/appraisal wells. Negative outcomes or cost overruns could materially reduce cash buffers and delay returns. Success is binary and depends on execution and possible farm‑in partner availability, raising project risk.

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: Positive
• Last Price: 20.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 20.2 is below the 20-day moving average (MA) of 20.33, above the 50-day MA of 20.04, and above the 200-day MA of 20.02, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 57.68 is Neutral, neither overbought nor oversold. The STOCH value of 62.50 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAVE	69 Neutral	£148.26M	1.15	34.81%	―	7.74%	―
PHAR	66 Neutral	£86.63M	21.21	1.91%	6.46%	-9.43%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
GENL	55 Neutral	£176.21M	-4.02	-11.54%	―	-0.20%	-25.68%
TLW	53 Neutral	£110.63M	-0.68	―	―	-32.47%	-1490.91%
CNE	52 Neutral	£157.88M	-9.63	-6.29%	―	-32.66%	72.67%
KIST	44 Neutral	£181.47M	-4.82	-92.03%	―	-16.87%	21.18%

Pharos Energy Corporate Events

Pharos Energy Cuts Egyptian Receivables After $20m EGPC Payment

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 receivables position, combined with recently enhanced fiscal terms on its consolidated concession agreement, strengthens the investment case for its Egyptian portfolio and supports the planned drilling campaign with partner IPR to lift production, in alignment with Egypt’s national production targets and long‑term value creation for stakeholders.

The most recent analyst rating on (GB:PHAR) stock is a Hold with a £21.00 price target. To see the full list of analyst forecasts on Pharos Energy stock, see the GB:PHAR Stock Forecast page.

Pharos Energy CEO and CFO Boost Stakes in the Company

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 trading plans. Following the transactions, Roe holds 106,318 shares and Rivett 1,829,053 shares, representing 0.026% and 0.439% of the company’s issued share capital respectively, reinforcing senior management’s financial commitment to the business and providing a modest signal of confidence to investors in the group’s strategy and outlook.

The most recent analyst rating on (GB:PHAR) stock is a Hold with a £21.00 price target. To see the full list of analyst forecasts on Pharos Energy stock, see the GB:PHAR Stock Forecast page.

Pharos Energy Advances Drilling Operations in Vietnam and Egypt

Pharos Energy plc has been actively advancing its operations in Vietnam and Egypt, with a significant six-well drilling program underway in Vietnam, marking the most substantial investment in these assets since their development. The initial performance of the first well on the TGT Field has exceeded expectations, contributing positively to the company’s production rates. In Egypt, Pharos has secured a consolidated Concession Agreement with improved fiscal terms, setting the stage for further drilling activities. The company remains in a strong financial position, maintaining a debt-free status and a stable cash balance, which supports ongoing capital investments and sustainable shareholder returns.

The most recent analyst rating on (GB:PHAR) stock is a Hold with a £21.00 price target. To see the full list of analyst forecasts on Pharos Energy stock, see the GB:PHAR Stock Forecast page.

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.

The most recent analyst rating on (GB:PHAR) stock is a Hold with a £22.00 price target. To see the full list of analyst forecasts on Pharos Energy stock, see the GB:PHAR Stock Forecast page.

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.

The most recent analyst rating on (GB:PHAR) stock is a Hold with a £23.00 price target. To see the full list of analyst forecasts on Pharos Energy stock, see the GB:PHAR Stock Forecast page.

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.

The most recent analyst rating on (GB:PHAR) stock is a Hold with a £22.50 price target. To see the full list of analyst forecasts on Pharos Energy stock, see the GB:PHAR Stock Forecast page.