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Pharos Energy
(LSE:PHAR)
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Rating:74Outperform
Price Target:
35.00 p
▲(41.13% Upside)
Action:Upgraded
Date:07/28/26
The score is primarily supported by a very strong balance sheet (near-zero/zero debt) and robust recent free cash flow, which help mitigate sector volatility. Technicals are supportive with the stock trading above major moving averages. Offsetting factors are inconsistent profitability and declining revenue in the last two years, and a negative P/E that complicates valuation despite an attractive dividend yield.
Positive Factors
Very low leverage
Near-zero debt and substantial equity give Pharos durable financial flexibility. Low leverage reduces refinancing and interest risks through commodity cycles, supports capital allocation for capex/dividends, and preserves optionality for opportunistic M&A or farm-ins over the next several quarters.
Negative Factors
Declining revenue trend
Two consecutive years of revenue decline signal production, pricing, or offtake challenges that can pressure margins and free cash flow sustainability. If the trend persists, it reduces headroom for reinvestment and makes funding new developments more dependent on commodity recoveries.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
Near-zero debt and substantial equity give Pharos durable financial flexibility. Low leverage reduces refinancing and interest risks through commodity cycles, supports capital allocation for capex/dividends, and preserves optionality for opportunistic M&A or farm-ins over the next several quarters.
Read all positive factors
Pharos Energy (PHAR) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£129.95M
Dividend Yield4.23%
Average Volume (3M)326.55K
Price to Earnings (P/E)―
Beta (1Y)0.28
Revenue Growth-18.06%
EPS Growth-127.50%
CountryUK
Employees32
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.02
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)0.05
Revenue Forecast (FY)£152.60M
Pharos Energy Business Overview & Revenue Model
Company Description
Pharos Energy plc is an upstream energy company primarily focused on the exploration, development, and production of oil and natural gas assets. Its global portfolio includes a 30.5% working interest in the Te Giac Trang Field (Block 16-1) and a 2...
How the Company Makes Money
Pharos Energy primarily makes money through upstream petroleum operations. Its main revenue stream is the sale of produced hydrocarbons—principally crude oil (and, where applicable, natural gas/condensate)—from fields in which it has working inter...
Pharos Energy Earnings Call Summary
Earnings Call Date:Sep 24, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Sep 23, 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 Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | £129.95M | -26.22 | -2.30% | 4.21% | -18.06% | -127.50% | |
70 Outperform | £258.78M | 18.61 | 5.30% | ― | -11.74% | ― | |
69 Neutral | £99.71M | 3.04 | 11.43% | ― | ― | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
52 Neutral | £231.50M | 51.51 | -2.23% | ― | -47.84% | -277.39% | |
50 Neutral | £139.04M | -0.51 | -2.51% | ― | -10.76% | 88.89% | |
44 Neutral | £226.08M | -183.37 | -6.64% | ― | -4.86% | 95.89% |
* Energy Sector Average
GB:PHAR
Pharos Energy
33.50
13.63
68.60%
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62.70
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2.79%
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374.00
160.00
74.77%
GB:SAVE
Savannah Petroleum
5.51
-1.69
-23.47%
GB:TLW
Tullow Oil
13.96
3.97
39.74%
GB:KIST
Kistos PLC
260.00
99.00
61.49%
Pharos Energy Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresM&A TransactionsShareholder Meetings
Pharos Energy lifts cash, trims receivables as Vietnam and Egypt drilling ramps up
Positive
Jul 16, 2026
Pharos Energy reported first-half group production of 5,650 boepd, broadly in line with guidance, supported by a successful six-well drilling campaign in Vietnam and the restart of drilling in Egypt under improved fiscal terms. The company generat...
Executive/Board Changes
Pharos Energy Grants New Share Awards to Top Executives
Positive
Jun 26, 2026
Pharos Energy has awarded nil-cost options to its chief executive Katherine Roe and chief financial officer Sue Rivett under its Deferred Share Bonus Plan, linked to their 2025 performance-related bonuses, with the awards scheduled to vest over tw...
Business Operations and StrategyFinancial Disclosures
Pharos Energy Clears Egyptian Receivables and Restarts Drilling Campaign
Positive
Jun 8, 2026
Pharos Energy has cleared all outstanding receivables from its Egyptian operations, receiving $12.6 million year-to-date in 2026 on top of a $20 million payment at the end of 2025, bringing its receivables position fully current for the first time...
Regulatory Filings and Compliance
Pharos Energy CEO and CFO Increase Personal Stakes with Share Purchases
Positive
May 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. The trades, executed at £0.275 per share under ...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Pharos Energy Wins Overwhelming Shareholder Backing at AGM
Positive
May 21, 2026
Pharos Energy reported that all resolutions at its latest Annual General Meeting were passed with more than 98% support, reflecting strong shareholder backing for the board and its strategy. Around 70% of the company’s 416.3 million voting s...
Business Operations and StrategyFinancial Disclosures
Pharos Energy lifts output and cash flow as Vietnam and Egypt drilling drives growth
Positive
May 12, 2026
Pharos Energy reported that group working interest production for the first four months of 2026 averaged 5,561 boepd, broadly in line with guidance, supported by a major six-well offshore drilling campaign in Vietnam and the start of a six-well on...
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.