Gulf Keystone Petroleum reported adjusted EBITDA of $52 million for the first half of 2026, a 26% increase from $41 million in the same period last year, despite a prolonged halt in production at its Shaikan field in Iraq’s Kurdistan region.
The London-listed oil producer attributed the earnings growth to aggressive cost reductions implemented following the February 28 to June 23 shutdown, which followed a second production stoppage from July 19 to August 16. Gross production averaged 14,600 barrels per day during H1 2026, down from 44,100 bopd in H1 2025, reflecting the impact of the disruptions.
Revenue remained essentially flat at $82.8 million compared with $83.1 million a year earlier, though the realized price per barrel improved to $83.50 from $27.80, driven by higher Brent crude benchmarks and adjusted pricing terms under interim agreements. Brent averaged $92 per barrel in H1 2026, with a discount of $9 per barrel applied to Gulf Keystone’s sales.
Operating costs fell 25% to $20.2 million, while general and administrative expenses declined 6% to $4.3 million. Net capital expenditure totaled $18 million, with roughly half incurred before the February shutdown. The company limited free cash outflow to $2 million during the period and maintained a cash balance of $61 million at June 30, 2026, compared with $78 million at year-end 2025.
Gulf Keystone paid a $12.5 million dividend in April and declared an additional $10 million payout for September 28, bringing total shareholder returns in 2026 to $22.5 million. The company’s shares rose 9.6% to $200 following the presentation, giving it a market capitalization of $544 million and an enterprise value of $480 million as of August 24.
Chief Executive Jon Harris highlighted the company’s safety record, noting zero lost-time incidents over more than three and a half years despite operational challenges. He added that cost discipline enabled the company to preserve liquidity and return capital to shareholders.
Looking ahead, Gulf Keystone expects to restart drilling in 2027 and commence the PF-2 water handling project in Q1 2027, which is projected to add 4,000 to 8,000 bopd of incremental production. The company estimates a 27-year reserves life based on 2025 production levels.
