Gulf Keystone Petroleum Ltd. reported a 26% rise in adjusted EBITDA to $52 million in the first half of 2026, driven by higher realized prices and reduced operating costs despite significant production disruptions.
The London-listed oil producer recorded operating costs of $20 million in H1 2026, a 25% decline from the same period a year earlier. General and administrative expenses fell 6% to $4.3 million, including one-off costs related to its dual listing in Oslo. Free cash outflow was limited to $2 million, while net capital expenditure totaled $18 million, nearly half of which was incurred before the February 28 production shutdown.
Production averaged 14,600 barrels of oil per day in H1 2026, down from 44,100 bopd in the first half of 2025, as two precautionary shut-ins were implemented due to regional security concerns linked to the U.S.-Iran conflict. The first shutdown lasted from February 28 to June 23, followed by a second from July 19 to August 16. Following the June restart, production exceeded 45,000 bopd within three weeks, while the August restart saw volumes approach 40,000 bopd, with a target to return to prior levels of 44,000 to 45,000 bopd.
Gulf Keystone received approximately $80 million in top-up receivables in H1 2026, reflecting the difference between cash received at around $30 per barrel and international prices in entitlement invoices. Operating expenses per barrel were about $4.4 prior to the February shutdown, while the Shaikan crude discount to Brent narrowed to roughly $9 per barrel in the first half of the year, compared with $23 to $27 prior to an interim export agreement.
The company declared a $12.5 million semi-annual dividend in April and an interim dividend of $10 million for September, yielding 6.92% based on the current share price. Shares rose 9.6% to $201 following the results, leaving the stock 14.9% below its 52-week high of $234.5 and 24.7% above its 52-week low of $161.2.
Management highlighted progress on its draft field development plan, targeting more than a doubling of Jurassic production to about 85,000 bopd, testing the Triassic reservoir at up to 10,000 bopd, and eliminating routine gas flaring. Drilling is expected to begin in the second half of 2027. A water handling project, slated for full start-up in the first quarter of 2027, is anticipated to add 4,000 to 8,000 bopd of incremental gross production and expand total field capacity to about 77,000 bopd.
