Star Energy Group plc announced its interim results for the first half of 2025. The company reported an adjusted EBITDA of £5.5 million for its oil and gas segment and a loss of £1.0 million for its geothermal segment. Operating cash flow before working capital stood at £4.8 million, an increase from £4.4 million in the first half of 2024, despite experiencing lower commodity prices. The company completed a land sale at Holybourne, generating £6.3 million. General and administrative expenses were reduced from £4.1 million in the first half of 2024 to £2.5 million in the same period of 2025. Facility A of €6.7 million was repaid on June 30, 2025, in accordance with the Debt Facility Agreement. Oil and gas production was reported at 1,894 barrels of oil equivalent per day (boe/d), with full-year guidance maintained at approximately 2,000 boe/d. The company noted an increase in operating expenses to $43.6 per boe, up from $42.0 per boe in 2024, primarily due to increased workover activity, although savings were made in other areas to offset inflation. Star Energy Group highlighted its focus on cash generation, disciplined investment, and business simplification as key strategies. The company aims to maintain production stability at around 2,000 boe/d, contingent on profitability. It also emphasized its strategy to hold exploration acreage in the East Midlands and leverage a tax shield of approximately £250 million to potentially enhance post-tax returns. The company is addressing policy deficiencies related to the UK's fiscal and regulatory environment, which it claims are affecting investment in its core and geothermal businesses. Star Energy Group is engaged in discussions with the UK government regarding renewable heat and hopes for improvements in tax and oil and gas licensing policies. Looking forward, Star Energy Group plc plans to continue its low-risk investments in its core business to sustain and enhance production, while also pursuing geothermal projects in the UK and Croatia. The company remains committed to building shareholder value through operational cash flows and a strategic approach to capital allocation.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Star Energy Group plc published the original content used to generate this news brief on September 22, 2025, and is solely responsible for the information contained therein.
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