**Summary**
Enwell Energy PLC, an oil and gas exploration and production group, reported its audited results for 2025, highlighting significant operational and financial challenges due to the ongoing war in Ukraine and regulatory actions by Ukrainian authorities. Key points include
**Operational Impact** Aggregate average daily production decreased to 1,865 boepd in 2025 from 2,288 boepd in 2024, primarily due to licence suspensions and the wars disruption. Production volumes for the year were 48,962 boe, down from 722,753 boe in 2024.
**Financial Performance** Revenue plummeted to $3.3 million in 2025 from $44.9 million in 2024, a 92% decline. Gross profit fell to $1.2 million from $28.2 million, and the company reported a net loss of $4.5 million compared to a $23.7 million profit in 2024.
**Regulatory Challenges** Ukrainian authorities suspended the MEX-GOL, SV, and VAS production licences for ten years in November 2024, halting operations. The company is pursuing legal proceedings, including arbitration under the UK-Ukraine bilateral investment treaty, to challenge these suspensions and seek compensation.
**SC Licence Development** Despite challenges, Enwell continued development planning at the SC exploration licence area, including preparations for drilling the SC-5 well and installing new gas processing facilities. Temporary equipment is being installed to enable gas and condensate production from the SC-4 well.
**Financial Position** Cash and cash equivalents stood at $97.1 million as of December 31, 2025, slightly down from $99.4 million in 2024. The company retains a significant portion of its cash outside Ukraine, enhancing its ability to navigate risks.
**Outlook** The wars impact and regulatory uncertainties continue to pose significant challenges. Enwell plans to focus on the SC licence development and legal efforts to restore licences and operations, while tightly managing costs to preserve cash resources.
**Corporate Governance** Changes in the Board included the appointment of Oleksandr Blyzniuk as a Non-Executive Director in January 2025.
Enwells 2025 results reflect the severe impact of geopolitical and regulatory factors on its operations and financial health, with the company navigating a complex environment to protect its assets and pursue growth opportunities where possible.
| Financial Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Revenue ($ million) | 44.9 | 3.3 | -92% |
| Gross Profit ($ million) | 28.2 | 1.2 | -96% |
| Operating (Loss)/Profit ($ million) | 29.1 | (1.5) | -105% |
| Net (Loss)/Profit ($ million) | 23.7 | (4.5) | -119% | tr>
| Cash and Cash Equivalents ($ million) | 99.4 | 97.1 | -2% |
| Debt ($ million) | 0 | 0 | 0% |
Note: The company does not have any debt, so the debt column shows 0% change.
Key Observations:
- Revenue decreased by 92% due to significantly lower production following licence suspensions by Ukrainian Government authorities.
- Gross profit decreased by 96% due to lower production and revenue.
- Operating profit turned into a loss, with a 105% decrease, primarily due to lower production and revenue.
- Net profit turned into a loss, with a 119% decrease, reflecting the overall decline in financial performance.
- Cash and cash equivalents decreased slightly by 2%, but the company remains in a strong financial position with no debt.