How Horizon Oil’s FY25 Results Set the Stage for Long-Term Growth
Horizon Oil Limited reported robust FY25 financial and operational results at the RIU Good Oil & Gas Conference, highlighting sustained dividends and a clear growth strategy across its Asia-Pacific portfolio.
- FY25 EBITDAX of US$54.8 million and operating cash flow of US$35.9 million
- Declared total FY25 dividends of 3 Australian cents per share, marking five consecutive years of distributions
- Production exceeded 1.6 million barrels of oil equivalent, supported by recent acquisitions in Thailand
- Ten-year permit extension granted for the Maari oil field, underpinning long-term production
- Ongoing growth initiatives include drilling programs, infrastructure upgrades, and cost control measures
Strong Financial Performance Anchors Horizon's FY25
At the RIU Good Oil & Gas Energy Conference held in Perth on 10 September 2025, Horizon Oil Limited presented a comprehensive update on its FY25 results and strategic outlook. The company reported an EBITDAX of US$54.8 million and operating cash flow of US$35.9 million, reflecting solid operational execution and disciplined cost management. With net cash of US$13.7 million at year-end, Horizon demonstrated a healthy balance sheet position.
Production for the year surpassed 1.6 million barrels of oil equivalent (boe), bolstered by the recent acquisition of gas assets in Thailand, which added approximately 2,100 boe per day to the portfolio. Operating costs remained tightly controlled at under US$25 per barrel of oil equivalent, underscoring the company's focus on efficiency.
Sustained Shareholder Returns Amid Growth Investments
Horizon declared a total FY25 dividend of 3 Australian cents per share, split evenly between interim and final payments. This marks the fifth consecutive year of distributions totaling 15.5 Australian cents per share, a testament to the company’s commitment to returning value to shareholders while continuing to invest in production growth.
Since 2021, Horizon has returned over AUD 250 million to shareholders, balancing capital discipline with growth initiatives. The company’s strategy emphasizes maximising free cash flow and maintaining regular distributions as a core priority.
Operational Highlights and Growth Pipeline
Key operational achievements include successful drilling and workover programs across Horizon’s core assets. The Maari oil project in New Zealand received a ten-year permit extension through to 2037, securing its production base well into the future. In China’s Block 22/12, a five-well infill drilling program was completed ahead of schedule and under budget, with plans underway for liquid handling capacity upgrades.
In Australia’s Northern Territory, the Mereenie oil and gas field saw the completion of a two-well development program, with further drilling planned for 2026 supported by strong government backing. Meanwhile, in Thailand, the Sinphuhorm and Nam Phong gas projects continue to deliver low-cost, reliable production with long-term gas sales agreements in place through 2031. Booster compressor installations and infill well tie-ins are scheduled to enhance output.
Outlook, Stable Production and Strategic Expansion
Horizon forecasts stable production through 2030 and beyond, supported by a material base of 2P reserves estimated at around 12.5 million barrels of oil equivalent. The company’s portfolio is well diversified across oil and gas assets in New Zealand, China, Australia, and Thailand, with a focus on low-cost, long-life reserves and secure market offtake.
Looking ahead, Horizon plans to advance multiple growth projects including drilling and infrastructure upgrades across its asset base. These initiatives aim to sustain production momentum, optimise operational efficiency, and unlock further value for shareholders.
Bottom Line?
Horizon Oil’s disciplined approach to growth and shareholder returns positions it well for stable production and value creation in the years ahead.
Questions in the middle?
- How will joint venture and regulatory approvals impact Horizon’s planned drilling and infrastructure projects?
- What are the risks to production forecasts given potential operational or market uncertainties?
- Could Horizon pursue further acquisitions to accelerate growth beyond its current portfolio?
