Karoon Energy credits 21 per cent production increase for revenue jump in Q2 2025
Australia-based oil and gas exploration and production company Karoon Energy recently published its financial results for the second quarter of 2025, within which it reported increased production and resulting revenue growth.
Q2 2025 production on a net revenue interest (NRI) basis was 2.94 million barrels of oil equivalent (MMboe), 25 per cent higher than in Q1 2025, which was impacted by a planned 20-day Baúna Project maintenance shutdown.
Around 77 per cent of production (2.27 million barrels) was from the Baúna Project and 23 per cent (0.67 MMboe NRI) was from the Who Dat field in the Gulf of Mexico.
Q2 2025 sales volumes of 2.61 MMboe were 21 per cent higher than in Q1 2025, reflecting higher production. This translated to Q2 2025 sales revenue of US$159.7 million, up seven per cent on Q1 2025 as higher production volumes were partly offset by the timing of a shipment in late June, and weaker realised pricing.
The Baúna FPSO acquisition was completed on April 30 and progress made toward transitioning to an optimised operating model, where Karoon will control and operate the vessel, supported by service providers and subject to regulatory approvals.
"Net debt increased from US$159.2 million at March 31, 2025 to US$237.9 million at June 30," said Karoon CEO and Managing Director Dr Julian Fowles. "While operations continued to generate solid cashflows despite reduced commodity pricing, the quarter included a number of significant cash outflows, including the final payment for the Baúna FPSO and the share buyback."
The process of relocating corporate head office roles from Melbourne to Houston and Rio de Janeiro, as announced at the 2025 AGM on May 22, 2025, also commenced during the quarter.
"The transition, aimed at simplifying our structure, increasing efficiency and facilitating collaboration, will take place gradually over the next 12 to 18 months," Dr Fowles continued. "As announced, I will not be relocating to Houston and will be leaving Karoon by mid-2026. The board has commenced a search for a new CEO/MD, and I am committed to ensuring a smooth transition of roles."
