RH Petrogas has reported a net profit of US$9.76 million for the six months ended Jun 30, 2026, a 31 per cent year-on-year (YoY) increase that the upstream player said was powered by higher realised crude prices despite marginally lower production.

The group’s revenue rose 9.8 per cent YoY to US$43.13 million, lifting basic and diluted earnings per share to 0.94 US cent from 0.71 US cent a year earlier. No interim dividend was declared; the board said it would review distributions when full-year results are finalised.

Performance was driven by its sole oil-and-gas segment, where pretax earnings increased 30.1 per cent to US$17.33 million. Average realised oil price advanced to about US$86 a barrel from US$70 a year ago, more than offsetting a 2.1 per cent dip in gross production to 6,473 barrels of oil equivalent per day. Cost of sales slipped 2.7 per cent on lower repair and maintenance spending and fewer well workovers, expanding gross profit by 32 per cent to US$18.65 million.

Other income declined 45.5 per cent to US$0.98 million, reflecting the absence of a US$0.98 million reversal of legal compensation booked in the prior period. Finance costs eased 27 per cent to US$0.30 million, helped by lower decommissioning-related interest. Income-tax expense rose to US$7.57 million, mirroring stronger operating performance.

Operating cash flow improved to US$19.05 million from US$11.98 million on firmer earnings and lower working-capital outflows. The company ended June with US$74.42 million in cash and bank balances, up from US$65.44 million at end-2025, after funding US$8.22 million of investment spending—largely on exploration drilling in the Northwest Klagagi-1 well and development of existing fields—and US$5.11 million of financing outflows, including lease payments and dividends to non-controlling interests.

Looking ahead, management highlighted ongoing drilling of the Northwest Klagagi-1 exploration well in the Kepala Burung PSC, where testing is under way after encountering hydrocarbon shows. A 3D seismic campaign is also planned for the block in the second half. In the Salawati PSC, the Birawa-1 exploration well has been deferred to 2027 pending permit approvals and the completion of an in-house rig upgrade; regulators have provisionally agreed to extend the work-commitment deadline.

The group noted that Middle-East tensions have pushed Brent crude futures to average US$92 a barrel in 1H 2026 and that market volatility remains high. No quantitative financial targets were provided, but RH Petrogas signalled continued focus on exploration, seismic acquisition and cost control to sustain production and cash generation over the next 12 months.