Prospex swings to £131,941 half-year profit on revaluation gain as producing assets strengthen

Ticker Data API, as at 30 Oct 2026, 15:07
Share price	5.85p
Market cap	£25.4m
52-week range	2.21p – 7.2p
Shares in issue	433.8m
12-month change	+49.4%

Share price, 12 months

Summary

Prospex Energy's interim results today showed a profit of £131,941 for the six months to 30 June 2026, against a loss of £180,101 a year earlier. The profit rests on a £628,789 unrealised revaluation gain; the operating loss widened to £904,777 and the parent company's operating cash outflow was £888,288. Operationally the picture improved: Selva Malvezzi gas sold at €0.46/scm in the half and a record €0.67/scm in August, El Romeral now covers its own costs, and Italy has accepted the Selva four-well environmental assessment for review. Most of this was already public before today, and the shares trade near the top of their 52-week range. The parent still depends on 12% convertible notes and has only a few months of cash cover at its first-half burn rate.

Key figures

Figure	Value	Period	Change
Profit after tax	£131,941	H1 2026	from a loss of £180,101 in H1 2025
Unrealised gain on revaluation of assets	£628,789	H1 2026	H1 2025: loss of £32,715
Operating loss	£904,777	H1 2026	H1 2025: £630,804
Net cash outflow from operating activities	£888,288	H1 2026	H1 2025: £1,321,831
Parent cash and cash equivalents	£524,643	30 June 2026	Year-end 2025: £38,935
Convertible loan notes, face value	£1,888,258	30 June 2026	12% coupon, convertible at 3p
Net asset value (shareholder equity)	£23,303,440	30 June 2026	from £22,939,921 at 31 December 2025
Selva Malvezzi realised gas price	€0.67/scm	August 2026	H1 2026 average €0.46/scm
Tarba gross invoiced sales	€315,272	July and August 2026	H1 2026: €146,333
Share price	5.73p		52-week range 2.21p - 7.20p

Sources: Half Year Report RNS, 28 Sep 2026; Ticker price data

The announcement

Profit after tax was £131,941 (H1 2025: loss of £180,101), but it includes a £628,789 unrealised gain on investments; the operating loss was £904,777 (H1 2025: £630,804), and administrative expenses rose to £881,156, of which £195,686 is described as non-recurring.
Parent cash rose to £524,643 (year-end 2025: £38,935) because £1,373,996 of convertible loan note proceeds exceeded the £888,288 operating cash outflow; investment vehicles held a further £327,368. The notes carry 12% interest, convert at 3p and are repayable in three tranches between December 2027 and June 2028.
Selva Malvezzi produced 5.28 MMscm net to Prospex's 37% interest at an average €0.46/scm, generating €2.41 million net revenue. After the period end, Italy's environment ministry declared the four-well environmental assessment admissible, starting a 60-day public observation period, and a new 12-month Hera gas sales deal begins on 1 October 2026.
El Romeral increased generation from about four to 16 hours a day. Tarba had €146,333 of gross sales in the half and €315,272 in July and August at €160.31/MWh, has needed no operating funding from Prospex since July, and a permanent transformer installed in September cuts costs by about €14,000 a month.
In Poland, internal work puts recoverable potential at the Mniszow oil discovery at about 3.7 million barrels, with an independent review planned for Q4 2026. Net asset value rose to £23,303,440 from £22,939,921.

Against guidance

The report largely confirms news already released: the Q2 update on 3 August, and the 7 September operational update covering record August revenue, Tarba's self-sufficiency, the Selva environmental assessment admissibility and the Hera contract. Against older guidance the record is mixed: the El Romeral replacement transformer, expected during Q3 2025, was installed in September 2026, and 2024 guidance of two further Viura development wells has become planning for a potential single development well in 2027. Directors say the company expects sufficient funds to meet operating and known capital costs; the 2025 auditor's report drew attention to a material going-concern uncertainty.

Bull case

The producing assets are strengthening: Selva is delivering steady output at record prices, and El Romeral has gone from about four to 16 hours of daily generation and stopped drawing on Prospex cash, with a permanent transformer removing a recurring cost of about €14,000 a month.
Several catalysts are lined up: the end of the Selva 60-day public observation period, a resource report after seismic interpretation, a planned 2027 four-well campaign, and a Q4 2026 independent review of the roughly 3.7 million barrel Mniszow oil discovery.
Intra-group balances show Italian cash being recycled round the group, and the in-the-money notes are more likely to convert into shares than to require cash repayment, which eases the 2027-28 repayment burden.

Bear case

Excluding the £628,789 revaluation gain, the half would have been loss-making, and the £544,597 of finance income was interest charged to subsidiaries, with no interest received in cash. At the first-half burn rate, the parent's £524,643 cash covered only a few months.
Net asset value rests largely on fair-valued investments and £11,218,165 owed by group companies rather than liquid assets, and the report does not show how much cash the assets can send up to the parent.
Recent revenue gains lean on high European gas and power prices tied to Middle East supply disruption; a reversal, or delays to Italian permitting, would make a dilutive equity raise more likely, on top of potential conversion of the 3p notes.
The shares have already risen sharply on news that was public before today, so these results offer little that is new.

What to watch

Whether the Selva environmental assessment clears its 60-day public observation period without substantive objection, and how the 2027 four-well programme will be funded.
Evidence that cash is reaching the parent, through repayment of intra-group loans rather than new financing, alongside a lower parent cash burn.
The Q4 2026 independent review of Mniszow and any partner willing to fund its development.
Winter gas and electricity realisations, and whether Tarba stays self-sufficient if prices ease.

This research is produced by Ticker using automated analysis of company announcements, filings and market data. It is for information only, is not personal advice or a recommendation to buy or sell any security, and may contain errors. Past performance is not a reliable indicator of future results. The value of investments can fall as well as rise. Market data from Ticker's Data API as at 30 Oct 2026, 15:07.