FINANCIAL REVIEW LOSS FOR THE YEAR AND ADJUSTED EBITDA The Group recorded a loss after tax of US$152.70 million in the financial year ended 31 December 2025 (“FY2025”), from a loss after tax of US$50.20 million in the corresponding financial year ended 31 December 2024 (“FY2024”). Adjusted EBITDA (earnings before interest, taxes, depletion, depreciation, amortisation, impairments) was a positive US$91.14 million in FY2025, as compared to a positive US$160.43 million in FY2024. REVENUE AND COST OF SALES Revenue from sale of crude oil and gas increased to US$318.80 million in FY2025, from US$298.14 million in FY2024, from the sale of crude oil from the Yumna Field (after the Oman government’s share of oil), and the oil fields in Norway and Germany. The increase in revenue from the sale of crude oil and gas was due to an increase in the volume of oil lifted and sold in Norway and Germany, partially offset by a decrease in average crude oil sale prices and a decrease in the volume of oil lifted and sold in Oman. Revenue from the sale of goods and services of US$0.93 million in FY2025 (FY2024: US$0.75 million) was attributable to the sale of commercial drones. Production and operating expenses increased to US$175.42 million in FY2025 (FY2024: US$95.31 million), mainly due to increased production activities in Norway and an increase in operational costs and a one-off tanker replacement cost in Oman. Depletion of oil and gas properties (“O&G”) increased to US$107.28 million in FY2025 (FY2024: US$97.93 million), due to an increase in the volume of production in Norway and Germany, higher depletion rate for certain end-ofproduction phase wells in Norway, net against a decrease in volume of production in Oman in FY2025. Exploration and evaluation (“E&E”) expenditure decreased to US$3.58 million in FY2025 (FY2024: US$5.43 million), primarily due to a decrease in exploration expenditures in Norway and Oman in FY2025. In FY2024, the E&E expenditure is related to the purchase of seismic data for exploration activities in Norway. ADMINISTRATIVE EXPENSES Administrative expenses remained fairly consistent at US$43.21 million and US$41.76 million in FY2025 and FY2024 respectively. OTHER EXPENSES/ OTHER INCOME Other expenses increased to US$108.66 million in FY2025 (FY2024: US$50.24 million) mainly due to 1) an increase in impairment loss on O&G properties to US$88.68 million (FY2024: US$41.42 million), following an annual impairment assessment performed over the Group’s O&G properties, 2) an increase in impairment loss on E&E assets to US$10.89 million in FY2025 (FY2024: US$0.38 million) due to the relinquishment of licences (PL1190 and PL1093) in Norway as a result of limited further prospectivity and the drilling of a dry well, and 3) recognition of onerous contract expense of US$8.66 million (FY2024: US$Nil) in relation to a rig contract for the Yme Field. The increase in other expenses in FY2025 was result of the absence of impairment of goodwill in FY2025 (FY2024: US$7.76 million for the Yme Field). Other income of US$0.93 million recorded in FY2025 was mainly due to insurance settlement of US$0.53 million, unrealised fair value gain of quoted investments of US$0.21 million, and gain on disposal of quoted investments of US$0.11 million, as a result of better performance in the bond markets in Europe in FY2025. Comparatively, other income of US$5.66 million recorded in FY2024 was mainly due to a gain of US$2.13 million on the acquisition of a 15 per cent interest in the Yme Field, a gain of US$1.14 million on the disposal of a jointly controlled entity, and other income of US$1.33 million from the settlement of an insurance claim on a damaged flowline in Oman. NET FINANCE COSTS Finance income of US$9.85 million was recorded in FY2025 (FY2024: US$10.75 million), mainly attributable to i) interest income from quoted investments and bank deposits, and ii) interest accretion of decommissioning receivables. Finance expense of US$32.83 million was recorded in FY2025 (FY2024: US$29.79 million), mainly attributable to i) interest expense from senior secured bonds issued by subsidiaries, and ii) the unwinding of discount on decommissioning provision. Rex International Holding Limited 51
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