INEOS E&P A/S — Financial report

CVR 73349613

Latest financial period

2025 • 2025-01-01 • 2025-12-31 • entity • DKK • 1066252000 • 1905352000 • 1650179000 • 9624930000 • 16920632000 • 11286845000 • 288

Financial history

2024 • 2024-01-01 • 2024-12-31 • entity • DKK • 1272104000 • 844898000 • -922863000 • -716125000 • 7491129000 • 1661915000 • 285
2023 • 2023-01-01 • 2023-12-31 • entity • DKK • 842656000 • 297801000 • -66759000 • -812258000 • 7609170000 • 2185620000 • 265
2022 • 2022-01-01 • 2022-12-31 • entity • DKK • 1152393000 • 563554000 • 533291000 • 2435118000 • 11046177000 • 5997879000 • 245
2021 • 2021-01-01 • 2021-12-31 • entity • DKK • 860072000 • 354249000 • 588758000 • 1668390000 • 9970192000 • 3562760000 • 183
2020 • 2020-01-01 • 2020-12-31 • entity • DKK • 534874000 • 389578000 • 398782000 • -252139000 • 8281805000 • 1876106000 • 195
2019 • 2019-01-01 • 2019-12-31 • entity • DKK • 1182106000 • 852706000 • 114176000 • 351979000 • 8914234000 • 2134442000 • 210
2018 • 2018-01-01 • 2018-12-31 • entity • DKK • 1210788000 • 562728000 • -175535000 • 1390822000 • 8448752000 • 1786404000 • 306
2017 • 2017-01-01 • 2017-12-31 • entity • DKK • 1251888000 • 453809000 • -1233257000 • -747792000 • 8004678000 • 364261000
2016 • 2016-01-01 • 2016-12-31 • entity • DKK • 1332000000 • 679000000 • 157000000 • 15021000000 • 3835000000 • 512
2015 • 2015-01-01 • 2015-12-31 • entity • DKK • 1113000000 • -16015000000 • 14733000000 • -13018000000 • 595

Annual report highlights

primary activities • Main activityThe company’s objects are to engage in activities in the energy sector and ancillary activities, including sub-soil CO2 storage activities. • entity
management review • INEOS E&P, CVR no. 73349613100%100%100%100% INEOS E&P 100% INEOS E&P (Petroleum INEOS E&P (Siri) INEOS Energy INEOS Energy (Norge) Denmark) ApSUK Ltd., (Lulita) DK A/S, (Syd Arne) ApSPetroleum DK ASCompany no. CVR no. CVR no. CVR no. Reg. no. 979 932 026500 06671453133162711773589118545100%Siri, branch of INEOS E&P (Siri) UK Ltd., CVR no. 20771593Financial HighlightsKey figuresIncome statement (DKKm)20252024202320222021Revenue 1.066 1.272 843 1.152 860EBITDA 303 563 148 316 175Profit/(loss) before financial income and expenses 5.172 -923 -157 726 589Net financial items 3.522 -449 -918 2.100 668profit/(loss) for the year9.625-716-9642.6281.668Balance Sheet (DKKm)Total assets 16.921 7.491 7.694 11.046 9.970Investment in property, plant and equipment 300 511 428 12 0Equity11.2871.6622.3786.3423.563Financial ratiosEBIT margin 485,05% -72,55% -18,65% 63,02% 64,45%Return on assets 30,57% -12,32% -2,04% 6,57% 5,91%EBITDA margin 28,45% 44,29% 17,54% 27,43% 20,32%None-financial dataAverage number of employees (FTE's) 288 285 265 245 183OSHA Recordable injury rate for Siri Area(per 200,000 hours)* 0,00 0,18 0,50 0,98 0,00Discharging of oil into the sea, tonnes* 0,79 3,29 2,43 2,87 0,99Rejection of produced water, %* 93,1% 86,9% 86,2% 87,0% 99,0%Gas flaring from platforms (flaring), million Nm3*1,172,902,932,081,78The financial ratios are calculated in accordance with the Danish Finance Society's recommendations and gui-delines. For definitions, see the summary of significant accounting policies.* With effect from April 1, 2022, INEOS E&P A/S took over as the operator of the Syd Arne licence. Therefore, 2022 - 2025 numbers include both Syd Arne and Siri Area. Financial reviewThe Company's income statement for the year ending 31 December shows a profit of DKK 9,625 million, and the balance sheet end 31 December 2025 shows equity of DKK 11,287 million.Revenue totaled DKK 1,066 million, which is DKK 206 million lower than in 2024. The decrease is primarily due to lower prices. EBITDA decreased by DKK 260 million to DKK 303 million in 2025. The decrease was mainly due to lower commodity prices partially offset by higher production and higher net other operating cost.EBIT increased by DKK 2,573 million to DKK 1,650 million. The increase is mainly due reversal of impairments mainly on Syd Arne and Hejre.Profit before tax increased by DKK 6,544 million to DKK 5,172 million. The increase is mainly the due to the circumstances descripted above, higher income from subsidiaries mainly due to adjustment of deferred tax asset, partly offset by higher net financial expenses.Profit for the year increased by DKK 10,341 million to DKK 9,625 million. The increase is mainly due a adjust-ment of the deferred tax asset of DKK 4,460 million and the comments above.Financial performance for 2025 exceeded expectations. For 2025 we expected a resultat before tax and income from subsidaries of DKK -400 to DKK -500 million. Result before tax and income from subsidaries is DKK 1,577 million and is due to a reversal of impairment related to Syd Arne and Hejre of DKK 1,951 million.For 2025 we expected an increase in production of 5-15% but we realised a decrease of 1%. Main related to lower production and Syd Arne and a shut-down on Siri for almost all of 2025.Production, operations and development updateOperational performance continued to be strong in the year with reliability of 95.8% (2024: 93.9%) on our exis-ting operated fields. Sales averaged 6.7 kboe of oil and gas per day (2025: 6.7 kboe per day) with approxima-tely 24% from the operated field Syd Arne (2024: 31%), 8% from the operated fields Siri, Nini and Cecilie (2024: 22%), 68% from the operated field Solsort (2024: 47%) and nil% from the non-operated Lulita field due to pro-duction being completely shut-in (2024: 0%). Siri AreaThe Siri Area comprises the Siri field, where the processing platform and associated wells are located along with satellite tie-back fields Stine, Nini, Nini East and Cecilie. Oil is exported by tanker while gas and produced water reinjected into the Siri field. The Siri licence, comprising of Siri and Stine is 100% owned and operated by INEOS E&P A/S whereas the Nini (Nini and Nini East) and Cecilie licences are joint ventures between the INEOS E&P A/S (Operator, 57.1% and 56.4% respectively) and Harbour Energy International GmbH. Produc-tion from Siri commenced in 1999 with the satellite developments following in the next decade.The first eight months of 2025 saw no production from the area due to the rotor on Siri undergoing repair with copper windings being replaced. The breakdown of the rotor was reported to the insurance company in 2025 as a loss of production claim. In February 2026 the claim was approved by the insurance company and we have a settlement of DKK 162 million.Production, operations and development update (continued)The refurbished rotor arrived at Siri in July 2025, but following commissioning and restart on the 23 of July, cracks were observed in the coupling. A new coupling was installed, and production start-up was achieved on the 16 of September. During the remainder of 2025 production from the Siri has been very stable, with some flush volumes realized.Syd Arne FieldThe Syd Arne field is a joint venture between the INEOS E&P A/S (perator, 36.8%), INEOS Energy (Syd Arne) ApS (61.5%) and Danoil (1.7%). Production from the field commenced in 1999.Uptime of the facilities was very high throughout the entire year and in August, a planned turnaround was exe-cuted successfully and on schedule. The SAE-01 producer well shut in mid-2024 due to integrity issues be-came operational again in March 2025. A conversion of the SA-02 producer well-to-water injection was per-formed in the first half of 2025 with the well operational from June. The SA-03 producer well was shut in mid-year due to integrity issues and is excepted to become operational in the first half of 2026.Maturation of a Syd Arne infill well in the Ekofisk West Flank area was completed in Q2 2025 and it was de-cided not to proceed with the well for near term execution due to prioritisation of other investment activities.Lulita FieldThe Lulita field is a joint venture between TotalEnergies (Operator, 21.6%), INEOS E&P A/S (21.8%), INEOS Energy (Lulita) ApS (18.2%), BlueNord (28.4%), Nordsøfonden (10%). Production comprises of a single well drilled from the Harald platform. The well fluids are processed on Harald and oil and gas is exported separately to the Tyra complex for onwards distribution. Production is currently shut in and, according to TotalEnergies, expected to restart in July 2026 following completion of the Tyra Redevelopment Project which is a prerequisite for Lulita production to resume and ongoing work to handle production challenges in the Tyra processing train. Lulita licence extension to 2035 was approved in March 2026.Hejre FieldThe Hejre area comprises of licences 5/98 (INEOS E&P A/S (60%), INEOS E&P (Petroleum Denmark) ApS (15%) and INEOS E&P (Norge) Petroleum DK AS (25%)) and 1/06 between INEOS E&P A/S (48%), INEOS E&P (Petroleum Denmark) ApS (12%) and INEOS E&P (Norge) Petroleum DK AS (20%) and Nordsøfonden (20%). The Hejre oil discovery development project in licence 5/98 was progressed further in 2025 with the FEED pro-cess completed in H1, 2025. In November 2025, the Danish Energy Board of Appeal annulled the regulatory approval April 2024 of the revis-ed Hejre field development plan (FDP) and remitted the case for reconsideration. The Board found that the Hejre environmental impact assessment (EIA) should have addressed the project’s indirect effect on the cli-mate resulting from the combustion of hydrocarbons extracted. While INEOS disagrees with the Board’s decisions view that the assessment of indirect climate effects in anEIA requires a scope 3 assessment, an EIA addendum (Addendum) has been prepared to adapt to the Board’s decision solely to expedite re-approval of the FDP. INEOS, in consultation with the Danish Energy Agency, has been asked to conduct the assessment in alignment with the UK Department for Energy Security & Net Zero guidance for assessing the effects of downstream scope 3 emissions on climate from offshore oil and gas pro-jects. The methodology and terminology applied in the Addendum are without prejudice to the approaches ap-Hejre Field (continued)plied to any other project when assessing their “indirect effects” in an EIA.INEOS has received the FDP re-approval in Q2 2026, which enabling FID in the project durring Q3 2026, and first oil by end 2028.The exploration potential in licence 5/98 and neighbouring licence 1/06 is, moreover, being matured. The key exploration prospect is the Finke prospect straddling both licence 5/98 and 1/06. INEOS is together with Nord-søfonden, as co-owner of licence 1/06, working towards a drill or drop decision in 2026. Solsort FieldThe Solsort licence is a joint venture between INEOS E&P A/S (35.1396%), INEOS E&P (Petroleum Denmark) ApS (27.66%), INEOS Energy (Syd Arne) ApS (4.7982%), Nordsøfonden (18.44%) and Danoil (13.9622%).The Solsort West Lobe development project was approved by INEOS and the Solsort Partnership in September 2022. The project was completed in September 2024, comprising one oil producer and one water injector well from the Syd Arne North Satellite platform and first oil was achieved in March 2024. Early life production per-formance exceeded expectations but water breakthrough in the producer well in August 2025 was earlier than anticipated. The partnership is separately investigating potential concepts for developing the Solsort East lobe, which is a separate oil accumulation located immediately East of the Solsort West Lobe.CCS projectsIrisThe Iris licence was awarded in February 2023 to a joint venture between the INEOS (Operator, 40%), Winter-shall Dea International GmbH (now a subsidiary of Harbour Energy) (40%) and Nordsøfonden (state-participa-tion, 20%). The licence was awarded as a CO2 Exploration Licence, whereby the joint arrangement has a right and duty to explore areas within the licence scope for potential and suitable sites for permanent CO2 storage. The licence area includes the areas of the Siri, Stine, Nini, Nini East and Cecilie fields. A first site was been identified during 2023, and an application for being granted a permanent Storage licence was filed with the Danish authorities in February 2024. The subsequent award of a licence to permanently store CO2 was award-ed in December 2025. It is the Group’s intention to pursue further sites for permanent storage of CO2 within the Exploration licence in the coming years.Greensand ProjectGreensand Future – Project involves the transport and storage of biogenic CO2 from biomethane facilities. Off-shore transport will be carried out using a newly built bulk carrier Carbon Destroyer 1 (CD1), retrofitted for CO2 transport with offshore sea-state capabilities and a capacity of up to 5,500 metric tons of liquid CO2 per load. Storage will take place in the Nini West reservoir via direct ship injection into existing wells, with a target of storing 400,000 tons of CO2 annually. Project is progressing well, with intermediate storage facility at the Port of Esbjerg and CD1 on track for commencing commercial operations for CO2 storage in mid-2026.Greensand Full Scale – This project involves expanding CO2 storage capacity by incorporating additional reser-voirs within the Nini complex, with the goal of scaling up to 1.5 million tons per year, subject to permitting and contracted volumes. The expansion will require additional offloading points, injection wells, and chartering fur-ther CO2 carriers equipped with injection, heating, and offshore sea-state capabilities. An application for per-manent storage permit for Greensand Full Scale was submitted to the authorities in February 2026.Esbjerg Harbor Terminal HubAs part of the Greensand Future project, the terminal will include a truck receiving facility and intermediate CO2 storage to support the project's operations. In December 2024, INEOS, as the IRIS operator, secured an agree-ment to lease the facility from the Port of Esbjerg. Additionally, INEOS has been selected as the contractor responsible for establishing the terminal facilities. The project is on track to be operational in mid-2026.GreenstoreThe Greenstore CO2 exploration licence was awarded in June 2025 to a partner group (equity): Wintershall Dea International GmbH as operator (today a subsidiary of Harbour Energy) (40%), INEOS E&P A/S (40%) and Nordsøfonden (state participation with 20%). The 3-year licence work programme includes acquisition of 3D seismic covering the contemplated geological storage structure in 2025 and drilling of 3 consecutive appraisal wells in 2026. The licence has now been extended to 4½ years and the well programme split into one well in 2026 and two wells in 2027. The seismic acquisition operation started late in 2025 and was completed in Q1, 2026. The first well is planned to start in July 2026 and finalized following extensive data acquisitions operations in Q4, 2026. Greenport Scandinavia (GPS) CO2 Import and Export Harbor Terminal Hub ProjectFollowing finalization of the 2025 work scope, the GPS project has entered a detailed hub ecosystem feasibi-lity analysis while awaiting further maturation of the Danish CO2 storage sites. INEOS Energy’s role as project lead has been put on hold with no financial involvement while a new Partner group supported by newly awarded Danish funding matures the aforementioned work scope. Based on the results and other maturation activities, the Partner group is looking to a potential investment de-cision in 2028 following successful permitting including a storage site development plan approval by the Danish Energy authorities.Market developmentDaily Brent Crude and US dollarThe average price of daily brent crude in 2025 was approximately 69.1 USD/BBL, which is a 11.9 USD/BBL decrease compared to 2024. Brent crude increased for the first 3 weeks of 2025 and topped mid-Jan with a price of 83.1 USD/BBL. Subsequently prices decreased through out 2025 only following by smaller spikes in March, June, July and September. Daily brent crude ended at 62.6 USD/BBL at year-end 2025.The USD exchange rate started 2025 at 7.14 DKK/USD but decreased during the year and closed at 6.37 DKK/USD.ProductionOil and gas production for INEOS E&P A/S totaled 2.43 million boe, down 1% from 2024. Decrease in produc-tion is mainly due to first full year with production from Solsort offset of natural decline in reservoir from Syd Arne and shut down on Siri in most of 2025.InvestmentsInvestments held by INEOS E&P A/S consist of CAPEX spend related to Hejre and Iris (Greensand project). CAPEX in 2025 amounted to DKK 300 million, as compared to DKK 511 million in 2024. Future outlookThe Company continues to monitor the ongoing Russian military hostilities in Ukraine and the hostilities in the Middle East that may disrupt or curtail its operations or development activities. The Company is actively moni-toring any factors and events that could adversely affect the Company and mitigating measures are implement-ed where appropriate.The Company is reviewing its strategy but will continue to pursue growth opportunities through further develop-ments in Denmark.The Company looks forward to the coming years with optimism in developing near term resources in a safe, reliable and profitable manner.Based on the uncertainties related to oil prices, the Company expect a loss before tax and income from sub-sidaries between DKK 400 million and DKK 500 million. Further, we expect a decrease in production by 40-50%,mainly due to reduced production from Solsort offset by the received insurance settlement related to Siri of DKK 162 million.SubsidariesThe subsidaries in Denmark, UK, and Norway have contributed a profit of DKK 3,952 million in 2025. The profit is mainly related to an adjustment of deferred tax in the subsidaries except for INEOS E&P (Siri) UK Limited. Further, a reversal of impairment of 650 million has been recognised in INEOS Energy (Syd Arne) ApS. At the end of 2025, INEOS E&P A/S (including subsidiaries) held 12 licences in Denmark.On 18 of June INEOS E&P A/S has on a board meeting decided to establish a branch in Italy to support on theHejre project in the construction phase of the platform.Special risksManagement of the business and the execution of the Company's strategy are subject to a number of risks. The key business risks affecting the Company are considered to relate to the safe and reliable operation of fields, specifically those for which the Company is operator, management of the impact of oil and gas price vola-tility on the revenues and cash flows as well as the ability to find and exploit gas deposits in the DK sector of the North Sea. The Company deploys highly skilled and experienced resources to identify, evaluate and financially assess development opportunities, applies the best safety and environmental practices in the production of pro-ven oil and gas reserves and adopts robust financial management which, together with appropriate monitoring of business performance seeks to mitigate such risks.Financial riskThe Company's operations are exposed to a variety of financial risks that include effects of the commodity price risk, credit risk, liquidity and cash flow risk, currency risk and interest rate risk. The Company has in place a risk management programme that seeks to limit any adverse effects on the financial performance of the Com-pany where appropriate.The main financial risk which could affect the company are set out below:a) Commodity price risk: Oil and gas is traded commodities with open market prices. The Company is exposed to fluctuations in market prices to the extent that it has not entered into fixed price agree-ments. The directors regularly review cost-benefit of entering into price hedges to minimise risk. The company has no price hedging in place.Financial risk (continued)b) Interest rate risk: The company has a mix of financing facilities including deposits to subsidiaries and shareholder deposit and loan facility. Deposits to subsidiaries and shareholders bears interest at variable rates based on SOFR and; the shareholder loan bear interest at variable rates based on CIBOR. The directors review the interest rate and assess the cost-benefit of interest rate hedging. The company has no interest rate hedging in place.c) Currency risk: The Company undertakes transactions in various currencies, and the Company ma-nages this risk by matching receipts and payments in the same currency (where possible) and mo-nitoring the movements in exchange rates. The Company also has shareholder and subsidiary loan and deposits facility in USD, GBP, NOK and DKK. Although the significant majority of transactions are denominated in USD and DKK (the Company's functional currency). The directors continue to review the cost-benefit of currency hedging. The company has no currency hedging in place.d) Credit risk: The Company has in place policies and procedures to mitigate the risk that customers default on amounts owed to the Company. Exposure to credit risk is further minimised by the na-ture of the customers with which the Company deals.e)Liquidity and cash flow risk: The Company's operating assets generate sufficient positive cash flows to cover the Company's costs and development activities and service the Company's own obliga-tions. The Company has access to liquidity, through participation in external financing and support from shareholders to manage such risks.Recognition and measurement uncertaintiesThe recognition of Deferred Tax, Fixed Assets (impairments) and decommissioning liabilities are all subject to a high degree of uncertainty due to the level and nature of assumptions made when estimating the outcome of subsequent events. The assumptions which would change future m… • entity
unusual matters • The Company's financial position at 31 December 2025 and the results of its operations for the financial yearended 31 December 2025 are not affected by any unusual matters.Statutory report on corporate governanceBusiness modelThe Company's main activity is exploration and production of oil and gas in the Danish part of the North Sea.Oil and gas are sold to primarily oil refineries in Europe.A part of our strategy is to transform the business into a leading North Sea oil and gas company in terms of returns and cash generation. Furthermore, we continue to assess other opportunities for value creation, with investments focused on field extensions or build-out near existing producing assets as well as already initiated developments. • entity
subsequent events • 24Subsequent eventsAfter the balance sheet date INEOS E&P A/S have received a insurance claim of DKK 162 million related to loss of production on Siri due to a default turbine. • entity
contingent liabilities • 25Contingent assets, liabilities and other financial obligationsContingent liabilitiesAccording to legislation, INEOS E&P A/S is liable to pay compensation for any environmental accidents or other types of damage caused by it's oil and gas activities, even when there is no proof of negligence (strict liability). We have taken out insurance to cover any such claims.INEOS E&P A/S is taxed jointly with all Danish subsidiaries. As management company, the company has unlimi-ted and joint and several liability together with the other jointly taxed companies for Danish income taxes and withholding taxes on dividends, interest and royalties within the jointly taxed companies.Other liabilitiesINEOS E&P A/S has entered into operational lease agreements which is has been classified as low-value leases and short term leases and is therefore out of scope in according to IFRS 16. 2025 2024DKK'000 DKK'000Commitment to short term leases as at 31 December 64.453 55.546 Commitment to low value leases as at 31 December 131 114 Total commitment64.58455.660INEOS E&P A/S has entered into agreement on investments in property, plant adn equipment for DKK 6 mil-lion (2024: 22 million).GuaranteesINEOS Holdings AG has furnished the Danish Ministry for Economic Affairs and the Interior with guarantees for fulfilment of obligations and liability in damages towards the Danish State or third parties incurred by INEOS E&P A/S in connection with the company’s participation in exploration and production licences, irrespective of whether the obligations and liability rest on INEOS E&P A/S alone or jointly and severally with others. The gua-rantees are not capped, but cannot exceed a sum corresponding to twice INEOS E&P A/S’s share of each obli-gation or liability. • entity