INEOS Energy (Syd Arne) ApS — Financial report

CVR 73589118

Latest financial period

2025 • 2025-01-01 • 2025-12-31 • entity • DKK • 445956000 • 697069000 • 719466000 • 2475220000 • 5707802000 • 3333220000 • 0

Financial history

2024 • 2024-01-01 • 2024-12-31 • entity • DKK • 779836000 • -296468000 • -290198000 • -23987000 • 3543447000 • 858000000 • 0
2023 • 2023-01-01 • 2023-12-31 • entity • DKK • 806116000 • -850429000 • -848043000 • -557837000 • 3203627000 • 838966000 • 0
2022 • 2022-01-01 • 2022-12-31 • entity • DKK • 1104530000 • 1398956000 • 1397834000 • 1044290000 • 4711611000 • 2396804000 • 0
2021 • 2021-01-01 • 2021-12-31 • entity • USD • 109272000 • 42054000 • 44840000 • 67785000 • 544412000 • 206137000 • 47
2020 • 2020-01-01 • 2020-12-31 • entity • USD • 88283000 • -266903000 • -271703000 • -280367000 • 344894000 • 99184000 • 95
2019 • 2019-01-01 • 2019-12-31 • entity • USD • 138108000 • -85912000 • -91006000 • -91592000 • 622705000 • 379551000 • 99
2018 • 2018-01-01 • 2018-12-31 • entity • USD • 163767000 • -45409000 • -50049000 • -45766000 • 845369000 • 471143000 • 104
2017 • 2017-01-01 • 2017-12-31 • entity • USD • 191014000 • -160169000 • -163106000 • -135430000 • 891009000 • 516909000 • 106

Annual report highlights

management review • Financial HighlightsKey figuresIncome statement20252024202320222021DKK'000 DKK'000 DKK'000 DKK'000 DKK'000Revenue 445.956 779.836 806.116 1.104.530 687.514Operating profit/loss 696.713 -296.811 -886.351 1.388.955 250.778Net financials -134.519 33.211 -63.866 14.804 -64.878Net profit/loss for the year2.475.220-23.987-591.9501.044.290426.487Balance Sheet (DKKm)Total assets 5.707.802 3.543.447 3.203.627 4.711.612 3.571.998Investment in property, plant and equipment 13.647 67.797 67.797 1.574 1.574Equity3.333.220858.000881.9872.473.9391.352.514Financial ratiosReturn on assets 12,21% -8,38% -27,67% 29,48% 7,02%Solvency ratio 58,40% 24,21% 27,53% 52,51% 37,86%Return on equity 118,11% -2,76% -35,28% 54,58% 31,53%None-financial dataAverage number of employees (FTE's) 0 0 0 0 47The 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.Management's CommentaryMain activityThe objectives for which the Company is established are investigating and recovering hydrocarbons, and to store, process, transport and trade in hydrocarbons and other relevant energy forms as well as other related products and services.The Company has an interest of 61.51572% in the 7/89 South Arne license. The production consists primarily of oil. Further, the Company has an interest of 4.7892% in the Solsort Unit license.The Company is a 100% owned subsidiary of INEOS E&P A/S.Financial reviewThe Company's income statement for the year ending 31 December shows a profit of DKK 2,475 million in-cluding a reversal of impairment of DKK 650 million (we refer to note 1), recognising of deferred tax asset of DKK 1,890 million, and the balance sheet at 31 December 2025 shows equity of DKK 3,333 million.Revenue totaled DKK 446 million, which is DKK 334 million lower than in 2024. The decrease is primarily due to lower oil price and lower production of 23% from Syd Arne in the year compared to 2024. The total produc-tion from Syd Arne and Solsort was 16% lower than 2024.Gross profit increased by DKK 994 million to DKK 697 million in 2025. The increase was mainly due the com-ments above and a reversal of impairment in 2025 of DKK 650 million compared to a impairment charge of DKK 674 million in 2024.Profit before financial income and expenses increased by DKK 1,010 million to DKK 719 million. The increase is mainly due to the comments above and a loss of production compensation of DKK 20 million from Solsort to Syd Arne covering Syd Arne production shut down during the drilling of the Solsort wells.Profit before tax increase by DKK 842 million to DKK 585 million. The increase is mainly due to the comments above and higher exchange losses compared to 2024.Profit for the year increased by DKK 2,499 million to DKK 2,475 million. The increase is mainly due to the comments above and an adjustment of the the deferred tax asset of DKK 1,890 million.Financial performance for 2025 was as expected beside the reversal of impairment of DKK 650 million related to Syd Arne Area due to changed in reserve estimate and forward prices.Production, operations and development updateOperational performance remained relatively strong in the year with reliability of 96.1% (2024: 99%) on our existing operated fields. Sales averaged 3.3 kboe of oil and gas per day (2024: 3.9 kboe per day).Syd ArneThe Syd Arne field is a joint venture between the INEOS E&P A/S (Operator, 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 for the entire year and in August, a planned turnaround was executed successfully and on schedule. The SAE-01 producer well shut in mid-2024 due to integrity issues became operational again in March 2025. A conversion of the SA-02 producer well-to-water injection was performed 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 planned to become operational in August 2026.SolsortMaturation of a Syd Arne infill well in the Ekofisk West Flank area was completed in Q2 2025 and it was de-cided to postpone execution due to prioritising of other investment activities.The Solsort license 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.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 implemen-ted 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, re-liable and profitable manner. Based on the uncertainties related to oil prices, the Company expect a result before tax between DKK -50 mil-lion and DKK 50 million. Production for 2026 is expected to decrease with 5-10% due to natural decline.Special risks - operating risks and financial risksMarket risksAs the company produces and sells crude oil it is exposed to fluctuating oil prices. Foreign exchange risks The operating costs of the company are primarily in DKK and are therefore exposed to currency exchange rate fluctuations.Environment and safetyINEOS Energy (Syd Arne) ApS aims to be compliant at all times with all Danish EHS Regulations, Corporate EHS Standards and Industry Guidelines and Recommended Practices. The company equally strives to ensure its operations and activities are carried out in a safe and responsible manner with no harm to people or damage to the environment. The company’s Occupational Health and Safety Management System is ISO 45001 cer-tified and the Environmental Management system is ISO14001 certified.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 measurement includes: - General price development or development in market prices - Expected useful life of production assets - Weighted average cost of capital (WACC) and risk free rate - Exchange rates, etc. - Development of existing technologiesThe recognition and measurement of items in the financial statements is not subject to any other significant uncertainty. • entity
recognition measurement uncertainty • 1Uncertainty relating to recognition and measurementAsset impairment testAt year-end 2025 INEOS Energy (Syd Arne) ApS has performed an annual asset impairment test and va-rious sensitivity analysis. Net assets related to the oil and gas activities are tested for impairment if there is any indication of impairment. For assets with a limited lifetime such as oil and gas fields, cash flows are calculated based on forecasts for the entire lifetime of the asset. The determination of the recoverable amount for assets is based on a number of assumptions where estimates are made that are material to the determination. Key assumptions are disclosed by Group (INEOS UK E&P Holdings Limited) in note 10 of the financial statements for INEOS UK E&P Holdings Limited. Based on these assumption and estimate we have recognised a reversal of impairment of DKK 650 million for tangible assets cf. note 13.Decommissioning obligationThe decommissioning obligation is recognised as the present value of the estimated expected obligation re-garding to dismantling of the platforms and at the end of the license period in 2032 and 2047.Management have based the estimate on input from specialist, available market data and industry/historical knowledge including anticipated cost savings resulting from anticipated advances in technology in the fu-ture.The measurement of the asset retirement obligation is subject to uncertainty due to a number of assump-tions, including the scope of work required, timing, regulations, costs, and effect of cost savings resulting from anticipated advances in technology.Management believes the assumptions applied are reasonable and realistic. • 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. • entity
subsequent events • No events have occurred after the balance sheet date which could significantly affect the company's financial position. Report on payments to authoritiesPursuant to section 99c of the Danish Financial Statements Act, INEOS E&P A/S is obliged to account for pay-ment authorities. In 2025 INEOS Energy (Syd Arne) ApS haven't made any payments. • entity
subsequent events • 21Subsequent eventsNo events have occurred after the balance sheet date which could significantly affect the Company's finan-cial position. • entity
contingent liabilities • 22Contingent assets, liabilities and other financial obligationsContingent assetsAccording to legislation, INEOS Energy (Syd Arne) ApS are liable to pay compensation for any environ-mental accidents or other types of damage caused by our 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 Energy (Syd Arne) ApS is taxed jointly with all Danish subsidiaries. As management company, the company has unlimited 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.INEOS Holdings AG has furnished the Danish Ministry for Energy, Utilities and Climate with a guarantee for fulfilment of obligations and liabilities towards the Danish State and third parties incurred by INEOS En-ergy (Syd Arne) ApS in connection with the company’s participation in the Syd Arne exploration and pro-duction licence, irrespective of whether the obligations and liabilities rest on INEOS Energy (Syd Arne) ApS alone or jointly and severally with others. The guarantees are not capped, but cannot exceed a sum cor-responding to twice INEOS Energy (Syd Arne) ApS’s share of each obligation or liability. • entity