Zephyr Energy turns profit in first half, revenue lifted by rising oil price

Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF, FRA:VD5N) showed it had swung into profit in the first half of 2026 as its non-operated US oil and gas portfolio delivered higher production and revenue, while work continued towards first commercial production from its flagship Paradox project in Utah. Net profit was US$1.9 million, reversing a US$13.0 million loss a year earlier, as revenue climbed to US$10.8 million from US$6.3 million. Sales volumes increased nearly 44% to 178,233 barrels of oil equivalent, while gross profit before depreciation, depletion and amortisation doubled to US$6.6 million. At Paradox, Zephyr said regulatory and engineering work is progressing on the infrastructure needed to export gas. The company has approved engineering and well work aimed at lifting initial processing capacity to as much as 15 million cubic feet per day, three times its earlier base-case estimate. It is also negotiating with Atlas Oil Company over a deal that could provide up to US$15 million in non-dilutive pre-production funding. The company ended June with US$2.0 million of cash and US$22.7 million of gross borrowings. Management expects further updates during the second half across Paradox regulatory approvals, financing and the farm-out process, with first commercial production remaining the key operational objective.