Karoon Energy (ASX:KAR) has reported a 2% decline in full-year net profit to US$125.5 million for the period ended Dec. 31, 2025, despite exceeding analyst expectations of US$108.1 million.
The Brazil-focused oil producer attributed the result to a combination of softening global oil prices and a slight dip in sales volumes, specifically noting one fewer cargo sold from its flagship Baúna Project.
While the headline net profit remained relatively resilient, underlying performance showed sharper contractions; underlying earnings before interest and tax fell 21% to US$388.8 million, while profit before one-off items slumped 50% to US$107.5 million.
Revenue for the year also took a hit, dropping 19% to US$628.6 million.
Karoon declared a final fully franked dividend of 3.1 cents per share, a decrease from the 5 cents paid in the previous year, bringing the total 2025 payout to 5.5 cents.
CEO Carri Lockhart, who took the helm late last year, maintained that operational performance remained "solid" despite the commodity price headwinds.
Lockhart identified the first half of 2026 as a "pivotal" period as the company assumes full control of the Baúna production ship and restores output from two key wells.
The operational ramp-up is expected to deliver a "materially better" production profile by mid-year, positioning the $1.2 billion miner for a stronger performance in the coming months.
At the time of reporting, Karoon Energy's share price was $1.59.