Executive Summary
PetroGas Company (PTCO) reported QQ2 2026 results that reflect a challenging profitability and liquidity position. The quarter shows operating losses and a pronounced interest burden, with negative net income of -18,230 USD thousand and an EBITDA of -5,650 USD thousand on unspecified revenue. G&A and operating expenses totaled 5,650 USD thousand, while interest expense stood at 12,580 USD thousand, driving pre-interest operating losses and a negative bottom line. Cash flow from operations was negative (-2,150 USD thousand) and free cash flow was also negative (-2,150 USD thousand), signaling ongoing cash burn in the current quarter.
From a YoY/QoQ perspective, the company reports an improving operating income trajectory on a YoY basis (+23.13%), but a sizable QoQ deterioration (-36.11%). Net income shows a modest YoY uptick (+7.89%) yet a QoQ decline (-9.86%), while earnings per share (EPS) improves YoY (+11.11%) but declines QoQ (-14.29%). Revenue data is not disclosed in the provided figures, limiting top-line analysis. The balance sheet presents a concerning picture: liabilities of 825,074 USD thousand offset by equity of -825,074 USD thousand, with retained earnings deeply negative (-142,318,019 USD thousand). This combination indicates a substantial cumulative deficit and weak capitalization, raising questions about liquidity and capital sufficiency absent external funding.
Overall, the QQ2 2026 results imply a high-risk, capital-intense operation with limited transparency on revenue, compelling the company to pursue financing or asset monetization to extend runway. Investors should monitor production progress, oil/gas price sensitivity, cost control, and potential capital-raising activities, as well as any strategic pivots from Rise Fast Limited, the parent entity.
Key Performance Indicators
QoQ: -36.11% | YoY:23.13%
QoQ: -14.29% | YoY:11.11%
Key Insights
Revenue: Not disclosed in the provided data; no top-line figure available for QQ2 2026. This prevents a complete assessment of sales growth or volume-driven performance.
Operating income: -5,650 USD thousand for QQ2 2026; YoY growth +23.13%, QoQ change -36.11% (per the earnings metrics).
Net income: -18,230 USD thousand for QQ2 2026; YoY growth +7.89%, QoQ change -9.86%.
EPS: -0.0008 USD per share for QQ2 2026; YoY change +11.11%, QoQ change -14.29%.
EBITDA: -5,650 USD thousand; reflects lim...
Financial Highlights
Revenue: Not disclosed in the provided data; no top-line figure available for QQ2 2026. This prevents a complete assessment of sales growth or volume-driven performance.
Operating income: -5,650 USD thousand for QQ2 2026; YoY growth +23.13%, QoQ change -36.11% (per the earnings metrics).
Net income: -18,230 USD thousand for QQ2 2026; YoY growth +7.89%, QoQ change -9.86%.
EPS: -0.0008 USD per share for QQ2 2026; YoY change +11.11%, QoQ change -14.29%.
EBITDA: -5,650 USD thousand; reflects limited operating leverage and fixed cost absorption in a likely low-/no-revenue period.
Interest expense: 12,580 USD thousand, contributing meaningfully to pre-tax losses.
Cash flow from operations: -2,150 USD thousand; Free cash flow: -2,150 USD thousand, indicating negative cash generation.
Balance sheet signals: Total liabilities 825,074 USD thousand; Total stockholders’ equity -825,074 USD thousand; Retained earnings -142,318,019 USD thousand. The negative equity position and large accumulated deficit imply fragile capitalization and elevated funding risk.
Liquidity indicators: Current liquidity details (current/quick cash ratios) are not disclosed, limiting precise assessment of near-term liquidity margins. Cash at period end is not reported.
Valuation/peer context: The provided peer data for select oil and gas companies shows generally positive profitability metrics (e.g., NOG net income margin 0.172; OXY net income margin 0.0682; APA net income margin 0.277; CTRA 0.295), highlighting PetroGas’s current negative earnings as a notable underperformance relative to peers. However, PTCO’s obscure top-line and ambiguous balance sheet require cautious interpretation until revenue/assets are clarified.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Operating Income |
-5.65K |
23.13% |
-36.11% |
| Net Income |
-18.23K |
7.89% |
-9.86% |
| EPS |
0.00 |
11.11% |
-14.29% |
Management Commentary
Transcript highlights could not be synthesized because no earnings call transcript content was provided in the data. Management commentary and quotes from the QQ2 2026 call are not available in the supplied material. If you share the transcript, I can extract themes (strategy, operations, market conditions) and provide categorized quotes with context and significance.
Transcript not provided.
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Transcript not provided.
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Forward Guidance
No formal forward guidance is present in the provided dataset for QQ2 2026. Given the negative cash flow and uncertain revenue visibility, the company’s near-term trajectory hinges on external financing, capital restructuring, or a meaningful uptick in production. In a qualitative scenario, investors should monitor:
- Production progression and well performance at Burns and Rogers leases (oil/gas volumes, production costs per barrel/mcf).
- Oil and gas price trajectories and hedging strategy that could unlock revenue upside or mitigate margin pressure.
- Capital structure actions (debt facilities, equity offerings, asset monetization) and their impact on liquidity and equity base.
- Operating cost control and any capex program alignment with cash burn reduction.
- Working capital dynamics and any changes in receivables/payables profile.
Overall, the missing revenue signal together with the fragile balance sheet suggests cautious near-term outlook unless there is material strategic financing or operational upside.