Sound Energy PLC (AIM: SOU) reported a sharply reduced annual loss in its audited 2025 results as the company moved closer to first LNG production from its Moroccan micro-LNG development.
The company posted a pre-tax loss of £22.3 million for the year ended December 31, 2025, significantly improved from the £150.8 million loss reported in the previous year.
The improvement was largely driven by a substantial reduction in impairment charges, which fell to £12.5 million from £122.0 million in 2024.
Sound Energy said its Phase 1 Micro LNG project in Morocco is nearing completion, with first LNG sales expected during the third quarter of 2026.
The development is supported by a US$25 million debt facility provided by a local Moroccan bank, with Sound Energy’s attributable share amounting to approximately US$5 million.
Alongside its core gas activities, the company continued expanding its energy transition strategy through the creation of HyMaroc Ltd focused on natural hydrogen exploration, and Tayra Energy dedicated to renewable energy production.
During the year, Sound Energy invested £3.6 million into exploration and development activities.
However, the company’s financial position remains tight, with cash and short-term deposits standing at just £0.8 million at the end of December 2025.
Directors acknowledged that additional funding will likely be required over the next 12 months and noted that this creates a material uncertainty regarding the group’s ability to continue as a going concern.
Management said securing further financing and progressing the Moroccan LNG project into commercial production remain key priorities for 2026.
