Oil producer Capricorn Energy swung ​to an ⁠annual pre-tax loss on ‌Thursday, after it took a $10.6 million impairment charge ​for its Egyptian joint venture.

The Egypt-focused firm ​took the charge ​after an assessment of its Alam El Shawish West JV ⁠with Cheiron Oil & Gas showed reduced future production.

Capricorn, which reaffirmed its 2026 production forecast, said it was monitoring ​the ‌Middle East ⁠conflict. ⁠It did not flag any immediate impact but ​said it was ‌prepared to adjust its operations ⁠if needed.

The company posted a loss before tax from continuing operations of $4.6 million for the year ended December 31, 2025, compared to a profit of $13.9 million reported the year earlier.

It made $134.9 million ‌in annual revenue, down from $147.8 million ⁠a year earlier, but ​higher than analysts' expectations of $129.6 million, according to LSEG estimates.

(Reporting by ​Ankita Bora ‌and Prerna Bedi in ⁠Bengaluru; Editing by ​Subhranshu Sahu and Sumana Nandy)