Interim report
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2 International Petroleum Corporation Interim Condensed Consolidated Financial Statements For the three and six months ended June 30, 2026
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2 Contents Interim Condensed Consolidated Statement of Operations 3 Interim Condensed Consolidated Statement of Comprehensive Income/(Loss) 4 Interim Condensed Consolidated Balance Sheet 5 Interim Condensed Consolidated Statement of Cash Flow 6 Interim Condensed Consolidated Statement of Changes in Equity 7 Notes to the Interim Condensed Consolidated Financial Statements 8 Interim Condensed Consolidated Financial Statements For the three and six months ended June 30, 2026 and 2025, UNAUDITED
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3 Interim Condensed Consolidated Statement of Operations For the three and six months ended June 30, 2026 and 2025, UNAUDITED Three months ended June 30 Six months ended June 30 USD Thousands Note 2026 2025 2026 2025 Revenue 2 185,738 158,892 358,748 337,384 Cost of sales Production costs 3 (118,171) (103,910) (223,172) (207,289) Depletion and decommissioning costs 7 (28,802) (29,321) (58,733) (58,337) Depreciation of other tangible fixed assets 7 – (1,461) – (3,378) Exploration and business development costs (671) (537) (1,574) (568) Gross profit 2 38,094 23,663 75,269 67,812 Other income/(expenses) 2,591 238 6,566 523 General and administrative expenses (4,238) (4,043) (8,503) (8,712) Profit before financial items 36,447 19,858 73,332 59,623 Net financial items 4 (22,385) 159 (43,122) (18,696) Profit before tax 14,062 20,017 30,210 40,927 Income tax expense 5 (4,145) (6,167) (7,531) (10,846) Net result 9,917 13,850 22,679 30,081 Net result attributable to: Shareholders of the Parent Company 9,913 13,848 22,673 30,077 Non-controlling interest 4 2 6 4 9,917 13,850 22,679 30,081 Earnings per share – USD1 13 0.09 0.12 0.20 0.26 Earnings per share fully diluted – USD1 13 0.09 0.12 0.20 0.25 1 Based on net result attributable to shareholders of the Parent Company See accompanying notes to the interim condensed consolidated financial statements
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4 Interim Condensed Consolidated Statement of Comprehensive Income/(Loss) For the three and six months ended June 30, 2026 and 2025, UNAUDITED Three months ended June 30 Six months ended June 30 USD Thousands Note 2026 2025 2026 2025 Net result 9,917 13,850 22,679 30,081 Other comprehensive income/(loss) Items that may be reclassified to profit or loss: Reclassification of hedging (gains)/losses to profit or loss 2 29,567 (4,715) 39,857 3,359 (Loss)/Gain on cash flow hedges 4,741 42,786 (36,390) 37,649 Income tax relating to these items (8,049) (9,068) (787) (9,770) Currency translation adjustments (21,043) 49,095 (38,614) 53,041 Total comprehensive income 15,133 91,948 (13,255) 114,360 Total comprehensive income attributable to: Shareholders of the Parent Company 15,129 91,944 (13,259) 114,351 Non-controlling interest 4 4 4 9 15,133 91,948 (13,255) 114,360 See accompanying notes to the interim condensed consolidated financial statements
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5 Interim Condensed Consolidated Balance Sheet As at June 30, 2026 and December 31, 2025, UNAUDITED USD Thousands Note June 30, 2026 December 31, 2025 ASSETS Non-current assets Exploration and evaluation assets 6 12,974 11,623 Property, Plant and Equipment 7 1,774,863 1,783,498 Right-of-use assets 2,938 3,070 Deferred tax assets 5 1,226 1,635 Derivative instruments 17 1,681 1,285 Other non-current assets 8 45,502 46,216 Total non-current assets 1,839,184 1,847,327 Current assets Inventories 9 34,973 19,990 Trade and other receivables 10 118,906 97,220 Derivative instruments 17 4,639 1,644 Current tax receivables 1,385 4,411 Cash and cash equivalents 11 11,248 7,037 Total current assets 171,151 130,302 TOTAL ASSETS 2,010,335 1,977,629 LIABILITIES Non-current liabilities Financial liabilities 17 70,247 38,709 Bonds 17 443,132 442,324 Lease liabilities 2,798 2,956 Provisions 15 282,749 284,202 Deferred tax liabilities 5 125,317 122,013 Total non-current liabilities 924,243 890,204 Current liabilities Trade and other payables 16 168,392 149,708 Financial liabilities 17 – 1,943 Derivative instruments 17 511 422 Current tax liabilities 530 216 Lease liabilities 960 930 Provisions 15 6,884 7,029 Total current liabilities 177,277 160,248 EQUITY Shareholders’ equity 908,663 927,029 Non-controlling interest 152 148 Net shareholders’ equity 908,815 927,177 TOTAL EQUITY AND LIABILITIES 2,010,335 1,977,629 Approved by the Board of Directors (Signed) C. Ashley Heppenstall (Signed) William Lundin Director Director See accompanying notes to the interim condensed consolidated financial statements
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6 Interim Condensed Consolidated Statement of Cash Flow For the three and six months ended June 30, 2026 and 2025, UNAUDITED Three months ended June 30 Six months ended June 30 USD Thousands Note 2026 2025 2026 2025 Cash flow from operating activities Net result 9,917 13,850 22,679 30,081 Depletion, depreciation and amortization 2, 7 29,167 31,134 59,460 62,378 Gain on sale of asset (2,428) – (6,221) – Income tax 5 4,145 6,167 7,531 10,846 Amortization of capitalized financing fees 4 603 529 1,124 1,048 Foreign currency exchange loss/(gain) 4 7,484 (14,215) 13,752 (14,233) Interest income 4 (221) (694) (346) (2,328) Interest expense 4 10,051 8,980 19,611 17,741 Unwinding of asset retirement obligation discount 4,123 4,115 8,285 8,072 Share-based costs 2,912 2,448 5,612 4,709 Changes in working capital (757) 20,619 (24,764) 18,330 Decommissioning costs paid 15 (576) (2,097) (1,048) (2,418) Other payments 15 (149) (125) (780) (828) Net income taxes (paid)/received 2,886 46 1,642 (2,088) Interests received 197 492 332 2,634 Interests paid (18,508) (55) (19,705) (16,406) Other 383 1,806 589 2,051 Net cash flow from operating activities 49,229 73,000 87,753 119,589 Cash flow used in investing activities Investment in oil gas properties 7 (47,841) (96,344) (116,801) (193,412) Investment in exploration and evaluation assets 6 (157) (1,581) (1,858) (3,399) Disposal of assets 2,428 – 6,221 – Investment in other tangible fixed assets 7 (30) (193) (131) (221) Net cash (outflow) from investing activities (45,600) (98,118) (112,569) (197,032) Cash flow from financing activities Proceeds from borrowings 14 148,584 – 308,165 – Repayments of borrowings 14 (152,228) (497) (276,000) (1,169) Paid financing fees – (686) – (686) Repurchase of own shares (“NCIB”), including taxes 12 – (25,517) (1,956) (78,704) Lease payments (314) (246) (644) (464) Dividend paid – (16) – (16) Net cash (outflow) from financing activities (3,958) (26,962) 29,565 (81,039) Change in cash and cash equivalents (329) (52,080) 4,749 (158,482) Cash and cash equivalents at the beginning of the period 11,817 140,194 7,037 246,593 Currency exchange difference in cash and cash equivalents (240) (9,228) (538) (9,225) Cash and cash equivalents at the end of the period 11,248 78,886 11,248 78,886 See accompanying notes to the interim condensed consolidated financial statements
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7 Interim Condensed Consolidated Statement of Changes in Equity For the three and six months ended June 30, 2026 and 2025, UNAUDITED USD Thousands Share capital and premium Retained earnings CTA IFRS 2 reserve MTM reserve Pension reserve Total Non- controlling interest Total equity Balance at January 1, 2026 40,909 896,692 (30,594) 19,515 1,913 (1,406) 927,029 148 927,177 Net result – 22,673 – – – – 22,673 6 22,679 Cash flow hedges – – – – 2,680 – 2,680 – 2,680 Currency translation difference – – (37,947) (500) (165) – (38,612) (2) (38,614) Total comprehensive income – 22,673 (37,947) (500) 2,515 – (13,259) 4 (13,255) Share based costs – – – 5,612 – – 5,612 – 5,612 Share based payments1 13,555 (13,538) – (10,736) – – (10,719) – (10,719) Balance at June 30, 2026 54,464 905,827 (68,541) 13,891 4,428 (1,406) 908,663 152 908,815 1 The third instalment of IPC RSP 2023 awards, the second instalment of IPC RSP 2024 awards, the first instalment of IPC RSP 2025 awards and the IPC PSP 2023 awards vested on February 1, 2026, at a price of CAD 27.18 per award. The difference between the value at vesting date and at grant (respectively CAD 14.24 per award, CAD 14.82 per award, CAD 14.90 per award and CAD 11.51 per award) was offset against retained earnings. The impact from the issuance of common shares in settlement under IPC’s Share Unit Plan was recorded within share capital and share premium. USD Thousands Share capital and premium Retained earnings CTA IFRS 2 reserve MTM reserve Pension reserve Total Non- controlling interest Total equity Balance at January 1, 2025 141,173 875,952 (81,192) 18,092 (13,138) (1,572) 939,315 155 939,470 Net result – 30,077 – – – – 30,077 4 30,081 Cash flow hedges – – – – 31,238 – 31,238 – 31,238 Currency translation difference – – 52,002 800 234 – 53,036 5 53,041 Total comprehensive income – 30,077 52,002 800 31,472 – 114,351 9 114,360 Repurchase of own shares (NCIB)1 (78,704) – – – – – (78,704) – (78,704) Dividend Distribution – – – – – – – (16) (16) Share based costs – – – 4,709 – – 4,709 – 4,709 Share based payments2 – (8,198) – (9,006) – – (17,204) – (17,204) Balance at June 30, 2025 62,469 897,831 (29,190) 14,595 18,334 (1,572) 962,467 148 962,615 1 See Note 12 2 The third instalment of IPC RSP 2022 awards, the second instalment of IPC RSP 2023 awards, the first instalment of IPC RSP 2024 awards and the IPC PSP 2022 awards vested on February 1, 2025, at a price of CAD 18.89 per award. The difference between the value at vesting date and at grant (respectively CAD 9.09 per award, CAD 14.24 per award, CAD 14.82 per award and CAD 8.40 per award) was offset against retained earnings. See accompanying notes to the interim condensed consolidated financial statements
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8 Notes to the Interim Condensed Consolidated Financial Statements For the three and six months ended June 30, 2026 and 2025, UNAUDITED 1. CORPORATE INFORMATION AND MATERIAL ACCOUNTING POLICIES A. The Group International Petroleum Corporation (“IPC” or the “Corporation” and, together with its subsidiaries, the “Group”) is in the business of exploring for, developing and producing oil and gas. IPC holds a portfolio of oil and gas production assets and development projects in Canada, Malaysia and France with exposure to growth opportunities. The Corporation’s common shares are listed on the Toronto Stock Exchange in Canada and the Nasdaq Stockholm Exchange in Sweden. The Corporation is incorporated and domiciled in British Columbia, Canada under the Business Corporations Act. The address of its registered office is Suite 3500, 1133 Melville Street, Vancouver, BC V6E 4E5, Canada and its business address is Suite 2800, 1055 Dunsmuir Street, Vancouver, BC V7X 1L2, Canada. B. Basis of preparation The unaudited interim condensed consolidated financial statements have been prepared in accordance with IFRS Accounting Standards applicable to the preparation of interim financial statements, under International Accounting Standard 34, Interim Financial Reporting (together “IFRS Accounting Standards“). The unaudited interim condensed consolidated financial statements should be read in conjunction with IPC’s annual audited consolidated financial statements for the year ended December 31, 2025, which have been prepared in accordance with IFRS Accounting Standards as issued by the IASB. These unaudited interim condensed consolidated financial statements are presented in United States Dollars (USD), which is the Group’s presentation and functional currency. The unaudited interim condensed consolidated financial statements have been prepared on a historical cost basis, except for items that are required to be accounted for at fair value as detailed in the Group’s accounting policies. Intercompany transactions and balances have been eliminated. The unaudited interim condensed consolidated financial statements have been approved by the Board of Directors of IPC and authorized for issuance on August 4, 2026. The unaudited interim condensed consolidated financial statements have been prepared following the same accounting policies and methods of application as those in the Group’s audited annual consolidated financial statements for the year ended December 31, 2025. C. Change in presentation During the current period, IPC revised the presentation on the face of the Interim Condensed Consolidated Statement of Operations by presenting finance income and finance expenses on a consolidated basis within ‘Net financial items’. In addition, certain comparative figures have been reclassified to conform with the financial statements presentation in the current year. D. Going concern The Group’s unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2026 have been prepared on a going concern basis, which assumes that the Group will be able to realize its assets and discharge its liabilities in the normal course of business as they become due in the foreseeable future. E. Changes in accounting policies and disclosures Recent amendments to IFRS 9 and related IFRS 7 disclosure requirements address the settlement of financial liabilities via electronic payment systems and refine the assessment of contractual cash flow characteristics for financial assets. The amendments are effective for annual reporting periods beginning on or after January 1, 2026. These changes have not a material impact on the financial statements. IFRS 18 replaces IAS 1 and introduces expanded requirements for how financial information is presented and disclosed. The standard adds new subtotals, categories for income and expenses, and mandates disclosure of management performance measures. It also enhances rules around aggregation and disaggregation. Adoption is retrospective, and the Corporation is currently assessing system changes, preparing draft disclosures, and planning comparative restatements ahead of the 2027 effective date.
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9 Notes to the Interim Condensed Consolidated Financial Statements For the three and six months ended June 30, 2026 and 2025, UNAUDITED 2. SEGMENT INFORMATION The Group operates within several geographical areas. Operating segments are reported at a country level which is consistent with the internal reporting provided to the CEO, who is the chief operating decision maker. The following tables present segment information regarding: revenue, production costs, other operating costs and gross profit/ (loss). The Group derives its revenue from contracts with customers primarily through the transfer of oil and gas at a point in time. In addition, certain identifiable asset segment information is reported in Note 6 and 7. Three months ended June 30, 2026 USD Thousands Canada Malaysia France Other Total Crude oil 198,783 22,521 17,036 – 238,340 NGLs 240 – – – 240 Gas 8,744 – – – 8,744 Net sales of oil and gas 207,767 22,521 17,036 – 247,324 Royalties (31,325) – (1,035) – (32,360) Hedging settlement (29,567) – – – (29,567) Other operating revenue – – 162 179 341 Revenue 146,875 22,521 16,163 179 185,738 Operating costs (49,727) (15,318) (8,393) – (73,438) Cost of blending (47,564) – – – (47,564) Change in inventory position 338 2,693 (200) – 2,831 Depletion and decommissioning costs (20,684) (5,442) (2,676) – (28,802) Exploration and business development costs – – – (671) (671) Gross profit/(loss) 29,238 4,454 4,894 (492) 38,094 Three months ended June 30, 2025 USD Thousands Canada Malaysia France Other Total Crude oil 140,002 11,828 11,463 – 163,293 NGLs 167 – – – 167 Gas 9,752 – – – 9,752 Net sales of oil and gas 149,921 11,828 11,463 – 173,212 Change in under/over lift position – – 1,559 – 1,559 Royalties (20,885) – (732) – (21,617) Hedging settlement 5,375 – – – 5,375 Other operating revenue – – 205 158 363 Revenue 134,411 11,828 12,495 158 158,892 Operating costs (50,286) (11,768) (8,468) – (70,522) Cost of blending (33,269) – – – (33,269) Change in inventory position (315) 203 (7) – (119) Depletion and decommissioning costs (21,537) (4,891) (2,893) – (29,321) Depreciation of other tangible fixed assets – (1,461) – – (1,461) Exploration and business development costs – – – (537) (537) Gross profit/(loss) 29,004 (6,089) 1,127 (379) 23,663
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10 Notes to the Interim Condensed Consolidated Financial Statements For the three and six months ended June 30, 2026 and 2025, UNAUDITED Six months ended June 30, 2026 USD Thousands Canada Malaysia France Other Total Crude oil 347,618 47,081 37,672 – 432,371 NGLs 383 – – – 383 Gas 21,086 – – – 21,086 Net sales of oil and gas 369,087 47,081 37,672 – 453,840 Change in under/over lift position – – (4,744) – (4,744) Royalties (49,303) – (1,733) – (51,036) Hedging settlement (39,857) – – – (39,857) Other operating revenue – – 366 179 545 Revenue 279,927 47,081 31,561 179 358,748 Operating costs (98,947) (24,441) (18,289) – (141,677) Cost of blending (86,455) – – – (86,455) Change in inventory position 877 4,024 59 – 4,960 Depletion and decommissioning costs (41,278) (11,567) (5,888) – (58,733) Exploration and business development costs – – – (1,574) (1,574) Gross profit/(loss) 54,124 15,097 7,443 (1,395) 75,269 Six months ended June 30, 2025 USD Thousands Canada Malaysia France Other Total Crude oil 302,024 27,204 24,277 – 353,505 NGLs 358 – – – 358 Gas 21,374 – – – 21,374 Net sales of oil and gas 323,756 27,204 24,277 – 375,237 Change in under/over lift position – – 2,700 – 2,700 Royalties (43,673) – (1,572) – (45,245) Hedging settlement 4,159 – – – 4,159 Other operating revenue – – 375 158 533 Revenue 284,242 27,204 25,780 158 337,384 Operating costs (102,791) (20,349) (16,535) – (139,675) Cost of blending (70,995) – – – (70,995) Change in inventory position 13 3,542 (174) – 3,381 Depletion and decommissioning costs (42,636) (10,642) (5,059) – (58,337) Depreciation of other tangible fixed assets – (3,378) – – (3,378) Exploration and business development costs – – – (568) (568) Gross profit/(loss) 67,833 (3,623) 4,012 (410) 67,812
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11 Notes to the Interim Condensed Consolidated Financial Statements For the three and six months ended June 30, 2026 and 2025, UNAUDITED 3. PRODUCTION COSTS Three months ended June 30 Six months ended June 30 USD Thousands 2026 2025 2026 2025 Cost of operations 62,927 60,915 119,892 119,117 Tariff and transportation expenses 9,378 8,505 19,495 18,449 Direct production taxes 1,133 1,102 2,290 2,109 Operating costs 73,438 70,522 141,677 139,675 Cost of blending1 47,564 33,269 86,455 70,995 Change in inventory position (2,831) 119 (4,960) (3,381) Total production costs 118,171 103,910 223,172 207,289 1 In Canada, oil production is blended with purchased condensate diluent to meet pipeline specifications. Cost of blending represents the contracted purchase of diluent used for blending. 4. NET FINANCIAL ITEMS Three months ended June 30 Six months ended June 30 USD Thousands 2026 2025 2026 2025 Interest income 221 694 346 2,328 Interest expense (10,051) (8,980) (19,611) (17,741) Unwinding of asset retirement obligation discount (4,123) (4,115) (8,285) (8,072) Amortization of capitalized financing fees (603) (529) (1,124) (1,048) Loan commitment fees (212) (314) (380) (544) Foreign exchange gain/(loss), net (7,484) 14,215 (13,752) 14,233 Currency hedge gains/(loss), net – (660) – (7,518) Other financial costs (133) (152) (316) (334) Total Net Financial items (22,385) 159 (43,122) (18,696) 5. INCOME TAX Three months ended June 30 Six months ended June 30 USD Thousands 2026 2025 2026 2025 Current tax (1,212) (337) (1,668) (851) Deferred tax (2,933) (5,830) (5,863) (9,995) Total tax expense (4,145) (6,167) (7,531) (10,846)
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12 Specification of deferred tax assets and tax liabilities1 USD Thousands June 30, 2026 December 31, 2025 Unused tax loss carry forward 79,053 65,825 Other 6,990 6,858 Deferred tax assets 86,043 72,683 Accelerated allowances 208,752 192,464 Derivative hedges 1,382 597 Deferred tax liabilities 210,134 193,061 Deferred taxes, net (124,091) (120,378) 1 The specification of deferred tax assets and tax liabilities does not agree to the face of the balance sheet due to the netting off of balances in the balance sheet when they relate to the same jurisdiction. The deferred tax liabilities consist of accelerated allowances, being the difference between the book and the tax value of oil and gas properties and site restoration provisions. The deferred tax liabilities will be released over the life of the oil and gas assets as the book value is depleted for accounting purposes. Deferred tax assets in relation to tax loss carried forwards are only recognized in so far that there is a reasonable certainty as to the timing and the extent of their realization. The recognized unused tax loss carry forward mainly relates to Canada. The Group has concluded that the deferred assets will be recoverable using the estimated future taxable income based on the approved budgets and reserves reports. 6. EXPLORATION AND EVALUATION ASSETS USD Thousands Canada Malaysia France Total Cost January 1, 2026 11,623 – – 11,623 Additions 1,858 – – 1,858 Currency translation adjustments (507) – – (507) Net book value June 30, 2026 12,974 – – 12,974 USD Thousands Canada Malaysia France Total Cost January 1, 2025 480 – – 480 Acquisitions 7,311 – – 7,311 Additions 5,036 – 15 5,051 Write-off – – (15) (15) Reclassification (1,305) – – (1,305) Currency translation adjustments 101 – – 101 Net book value December 31, 2025 11,623 – – 11,623 Impairment test As of June 30, 2026, the Group determined that no internal or external indicators of impairment existed on its exploration and evaluation assets; therefore, the performance of an impairment test was determined not to be necessary (similar as of December 31, 2025). Notes to the Interim Condensed Consolidated Financial Statements For the three and six months ended June 30, 2026 and 2025, UNAUDITED
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13 7. PROPERTY, PLANT AND EQUIPMENT USD Thousands 2026 2025 Oil and gas properties 1,763,772 1,772,278 Other tangible fixed assets 11,091 11,220 Property, Plant and Equipment 1,774,863 1,783,498 Oil and gas properties USD Thousands Canada Malaysia France Total Cost January 1, 2026 2,141,610 640,581 465,622 3,247,813 Additions 106,880 1,345 8,576 116,801 Change in estimates (606) – – (606) Currency translation adjustments (85,564) – (14,187) (99,751) June 30, 2026 2,162,320 641,926 460,011 3,264,257 Accumulated depletion January 1, 2026 (563,215) (554,509) (357,811) (1,475,535) Depletion charge for the period (41,278) (11,567) (5,888) (58,733) Currency translation adjustments 22,927 – 10,856 33,783 June 30, 2026 (581,566) (566,076) (352,843) (1,500,485) Net book value June 30, 2026 1,580,754 75,850 107,168 1,763,772 USD Thousands Canada Malaysia France Total Cost January 1, 2025 1,767,580 599,734 405,129 2,772,443 Additions 286,570 40,877 5,759 333,206 Change in estimates (9,845) (30) 1,959 (7,916) Reclassification 1,305 – – 1,305 Currency translation adjustments 96,000 – 52,775 148,775 December 31, 2025 2,141,610 640,581 465,622 3,247,813 Accumulated depletion January 1, 2025 (451,017) (530,315) (306,624) (1,287,956) Depletion charge for the year (87,449) (24,194) (11,106) (122,749) Currency translation adjustments (24,749) – (40,081) (64,830) December 31, 2025 (563,215) (554,509) (357,811) (1,475,535) Net book value December 31, 2025 1,578,395 86,072 107,811 1,772,278 Impairment test As of June 30, 2026, the Group determined that no internal or external indicators of impairment existed on its oil and gas properties; therefore, the performance of an impairment test was determined not to be necessary (similar as of December 31, 2025). Notes to the Interim Condensed Consolidated Financial Statements For the three and six months ended June 30, 2026 and 2025, UNAUDITED
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14 Other tangible fixed assets USD Thousands FPSO Other Total Cost January 1, 2026 204,853 11,247 216,100 Additions – 131 131 Currency translation adjustments – (322) (322) June 30, 2026 204,853 11,056 215,909 Accumulated depreciation January 1, 2026 (195,653) (9,227) (204,880) Depreciation charge for the period – (200) (200) Currency translation adjustments – 262 262 June 30, 2026 (195,653) (9,165) (204,818) Net book value June 30, 2026 9,200 1,891 11,091 USD Thousands FPSO Other1 Total Cost January 1, 2025 204,853 9,824 214,677 Additions – 640 640 Disposals – (29) (29) Currency translation adjustments – 812 812 December 31, 2025 204,853 11,247 216,100 Accumulated depreciation January 1, 2025 (190,056) (8,196) (198,252) Depreciation charge for the year (5,597) (397) (5,994) Disposals – 29 29 Currency translation adjustments – (663) (663) December 31, 2025 (195,653) (9,227) (204,880) Net book value December 31, 2025 9,200 2,020 11,220 1 Depreciation of Other is included in General and administrative expenses in the statement of operations. The Floating Production Storage and Offloading facility (“FPSO“) located on the Bertam field, Malaysia, was depreciated to its residual value to August 2025. The depreciation charge was included in the depreciation of other assets line in the Statement of Operations in 2025. For office equipment and other assets, the depreciation charge for the year is based on cost and an estimated useful life of 3 to 5 years. The depreciation charge is included within the general and administrative expenses in the Statement of Operations. Notes to the Interim Condensed Consolidated Financial Statements For the three and six months ended June 30, 2026 and 2025, UNAUDITED
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15 8. OTHER NON-CURRENT ASSETS USD Thousands June 30, 2026 December 31, 2025 Financial assets 34,317 34,545 Intangible assets 11,185 11,671 45,502 46,216 Financial assets mainly represent cash payments made in local currency to an asset retirement obligation fund for the Bertam field, Malaysia for an amount equivalent of USD 34.3 million (2025: USD 34.5 million), see note 15. Intangible assets mainly represent carbon offsets purchased in Canada. 9. INVENTORIES USD Thousands June 30, 2026 December 31, 2025 Hydrocarbon stocks 26,628 11,995 Well supplies and operational spares 8,345 7,995 34,973 19,990 10. TRADE AND OTHER RECEIVABLES USD Thousands June 30, 2026 December 31, 2025 Trade receivables 91,038 73,245 Underlift – 6,704 Joint operations debtors 1,193 2,292 Prepaid expenses and accrued income 20,446 8,437 Other1 6,229 6,542 118,906 97,220 1 Other includes a cash collateralized guarantee placed in respect of work commitments in Malaysia amounting to USD 4.0 million. 11. CASH AND CASH EQUIVALENTS Cash and cash equivalents include only cash at hand or held in bank accounts. 12. SHARE CAPITAL The Corporation’s issued common share capital is as follows: Number of shares Balance at January 1, 2025 119,169,471 Cancellation of repurchased common shares (7,013,944) Balance at December 31, 2025 112,155,527 Issuance of common shares 671,225 Balance at June 30, 2026 112,826,752 The common shares of IPC are listed to trade on both the Toronto Stock Exchange and the Nasdaq Stockholm Exchange. The Corporation is authorized to issue an unlimited number of Common Shares without par value. As at January 1, 2025, IPC had a total of 119,169,471 common shares issued and outstanding, of which 110,156 common shares were held in treasury. Notes to the Interim Condensed Consolidated Financial Statements For the three and six months ended June 30, 2026 and 2025, UNAUDITED
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16 Over the period of January 1, 2025 to December 4, 2025, IPC purchased and cancelled 6,641,970 common shares under the normal course issuer bid (NCIB) and 261,818 common shares under certain other exemptions in Canada. In the first quarter of 2026, IPC paid USD 2 million of taxes in Canada in connection to the common shares repurchased in 2025 (or 2% of the total repurchase consideration). As at December 31, 2025, IPC had a total of 112,155,527 common shares issued and outstanding, with no common shares held in treasury. In February 2026, IPC issued 671,225 common shares in connection with the vesting of previously issued IPC Share Unit Plan awards. As at June 30, 2026, IPC had a total of 112,826,752 common shares issued and outstanding, with no common shares held in treasury. In addition, IPC has 117,485,389 outstanding class A preferred shares, issued as a part of an internal corporate structuring to a wholly-owned subsidiary of IPC. Such preferred shares are not listed on any stock exchange and do not carry the right to vote on matters to be decided by the holders of IPC’s common shares. 13. EARNINGS PER SHARE Basic earnings per share are based on net result attributable to the common shareholders and is calculated based upon the weighted-average number of common shares outstanding during the years presented. Three months ended June 30 Six months ended June 30 2026 2025 2026 2025 Net result attributable to shareholders of the Parent Company, USD 9,912,530 13,848,567 22,672,542 30,077,554 Weighted average number of shares for the period 112,826,752 115,156,270 112,498,598 117,207,237 Earnings per share, USD 0.09 0.12 0.20 0.26 Weighted average diluted number of shares for the period 114,163,680 116,613,413 113,835,526 118,664,380 Earnings per share fully diluted, USD 0.09 0.12 0.20 0.25 14. FINANCIAL LIABILITIES USD Thousands June 30, 2026 December 31, 2025 Current bank loans – 1,943 Non current bank loans 70,247 38,709 Bonds 450,000 450,000 Capitalized financing fees (6,868) (7,676) 513,379 482,976 As at January 1, 2025, IPC had USD 450 million of senior unsecured bonds outstanding, maturing in February 2027 with a fixed coupon rate of 7.25% per annum. In October 2025, IPC completed the issuance of USD 450 million of new senior unsecured bonds, maturing in October 2030 with a fixed coupon rate of 7.50% per annum, payable in semi-annual instalments in April and October, and with semi-annual amortizations of USD 25 million commencing in April 2028. The proceeds of the new bonds were used to fully redeem and cancel the previous bonds. The bond repayment obligations as at June 30, 2026, are classified as non-current as there are no mandatory repayments within the next twelve months. In addition, as at June 30, 2026, the Group had a senior secured revolving credit facility of CAD 348.5 million (the “Canadian RCF”) in connection with its oil and gas assets in Canada, with a maturity date in May 2028. As at June 30, 2026, CAD 100 million (approximately USD 70 million) was drawn under the Canadian RCF . As at June 30, 2026, the Group also had a letter of credit facility in Canada (the “LC Facility”). As at June 30, 2026, operational letters of credit in an aggregate of CAD 11.9 million have been issued under the LC Facility. The Group is in compliance with the covenants of the bonds and its financing facilities as at June 30, 2026. Notes to the Interim Condensed Consolidated Financial Statements For the three and six months ended June 30, 2026 and 2025, UNAUDITED
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17 15. PROVISIONS USD Thousands Asset retirement obligation Farm-in obligation Pension obligation Other Total January 1, 2026 284,532 1,230 3,372 2,097 291,231 Additions – – – 459 459 Unwinding of asset retirement obligation discount 8,285 – – – 8,285 Payments (1,048) – – (780) (1,828) Change in estimates (606) – – – (606) Currency translation adjustments (7,871) (7) – (30) (7,908) June 30, 2026 283,292 1,223 3,372 1,746 289,633 Non-current 277,631 – 3,372 1,746 282,749 Current 5,661 1,223 – – 6,884 Total 283,292 1,223 3,372 1,746 289,633 USD Thousands Asset retirement obligation Farm-in obligation Pension obligation Other Total January 1, 2025 267,790 1,679 3,685 2,072 275,226 Additions – – 816 815 1,631 Unwinding of asset retirement obligation discount 16,498 – – – 16,498 Payments (5,967) (587) (963) (897) (8,414) Change in estimates (7,916) – (654) – (8,570) Reclassification1 725 – – – 725 Currency translation adjustments 13,402 138 488 107 14,135 December 31, 2025 284,532 1,230 3,372 2,097 291,231 Non-current 278,733 – 3,372 2,097 284,202 Current 5,799 1,230 – – 7,029 Total 284,532 1,230 3,372 2,097 291,231 1 The reclassification of the asset retirement obligation related to the 2025 payment to the asset retirement obligation fund in respect of the Bertam asset, Malaysia (see Note 8). The farm-in obligation relates to future payments for historic costs on the Bertam field in Malaysia payable for every 1 MMboe gross that the field produces above 10 MMboe gross and is capped at cumulative production of 27.5 MMboe gross. In calculating the present value of the asset retirement obligation provision, a blended discount rate of 6% (2025: 6%) per annum was used, based on a credit risk adjusted rate. The calculation also assumes that the costs are inflated by 2% a year (2025: 2%). The payment of these obligations is spread over a period of 60 years. 16. TRADE AND OTHER PAYABLES USD Thousands June 30, 2026 December 31, 2025 Trade payables 42,756 39,377 Joint operations creditors 1,942 2,198 Accrued expenses 111,566 101,353 Other 12,128 6,780 168,392 149,708 Notes to the Interim Condensed Consolidated Financial Statements For the three and six months ended June 30, 2026 and 2025, UNAUDITED
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18 17. FINANCIAL ASSETS AND LIABILITIES Financial assets and liabilities by category The accounting policies for financial instruments have been applied to the line items below: June 30, 2026 USD Thousands Total Financial assets at amortized cost Fair value recognized in profit or loss (FVTPL) Derivatives used for hedging Other assets1 34,317 34,317 – – Derivative instruments 6,320 – – 6,320 Joint operation debtors 1,193 1,193 – – Other current receivables2 98,652 98,652 – – Cash and cash equivalents 11,248 11,248 – – Financial assets 151,730 145,410 – 6,320 1 See Note 8 2 Prepayments are not included in other current assets as prepayments are not deemed to be financial instruments. June 30, 2026 USD Thousands Total Financial liabilities at amortized cost Fair value recognized in profit or loss (FVTPL) Derivatives used for hedging Non-current financial liabilities 513,379 513,379 – – Derivative instruments 511 – – 511 Joint operation creditors 1,942 1,942 – – Other current liabilities 166,980 166,980 – – Financial liabilities 682,812 682,301 – 511 December 31, 2025 USD Thousands Total Financial assets at amortized cost Fair value recognized in profit or loss (FVTPL) Derivatives used for hedging Other assets1 34,545 34,545 – – Derivative instruments 2,929 – – 2,929 Joint operation debtors 2,292 2,292 – – Other current receivables2 90,902 84,198 6,704 – Cash and cash equivalents 7,037 7,037 – – Financial assets 137,705 128,072 6,704 2,929 1 See Note 8 2 Prepayments are not included in other current assets as prepayments are not deemed to be financial instruments. December 31, 2025 USD Thousands Total Financial liabilities at amortized cost Fair value recognized in profit or loss (FVTPL) Derivatives used for hedging Non-current financial liabilities 481,033 481,033 – – Current financial liabilities 1,943 1,943 – – Derivative instruments 422 – – 422 Joint operation creditors 2,198 2,198 – – Other current liabilities 147,726 147,726 – – Financial liabilities 633,322 632,900 – 422 Notes to the Interim Condensed Consolidated Financial Statements For the three and six months ended June 30, 2026 and 2025, UNAUDITED
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19 The carrying amount of the Group’s financial assets and liabilities approximate their fair values at the balance sheet dates. For financial instruments measured at fair value in the balance sheet, the following fair value measurement hierarchy is used: – Level 1: based on quoted prices in active markets; – Level 2: based on inputs other than quoted prices as within level 1, that are either directly or indirectly observable; – Level 3: based on inputs which are not based on observable market data. Based on this hierarchy, financial instruments measured at fair value can be detailed as follows: June 30, 2026 USD Thousands Level 1 Level 2 Level 3 Derivative instruments – current – 4,639 – Derivative instruments – non-current – – 1,681 Financial assets – 4,639 1,681 Derivative instruments – current – – 511 Derivative instruments – non-current – – – Financial liabilities – – 511 December 31, 2025 USD Thousands Level 1 Level 2 Level 3 Other current receivables 6,704 – – Derivative instruments – current – 1,644 – Derivative instruments – non-current – – 1,285 Financial assets 6,704 1,644 1,285 Derivative instruments – current – – – Derivative instruments – non-current – – 422 Financial liabilities – – 422 The Group had oil price sale financial hedges outstanding as at June 30, 2026 which are summarized as follows: Period Volume (barrels per day) Type Average Pricing July 1, 2026 - December 31, 2026 5,000 WTI/WCS Differential USD -12.50/bbl July 1, 2026 - December 31, 2027 5,000 WCS (Hardisty vs Houston)1 USD -7.55/bbl July 1, 2026 - December 31, 2026 2,000 ARV2 USD -3.65/bbl 1 Represents the cost of transporting a barrel of WCS quality from Hardisty, Alberta to Houston, Texas. 2 Represents the difference in USD of a barrel of WCS quality in Houston against a barrel of WTI quality. The Group had gas price sale financial hedges outstanding as at June 30, 2026 which are summarized as follows: Period Volume (GJ per day) Type Average Pricing July 1, 2026 - October 31, 2026 15,000 AECO Gas Swap CAD 2.73/GJ The Group had electricity financial hedges outstanding as at June 30, 2026 which are summarized as follows: Period Volume (MW) Type Average Pricing July 1, 2026 - September 30, 2040 3 AESO CAD 75.00/MWh All of the above hedges are treated as effective and changes to the fair value are reflected in other comprehensive income. Notes to the Interim Condensed Consolidated Financial Statements For the three and six months ended June 30, 2026 and 2025, UNAUDITED
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20 18. CONTRACTUAL OBLIGATIONS AND COMMITMENTS In the normal course of business, the Group has committed to certain payments which are not recognized as liabilities. The following table summarizes the Group’s commitments in Canada as at June 30, 2026: CAD Millions 2026 2027 2028 2029 2030 Thereafter Transportation service1 30.4 83.8 99.5 100.8 101.7 1,355.0 Power2 6.2 12.4 9.8 – – – Total commitments 36.6 96.2 109.3 100.8 101.7 1,355.0 1 IPC has firm transportation commitments on oil and natural gas pipelines that expire between 2037 and 2046. 2 IPC has physical delivery power hedges to purchase 15MWh at a weighted average price of CAD 74.92/MWh from July 1, 2026 to December 31, 2028, and an additional 5MWh at a weighted average price of CAD 58.31/MWh from July 1, 2026 to December 31, 2027. 19. RELATED PARTIES The Group recognizes the following related parties: associated companies, jointly controlled entities, key management personnel and members of their close family or other parties that are partly, directly or indirectly controlled by key management personnel or of its family or of any individual that controls, or has joint control or significant influence over the entity. All transactions with related parties are in the normal course of business and are made on the same terms and conditions as with parties at arm’s length. During the first six months of 2026, the Group has not entered into material transactions with related parties. 20. SUBSEQUENT EVENTS In July 2026, the Group entered into the following oil price sale financial hedges: Period Volume (barrels per day) Type Average Pricing January 1, 2027 - December 31, 2027 5,000 WCS (Hardisty vs Houston)¹ USD -7.50/bbl 1 Represents the cost of transporting a barrel of WCS quality from Hardisty, Alberta to Houston, Texas. Notes to the Interim Condensed Consolidated Financial Statements For the three and six months ended June 30, 2026 and 2025, UNAUDITED
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International Petroleum Corporation Suite 2800 1055 Dunsmuir Street Vancouver, British Columbia V7X 1L2, Canada Tel: +1 604 689 7842 E-mail: info@international-petroleum.com Web: international-petroleum.com□