Sable Offshore Corp (NYSE:SOC) Reports Q3 2025 Results with No Revenue, Wider Loss

Sable Offshore Corp (NYSE:SOC) released its third-quarter 2025 financial results, revealing significant deviations from analyst expectations alongside substantial operational challenges. The company reported no revenue for the quarter, a stark contrast to market projections, while its net loss widened considerably beyond estimates.

Earnings and Revenue Performance

The third-quarter figures highlight the gap between Sable Offshore's current operational status and market expectations:

• Revenue: Reported $0.0 million against an analyst estimate of approximately $123.4 million.
• Earnings Per Share (EPS): Reported a Non-GAAP loss of $1.11 per share, more than double the estimated loss of $0.52 per share.

The absence of revenue directly stems from the company's ongoing situation with its Santa Ynez Unit (SYU) assets. While production at the SYU restarted in May 2025, the company has not yet been able to sell the oil it has produced. The oil is currently being stored onshore pending the resumption of transportation via an Offshore Storage and Treating Vessel (OS&T) or the Las Flores Pipeline System. The company's financial results were heavily impacted by costs associated with restarting production in the absence of sales income.

Financial Position and Operational Update

The earnings press release detailed a difficult financial quarter, with the company's balance sheet reflecting the costs of its restart efforts. Sable Offshore reported a net loss of $110.4 million for Q3 2025. This loss was attributed primarily to production restart-related operating expenses and non-cash interest expense, which were only partially offset by a non-cash gain from the change in fair value of its warrant liabilities.

Key balance sheet items at the end of the quarter include:

• A cash and cash equivalents balance of $41.6 million.
• Short-term outstanding debt of $896.6 million, inclusive of paid-in-kind interest.
• Approximately 99.5 million shares of common stock outstanding.

The company's forward-looking statements emphasize the uncertainties surrounding its ability to recommence oil sales, noting that there is no assurance the necessary approvals for the OS&T vessel or pipeline will be obtained.

Market Reaction and Outlook

Following the earnings release, Sable Offshore's stock experienced notable volatility. The immediate after-market trading saw a significant price increase of over 2.3%. This positive short-term reaction suggests that some investors may be looking beyond the current lack of revenue and focusing on the long-term potential of the SYU assets once sales resume. However, the stock's performance over the past month shows a decline of over 55%, indicating broader market concerns leading up to the report.

The press release did not provide a specific financial outlook for the coming quarters. Analyst estimates for the full year 2025 project sales of approximately $331.2 million, with a significant portion of that, around $207.8 million, expected in the fourth quarter. For Sable Offshore to meet these expectations, it must successfully resolve its oil transportation challenges and begin commercial sales in the very near future.

Conclusion

Sable Offshore Corp's third-quarter results underscore the critical juncture at which the company finds itself. While the restart of production at the Santa Ynez Unit is a necessary step forward, the inability to generate revenue creates substantial financial pressure, as evidenced by the large net loss and high debt load. The market's reaction appears to be a mix of short-term optimism about the production restart and long-term apprehension regarding the timeline to profitability. The company's near-term future is entirely dependent on its ability to secure a pathway to market for its oil.

For a detailed look at historical earnings and future analyst estimates for Sable Offshore Corp, you can review the data here.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. The author has no position in the security mentioned. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.