Sable Offshore Corp. reported a third‑quarter 2025 net loss of $110.4 million, an earnings‑per‑share figure of $‑1.11, and zero revenue, while confirming that the Santa Ynez Unit resumed production in May 2025. The loss reflects heavy restart‑related operating expenses, non‑cash interest expense, and a non‑cash gain on warrant liabilities, all of which offset the company’s limited cash inflows.
The earnings miss of $0.43 per share against the consensus estimate of $‑0.68 is driven primarily by the high cost of restarting the Santa Ynez Unit and the absence of commercial sales. Restart operations incurred significant capital and operating outlays, and the company has not yet secured a transportation solution to move the produced oil to market, leaving it unable to generate revenue to offset these costs.
Revenue fell to $0.0 million, a complete miss of the consensus estimate of roughly $123 million. The company has not sold any hydrocarbons since the assets were shut in 2015; oil produced since May 2025 is stored onshore at the Las Flores Canyon facility while the company evaluates an offshore storage‑and‑treating vessel or the Las Flores Pipeline System. The lack of sales underscores the pre‑revenue phase and the logistical hurdle that must be overcome before cash generation can begin.
Comparing to prior periods, Sable’s Q3 2024 net loss was $255.6 million, and its Q2 2025 loss was $128.1 million. The current quarter’s loss is a significant improvement, reflecting reduced operating expenses and a partial offset from the warrant liability gain, but the company remains far from profitability.
Management emphasized the milestone of restarting production but cautioned that commercial sales will not materialize until a transportation solution is secured. Jim Flores, Chairman and CEO, said the restart was a “milestone” and highlighted the prolific nature of the Santa Ynez reservoir, while noting the company’s focus on regulatory approvals and capital deployment. Analysts expect the first commercial sales to begin in Q4 2025, contingent on pipeline approvals, and anticipate that the company’s short‑term debt of $896.6 million will pressure future financing needs.
Investors reacted negatively to the earnings, citing the large revenue miss and the continued lack of commercial sales. The company’s high debt load, regulatory hurdles, and environmental concerns add headwinds, while the restart milestone provides a tailwind that could unlock future cash flow once transportation and sales are resolved.
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