LONDON (ShareCast) - (Sharecast News) - Shares in Ithaca Energy surged on Thursday after the UK-focused oil group announced a $200m special dividend alongside its third-quarter results, after completing its takeover of Eni UK and finalising a new debt refinancing.
Ithaca said that its "transformational" combination with Eni UK - which saw it purchase all of Eni's oil and gas producing assets in Britain - gives it increased scale and enhanced cash flows to support "continued growth aspirations and material distributions to shareholders".

The company said it was on track to hit its dividend target of $500m for 2024, having announced $300m of interim and special dividends so far this year.

Production across the enlarged group averaged 91,000 barrels of oil equivalents per day over the first nine months of 2024, with peak production rates post-takeover reaching more than 120,000boepd during the fourth quarter.

Ithaca said it was on track to hit its full-year production target of 76,000-81,000boepd.

Adjusted earnings before interest, tax, depreciation, amortisation, and exploration (EBITDAX) totalled $759m for the nine-month period, down from $1.37bn last year.

Since the end of the third quarter, Ithaca has also enhanced its balance sheet by refinancing $2.25bn in loans and received higher credit ratings from Fitch and Moody's. Adjusted net debt at the end of the period was $543m, down from $677m on the same date last year.

"Our enhanced balance sheet following the successful conclusion of a $2.25 bn refinancing in October offers significant liquidity to the Group as we continue to pursue our growth aspirations," said chief financial officer Iain Lewis.

"The immediate benefit of the business combination, with increased scale, diversification and debt capacity was reflected in the demand for and pricing of the refinancing."

The stock was up nearly 8% at 107.59p by 1029 GMT.

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