LONDON (ShareCast) - (Sharecast News) - Energean announced record first-half financial and operational results on Wednesday, driven by the start-up of the Karish North field and the completion of the second gas export riser in Israel.
The FTSE 250 company said revenue for the period reached $867m - a 47% increase from the prior year, with $643m coming from continuing operations.

Adjusted EBITDAX surged 65% to $568m, and profit after tax increased 27% to $89m.

The firm also reported a strong operational performance, with average production in June reaching a record 177,000 barrels of oil equivalent per day, 84% of which was gas.

For the first half of the year, total production rose by 38% to 146,000 daily equivalent barrels, reflecting increased demand, especially in Israel.

Despite ongoing geopolitical developments in the region, Energean said its day-to-day production in Israel remained unaffected, with an uptime of 99% for its floating production storage and offloading (FPSO) units.

Energean was also advancing its strategic sale of its assets in Egypt, Italy, and Croatia to Carlyle International Energy Partners.

The transaction, expected to close by the end of the year, had already received key regulatory approvals in Italy and remained on track.

The firm said it planned to use the proceeds to repay a $450m corporate bond and distribute up to $200m in special dividends to shareholders.

In addition, key projects across Energean's portfolio were progressing.

In Israel, the Karish North gas field came online in February, and work was underway on a second oil train.

Italy saw the Cassiopea field starting production in August, with additional wells expected to be operational soon.

Energean also reported advances in its decarbonisation efforts, including the development of the Prinos carbon storage project, aiming to store up to three million tons of carbon dioxide annually.

The company declared a second-quarter dividend of 30 cents per share, bringing the total shareholder returns to $486m since dividends were first issued.

Energean said it remained committed to returning $1bn to shareholders by 2025.

Looking ahead, Energean narrowed its 2024 production guidance to between 155,000 and 165,000 daily equivalent barrels, and reduced its cash cost of production forecast.

However, development capital expenditure was expected to increase to between $600m and $700m due to progress on the Katlan project in Israel.

"I am pleased to report our highest ever set of half-year results, with double digit year-on-year growth in production, revenue and adjusted EBITDAX," said chief executive officer Mathios Rigas.

"In Israel, we achieved record monthly production, reflecting the step-up in demand during the summer and excellent uptime of the FPSO.

"Our operations remain resilient in the face of ongoing geopolitical developments and our day-to-day production has remained unimpacted."

Rigas said the company also continued its record of maximising value for shareholders, announcing the divestment of its Egyptian, Italian and Croatian portfolio to Carlyle for more than three times the value it paid for them.

"Good progress is being made towards completion, upon which we expect to reduce gross debt and return money to shareholders in line with previous announcements.

"This is only the start of a new chapter in the Energean story - the combination of operational excellence and entrepreneurial deal-making is the foundation on which a new Energean will continue to deliver for its shareholders.

"We continue to be committed to our objectives of consistent returns to shareholders, capital discipline and responsibly produced energy with outstanding environmental, social and governance ratings."

At 1128 BST, shares in Energean were up 0.53% at 890.16p.

Reporting by Josh White for Sharecast.com.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE