Ithaca Energy posts full-year results at top-end of guidance
By Josh White
Date: Wednesday 26 Mar 2025
(Sharecast News) - Ithaca Energy posted a solid operational and financial performance for 2024 on Wednesday, with results at the top end of guidance, as the company benefited from the integration of Eni's UK upstream assets following the completion of the business combination in October.
The FTSE 250 firm said pro forma figures highlighted the scale of the enlarged group, which was now the UK Continental Shelf's largest resource holder and second-largest independent producer.
Full-year production averaged 80,177 barrels of oil equivalent per day, up from 70,239 equivalent daily barrels in 2023.
On a pro forma basis, assuming full-year contributions from Eni UK, production reached 105,500 barrels per day.
Production in the fourth quarter averaged 116,000 daily barrels, with peak rates hitting 138,000 barrels per day and a continued upward trend into early 2025.
Adjusted EBITDAX for the year came in at $1.41bn, down from $1.72bn in 2023, reflecting only partial inclusion of Eni UK's assets.
On a pro forma basis, EBITDAX was $1.99bn.
Revenue declined to $1.98bn from $2.32 billion the prior year.
Profit after tax fell to $153.2m from $292.6m, impacted by a $103m post-tax impairment charge.
The company declared a third interim dividend of $200m for 2024, taking the total dividend for the year to $500m, in line with its stated target.
Ithaca reaffirmed its dividend policy for 2025, aiming to distribute 30% of post-tax cash flow from operations, with a similar $500m payout expected.
Operating costs rose modestly to $22.4 per barrel of oil equivalent from $20.5 in 2023, but fourth quarter unit costs fell to $14/boe, underscoring the efficiency of the post-deal portfolio.
Capital expenditure on producing assets was $448m, within guidance, while Rosebank spending reached $198m.
The Rosebank project remained on track for first oil in 2026-2027.
Ithaca completed a $2.25bn refinancing in October, including a $750m senior notes issuance, enhancing financial flexibility. Adjusted net debt rose to $885m, up from $572m, with pro forma leverage at 0.45x.
Ithaca said it was continuing to pursue consolidation in the UKCS, announcing the acquisition of Japex UK E&P in March, increasing its stake in the Seagull field to 50%.
The deal was expected to be completed by the end of June.
Looking ahead, Ithaca said it expected 2025 production between 105,000 and 115,000 barrels of oil equivalent per day, underpinned by full-year contributions from Eni UK assets and ongoing organic developments.
Medium-term production was forecast to remain above 100,000 equivalent daily barrels, supported by the Captain EOR phase two project, Rosebank start-up and infill drilling.
The company forecast over $9bn in pre-tax operating cash flow from 2P reserves between 2025 and 2029 at $80 per barrel and 85p per therm.
"2024 was a transformational year for Ithaca Energy, having made material progress across our strategic objectives creating value organically and inorganically," said executive chairman Yaniv Friedman.
"We enter our next era of growth, with a proven strategy and a range of strategic options for growth."
Friedman said Tuesday's announcement of the company's acquisition of Japex UK, increasing its stake in the "high-quality, long-life" Seagull field, demonstrated continued execution of the firm's inorganic growth strategy, building further scale in its core UK Continental Shelf market.
"Our focus in 2025 will continue to be on high-grading investment across our range of growth opportunities, executing in line with our strategy as a value-led investor, to maximise long-term sustainable shareholder value through growth and distributions."
At 0818 GMT, shares in Ithaca Energy were up 2.32% at 145p.
Reporting by Josh White for Sharecast.com.
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