Energean gas's first-half profit rises on increased output
Energean, a gas producer, reported higher profits in the first half of this year on Wednesday. This was due to a strong summer demand from Israel, which accounts for more than 70%.
The company is expanding in Europe, the Middle East, and Africa. It is particularly interested in areas where gas is supported by long-term policies and coal is being replaced.
Carlyle, a private equity fund, had agreed to buy the assets of the company in Egypt and Italy for $945 million.
Energean is expecting to pay up to $200,000,000 in special dividends following the conclusion of this deal. This should be completed by the end the year.
The company reported that production in the first half of the year was up 38%, to 146 thousand barrels equivalent per day (kboepd), compared to last year. This is due to the Karish and Karish north fields located in Israel.
The average price of gas realised by the company fell 12%, to $4.6 per 1,000 cubic feet (mcf), for the period.
Energean has said that its daily production in Israel is not affected by current geopolitical events.
The group has lowered its production outlook for the year from 155-175 Kboepd to 155-165 Kboepd to reflect the performance of Israel to date and the expected ramp-up of full production at Cassiopea off Italy.
Cassiopea began operations in Italy in August 2024. The company stated that the remaining three wells, along with their associated facilities, are expected to come online in the next few months. They will be tested, commissioned and brought on-line.
Peel Hunt analyst Werner Riding said, "On first glance these results appear to be reassuring in light of the challenging macro- and political background."
Energean shares fell 0.2% to 884p at 0737 GMT.
Energean plans to double production over the next few years. This will be achieved primarily by developing new prospects, such as the Katlan field, in Israel.
In July, the company announced that it will invest approximately $1.2 billion in developing the Katlan Project off Israel. Gas production is expected to begin in the first half 2027.
Energean's profit after taxes for the six months ended June 30 was $89 million or 48 cents a share. This compares to $70 million or 39 cents a share last year. (Reporting and editing by Rashmi Aich in Bengaluru, Jane Merriman and Arunima Kumar)
(source: Reuters)
