Ithaca Energy's profit drops due to lower natgas costs and impairment charges

Ithaca Energy, a North Sea oil-and-gas company, reported on Thursday a lower net income for the first six months of the year, due to impairment charges, lower output and a drop in natural gas prices.

Ithaca has lowered its production forecast for the full year to between 76 and 81 thousand barrels equivalent per day (kboepd) from earlier estimates of 80 to 87kboepd.

The production fell from 75.8 to 53 kboepd during the six-month period ending June 30.

The company reported that its output had been affected by operational issues in its infrastructure and non-operated joint enterprises, as well as planned shutdowns within its operated portfolio.

Ithaca reported that the realised gas price fell to $92 per barrel equivalent (boe), after hedging last year's $125 boe.

Ithaca's net income for the first six months was $105.7 million, down from last year's $159,6 million. ($1 = 0.7643 pounds) (Reporting by Arunima Kumar in Bengaluru; Editing by Subhranshu Sahu)

(source: Reuters)