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Ithaca Energy PLC on Wednesday reported a swing to a loss in the first quarter of 2025 due to a large non-cash tax charge, even as it posted record production and earnings before interest, tax, depreciation, amortisation and exploration expenses. The North Sea-focused oil and gas company said it recorded a net loss of $258.7 million in the three months to March 31, compared with a $42.7 million profit a year earlier. The decline was primarily due to a one-off deferred tax charge of $327.6 million, linked to the UK government’s decision to extend the Energy Profits Levy by two years to 2030. Despite the bottom-line hit, the company delivered strong operational performance, including record quarterly production of 127,373 barrels of oil equivalent per day, more than double the 58,699 boe/d reported in Q1 2024. Adjusted Ebitdax rose 93% to $653.2 million from $339.0 million. Profit before tax climbed to $367.2 million from $136.5 million a year prior. Operating cash flow rose to $435.3 million from $313.8 million, while net debt fell to $792.4 million from $884.9 million at the end of 2024. The company reported available liquidity of $1.1 billion at quarter-end. Production costs fell on a per-barrel basis, with unit opex dropping to $16.5 per boe from $22.9. Ithaca said this reflected the high netback capability of its enlarged portfolio following its business combination with Eni UK. The company reaffirmed its full-year 2025 guidance but raised production exit-rate expectations to around 135,000 boe/d, following recent acquisitions. In March, Ithaca agreed to buy Japex UK E&P, boosting its stake in the Seagull field. On Tuesday, it announced a further 46% acquisition in the Cygnus gas field from Spirit Energy Ltd, raising its operated interest in the asset to 85%. A third interim dividend of $200 million was paid in April, bringing total dividends for 2024 to $500 million. The company is targeting the same payout for 2025, equivalent to 30% of post-tax operating cash flow. Ithaca Energy shares were flat at 128.80 pence in London on Wednesday morning. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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