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Energean PLC on Thursday cut its annual production guidance after a first half disrupted by the temporary suspension of production in Israel. The London-based company has energy assets in Israel and the UK North Sea, as well as in Egypt, Italy, Croatia. Pretax profit fell 0.5% to $174.1 million in the six months to June 30 from $175.0 million a year prior. Revenue declined 7.2% to $803.8 million from $866.6 million. Energean said its financial performance was impacted by the planned shutdown for essential works for the second oil train development in March in addition to the Ministry of Energy & Infrastructure ordered suspension of production for security reasons in June, and lower brent prices. In June, received an order from the ministry to halt production. This came after Israel’s attacks on Iranian nuclear sites. Average daily production fell 5.5% to 138,000 barrels of oil equivalent per day from 146,000 boepd a year ago, while the cost of production per barrel rose 10% to $11 from $10. The temporary suspension of production contributed to net debt rising to $3.00 billion from $2.95 billion at the end of 2024, the firm noted. But Energean said despite the suspension in Israel, net profit increased during the period, and it therefore maintained its total half-year dividend at $0.60 per share. Net profit jumped to $110 million in the period from $89 million the year prior, beating Visible Alpha consensus of $101 million. Shares in Energean were up 1.2% at 905.50 pence each in London on Thursday morning. ‘Our business has remained resilient, despite the external geopolitical and market pressures, underpinned by disciplined capital management and cost control, a clear focus on long-term value creation and delivery of operational excellence,’ Chief Executive Officer Mathios Rigas said. Looking ahead, Energean said in Israel, it is focused on reliable production and sales to the domestic market which is ‘the bedrock of our cashflow’, followed by finalising export opportunities to enhance sales. In addition, it is ‘working at pace’ considering organic and inorganic options to drive growth, and ‘actively exploring all strategic options within our existing portfolio to maximise value for our shareholders.’ The company lowered production guidance to 145,000 to 155,000 boepd from 155,000 to 165,000 boepd before, as a direct result of the temporary suspension of production in Israel and a deferral of commissioning of the second oil train to late fourth quarter 2025 to avoid non-essential shut-downs during peak demand periods. It also lowered cost of production, including royalties, guidance to $560 to $600 million from $590 to $640 million. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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