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Energean PLC on Tuesday said it rounded off 2025 with an ‘excellent fourth quarter’, with production for the year at the upper end of guidance. Energean shares fell 1.8% to 889.00 pence each in London on Tuesday morning. Looking to this year, it expects output to decline amid ‘planned shutdowns’ at the Katlan asset in Israel. It also noted it will be a year of ‘elevated capital expenditure’. In addition, it warned of an impairment to be booked for its 2025 earnings related to Cassiopea project in offshore Sicily. The natural gas development and production firm, with assets in Israel, Egypt, Italy, Croatia, Greece, and the UK, said fourth quarter output improved 12% on-year to average 162,000 barrels of oil equivalent per day. It meant full-year output averaged 154,000 boepd, at the upper end of its guidance, and nudging up from 153,000 in 2024. Its outlook range was 145,000 to 155,000. Sales revenue for the year declined 3.5% to $1.72 billion from $1.78 billion. Adjusted earnings before interest, tax, depreciation, and amortisation, and also before exploration expenses, fell 4.3% to $1.11 billion from $1.16 billion. The realised weighted average liquid price was 17% lower at $59.3 a barrel last year, compared to $71.2 in 2024. Chief Executive Officer Mathios Rigas said: ‘Combined with strong operational performance over the summer and our continued discipline on costs, this enabled us to maintain sales revenue and adjusted Ebitdax in line with last year despite geopolitical challenges and macroeconomic pressures, including lower year-on-year oil prices. The business continues to remain resilient through our long-term gas contracts, with over $20 billion contracted over the next two decades. ‘This will be a pivotal year for Energean, as we pursue all options to optimise our core asset base and grow the business through disciplined and strategic investment, both within our existing asset base and via selective inorganic opportunities.’ For 2026, it expects output to average between 140,000 and 150,000 boepd. Energean noted ‘planned shutdowns required for the Katlan project’, before first gas in the second half of 2027. Over in Egypt, it sees a ‘short-term natural decline ahead of new drilling activity’. Net debt, including restricted cash, in 2025 increased 10% to $3.26 billion. Energean expects net debt between $3.20 billion and $3.30 billion for 2026, ‘reflecting a year of elevated capital expenditure’. Total development and production capital expenditure of $740 million to $800 million is expected for 2026. A multi-well exploration campaign is sized up, starting with East Bir El-Nus in onshore Egypt and then Block 2, offshore Greece. ‘The group is also focused on maturing other high-potential exploration targets in Egypt and Israel,’ Energean said, adding that it is also ‘evaluating new M&A opportunities, particularly in West Africa’. For 2025, Energean estimated a roughly €300 million non-cash impairment related to Cassiopea, in which it has a 40% stake. Eni Spa owns 60% of the asset. Energean said 2P reserves at the asset amounted to 31 million barrels of oil equivalent at the end of 2024, representing 3% of its net total. This is expected to be lowered to 3-4 million boe as at the end of 2025 on a performance that was lower than initial expectations. ‘The group therefore expects to record a non-cash impairment in its full year 2025 financial accounts related to Cassiopea, preliminarily estimated at around €300 million, subject to further review,’ Energean added. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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