23rd Jan 2025 09:53
(Alliance News) - Energean PLC on Thursday reported an increase in revenue, helped by a "strong performance" from its core Israel operations, as it moves to complete the sale of its assets in Egypt, Italy and Croatia.
Energean is a London-based hydrocarbon exploration and production company, focused on natural gas.
The company said sales revenue rose 26% to USD1.78 billion in 2024 from USD1.42 billion in 2023. Within this, revenue from continuing operations was USD1.32 billion.
Average working interest production grew 24% to 153,000 barrels of oil equivalent per day in 2024 from 123,000 boepd in 2023. Production from continuing operations was 114,000 boepd, up 28% from 89,000.
Energean said the uptick reflected "strong performance from our core Israel operations".
Production in Israel surged 29% to 112,000 boepd in 2024 from 87,000 boepd in 2023, accounting for 73% of all production in 2024 and 71% in 2023.
Adjusted earnings before interest, tax, depreciation, amortisation and exploration costs rose 25% to USD1.17 billion in 2024 from USD931 million in 2023. Within this, adjusted Ebitdax from continuing operations was USD888 million in 2024.
Chief Executive Officer Mathios Rigas said: "Over the past year we have agreed more than USD4 billion in new long-term gas sales agreements in Israel, including the new USD2 billion binding terms with Dalia Energy Cos Ltd, underscoring our proven success in securing long-term contracts, bringing the total contract value close to USD20 billion. With the region's gas demand continuing to grow from increasing electricity demand and the phasing out of coal, we are well positioned to add new long-term agreements, including potential export contracts, to further grow sales. This aligns with Energean's strategy to secure long-term and reliable cash flows in Israel from high credit quality counterparties."
Energean will release 2024 results on March 20.
For 2025, the company expects a total production of 120,000 to 130,000 boepd per day. Consolidated net debt is expected to reduce by between 1.7% and 8.4% to between USD2.70 billion and USD2.90 billion in 2025, from USD2.95 billion in 2024.
Looking ahead, CEO Rigas said: "Completion of the Carlyle transaction is a key priority for this quarter. Post-close, we will have the balance sheet strength to evaluate and execute new opportunities across a wider geographical scope, focusing on deep-value transactions that fit Energean's key business drivers: paying a reliable dividend, deleveraging, growth, and our commitment to net zero. Our core Israel assets provide an excellent foundation on which to build future growth."
Energean had announced the USD945 million disposal to Carlyle International Energy Partners back in June 2024. Energean agreed to sell its oil and gas portfolio in Egypt, Italy and Croatia to the private equity firm in order to focus on its gas fields in Israel and Morocco.
Energean shares rose 2.0% to 1,043.00 pence each on Thursday morning in London.
By Tom Budszus, Alliance News slot editor
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