19th Jan 2023 10:15
(Alliance News) - Energean PLC on Thursday said it remained focus on continued operational growth, after celebrating a "landmark year" on production developments in the Eastern Mediterranean.
Energean is a London-headquartered hydrocarbon exploration and production company, with a focus on natural gas. It currently operates in Israel, Italy, Egypt, Greece, the UK, Croatia, and Montenegro.
For the year ended December 31, 2022, the company expected revenue of USD736.7 million, up 48% from USD497.0 million in 2021.
Earnings before interest, tax, depreciation, amortisation, and exploration expenses are also expected to rise, up 97% to USD418.5 million from USD212.1 million a year prior.
Reflecting on 2022, Energean highlighted progress at the Karish project, which was brought onstream in October, and confirmed to have "excellent reservoir deliverability".
Karish is the largest licence of Energean's three flagship development assets, which also include Karish North and the Tanin Field. Located offshore of Israel, the Karish mainfield was the first asset to be developed on the basis of its size and prospective yield.
Looking ahead, Energean said it will continue the ramp-up of Karish to an initial capacity of 6.5 billion cubic metres of natural gas per year. Commissioning of the site's floating production storage offloading unit, installed 90 kilometres offshore, is expected to complete in February 2023.
Total sales of gas in 2023 are expected to be in the range of 4.5 and 5.5 billion cubic metres of natural gas.
In June 2022, Energean's work at Karish was criticised by various human rights groups, including the Palestinian Boycott, Sanctions and Divestment Movement, for its partnership with Israel and provocation of conflict with Lebanon, who also claimed rights to the area.
Later in October, the US State Department Energy Advisor, Amos Hochstein, brokered a maritime agreement between Israel and Lebanon to end their contentious territorial dispute over a gas field in the Mediterranean Sea.
The former secured Karish, while the latter assumed rights to Qana, another prospective gas field in the area. Israeli Prime Minister Yair Lapid hailed the deal as a diplomatic achievement, while Lebanese President Michael Aoun was keen to emphasise it was simply "technical work that has no political implication".
Nevertheless optimistic, Energean plans to expand further in Israel over 2023.
The company's development concept for the Olympus area will be communicated to shareholders in the first half, with various commercial and technical solutions already under consideration to identify the development concept that will deliver the most value.
"2022 was a landmark year for Energean. We commenced production from the only FPSO in the strategically vital Eastern Mediterranean region; commenced payment of dividends to our shareholders; and we successfully discovered and de-risked new natural gas resources adjacent to our infrastructure, providing significant potential upside and export optionality. We are proud to have helped to underwrite Israeli and regional energy security and promote prosperity," said Chief Executive Officer Mathios Rigas.
Energean declared a quarterly dividend of USD0.30 per share, making a total of USD0.60 per share returned to shareholders in 2022. Group cash as of December 31 was USD498.0 million, while total liquidity was USD719.0 million.
"In an uncertain world, we hope governments understand the value of enhanced domestic and regional energy production, value that is unlocked through long-term investment. We hope that the intelligent policy we have seen in Israel and Egypt can be replicated across the region, continuing the investment that will unlock the strategic value in the subsurface," Rigas added.
Energean shares were trading 3.3% lower at 1,304.00 pence each in London on Thursday morning.
https://www.bbc.co.uk/news/world-middle-east-63414872
By Holly Beveridge; Alliance News reporter
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