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Energean shares down as oil production guidance lowered

18th May 2023 10:39

(Alliance News) - Energean PLC on Thursday saw its share price fall after lowering its full year production guidance.

Shares in the Mediterranean-focused gas exploration and production company with operations in Israel and Egypt were 7.0% lower at 1,150.00 pence in London on Thursday morning.

Meanwhile, the company reported that revenue in the first quarter climbed 69% annually.

In its latest trading statement, Energean lowered its full year production guidance to between 125,000 and 140,000 barrels of oil equivalent per day, from between 131,000 and 158,000. It said this was mainly due to Israel's revised gas production forecast to between 4.5 and 5.0 billion cubic metres, previously expected to reach up to 5.5 billion, and to a higher-than-expected flow rate decline from its NEA#6 offshore gas well in Egypt.

However Energean said it is "on track" to meet near-term targets of 200,000 barrels per day, USD2.5 billion in revenue, and earnings before interest, tax, depreciation, amortisation and exploration expense of USD1.75 billion in the second half of 2024. It also expects to complete growth projects at its Karish offshore gas field in Israel this year.

The company said production in the first quarter of 2023 more than doubled to 94,400 barrels per day compared with 36,100 for the same quarter in 2022.

Ebitdax rose 81% in the quarter to USD162.2 million from USD89.6 million a year prior. Revenue increased 69% to USD288.8 million from USD170.7 million.

Energean declared a dividend of 30 US cents per share for the quarter, unchanged from the fourth quarter of 2022.

"We are ramping up production from the Karish field and have seen four months of solid gas and liquids production in Israel...This year, Energean expects to supply a significant proportion of Israel's gas demand, Chief Executive Officer Mathios Rigas said.

"We continue to focus on our net zero stated path through continuous reductions in our carbon intensity. We are and will remain a responsible hydrocarbon producer. We are committed to being the best version of Energean we can be: provide a secure and reliable energy supply, support our communities and underwrite the transition."

By Emma Curzon, Alliance News reporter

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