18th Mar 2026 09:06
(Alliance News) - Ithaca Energy PLC on Wednesday reported a more than doubling of annual profit, as oil and gas production grew, though it guided 2026 production below its 2025 exit rate.
Ithaca Energy shares were down 5.9% to 255.50 pence early Wednesday in London. The wider FTSE 250 index was up 0.7%.
The recent rapid rise in world oil prices stalled on Wednesday, hurting all London oil stocks. Brent crude was quoted at USD102.64, up from USD101.95 late Tuesday, but it had traded as low as USD100.29 earlier on Wednesday.
London-based Ithaca produces oil and gas from North Sea fields in the UK continental shelf.
Pretax profit was USD840.3 million in 2025, up from USD334.3 million in 2024. Adjusted earnings before interest, tax, depreciation and exploration expense was USD2.03 billion, up 46% from USD1.41 billion.
The adjusted Ebitdax was in line with guidance provided by Ithaca back in February.
However, Ithaca swung to a USD84.1 million net loss from a USD153.1 million profit, due to a one-off, non-cash deferred tax charge of USD327.6 million taken in the first quarter of 2025. Adjusted net income was USD289.2 million in 2025, down from USD323.6 million in 2024.
Revenue and other income totalled USD2.95 billion, up 49% from USD1.98 billion.
Ithaca declared a third interim dividend of USD0.1209 per share for 2025. It said this is worth USD200 million in total and will be paid in April. Ithaca paid USD497.7 million in dividends in total during 2025, up 15% from USD432.7 million for 2024.
Ithaca on Tuesday also increased its dividend policy. It will target shareholder returns of 20% to 35% of post-tax cash flow from operations, up from 15% to 30% previously. This will be split equally between an interim and final dividend, compared to one-third and two-thirds previously.
For 2026, Ithaca committed to paying 30% of post-tax CFFO with a target range of USD470 million to USD520 million. It noted that it has returned USD1.4 billion to shareholders as dividend since its listing in London in November 2022.
In February, Ithaca had reported that daily production averaged 119,000 barrels of oil equivalent in 2025, up from 80,000 barrels the previous year. This was at the lower end of its guidance, which Ithaca had revised up to range from 119,000 to 125,000 barrels of oil equivalent per day.
Ithaca's 2025 exit rate was about 148,000 boepd, with peak daily production above 150,000 barrels, thanks in part to new wells at the Cygnus, Seagull and J Area prospects.
On Tuesday, Ithaca guided for output of 120,000 to 130,000 barrels of oil equivalent per day in 2026, up from its 2025 average but below the 2025 exit rate. The 2026 production guidance reflects higher installed operating capacity, Ithaca said, as well as full-year contributions from its increased stakes in the Cygnus and Seagull fields.
By Tom Waite, Alliance News editor
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