21st May 2025 11:10
(Alliance News) - Ithaca Energy PLC on Wednesday reported a swing to a loss in the first quarter of 2025 due to a large non-cash tax charge, even as it posted record production and earnings before interest, tax, depreciation, amortisation and exploration expenses.
The North Sea-focused oil and gas company said it recorded a net loss of USD258.7 million in the three months to March 31, compared with a USD42.7 million profit a year earlier. The decline was primarily due to a one-off deferred tax charge of USD327.6 million, linked to the UK government's decision to extend the Energy Profits Levy by two years to 2030.
Despite the bottom-line hit, the company delivered strong operational performance, including record quarterly production of 127,373 barrels of oil equivalent per day, more than double the 58,699 boe/d reported in Q1 2024. Adjusted Ebitdax rose 93% to USD653.2 million from USD339.0 million.
Profit before tax climbed to USD367.2 million from USD136.5 million a year prior.
Operating cash flow rose to USD435.3 million from USD313.8 million, while net debt fell to USD792.4 million from USD884.9 million at the end of 2024. The company reported available liquidity of USD1.1 billion at quarter-end.
Production costs fell on a per-barrel basis, with unit opex dropping to USD16.5 per boe from USD22.9. Ithaca said this reflected the high netback capability of its enlarged portfolio following its business combination with Eni UK.
The company reaffirmed its full-year 2025 guidance but raised production exit-rate expectations to around 135,000 boe/d, following recent acquisitions. In March, Ithaca agreed to buy Japex UK E&P, boosting its stake in the Seagull field. On Tuesday, it announced a further 46% acquisition in the Cygnus gas field from Spirit Energy Ltd, raising its operated interest in the asset to 85%.
A third interim dividend of USD200 million was paid in April, bringing total dividends for 2024 to USD500 million. The company is targeting the same payout for 2025, equivalent to 30% of post-tax operating cash flow.
Ithaca Energy shares were flat at 128.80 pence in London on Wednesday morning.
By Eva Castanedo, Alliance News reporter
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