26th Mar 2025 09:27
(Alliance News) - Ithaca Energy PLC on Wednesday reported a rise in profit in 2024 and reaffirmed its USD500 million dividend target for 2025, after a "transformational" year marked by the completion of its business combination with Eni Spa's UK upstream assets.
The London-based oil and gas company operating in the North Sea posted a pretax profit of USD334.3 million for 2024, up 11% from USD302.0 million in 2023, despite revenue falling to USD1.98 billion from USD2.32 billion. Ithaca said the decline was driven by lower production volumes and prices.
Cost of sales decreased 13% to USD1.14 billion from USD1.32 billion.
Impairment charges on development and production assets came down 53% to USD263.0 million from USD557.9 million.
Shares in Ithaca Energy were up 7.7% at 153.20 pence in London on Wednesday morning.
The company declared an interim dividend of 12.09 US cents per share on Wednesday, bringing total dividends for 2024 to USD500 million, or approximately 34.04 US cents per share, up from 27.55c in 2023 and in line with guidance. Earlier in the year, the board announced a special dividend of 12.09 cents per share and a first interim dividend of 9.86 cents per share.
Ithaca is targeting the same payout for 2025, reaffirming its policy to distribute 30% of post-tax cash flow to shareholders.
Production averaged 80,200 barrels of oil equivalent per day in 2024, up from 70,200 in 2023. Including Eni UK assets on a pro forma basis, 2024 production was 105,500 boepd, and Ithaca expects to produce between 105,000 and 115,000 boepd in 2025.
Ithaca said the integration of Eni UK Ltd is well advanced and highlighted its enlarged resource base of 657 million barrels of oil equivalent in 2P reserves and 2C resources. The firm also highlighted a further bolt-on acquisition announced on Tuesday, agreeing to buy Japex UK E&P Ltd to increase its stake in the Seagull field to 50%.
Chair Yaniv Friedman said the company was entering its "next era of growth" with strategic flexibility, adding that Ithaca remains committed to its value-led investment approach and capital discipline.
"2024 was a transformational year for Ithaca Energy, having made material progress across our strategic objectives creating value organically and inorganically. Our focus in 2025 will continue to be on high-grading investment across our range of growth opportunities, executing in line with our strategy as a value-led investor, to maximise long-term sustainable shareholder value through growth and distributions," Friedman said.
By Eva Castanedo, Alliance News reporter
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