19th Nov 2025 11:48
(Alliance News) - Ithaca Energy PLC on Wednesday increased its quarterly production target and reported increased nine-month earnings, and announced a farm-in deal with Shell PLC.
The London-based oil and gas company's pretax profit for the first nine months of 2025 totalled USD668.1 million, surging from USD183.7 million the year before.
It swung to an overall loss of USD119.1 million from a USD134.7 million profit, but said this reflected a one-off non-cash deferred tax charge of USD327.6 million "due to the two-year extension of [the energy profits levy, a UK tax on oil and gas profits] to 31 March 2030". Ithaca also recorded a basic loss per share of 7.2 cents against a 13.4 cents profit.
Adjusted net income rose to USD226.9 million from USD181.9 million. Adjusted earnings before interest, taxes, depreciation, depletion, amortisation, and exploration expenses increased to USD1.50 billion from USD758.5 million
Average production for the period increased to 114,900 barrels of oil equivalent per day from 52,500 boepd, "following execution of unprecedented levels of summer shutdown activity".
Ithaca also declared a second interim dividend of 8.04 US cents. In November 2024, it declared a special dividend of 12.09 cents per share between its first and third interim payouts.
Looking ahead, Ithaca reaffirmed all guidance ranges for the full year, including targeting a total dividend of USD500 million.
Previously in August, it raised its full-year guidance to between 119,000 and 125,000 boe per day from between 109,000 and 119,000. On Wednesday the firm said it remains on track to meet the new target, albeit "with production trending to the bottom end of the range".
Ithaca also increased its production exit rate target for the fourth quarter, to approximately 145,000 boepd from 140,000 boepd.
"Our Q3 YTD results for 2025 show what a pivotal period it has been for Ithaca Energy," commented Executive Chair Yaniv Friedman. "The successful integration of Eni's UK assets and our additional M&A success is reflected in our strong operational and financial performance...We have continued to deliver on our strategy of disciplined investment, operational excellence, and targeted growth across our core assets, further strengthening our position as the leading energy company in the UK North Sea, all while delivering material improvements in our HSE performance."
He added: "At the same time, we continue to deliver on our commitment for shareholder returns...As we approach the end of a landmark year, we focus on our ambition to drive long-term value for all stakeholders and to play a leading role in the UK's energy future."
Also on Wednesday, Ithaca announced that it has signed a farm-in agreement with Shell UK for a 50% working interest in licences P2629 and P2630. The licences are in the West of Shetland basin and contain the Tobermory gas discovery.
Ithaca said that Shell UK will continue to hold a 50% stake in the Tobermory discovery and act as the licence operator once the farm-in is complete.
"The West of Shetland represents a key basin for the group's long-term growth," Friedman said, "with the ongoing development of the Rosebank field and the continued progression of the Cambo and Tornado discoveries towards final investment decision.
"Our investment in the West of Shetland basin is critical not only to the UK's Energy Security strategy, but also in supporting thousands of highly skilled jobs and our world-class supply chain and providing significant gross value add to the UK economy."
Shares in Ithaca Energy were 0.7% lower at 232.50 pence each late on Wednesday morning in London. However, the share price has more than doubled over the last 12 months.
By Emma Curzon, Alliance News reporter
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