Ithaca Energy plc (LON:ITH), a leading UK independent production and growth company, today announces its audited full year results for the year ended 31 December 2025.
2025 Highlights:
· Material UKCS resource holders with 2P reserves and 2C resources of 658 mmboe and attractive 2P reserves replacement ratio of over 130%
· Excellent operational performance supported average production of 119 kboe/d and 2025 exit rate of approx. 148 kboe/d, demonstrating increased installed production capacity into 2026
· Strong financial performance with adjusted EBITDAX of $2.0bn (2024: $1.4bn), net cash flow from operations of $1.7bn (2024: $0.9bn) and free cash flow of $683.3million (2024: 260.8 million)
· Enhanced liquidity position of $1.5bn (2024: $1.0bn) providing material financial firepower to support future growth
· Successful execution across the pillars of the Group’s growth strategy, supporting value creation and attractive shareholder returns:
– Material targeted organic investment supporting increased production capacity, reliability enhancement and efficiency focus alongside incremental investment in high return wells
– Material progression of West of Shetland development strategy with Rosebank entering the final stages of development towards first production in 2026/27, and the continued maturation of Cambo and Tornado through key regulatory milestones towards final investment decisions within 12 months
– Continued execution of low-risk UKCS consolidation strategy and active and patient pursuit of international expansion strategy
· Attractive dividend distributions to shareholders of $500 million, with third interim 2025 dividend of $200 million, declared today, and payable in April 2026
· Refreshed capital allocation framework including upward revision of dividend policy, targeting shareholder returns in the range of 20-35% of post-tax CFFO, an increase from the previous range of 15-30%
Yaniv Friedman, Executive Chairman, commented: “Ithaca Energy delivered another year of excellent operational and financial performance in 2025. Our acquisitions in Seagull and Cygnus contributed accretive growth, which along with organic investment in the period, achieved an exit rate of 148 kboe/d and allowed us to enter 2026 with significantly increased production capacity.
“In the West of Shetland, we saw material project activity, including at Rosebank where we are progressing in line with our development timeline towards first production in 2026/27. We also saw significant progress on the maturation of the Cambo and Tornado projects, with all activities supporting a potential FID within 12 months.
“We maintained our strong financial position throughout the year, supported by strong cash flow generation, a disciplined hedging strategy, and a successful bond issuance and an upsizing of the RBL facility, giving us an improved liquidity position. We remain committed to delivering attractive shareholder returns and I am pleased to announce the third tranche of our 2025 dividend of $200 million, taking our total return to shareholders for FY 2025 to $500 million, in line with our stated target. Moving forward, as a stronger business, we are raising the targeted shareholder returns range from 15-30% to 20-35% post-tax CFFO, with a 30% target ranging between $470-520 million in FY 2026, reflecting the strong continued performance of our diverse asset base which also supports our material capital programme as we continue to invest in organic growth opportunities.
“We enter 2026 with considerable momentum and strength, focused on upholding our strategic, operational and financial discipline, and well positioned to pursue value-driven growth and deliver sustainable returns.”
Summary of key financial metrics
| 2025 | 2024 | ||
| Adjusted EBITDAX1 ($m) | 2,030.8 | 1,405.0 | |
| Net cash flow from operating activities ($m) | 1,745.3 | 853.3 | |
| Available liquidity1 ($m) | 1,470.1 | 1,015.1 | |
| (Loss)/profit for the year2 ($m) | (84.1) | 153.1 | |
| Adjusted net income1,2 ($m) | 289.2 | 323.6 | |
| Basic EPS (Cents) | (5.1) | 13.2 | |
| Unit operating expenditure1 ($/boe) | 18.9 | 22.4 |
Other KPIs
| Total production (kboe/d) | 119 | 80 | |
| Tier 1 and Tier 2 process safety events | – | – | |
| Serious injury and fatality frequency | – | – | |
| Scope 1 and 2 emissions (ktCO2e) | 437.5 | 448.2 | |
| Greenhouse gas intensity (kgCO2e/boe) | 17.2 | 23.9 |
1. Non-GAAP measure as set out on pages 66 to 67.
2. A one-off, non-cash deferred tax charge of $327.6 million in Q1 2025, reflecting the substantive enactment of the two-year extension of EPL to 31 March 2030, resulted in a reported loss of $84.1 million (2024: profit of $153.1 million). Adjusted net income of $289.2 million (2024: $323.6 million) better reflects underlying performance.
