Ithaca Energy Plc (LON:ITH) has announced its unaudited financial results for the six months ended 30 June 2025.
Key H1 2025 highlights- Strong production and adjusted EBITDAX supporting investment in value-accretive growth and shareholder distributions:
· Materially transformed business delivering consistently robust performance:
– Significant improvements in safety and environmental performance, with >50% reduction in incident frequency and emissions
– H1 2025 average production of 123.6 kboe/d (H1 2024: 53.0 kboe/d)
– Adjusted H1 2025 EBITDAX over $1.1 billion (H1 2024: $533.0 million)
– Material reduction in opex per barrel to $17.5/boe in H1 2025 from $27.3/boe in H1 2024
– Low pro forma leverage position of 0.32x with available liquidity of over $1.2 bn
– Additional 9 mmboe of oil hedges added in Q2 providing material cash flow protection
· Continuing to deliver highly attractive shareholder returns
– First interim 2025 dividend of $167 million declared today, representing dividend per share of $0.101, supporting the reaffirmation of the Group’s FY 2025 dividend target of $500 million
– Expected acceleration of second interim 2025 dividend to December 2025, of $133 million, due to strong year-to-date performance and cash generation totalling $500 million of cash distributions in 2025
· Increased and targeted organic investment supporting production upside, reliability enhancement and efficiency focus alongside incremental investment in high return wells in the year
· Significant progress towards unlocking long-term value creation in West of Shetland area through targeted value-led investment:
– Rosebank project execution progressing on all work fronts. Full project update to be completed Q4 2025
– 18-month Cambo licence extension and completion of technical refresh provides a clear pathway towards FID and potential farm-down
– Tornado gas discovery prospect advancing through FEED towards FID, with NSTA no-objection to the concept secured
· Execution of UKCS growth strategy, increasing interests in high-quality, well-understood assets:
– Japex UK E&P acquisition completed 7 July 2025 demonstrating deal execution capability
– Acquisition of a further 46.25% stake in the Cygnus Field from Spirit Energy expected to complete 1 October 2025, following receipt of NSTA approval
FY 2025: An improving outlook driven by excellent delivery
· Strong first half performance and ongoing investment supporting upgrade to FY guidance:
– FY production guidance range upgraded to 119-125 kboe/d from 109-119 kboe/d, (representing a 8 kboe/d increase at the mid-point)
– Strong cost control with FY net operating cost guidance range reduced to $790-840 million (representing an Opex per barrel cost of between $17/boe to $19/boe) with cost reductions outweighing FX headwinds
– Modest increase in net producing asset cost capital guidance to $630-670 million reflecting non-cash FX headwinds and decisions to increase investments in support of production upside potential in the J Area by sanctioning additional well activity
– Net Rosebank capital cost guidance range increased to $230-270 million with additional spend towards end of 2025 as the Floating Production Storage and Offloading vessel (FPSO) nears yard work completion and targeted sail-away date and reflecting non-cash FX headwinds
Ithaca Energy Executive Chairman, Yaniv Friedman, commented: “Our first-half results demonstrate the strength and resilience of our transformed business. With production more than doubling year-on-year and adjusted EBITDAX exceeding $1.1 billion, we are delivering on our strategy of disciplined investment and operational excellence. As we adjust our guidance upwards for the remainder of the year, we continue to remain focused on maximising long-term value creation and returns for our shareholders. The declaration of a $167 million interim dividend and expected acceleration of a second interim dividend of $133 million to December 2025, underscores our commitment to delivering sustainable value to shareholders, reaffirming our full-year dividend target of $500 million. Strategic progress across our West of Shetland developments and recent acquisitions executing on our UKCS growth strategy, further position us for long-term growth.”
| Financial key performance indicators (KPIs) | ||
| H1 2025 | H1 2024 | |
| Adjusted EBITDAX1 ($m) | 1,117.0 | 533.0 |
| Profit before tax ($m) | 513.4 | 189.4 |
| Adjusted net income1 ($m) | 128.7 | 124.7 |
| (Loss)/profit for the period2 ($m) | (217.5) | 105.7 |
| Basic EPS (cents) | (13.2) | 10.5 |
| Net cash flow from operating activities ($m) | 1,004.6 | 559.8 |
| Unit operating expenditure1 ($/boe) | 17.5 | 27.3 |
| H1 2025 | Q4 2024 | |
| Available liquidity 1 ($m) | 1,228.6 | 1,015.1 |
| Adjusted net debt 1 ($m) | 671.4 | 884.9 |
| Pro forma leverage ratio 1 | 0.32x | 0.45x |
| Other KPIs | ||
| H1 2025 | H1 2024 | |
| Total production (boe/d) | 123,566 | 53,046 |
| Tier 1 & Tier 2 process safety events | 0 | 0 |
| Serious injury and fatality frequency | 0 | 0 |
1 Non-GAAP measure as set out on pages 48 to 51
2 Reflects one-off, non-cash deferred tax charge in Q1 2025 of $327.6 million due to the two-year extension of EPL to 31 March 2030
H1 2025 Strategic Highlights
Successfully executing the Group’s organic and inorganic value-orientated growth strategy, with a clear vision for further scale, stability and strength as we seek to maximise long-term value creation and returns for our shareholders.
Organic growth: Investing to sustain and optimise production
· Significant ongoing investment and well activity at Captain in H1 with progression of the 13th drilling campaign, including a work over on well C47, and successful drilling, completion and production start-up of wells C73 and C74. Enhanced Oil Recovery (EOR) phase II well response remains in line with expectations
· The Safe Caledonia flotel arrived at the Captain field in June to support backlog reduction and optimisation activities throughout the remainder of 2025
· Cygnus infill well campaign commenced with the first of the two firm wells spud in H1 2025, with first production from the first well expected in October, and a second well scheduled for Q4
· Value-led investment in J Area focused on high-return opportunities with additional well activity sanctioned at Judy East Flank and investment in Joanne well stimulation activity, based on continued strong performance in the area
· Final planned Seagull well currently being completed, with first production expected in Q4
· Summer shutdown activity progressing well to plan, with significant activity delivered in line with schedule during Q3
Organic Growth: Unlocking value creation opportunities in the West of Shetland area
· Improved regulatory and fiscal clarity:
– Publication of the UK Government’s Scope 3 Environmental Impact Assessment guidance in June 2025 welcomed, supporting the reopening of OPREDs consenting process and unlocking the Group’s high-value, long-life resource base, particularly in the West of Shetland, that will support UK energy security for decades to come
– Active participant in the UK Government’s EPL successor regime consultation that seeks to establish an oil and gas price mechanism for future price shock scenarios, with outcome of consultation expected in Q4 2025
· Rosebank development project activity ramping up in preparation for key project milestones towards first production timeline of 2026/27
– Additional 2025 capital spend forecast on FPSO modifications to maintain sail-away date
– Critical subsea installation scopes well-advanced with drilling scheduled for Q1 2026
– Application for refreshed consents proceeding in tandem, with OPRED formally requesting a revised submission following the publication of the Scope 3 assessment guidelines
· Cambo licence extended by 18 months from 31 March 2026 to 30 September 2027, confirming the regulator’s trust in the Group’s ability to continue progressing the project towards the licence milestones
· Cambo project technical refresh delivered in H1 2025, leveraging the technical capabilities of Eni to challenge and optimise the development concept, with the aim of maximising project value and mitigating risks. During H2, the Field Development Plan and Environmental Statement will be updated to reflect the project optimisations, supporting the progression towards a Final Investment Decision (FID) and potential farm-down, subject to fiscal and regulatory clarity
· Significant progression towards unlocking material organic growth opportunities across the Group’s resource base in H1:
– NSTA approval of the Fotla and Tornado Development Concepts
– Environmental Statements submission for both Fotla and Tornado projects is the next key milestone
Inorganic growth: Pursuing consolidation strategy in UKCS, increasing stakes in key assets
· M&A activity in H1 aligned with Group’s strategy to pursue low-risk consolidation in its core UKCS basin. The bolt-on acquisitions have increased the Group’s ownership stakes in key assets across the portfolio, at attractive investment metrics, where the Group believes additional upside potential exists
· The Group continues to maintain an active but patient pursuit of M&A opportunities both in the UKCS and globally, in line with its focused international expansion strategy, as set out at the Capital Markets Day earlier this year
Acquisition of JUK completed 7 July 2025 demonstrating execution capabilities:
– Increased stake in well-understood, high-quality, long-life Seagull field from 35% to 50%, adding pro forma 2025 production of approximately 4 – 4.5 kboe/d
– Transaction includes JUK’s material tax losses of approximately $215 million in both ring fence corporation tax (RFCT) and supplementary charge (SC) as well as approximately $105 million EPL losses as at the effective date of 1 January 2024, reflecting JUK’s material investment in the field
– Completion payment of $136 million reflecting economic effective date of 1 January 2024 and completion adjustments (Transaction consideration of US$193 million)
– Acquisition equates to a valuation of ~$10/boe (excluding tax losses)
Acquisition of 46.25% stake in the Group’s operated Cygnus Field from Spirit Energy:
– Increased stake in high-margin, low-emission operated Cygnus gas field, adding additional gas production to the portfolio
– Attractive investment metrics achieved, equating to a valuation of < $7/boe per 2P Reserves (circa $10/boe including decommissioning costs net of tax)
– Ongoing infill drilling in area, with further upside potential
– Adding circa 12.5 – 13.5 kboe/d net production on a pro forma basis, and circa 4 kboe/d net annualised increase assuming a targeted completion date of 1 October 2025, with NSTA approval received
Value creation and shareholder returns: Continued delivery of dividend commitments
· First interim 2025 dividend of $167 million declared today and payable in September, representing a dividend per share of $0.101
· Expected acceleration of second interim 2025 dividend to December 2025 of $133 million, due to strong year-to-date performance and cash generation
· Reaffirming dividend policy for 2025, of 30% post-tax cash flow from operations (CFFO), at the top end of our capital allocation policy range of 15-30% post-tax CFFO, with today’s dividend announcement supporting the Group’s FY 2025 dividend target of $500 million
H1 2025 Operational Update
· Consistently improved performance across all operational metrics
· Strong process safety performance with zero Tier 1 or Tier 2 events recorded in the first half of the year and a material reduction in Total Recordable Injury rate (TRIR) of over 50% from 2024, with 1.14 cases per million hours from 2.6 in H1 2024
· Significant reduction in Greenhouse Gas (GHG) emission intensity of the Group’s portfolio, bringing our gross operated emissions intensity to 16.9 kgCO2e/boe from 33.9 kgCO2e/boe in H1 2024
· Average H1 production of 123.6 kboe/d (H1 2024: 53.0 kboe/d), reflecting record quarterly production in Q1, the operating capacity of the Group’s diversified and enlarged portfolio, and consistently strong operational performance
– H1 2025 production split 59% liquids, 41% gas and 40% operated, 60% non-operated
· Improved operational performance highlighted by material improvement in production efficiency in H1 across the Group’s operated asset base (consistently achieving higher than 2024 average of 80% and 2024 industry average of 75%)
· H1 2025 production reflects:
– Planned summer shutdown activity commenced in June across the portfolio including Cygnus and the Greater Stella Area, ahead of significant turnaround activity in Q3
– Production efficiency consistently above basin average and 2024 actual during H1, with strong delivery at the Group’s operated Captain and Cygnus assets as well as the non-operated Elgin Franklin, J Area, Seagull, GBA, Schiehallion and Mariner assets
H1 2025 Financial Highlights
· H1 2025 adjusted EBITDAX of $1,117.0 million (H1 2024: $533.0 million), following record quarterly adjusted EBITDAX performance in Q1 of $653.2 million
· Realised prices of $71/boe for oil and $71/boe for gas before hedging results and $73/boe for oil and $71/boe for gas after hedging results (H1 2024: $87/boe for oil and $57/boe for gas before hedging results and $86/boe for oil and $92/boe for gas after hedging results)
· H1 2025 operating costs of $391.3 million (H1 2024: $263.3 million) and unit operating expenditure of $17.5/boe (H1 2024: $27.3/boe) demonstrating operational efficiencies and the high netback capability of the portfolio
· H1 2025 profit before tax of $513.4 million (H1 2024: $189.4 million)
· H1 loss for the period of $217.5 million (H1 2024: profit of $105.7 million) reflecting primarily a one-off, non-cash deferred tax charge in Q1 2025 of $327.6 million due to the two-year extension of EPL to 31 March 2030. H1 2025 adjusted net income of $128.7 million (H1 2024: $124.7 million)
· H1 2025 producing assets capex of $290 million (H1 2024: $178 million) and Rosebank capex of $130 million (H1 2024: $90 million)
· Net cash flow from operating activities of $1,004.6 million (H1 2024: $559.8 million) includes an increase in underlift during H1 of $99.1 million, substantively all of which is expected to reverse through the remainder of FY 2025
· Reduction in adjusted net debt at 30 June 2025 to $671.4 million (31 December 2024: $884.9 million)
· Pro forma leverage ratio at 30 June 2025 of 0.32x (31 December 2024: 0.45x)
· Material available liquidity at 30 June 2025 of $1,228.6 million (31 December 2024: $1,015.1 million) reflecting reduction in net debt and providing a solid financial foundation for growth with additional available accordion of over $700 million providing incremental liquidity potential of up to circa $2bn
· Material build on hedge position during Q2, with 9 million barrels of positions traded at attractive hedge prices during the higher commodity price window in June, to complement existing gas hedge book, providing strong cash flow cover in 2025 and 2026. As at 30 June 2025, the Group had 38.9 million barrels of oil equivalent (47% oil) hedged from Q3 2025 into 2027 at an average floor price of $69/bbl for oil swaps, $68/bbl for oil puts/collar floors and 99p/therm for gas swaps, and 81p/therm for gas puts/collar floors
FY 2025 Management Guidance
· Management provides the following updates to guidance ranges for full year 2025 (updated from 21 May 2025), reflecting excellent operational performance in the first half of the year and continued organic value-driven capital investment supporting production upside with increased investment in high-return wells in the year:
– FY 2025 production guidance range upgraded to 119-125 kboe/d from 109-119 kboe/d, driven by core asset production performance in H1 (acquisition production unchanged from previous guidance) and reflecting planned summer turnaround activity
– FY 2025 net operating cost guidance range reduced to $790-840 million from $780-860 million (representing an Opex per barrel cost of between $17/boe to $19/boe) with cost reductions outweighing FX headwinds
– FY 2025 net producing asset capital cost guidance range increased to $630-670 million from $580-640 million (excluding pre-FID projects and Rosebank development) reflecting non-cash FX headwinds and decisions to increase investments to support production upside potential in the J Area by sanctioning additional well activity
– FY 2025 net Rosebank project capital cost guidance range increased to $230-270 million from $190-230 million due to additional capital spend expected towards the end of 2025 as the FPSO nears yard work completion and targeted sail-away date and reflecting non-cash FX headwinds
– FY 2025 cash tax guidance increased to $270-300 million from $235-265 million mainly due to increased production and profits in newly integrated entities
· Management guidance includes the acquisition of Japex UK E&P from the completion date of 7 July (previous guidance assumed 1 July completion) and the acquisition of an additional 46.25% stake in the Cygnus gas field based on an estimated completion date for the transaction of 1 October 2025 (on the same basis as previously provided guidance)
· Management updates the Group’s expected production exit rate at the end of 2025 to circa 140 kboe/d
· Management reaffirms the dividend target of $500 million for 2025 and due to excellent operational performance anticipates being able to accelerate the timing of payments with $133 million targeted for payment in December and $200 million targeted for payment in April 2026, resulting in $500 million dividend for 2025 and $500 million cash dividend paid in 2025 including the final interim 2024 dividend of $200 million in April 2025
Webcast and Conference call
Ithaca Energy will host a virtual presentation and Q&A session for investors and analysts at 09:00 (BST) today, 20 August 2025. Details are accessible via our website.
Investors and Analysts – Webcast link
https://www.investis-live.com/ithaca-energy/6865342c1efae0000ed06921/grefc
Investors and Analysts – Conference call
Operator Assisted Dial-In:
United Kingdom (Local): +44 20 3936 2999
United Kingdom (Toll-Free): +44 800 358 1035
Global Dial-In Numbers Access Code: 841877
