REG - Energean PLC - 2024 Full Year Results
20/03/2025 07:15
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RNS Number : 4262B Energean PLC 20 March 2025
Energean plc
("Energean" or the "Company")
2024 Full Year Results
London, 20 March 2025 - Energean plc (LSE: ENOG, TASE: אנאג) is pleased to
announce its audited full-year results for the year ended 31 December 2024
("FY 2024").
Mathios Rigas, Chief Executive Officer of Energean, commented:
"During 2024, we have continued our growth trajectory with FY 2024 Group
production rising by 24% to 153 kboed, of which 112 kboed came from our
flagship Karish and Karish North fields in Israel. Despite the geopolitical
challenges in the region during the year, we operated continuously, sustaining
99% uptime 1 at the Energean Power FPSO.
"We continue to develop and optimise our assets. We took Final Investment
Decision ("FID") on Katlan, which remains on track for first gas in H1 2027;
commissioning of the second oil train is ongoing and is scheduled to complete
in Q2 2025, this will increase the liquids production capacity of the FPSO;
and the Ministry of Energy confirmed the Drakon (License 31) and Hercules
(License 23) discoveries, setting the foundations for continued growth in
Israel. In Greece, our regionally unique Prinos carbon storage project has
been approved for around EUR 270 million of funding from the EU's Recovery and
Resilience ("RRF") and Connecting Europe Facilities ("CEF"). In the UK, we
took over operatorship to take control of the current decommissioning
operations.
"As noted in our 17 March 2025 announcement, Carlyle has not yet obtained
certain regulatory approvals for the Transaction 2 per the terms of the SPA.
These are high-quality, diversified, cash flow generating assets with stable
underlying production in Egypt and Italy, with production growth from the
start-up of Cassiopea and Location B.
"We are an operator in eight countries and through a focused but diversified
East Mediterranean oil and gas portfolio we have a solid foundation that
underpins our continuing growth trajectory, that started from around 2 mmboe
in Greece in 2007 and has grown to 1.1 bnboe of 2P reserves in 2024, with ~20
year 3 reserves life.
"Operational growth was matched by strong financial performance, with Group
revenues of $1,779 million and adjusted EBITDAX of $1,162 million up 25% and
25% year-on-year. This has underpinned our current dividend programme that has
so far returned $595 million 4 to shareholders and will continue regardless
of the Carlyle Transaction."
"Our commercial strategy is based on secure and predictable cashflows from
high-credit-quality gas buyers in Israel. We have secured over 20 long-term
gas sales agreements, with close to $20 billion in contracted revenues over a
20-year period. This underpins our confidence in our future financial
position, leverage reduction plan and dividend programme.
"We remain committed to ESG leadership, believing it makes us a more focused
and successful business. Our Group emissions intensity decreased by 10%
year-on-year, now reaching 87% below our original 2019 baseline to 8.4
kgCO2e/boe.
"As sovereign states make energy security and affordability a top priority,
the oil and gas industry is repositioning towards new growth. Our years of
focus on operational excellence in development and production means we are
very well placed to take advantage of a new era of oil and gas investment. We
are confident that our operating capabilities and track record in deep water
offshore project delivery is unique in the independent E&P sector. This
ability allows us to target multiple new opportunities in the wider EMEA
region that will continue the growth trajectory of Energean; we are and will
always be disciplined in our approach, aligned with shareholders."
"I want to thank the entire team who have worked with dedication against a
challenging regional backdrop through 2024 and onwards. Working as a team,
Energean will continue to grow through providing secure and reliably produced
energy, meeting the needs of the societies that host our operations, wherever
they may be."
Operational Highlights
· Strong 2024 Group and continuing operations 5 production:
o FY 2024 production of 153 kboed (83% gas), a 24% increase year-on-year
(FY23: 123 kboed). Production from the continuing operations for the period
was 114 kboed (85% gas), a 28% increase year-on-year (FY23: 89 kboed).
o In Israel, FPSO uptime (excluding planned shutdowns) was 99%(( 6 )) for
the 12-months to 31 December 2024.
· Continuing operations year-end 2P reserves of 911 mmboe, stable
year-on-year before produced 2024 volumes and demonstrating material reserves
life of >20 years(( 7 )). Group year-end 2P reserves were 1,058 mmboe.
· Katlan (Israel) development progressing on schedule, with first
gas on track for H1 2027:
o Post-period end, a drilling contract was signed with Saipem SpA for the
Athena and Zeus development wells plus two optional wells.
· Prinos CO2 project allocated close to EUR 120 million from the
EU's Connecting Europe Facility in January 2025, bringing the total secured
grants up to around EUR 270 million.
· Group Scope 1 and 2 emissions intensity of 8.4 kgCO2e/boe, a 10%
reduction (FY 2023: 9.3 kgCO2e/boe). Scope 1 and 2 emissions intensity for the
continuing operations was 7.0 kgCO2e/boe (FY 2023: 6.3 kgCO2e/boe).
Financial Highlights
· Strong financial performance, underpinned by core Israel
operations.
o 2024 Group sales and other revenues of $1,779 million, representing a 25%
increase (2023: $1,420 million). Continuing operations sales and other
revenues was $1,315 million, representing a 34% increase (2023: $978 million).
o 2024 Group adjusted EBITDAX of $1,162 million, representing a 25% increase
(2023: $931 million). Continuing operations adjusted EBITDAX was $885 million,
representing a 33% increase (2023: $667 million).
o 2024 Group profit after tax of $188 million up 2% year-on-year (2023: $185
million), but impacted by $241 million impairment charge, both in relation to
exploration in Egypt (Orion X1), Morocco, and Greece (Ioannina), as well as
oil and gas assets in Greece (Prinos/Epsilon; see Operational Update section
for more details). Continuing operations profit after tax was $116 million,
representing a 14% increase (2023: $102 million).
· Group leverage (net debt/adjusted EBITDAX) continued to decrease
to 2.5x (FY 2023: 3x):
o Group cash as of 31 December 2024 was $321 million, including restricted
amounts of $85 million, and total liquidity was $446 million. This includes
cash for the continuing operations of $268 million, including restricted
amounts of $85 million, and total liquidity of $393 million.
Commercial Highlights
· Q4 2024 dividend of 30 US$cents/share declared on 27 February
2025 and scheduled to be paid on 31 March 2025(( 8 )).
o A total of 330 US$cents/share ($595 million), including the declared Q4
2024 dividend, returned to shareholders since payments began.
· Post-period end:
o Binding terms for additional gas sales signed in January 2025, adding over
$2 billion over the life of the contract in line with the Group's strategy
to secure long-term reliable cash flows, and bringing the total contracted
revenues over a 20-year period to close to $20 billion.
o $750 million 10-year senior-secured term loan signed in February 2025,
which is available to refinance the $625 million 2026 Energean Israel Notes
and to provide additional liquidity for the Katlan development.
o $300 million Revolving Credit Facility refinanced and extended to
September 2028 9 .
Carlyle Transaction Update
· Energean announced in its January Trading Statement &
Operational Update that it expected to complete the strategic sale of the
Egypt, Italy and Croatia portfolio ("Transaction") to an entity controlled by
Carlyle International Energy Partners in Q1 2025, subject to customary
regulatory approvals. As noted on 17 March 2025, there is a significant risk
that the outstanding conditions precedent will not be satisfied by Carlyle (or
waived) by the relevant long stop date (20 March 2025) and that, therefore,
(absent an extension being agreed) the Transaction may be terminated in
accordance with binding sale and purchase agreement signed on 19 June 2024
("SPA").
· Energean remains committed to the Transaction and to maximising
returns for shareholders including via its ongoing dividend programme - with
or without the disposal.
· We remain 100% confident in these high-quality and cash flow
generating assets which currently provide diversification and scale to the
Group.
Outlook and Strategy
· All 2025 continuing operations guidance re-iterated:
o End-February 2025 production for the continuing operations was 115 kboed,
in line with production guidance of 120-130 kboed which is second half
weighted. End-February 2025 production for the Group was 160 kboed.
· Ongoing dividend programme expected to continue 10 , with the new
dividend policy to be announced once the Transaction is either completed or
terminated.
· Evaluating growth opportunities across the EMEA region with
continued capital discipline:
o Where we remain focused on our core Mediterranean area, while also
recognising growth opportunities in the wider EMEA region where we see
significant potential for experienced operators like Energean to commercialise
gas assets and;
o That are dividend accretive, meet Energean's deleveraging targets, achieve
its growth objectives and contribute to the Group's Net Zero target.
Financial Summary
FY 2024 FY 2023 Energean Increase / (Decrease) FY 2024 FY 2023 continuing operations Increase / (Decrease)
Energean Group % Continuing operations %
Group
Average working interest production (kboed) 153 123 24% 114 89 28%
Sales and other revenue ($m) 1,779 1,420 25% 1,315 978 34%
Cash Cost of Production ($/boe) 10.0 10.6 (6%) 9.4 9.5 (1%)
Adjusted EBITDAX 11 ($m) 1,162 931 25% 885 667 33%
Profit after tax ($m) 188 185 2% 116 102 14%
Cash flow from operating activities ($m) 1,122 656 71% 916 578 58%
Development and production expenditure ($m) 616 487 26% 336 184 83%
Exploration expenditure ($m) 117 57 105% 72 29 148%
Decommissioning expenditure ($m) 44 19 128% 13 9 44%
31 December 2024 31 December 2023
Energean Group Energean Group
Dividends ($m) 220 214
Cash and cash equivalents and restricted cash ($m) 321 372
Net Debt including restricted cash ($m) 2,949 2,849
Leverage (Net Debt / Adjusted EBITDAX) 2.5x 3x
Conference Call
A webcast will be held today at 08:30 GMT / 10:30 Israel Time.
Webcast:
https://www.lsegissuerservices.com/spark-insights/EnergeanOilGas/events/ec4f76c8-c2c1-4c09-96d6-47aa74090f49
(https://www.lsegissuerservices.com/spark-insights/EnergeanOilGas/events/ec4f76c8-c2c1-4c09-96d6-47aa74090f49)
Conference call registration: https://registrations.events/direct/LON861629
(https://registrations.events/direct/LON861629)
(Please note, once you register for the conference call line you will receive
your unique dial-in details and passcode.)
The presentation slides will be made available on the website shortly at
www.energean.com (http://www.energean.com)
Enquiries
For capital markets: ir@energean.com (mailto:ir@energean.com)
Kyrah McKenzie, Investor Relations Manager Tel: +44 (0) 7921 210 862
For media: pblewer@energean.com (mailto:pblewer@energean.com)
Paddy Blewer, Corporate Communications Director & Head of CSR Tel: +44 (0) 7765 250 857
Operational Review
HSE
In 2024, Energean delivered another strong HSE record with zero serious
injuries recorded. At the Group level, the Loss Time Injury Frequency ("LTIF")
Rate was 0.34 (2023: 0.47) and the Total Recordable Incident Rate ("TRIR") was
0.52 (2023: 1.09). For continuing operations, the LTIF was 0.00 (2023: 0.95)
and the TRIR was 0.00 (2023: 1.89).
2024 2023 % Increase / (Decrease)
LTIF - Continuing operations 0.00 0.95 (100%)
LTIF - Group 0.34 0.47 (28%)
TRIR - Continuing operations 0.00 1.89 (100%)
TRIR - Group 0.52 1.09 (52%)
Reserves
Group year-end 2024 working interest 2P reserves were 1,058 mmboe, stable
year-on-year before 2024 production volumes (56 mmboe). This primarily
reflects additions in Egypt, Italy and Greece. Continuing operations year-end
2024 2P reserves were 911 mmboe, stable year-on-year before 2024 production
volumes (42 mmboe) and demonstrating material reserves life of >20
years 12 .
2024 2P Reserves 2024 Production 2023 2P Reserves % Increase / (Decrease) % Increase / (Decrease) Before 2024 Production
mmboe (% gas) mmboe (% gas) mmboe (% gas) After 2024 Production
Israel 864 (89%) 41 (87%) 926 (89%) (7%) (2%)
Europe 47 (3%) 1 (3%) 39 (4%) 22% 23%
Continuing operations 911 (85%) 42 (85%) 964 (86%) (5%) (1%)
Disposal Group 147 (67%) 15 (75%) 151 (70%) (3%) 7%
Total 1,058 (82%) 56 (83%) 1,115 (83%) (5%) 0%
This table may not cast due to rounding.
Production and Operational Update
Group working interest production averaged 153 kboe/d in 2024 (2023: 123
kboe/d), with the Karish and Karish North fields in Israel contributing over
70% of total output. The start up of Karish North and the completion of the
second gas export riser in Israel, coupled with a full year of production from
NEA/NI and the start-up of production from NAQPII#2 and Location B in Egypt
and the start up of Cassiopea in Italy, resulted in a 24% year-on-year
increase in Group production.
Production from the continuing operations averaged 114 Kboe/d in 2024 (2023:
89 Kboe/d).
2024 2023 % Increase / (Decrease)
kboed (% gas) kboed (% gas)
Israel 112 (87%) 87 (89%) 29%
Europe 1.8 (3%) 1.7 (3%) 6%
Continuing operations 114 (85%) 89 (87%) 28%
Disposal Group 40 (75%) 34 (73%) 18%
Total 153 (83%) 123 (83%) 24%
This table may not cast due to rounding.
Israel
Karish and Karish North
In February 2024, the Karish North-1 well (W.I. 100%) was brought online and
the second gas export riser was commissioned, enabling utilisation of the
FPSO's maximum gas capacity. The Energean Power FPSO now has four production
wells in operation, increasing well stock redundancy and flexibility to meet
the demand requirements of Energean's gas buyers.
Production from Israel averaged 112 kboed in 2024, up 29% year-on-year. FPSO
uptime 13 (excluding planned shutdowns) averaged 99% for the 12-months to 31
December 2024.
Day-to-day production has not been impacted as a result of the security
situation in Israel during 2024. It did however result in a one-year delay for
the installation of the second oil train, which was safely lifted and
installed in Q4 2024. Commissioning of the module is expected to complete in
Q2 2025, which will result in an increase in liquids production capacity.
Katlan
Energean discovered the Athena and Zeus fields as part of its 2022 drilling
campaign. D&M has certified that these two fields as well as the proximate
Hera accumulation have total 2P reserves of 32 bcm. The wider Katlan area also
contain 37 bcm of de-risked prospective resources, which Energean expects to
develop through future phases.
In July 2024, Energean took FID on the Katlan development. The Katlan area
will be developed in a phased approach through a subsea tieback to the
existing Energean Power FPSO. The development will extend the production
plateau from the FPSO with volumes that do not incur seller royalties or carry
export restrictions. Production will underpin Energean's existing gas sales
agreements plus target international markets. First gas is planned for H1
2027.
Capital expenditure, as per Energean's Final Investment Decision announcement
on 23 July 2024, is expected to be approximately US$1.2 billion, which
includes: (1) the four-well-slot tieback capacity to a single large ~30
kilometre production line, which can be used by future Katlan area phases, (2)
an upgrade of the FPSO topsides related to MEG treatment, injection and
storage (which will benefit all future subsea tie-back developments) and, (3)
drilling the first two production wells of the development (Athena and Zeus;
170 mmboe (includes 26 bcm of gas) of 2P reserves), which is expected in 2026.
Energean's 2026 drilling campaign also contains two optional wells, which may
be used to drill additional development wells on Katlan or other exploration
or appraisal wells on other acreage. Post-period end, a drilling contract was
signed with Saipem SpA for these wells.
Other acreage
During the year, the Ministry of Energy and Infrastructure ratified both the
Hermes discovery in the Drakon area (Block 31) and its Hercules discovery
(Block 23), which Energean discovered during its 2022 drilling campaign.
Energean has a total of 5 bcm 2C resources in Hermes and 31 bcm in the wider
Drakon area (Block 31).
Commercial
Energean has signed over 20 long-term gas sale and purchase agreements
("GSPAs") to customers in Israel, all of which include take-or-pay commitments
and floor pricing or an exclusivity provision, providing a high level of
certainty over revenues from the Karish, Karish North and Tanin projects over
the next 20 years. Energean also has around half a dozen spot sales
agreements, which provides the ability to boost sales at pricing above the
contracted sales prices.
During 2024 and in early 2025, Energean signed three new long-term gas
contracts, including with Eshkol Energies Generation Ltd. ("Eshkol"), and
binding term sheets with Dalia Energy Companies Ltd. ("Dalia").
The GSPA with Eshkol is for the supply of an initial 0.6 bcm/yr, rising to 1
bcm/yr from 2032 onwards. The GSPA is for a term of approximately 15 years,
for a total contract quantity of up to approximately 12 bcm and represents
circa $2 billion in revenues over the life of the contract. The contract
contains provisions regarding floor and ceiling pricing, take or pay and price
indexation (not Brent-price linked). The GSPA has been signed at levels that
are in line with the other large, long-term contracts within Energean's
portfolio. Energean supplies gas to all four IEC power stations that have been
privatised: Ramat Hovav, Alon Tavor, East Hagit and now Eshkol.
The binding term sheets with Dalia is for the supply of up to 0.1 bcm/yr from
April 2026, rising to up to 0.5 bcm/yr from around January 2030 and then at
least 1 bcm/yr from June 2035 onwards, and excludes supply in the summer
months between 2026-2034. This represents ~$2 billion in revenues over ~18
years and up to 12 bcm in total supply. The terms contain provisions regarding
floor pricing, take or pay and price indexation linked to CPI (not Brent-price
linked). The terms have been agreed at levels that are in line with the other
large, long-term contracts within Energean's portfolio.
These new contracts are in line with Energean's strategy to bring competition
and security of supply to the Israeli market, and to secure long-term cash
flows for its shareholders via its long-term gas contracts.
Liquids
The FPSO has a storage capacity of up to 800,000 bbls, with cargoes exported
via tankers every few weeks. Energean has a sales and purchase agreement for a
number of near-term cargoes with Vitol SA for the marketing of its hydrocarbon
liquids. In 2024, Energean offloaded ten hydrocarbon liquid cargoes, totalling
over 5 million barrels. The quality of the Karish and Karish North blend is
lighter than Brent; 2024 realised pricing was at a $5/bbl discount to Brent
due to freight, logistics and marketing and costs. Energean runs a competitive
tender process for future cargoes on a regular basis to attract the most
competitive pricing.
Europe
Production
Working interest production from the Group's European portfolio (Greece and
the UK) averaged 1.8 Kboe/d (3% gas) in 2024, up 6% year-on-year due to the
start-up of the ST47 infill well on the Scott field (W.I. 10%; non-operated)
in the UK.
Greece
Energean currently produces small volumes of oil from its Prinos field.
Energean is working to re-start development activities on Epsilon in the
medium-term. In 2024, the Prinos licence (includes Epsilon) was extended to
2049 14 as a result of recent regulatory updates. The delay in the Epsilon
project, the Prinos licence extension, as well as the updated discount rates
and inflation underpinning the impairment assessment (see Note 8 for further
information), has resulted in a $92 million impairment charge to the asset.
EnEarth, which is the Company's specialised decarbonisation subsidiary, is
focused on leading the Mediterranean region's energy transition. The Prinos CS
project is to provide long-term storage for carbon dioxide emissions captured
from both local and more remote emitters and is in line with Energean's
efforts to help decarbonise heavy industries in Greece, in line with the
Group's commitment during COP28.
The project made good progress across various workflows, including FEED, over
the last year. NSAI confirmed that the project has an annual storage capacity
of up to 3 million tonnes and a total project-life capacity of 66 million
tonnes (2C contingent) of CO2. Non-binding memorandum of understandings have
been signed for c.9 million tonnes p.a. of storage.
A major milestone in the regulatory process was the submission of the storage
permit application to HEREMA for Phase 1 (1 MTPA) of the Prinos CO2 storage
project, initiating the official permitting process for long-term CO₂
storage operations. In addition, EnEarth submitted the Environmental and
Social Impact Assessment Study (ESIA) for Phase 1 to DIPA (the Greek
environmental authority) in mid-2024.
The carbon storage project has also secured EUR 270 million in grants to store
emissions from hard-to-abate industries both in Greece and in the wider
European region. In December 2024, the Greek Government formally approved the
project's inclusion within the Recovery and Resilience Facility and confirmed
the allocation of the EUR 150 million grant and in March 2025, Energean
received the final joint-ministerial approval to enable the release of funds.
In January 2025, the project was allocated around EUR 120 million from the
EU's Connecting Europe Facility to support the development of a liquid CO2
receiving terminal.
UK
Energean is focused on optimising production from its late life assets and
effectively managing its decommissioning projects.
Two infill wells on the Scott field (W.I. 10%; non-operated) were brought
online over the last year. Additional infill drilling is expected in 2025.
In H1 2024, Energean UK Limited took over operatorship of the Tors (W.I. 68%;
operator) and Wenlock (W.I. 80%; operator) assets to manage the
decommissioning work plan. In early H2 2024, Energean awarded a contract to
Petrodec UK Limited ("Petrodec") for the decommissioning of the Tors and
Wenlock fields. This contract includes: the plugging and abandoning of eight
platform wells with optional scope for one E&A well, the removal of three
platforms and the cleaning of inter-field pipelines. Total net working
interest decommissioning expenditure for Tors and Wenlock is expected to be
around GBP 80 million over the next five years and includes expenditure
outside of the Petrodec contract for, amongst others, operational and project
management costs, regulatory fees and subsea remediation works.
Morocco
In September 2024, Energean completed drilling operations on the Anchois
appraisal well (W.I. 45% operator), offshore Morocco. Although gas was
confirmed, drilling results were lower than pre-drill expectations. Following
detailed post-drilling analysis and positive engagement with partners ONHYM
and Chariot Limited ("Chariot"), Energean is assessing its options with
respect to a transfer of its interest in the Lixus and Rissana licences.
Energean is grateful for the support provided by ONHYM, the Ministry of Energy
Transition and Sustainable Development, and the Moroccan Government. Morocco
has an attractive regulatory and legal framework that incentivises
international investment into its hydrocarbon sector; Energean will continue
to assess potential opportunities in the country.
Egypt, Italy and Croatia portfolio 15
Production and development
Production from Egypt, Italy and Croatia averaged 40 kboed, up 18%
year-on-year primarily due to Egypt, which saw a full year of production from
NEA/NI, the start-up of the NAQPII#2 well on the Abu Qir field in January 2024
and the start of production from Location B in August 2024. In August 2024,
initial test production began from one of the four subsea wells on the
Cassiopea field, offshore Italy (W.I. 40%; non-operated). By year-end 2024,
all four wells were online.
Exploration
In March 2024, the Orion X1 exploration well (W.I. 19%; non-operated) in Egypt
reached the target reservoir. Post-drilling well analysis indicates no
commercial hydrocarbons.
In Q4 2024, the Gemini exploration well on the Cassiopea lease completed
drilling successfully with a small gas discovery. The field is expected to be
tied-back to the existing infrastructure at Cassiopea.
Financing
Energean ended 2024 with total available liquidity of $446 million at the
Group level and $393 million at the continuing operations.
In February 2025, Energean Israel signed a 10-year, senior-secured term loan
with Bank Leumi as the Facility Agent and Arranger for $750 million. The term
loan is available to refinance the 2026 Energean Israel notes and to provide
additional liquidity for the Katlan development. It has a 12-month
availability period, during which multiple drawdowns can be made, providing
flexibility to optimise finance costs. Up to $475 million is available in US
dollars and up to $275 million is available in New Israeli Shekel. The
interest rate for the loan is floating and has been set at competitive levels
versus the current bond market. The term loan is secured on the assets of
Energean Israel, pari passu with the Energean Israel notes, non-recourse to
Energean and has a bullet repayment in 2035.
As a result of this refinancing, Energean's weighted average life of debt will
be around seven years and the blended cost of debt will be around 7%.
In March 2025, Energean refinanced its $300 million Revolving Credit Facility
("RCF"), extending the facility tenor to September 2028 16 . The RCF provides
additional liquidity for general corporate purposes, if required. Around $160
million is currently used for Letters of Credit that relate to certain assets
in the UK and Italy.
ESG and Climate Change
Energean is committed to net zero scope 1 and 2 emissions by 2050 and
industry-leading disclosure of its energy transition intentions.
Emissions Intensity Reduction
In 2024, Energean's Group scope 1 and 2 emissions intensity on an equity share
basis was 8.4 kgCO2e/boe, down from 9.3 kgCO2e/boe in 2023 and down 87%
compared to its original baseline year (2019). This decrease was due to the
increased contribution of Karish and Karish North, which has a lower emissions
intensity compared to the rest of the Group.
ESG Ratings and Affirmations
In 2024, Energean has continued to receive strong ESG ratings across the major
ESG rating agencies. This includes:
· Carbon Disclosure Project ("CDP") Climate Change rating of B and
aligned with all recommended pillars of the Task Force on Climate Related
Financial Disclosure ("TCFD").
· MSCI rating maintained at AAA.
· Sustainalytics ranked in the top quartile of its sector, ranking
46 out of 307 oil and gas producers.
· Constituent of the FTSE4Good Index Series.
2025 Guidance
Continuing operations(2)
Total production (kboed) 120 - 130
Consolidated net debt ($ million) 2,700 - 2,900
Cash Cost of Production (operating costs plus royalties; $ million) 410 - 440
Cash SG&A ($ million) 20 - 30
Development & production capital expenditure ($ million) 400 - 430
Exploration expenditure ($ million) 0 - 5
Decommissioning expenditure ($ million) 55 - 65
Financial Review
Financial results summary
FY 2024 FY 2023 Increase/ (Decrease) % FY 2024 FY 2023 Increase/ (Decrease) %
Energean Group 17 Energean Group(1) Continuing operations Continuing operations
Average daily working interest production (kboed) 153 123 24% 114 89 28%
Sales revenue ($m) 1,779 1,420 25% 1,315 978 34%
Realised weighted average liquid price ($/boe) 71.2 71.3 -% 75.3 76.3 (1%)
Realised weighted average gas price ($/mcf) 4.7 4.9 (4%) 4.3 4.4 (2%)
Realised weighted average PSV gas price (€/MWh) 35.3 45.7 (16%) - - -%
Cash cost of production 18 ($m) 559 475 18% 389 307 27%
Cash cost of production per barrel ($/boe) 10.0 10.6 (6%) 9.4 9.5 (1%)
Cash G&A 19 37 31 19% 21 18 17%
Adjusted EBITDAX 20 ($m) 1,162 931 25% 885 667 33%
Profit after tax ($m) 188 185 2% 116 102 14%
Earnings per share (cents per share) $1.02 $1.04 (2%) $0.63 $0.57 11%
Cash flow from operating activities ($m) 1,122 656 71% 916 578 58%
Capital expenditure ($m) 733 544 35% 408 198 106%
FY 2024 FY 2023
Energean Group Energean Group
Total borrowings ($m) 3,270 3,221
Cash and cash equivalents and restricted cash ($m) 321 372
Net debt ($m) (including restricted cash) 2,949 2,849
Leverage Ratio (Net Debt/ Adjusted EBITDAX) 2.5x 3.1x
Revenue, production and commodity prices
Group
Group working interest production averaged 153 kboed with the Karish and
Karish North fields contributing 73% of total output. Increased production in
Israel compared to the previous year, coupled with in Egypt a full year of
production from NEA/NI and first production from Location B in August 2024, as
well as Cassiopea (Italy) first gas, led to a 25% increase in Group production
output compared to the prior the year. The rest of the portfolio showed no
significant fluctuations year-on-year. Despite regional variations, the
overall group production mix remained consistent at 83% gas and 17% liquids
(2023: 83% gas and 17% liquids).
Revenue for the Group for 2024 totalled $1,779 million, reflecting a 25%
increase from the prior period (2023: $1,420 million). This growth was
primarily driven by sales from Israel, which accounted for 70% of Group total
revenue (2023: 66%).
The weighted average realised gas price for the Group was $4.7/mcf, 4% lower
than in 2023 of $4.9/mcf. On a standalone basis, before the impact of the
increase in production, this led to a 5% year-on-year decline in revenue. Gas
prices in Italy were subdued at the beginning of 2024, leading to an average
realised PSV price of €35.3/MWh (2023: €45.7/MWh), resulting in a 23%
decline in Italian revenue year-on-year. Total gas sales increased by 18% to
$1,096 million (2023: $928 million), driven by higher sales volumes.
Total liquid, crude, and petroleum product sales reached $652 million for the
year (2023: $462 million). The realised weighted average liquids price was
$71.2/boe (2023: $71.3/boe). The increase in revenue was primarily because of
higher volumes sold, with prices remaining nearly unchanged year-over-year.
Adjusted EBITDAX for the period was $1,162 million (2023: $931 million). The
overall 25% increase was primarily driven by higher revenue, which outpaced
the slower 18% increase in cash production costs.
Continuing operations
Working interest production from continuing operations averaged 114 kboed,
with the Karish and Karish North fields contributing 99% of total output.
Increased production in Israel compared to the previous year led to a 28%
increase in production output in 2024. The production mix was 85% gas and 15%
liquids (2023: 88% gas and 12% liquids). Notably, production in the UK grew by
26% compared to 2023 whereas production in Greece stayed flat compared to
2023.
Revenue from continuing operations rose to $1,315 million, a 34% increase
compared to the previous period (2023: $978 million). This growth was
primarily driven by sales from Israel, which accounted for 94% of revenue from
continuing operations (2023: 96%).
Gas sales from continuing operations increased by 23% to $840 million (2023:
$681 million), mainly due to higher sales volumes in Israel.
Liquid, crude, and petroleum product sales reached $472 million (2023: $299
million). The realised weighted average liquids price was $75.3/boe (2023:
$76.3/boe). Even though the average liquids price was constant year-on-year,
the increase in liquid, crude, and petroleum product sales was due to a 60%
increase in sales volumes. The significant increase in sales volumes largely
driven Israel's 53% year to year increase in sales volumes. In addition to
this, Greece, sold three times more barrels of liquids compared to the
previous year (2024: 572 kbbl versus 2023: 196 kbbl), following a shift in
cargo disposals from 2023 into 2024. The average Brent oil price in 2024 was
$79.86/bbl (2023: $82.18/bbl).
Adjusted EBITDAX for the period reached $885 million, up from $667 million in
2023. This 33% increase in adjusted EBITDAX was primarily driven by higher
revenue and a relatively stable cash production costs per barrel of oil
equivalent.
Underlying cash production costs
Group
Total cash production costs for the period were $559 million (2023: $475
million) with 61% attributed to production in Israel. Cash production costs
for the rest of the Group, excluding Israel, amounted to $220 million (2023:
$217 million). Unit costs for the period were $10/boe (2023: $11/boe),
primarily reflecting the impact of increased production on a largely fixed
cost base. As detailed in note 7 of the consolidated financial statements,
royalties-payable in Italy and Israel-are a significant component of
production costs. Excluding royalties, production costs were $320 million
(2023: $289 million) with a representative unit cost of $6/boe (2023: $7/boe).
Continuing operations
Cash production costs for the period were $389 million (2023: $307 million),
with 87% attributed to production in Israel. Despite the increase in total
costs, unit costs slightly decreased to $9.4/boe down from $9.5/boe last year.
As detailed in note 7 of the financial statements, royalties-payable in
Israel-are a significant component of production costs. Excluding royalties,
production costs were $171 million (2023: $142 million), with a representative
unit cost of $4/boe in both periods.
Depreciation
Group
In accordance with the accounting for discontinued operations, Italy, Egypt
and Croatia (the ECL Group) ceased depreciation of assets once they were
classified as held for sale. Despite this, depreciation charges on production
and development assets increased to $348 million from $306 million in 2023.
This increase was primarily driven by elevated production levels in Israel.
However, this was partially offset by a $35 million net reduction in
depreciation from assets in discontinued operations attributed to their
reclassification under assets held for sale accounting.
On a per barrel of oil equivalent basis, this represented a 7% decrease,
decreasing to $13/boe (2023: $14/boe).
Continuing operations
Depreciation charges on production and development assets rose to $296 million
(2023: $219 million) primarily due to the 41% increase in Israel's charges to
$265 million (2023: $188 million).
Exploration and evaluation expenditure and new ventures
Group
During the period, the Group expensed $150 million (2023: $34 million) for
exploration and new venture evaluation activities. Total impairment costs of
$145 million were recognised during the period for projects that will not
progress to development. In 2024, the Orion X1 exploration well in Egypt
reached the target reservoir but indicated no commercial hydrocarbons,
resulting in a full impairment of the related exploration asset valued at $63
million. Additionally, the exploration license for Ioannina expired on 2 April
2024, leading to a full impairment of the exploration asset valued at $16
million. Moreover, in Morocco, where unfavourable exploration results and the
intention to transfer the license rights, indicated the impairment of the
related exploration asset amounting to $65 million.
Continuing operations
During the period, $84 million (2023: $29 million) were expensed for
exploration and new venture evaluation activities. Impairment costs of $16
million were recognised during the period for Ioannina license which expired
on 2 April 2024, leading to a full impairment of the exploration asset. This
was accompanied by a full impairment of a related exploration asset in
Morocco, valued at $65 million.
Other income and expenses
Group
Other expenses increased to $12 million (2023: $5 million). Other expenses
primarily consists of $5 million in transaction costs related to ECL Group
disposal and $5 million of other expenses mainly coming from the discontinued
operations. Other income totalled $3 million (2023: $8 million), mainly due to
the reversal of prior period provisions, reassessed in the current year based
on updated facts and circumstances.
Continuing operations
Other expenses from continuing operations increased to $7 million (2023: $5
million). Other expenses primarily consist of the $5 million in transaction
costs related to ECL Group disposal. Other income from continuing operations
totalled $2 million, unchanged from the prior period (2023: $2 million).
Finance income / costs
Group
Total finance costs in 2024 amounted to $272 million (2023: $251 million).
Total financing costs before capitalisation were $287 million. The finance
costs included $201 million in interest expense on Senior Secured notes, $16
million on debt facilities, $9 million in interest expense related to
long-term payables, $51 million from the unwinding of discounts on
decommissioning provisions, on long-term payables and on Lease liabilities,
and $10 million in commissions for guarantees and other bank charges. Net
finance costs also reflect foreign exchange gains of $14 million and finance
income of $15 million, which includes interest income from time deposits.
Continuing operations
Total finance costs in 2024 for continuing operations amounted to $239 million
(2023: $231 million). Total financing costs before capitalisation were $254
million. The finance costs included $201 million in interest expense on Senior
Secured notes, $16 million on debt facilities, $2 million in interest expense
related to long-term payables, $27 million from the unwinding of discounts on
decommissioning provisions, long-term payables and on Lease liabilities, and
$8 million in commissions for guarantees and other bank charges. Net finance
costs also reflect finance income of $14 million, which includes interest
income from time deposits.
Taxation
Group
The Group had a tax expense of $89 million in 2024 (2023: $159 million),
consisting of a current tax expense of $121 million offset by a prior year tax
reversal of $4 million and a deferred tax income of $28 million, resulting in
an effective tax rate of 32% (down from 46% in 2023). Current tax expense was
up by $63 million mainly due to the increased profitability in Israel,
whereas, the movement in deferred taxes was impacted by the reduction in
temporary differences due to the impairment of assets in Greece ($23 million)
and the addition of recoverable deferred tax assets in the UK ($19 million),
offset by the reversal of deferred tax assets in Israel due to the utilisation
of tax losses and other temporary differences ($22 million).
Taxation charges in 2024 also included $35 million (2023: $48 million) related
to non-cash taxes deducted at source in Egypt.
Continuing operations
Tax charges for continuing operations totalled $52 million (2023: $70
million), including $82 million in corporation tax charges offset by $30
million in deferred tax income.
Profit after tax
Group
Profit after tax was $188 million (2023: $185 million). It was due to lower
taxable profits offset by reduced tax expenses (2024: $89 million versus 2023:
$159 million). Profit before tax decreased by 19% to $277 million (2023: $344
million). This is primarily due to several-specific exceptional items. Key
contributors include the impairment of tangible assets in Greece ($96
million), intangible assets in Egypt, Morocco and Greece ($145 million) and
the increase in Italian decommissioning obligations in the period ($26
million).
Continuing operations
Profit after tax from continuing operations was $116 million (2023: $102
million). The increase in profit compared to the prior period is primarily due
to higher taxable profits, despite an increased tax expense (2024: $52 million
versus 2023: $70 million). Profit before tax decreased by 2% to $168 million
(2023: $172 million) primarily due to impairment of tangible asset in Greece
($96 million) and intangible assets in Morocco and Greece ($82 million).
Earnings per share
Group
In 2024, earnings per share were $1.02 (2023: $1.04), and diluted earnings per
share were $1.01 (2023: $1.05).
Continuing operations
Earnings per share from continuing operations were $0.63 (2023: $0.57). The
diluted earnings per share for continuing operations were $0.62 (2023: $0.59),
reflecting mainly the impact of convertible loan notes in H1 2023.
Operating cash flow
Group
In 2024, the Group had a net cash inflow from operations of $1,122 million
(2023: $656 million). The significant increase in operating cash flow compared
to the prior period was primarily driven by the significant growth in revenues
from Israel.
Continuing operations
In 2024, Energean recorded a net cash inflow from operations of $916 million
(2023: $578 million).
Capital Expenditures
Group
During the year, the Group incurred capital expenditures of $733 million
(2023: $544 million). The expenditures were primarily focused on development
activities, including $301 million related to activities in Israel (Karish,
Karish North, Katlan, Second Oil Train and Second Gas Export Riser), $224
million in Italy, the vast majority of which was associated with the Cassiopea
field and $36 million for Location B in Egypt. Exploration and appraisal
expenditures were mainly directed towards the Gemini field in Italy ($22
million), the Orion X1 well in Egypt ($19 million) and new operations in
Morocco ($66 million).
Continuing operations
In 2024, capital expenditures for continuing operations totalled $408 million,
having increased from $198 million in 2023. These expenditures were primarily
focused on development and exploration activities in Israel and Morocco, as
previously discussed, and minor development capital expenditures in Scott and
Telford (UK).
Decommissioning provision
A total change in the decommissioning provision of $22 million (2023: $28
million) was expensed during the period. This included a $24 million expense
related to discontinued operations due to an increase in the decommissioning
provision estimate in Italy, driven by higher discount rates in the first half
of the year. Additionally, a $3 million expense was recorded in the UK for
continuing operations.
In 2024, the Group incurred $43 million in decommissioning expenses, with $13
million allocated to the Tors and Wenlock projects (UK) under continuing
operations, and $30 million attributed to discontinued operations in Italy,
compared to a total of $9 million in 2023.
Net Debt
As of 31 December 2024, net debt totalled $2,949 million (2023: $2,849
million), comprising $2,625 million in Israeli senior secured notes, $450
million in corporate senior secured notes, and $105 million from the Greek
Black Sea Trade Development Bank loan, offset by deferred amortized fees and
cash, bank deposits, and restricted cash balances of $321 million (including
$85 million of restricted cash). In the debt capital markets, Energean is only
exposed to floating interest rates for the Greek loan and the Revolving Credit
Facility, as well as the new loan from Bank Leumi upon its withdrawal.
Conversely, the Senior Secured Notes issued by both Energean Plc and Energean
Israel are subject to fixed interest rates.
Shareholder Distributions
In line with the Group's dividend policy, Energean returned US$1.20 per share
to shareholders in 2024, totalling $220 million, representing four-quarters of
dividend payments. In 2023, Energean returned US$1.20 per share.
Non-IFRS measures
The Group uses certain measures of performance that are not specifically
defined under IFRS or other generally accepted accounting principles. These
non-IFRS measures include adjusted EBITDAX, underlying cash cost of production
and G&A, capital expenditure, net debt and leveraging.
Adjusted EBITDAX
Adjusted EBITDAX is a non-IFRS measure used by the Group to measure business
performance. It is calculated as profit or loss for the period, adjusted for
discontinued operations, taxation, depreciation and amortisation, share-based
payment charge, impairment of property, plant and equipment, other income and
expenses, net finance costs and exploration costs. The Group presents adjusted
EBITDAX as it is used in assessing the Group's growth and operational
efficiencies because it illustrates the underlying performance of the Group's
business by excluding items not considered by management to reflect the
underlying operations of the Group.
FY 2024 FY 2023
Continuing operations Continuing operations
$m $m
Adjusted EBITDAX 885 667
Reconciliation to profit for the period:
Depreciation and amortisation (296) (219)
Share-based payment charge (9) (6)
Exploration and evaluation expense (84) (29)
Change in decommissioning provision 3 (18)
Expected credit loss (5) -
Impairment of oil and gas assets (95) -
Other expenses (5) (3)
Finance income 15 14
Finance cost (239) (231)
Net foreign exchange loss (2) (3)
Taxation expense (52) (70)
Profit for the period 116 102
While adjusted EBITDAX excludes the financial results of discontinued
operations by definition, the Group has chosen to present equivalent non-IFRS
financial metrics for the entire Energean Group, including discontinued
operations, for comparison purposes.
FY 2024 FY 2023
Energean Group Energean Group
$m $m
Adjusted EBITDAX 1,162 931
Reconciliation to profit for the period:
Depreciation and amortisation (348) (306)
Share-based payment charge (9) (7)
Exploration and evaluation expense (150) (34)
Change in decommissioning provision (22) 17
Expected credit loss (7) (4)
Impairment of oil and gas assets (96) -
Other (expenses)/income (9) 3
Finance income 15 20
Finance cost (272) (251)
Unrealised loss on derivative - (7)
Net foreign exchange profit/ (loss) 14 (18)
Taxation income / (expense) (89) (159)
Profit for the period 188 185
Cash Cost of Production
Cash Cost of Production is a non-IFRS measure that is used by the Group as a
useful indicator of the Group's underlying cash costs to produce hydrocarbons.
The Group uses the measure to compare operational performance
period-to-period, to monitor cost and assess operational efficiency. Cash cost
of production is calculated as cost of sales, adjusted for depreciation and
hydrocarbon inventory movements.
FY 2024 FY 2023 FY 2024 FY 2023
Energean Group Energean Group Continuing operations Continuing operations
$m $m $m $m
Cost of sales 925 760 702 509
Adjusted for:
Depreciation (344) (301) (293) (216)
Change in inventory (22) 16 (20) 14
Cost of production 559 475 389 307
Total production for the period (MMboe) 55,985 44,883 41,436 32,492
Cost of production per boe ($/boe) 10.0 10.6 9.4 9.5
Cash General & Administrative Expense (G&A)
Cash G&A excludes certain non-cash accounting items from the Group's
reported G&A. Cash G&A is calculated as follows: administrative and
distribution expenses, excluding depletion and amortisation of assets and
share-based payment charge that are included in G&A.
FY 2024 Energean Group FY 2023 FY 2024 FY 2023
Energean Group Continuing operations Continuing operations
$m $m $m $m
Administrative expenses 49 43 32 27
Less:
Depreciation (4) (5) (3) (3)
Share-based payment charge included in G&A (8) (7) (8) (6)
Cash G&A 37 31 21 18
The Group's total cash G&A expenses for 2024 amounted to $37 million, with
$21 million attributed to continuing operations. This reflects a 19% overall
increase from the previous period, and a 17% increase specifically for
continuing operations. The rise in costs is primarily driven by an increase in
staff expenses in Israel due to ramp-up of operations and higher staff
expenditure in Italy.
Capital Expenditure
Capital expenditure is a useful indicator of the Group's organic expenditure
on oil and gas assets and exploration and appraisal assets incurred during a
period. Capital expenditure is defined as additions to property, plant and
equipment and intangible exploration and evaluation assets less
decommissioning asset additions, right-of-use asset additions, capitalised
share-based payment charge and capitalised borrowing costs:
FY 2024 FY 2023 FY 2024 FY 2023
Energean Group Energean Group Continuing operations Continuing operations
$m $m $m $m
Additions to property, plant and equipment 626 533 333 205
Additions to intangible exploration and evaluation assets 117 57 72 29
Less:
Capitalised borrowing costs 15 18 15 18
Leased assets additions and modifications 12 47 6 16
Lease payments related to capital activities (20) (16) (9) (8)
Change in decommissioning provision 4 (3) (14) 10
Total capital expenditures 733 544 408 198
Movement in working capital 32 (3) 53 168
Cash capital expenditures per the cash flow statement 765 541 461 366
Net Debt
Net debt is defined as the Group's total borrowings less cash and cash
equivalents. Management believes that net debt serves as a valuable indicator
of the Group's indebtedness, financial flexibility, and capital structure
because it reflects the level of borrowings after accounting for any cash and
cash equivalents that could be utilised to reduce borrowings.
Net debt reconciliation FY 2024 FY 2023
Energean Group Energean Group
$m $m
Current borrowings 128 80
Non-current borrowings 3,142 3,141
Total borrowings 3,270 3,221
Less: Cash and cash equivalents (236) (347)
Less: Restricted cash held for loan repayment (85) (25)
Net Debt 21 2,949 2,849
Net Debt Excluding Israel(4) 595 570
Going Concern
The Directors assessed the Group's ability to continue as a going concern over
a going concern assessment period to 30 June 2026. As a result of this
assessment, the Directors are satisfied that the Group has sufficient
financial resources to continue in operation for the foreseeable future and
for this reason they continue to adopt the going concern basis in preparing
the consolidated financial statements. Detail of the Group's going concern
assessment for the period can be found within note 2.2 of the consolidated
financial statements.
Subsequent Events
New term loan
In February 2025, the Group has signed a 10-year, senior-secured term loan
with Bank Leumi as the Facility Agent and Arranger for $750 million. The term
loan will be available to refinance the 2026 Energean Israel Limited Notes and
to provide additional liquidity for the Katlan development. Refer to note 2.1
for further detail.
Sale of Egypt, Italy and Croatia portfolio
The Group remains committed to completing the sale of the ECL Group under the
terms of the Sale and Purchase Agreement (SPA) signed on 19 June 2024.
However, as of the date of these financial statements, some of the necessary
regulatory approvals have not yet been obtained by Carlyle. Additionally, as
of the date of these financial statements, the Group has not been able to
reach agreement with Carlyle to extend the longstop date beyond 20 March 2025,
as outlined in the SPA. Accordingly, there is uncertainty regarding the
completion of the sale.
This information became available to the Group subsequent to the reporting
date and does not alter the accounting approach applied to the ECL Group in
these financial statements, presenting it as a disposal group held for sale
and a discontinued operation. At the reporting date, the disposal was deemed
highly probable to be completed within 12 months from the reporting date. This
assessment was based on the status of approvals as of 31 December 2024, which
included:
· Unconditional clearance from the Italian Competition Authority
obtained in August 2024;
· Approval from the Italian Presidency of the Council of Ministers
under the Italian Golden Power Law received in September 2024; and
· Unconditional clearance from the COMESA Competition Commission
received in December 2024.
Should the Group reassess and reclassify the ECL Group to assets held-for-use
and continuing operations in 2025, it would result in an additional
depreciation charge of $65.1 million, as detailed in Note 17, being reflected
in the 2024 full year results when reported as restated comparative figures
for 2025.
Other events
In February 2025 the Group renegotiated the extension of the $300 million RCF
for another three years, until September 2028. The total available
commitments, step down to $200 million from September 2025 onwards.
Risk Management
Principal Risks
As of 31 December 2024, the Board identified several changes to the principal
risks facing the business, primarily as a result of the impact of the
envisaged disposal of its Egypt, Italy and Croatia portfolio. As a result of
this as at 31 December 2024, Energean removed three principal risks recognised
in the 2023 Annual Report: "Deterioration or misaligned of JV relationships
risk," "Recoverability of production costs and receivables in Egypt" and
"Geopolitical conflicts outside of Israel in areas of operation affecting
production and distribution" given these are risks associated with operations
within the Disposal Group currently held for sale. Elsewhere, the Board has
combined the "Maintaining liquidity and solvency" and "Macro-economic risk"
under one principal risk in the 2024 Annual Report.
In 2024, the Board also considered the risks associated with the Carlyle
Transaction, including the risk of the Transaction not proceeding by the long
stop date of 20 March 2025 or at all. A detailed analysis of the effects of
the Transaction including the impact of the material risks associated with the
Transaction not proceeding are described in section 3.1 as announced on 29
August 2024 pursuant to the UK Listing Rule 7.3. and the Company's 2024 Half
Year results and is considered as a sensitivity in our Viability Statement in
the 2024 Annual Report & Accounts.
As noted in the Company's announcement of 17 March 2025, certain regulatory
approvals in Italy and Egypt have not yet been obtained by Carlyle (or waived)
and the Company has no assurance that such conditions will be satisfied on or
before 20 March 2025 in accordance with the terms of the binding Sale and
Purchase Agreement ("SPA") signed on 19 June 2024. Additionally, as of the
date of writing this report, Company has not been able to reach agreement with
Carlyle to extend the longstop date beyond 20 March 2025. Accordingly, there
is a significant risk that the outstanding conditions precedent will not be
satisfied (or waived) by the relevant long stop date and that, therefore,
(absent an extension being agreed) the Transaction may be terminated in
accordance with the provisions of the SPA.
A full description of Energean's principal risks as at 31 December 2024, as
well as a full description of the Group's mitigations in relation to these
risks, is disclosed in the 2024 Annual Report & Accounts.
Forward Looking Statements
This announcement contains statements that are, or are deemed to be,
forward-looking statements. In some instances, forward-looking statements can
be identified by the use of terms such as "projects", "forecasts", "on track",
"anticipates", "expects", "believes", "intends", "may", "will", or "should"
or, in each case, their negative or other variations or comparable
terminology. Forward-looking statements are subject to a number of known and
unknown risks and uncertainties that may cause actual results and events to
differ materially from those expressed in or implied by such forward-looking
statements, including, but not limited to: general economic and business
conditions; demand for the Company's products and services; competitive
factors in the industries in which the Company operates; exchange rate
fluctuations; legislative, fiscal and regulatory developments; political
risks; terrorism, acts of war and pandemics; changes in law and legal
interpretations; and the impact of technological change. Forward-looking
statements speak only as of the date of such statements and, except as
required by applicable law, the Company undertakes no obligation to update or
revise publicly any forward-looking statements, whether as a result of new
information, future events or otherwise. The information contained in this
announcement is subject to change without notice.
Group Income Statement
Year ended 31 December 2024
($'000) Notes 2024 2023 (Restated)(( 22 ))
Continuing operations:
Revenue 4 1,314,734 978,495
Cost of sales 5a (702,440) (509,286)
Gross profit 612,294 469,209
Administrative expenses 5b (31,969) (27,305)
Exploration and evaluation expenses 5c, 9 (83,646) (29,192)
Change in decommissioning provision 15 3,201 (18,352)
Impairment of oil and gas assets 5g, 8 (95,448) (342)
Expected credit loss 5d (4,928) -
Other expenses 5e (7,013) (4,182)
Other income 5f 1,925 1,687
Operating profit 394,416 391,523
Finance income 6 14,811 14,318
Finance costs 6 (239,123) (231,095)
Unrealised loss on derivatives (392) -
Net foreign exchange loss 6 (1,446) (3,010)
Profit before tax from continuing operations 168,266 171,736
Taxation expense 7 (52,342) (69,674)
Profit for the year from continuing operations 115,924 102,062
Discontinued operations:
Profit after tax for the year from discontinued operations 17 72,148 82,873
Profit for the year 188,072 184,935
(cents per share) Notes 2024 2023 (Restated)(( 23 ))
Basic and diluted earnings per share
Basic $1.02 $1.04
Diluted $1.01 $1.05
Basic and diluted earnings per share for continuing operations
Basic $0.63 $0.57
Diluted $0.62 $0.59
Group Statement of Comprehensive Income
Year ended 31 December 2024
($'000) 2024 2023 (Restated)(( 24 ))
Profit for the year from:
Continuing operations 115,924 102,062
Discontinued operations 72,148 82,873
Profit for the year 188,072 184,935
Other comprehensive profit/(loss):
Items that may be reclassified subsequently to profit or loss
Cash Flow hedges, net of tax (266) -
Exchange difference on the translation of foreign operations, net of tax (25,183) 7,463
Net other comprehensive loss that may be reclassified to profit or loss in (25,449) 7,463
subsequent periods
Items that will not be reclassified subsequently to profit or loss
Remeasurement of defined benefit pension plan 116 (161)
Income taxes on items that will not be reclassified to profit or loss (29) 38
Net other comprehensive income/(loss) that will not be reclassified to profit 87 (123)
or loss in subsequent periods
Other comprehensive profit after tax (25,362) 7,340
Total comprehensive profit for the year 162,710 192,275
Group Statement of Financial Position
As at 31 December 2024
($'000) Notes 2024 2023
Assets
Non-current assets
Property, plant and equipment 8 3,378,752 4,371,325
Intangible assets 9 185,310 325,389
Equity-accounted investments - 4
Other receivables 13 32,973 33,682
Deferred tax asset 10 128,368 217,504
Restricted cash 12 2,950 3,124
3,728,353 4,951,028
Current assets
Inventories 29,233 110,126
Trade and other receivables 13 132,454 353,257
Restricted cash 12 82,427 22,482
Cash and cash equivalents 11 182,251 346,772
Assets held for sale 17 1,769,906 -
2,196,271 832,637
Total assets 5,924,624 5,783,665
Equity and Liabilities
Equity attributable to owners of the parent
Share capital 2,449 2,449
Share premium 465,331 465,331
Merger reserve 139,903 139,903
Other reserves 5,796 5,975
Foreign currency translation reserve (23,547) 1,636
Share-based payment reserve 41,996 32,917
Retained earnings 6,161 37,904
Total equity 638,089 686,115
Non-current liabilities
Borrowings 14 3,141,904 3,141,197
Deferred tax liabilities 10 141,403 122,785
Retirement benefit liability 518 1,595
Provisions 15 234,035 786,362
Trade and other payables 16 89,283 166,923
3,607,143 4,218,862
Current liabilities
Trade and other payables 16 335,841 737,603
Current portion of borrowings 14 128,000 80,000
Current tax liability 81,034 9,261
Derivative financial instruments 345 -
Provisions 15 58,260 51,824
Liabilities held for sale 17 1,075,912 -
1,679,392 878,688
Total equity and liabilities 5,924,624 5,783,665
Group Statement of Changes in Equity
Year ended 31 December 2024
($'000) Share capital Share premium Hedges and Defined Benefit Plans reserve 25 Equity component of convertible bonds 26 Share based payment reserve 27 Translation reserve 28 Retained earnings Merger reserves Total
At 1 January 2023 2,380 415,388 6,098 10,459 25,589 (5,827) 56,208 139,903 650,198
Profit for the period - - - - - - 184,935 - 184,935
Remeasurement of defined benefit pension plan, net of tax (123) (123)
Exchange difference on the translation of foreign operations 7,463 7,463
Total comprehensive income - - (123) - - 7,463 184,935 - 192,275
Transactions with owners of the company:
Conversion of the loan note 57 49,943 - (10,459) - - 10,459 - 50,000
Exercise of Employee Share Options 12 - - - (12) - - - -
Share based payment charges - - - - 7,340 - - - 7,340
Dividends (note 18 ) - - - - - - (213,698) - (213,698)
At 1 January 2024 2,449 465,331 5,975 - 32,917 1,636 37,904 139,903 686,115
Profit for the period - - - - - - 188,072 - 188,072
Cashflow hedge, net of tax - - (266) - - - - - (266)
Remeasurement of defined benefit pension plan, net of tax - - 87 - - - - - 87
Exchange difference on the translation of foreign operations - - - - - (25,183) - - (25,183)
Total comprehensive income - - (179) - - (25,183) 188,072 - 162,710
Transactions with owners of the company:
Share based payment charges - - - - 9,079 - - - 9,079
Dividends (note 18) - - - - - - (219,815) - (219,815)
At 31 December 2024 2,449 465,331 5,796 - 41,996 (23,547) 6,161 139,903 638,089
Group Statement of Cash Flows
Year ended 31 December 2024
($'000) Note 2024 2023 (Restated)(( 29 ))
Operating activities
Profit before taxation from continuing operations 168,266 171,737
Profit before taxation from discontinued operations 108,763 172,428
Profit before taxation 277,029 344,165
Adjustments to reconcile profit before taxation to net cash provided by
operating activities:
Depreciation, depletion and amortisation 8,9 347,754 306,144
Impairment loss on property, plant and equipment 8 95,607 342
Loss from the sale of property, plant and equipment 5e 675 190
Impairment loss on exploration and evaluation assets 9 144,669 28,758
Impairment loss on inventory 671 -
Change in decommissioning provision estimates 15 (8,221) (16,996)
Defined benefit (gain)/ loss (71) 45
Movement in other provisions 15 704 (11,098)
Compensation to gas buyers 4 - 4,929
Finance income 6 (15,386) (19,501)
Finance costs 6 271,528 250,395
Unrealised loss on derivatives 392 6,610
ECL on trade receivables 7,482 4,375
Non-cash revenues from Egypt(( 30 )) (34,841) (48,254)
Other income (344) -
Share-based payment charge 9,079 7,340
Net foreign exchange (income)/ loss 6 (12,639) 16,584
Cash flow from operations before working capital adjustments
Increase in inventories 3,210 (14,923)
Increase in trade and other receivables (81,058) (45,178)
Increase/(Decrease) in trade and other payables 121,260 (44,913)
Cash flow from operations 1,127,500 769,014
Income tax paid (5,733) (112,827)
Net cash inflow from operating activities 1,121,767 656,187
Investing activities
Payment for purchase of property, plant and equipment 8 (580,487) (436,043)
Payment for exploration and evaluation, and other intangible assets 9 (184,851) (105,024)
Movement in restricted cash 12 (59,954) 49,226
Proceeds from disposal of exploration and evaluation and other intangible 978 -
Amounts received from INGL related to the transfer of property, plant & 16 1,801 56,906
equipment
Other investing activities 2,858 (520)
Interest received 10,236 18,997
Net cash outflow for investing activities (809,419) (416,458)
Financing activities
Drawdown of borrowings 14 118,000 905,038
Repayment of borrowings 14 (70,000) (655,000)
Repayment of deferred consideration liability 14 - (150,000)
Debt issue costs 14 - (17,633)
Repayment of obligations under leases 14 (20,467) (18,732)
Finance cost paid for deferred license payments (4,000) (2,496)
Finance costs paid (229,755) (174,833)
Dividend Paid (219,815) (213,698)
Net cash outflow from financing activities (426,037) (327,354)
Net decrease in cash and cash equivalents (113,689) (87,625)
Cash and cash equivalents at beginning of the period 346,772 427,888
Effect of exchange rate fluctuations on cash held 2,187 6,509
Cash and cash equivalents at end of the period (including cash held in 11 235,270 346,772
disposal group)
Cash and cash equivalents held in disposal group presented as held for sale at 17 53,019 -
31 December
1. Basis of preparation and presentation of financial information
Whilst the financial information in this preliminary announcement has been
prepared in accordance with UK-adopted International Accounting Standards
(UK-adopted IAS) and with the requirements of the United Kingdom Listing
Authority (UKLA) Listing Rules, this announcement does not contain sufficient
information to comply with IFRS. The Group will publish full financial
statements that comply with IFRS in April 2025. The financial information for
the year ended 31 December 2024 does not constitute statutory accounts as
defined in sections 435 (1) and (2) of the Companies Act 2006. The group and
parent company financial statements for the year ended 31 December 2023 have
been delivered to the Registrar of Companies; the auditor's report on these
accounts was unqualified, did not include a reference to any matters by way of
emphasis and did not contain a statement under Section 498 (2) or Section 498
(3) of the UK Companies Act 2006.
The accounting policies applied are consistent with those adopted and
disclosed in the Group's financial statements for the year ended 31 December
2024. There have been a number of amendments to accounting standards and new
interpretations issued by the International Accounting Standards Board which
were applicable from 1 January 2024, however these have not any impact on the
accounting policies, methods of computation or presentation applied by the
Group. Further details on new International Financial Reporting Standards
adopted will be disclosed in the 2024 Annual Report and Accounts.
Certain new accounting standards and interpretations have been published that
are not mandatory for 31 December 2024 reporting periods and have not been
early adopted by the Group. These standards are not expected to have a
material impact on the entity in the current or future reporting periods and
on foreseeable future transactions.
2. Earnings per share
Basic earnings per ordinary share amounts are calculated by dividing net
income for the year attributable to ordinary equity holders of the parent by
the weighted average number of ordinary shares outstanding during the year.
Diluted income per ordinary share is calculated by dividing net income for the
year attributable to ordinary equity holders of the parent by the weighted
average number of ordinary shares outstanding during the year plus the
weighted average number of ordinary shares that would be issued if dilutive
employee share options were converted into ordinary shares.
($'000) 2024 2023 (Restated(( 31 )))
Total profit from continuing operations attributable to equity shareholders 115,924 102,062
Effect of dilutive potential ordinary shares(( 32 )) - 4,450
115,924 106,512
2024 2023
Basic weighted average number of shares including those held by Employee 183,480,959 178,447,141
Benefit Trust
Dilutive potential ordinary shares 2,282,980 2,041,193
Diluted weighted average number of shares 185,763,939 180,488,334
Basic earnings per share, continuing operations $0.63/share $0.57/share
Diluted earnings per share, continuing operations $0.62/share $0.59/share
3. Segmental reporting
The information reported to the Group's Chief Executive Officer and Chief
Financial Officer (together the Chief Operating Decision Makers) for the
purposes of resource allocation and assessment of segment performance is
focused on three continuing operating segments: Europe (including Greece and
UK), Israel, and New Ventures. The Group's reportable segments under IFRS 8
Operating Segments are Europe and Israel. Segments that do not exceed the
quantitative thresholds for reporting information about operating segments
have been included in Other.
Discontinued operations consist of the Egypt segment, the Italian and Croatian
operations previously included in the Europe reportable segment, which are to
be disposed of in H1 2025 (refer to Note 17 for further detail).
Information regarding the results of each reportable segment is included below
and prior periods are represented to reflect discontinued operations to
provide comparability.
The following is an analysis of the Group's revenue, results and
reconciliation to profit/(loss) before tax by reportable segment:
($'000) Europe Israel Other & inter-segment transactions Continuing operations, total Discontinued operations Total
Year ended 31 December 2024
Revenue from gas sales 1,283 838,881 - 840,164 255,838 1,096,002
Revenue from hydrocarbon liquids sales - 400,230 - 400,230 41,640 441,870
Revenue from crude oil sales 70,633 - - 70,633 151,736 222,369
Revenue from LPG sales - - - - 14,892 14,892
Other 3,707 - - 3,707 573 4,280
Total revenue 75,623 1,239,111 - 1,314,734 464,679 1,779,413
Adjusted EBITDAX 33 38,634 903,233 (56,591) 885,276 276,775 1,162,051
Reconciliation to profit before tax:
Depreciation and amortisation expenses (18,304) (276,444) (1,112) (295,860) (51,894) (347,754)
Share-based payment charge (1,354) (1,207) (6,530) (9,091) 12 (9,079)
Exploration and evaluation expenses (776) - (82,870) (83,646) (66,087) (149,733)
Change in decommissioning expenses 3,201 - - 3,201 (25,568) (22,367)
Expected credit loss (4,928) - - (4,928) (2,554) (7,482)
Impairment of oil and gas assets (95,448) - - (95,448) (159) (95,607)
Other expense (256) (779) (5,978) (7,013) (4,881) (11,894)
Other income 2,437 - (512) 1,925 864 2,789
Finance income 5,852 8,894 65 14,811 575 15,386
Finance costs (22,450) (179,779) (36,894) (239,123) (32,405) (271,528)
Unrealised loss on derivatives - (392) - (392) - (392)
Net foreign exchange gain/(loss) (523) (938) 15 (1,446) 14,085 12,639
Profit/(loss) before income tax (93,915) 452,588 (190,407) 168,266 108,763 277,029
Taxation income / (expense) 48,392 (107,579) 6,845 (52,342) (36,615) (88,957)
Profit/(loss) for the period (45,523) 345,009 (183,562) 115,924 72,148 188,072
($'000) Europe Israel Other & inter-segment transactions Continuing operations, total Discontinued operations Total
Year ended 31 December 2023 (Restated 34 )
Revenue from gas sales 1,608 674,481 - 676,089 246,578 922,667
Revenue from hydrocarbon liquids sales - 265,355 - 265,355 32,487 297,842
Revenue from crude oil sales 33,567 - - 33,567 147,137 180,704
Revenue from LPG sales - - - - 14,376 14,376
Other 9,437 - (5,953) 3,484 560 4,044
Total revenue 44,612 939,836 (5,953) 978,495 441,138 1,419,633
Adjusted EBITDAX 35 (1,997) 669,894 (691) 667,206 263,292 930,498
Reconciliation to profit before tax:
Depreciation and amortisation expenses (16,977) (201,881) (15) (218,873) (87,271) (306,144)
Share-based payment charge (1,126) (730) (4,573) (6,429) (911) (7,340)
Exploration and evaluation expenses (27,424) (50) (1,718) (29,192) (4,896) (34,088)
Change in decommissioning expenses (18,352) - - (18,352) 35,348 16,996
Expected credit loss - - - - (4,375) (4,375)
Other expense (4,245) (190) (89) (4,524) (750) (5,274)
Other income 1,463 37 187 1,687 6,293 7,980
Finance income 6,347 11,319 (3,348) 14,318 5,183 19,501
Finance costs (25,578) (169,467) (36,050) (231,095) (19,300) (250,395)
Unrealised loss on derivatives - - - - (6,610) (6,610)
Net foreign exchange gain/(loss) 2,488 (8,484) 2,986 (3,010) (13,574) (16,584)
Profit/(loss) before income tax (85,401) 300,448 (43,311) 171,736 172,429 344,165
Taxation income / (expense) (1,169) (68,600) 95 (69,674) (89,556) (159,230)
Profit/(loss) for the period (86,570) 231,848 (43,216) 102,062 82,873 184,935
The following table presents assets and liabilities information for the
Group's operating segments as at 31 December 2024 and 31 December 2023,
respectively:
Year ended 31 December 2024 ($'000) Europe Israel Other & inter-segment transactions Continuing operations, total Discontinued operations(( 36 )) Total
Oil & Gas properties 156,792 3,221,613 (19,403) 3,359,002 1,158,700 4,517,702
Other fixed assets 8,681 10,259 810 19,750 42,932 62,682
Intangible assets 45 171,902 13,363 185,310 31,113 216,423
Trade and other receivables 46,978 131,128 (12,679) 165,427 290,273 455,700
Deferred tax asset 128,368 - - 128,368 121,250 249,618
Other assets 107,667 197,110 (7,916) 296,861 125,638 422,499
Total assets 448,531 3,732,012 (25,825) 4,154,718 1,769,906 5,924,624
Trade and other payables 73,721 329,969 21,434 425,124 545,065 970,189
Borrowings 101,816 2,594,212 573,876 3,269,904 - 3,269,904
Decommissioning provision 206,938 85,357 - 292,295 518,363 810,658
Current tax payable - 81,034 - 81,034 3,813 84,847
Deferred tax liability - 144,846 (3,443) 141,403 - 141,403
Other liabilities 113,291 277 (112,705) 863 8,671 9,534
Total liabilities 495,766 3,235,695 479,162 4,210,623 1,075,912 5,286,535
Other segment information
Capital Expenditure 37 :
Property, plant and equipment 32,136 303,290 564 335,990 279,800 615,790
Intangible, exploration 654 6,528 64,944 72,126 45,144 117,270
and evaluation assets
Year ended 31 December 2023 ($'000) Europe Israel Egypt Other & inter-segment transactions Total
Oil & Gas properties 734,265 3,112,552 473,628 (17,343) 4,303,102
Other fixed assets 35,110 13,918 19,996 (801) 68,223
Intangible assets 20,303 243,965 46,846 14,275 325,389
Trade and other receivables 88,729 130,135 154,095 (19,702) 353,257
Deferred tax asset 219,476 - - (1,972) 217,504
Other assets 849,649 245,217 47,601 (626,277) 516,190
Total assets 1,947,532 3,745,787 742,166 (651,820) 5,783,665
Trade and other payables 375,390 391,379 74,893 62,864 904,526
Borrowings 108,392 2,588,491 - 524,314 3,221,197
Decommissioning provision 738,063 92,613 - 6,819 837,495
Current tax payable 7,597 - - 1,664 9,261
Deferred tax liability - 125,847 - (3,062) 122,785
Other liabilities 7,502 - 1,601 (6,817) 2,286
Total liabilities 1,236,944 3,198,330 76,494 585,782 5,097,550
Other segment information
Capital Expenditure 38 :
Property, plant and equipment 220,461 138,490 130,099 (1,630) 487,420
Intangible, exploration 4,152 24,959 26,253 1,288 56,652
and evaluation assets
The following tables present cash flow information for the Group's operating
segments for the year ended 31 December:
Year ended 31 December 2024 ($'000) Europe Israel Other & inter-segment transactions Continuing operations, total Discontinued operations Total
Net cash from / (used in) operating activities 24,085 888,988 3,784 916,857 204,910 1,121,767
Cash outflow for investing activities (42,555) (436,814) (30,293) (509,662) (299,757) (809,419)
Net cash from financing activities 10,838 (583,706) 9,963 (562,905) 136,868 (426,037)
Net increase/(decrease) in cash and cash equivalents (7,632) (131,532) (16,546) (155,710) 42,021 (113,689)
Cash and cash equivalents at beginning of the period 17,000 286,625 31,298 334,923 11,849 346,772
Effect of exchange rate fluctuations on cash held (268) 2,635 671 3,038 (851) 2,187
Cash and cash equivalents at end of the period 9,100 157,728 15,423 182,251 53,019 235,270
Year ended 31 December 2023 ($'000) Europe Israel Egypt Other & inter-segment transactions Total
Net cash from / (used in) operating activities 25,737 586,570 52,032 (8,152) 656,187
Cash outflow for investing activities (134,681) (194,833) (91,238) 4,294 (416,458)
Net cash from financing activities 65,012 (129,801) 26,896 (289,461) (327,354)
Net increase/(decrease) in cash and cash equivalents (43,932) 261,936 (12,310) (293,319) (87,625)
Cash and cash equivalents at beginning of the period 58,340 24,825 26,825 317,898 427,888
Effect of exchange rate fluctuations on cash held 775 (136) (3,281) 9,151 6,509
Cash and cash equivalents at end of the period 15,183 286,625 11,234 33,730 346,772
4. Revenue
($'000) 2024 2023 (Restated(( 39 )))
Revenue from crude oil sales 70,633 33,567
Revenue from hydrocarbon liquids sales 400,230 265,355
Revenue from gas sales 840,164 681,018
Compensation to gas buyers - (4,929)
Rendering of services and other revenue 3,707 3,484
Total Revenue 1,314,734 978,495
Sales for the year ended 31 December (Kboe) 2024 2023 (Restated(( 40 )))
Israel
Gas 35,399 28,416
Oil 5,351 3,492
UK
Gas 27 23
Oil 344 228
Greece
Oil 572 196
Total 41,693 32,355
5. Operating profit/(loss)
($'000) 2024 2023 (Restated(( 41 )))
(a) Cost of sales
Staff costs 28,163 19,544
Energy cost 13,510 13,833
Royalty payable 219,273 167,179
Other operating costs 42 128,761 107,137
Depreciation and amortisation (note 8) 292,753 215,965
Oil stock movement 14,228 (14,142)
Stock (underlift)/overlift movement 5,752 (230)
702,440 509,286
(b) Administration expenses
Staff costs 12,296 13,033
Other General & Administration expenses 6,280 2,929
Share-based payment charge included in administrative expenses 8,040 6,429
Depreciation and amortisation (note 8 & 9) 3,107 2,908
Auditor fees 2,246 2,006
31,969 27,305
(c) Exploration and evaluation expenses
Staff costs for Exploration and evaluation activities 506 444
Exploration costs written off (note 9) 81,737 26,589
Other exploration and evaluation expenses 1,403 2,159
83,646 29,192
(d) Expected credit loss
Expected credit loss expense 4,928 -
4,928 -
(e) Other expenses
Loss from disposal of Property plant & Equipment - 190
Transaction costs associated with the disposal of the ECL Group (note 17) 5,188 -
Other expenses 1,825 3,992
7,013 4,182
(f) Other income
Other income 1,925 1,687
1,925 1,687
(g) Impairment of oil and gas assets
Impairment of oil and gas assets (note 8) 95,448 342
95,448 342
6. Net finance cost
($'000) 2024 2023 (Restated(( 43 )))
Interest on bank borrowings 15,957 6,104
Interest on Senior Secured Notes 201,254 193,009
Interest expense on long term payables 2,091 7,120
Less amounts included in the cost of qualifying assets (14,626) (17,416)
204,676 188,817
Finance and arrangement fees 2,553 8,985
Commission charges for bank guarantees 3,575 2,274
Other finance costs and bank charges 2,099 (110)
Unwinding of discount on right of use asset 958 733
Unwinding of discount on long term trade payables 14,417 8,753
Unwinding of discount on provision for decommissioning 11,567 11,762
Unwinding of discount on deferred consideration - 5,674
Unwinding of discount on convertible loan - 4,450
Less amounts included in the cost of qualifying assets (722) (243)
Total finance costs 239,123 231,095
Interest income from time deposits (9,806) (14,318)
Other finance income (5,005) -
Total finance income (14,811) (14,318)
Foreign exchange losses 1,446 3,010
Net financing costs 225,758 219,787
7. Taxation
(a) Taxation charge
($'000) 2024 2023 (Restated(( 44 )))
Current income tax charge (81,796) (2,035)
Adjustments in respect of current income tax of previous year(s) (30) 3
Total current tax charge (81,826) (2,032)
Deferred tax relating to origination and reversal of temporary 29,484 (67,642)
differences (note 10)
Income tax expense reported in the Income statement (52,342) (69,674)
(b) Reconciliation of the total tax charge
The tax rate applied to the Group's profits in preparing the reconciliation
below is the main corporation tax rate of 25.0% applicable in the United
Kingdom.
The effective tax rate for the period is 32% (2023: 46%).
The tax (charge) for the period can be reconciled to the accounting profit per
the Group Income statement as follows:
($'000) 2024 2023 (Restated(( 45 )))
Accounting profit before tax from continuing operations 168,266 171,736
Profit before tax from discontinued operations 108,763 172,428
Profit before tax 277,029 344,164
Tax calculated at 25% UK standard tax rate (2023: 23.5%)(( 46 )) (69,257) (80,879)
Impact of overseas rate differential 2,891 2,645
Non recognition of deferred tax on current year tax losses and other temporary (11,153) (42,086)
differences
Recognition of previously unrecognised deferred tax/ Derecognition of 15,627 (27,107)
previously recognised deferred tax 47
Permanent differences(( 48 )) (32,853) (12,623)
Foreign taxes (38) (29)
Tax effect of non-taxable income and allowances 1,359 2,556
Other adjustments 302 (109)
Prior year tax (( 49 )) 4,165 (1,598)
Income tax expense reported in the statement of profit or loss (52,342) (69,674)
Income tax attributable to discontinued operations (36,615) (89,556)
Total taxation expense (88,957) (159,230)
There are no income tax consequences attached to the payment of dividends in
either 2024 or 2023 by the Group to its shareholders.
Pillar Two legislation has been enacted or substantively enacted in certain
jurisdictions in which the Group operates. The Group exceeded the applicable
threshold of €750 million for two subsequent years (FY2023 and FY2024) and
therefore, it shall be within the Pillar Two rules from accounting years
starting as of 01 January 2025. The Group is not expected to have a material
exposure to Pillar Two income taxes in any of the jurisdictions where it
operates as the applicable tax rates exceed the minimum tax rate of 15%.
In line with the amendments to IAS 12, the exception from recognising and
disclosing information about deferred tax assets and liabilities related to
Pillar Two income taxes has been applied. On 29 July 2024, the UK Government
announced changes in the Energy Profits Levy (EPL) with effective date 1st
November 2024. Specifically, the EPL rate increased to 38% from 1 November
2024, bringing the headline rate of tax on upstream oil and gas activities to
78%. The government removed the investment allowances from the Energy Profits
Levy, including by abolishing the levy's main 29% investment allowance for
qualifying expenditure incurred on or after 1 November 2024. Based on the
taxable profits forecasts, EPL of c. $17.8 million is expected to be paid up
until March 2030.
8. Property, plant & equipment
($'000) Oil and gas assets Leased assets 50 Other property, plant and equipment Total
Property, Plant & Equipment at Cost:
At 1 January 2023 4,739,424 58,712 60,118 4,858,254
Additions 469,023 38,278 2,203 509,504
Lease modification - 8,706 - 8,706
Disposal of assets (111,448) - (111,448)
Capitalised borrowing cost 17,658 - - 17,658
Change in decommissioning provision prprovision decommissioning provision (2,504) - - (2,504)
Other movements (313) - (307) (620)
Foreign exchange impact 89,811 2,582 2,090 94,483
At 31 December 2023 5,201,651 108,278 64,104 5,374,033
Additions 320,754 5,777 5,300 331,831
Lease modification - 180 - 180
Disposal of assets - - (287) (287)
Capitalised borrowing cost 15,348 - - 15,348
Change in decommissioning provision (30,224) - - (30,224)
Transfer within property, plant and equipment (2,939) - 2,939 -
Transfer to inventory (448) - - (448)
Transfer from intangible assets 205,324 - - 205,324
Transfer to assets held for sale (1,277,911) (71,939) (1,001) (1,350,851)
Foreign exchange impact (102,273) (2,776) (11,240) (116,289)
At 31 December 2024 4,329,282 39,520 59,815 4,428,617
Accumulated Depreciation and Impairment:
At 1 January 2023 542,894 29,298 54,158 626,350
Charge for the period 287,926 15,432 1,808 305,166
Impairments 342 - - 342
Foreign exchange impact 67,387 1,607 1,856 70,850
At 31 December 2023 898,549 46,337 57,822 1,002,708
Charge for the period 331,685 13,630 1,516 346,831
Impairment 95,607 - - 95,607
Disposal - - (170) (170)
Transfer to assets held for sale (271,045) (32,740) (2,121) (305,906)
Foreign exchange impact (84,518) (1,719) (2,968) (89,205)
At 31 December 2024 970,278 25,508 54,079 1,049,865
Net carrying amount:
At 31 December 2023 4,303,102 61,941 6,282 4,371,325
At 31 December 2024 3,359,004 14,012 5,736 3,378,752
Borrowing costs capitalised for qualifying assets during the year are
calculated by applying a weighted average interest rate of 3.93% for the year
ended 31 December 2024 (for the year ended 31 December 2023: 5.52%).
The additions to Oil & gas properties in 2024 are mainly due to
development costs of Katlan, Karish North, the second oil train in Israel at
the amount of $172.4 million and the Cassiopea project in Italy at the amount
of $105.2 million before it was moved to assets held for sale.
On 20 June 2024, property, plant, and equipment owned by the disposal group,
with a carrying value of $1,045 million (primarily in Italy and Egypt; see
note 17 for further details), were reclassified as assets held for sale.
Depreciation on these assets ceased once they were classified as held for
sale.
In 2024, due to additional delays in the development of Epsilon, a full
impairment assessment of the Prinos CGU was held. As a result of this
assessment, the Group recorded an impairment of $92.3 million on oil and gas
assets within the Prinos CGU (Europe operating segment). The recoverable
amount of the CGU was determined to be $202.6 million as of 31 December 2024,
based on a value in use calculation. This calculation utilised cash flow
projections from the annual budget and Group's five-year mid-term plan
approved by senior management and estimates of proven and probable reserves
which is based on independent competent persons report (CPR). The extended
forecast period up to 2049 is justified by the economic life of the Epsilon
oil field, aligning with its expected operational duration and industry
practice for long-term asset evaluation.
The Group assessed the recoverability of its investment in the Katakolo
license due to the lack of progress, resulting in a full impairment of the
accumulated capital expenditure up to the reporting date, totalling $3.3
million.
9. Intangible assets
($'000) Exploration and evaluation assets Goodwill Other Intangible assets Total
Intangible assets at Cost:
At 1 January 2023 338,354 101,146 10,975 450,475
Additions 56,379 - 273 56,652
Other movements 313 - 307 620
Exchange differences 2,670 - (12) 2,658
31 December 2023 397,716 101,146 11,543 510,405
Additions 247,794 - 1,196 248,990
Transfer to property, plant and equipment (205,324) - (205,324)
Transfer to assets held for sale (99,069) - (6,978) (106,047)
Exchange differences (6,021) - (425) (6,446)
At 31 December 2024 335,096 101,146 5,336 441,578
Accumulated amortisation and impairments:
At 1 January 2023 130,448 18,310 5,339 154,097
Charge for the period 46 - 932 978
Impairment 26,583 2,175 - 28,758
Exchange differences 1,197 - (14) 1,183
31 December 2023 158,274 20,485 6,257 185,016
Charge for the period - - 923 923
Impairment 142,943 - 42 142,985
Transfer to assets held for sale (63,450) - (3,821) (67,271)
Exchange differences (5,031) - (354) (5,385)
31 December 2024 232,736 20,485 3,047 256,268
Net carrying amount
At 31 December 2023 239,442 80,661 5,286 325,389
At 31 December 2024 102,360 80,661 2,289 185,310
Goodwill arises principally because of the requirement to recognise deferred
tax assets and liabilities for the difference between the assigned values and
the tax bases of assets acquired and liabilities assumed in a business
combination.
During the period, the Group made significant additions to key ongoing
projects, including $133.2 million mainly related to the Katlan project in
Israel prior to the final investment decision was taken in July 2024, $65.2
million for the Company's partnership with Chariot Limited in Morocco's
Anchois gas development, and $17.1 million for the Orion exploration and $31.0
million for the Location B exploration in Egypt.
During the reporting period, total impairments of $142.9 million were
recognised due to several non-viable projects. Notably, the Orion X1
exploration well in Egypt, which reached its target reservoir but failed to
discover commercial hydrocarbons, resulted in a complete impairment of the
exploration asset valued at $61.2 million. Additionally, the decision to exit
following the expiration of the exploration license in Ioannina on 2 April
2024 led to a full impairment of its related asset valued at $16.5 million.
Moreover, the Group has the intention to transfer the license rights in
Morocco following exploration results that identified non-commercial reserves,
necessitating a full impairment of the related exploration asset amounting to
$65.2 million.
The Group exited the Isabella license in December 2023, resulting in the full
impairment of the related exploration asset valued at $26.6 million and
goodwill of $2.2 million.
On 20 June 2024, intangible assets owned by the disposal group, with a
carrying value of $ 43.6 million (in Italy and Egypt; see note 17 for further
details), were reclassified as assets held for sale. Amortisation on these
assets ceased once they were classified as held for sale.
The remaining goodwill balance is in relation to the Israel CGU ($75.8
million), and UK ($4.8 million). We have performed the annual goodwill
impairment test and note that no reasonably possible change would result in
impairment.
10. Net deferred tax (liability)/asset
Deferred tax (liabilities)/assets ($'000) Property, plant and equipment Right of use asset IFRS 16 Decom-missioning Prepaid expenses and other receivables Inventory Tax losses Deferred expenses for tax Retirement benefit liability Accrued expenses and other short‑term liabilities Total
At 1 January 2023 (148,923) (1,078) 126,246 186 440 197,008 6,208 165 5,860 186,112
Increase / (decrease) for the period through:
Profit or loss (13,874) (2,644) (26,955) (2,225) (440) (57,185) (630) 163 3,958 (99,832)
Other comprehensive income - - - - - - - 38 - 38
Exchange difference (1,197) (15) 4,269 (12) 6 5,043 3 304 8,401
31 December 2023 (163,994) (3,737) 103,560 (2,051) 6 144,866 5,578 369 10,122 94,719
Increase / (decrease) for the period through:
Continuing operations:
Profit or loss 8,976 634 8,509 (764) 413 14,714 (633) (39) (2,327) 29,483
Other comprehensive income 79 - 79
Exchange difference 1,250 44 (300) 35 (17) (7,027) (7) (287) (6,309)
Discontinued operations: -
Profit or loss (16,708) 8,787 5,866 231 (1,824)
Other comprehensive income 1 10 11
Exchange difference (511) (6,015) (1,406) (11) (7,943)
Transfer to assets / (liabilities) held for sale: 448 (97,421) (24,042) 9 (245) (121,251)
31 December 2024 (170,539) (3,059) 17,120 (2,780) 402 132,971 4,945 412 7,493 (13,035)
($'000) 2024 2023
Deferred tax liabilities (141,403) (122,785)
Deferred tax assets 128,368 217,504
(13,035) 94,719
The Group transferred to "Asset and Liabilities held for sale" deferred tax
assets amounting to the total of $121.3 million coming from Italy, as further
described in Note 17.
As of December 2024, the Group had gross total unused tax losses of $957.0
million (as of 31 December 2023: $907.4 million), of which $160.1 million
related to discontinued operations, available to offset against future profits
and other temporary differences. The Group has not recognised deferred tax on
tax losses and other differences of $686.1 million, of which $168.2 million
related to discontinued operations.
In Greece and the UK, the net DTA for carried forward losses recognised in
excess of the other net taxable temporary differences was $101.5 million and
$29.8 million (2023: $77.8 million and $8.7 million) respectively.
Greek tax losses (Prinos area) can be carried forward without limitation up
until the relevant concession agreement expires (by 2049), whereas the tax
losses in Israel, Italy and the United Kingdom can be carried forward
indefinitely. Based on the Prinos area forecasts (including the Epsilon
development with first oil anticipated in H2 2029), the deferred tax asset is
fully utilised by 2037. Finally, in the UK, decommissioning expenses and tax
losses are expected to be tax relieved up until 2029 in accordance with the
latest taxable profits forecasts. The latter are based on the competent
persons report (CPR) and the Group budget.
11. Cash and cash equivalents
($'000) 2024 2023
Cash and bank deposits 182,251 346,772
182,251 346,772
Bank demand deposits comprise deposits and other short-term money market
deposit accounts that are readily convertible into known amounts of cash. The
effective interest rate on short‑term bank deposits was 4.82% for the year
ended 31 December 2024 (2023: 4.371%).
12. Restricted cash
Restricted cash comprises cash retained under the Israel Senior Secured Notes
and the Greek State Loan requirement as follows:
Current
The current portion of restricted cash at 31 December 2024 was $82.43 million.
It mainly relates to the March 2025 coupon payment on Senior Secured Notes (at
31 December 2023 was $22.48 million)
Non-Current
The cash restricted for more than 12 months after the reporting date was $2.95
million (2023: $3.1 million) mainly comprising $2.15 million (2023: $2.3
million) held on the Interest Service Reserve Account ('ISRA') in relation to
the Greek Loan Notes and $0.8 million (2023: $0.8 million) for Prinos
Guarantee.
13. Trade and other receivables
($'000) 2024 2023
Trade and other receivables - Current
Financial items:
Trade receivables 111,898 297,305
Receivables from partners under JOA 290 1,996
Other receivables(( 51 )) 5,722 9,561
Refundable VAT 2,993 19,273
Accrued interest income 1,048 1,016
121,951 329,151
Non-financial items:
Deposits and prepayments(( 52 )) 10,311 19,174
Other deferred expense 192 4,932
10,503 24,106
132,454 353,257
Trade and other receivables - Non-Current
Financial items:
Other tax recoverable 15,693 15,544
15,693 15,544
Non-financial items:
Deposits and prepayments 15,399 17,612
Other non-current assets 1,881 526
17,280 18,138
32,973 33,682
14. Borrowings
($'000) 2024 2023
Non-current
Bank borrowings - after one year but within five years
4.875% Senior Secured notes due 2026 ($625 million) 622, 102 619,932
Bank borrowings - more than five years
6.5% Senior Secured notes due 2027 ($450 million) 445,797 444,313
5.375% Senior Secured notes due 2028 ($625 million) 619,602 618,145
5.875% Senior Secured notes due 2031 ($625 million) 617,689 616,762
8.50% Senior Secured notes due 2033 ($750 million) 734,820 733,653
BSTDB Loan and Greek State Loan Notes 101,894 108,392
Carrying value of non-current borrowings 3,141,904 3,141,197
Current
Revolving credit facility 128,000 80,000
Carrying value of current borrowings 128,000 80,000
Carrying value of total borrowings 3,269,904 3,221,197
The Group has provided security in respect of certain borrowings in the form
of share pledges, as well as fixed and floating charges over certain assets of
the Group.
At 31 December 2024 the Group holds US$2.625 billion in aggregate principal
amount of senior secured notes, issued in four series as follows:
· US$625 million, issued on 24 March 2021, maturing on 30 March
2026, with a fixed annual interest rate of 4. 875%.
· US$625 million, issued on 24 March 2021, maturing on 30 March
2028, with a fixed annual interest rate of 5.375%.
· US$625 million, issued on 24 March 2021, maturing on 30 March
2031, with a fixed annual interest rate of 5.875%.
· US$750 million, issued on 11 July 2023, maturing on 30 September
2033, with a fixed annual interest rate of 8.5%.
The interest on each series is paid semi-annually on 30 March and 30
September. The notes are listed for trading on the TACT Institutional of the
Tel Aviv Stock Exchange Ltd (TASE), and the TASE-UP for the 2023 issuance.
The Group has provided various collateral, including fixed charges over
shares, leases, sales agreements, bank accounts, operating permits, insurance
policies, exploration licenses, and the Energean Power FPSO. Floating charges
cover present and future assets of relevant subsidiaries.
Additionally, the Group issued US$450 million in senior secured notes on 18
November 2021, maturing on 30 April 2027 with a fixed annual interest rate of
6.5%. These notes are listed on the Official List of the International Stock
Exchange (TISE), with interest paid semi-annually on 30 April and 30 October.
Energean Oil and Gas SA entered into a loan agreement on 27 December 2021 with
Black Sea Trade and Development Bank for €90.5 million for the development
of the Epsilon Oil Field, with an interest rate of EURIBOR plus margins, and
another agreement with the Greek State for €9.5 million maturing in 8 years
with a fixed rate plus margin.
Finally, the Group signed a three-year $275 million Revolving Credit Facility
(RCF) on 8 September 2022, increased to $300 million in May 2023, led by ING
Bank N.V. The RCF provides additional liquidity for corporate needs, with an
interest rate of 5% plus SOFR on drawn amounts. During the reporting period,
the Company utilised $65 million from this facility at an average interest
rate of 10.3%, with $30 million repaid subsequent to the reporting date. In
March 2025, the Group extended its $300 million RCF until September 2028, at a
revised amount of $200 million effective September 2025.
15. Provisions
($'000) Decommissioning Provision for litigation and other claims Total
At 1 January 2023 808,757 9,346 818,103
New provisions 4,913 - 4,913
Change in estimates (24,413) (2,076) (26,489)
Recognised in property, plant and equipment (7,417) - (7,417)
Recognised in profit& loss (16,996) (2,076) (19,072)
Spend (18,697) - (18,697)
Reclassification (1,023) - (1,023)
Unwinding of discount 31,255 - 31,255
Currency translation adjustment 29,884 240 30,124
At 31 December 2023 830,676 7,510 838,186
Current provisions 51,824 - 51,824
Non-current provisions 778,852 7,510 786,362
At 1 January 2024 830,676 7,510 838,186
New provisions - - -
Change in estimates (36,447) 355 (36,092)
Recognised in property, plant and equipment (30,224) - (30,224)
Recognised in profit& loss (6,223) 355 (5,868)
Spend (23,179) - (23,179)
Unwinding of discount 22,107 - 22,107
Transfer to liabilities held for sale (481,161) (7,678) (488,839)
Currency translation adjustment (19,700) (187) (19,887)
At 31 December 2024 292,295 - 292,295
Current provisions 58,260 - 58,260
Non-current provisions 234,035 - 234,035
Decommissioning provision
The decommissioning provision represents the present value of decommissioning
costs relating to oil and gas properties, which are expected to be incurred up
to 2042 when the producing oil and gas properties are expected to cease
operations. The future costs are based on a combination of estimates from an
external study completed in previous years and internal estimates. These
estimates are reviewed annually to take into account any material changes to
the assumptions. However, actual decommissioning costs will ultimately depend
upon future market prices for the necessary decommissioning works required
that will reflect market conditions at the relevant time. Furthermore, the
timing of decommissioning is likely to depend on when the fields cease to
produce at economically viable rates. This, in turn, will depend upon future
oil and gas prices and the impact of energy transition and the pace at which
it progresses which are inherently uncertain.
The decommissioning provision represents the present value of decommissioning
costs relating to assets in Greece, UK, and Israel.
The decommissioning provision related to Italy and Croatia has been
reclassified to liabilities held for sale; see note 17 for further details. No
provision has been recognized for Egypt as there is no legal or constructive
obligation as of 31 December 2024.
The principal assumptions used in determining decommissioning obligations for
the Group are shown below:
Inflation assumption Discount rate assumption Cessation of production assumption Spend in 2024 2024 ($'000) 2023 ($'000)
Continuing operations:
Greece 2% - 2.04% 3.59% 2049 - 12,966 19,359
UK 2.02% 4.46% 2029 12,394 181,616 202,874
Israel 2.15%- 2.7% 4.86% 2044 - 85,357 92,613
Discontinued operations:
Italy 1.78%- 2.2% 3.88% 2024-2038 29,358 459,781 497,827
Croatia 1.78%- 2.2% 3.88% 2025 - 21,380 18,003
Total 41,752 761,100 830,676
16. Trade and other payables
($'000) 2024 2023
Trade and other payables-Current
Financial items:
Trade accounts payable 177,476 225,451
Payables to partners under JOA 53 9,601 170,470
Deferred licence payments due within one year 54 46,154
-
Other payables 55 35,627 53,756
Contingent consideration 91,075
-
Short term lease liability 6,336 16,498
Deferred income 548
-
VAT payable 4,228 20
233,268 603,972
Non-financial items:
Accrued expenses 56 48,871 65,033
Other finance costs accrued 51,460 63,893
Social insurance and other taxes 2,243 4,705
102,574 133,631
335,842 737,603
Trade and other payables- Non- Current
Financial items:
Trade and other payables 57 80,020 117,796
Long term lease liability 8,471 48,598
88,491 166,394
Non-financial items:
Social insurance 792 529
792 529
89,283 166,923
17. Discontinued operations
On 20 June 2024, the Group publicly announced the decision of its Board of
Directors to sell its portfolio in Egypt, Italy and Croatia (together referred
to as "Energean Capital Limited Group", "ECL" or "ECL Group"), fully owned and
controlled by the Group.
The sale of ECL is expected to be completed in Q2 2025 and is contingent upon
securing regulatory approvals in Italy and Egypt and antitrust approvals in
Italy, Egypt and the Common Market for Eastern and Southern Africa ("COMESA").
In December, Carlyle received unconditional clearance from the COMESA
Competition Commission, which was the final remaining anti-trust approval.
Upon completion of the disposal, the Group will receive:
o $504 million in upfront cash consideration at the closing of the
transaction;
o Adjustments for working capital and cash between 31 December 2023, and the
closing date;
o A $139 million Vendor Loan with a tenor of 6 years and 3 months, accruing
interest at SOFR + 7% in the first year, increasing by 0.5% annually
thereafter;
o Up to $125 million in contingent consideration, adjusted for inflation
based on the US CPI index from 1 January 2024, contingent upon:
o Italian oil and gas production exceeding annual reference volumes from
2025-2028, as outlined in the YE23 Competent Person's Report (CPR).
o Brent and Italian PSV gas prices exceeding annual reference prices from
2025-2028.
o The contingent payment is calculated as 25% of the incremental commodity
price multiplied by actual production, payable annually from 2025 to 2028.
At 31 December 2024, ECL Group was classified as a disposal group held for
sale ("HFS") and as a discontinued operation. The business of ECL Group
represented the entirety of the Group's Egypt operating segment until 20 June
2024. With ECL being classified as discontinued operations, the Egypt segment
is no longer presented in the segment note. ECL operations in Italy and
Croatia were previously included in the Group's Europe operating segment, they
are no longer presented within this segment. The results of ECL for the twelve
months ended 31 December 2024 are presented below:
Note A:
The tables below present the ECL Group's financial results, showing financial
results from discontinued operations before and after adjustments for the
reporting periods. The adjustments include (1) intra-group transactions such
as interest income and expenses, allowances for related party loans, and costs
from transactions between the disposal group and other entities within the
Energean plc Group (continuing operations) and (2) adjustments made by the
Group related to discontinued operations classification including the
adjustment to depreciation and amortisation following the HFS classification
date. These items were not eliminated in the carve-out view (refer to
"Discontinued operations, before adjustments"), thereby reflecting the related
party transactions for the ECL Group before consolidation adjustments for
discontinued operations. Financial results presented for discontinued
operations before the mentioned adjustments are non-IFRS measures.
($'000) 2024 2023
(Note A) Discontinued Discontinued operations, Discontinued operations, before adjustments Discontinued operations,
operations, before adjustments total total
Revenue 470,030 464,679 447,237 441,138
Cost of Sales (290,888) (222,348) (254,268) (250,260)
Gross profit 179,142 242,331 192,969 190,878
Administration expenses (20,399) (17,438) (17,206) (15,768)
Change in decommissioning provision (25,568) (25,568) 35,348 35,348
Exploration and evaluation expenses (66,087) (66,087) (4,896) (4,896)
Impairment of oil and gas assets (159) (159) - -
Expected credit loss (2,554) (2,554) (4,375) (4,375)
Other expenses (4,881) (4,881) (770) (750)
Other income 864 864 6,293 6,293
Operating profit 60,358 126,508 207,363 206,730
Finance Income 2,572 575 5,423 5,183
Finance Costs (44,547) (32,405) (30,857) (19,300)
Unrealised loss on derivatives - - (6,610) (6,610)
Net foreign exchange loss 14,116 14,085 (13,574) (13,574)
Profit before tax from discontinuing operations 32,499 108,763 161,745 172,429
Taxation (expense)/ income:
Related to pre-tax profit/(loss) from the ordinary activities for the period (32,169) (36,615) (89,556) (89,556)
Related to remeasurement to fair value less costs to sell - - - -
(Loss)/ Profit for the period from discontinuing operations 330 72,148 72,189 82,873
The major classes of assets and liabilities of ECL Group classified as held
for sale as at 31 December are, as follows:
($'000) 2024 2023
(Note A) Discontinued Discontinued operations, Discontinued operations, before adjustments Discontinued operations,
operations, before adjustments total total
ASSETS
Property, plant and equipment 1,136,606 1,201,632 1,000,748 1,000,748
Intangible assets 31,068 31,113 54,667 54,667
Equity-accounted investments 4 4 4 4
Deferred tax asset 125,697 121,250 131,018 131,018
Inventories 72,615 72,615 75,123 75,123
Loans receivable from related party 102,435 - 77,389 -
Trade and other receivables 292,343 290,273 221,799 213,872
Cash and cash equivalents 53,014 53,019 11,849 11,849
Total assets 1,813,782 1,769,906 1,572,597 1,487,281
LIABILITIES
Retirement benefit liability 1,033 1,033 1,188 1,188
Provisions 526,001 526,001 523,339 523,339
Trade and other payables 547,826 545,065 470,713 456,671
Loans payable to related party 354,271 - 172,294 -
Current tax Liability 3,813 3,813 7,597 7,597
Total liabilities 1,432,944 1,075,912 1,175,131 988,795
Net assets directly associated with disposal group 380,838 693,994 397,466 498,486
The net cashflows incurred by ECL during twelve months are, as follows:
($'000) 2024 2023
Operating 205,583 78,029
Investing (299,747) (173,825)
Financing 139,333 25,151
Net cash (outflow)/inflow 45,169 (70,645)
2024 2023
Earnings per share $ cents $ cents
Basic, (loss)/profit for the year from discontinued operations $0.39/share $0.46/share
Diluted, (loss)/profit for the year from discontinued operations $0.39/share $0.46/share
18. Dividends
In line with its dividend policy, Energean paid dividends of US$1.2 per share
in 2024, covering four quarters of payments. Similarly, in 2023, the company
also distributed US$1.2 per share over four quarters.
US$ cents per share $' 000
2024 2023 2024 2023
Dividends announced and paid in cash
Ordinary shares
March 30 30 54,844 53,252
June 30 30 54,991 53,411
September 30 30 54,990 53,518
December 30 30 54,990 53,517
Total 120 120 219,815 213,698
1 Uptime is defined as the number of hours that the Energean Power FPSO was
operating and excludes scheduled shutdown days.
2 On 20 June 2024, the Group publicly announced that it has entered into a
binding agreement for the sale of its portfolio in Egypt, Italy and Croatia
(together referred to as "Energean Capital Limited Group" or "ECL"), fully
owned and controlled by the Group. Completion of the transaction remains
subject to customary regulatory approvals. The "continuing operations" refers
to the Group's remaining operations outside of the transaction perimeter, i.e.
its operations in Israel, Greece, UK and Morocco.
3 Reserves life defined as Group year-end 2024 2P reserves (1,058 mmboe)
over Group 2024 working interest production (56 mmboe).
4 Includes the Q4 2024 declared dividend of 30 US cents per share, which
Energean will initiate payment for on 31 March 2025.
5 On 20 June 2024, the Group publicly announced that it has entered into a
binding agreement for the sale of its portfolio in Egypt, Italy and Croatia
(together referred to as "Energean Capital Limited Group" or "ECL"), fully
owned and controlled by the Group. Completion of the transaction remains
subject to customary regulatory approvals. The "continuing operations" refers
to the Group's remaining operations outside of the transaction perimeter, i.e.
its operations in Israel, Greece, UK and Morocco.
6 Uptime is defined as the number of hours that the Energean Power FPSO was
operating and excludes scheduled shutdown days.
7 Based upon continuing operations YE24 2P reserves (911 mmboe) over 2024
production (42 mmboe).
8 Payment date is stated as the date upon which payment is to be initiated
by Energean.
9 Step down to $200 million commitments in September 2025 as of the date of
this announcement.
10 Each quarter subject to Board approval.
11 Adjusted EBITDAX is calculated as profit or loss for the period, adjusted
for discontinued operations, taxation, depreciation and amortisation,
share-based payment charge, impairment of property, plant and equipment, other
income and expenses, net finance costs and exploration and evaluation
expenses.
12 Based upon continuing operations YE24 2P reserves (911 mmboe) over 2024
production (42 mmboe).
13 Uptime is defined as the number of hours that the Energean Power FPSO was
operating and excludes scheduled shutdown days.
14 Subject to formal extension approvals.
15 On 20 June 2024, the Group publicly announced that it has entered into a
binding agreement for the sale of its portfolio in Egypt, Italy and Croatia
(together referred to as "Energean Capital Limited Group" or "ECL"), fully
owned and controlled by the Group. These assets are classified as Assets Held
for Sale in the Financial Statements. Completion of the transaction remains
subject to customary regulatory approvals.
16 As of the date of this announcement, the total available commitments step
down to $200 million in September 2025 (the facility size remains $300
million).
17 The figures presented for the Energean Group in the table and narrative
below represent total group numbers, including discontinued operations. For
IFRS reporting purposes, discontinued operations are summarised as a single
line item on the Annual Consolidated Income Statement, while revenue and costs
shown in the statement reflect only continuing activities.
18 Cash cost of production is defined later in the financial review.
19 Cash G&A is defined later in the financial review.
20 Adjusted EBITDAX is defined later in the financial review. Energean uses
adjusted EBITDAX as a core business KPI.
21 Inclusive of restricted cash
22 Restated for discontinued operations, refer to Note 17 for further
detail.
23 Restated for discontinued operations, refer to Note 17 for further
detail.
24 Restated for discontinued operations, refer to Note 17 for further
detail.
25 Reserve is used to recognise remeasurement gain or loss on cash flow
hedges and actuarial gain or loss from the defined benefit pension plan.
26 Refers to the Equity component of $50million of convertible loan notes,
which were issued in February 2021 and converted into equity at maturity in
December 2023.
27 Share-based payments reserve is used to recognise the value of
equity-settled share-based payments granted to parties including employees and
key management personnel, as part of their remuneration.
28 Reserve is used to record unrealised exchange differences arising from
the translation of the financial statements of entities within the Group that
have a functional currency other than US dollar.
29 Restated for discontinued operations, refer to Note 17 for further
detail.
30 Non-cash revenues from Egypt arise due to taxes being deducted at source
from invoices as such revenue and tax charges are grossed up to reflect this
deduction but no cash inflow or outflow results.
31 Restated for discontinued operations, refer to Note 17 for further
detail.
32 In 2023 $4.5 million is the unwinding of the discount on the convertible
loan notes (as disclosed in note 6). The notes were converted to ordinary
shares on 20 December 2023.
33 Adjusted EBITDAX is a non-IFRS measure used by the Group to measure
business performance. It is calculated as profit or loss for the period,
adjusted for taxation, depreciation and amortisation, share-based payment
charge, impairment of property, plant and equipment, other income and expenses
(including the impact of derivative financial instruments and foreign
exchange), net finance costs and exploration and evaluation expenses.
34 Restated for discontinued operations, refer to Note 17 for further
detail.
35 Adjusted EBITDAX is a non-IFRS measure used by the Group to measure
business performance. It is calculated as profit or loss for the period,
adjusted for taxation, depreciation and amortisation, share-based payment
charge, impairment of property, plant and equipment, other income and expenses
(including the impact of derivative financial instruments and foreign
exchange), net finance costs and exploration and evaluation expenses.
36 Group's portfolio in Egypt, Italy and Croatia has been identified as
assets held for sale in 2024, please refer to Note 17 for further detail.
37 Capital expenditure is defined as additions to property, plant and
equipment and intangible exploration and evaluation assets less
decommissioning asset additions, right-of-use asset additions, capitalised
share-based payment charge and capitalised borrowing costs.
38 Capital expenditure is defined as additions to property, plant and
equipment and intangible exploration and evaluation assets less
decommissioning asset additions, right-of-use asset additions, capitalised
share-based payment charge and capitalised borrowing costs.
39 Restated for discontinued operations, refer to Note 17 for further
detail.
40 Restated for discontinued operations, refer to Note 17 for further
detail.
41 Restated for discontinued operations, refer to Note 17 for further
detail.
42 Other operating costs comprise of insurance costs, gas transportation and
treatment fees concession fees and
planned maintenance costs.
43 Restated for discontinued operations, refer to Note 17 for further
detail.
44 Restated for discontinued operations, refer to Note 17 for further
detail.
45 Restated for discontinued operations, refer to Note 17 for further
detail.
46 During the reporting period the Group changed the tax rate used in the
tax reconciliation from a weighted average tax rate to the UK main corporation
tax rate of 25.0%. The ratione behind the change was that the majority of the
Group's profits generated in tax jurisdictions where the statutory tax rate is
not materially different to the UK main corporation tax rate of 25.0%
providing a more meaningful reconciliation. In the comparative period, the
weighted average rate of the statutory tax rates in Greece (22%/25%), Cyprus
(12.5%) Israel (23%), Italy (24%), United Kingdom (25%/75%) and Egypt (40.55%)
was used weighted according to the profit or loss before tax earned by the
Group in each jurisdiction.
47 In 2024 the Group reassessed the recoverability of its deferred tax asset
on the decommissioning provision in Italy which resulted in a tax credit of c.
$8.8 million. This is attributable to the discontinued operations. In
addition, the Group adjusted its UK DTA based on the updated taxable
forecasts, which resulted in a tax credit of c. $19.0 million.
48 Permanent differences mainly consisted of non-deductible impairment
losses of assets in Egypt, Greece and Morocco ($22.9 million), non-deductible
M&A costs ($1.4 million), other non-deductible expenses ($3.2 million) and
foreign exchange losses ($5.4 million).
49 Adjustment recognised in the period related to Italian income taxes
(IRES/IRAP) of 2023, as a result of the approval of the Italian tax
authorities to reinstate certain historic tax attributes which were not
available previously.
50 Included in the carrying amount of leased assets at 31 December 2024 are
right of use assets related to Oil and gas properties and Other property,
plant and equipment of $12.7 million and $1.3 million respectively (2023:
$58.0 million and $3.9 million). The depreciation charged on these classes for
the year ending 31 December 2024 was $13.2 million and $0.4 million
respectively (2023: $13.4 million and $2.0 million).
51 Other receivables in 2023 mainly comprise the consideration receivable
from INGL as discussed in note 16.
52 Included in deposits and prepayments, are mainly prepayments for goods
and services under the GSP Engineering, Procurement, Construction and
Installation Contract (EPCIC) for Epsilon project.
(( 53 )) ( )Payables to partners under the JOA include both payables and
working capital estimates provided by the operators. The decrease in 2024 is
due to the payables to partners for JOAs in Italy and Egypt being classified
as held for sale. Refer to Note 17 for further details.
(( 54 )) In December 2016, Energean Israel acquired the Karish and Tanin
offshore gas fields for an initial payment of $40.0 million, with an
additional obligation of $108.5 million plus interest, to be paid in ten equal
annual instalments at an annual inflation rate of 4.6%. In November 2023, a
settlement agreement was reached, allowing the remaining balance to be settled
in two instalments, both completed in the first half of 2024. As of 31
December 2024, the full consideration has been paid.
(( 55 )) Other payables primarily consist of royalties accrued in Israel
($35.5 million as of 31 December 2024, $32 million as of 31 December 2023) and
in Italy ($18 million as of 31 December 2023, with no inclusion as of 31
December 2024).
(37) Accrued expenses mainly relate to development expenditure incurred in
Israel (Katlan) and Morocco (Anchois).
57 ( )The amount comprises the following long-term amounts payable:
(1) $61.8 million refers to EPCIC contract. Following the amendment
to the terms of the deferred payment agreement with Technip informally reached
by the parties in December 2023 and unchanged upon signing in February 2024
the remaining amount payable under the EPCIC contract reduced to $210 million.
The amount is payable in twelve equal quarterly deferred payments starting in
March 2024 and therefore has been discounted at 8.668%. p.a. (being the yield
rate of the senior secured loan notes, maturing in 2026, at the date of
agreeing the payment terms). As of 31 December 2024, four instalments have
been paid.
(2) $18.3 million refers to Public Power Corporation Contract (PPC).
In July 2024, the parties entered into a settlement agreement regarding the
PPC contract, with an agreed balance of $28 million payable in 48 monthly
instalments. Consequently, this liability has been discounted at an annual
rate of 7.9%, which corresponds to the actual interest rate on the Group's
Greek loan at the time the payment terms were set. As of 31 December 2024,
seven instalments have been paid.
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