RNS Number : 9908E
Energean PLC
20 May 2026
ENERGEAN ISRAEL LIMITED
UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
31 MARCH 2026
ENERGEAN ISRAEL LIMITED
UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 MARCH 2026
INDEX
Page
Interim Consolidated Statement of Comprehensive Income
2
Interim Consolidated Statement of Financial Position
3
Interim Consolidated Statement of Changes in Equity
4
Interim Consolidated Statement of Cash Flows
5
Notes to the Interim Consolidated Financial Statements
6-21
- - - - - - - - - - - - - - - - - - - -
ENERGEAN ISRAEL LIMITED
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
THREE MONTHS ENDED 31 MARCH 2026
Notes
31 March 2026 (Unaudited) $'000
31 March 2025 (Unaudited) $'000
Revenue
3
181,127
253,283
Cost of sales
4
(104,302)
(132,342)
Gross profit for the period
76,825
120,941
Administrative expenses
4
(6,362)
(5,335)
Exploration and evaluation expenses
4
-
(1,994)
Other (expenses)/ income
4
(524)
9,500
Operating profit for the period
69,939
123,112
Finance income
5
1,402
1,692
Finance costs
5
(39,350)
(41,148)
Net foreign exchange losses
5
(955)
(3,283)
Profit for the period before tax
31,036
80,373
Taxation expense
6
(7,282)
(18,409)
Net profit for the period
23,754
61,964
Other comprehensive income (loss):
Items that may be reclassified subsequently to profit or loss:
(Loss)/ Income on cash flow hedge for the period
15
(4,728)
17,211
Income tax on items that may be reclassified to profit andloss
15
1,087
(3,959)
Other comprehensive income (loss) for the period
(3,641)
13,252
Total comprehensive income for the period
20,113
75,216
The accompanying notes are an integral part of these unaudited interim consolidated financial statements.
ENERGEAN ISRAEL LIMITED
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS OF 31 MARCH 2026
Notes
31 March 2026 (Unaudited) $'000
31 December 2025 (Audited) $'000
ASSETS:
NON-CURRENT ASSETS:
Property, plant and equipment
7
3,104,945
3,077,029
Intangible assets
8
148,530
147,477
Derivative financial instruments
15
208
3,931
Other receivables
10,900
12,282
3,264,583
3,240,719
CURRENT ASSETS:
Trade and other receivables
10
50,672
145,902
Derivative financial instruments
15
17,111
21,705
Inventories
11
25,802
20,991
Restricted cash
12
2,194
97,647
Cash and cash equivalents
158,522
118,819
254,301
405,064
TOTAL ASSETS
3,518,884
3,645,783
EQUITY AND LIABILITIES:
EQUITY:
Share capital
1,708
1,708
Share premium
212,539
212,539
Hedges reserve
15
13,335
19,740
Retained earnings
162,595
177,841
TOTAL EQUITY
390,177
411,828
NON-CURRENT LIABILITIES:
Borrowings
12
2,747,359
2,744,085
Decommissioning provision
86,946
89,999
Deferred tax liabilities
9
79,042
75,995
Trade and other payables
13
3,896
4,417
2,917,243
2,914,496
CURRENT LIABILITIES:
Trade and other payables
13
211,464
311,134
Income tax liability
6
-
8,325
211,464
319,459
TOTAL LIABILITIES
3,128,707
3,233,955
TOTAL EQUITY AND LIABILITIES
3,518,884
3,645,783
19 May 2026
Date of approval of the interim consolidated financial statements
Panagiotis Benos Director
Matthaios Rigas Director
The accompanying notes are an integral part of these unaudited interim consolidated financial statements.
ENERGEAN ISRAEL LIMITED
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
THREE MONTHS ENDED 31 MARCH 2026
Share capital $'000
Share Premium $'000
Hedges Reserve $'000
Retained earnings $'000
Total equity $'000
Balance as of 1 January 2026 (Audited)
1,708
212,539
19,740
177,841
411,828
Transactions with shareholders:
Dividend, see note 14
-
-
-
(39,000)
(39,000)
Comprehensive Income:
Profit for the period
-
-
-
23,754
23,754
Other comprehensiveloss
-
-
(3,641)
-
(3,641)
Total comprehensive income
-
-
(3,641)
23,754
20,113
Cashflow hedges - basis adjustment transferred to PPE
-
-
(3,590)
-
(3,590)
Cashflow hedge - deferred tax related to basis adjustment
-
-
826
-
826
Balance as of 31 March 2026 (Unaudited)
1,708
212,539
13,335
162,595
390,177
At 1 January 2025 (Audited)
1,708
212,539
(266)
27,499
241,480
Transactions with shareholders:
Dividend, see note 14
-
-
-
(67,600)
(67,600)
Comprehensive Income:
Profit for the period
-
-
-
61,964
61,964
Cashflow hedge, net of tax
-
-
13,252
-
13,252
Total comprehensive income
-
-
13,252
61,964
75,216
Balance as of 31 March 2025 (Unaudited)
1,708
212,539
12,986
21,863
249,096
The accompanying notes are an integral part of these unaudited interim consolidated financial statements.
ENERGEAN ISRAEL LIMITED
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED 31 MARCH 2026
Notes
31 March 2026 (Unaudited) $'000
31 March 2025 (Unaudited) $'000
Operating activities
Profit for the period before tax
31,036
80,373
Adjustments to reconcile profit before taxation to net cash provided by: operating activities:
Depreciation, depletion and amortisation
4
49,165
57,453
Impairment of exploration and evaluation asset
4
-
1,994
Other expenses
4
524
-
Finance income
5
(1,402)
(1,692)
Finance expenses
5
39,350
41,148
Net foreign exchange loss
5
955
3,283
Cash flow from operations before working capital
119,628
182,559
Decrease in trade and other receivables
108,080
20,351
Increase in inventories
(4,811)
(1,410)
Decrease in trade and other payables
(42,298)
(22,134)
Cash flow from operations
180,599
179,366
Income tax paid
(13,620)
(18,109)
Net cash inflows from operating activities
166,979
161,257
Investing activities
Payment for purchase of property, plant and equipment (PP&E)
7(C)
(80,904)
(66,902)
Payment for exploration and evaluation, and other intangible assets
8(B)
(1,525)
(646)
Loan granted to Related Party (1)
-
(28,000)
Movement in restricted cash, net
12
95,453
80,873
Income on derivatives
117
-
Interest received
2,195
2,622
Net cash inflow (outflow) from investing activities
15,336
(12,053)
Financing activities
Transaction costs in relation to borrowing issuance
12
-
(5,860)
Drawdown of borrowings
12
-
75,000
Borrowings - interest paid
12
(98,295)
(82,482)
Dividends paid
14
(39,000)
(67,600)
Other finance cost paid
(2,097)
(395)
Repayment of obligations under leases
13
(2,350)
(1,511)
Net cash outflow used in financing activities
(141,742)
(82,848)
Net increase in cash and cash equivalents
40,573
66,356
Cash and cash equivalents at beginning of period
118,819
157,728
Effect of exchange differences on cash and cash equivalents
(870)
(757)
Cash and cash equivalents at end of period
158,522
223,327
(1) An interim dividend of US$28.25 million was declared in May 2025 and was settled through the offset of a loan to the parent company, including accrued interest.
The accompanying notes are an integral part of these unaudited interim consolidated financial statements.
NOTE 1: - General
a. Energean Israel Limited (the "Company") was incorporated in Cyprus on 22 July 2014 as a private company with limited liability under the Companies Law, Cap. 113. As of 1 January 2024, the Company is tax resident in the UK by virtue of having transferred its management and control from Cyprus to the UK, with its registered address being at One Great Cumberland Place, London, W1H 7AL.
b. The Company and its subsidiaries (the "Group") have been established with the objective of the exploration, production and commercialisation of natural gas and hydrocarbon liquids. The Group's main activities are performed in Israel by its Israeli Branch.
c. As of 31 March 2026, the Company had investments in the following subsidiaries:
Name of subsidiary
Country of incorporation / registered office
Principal activities
Shareholding At 31 March 2026 (%)
Shareholding At 31 December 2025 (%)
Energean Israel Transmission LTD
121, Menachem Begin St. Azrieli Sarona Tower, POB 24, Tel Aviv 6701203 Israel
Gas transportation license holder
100
100
Energean Israel Finance LTD
Financing activities
100
100
d. The Group's core assets as of 31 March 2026 comprised:
Country
Asset
Working interest
Field phase
Israel
Karish including Karish North (1)
100%
Production
Israel
Tanin (1)
100%
Development
Israel
Katlan (Block 12) (2)
100%
Development
Israel
Blocks 23, 31 (3)
100%
Exploration
(1) The concession agreement expires in 2044.
(2) The concession agreement expires in 2054.
(3) Refer to Note 8.
e. There have been no significant changes to related parties since 31 December 2025, refer to note 22 in the 2025 Group's annual consolidated financial statements for more information.
NOTE 2: - Accounting policies and basis of preparation
The interim consolidated financial information included in this report has been prepared in accordance with IAS 34 "Interim Financial Reporting". The results for the interim period are unaudited and, in the opinion of management, include all adjustments necessary for a fair presentation of the results for the period ended 31 March 2026. All such adjustments are of a normal recurring nature. The unaudited interim consolidated financial statements do not include all the information and disclosures that are required for the annual financial statements and must be read in conjunction with the Group's annual consolidated financial statements for the year ended 31 December 2025.
These financial statements are presented in U.S. Dollars and all values are rounded to the nearest thousand dollars except where otherwise indicated.
NOTE 2: - Accounting policies and basis of preparation (Cont.)
The financial information presented herein has been prepared in accordance with the accounting policies expected to be used in preparing the Group's annual consolidated financial statements for the year ended 31 December 2026 which are the same as those used in preparing the annual consolidated financial statements for the year ended 31 December 2025.
The directors consider it appropriate to adopt the going concern basis of accounting in preparing these interim consolidated financial statements. The Going Concern assessment covers the period up to 30 June 2027, "the forecast period".
Since 7 October 2023, regional geopolitical risk has remained elevated. The intensification of tensions in the Middle East has increased the security risks to essential infrastructure, including the Energean Power FPSO offshore Israel, which may be exposed to missile fire or sabotage. Any event affecting production from the Karish and Karish North fields could have a material adverse impact on the Group's business, results of operations, cash flows, financial condition and prospects.
On 28 February 2026, the Ministry of Energy and Infrastructure ordered the temporary suspension of production and activities of the Energean Power FPSO following further escalation of geopolitical tensions in the region. On 9 April 2026, the Ministry of Energy and Infrastructure instructed the safe restart and resumption of production and operations of the Energean Power FPSO, and Energean acted in accordance with those instructions. Production of the Energean Power FPSO was resumed and the FPSO became fully operational on 10 April 2026.
Throughout 2026 and subsequent to the reporting period, Energean has maintained all necessary measures to support the continuity of business operations (subject to any governmental instructions), including the mobility of its people and the security of its information.
NOTE 3: - Revenues
31 March 2026 (Unaudited) $'000
31 March 2025 (Unaudited) $'000
Revenue from gas sales (1)
144,413
178,458
Revenue from hydrocarbon liquids sales (2)
36,714
74,825
Total revenue
181,127
253,283
(1) Sales gas for three months ended 31 March 2026 totaled approximately 0.96 bcm (billion cubic metres) and for three months ended 31 March 2025 totaled approximately 1.19 bcm.
(2) Sales from hydrocarbon liquids for three months ended 31 March 2026 totaled approximately 532 kbbl (kilo barrel) and for three months ended 31 March 2025 totaled approximately 1,042 kbbl.
See also Note 2 regarding the temporary suspension of production of the Energean Power FPSO.
NOTE 4: - Operating profit before taxation
31 March 2026 (Unaudited) $'000
31 March 2025 (Unaudited) $'000
(a) Cost of sales
Staff costs
6,264
5,105
Energy cost
906
658
Royalty payable
32,052
44,821
Depreciation (Note 7)
48,548
56,884
Other operating costs (1)
20,742
26,085
Oil stock movement
(4,210)
(1,211)
Total cost of sales
104,302
132,342
(b) Administration expenses
Staff costs
2,638
1,710
Share-based payment charge
321
279
Depreciation and amortisation (Note 7, 8)
617
569
Auditor fees
81
69
Other general & administration expenses (2)
2,705
2,708
Total administrative expenses
6,362
5,335
(c) Exploration and evaluation expenses
Impairment of exploration and evaluation asset (3)
-
1,994
Total exploration and evaluation expenses
-
1,994
(d) Other expenses
Loss from disposal of property, plant and equipment
524
-
Total other expenses
524
-
(e) Other income
Other income(4)
-
9,500
Total other income
-
9,500
(1) Other operating costs comprise of insurance costs and planned maintenance costs.
(2) The Administration expenses mainly consist of legal expenses, intercompany management fees and external advisors' fees.
(3) The licence for Block 21 expired on 13 January 2025. Capitalized costs associated with Block 21 were written off. (Refer to Note 8)
(4) The amount of US$9.5 million relates to insurance compensation due to remedial work on auxiliary piping systems.
NOTE 5: - Net finance costs
31 March 2026 (Unaudited) $'000
31 March 2025 (Unaudited) $'000
Interest expense on borrowing (Note 12)
50,289
42,957
Less amounts included in the cost of qualifying assets (Note 7(A))
(14,966)
(6,628)
35,323
36,329
Costs related to parent company guarantees
387
556
Other finance costs and bank charges
1,160
534
Unwinding of discount on trade payable (Note 13(1))
1,335
2,731
Unwinding of discount on provision for decommissioning
1,056
1,019
Unwinding of discount on lease liability (1)
131
167
Less amounts included in the cost of qualifying assets (Note 7(A))
(42)
(188)
4,027
4,819
Total finance costs
39,350
41,148
Interest income from related parties
-
(34)
Interest income from time deposits
(1,282)
(1,675)
Loss (income) from derivatives operation
(117)
17
Other interest income
(3)
-
Total finance income
(1,402)
(1,692)
Net foreign exchange losses
(955)
(3,283)
Net finance costs
38,903
42,739
NOTE 6: - Taxation
1. Corporate Tax rates applicable to the Company:
Israel:
The Israeli corporate tax rate is 23% in 2026 and 2025.
United Kingdom:
Starting from 1 January 2024, the company's control and management was transferred from the Republic of Cyprus to the United Kingdom ("UK") and as such the company's tax residency migrated from Cyprus to UK from the first day of the accounting period. The applicable tax rate in the UK is 25%.
The Group's taxable profits arise in Israel through the Israeli branch and are taxed at the Israeli statutory tax rate of 23%. No material taxable income was generated at the UK parent entity level.
Under s.18A of the UK CTA 2009, the Company made an election for the branch of Energean Israel Limited (and any other branches that may open from time to time) to be exempt from UK corporation tax from its first accounting period commencing on 1 January 2024 and all subsequent accounting period.
NOTE 6: - Taxation (Cont.)
2. The Income and Natural Resources Taxation Law, 5771-2011 - Israel- the main provisions of the law are as follows:
In April 2011, the Knesset passed the Income and Natural Resources Tax Law, 5771-2011 ("the Law"), introducing an oil and gas profits levy at a rate calculated as described. The rate of the levy will be calculated according to a proposed R factor mechanism, according to the ratio between the net accrued revenues from the project and the cumulative investments as defined in the law. A minimum levy of 20% will be levied at the stage where the R factor ratio reaches 1.5, and when the ratio increases, the levy will increase gradually until the maximum rate of 50% until the ratio reaches 2.3. In addition, it was determined that the rate of the levy as stated will be reduced starting in 2017 by multiplying 0.64 by the difference between the corporate tax rate prescribed in section 126 of the Income Tax Ordinance for each tax year and the tax rate of 18%. In accordance with the corporate tax rate from 2018 onwards, the maximum rate will be 46.8%.
In addition, additional provisions were prescribed regarding the levy, inter alia, the levy will be recognised as an expense for the purpose of calculating income tax; The limits of the levy shall not include export facilities; The levy will be calculated and imposed for each reservoir separately (Ring Fencing); Payment by the owner of an oil right calculated as
a percentage of the oil produced, the recipient of the payment will be liable to pay a levy according to the amount of the
payment received, and this amount will be subtracted from the amount of the levy owed by the holder of the oil right. The law also sets rules for the unification or separation or consolidation of oil projects for the purposes of the Law. In accordance with the provisions of the Law, the Group is not yet required to pay any payment in respect of the said levy, and therefore no liability has been recognised in the financial statements in respect of this payment.
3. Taxation charge:
31 March 2026 (Unaudited) $'000
31 March 2025 (Unaudited) $'000
Current income tax charge
(2,322)
(15,414)
Deferred tax relating to origination and reversal of temporary differences (Note 9)
(4,960)
(2,995)
Total taxation expense
(7,282)
(18,409)
NOTE 7: - Property, Plant and Equipment
a. Composition:
First half
Oil and gas Assets $'000
Leased assets $'000
Furniture, fixtures and equipment $'000
Total $'000
Cost:
At 1 January 2025
3,360,476
18,349
2,741
3,381,566
Additions
390,756
8,988
937
400,681
Lease disposal
-
(11,250)
-
(11,250)
Capitalised borrowing cost
40,144
-
-
40,144
Change in decommissioning provision
547
-
-
547
Total cost at 31 December 2025 (Audited)
3,791,923
16,087
3,678
3,811,688
Additions (1)
67,468
(36)
429
67,861
Asset disposal
(868)
-
-
(868)
Capitalised borrowing cost
13,931
-
-
13,931
Change in decommissioning provision
(4,109)
-
-
(4,109)
Total cost at 31 March 2026 (Unaudited)
3,868,345
16,051
4,107
3,888,503
Depreciation:
At 1 January 2025
453,452
9,387
1,452
464,291
Charge for the year
271,276
5,755
527
277,558
Lease disposal
-
(7,190)
-
(7,190)
Total depreciation at 31 December 2025 (Audited)
724,728
7,952
1,979
734,659
Charge for the period
46,679
2,189
143
49,011
Asset disposal
(112)
-
-
(112)
Total Depreciation at 31 March 2026 (Unaudited)
771,295
10,141
2,122
783,558
At 31 December 2025 (Audited)
3,067,195
8,135
1,699
3,077,029
At 31 March 2026 (Unaudited)
3,097,050
5,910
1,985
3,104,945
(1) The additions to oil & gas assets in Q1 2026 mainly relate to the Katlan development.
Second oil train lift safely and successfully performed in Q4 2024; commissioning activities are ongoing and are expected to complete by around the end of May, which will result in an increase in liquids' production capacity.
Borrowing costs capitalised for qualifying assets during the year are calculated by applying a weighted average interest rate of 7.89% for the period ended 31 March 2026 (for the year ended 31 December 2025: 7.02%).
NOTE 7: - Property, Plant and Equipment (Cont.)
b. Depreciation expense for the year has been recognised as follows:
31 March 2026 (Unaudited) $'000
31 March 2025 (Unaudited) $'000
Cost of sales
48,548
56,884
Administration expenses
463
444
Total
49,011
57,328
c. Cash flow statement reconciliations:
31 March 2026 (Unaudited) $'000
31 March 2025 (Unaudited) $'000
Additions and disposals to property, plant and equipment
66,993
95,618
Associated cash flows
Payments for additions to property, plant and equipment
(80,904)
(66,902)
Non-cash movements/presented in other cash flow lines
Right-of-use asset additions
36
(149)
Asset disposal
868
-
Lease payments related to capital activities
2,350
1,511
Movement in working capital
10,657
(30,078)
d. Details of the Group's rights in petroleum and gas assets are presented in note 1.
NOTE 8: - Intangible Assets
a. Composition:
Exploration and evaluation assets $'000
Other Intangible assets(1) $'000
Total $'000
Cost:
At 1 January 2025
94,366
2,866
97,232
Additions
1,860
51,498
53,358
Capitalized borrowing cost
-
580
580
31 December 2025 (Audited)
96,226
54,944
151,170
Additions
164
8
172
Capitalized borrowing cost
-
1,035
1,035
At 31 March 2026 (Unaudited)
96,390
55,987
152,377
Amortisation:
At 1 January 2025
-
1,129
1,129
Charge for the year
-
570
570
Impairment of exploration and evaluation assets
1,994
-
1,994
Total Amortisation at 31 December 2025 (Audited)
1,994
1,699
3,693
Charge for the period
-
154
154
Total Amortisation at 31 March 2026 (Unaudited)
1,994
1,853
3,847
At 31 December 2025 (Audited)
94,232
53,245
147,477
At 31 March 2026 (Unaudited)
94,396
54,134
148,530
The additions to other intangible assets in Q1 2026 are mainly related to Nitzana pipeline, see note (1) below.
(1) Nitzana transmission agreement- In October 2025, the company signed a transmission agreement with Israel Natural Gas Lines Ltd. ("INGL") for capacity in the Nitzana pipeline. The agreed terms in the transmission agreement are for the supply of up to 1 bcm/year up to 6 bcm total contracted supply for a 15-year period, with provisions for extensions and early termination. The terms also include rights, during the construction phase, to access available capacity in the Jordan-North pipeline. Nitzana is expected to be operational no later than Q4 2028.
The Company's 16.4% share of the construction costs for the pipeline and compression station is expected to be approximately US$100 million (excludes contingency amounts, which may add up to an additional 12%, as per the transmission agreement) and will primarily be funded via the Unsecured Term Loan. Refer to note 16 below. During the fourth quarter of 2025, approximately US$50 million was paid, representing approximately 50% of the total expected investment. The remaining investment will be made in accordance with the milestones set out in the agreement with INGL. Subsequent to the reporting date, during the second quarter of 2026, an additional approximately US$10 million was paid, representing approximately 10% of the total expected investment.
As the Group does not obtain ownership of, or control over, the physical pipeline asset, but instead acquires a contractual right to access defined transportation capacity for a period of 15 years, the arrangement has been recognised as an intangible asset in accordance with IAS 38. The asset will be amortised on a straight-line basis over the 15-year access period from the date the pipeline becomes operational.
NOTE 8: - Intangible Assets (Cont.)
b. Cash flow statement reconciliations:
31 March 2026 (Unaudited) $'000
31 March 2025 (Unaudited) $'000
Additions to intangible assets
172
819
Associated cash flows
Payment for additions to intangible assets
(1,525)
(646)
Non-cash movements/presented in other cash flow lines
Movement in working capital
1,353
(173)
c. Details on the Group's rights in the intangible assets:
Right
Type of right
Valid date of the right
Group's interest as at 31 March 2026
Block 23
Licence
13 January 2027
100%
Block 31
Licence
13 January 2027
100%
d. Additional information regarding the Exploration and Evaluation assets:
As of 31 March 2026, the Group holds two licences to explore for gas and oil, Block 23 and Block 31, which are located in the economic waters of the State of Israel. In January 2025 the licences for Blocks 23 and 31 were extended until 13 January 2027.
The licence for Block 21 was not extended and expired on 13 January 2025.
NOTE 9: - Deferred taxes
The Group is subject to corporation tax on its taxable profits in Israel at the rate of 23%. The Capital Gain Tax rates depends on the purchase date and the nature of asset. The general capital tax rate for a corporation is the standard corporate tax rate.
Tax losses can be utilised for an unlimited period, and tax losses may not be carried back.
According to Income Tax (Deductions from Income of Oil Rights Holders) Regulations, 5716-1956, the exploration and evaluation expenses of oil and gas assets are deductible in the year in which they are incurred.
Below are the items for which deferred taxes were recognised:
Property, plant and equipment & intangible assets $'000
Right of use asset IFRS 16 $'000
Deferred expenses for tax $'000
Staff leaving indemnities $'000
Accrued expenses and other short‑term liabilities and other long‑term liabilities $'000
Derivative asset $'000
Total $'000
At 1 January 2025
(73,090)
(2,028)
2,709
292
2,992
79
(69,046)
Increase/(decrease) for the year through:
Profit or loss
(679)
190
(546)
5
59
-
(972)
Other comprehensive income
-
-
-
-
-
(8,469)
(8,469)
Cashflow hedge related to basis adjustment
2,492
2,492
At 31 December 2025 (Audited)
(73,769)
(1,838)
2,163
297
3,050
(5,898)
(75,995)
At 1 January 2026
(73,769)
(1,838)
2,163
297
3,050
(5,898)
(75,995)
Increase/(decrease) for the period through:
Profit or loss
(4,997)
512
(46)
-
(429)
-
(4,960)
Other comprehensive loss
-
-
-
-
-
1,087
1,087
Cashflow hedge related to basis adjustment
-
-
-
-
-
826
826
At 31 March 2026 (Unaudited)
(78,766)
(1,326)
2,117
297
2,621
(3,985)
(79,042)
31 March 2026 (Unaudited) $'000
31 December 2025 (Audited) $'000
Deferred tax liabilities
(84,077)
(81,424)
Deferred tax assets
5,035
5,429
(79,042)
(75,995)
NOTE 10: - Trade and other receivables
31 March 2026 (Unaudited) $'000
31 December 2025 (Audited) $'000
Financial items Trade receivables
Trade receivables
18,404
121,006
Receivables from related parties
-
6
Other receivables (2)
5,814
5,737
Accrued interest income
9
968
24,227
127,717
Non-financial items
Prepayments
10,737
10,231
Refundable excise
8,323
7,954
VAT receivable
4,803
-
Prepaid income tax
2,582
-
26,445
18,185
Total trade and other receivables
50,672
145,902
(2) The balance relates to the final amount related the agreement with Israel Natural Gas Lines ("INGL") for the transfer of title (the "Hand Over") of the near shore and onshore segments of the infrastructure that delivers gas from the Energean Power FPSO into the Israeli national gas transmission grid is approximately US$5 million and is expected to be received in 2026.
NOTE 11: - Inventories
31 March 2026 (Unaudited) $'000
31 December 2025 (Audited) $'000
Hydrocarbon liquids
4,751
1,031
Natural gas
434
506
Raw materials and supplies
20,617
19,454
Total
25,802
20,991
NOTE 12: - Borrowings
Senior secured notes (the "Notes"):
On 24 March 2021 (the "Issue Date"), Energean Israel Finance Ltd (a 100% subsidiary of the Company) issued US$2,500 million of senior secured notes. The proceeds were primarily used to prepay in full the Project Finance Facility.
On 11 July 2023, Energean Israel Finance Ltd. completed the offering of US$750 million aggregate principal amount of the Notes with a fixed annual interest rate of 8.5%. The proceeds were used mainly to repay Energean Israel's US$625 million Notes series due in March 2024. On 21 September 2025, Energean Israel Finance Ltd redeemed in full the US$625 million Notes series due in March 2026, see below disclosure regarding the US$750 Million Secured Term Loan. As of 31 March 2026, the group has three Senior secured notes series of the total amount of US$2,000 Million.
US$750 Million Term Loan:
In February 2025 Energean Israel Finance Ltd signed a 10-year, senior-secured term loan with banking corporation in Israel as the facility agent and arranger for US$750 million (the "Term Loan" and the "Term Loan Agent", respectively). The purpose of Term Loan was to refinance its 2026 senior secured notes and provide additional liquidity for the Katlan development. Up to US$475 million is in US dollars and up to US$275 million is in New Israeli Shekel. The Term Loan bears a floating interest rate of SOFR plus a margin on the USD component and the Bank of Israel (BOI) rate plus a margin on the ILS component. The Term Loan is secured on the assets of the Group (including the Company's shares), pari passu with the senior secured Notes, non-recourse to Energean plc and has a bullet repayment in 2035.
As of 31 March 2026, Energean Israel Finance Ltd drew down the full US$750 million amount of the Term Loan.
US$70 Million Unsecured Term Loan:
In October 2025, the Company signed an unsecured term loan facility agreement with a banking corporation in Israel for US$70 million ("Unsecured Term Loan"), to fund the development of the Nitzana pipeline (see note 8(1)). The Unsecured Term Loan bears a floating interest rate of SOFR plus a margin and non-utilization fee.
During October 2025, the Company drew US$33.2 million from the above facility loan and US$36.2 million was drawn as a letter of credit in favor of INGL.
Composition:
Series
Type
Maturity
Annual Interest rate
31 March 2026 (Unaudited) Carrying value $'000
31 December 2025 (Audited) Carrying value $'000
Non-current
US$ 625 million
Senior secured notes
30 March 2028
5.375%
621,600
621,144
US$ 625 million
Senior secured notes
30 March 2031
5.875%
618,997
618,673
US$ 750 million
Senior secured notes
30 September 2033
8.5%
736,247
735,990
US$ 275 million
Secured term Loan
26 February 2035
3.1%+ BOI
282,144
279,850
US$ 475 million
Secured term Loan
26 February 2035
4.25%+ SOFR
456,331
456,580
US$ 33.2 million
Unsecured term Loan
30 September 2034
3.9%+ SOFR
32,040
31,848
Total
2,747,359
2,744,085
NOTE 12: - Borrowings (Cont.)
The interest on each series of the Notes and loans is paid semi-annually, on 30 March and on 30 September of each year.
The Notes are listed on the TACT Institutional of the Tel Aviv Stock Exchange Ltd. ("TASE").
With regards to the indenture document, signed on 24 March 2021 with HSBC BANK USA, N.A (the "Trustee"), no indenture default or indenture event of default has occurred and is continuing.
Collateral:
The Company has provided/undertakes to provide the following collateral in favor of HSBC BANK USA, N.A, which serves as the "Collateral Agent" under both the Notes and the Term Loan:
1) First rank fixed charges over the shares of Energean Israel Limited, Energean Israel Finance Ltd and Energean Israel Transmission Ltd, the Karish & Tanin Leases, the gas sales purchase agreements ("GSPAs"), several bank accounts, operating permits, insurance policies, the Company's exploration licences and the INGL Agreement.
2) Floating charge over all of the present and future assets of Energean Israel Limited and Energean Israel Finance Ltd (except specifically excluded assets).
3) The Energean Power FPSO.
Restricted cash:
As of 31 March 2026, the Company had short-term restricted cash of US$2.2 million (31 December 2025: US$97.6 million), which will be used for the September 2026 interest payment.
Credit rating:
The senior secured Notes have been assigned a Ba3 rating by Moody's and a BB- rating by S&P Global.
NOTE 13: - Trade and other payables
31 March 2026 (Unaudited) $'000
31 December 2025 (Audited) $'000
Current
Financial items
Trade accounts payable (1) NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
135,733
159,638
Payables to related parties
17,164
14,812
Other creditors (2)
16,478
36,803
Short term lease liabilities
3,199
5,002
172,574
216,255
Non-financial items
Accrued expenses
30,728
29,457
Other finance costs accrued
172
49,275
Deferred revenues
5,711
5,530
VAT payable
-
9,677
Social insurance and other taxes
2,279
940
38,890
94,879
Total current trade and other payables
211,464
311,134
Non-current
Financial items
Long term lease liabilities
3,569
4,008
3,569
4,008
Non-financial items
Accrued expenses to related parties
327
409
327
409
Total non-current trade and other payables
3,896
4,417
(1) The amount includes payable in terms of the EPCIC (Engineering, Procurement, Construction, Installation and Commissioning) contract to Technip. According to the agreement with the EPCIC contractor, the last US$210 million of the consideration will be paid in 12 equal quarterly deferred payments started in March 2024 and as such has been discounted at 8.67% per annum (being the yield rate of the senior secured loan notes, maturing in 2026, as at the date of agreeing the payment terms). As of 31 March 2026, nine installments have been paid and the remaining outstanding payable amounted to US$ 50.5 million (2025: US$67.1 million).
(2) The amount mainly comprises of royalties payables to the Israel government and third parties with regards to the Karish Lease, including US$5.7 million (2025: US$13.1 million) of royalties payable to third parties. Contractual royalties are payable to third-party holders at a total rate of 7.5%, increasing to 8.25% after the date at which the lease in question starts to pay the oil and gas profits levy. The royalty payable to third-party holders under the SPA )Sale and Purchase Agreement( is calculated on the value of the total amount of natural gas and condensate produced at the wellhead without any deduction (except for natural gas and Petroleum (as defined under the Petroleum Law) used in the production process). No contractual royalties under the SPA will be payable on future discoveries that were not part of the original acquisition of the Karish and Tanin leases.
NOTE 14: - Equity
Interim dividends:
Dividends of US$39.0 million were declared and paid during Q1 2026 (Q1 2025: US$67.6 million).
NOTE 15: - Financial Instruments
Fair Values of other financial instruments
The following financial instruments are measured at amortised cost and are considered to have fair values different to their book values.
31 March 2026 (Unaudited)
31 December 2025 (Audited)
Book Value $'000
Fair value $'000
Book Value $'000
Fair value $'000
Senior Secured Notes (Note 12)
1,976,844
1,956,750
1,975,807
2,026,375
The fair value of the Senior Secured Notes is within level 1 of the fair value hierarchy and has been estimated by discounting future cash flows by the relevant market yield curve at the balance sheet date. The Bank loans bears floating interest rates reset periodically to current market rates and its carrying amount is therefore considered to approximate its fair value. The fair values of other financial instruments not measured at fair value includes cash and short-term deposits, trade receivables and trade and other payables equate approximately to their carrying amounts.
Cash Flow Hedging
In February 2024, the Group entered into a forward transaction to hedge against foreign currency volatility risk associated with its deferred payment to EPCIC contractor. In addition, in January 2025 the Group entered into the forward contracts with a bank in Israel to manage the foreign currency risk related to EUR, NOK and GBP payments to suppliers under the Katlan EPCI contract. The forward contracts are subject to different maturity dates and are designed to match the Katlan Subsea development milestones completion payments under the host contract. Multi-currency instruments are effective from April 2025 to August 2027. The hedge relationship was deemed effective at inception, and in accordance with the Group's accounting policy, the transaction was subject to cash flow hedge accounting.
Consequently, as of 31 March 2026, the Group recorded a derivative asset of US$17.3 million, and other comprehensive loss of US$3.6 million, during the reporting period (31 December 2025, the Group recorded a derivative asset of US$25.6 million, and other comprehensive income of US$13.2 million during Q1 2025).
Financial risk management objectives
In addition to the risks discussed in the consolidated annual financial statements, due to the Term Loan (refer to note 12), the Company has some exposure to interest rate risk. The management carefully considers the future impact of the floating interest fluctuation and will consider mitigation plans as needed and implement accordingly.
NOTE 16: - Subsequent events
Production of the Energean Power FPSO was restored and the FPSO became fully operational on 10 April 2026. For more details see Note 2.
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