REG - Ithaca Energy PLC Delek Group - DLEKG - First Half Results: Six Months to 30 June 2025

Ithaca EnergyAnnouncement

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RNS Number : 9793V  Ithaca Energy PLC  20 August 2025

Please see the Full Audited Results in attached PDF

http://www.rns-pdf.londonstockexchange.com/rns/9793V_1-2025-8-19.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9793V_1-2025-8-19.pdf)

 

20 August 2025

ITHACA ENERGY PLC

("Ithaca Energy", the "Company" or the "Group")

First Half Results for the Six Months to 30 June 2025

 

Excellent H1 performance

Guidance upgrade for the full year reflects improved organic production
performance

and value-driven capital investment across the portfolio

 

Ithaca Energy today announced its unaudited financial results for the six
months ended 30 June 2025.

 

Key H1 2025 highlights- Strong production and adjusted EBITDAX supporting
investment in value-accretive growth and shareholder distributions:

·    Materially transformed business delivering consistently robust
performance:

-      Significant improvements in safety and environmental performance,
with >50% reduction in incident frequency and emissions

-      H1 2025 average production of 123.6 kboe/d (H1 2024: 53.0 kboe/d)

-      Adjusted H1 2025 EBITDAX over $1.1 billion (H1 2024: $533.0
million)

-      Material reduction in opex per barrel to $17.5/boe in H1 2025 from
$27.3/boe in H1 2024

-      Low pro forma leverage position of 0.32x with available liquidity
of over $1.2 bn

-      Additional 9 mmboe of oil hedges added in Q2 providing material
cash flow protection

·    Continuing to deliver highly attractive shareholder returns

-      First interim 2025 dividend of $167 million declared today,
representing dividend per share of $0.101, supporting the reaffirmation of the
Group's FY 2025 dividend target of $500 million

-      Expected acceleration of second interim 2025 dividend to December
2025, of $133 million, due to strong year-to-date performance and cash
generation totalling $500 million of cash distributions in 2025

·    Increased and targeted organic investment supporting production
upside, reliability enhancement and efficiency focus alongside incremental
investment in high return wells in the year

·    Significant progress towards unlocking long-term value creation in
West of Shetland area through targeted value-led investment:

-      Rosebank project execution progressing on all work fronts. Full
project update to be completed Q4 2025

-      18-month Cambo licence extension and completion of technical
refresh provides a clear pathway towards FID and potential farm-down

-      Tornado gas discovery prospect advancing through FEED towards FID,
with NSTA no-objection to the concept secured

·    Execution of UKCS growth strategy, increasing interests in
high-quality, well-understood assets:

-      Japex UK E&P acquisition completed 7 July 2025 demonstrating
deal execution capability

-      Acquisition of a further 46.25% stake in the Cygnus Field from
Spirit Energy expected to complete 1 October 2025, following receipt of NSTA
approval

 

FY 2025: An improving outlook driven by excellent delivery

·    Strong first half performance and ongoing investment supporting
upgrade to FY guidance:

-      FY production guidance range upgraded to 119-125 kboe/d from
109-119 kboe/d, (representing a 8 kboe/d increase at the mid-point)

-      Strong cost control with FY net operating cost guidance range
reduced to $790-840 million (representing an Opex per barrel cost of between
$17/boe to $19/boe) with cost reductions outweighing FX headwinds

-      Modest increase in net producing asset cost capital guidance to
$630-670 million reflecting non-cash FX headwinds and decisions to increase
investments in support of production upside potential in the J Area by
sanctioning additional well activity

-      Net Rosebank capital cost guidance range increased to $230-270
million with additional spend towards end of 2025 as the Floating Production
Storage and Offloading vessel (FPSO) nears yard work completion and targeted
sail-away date and reflecting non-cash FX headwinds

Executive Chairman, Yaniv Friedman, commented: "Our first-half results
demonstrate the strength and resilience of our transformed business. With
production more than doubling year-on-year and adjusted EBITDAX exceeding $1.1
billion, we are delivering on our strategy of disciplined investment and
operational excellence. As we adjust our guidance upwards for the remainder of
the year, we continue to remain focused on maximising long-term value creation
and returns for our shareholders. The declaration of a $167 million interim
dividend and expected acceleration of a second interim dividend of $133
million to December 2025, underscores our commitment to delivering sustainable
value to shareholders, reaffirming our full-year dividend target of $500
million. Strategic progress across our West of Shetland developments and
recent acquisitions executing on our UKCS growth strategy, further position us
for long-term growth."

  Financial key performance indicators (KPIs)
                                                 H1 2025  H1 2024
 Adjusted EBITDAX(1) ($m)                        1,117.0  533.0
 Profit before tax ($m)                          513.4    189.4
 Adjusted net income(1) ($m)                     128.7    124.7
 (Loss)/profit for the period(2) ($m)            (217.5)  105.7
 Basic EPS (cents)                               (13.2)   10.5
 Net cash flow from operating activities ($m)    1,004.6  559.8
 Unit operating expenditure(1) ($/boe)           17.5     27.3

                                                 H1 2025  Q4 2024
 Available liquidity (1) ($m)                    1,228.6  1,015.1
 Adjusted net debt (1) ($m)                      671.4    884.9
 Pro forma leverage ratio (1)                    0.32x    0.45x

 Other KPIs
                                                 H1 2025  H1 2024
 Total production (boe/d)                        123,566  53,046
 Tier 1 & Tier 2 process safety events           0        0
 Serious injury and fatality frequency           0        0

(1) Non-GAAP measure as set out on pages 48 to 51

(2) Reflects one-off, non-cash deferred tax charge in Q1 2025 of $327.6
million due to the two-year extension of EPL to 31 March 2030

H1 2025 Strategic Highlights

Successfully executing the Group's organic and inorganic value-orientated
growth strategy, with a clear vision for further scale, stability and strength
as we seek to maximise long-term value creation and returns for our
shareholders.

Organic growth: Investing to sustain and optimise production

·    Significant ongoing investment and well activity at Captain in H1
with progression of the 13th drilling campaign, including a work over on well
C47, and successful drilling, completion and production start-up of wells C73
and C74. Enhanced Oil Recovery (EOR) phase II well response remains in line
with expectations

·    The Safe Caledonia flotel arrived at the Captain field in June to
support backlog reduction and optimisation activities throughout the remainder
of 2025

·    Cygnus infill well campaign commenced with the first of the two firm
wells spud in H1 2025, with first production from the first well expected in
October, and a second well scheduled for Q4

·    Value-led investment in J Area focused on high-return opportunities
with additional well activity sanctioned at Judy East Flank and investment in
Joanne well stimulation activity, based on continued strong performance in the
area

·    Final planned Seagull well currently being completed, with first
production expected in Q4

·    Summer shutdown activity progressing well to plan, with significant
activity delivered in line with schedule during Q3

Organic Growth: Unlocking value creation opportunities in the West of Shetland
area

·    Improved regulatory and fiscal clarity:

-      Publication of the UK Government's Scope 3 Environmental Impact
Assessment guidance in June 2025 welcomed, supporting the reopening of OPREDs
consenting process and unlocking the Group's high-value, long-life resource
base, particularly in the West of Shetland, that will support UK energy
security for decades to come

-      Active participant in the UK Government's EPL successor regime
consultation that seeks to establish an oil and gas price mechanism for future
price shock scenarios, with outcome of consultation expected in Q4 2025

·    Rosebank development project activity ramping up in preparation for
key project milestones towards first production timeline of 2026/27

-      Additional 2025 capital spend forecast on FPSO modifications to
maintain sail-away date

-      Critical subsea installation scopes well-advanced with drilling
scheduled for Q1 2026

-      Application for refreshed consents proceeding in tandem, with
OPRED formally requesting a revised submission following the publication of
the Scope 3 assessment guidelines

·    Cambo licence extended by 18 months from 31 March 2026 to 30
September 2027, confirming the regulator's trust in the Group's ability to
continue progressing the project towards the licence milestones

·    Cambo project technical refresh delivered in H1 2025, leveraging the
technical capabilities of Eni to challenge and optimise the development
concept, with the aim of maximising project value and mitigating risks. During
H2, the Field Development Plan and Environmental Statement will be updated to
reflect the project optimisations, supporting the progression towards a Final
Investment Decision (FID) and potential farm-down, subject to fiscal and
regulatory clarity

·    Significant progression towards unlocking material organic growth
opportunities across the Group's resource base in H1:

-      NSTA approval of the Fotla and Tornado Development Concepts

-      Environmental Statements submission for both Fotla and Tornado
projects is the next key milestone

Inorganic growth: Pursuing consolidation strategy in UKCS, increasing stakes
in key assets

·    M&A activity in H1 aligned with Group's strategy to pursue
low-risk consolidation in its core UKCS basin. The bolt-on acquisitions have
increased the Group's ownership stakes in key assets across the portfolio, at
attractive investment metrics, where the Group believes additional upside
potential exists

·    The Group continues to maintain an active but patient pursuit of
M&A opportunities both in the UKCS and globally, in line with its focused
international expansion strategy, as set out at the Capital Markets Day
earlier this year

 

Acquisition of JUK completed 7 July 2025 demonstrating execution capabilities:

-     Increased stake in well-understood, high-quality, long-life Seagull
field from 35% to 50%, adding pro forma 2025 production of approximately 4 -
4.5 kboe/d

-     Transaction includes JUK's material tax losses of
approximately $215 million in both ring fence corporation tax (RFCT) and
supplementary charge (SC) as well as approximately $105 million EPL losses
as at the effective date of 1 January 2024, reflecting JUK's material
investment in the field

-     Completion payment of $136 million reflecting economic effective
date of 1 January 2024 and completion adjustments (Transaction consideration
of US$193 million)

-     Acquisition equates to a valuation of ~$10/boe (excluding tax
losses)

 

Acquisition of 46.25% stake in the Group's operated Cygnus Field from Spirit
Energy:

-     Increased stake in high-margin, low-emission operated Cygnus gas
field, adding additional gas production to the portfolio

-     Attractive investment metrics achieved, equating to a valuation of
< $7/boe per 2P Reserves (circa $10/boe including decommissioning costs net
of tax)

-     Ongoing infill drilling in area, with further upside potential

-     Adding circa 12.5 - 13.5 kboe/d net production on a pro forma basis,
and circa 4 kboe/d net annualised increase assuming a targeted completion date
of 1 October 2025, with NSTA approval received

Value creation and shareholder returns: Continued delivery of dividend
commitments

·    First interim 2025 dividend of $167 million declared today and
payable in September, representing a dividend per share of $0.101

·    Expected acceleration of second interim 2025 dividend to December
2025 of $133 million, due to strong year-to-date performance and cash
generation

·    Reaffirming dividend policy for 2025, of 30% post-tax cash flow from
operations (CFFO), at the top end of our capital allocation policy range of
15-30% post-tax CFFO, with today's dividend announcement supporting the
Group's FY 2025 dividend target of $500 million

H1 2025 Operational Update

·    Consistently improved performance across all operational metrics

·    Strong process safety performance with zero Tier 1 or Tier 2 events
recorded in the first half of the year and a material reduction in Total
Recordable Injury rate (TRIR) of over 50% from 2024, with 1.14 cases per
million hours from 2.6 in H1 2024

·    Significant reduction in Greenhouse Gas (GHG) emission intensity of
the Group's portfolio, bringing our gross operated emissions intensity to 16.9
kgCO(2)e/boe from 33.9 kgCO(2)e/boe in H1 2024

·    Average H1 production of 123.6 kboe/d (H1 2024: 53.0 kboe/d),
reflecting record quarterly production in Q1, the operating capacity of the
Group's diversified and enlarged portfolio, and consistently strong
operational performance

-     H1 2025 production split 59% liquids, 41% gas and 40% operated, 60%
non-operated

·    Improved operational performance highlighted by material improvement
in production efficiency in H1 across the Group's operated asset base
(consistently achieving higher than 2024 average of 80% and 2024 industry
average of 75%)

·    H1 2025 production reflects:

-     Planned summer shutdown activity commenced in June across the
portfolio including Cygnus and the Greater Stella Area, ahead of significant
turnaround activity in Q3

-     Production efficiency consistently above basin average and 2024
actual during H1, with strong delivery at the Group's operated Captain and
Cygnus assets as well as the non-operated Elgin Franklin, J Area, Seagull,
GBA, Schiehallion and Mariner assets

H1 2025 Financial Highlights

·    H1 2025 adjusted EBITDAX of $1,117.0 million (H1 2024: $533.0
million), following record quarterly adjusted EBITDAX performance in Q1 of
$653.2 million

·    Realised prices of $71/boe for oil and $71/boe for gas before hedging
results and $73/boe for oil and $71/boe for gas after hedging results (H1
2024: $87/boe for oil and $57/boe for gas before hedging results and $86/boe
for oil and $92/boe for gas after hedging results)

·    H1 2025 operating costs of $391.3 million (H1 2024: $263.3 million)
and unit operating expenditure of $17.5/boe (H1 2024: $27.3/boe) demonstrating
operational efficiencies and the high netback capability of the portfolio

·    H1 2025 profit before tax of $513.4 million (H1 2024: $189.4 million)

·    H1 loss for the period of $217.5 million (H1 2024: profit of $105.7
million) reflecting primarily a one-off, non-cash deferred tax charge in Q1
2025 of $327.6 million due to the two-year extension of EPL to 31 March 2030.
H1 2025 adjusted net income of $128.7 million (H1 2024: $124.7 million)

·    H1 2025 producing assets capex of $290 million (H1 2024: $178
million) and Rosebank capex of $130 million (H1 2024: $90 million)

·    Net cash flow from operating activities of $1,004.6 million (H1 2024:
$559.8 million) includes an increase in underlift during H1 of $99.1 million,
substantively all of which is expected to reverse through the remainder of FY
2025

·    Reduction in adjusted net debt at 30 June 2025 to $671.4 million (31
December 2024: $884.9 million)

·    Pro forma leverage ratio at 30 June 2025 of 0.32x (31 December 2024:
0.45x)

·    Material available liquidity at 30 June 2025 of $1,228.6 million (31
December 2024: $1,015.1 million) reflecting reduction in net debt and
providing a solid financial foundation for growth with additional available
accordion of over $700 million providing incremental liquidity potential of up
to circa $2bn

·    Material build on hedge position during Q2, with 9 million barrels of
positions traded at attractive hedge prices during the higher commodity price
window in June, to complement existing gas hedge book, providing strong cash
flow cover in 2025 and 2026. As at 30 June 2025, the Group had 38.9 million
barrels of oil equivalent (47% oil) hedged from Q3 2025 into 2027 at an
average floor price of $69/bbl for oil swaps, $68/bbl for oil puts/collar
floors and 99p/therm for gas swaps, and 81p/therm for gas puts/collar floors

 

FY 2025 Management Guidance

·    Management provides the following updates to guidance ranges for full
year 2025 (updated from 21 May 2025), reflecting excellent operational
performance in the first half of the year and continued organic value-driven
capital investment supporting production upside with increased investment in
high-return wells in the year:

-     FY 2025 production guidance range upgraded to 119-125 kboe/d from
109-119 kboe/d, driven by core asset production performance in H1 (acquisition
production unchanged from previous guidance) and reflecting planned summer
turnaround activity

-     FY 2025 net operating cost guidance range reduced to $790-840
million from $780-860 million (representing an Opex per barrel cost of between
$17/boe to $19/boe) with cost reductions outweighing FX headwinds

-     FY 2025 net producing asset capital cost guidance range increased to
$630-670 million from $580-640 million (excluding pre-FID projects and
Rosebank development) reflecting non-cash FX headwinds and decisions to
increase investments to support production upside potential in the J Area by
sanctioning additional well activity

-     FY 2025 net Rosebank project capital cost guidance range increased
to $230-270 million from $190-230 million due to additional capital spend
expected towards the end of 2025 as the FPSO nears yard work completion and
targeted sail-away date and reflecting non-cash FX headwinds

-     FY 2025 cash tax guidance increased to $270-300 million from
$235-265 million mainly due to increased production and profits in newly
integrated entities

·    Management guidance includes the acquisition of Japex UK E&P from
the completion date of 7 July (previous guidance assumed 1 July completion)
and the acquisition of an additional 46.25% stake in the Cygnus gas field
based on an estimated completion date for the transaction of 1 October 2025
(on the same basis as previously provided guidance)

·    Management updates the Group's expected production exit rate at the
end of 2025 to circa 140 kboe/d

·    Management reaffirms the dividend target of $500 million for 2025 and
due to excellent operational performance anticipates being able to accelerate
the timing of payments with $133 million targeted for payment in December and
$200 million targeted for payment in April 2026, resulting in $500 million
dividend for 2025 and $500 million cash dividend paid in 2025 including the
final interim 2024 dividend of $200 million in April 2025

Webcast and Conference call

Ithaca Energy will host a virtual presentation and Q&A session for
investors and analysts at 09:00 (BST) today, 20 August 2025. Details are
accessible via our website.

Investors and Analysts - Webcast link

https://www.investis-live.com/ithaca-energy/6865342c1efae0000ed06921/grefc
(https://www.investis-live.com/ithaca-energy/6865342c1efae0000ed06921/grefc)

Investors and Analysts - Conference call

Operator Assisted Dial-In: United Kingdom (Local): +44 20 3936 2999 United
Kingdom (Toll-Free): +44 800 358 1035 (tel:+448003581035) Global Dial-In
Numbers Access Code: 841877

 

 

Half Year 2025 performance in review

 

Delivering production and reserves growth through targeted investment and
optimisation

The Group delivered a strong first half performance strategically,
operationally and financially, highlighted by record quarterly production and
adjusted EBITDAX in Q1. Our H1 2025 results reflect the continued and reliable
execution across all pillars of our strategy delivering further scale,
stability and strength as we seek to maximise long-term value creation and
returns for our shareholders.

In H1 2025, the Group has delivered production and reserves growth both
organically and inorganically. Our focus on optimising production to deliver
organic growth has resulted in a strong H1 operational performance supporting
an improved and upgraded production outlook for the full year. With a focus on
targeted and increased investment, the Group is well positioned to deliver on
short-return investment opportunities while continuing to make material
progress to advance its high-value, long-life resource base, primarily in the
West of Shetland, towards final investment decisions that will be linked to
the fiscal and regulatory environment following the recent government
consultations.

 

Improved H1 operational performance across all key metrics

 

The Group's commitment to responsible operations and sustainable value
creation, driven by a relentless focus on operational excellence to sustain
and optimise production performance, has led to improvements across all key
operational metrics in the first half of the year. This has delivered
improvements in safety and environmental performance, higher production
efficiency, and a reduction in operating cost per barrel. These metrics are
embedded across the organisation with a consistent focus on achieving the
'perfect day' operationally.

The Group achieved a significantly improved safety performance in H1 2025,
recording zero Tier 1 and Tier 2 process safety events and a material
reduction in the Group's Total Recordable Injury Rate (TRIR) to 1.14. This
represents a reduction in TRIR of over 50% compared to the Group's 2024 TRIR
of 2.3, and continues the positive safety trend from 2023, where the TRIR
stood at 3.31.

The Group also delivered a significant improvement in its environmental
performance, reflecting changes in portfolio composition with the portfolio
benefitting from low-intensity assets such as Cygnus and Seagull, alongside
continued investment in value-led decarbonisation activity. The Group's gross
operated emissions intensity decreased to 16.9 kgCO(2)e/boe in H1 2025 from
23.9 kgCO(2)e/boe in 2024 (H1 2024: 33.9 kgCO(2)e/boe), marking material
progress towards its decarbonisation objectives and comparing favourably
against the latest basin average of approximately 24 kgCO(2)e/boe. In
addition, the number of reportable releases to sea (spills) fell by circa 70%
in H1 2025, in comparison to H1 2024, reflecting asset and operational
integrity improvements.

The Group achieved record production in Q1 2025, averaging 127.4 kboe/d in the
period, with this strong production performance continuing through April and
May ahead of planned summer turnaround activity commencing in June. As a
result, Q2 production averaged 119.8 kboe/d, delivering H1 2025 average
production of 123.6 kboe/d (H1 2024: 53.0 kboe/d). Production in the six-month
period was split 59% oil and 41% gas, reflecting a significant increase in gas
weighting in the portfolio from H1 2024 (H1 2024 split 69% oil and 31% gas).

Production performance in H1 2025 reflects the enhanced operating capacity of
the enlarged and diversified portfolio and is underpinned by operational
improvements and optimisation across the Group's portfolio and consistent
reliable delivery. Production efficiency performance in H1 2025 has
consistently exceeded the Group's 2024 average production efficiency of 80%
and the industry average of 75% in 2024, with strong operational delivery at
the Group's operated Captain and Cygnus assets as well as the non-operated
Elgin Franklin, J Area, Seagull, MonArb, Schiehallion and Mariner assets, and
extended plateau of the Talbot field brought online in November 2024.

Operating costs, net of tanker expenses and tariff income, totalled $391.3
million in H1 2025, in line with management's full-year guidance, reflecting
the increased scale of the Group's portfolio and continued strict cost control
offsetting the foreign exchange impact of a stronger GBP (H1 2024: $263.3
million). Unit operating expenditure for the period was $17.5/boe,
representing a decrease of 36% from $27.3/boe in H1 2024, demonstrating
improved operational efficiency and the high netback capability of the
enlarged portfolio.

Total net producing asset capital expenditure (excluding decommissioning) in
H1 2025 of $290 million (H1 2024: $178 million) reflects material capital
spend primarily focused on infill well campaigns at Captain (13(th) well
campaign) and Cygnus (12(th) well ongoing), and development well activities at
Seagull and the J Area as well as the costs of delivering the Captain Flotel
campaign focusing on life extension and optimisation activities. Net capex of
$130 million in support of the Rosebank development reflects increased
activity in the ongoing modification of the FPSO and material activity across
subsea project scopes.

Building further Scale. Stability. Strength.

The Group has successfully executed across its organic and inorganic
value-orientated growth strategy in the first half of the year, with a clear
vision for further scale, stability and strength.

Organic growth - investing in long-term growth

The Group continues to deliver significant activity across its producing asset
base with a strong focus on sustaining and optimising production. With a clear
ambition to be the basin's top-performing operator, the Group is targeting
investment toward new tie-in opportunities, asset optimisation and life
extension initiatives, and infill drilling campaigns that unlock and maximise
the organic value of its portfolio.

At the Group's Captain field, material investment in the field continues in
support of the 13(th) well campaign and backlog reduction and optimisation
activities. In H1, the Group successfully delivered the drilling, completion
and production start-up of wells C73 and C74, the work over of well C47 and
responses from four out of seven EOR phase II patterns with a target of
achieving full EOR II well response by the end of 2026.  The Safe Caledonia
flotel arrived at the Captain field in June to support backlog reduction,
optimisation activities and decarbonisation scopes throughout the remainder of
the year, ensuring that the facility remains safe and reliable through to the
end of the field's life.

Drilling activities continued at the Group's Cygnus and Seagull assets in the
period with the first of the two firm Cygnus wells commencing in H1 2025, with
first production expected in October, and the second well scheduled for Q4. At
Seagull, the final planned well is currently being completed, following some
operational issues experienced in the period, with additional production from
the field now expected in Q4.

At the non-operated J Area, value-led investment has focused on short-cycle,
high-return opportunities following the successful tie-in of the Talbot and
Jocelyn South fields and continued strong operational performance in the area.
Additional investment activity has been sanctioned in 2025 to support the
development of Judy East Flank and well stimulation activity at Joanne later
in the year, highlighting both Ithaca Energy's and the operator's belief in
the future for the area.

The Group continues to make strong progress in unlocking material value across
its long-life, high-value resource base, predominantly in the West of
Shetland. The publication of the UK Government's Scope 3 guidance in June
2025, in response to the Finch case, has provided long-awaited regulatory
clarity to support the progression of key UKCS developments in alignment with
the UK's energy security objectives. With fiscal certainty for long-term
projects expected later this year, the Group is actively advancing key
projects through its internal investment stage gates to support final
investment decisions, once full regulatory and fiscal clarity is achieved.

At Rosebank, project activity is ramping up in preparation for key project
milestones across its multi-year development programme towards first
production timeline of 2026/27, with the application for refreshed consents
proceeding in tandem with project execution. Following the publication of the
Scope 3 Assessment Guidelines, OPRED has formally requested a revised
submission for consent from the JV partnership with Equinor, as operator,
preparing to submit the updated application in the second half of the year,
with a view to securing revised consents in 2026.

From a project execution perspective, the Group is forecasting additional
capital spend in 2025, predominantly in relation to increased activity to
support the delivery of FPSO modifications ahead of the vessel sail-away date
and expects a full project cost update from the operator in Q4. Strong
progress has been made across other key scopes including subsea installation
activities, ahead of planned drilling activity scheduled for Q1 2026.

In the first half of the year, the regulator granted an extension to the Cambo
licence of 18 months, from 31 March 2026 to 30 September 2027, supporting the
continued progression of the project towards its licence milestones. A
technical refresh of the Cambo project was completed in H1 2025, leveraging
the technical capabilities of Eni to challenge and optimise the development
concept, with the aim of maximising project value and mitigating risks. In the
second half of the year, updates to the Field Development Plan and
Environmental Statement will incorporate these project optimisations,
supporting the progression towards a FID and a potential farm-out, subject to
fiscal and regulatory clarity, following the recent government consultations.

Across the resource base, the Group continued to make strong progress during
H1 across a number of projects achieving key regulatory milestones with NSTA
approval secured for the Fotla and Tornado Development Concepts. Environmental
Statements submission for both projects is the next key milestone.

Inorganic growth - targeted consolidation in key assets in core UKCS basin

The Group successfully executed against its inorganic growth strategy in H1,
pursuing low-risk consolidation in its core UKCS basin through the
acquisitions of JUK and an additional 46.25% interest in the operated Cygnus
Field from Spirit Energy. The bolt-on transactions enhanced the Group's stakes
in well-understood, high-quality, long-life assets delivering near-term
production growth and cash flow generation, increasing pro forma 2025
production by an estimated 16.5-18 kboe/d and adding 44 mmboe of 2P Reserves
and 2C Resources as at 1 January 2025.

The Cygnus acquisition enhances the Group's stake in the UKCS's largest
producing gas field, adding additional operated high-margin, low-emission gas
production to its portfolio and strengthening the Group's position as a
leading UKCS gas producer, delivering critical energy security to the UK.

With the successful completion of the JUK acquisition on 7 July and the Cygnus
acquisition remaining on track to complete by 1 October 2025, with NSTA
consent received, the Group continues to demonstrate its strong execution
capabilities. Both transactions met all of the Group's stated investment
criteria and were transacted at attractive valuations of ~$10/boe (excluding
tax losses) and $7/boe per 2P reserves for the JUK and Cygnus acquisitions
respectively. These strategic bolt-on acquisitions position the Group as a
lead consolidator in the UKCS basin, delivering growth through value-accretive
acquisitions in its core market that offer additional upside potential.

 

Robust financial position supports capital allocation priorities

Maintaining a strong and flexible balance sheet remains fundamental to
delivering our capital allocation priorities. Our solid financial position
supports our continued commitment to invest to sustain our base production,
protect our financial position through maintaining a low leverage position and
proactively hedging through the cycle to support the delivery of material
returns to our shareholders, while retaining the financial agility to evolve
our business through investing in organic and inorganic growth opportunities.

The Group continues to have material available liquidity, strengthening its
available liquidity position in the quarter to $1,228.6 million from year end
(31 December 2024: $1,015.1 million) with a reduction in the Group's adjusted
net debt position of 24% at 30 June 2025 to $671.4 million (31 December 2024:
$884.9 million). The Group's low pro forma leverage position of 0.32x at 30
June (31 December 2024: 0.45x) provides a solid financial foundation for
future growth. The Group's Reserves Based Lending (RBL) unused accordion
facility of over $700 million, secured during the 2024 refinancing, remains
available to be utilised, providing incremental liquidity potential of up to
circa $2bn.

In the first half of 2025, our enlarged portfolio delivered adjusted EBITDAX
of $1.1 billion (H1 2024: $533.0 million) including a record quarterly EBITDAX
performance in Q1 (Q1 2025 adjusted EBITDAX of $653.2 million). The Group's
strong financial performance reflects not only the impact of the
transformational Business Combination which created a diversified portfolio of
scale, but also the optimisations being delivered to achieve a sustained
period of strong operational efficiency and optimisation performance.

The Group delivered net cash flow from operating activities of $1,004.6
million (H1 2024: $559.8 million) including an increase in the Group's under
lift position during H1 of $99.1 million, substantively all of which is
expected to reverse through the remainder of FY 2025.

The Group recorded a profit before tax of $513.4 million in the first half of
the year (H1 2024: $189.4 million), however the impact primarily of a one-off
non-cash deferred tax charge in Q1 2025 of $327.6 million due to the two-year
extension of EPL to 31 March 2030, results in the Group recording a loss for
the six-month period of $217.5 million (H1 2024: profit of $105.7 million).
The Group delivered adjusted net income of $128.7 million in the period (H1
2024: $124.7 million).

The Group continues to engage constructively with the UK Government in
relation to future oil and gas fiscal policy and was an active participant in
the EPL successor regime consultation that seeks to establish an oil and gas
price mechanism for future price shock scenarios. It is our expectation, that
the outcome of the UK Government's consultation will be shared during the
Chancellor's Autumn Statement later this year, providing much-needed fiscal
certainty to operators in the UK. In the interim period, we will continue to
engage with His Majesty's Treasury and Revenue & Customs both as a Group
and as part of industry's collective response led by Offshore Energies UK.

In the first half of the year, the Group has continued to place significant
importance on protecting cash flows through its proactive hedging policy,
building a material hedge position during H1, with 9 million barrels of oil
positions traded at attractive hedge prices during the higher commodity price
window in June, to complement its existing strong gas hedge book, to provide
strong cash flow cover in 2025 and 2026. As at 30 June 2025, the Group had
38.9 million barrels of oil equivalent (47% oil) hedged from Q3 2025 into 2027
at an average floor price of $69/bbl for oil swaps, $68/bbl for oil
puts/collar floors and 99p/therm for gas swaps, and 81p/therm for gas
puts/collar floors.

Ithaca Energy's commitment and track record for delivering attractive and
sustainable returns continues into 2025, with the Group reaffirming its
commitment to its dividend policy for 2025, targeting a dividend of 30%
post-tax CFFO, at the top end of our capital allocation policy range of 15-30%
post-tax CFFO, with a target of $500 million for FY 2025. In line with this
policy, the Group has declared its first interim 2025 dividend of $167 million
payable in September 2025. This follows the payment of the third interim 2024
dividend of $200 million paid in April 2025, delivering total 2024 dividends
of $500 million, in line with the Group's 2024 target.  Due to excellent
operational performance in year we anticipate being able to accelerate the
timing of remaining 2025 dividend payments with $133 million targeted for
payment in December and the remaining $200 million targeted for payment in
April 2026, resulting in $500 million cash dividend in total during 2025.

 

FY 2025 outlook

We enter the second half of the year in a position of significant strength,
with a clear vision for further scale, stability and strength as we seek to
invest across our range of growth opportunities to maximise long-term value
creation and returns for our shareholders. The Group's successful execution
across its strategic pillars in H1 2025, has further strengthened our
foundations for future growth, demonstrated by top quartile production
performance, operational excellence and further value-accretive consolidation
activities in our core UKCS basin, building scale in assets where we see
long-term value.

The Group's excellent H1 performance and 2025 outlook reflects robust operations in the first half of the year and continued organic investment, including increased value-led capital allocation to high-return wells supporting future production upside. Management guidance for the full year incorporates the acquisition of JUK from its completion date of 7 July, and the acquisition of an additional 46.25% interest in the Cygnus gas field, with completion expected and on course for 1 October 2025.
Against this backdrop, management provides updates to its previously provided guidance ranges for full year 2025:

Upgrade in 2025 production guidance to 119-125 kboe/d from 109-119 kboe/d,
driven by core asset production performance in H1 (acquisition production
unchanged from previous guidance), and reflecting planned summer turnaround
activity.

Following completion of the acquisition of JUK and the planned completion of
the acquisition of an additional 46.25% stake in the Cygnus field, targeted
for 1 October 2025, the Group expects to exit the year with a production rate
of circa 140 kboe/d, positioning Ithaca Energy as the largest producer in the
UKCS basin, providing a platform for material cash generation and growth.

Our net operating cost guidance for 2025 of $790-840 million reflects a
reduction of the Group's guidance range from $780-860 million, representing an
Opex per barrel cost of between $17/boe to $19/boe, with cost reductions
outweighing FX headwinds.

Our net producing asset capital cost guidance range for 2025 of $630-670
million (excluding pre-FID projects and Rosebank development) reflects an
increase from previously provided guidance of $580-640 million reflecting
non-cash FX headwinds and decisions to increase investments to support
production upside potential in the J Area by sanctioning additional well
activity.

Our net Rosebank project capital cost guidance range for 2025 is expected to
increase to $230-270 million from $190-230 million due to additional capital
spend expected towards the end of 2025 as the FPSO nears yard work completion
and targeted sail-away date and reflecting non-cash FX headwinds.

Estimated cash tax payments in 2025 are expected to increase to $270-300
million from $235-265 million due to increased production and profits in newly
integrated entities.

 

Enquiries

 

 Ithaca Energy
 Kathryn Reid - Head of Investor Relations & External Affairs      kathryn.reid@ithacaenergy.com (mailto:kathryn.reid@ithacaenergy.com)

 Camarco (PR Advisers to Ithaca Energy)                            +44 (0)203 757 4980
 Billy Clegg / Owen Roberts / Violet Wilson                        ithacaenergy@apcoworldwide.com

Notes:

 

(1) Non-GAAP measure

( )

About Ithaca Energy plc

 

Ithaca Energy is a leading UK independent exploration and production company
with a strong track record of material value creation. In recent years, the
Company has been focused on growing its portfolio of assets through both
organic investment programmes and acquisitions and has seen a period of
significant M&A driven growth centred upon three transformational
acquisitions in recent years, including the recent Business Combination with
Eni UK. Today, Ithaca Energy is one of the largest independent oil and gas
companies in the United Kingdom Continental Shelf (the "UKCS"), ranking second
largest independent by production with the largest resource base.

 

With stakes in six of the ten largest fields in the UKCS and two of UKCS's
largest pre-development fields, and with energy security currently being a key
focus of the UK Government, the Group believes it can utilise its significant
reserves and operational capabilities to play a key role in delivering
security of domestic energy supply from the UKCS.

 

Ithaca Energy serves today's needs for domestic energy through operating
sustainably. The Group achieves this by harnessing Ithaca Energy's deep
operational expertise and innovative minds to collectively challenge the norm,
continually seeking better ways to meet evolving demands.

 

Ithaca Energy's commitment to delivering attractive and sustainable returns is
supported by a well-defined emissions-reduction strategy with a target of
achieving net zero ahead of targets set out in the North Sea Transition Deal.

 

Ithaca Energy plc was admitted to trading on the London Stock Exchange (LON:
ITH) on 14 November 2022.

 

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