REG - Ithaca Energy PLC Delek Group - DLEKG - FY 2023 Trading Update

Ithaca EnergyAnnouncement

15/02/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240215:nRSO1973Da&default-theme=true

RNS Number : 1973D  Ithaca Energy PLC  15 February 2024

ITHACA ENERGY PLC

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

 

FY 2023 Trading Update

Robust financial performance and continued strategic delivery

15 February 2024

 

Ithaca Energy, a leading UK independent exploration and production company,
today provides the following unaudited trading update for the year ended 31
December 2023, ahead of announcing its Full Year Results on 21 March 2024.

 

·    2023 full year production of 70.2 thousand barrels of oil equivalent
per day (kboe/d), in line with previously stated guidance of 68-74 kboe/d

-      Underpinned by high levels of production efficiency across our
operated asset base of 84%

-      Production split 66% liquids and 34% gas

·    Estimated 2023 net operating costs of $524 million, representing a
net unit opex cost of $20.5/boe, marginally better than the lowered management
guidance of $525 - $575 million

-      Internal cost optimisation project driving strong cost control in
an inflationary environment

·    Estimated 2023 net producing asset capital cost of $392 million, in
line with management guidance of $390 - $435 million

-      Reflects a reduction in planned activity in the year as a direct
result of the Energy Profits Levy

·    Estimated 2023 net Rosebank capital spend of $97 million, in line
with management guidance of $90 - $110 million and reflecting the meaningful
activity in 2023 as project activity ramps up to support a targeted first oil
date in 2026/27

·    Estimated 2023 adjusted EBITDAX of $1.7 billion (2022: $1.9 billion)

·    Strong cash flow generation supporting continued deleveraging of the
balance sheet with net debt of $572 million at period end, representing an
estimated Group leverage position of 0.3x

·    The Group's available liquidity stands at over $1.1 billion,
including undrawn RBL availability of $835 million following completion of the
latest redetermination

·    Full year 2023 total dividend of $400 million reaffirmed, with
remaining $134 million payment payable following the publication of the full
year results

·    The Group expects to publish guidance for 2024 with the full year
2023 results on 21 March 2024 together with a full Competent Persons Report
(CPR), including field economic outputs, prepared by an independent reserves
auditor

 

Gilad Myerson, Executive Chairman, commented: "I am pleased to report a strong
set of 2023 results, with trading in line with guidance. We have made
significant progress across our strategic objectives in 2023, delivering
against our BUY, BUILD and BOOST strategy, including the milestone sanctioning
of the Rosebank development."

 

Iain Lewis, Chief Financial Officer & Interim Chief Executive Officer,
commented: "We begin 2024 in a position of strength with a diverse portfolio
of high-quality assets and significant investment optionality. Strict cost
control and strong cash flow generation in 2023 has supported the continued
deleveraging of the balance sheet with significant flexibility to support our
future growth plans."

 

Enquiries

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

 FTI Consulting (PR Advisers to Ithaca Energy)                       +44 (0)203 727 1000
 Ben Brewerton / Nick Hennis / Rosie Corbett                         ithaca@fticonsulting.com (mailto:ithaca@fticonsulting.com)

About Ithaca Energy plc

Ithaca Energy is a leading UK independent exploration and production company
focused on the UK North Sea 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 two transformational acquisitions in recent years. Today, Ithaca
Energy is one of the largest independent oil and gas companies in the United
Kingdom Continental Shelf (the "UKCS"), ranking second by resources.

 

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 by 2040.

 

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

 

-ENDS-

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTEAAALFESLEAA