UK's Ithaca Energy 2025 adj profit hit by one-off costs, EBITDAX beats estimates

Ithaca Energy

18/03/2026 07:09

Overview

UK oil and gas producer's 2025 adjusted EBITDAX rose and beat analyst expectations

Adjusted net income for 2025 declined and missed analyst estimates, impacted by one-off tax charge

Company distributed $500 mln in dividends for 2025, including $200 mln third interim dividend

Outlook

Ithaca Energy sees FY 2026 production at 120-130 kboe/d

Company targets FY 2026 net operating costs of $820-860 mln

Ithaca Energy commits to FY 2026 dividend of 30% post-tax CFFO, target $470-520 mln

Result Drivers

PRODUCTION GROWTH - Co said increased production capacity was driven by new wells at Cygnus, Seagull and J Area, and higher stakes in acquired assets

OPERATIONAL IMPROVEMENTS - Co cited reduced unit operating costs and higher production efficiency from portfolio optimisations and turnaround activity

TAX CHARGE IMPACT - Co said a one-off, non-cash deferred tax charge related to the extension of the Energy Profits Levy weighed on net income

Company press release: ID:nRSR0467Xa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Adjusted Net Income
Miss
$289.20 mln
$328.37 mln (5 Analysts)
FY Adjusted EBITDAX
Beat
$2.03 bln
$1.99 bln (4 Analysts)
FY Adjusted Free Cash Flow
$1.75 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

Wall Street's median 12-month price target for Ithaca Energy PLC is GBp220.00, about 19% below its March 17 closing price of GBp271.50

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 14 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)