Energean hails 'transformational' year as profits, revenues surge

21st Mar 2024 09:09

(Sharecast News) - Energean posted a surge in annual sales and earnings on Thursday, after the successful ramp-up of production from the Karish offshore gas field.

Average working interest production at the oil and gas firm, which is listed in both London and Tel Aviv, jumped 200% in the end to December end to 123 kboed (thousand barrels of oil equivalent per day).

Energean said the hike was primarily down to a full year of production at the flagship Karish field. Located offshore Northern Israel in the eastern Mediterranean, the field accounts for around 75% of Energean's output.

As a result, revenues climbed 93% to $1.4bn, while underlying adjusted earnings jumped 121% to $931m. Operating profits surged 158% to $598m.

Shares in Energean tumbled last October, following the outbreak of violence in Israel and Gaza.

But chief executive Mathios Rigas said the ongoing conflict had not impacted the business. "2023 was another transformational year," he said.

"Despite the challenging geopolitical environment, all of our operations were managed without any impact from the regional conflicts.

"Since the year end, the start-up of Karish North and the second gas export riser mean we are now able to utilise the FPSO's (floating production storage and offloading) maximum gas capacity and our production guidance illustrates the next step towards our near-term target of 200 kboed."

Energean currently expects 2024 production to come in between 155 and 175 kboed.

As at 0900 GMT, Energean's London-listed shares were up 2% at 1,054.04p.