Energean hails strong recovery after Israel production restarts

Energean PLC on Wednesday said it remains on track to deliver full-year guidance as the company marked a "strong recovery" following the restart of production in Israel.

The London-based energy company said pretax profit for the half-year that ended June 30 was USD178.4 million, up 4.5% from USD174.1 million a year earlier. Bolstering its bottom line, Energean received a net foreign exchange gain of USD6.0 million, swinging from a loss of USD27.0 million.

Revenue fell 7.5% to USD743.1 million from USD803.8 million, with the company citing the 41-day government-mandated suspension of production in Israel from February 28 following the US-Israeli attack on Iran. Since production resumed, Energean has recovered strongly, it said.

The company also noted underperformance at its non-operated Cassiopea field in Italy, which affected overall revenue. Energean Italy received no production from the field during the first half of 2026, amid an ongoing dispute with its operator. Subsequently, in Europe, working interest production fell 29% to 10,000 barrels of oil equivalent per day from 14,000 barrels a year earlier.

Average working interest production was 124,000 barrels of oil equivalent per day in the first half, down from 138,000 a year before. For the first eight months of the year, including since activity resumed in Israel, production has averaged 135,000 barrels per day and is in line with the company's full-year guidance range of 130,000 to 140,000. Production reached 180,000 barrels per day in August.

Group gas sales volumes were 20.2 million barrels of oil equivalent, down 12% from 22.8 million. Revenue from gas sales fell by 21% to USD428.7 million from USD540.9 million.

Energean declared an interim dividend of 10 US cents per share for the second quarter.

Looking ahead, Chief Executive Officer Mathios Rigas said the company would focus on bringing new projects online, with Katlan offshore Israel remaining on track for first gas in the first half of 2027 after completing two development wells. It said it expects first gas from its Irena project in Croatia in the first half of 2027.

In Egypt, Energean said it has agreed principal terms with the Egyptian General Petroleum Corp to consolidate its Abu Qir, North El Amriya and North Idku concessions. It also announced plans to invest USD150.0 million over four years under improved fiscal terms, aiming to double production and reserves.

CEO Rigas said Energean's Sorek gas deal, worth about USD1.4 billion, progressed during the recent half, saying it expects projected longer-term growth from the deal. He also noted progress at Irena in Croatia and the Nitzana, which he said remain on track for completion in the first half of 2027 and late 2028, respectively.

"We also remain disciplined and focused on delivering transformational growth across EMEA, concentrated on those that strengthen and diversify our production base, enhance cash flow generation and support deleveraging," Rigas said.

Energean Israel Ltd, a 100%-owned subsidiary of Energean, also reported interim results on Wednesday. Pretax profit was USD127.8 million, down 2.3% from USD130.8 million a year earlier. Revenue was USD481.3 million, down 0.3% from USD482.6 million.

Shares in Energean were up 5.0% at 831.00 pence per share on Monday morning in London.

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