Ithaca Energy ups dividend guidance and posts record output

Ithaca Energy PLC shares rose on Wednesday as it set an improved outlook for the rest of 2026, including higher dividend guidance and lower-than-expected net operating costs.

Ithaca Energy shares rose 4.3% to 262.40 pence on Wednesday morning in London.

Ithaca Energy produces oil and gas from North Sea fields in the UK Continental Shelf.

Pretax profit was USD493.8 million for the six months ended June 30, down 3.8% from USD513.4 million a year earlier. Adjusted earnings before interest, tax, depreciation, amortisation and exploration expense was steady at USD1.12 billion.

Average first half production rose 3.2% to 128,000 barrels of oil equivalent per day from 124,000 boepd a year earlier. In the second quarter, Ithaca achieved record quarterly production of 131,000 boepd.

Still, Ithaca reaffirmed full-year production guidance of 120,000 to 130,000 boepd.

First half operating costs rose 7.2% to USD419 million from USD391 million. However, Ithaca reduced its full-year net operating cost guidance to USD800 million to USD840 million from USD820 million to USD860 million.

Ithaca reduced its full-year Rosebank project capital cost guidance to USD250 million to USD280 million from USD280 million to USD320 million previously, reflecting the rephasing of drilling activity and associated costs from 2026 into 2027.

The company declared a first interim dividend of USD0.1542 per share, up from USD0.101 a year earlier, reflecting its transition to an equal dividend payment schedule from its previous three-tranche structure.

Ithaca upgraded its 2026 dividend guidance to USD500 million to USD530 million from USD470 million to USD520 million, following stronger operating performance and cash generation in the first half.

The company said Rosebank is entering its final execution phase, with first production expected in the first half of 2027 and production ramping up to plateau levels from summer 2027, subject to regulatory approval.

The group said it is entering the second half of 2026 with "continued strong operational momentum", disciplined capital allocation and progress across its organic and inorganic growth strategy.

Executive Chair Yaniv Friedman said: "Record quarterly production in Q2, continued safe and efficient operations, robust cash generation and disciplined capital allocation have enabled us to reaffirm full year production guidance, reduce operating cost guidance and increase our dividend outlook for the year.

"With Rosebank progressing towards first production, Cambo advancing through key development milestones and continued investment in high-return, short-cycle opportunities across our producing assets, we remain focused on maximising long-term value creation and delivering attractive, sustainable returns for our shareholders."

Ithaca owns a 20% stake in Rosebank. Adura, co-owned by Shell PLC and Equinor ASA, owns the remainder.

Developers of the Rosebank oil field last week welcomed the closure of a consultation as a "major step" ahead of a final decision from the UK government on whether the project can go ahead, PA reported.

The decision on whether Rosebank and another planned North Sea development, the Jackdaw gas field off the coast of Aberdeen, can go ahead will be a key environmental test for Prime Minister Andy Burnham.

The proposals are both now in the hands of ministers, with the consultation on Jackdaw having closed a week ago. Ithaca does not have a stake in Jackdaw.

UK Prime Minister Andy Burnham is minded to approve the Jackdaw gas field in the North Sea, The Telegraph reported Monday.

Labour insiders reportedly said Burnham is leaning towards approving Jackdaw, however no formal decision has been made.

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