Ithaca Energy Raises Output Forecasts as Profits Surge and Shareholder Returns Climb

Ithaca Energy, the leading North Sea oil and gas operator, has lifted its production forecasts for the second time this year while confirming it remains on course to return $500 million to shareholders in 2025. The London-listed company enjoyed a surge in pre-tax profit, up to $513.4 million for the first half compared with $189.4 million a year earlier, buoyed by the successful acquisition of Eni’s UK assets.

Revenue was close to $1.5 billion, rising from $841.9 million, as daily production almost doubled to 123,600 barrels, up from 53,000 in the previous period. The group now expects full-year average daily output between 119,000 and 125,000 barrels, an increase from its prior estimate of 109,000 to 119,000. This upgrade stems from robust organic performance alongside the integration of new assets, including a higher stake in the Seagull field and the soon-to-be-completed purchase of an additional 46.25 per cent of the Cygnus field, expected in October.

Executive chairman Yaniv Friedman announced the payment of a $167 million interim dividend, representing around 10 cents per share, with another $133 million scheduled for December. These distributions will allow Ithaca to meet its planned $500 million payout for the year.

Growth has been driven by both strategic acquisitions and strong output from the company’s existing portfolio. Production is projected to reach about 140,000 barrels per day by year end. Since its return to the London market in 2022 after a period in private hands, Ithaca has solidified its position as one of the largest producers in the mature North Sea basin.

Friedman signalled that Ithaca continues to consider further expansion, either by acquiring additional assets in the area or through maximising value from its diverse organic portfolio. There is also interest in the company’s minority position in the Rosebank field, which could commence operations in early 2027, as well as further development of the Cambo discovery west of Shetland.

Discussions with the UK Government regarding energy taxation are ongoing, with industry leaders, including Ithaca, calling for clarity as the current 78 per cent profit tax is seen as hampering investment. Despite a challenging fiscal environment and softer commodity prices, extraordinary shareholder returns, enhanced production guidance, and a more than 50 per cent rise in the company’s share price have sustained a positive outlook among investors this year.