Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Ithaca Energy PLC on Wednesday said that its production growth in the first quarter was strong despite a fall in oil and gas prices, and reaffirmed its guidance for the rest of the year.
The North Sea oil and gas operator said its pretax profit dropped to $371.6 million from $861.7 million a year prior. This was due to the introduction of the energy profits levy by the UK government which, from November 17 last year, applied a 35% levy on oil and gas company profits.
Revenue similarly decreased to $664,317 from $740,159 from the previous year, which the company said was ‘principally due to changes in overlift and underlift positions relative to Q1 2022’ which was offset by higher production in this quarter from acquisitions made in 2022.
The company’s adjusted earnings before interest, tax, depreciation and amortization on March 31 was up by 9.3% to $518.1 million from $474.2 million the previous year. Ithaca said this was driven by higher production despite lower average oil and gas prices.
Adjusted net income was slightly down at $158.4 million from $161.3 million, and net debt jumped to $890.0 million from $703.1 million the previous year.
The company produced 75,300 barrels of oil equivalent per day, ahead of guidance of between 70,000 and 72,000 boe/d. This was up from 70,500 boe/d produced at this point last year. Realised oil and gas prices were $83 per barrel, down from $100 per barrel at the same point last year.
Ithaca’s operating costs stood at $137 million or $20.3 boe/d, which was up from $18.9 boe/d.
Looking forward, the company said it reaffirmed its previously provided guidance ranges with production guidance of between 68,000 and 74,000 boe/d, operating costs between $560 and $630 million, and capital cost between $400 and $460 million; all remaining the same.
Chief Executive Officer Alan Bruce said: ‘We remain focused on delivering safe and environmentally responsible operations as we execute our value-adding near term developments such as Captain EORII, K2 and infill drilling at Alba.’
Ithaca Energy was trading 0.1% higher at 152.20 pence in London on Wednesday.
Copyright 2023 Alliance News Ltd. All Rights Reserved.