Karish North and second gas export riser online and new GSPA signed

London, 29 February 2024 – Energean plc (LSE: ENOG TASE: אנאג) has announced:

  • Karish North and second gas export riser online, enabling utilisation of the FPSO’s maximum gas capacity
  • New Gas Sale and Purchase Agreement (“GSPA”) signed for an initial 0.6 bcm/yr[1], rising to 1 bcm/yr from 2032 onwards

Karish North and second gas export riser online

Karish North first gas was safely achieved on 22 February 2024. The Karish North production well is currently utilising the second gas export riser, the installation of which was completed in December 2023. The Energean Power FPSO now has four production wells in operation, increasing well stock redundancy and flexibility to meet the demand requirements of Energean’s gas buyers.

New GSPA signed with Eshkol Energies Generation LTD

Energean Israel has signed a new GSPA with Eshkol Energies Generation LTD, majority owned Dalia Energy Companies Ltd, for the supply of an initial 0.6 bcm/yr1, rising to 1 bcm/yr from 2032 onwards.

Energean supplies gas to all four IEC power stations that have been privatised: Ramat Hovav, Alon Tavor, East Hagit and now Eshkol. This new contract is in line with Energean’s strategy to bring competition and security of supply to the Israeli market, and to secure long-term cash flows for its shareholders via its long-term gas contracts.

The GSPA is for a term of approximately 15 years, for a total contract quantity of up to approximately 12 bcm and represents circa $2 billion in revenues over the life of the contract. The contract contains provisions regarding floor and ceiling pricing, take or pay and price indexation (not Brent-price linked). The GSPA has been signed at levels that are in line with the other large, long-term contracts within Energean’s portfolio.

Mathios Rigas, Chief Executive of Energean, commented:

“Energean has successfully delivered another milestone in bringing our fourth well, Karish North, to first production. This provides us operational flexibility and enables us to utilise the FPSO’s maximum gas capacity.

“The new contract with Eshkol is a further testament to the trust in Energean from the Israeli electricity producers, adds circa $2 billion of revenues over the life of the contract to our business, and is in line with our strategy to secure long-term reliable cash flows from long-term gas contracts.”

[1] From 3 June 2024 to 31 December 2031

Energean CEO meets with Israeli president on local role

Energean Group CEO Mathios Rigas and the company’s Country Manager in Israel, Shaul Zemach, have held a crucial meeting with the Israeli President Isaac Herzog, for talks focused on the importance of natural gas production for Israel and the energy market of the wider eastern Mediterranean region, according to posts by Energean on its social media accounts.

Mr. Rigas stressed the importance of domestic production for both the Israeli economy and consumers, confirming that he and Energean remain fully committed to Israel’s secure energy supply.

“Strengthening gas exploration, development and production in the Mediterranean will be crucial for a just and secure energy transition in the region. We are proud to be a catalyst for regional energy development as the leading independent exploration and production company focused on natural gas, the environment, society and corporate governance,” the Energean CEO declared during the meeting.

The company, listed on the London and Israeli stock exchanges, which started from Prinos in Kavala, northern Greece, has been producing natural gas in Israel from the Karish field since 2022 with its “Energean Power” unit, the only FPSO (Floating, Production, Storage, Offloading) facility operating in the eastern Mediterranean. It covers about 50 percent of Israel’s domestic gas needs, producing at a rate of about 6 billion cubic meters per year.

Energean also expects to begin producing, in the the first quarter of this year, from the Karish North field, which the company discovered in 2019.

The Israeli government recently approved Phase 1 of the Development Plan for the Katlan gas field. Katlan, also known as the Olympus Area, was discovered in 2022 by Energean and can be used for export if Israel grants the necessary permits.

Israel’s interest in Energean’s production is obviously very high, as highlighted by the Israeli Minister of Energy and Infrastructure Eli Cohen’s recent visit to the “Energean Power” facility.

Energean: Further production increase and progress in Prinos CO2 storage project

London, 16 November 2023 – Energean plc (LSE: ENOG, TASE: אנאג) has provided an update on recent operations and the Group’s trading performance in the nine months to 30 September 2023.

Mathios Rigas, Chief Executive Officer of Energean, commented:

“I am sincerely grateful to all our employees, who have shown remarkable resilience, dedication and professionalism in the face of the challenging environment. Their unwavering commitment to our business and our values has been instrumental in delivering both operational excellence and growth. We are proud of our diverse and talented team, and we will continue to invest in their development and well-being.

“The ongoing security situation has not impacted our production. The successful ramp-up of production from our flagship Karish gas field in Israel has increased Group production to above 150 kboed in recent days. We have delivered revenues of over $1 billion and adjusted EBITDAX of $623 million in the nine months to 30 September 2023, reflecting our low-cost, high-margin business model. We have also reduced our Group leverage ratio to 3.5x and continued our dividend payments, demonstrating our commitment to delivering shareholder value.

“We have made significant progress on our growth projects, which will support our near-term targets of 200 kboed, $2.5 billion revenues, $1.75 billion adjusted EBITDAX and deleveraging target of c.1.5x, the timing of which may be impacted by the delay to the second oil train installation. We have commenced drilling of the Orion 1x well in Egypt, where we have signed a farm-out agreement[1] that will reduce our net exposure and enhance our returns. This is in addition to an attractive portfolio of exploration assets that have the potential to add significant value.

“Finally, we have made a major step forward at our Prinos carbon storage project in Greece. It has been adopted by the European Commission as a Project of Common Interest, and we have been committed EUR 150 million of grants from the Greek Government to support its development. These actions set the foundation for a transition of our mature Prinos oil field to an exciting growth investment opportunity and demonstrates our commitment to our broader energy transition strategy and being the best version of Energean we can be.”

Operational Highlights

  • Production during the nine months to 30 September 2023 was 118.5 kboed (nine months 2022: 35.2 kboed); Q3 2023 production was 143 kboed
    • On track to deliver full year production in line with latest guidance of 120 – 130 kboed
    • No production impact from the ongoing security situation in Israel
  • Strong progress on our growth projects
    • Karish North and second gas export riser on track for completion by end-2023
    • Second oil train to be installed as soon as the security situation in Israel allows
    • Katlan FID on track for around year-end 2023
    • NEA/NI completion on track for year-end 2023; Cassiopea first gas on track for 2024
    • Good progress towards the delivery of near-term targets of 200 kboed, $2.5 billion revenues, $1.75 billion adjusted EBITDAX and leverage c.1.5x
  • Attractive portfolio of exploration wells targeting additional upside, including the Orion 1x exploration well in Egypt (Energean 19%, previously 30%), which commenced drilling in October 2023; farm-out agreement signed and expected to complete within the coming weeks, subject to government approvals

Financial Highlights

  • Strong financial performance for the nine months to 30 September 2023, underpinned by a quarter of steady production from Karish
    • Revenues of $1,016 million, a 85% increase (nine months 2022: $550.2 million)
    • Adjusted EBITDAX of $623 million, a 79% increase (nine months 2022: $348.5 million)
  • Strong balance sheet maintained; ongoing deleveraging
    • Group leverage[2] continued reduction to 3.5x (H1 2023: 3.9x; FY 2022: 6.0x)
    • Group cash as of 30 September 2023 was $329.0 million, including restricted amounts of $27.5 million, and total liquidity was $578.6 million
  • Energean Israel’s $750 million 2033 bond was released from escrow in September and was used to repay Energean Israel’s $625 million 2024 bond (redemption date on 30 September 2023).

Corporate Highlights

  • Q3 2023 dividend of 30 US$ cents/share declared today, in line with Energean’s dividend policy, scheduled to be paid on 29 December 2023
  • Scope 1 and 2 emissions intensity of approximately 9.7 kgCO2e/boe, a 12% reduction versus H1 2023

Strategic Highlights

  • Energy transition plan progressing well
    • Prinos Carbon and Storage (“CS”) project in Greece adopted by the European Commission as a Project of Common Interest
    • EUR 150 million of grants committed from the Greek Recovery & Resilience Facility 
 

 

Nine months 2023

$m

Nine months 2022

$m

Increase / (Decrease)

%

Average working interest production (kboed) 118.5 (84% gas) 35.2 (73% gas) 236%
Sales and other revenues 1,016.3 550.2 85%
Cash Cost of Production[3] 360.7 181.4 99%
Cash Cost of Production per boe  ($/boe) 11.2 18.9 (41)%
Cash G&A 26.4 21.1 25%
Adjusted EBITDAX 623.3 348.5 79%
Development and production expenditure 423.2 494.4 (14)%
Exploration capital expenditure 24.7 71.4 (65)%
Decommissioning expenditure 3.1 3.8 (18)%
Nine months 2023

$m

H1 2023

$m

Increase / (Decrease)

%

Net Debt (including restricted cash) 2,926.3 2,715.3 8%
Leverage (Net Debt / annualised Adjusted EBITDAX[4]) 3.5 3.9 (10%)

 [1] Subject to government approvals

[2] Net debt / annualised adjusted EBITDAX

[3] Includes flux costs of $25.3 million in nine months 2023 and $26.8 million in nine months 2022

[4] Nine months 2023 leverage based upon nine months 2023 annualised Adjusted EBITDAX

Energean plc: Strong financial results; Karish production steady at 6 bcm/yr

London, 7 September 2023 – Energean plc (LSE: ENOG TASE: אנאג) has announced its half-year results for the six months ended 30 June 2023 (“H1 2023”).

Operational Highlights:

  • Production for the period was 105.9 kboed, near triple that of H1 2022
  • Karish production currently steady at ~6 bcm/yr equivalent
    • Completion of commissioning under the gas sales agreements (“GSAs”) achieved in April, with Practical Completion under the EPCIC with Technip achieved in June
    • Optimisation activities on the FPSO and subsea systems have progressed well, and the Energean Power FPSO achieved 97% uptime in August. Efficiency levels have followed a similarly positive trajectory and production is currently steady, averaging around 570 mmscfd (~6 bcm/yr equivalent) over the last three weeks
  • Key growth projects on track
    • Energean Power FPSO capacity increase to 8 bcm/yr on track for delivery by year-end 2023
    • Positive results achieved at the second and third NEA/NI (Egypt) development wells, reinforcing Energean’s view that the results from NEA#6 would have no read-across to the remainder of the field; NEA#5 came onstream in July 2023 and is producing in line with pre-drill expectations, whilst PY#1 testing has delivered results in line with expectations. Remaining two wells expected onstream in 2023
    • Cassiopea, Italy (Energean 40%), development progressing in line with expectations: pipelaying complete and subsea installation activities progressing well
    • Final investment decision (“FID”) on Katlan (Israel)[1] expected in late 2023
    • Orion 1X exploration well, Egypt, drilling expected to commence in Q4 2023
  • Guidance
    • 2023 production guidance revised to 120 – 130 kboed (from 125 – 140 kboed), reflecting start-up issues that have now been substantially overcome
    • On track to deliver near-term targets of 200 kboed, $2.5 billion revenues, $1.75 billion EBITDAX and leverage 1.5x in H2 2024

Financial Highlights:

  • Delivered strong financial results, underpinned by the contribution of Karish and despite the softer commodity price environment
    • Revenues of $587.6 million, a 73% increase (H1 2022: $339.0 million)[2]
    • Adjusted EBITDAX of $345.2 million, a 74% increase (H1 2022: $198.2 million)
    • Cash Cost of Production of $12.1/boe, a 37% decrease (H1 2022: $19.2/boe)
    • Group cash as of 30 June 2023 was $357.9 million, including restricted amounts of $11.5 million, and total liquidity was $897.4 million.
    • In July 2023, Energean’s subsidiary, Energean Israel Finance Limited (“Energean Israel”), issued a $750 million bond, the primary purpose of which was to repay Energean Israel’s March 2024 bond[3]. The newly issued bond matures in 2033, and extends Energean’s weighted average debt maturity from just over five to over six years
    • Group leverage (Net debt/annualised Adjusted EBITDAX[4]) reduced to 3.9x (FY 2022: 6.0x)

Corporate Highlights:

  • Q2 2023 dividend of 30 US$ cents/share declared today, in line with Energean’s dividend policy, scheduled to be paid on 29 September 2023
    • Following this payment, cumulative dividends of $266 million (150 US$ cents/share) will have been returned to shareholders
  • Scope 1 and 2 emissions intensity of approximately 11.0 kgCO2e/boe, a 36% reduction versus H1 2022

Financial Summary

 

 

H1 2023

$m

H1 2022

$m

Increase / (Decrease)

%

Average working interest production (kboed) 105.9 (82% gas) 35.4 (73% gas) 199%
Sales and other revenues 587.6 339.0 73%
Cash Cost of Production[5],[6] 231.1 123.3 87%
Cash Cost of Production per boe ($/boe) 12.1 19.2 (37%)
Cash G&A6 17.9 15.1 19%
Adjusted EBITDAX6 345.2 198.2 74%
Operating cash flow 233.0 146.6 59%
Development capital expenditure 272.5 345.7 (21%)
Exploration capital expenditure 19.0 37.0 (49%)
Decommissioning expenditure 3.8 1.5 153%
H1 2023

$m

FY 2022

$m

Increase / (Decrease)

%

Net Debt (including restricted cash)6 2,715.3 2,518.2 8%
Leverage (Net Debt / annualised Adjusted EBITDAX6,[7]) 3.9 6.0 (35%)

Mathios Rigas, Chief Executive of Energean, commented:

“Energean is now a major energy producer in the Eastern Mediterranean, almost tripling our production in H1 2023 compared to H1 2022. We have also significantly increased our revenue and EBITDAX by 73% and 74% compared to H1 2022, successfully refinanced our 2024 Energean Israel bond, and paid four consecutive dividends to our shareholders, with the fifth declared today.

“On Karish, the Energean FPSO achieved 97% uptime in August and, although ramp-up and commissioning was slower than originally expected, Karish is now producing at around 6 bcm/yr. We are pleased with the positive demand in the market for our gas and will continue to focus on optimising production efficiency.

“On our growth projects, which target to increase production to 200 kboed by H2 2024, Karish North and the FPSO capacity increase projects (Israel), NEA/NI (Egypt) and Cassiopea (Italy) are all progressing well. We remain focused on delivering our near-term targets of 200 kboed, $2.5 billion of revenues, $1.75 billion of EBITDAX and leverage of c.1.5x.”

“We are also preparing for FID on Katlan[8] later in the year. Given the export potential from the Katlan licence[9], we plan to engage with local and international buyers to market our gas. Elsewhere, we look forward to the spudding of the Orion-1X exploration well next quarter, offshore Egypt, with our partner Eni. Finally, in line with our stated net zero policy target, our emissions intensity further reduced by 36% to 11.0 kgCO2e/boe versus H1 2022.

“We continue to be disciplined and focused on stable predictable cashflows, which underpin Energean’s goals of consistent returns to shareholders, low leverage and growth through responsibly produced energy.”

 

[1] Katlan covers gas fields on the Katlan licence (formerly Block 12) and parts of the Tanin licence

[2] Subsequent to 30 June 2023, additional cargoes were sold in Israel and Italy of revenues which totalled $62.4 million. These liquids were included in the inventory balance as at 30 June 2023.

[3] The cash is currently in escrow pending government approvals, which are expected shortly

[4] H1 2023 leverage based upon H1 2023 annualised Adjusted EBITDAX

[5] Includes flux costs of $18.4 million in H1 2023 and $17.4 million in H1 2022

[6] Cash cost of production, Adjusted EBITDAX, Capital Expenditure, Net Debt are non-IFRS measures that are defined in the Financial Review section

[7] H1 2023 leverage based upon H1 2023 annualised Adjusted EBITDAX

[8] Katlan covers gas fields on the Katlan licence (formerly Block 12) and parts of the Tanin licence

[9] Subject to the issuance of an export permit by the Petroleum Commissioner and compliance with the Export Policy, no export limitations exists for Katlan

Energean plc trading statement & operational update

London, 18 May 2023 – Energean plc has announced an update on recent operations and the Group’s trading performance in the 3-months to 31 March 2023.

Highlights – Financial and Corporate

  • Revenues for the period were $288.8 million, a 69% increase versus Q1 2022 ($170.7 million)
  • EBITDAX for the period was $161.2 million, a 81% increase versus Q1 2022 ($89.6 million)
  • Group cash as of 31 March 2023 was $379.6 million (including restricted amounts of $11.5 million) and total liquidity was $943.5 million
  • Q1 2023 dividend of 30 US$ cents/share declared today, scheduled to be paid on 30 June 2023
  • Emissions intensity[1] for the period was 11.1 kgCO2e/boe, a 36% reduction versus Q1 2022 (17.2 kgCO2e/boe)
    • Emissions intensity1 in the four-months to 30 April 2023 was 10.1 kgCO2e/boe

Highlights – Operational

  • Production for the period was 94.4 kboed, a 161% increase versus Q1 2022 (36.1 kboed)
    • Production in the four-months to 30 April 2023 was 100.0 kboed (82% gas)
  • Commercial period under the gas sales agreements in Israel commenced for gas buyers on or before 1 April 2023[2], with production continuing to ramp up
  • Three hydrocarbon liquid cargoes cumulating in approximately 1 million bbls from Karish sold to Vitol year to date
  • The second gas export riser was successfully installed at Karish in March 2023; followed by key Karish North infrastructure in March and April 2023
  • Olympus development concept chosen to align with strategy to optimise free cash flows and shareholder value
    • Tie-back to Energean Power FPSO, with Olympus prioritised over Tanin
    • Production plateau maintained by monetising newly discovered resources that do not incur seller royalties nor carry export restrictions
    • Focus maintained on capital discipline: Lower cost development versus Tanin driving lower capital expenditure for the next phase of tie-backs to the Energean Power FPSO; plus avoiding significant capital expenditure to add capacity through FPSO expansion projects or a new FPSO/FPU
    • Production expected to underpin existing gas sales agreements plus target international markets that can be accessed through existing and planned third party infrastructure

Outlook

  • Full year production guidance revised to 125 – 140 kboed (from 131 – 158 kboed) due primarily to:
    • Revised gas sales forecast in Israel with full year quantities now expected to be 4.5 – 5.0 bcm (versus 4.5 – 5.5 bcm) due to the ramp up profile of buyer offtake and ongoing optimisation of the operations of the Energean Power FPSO
    • Higher-than-expected decline from NEA#6 in Egypt following the positive initial flow rates. There is no expected read-across to the PY#1 and NI#1 wells; extended flow testing is required at NEA#5 to confirm no read-across for this well. These three remaining NEA/NI wells are expected onstream over the course of 2023; NEA#5 drilling was completed in May 2023 with results in line with pre-drill geological expectations.
  • Karish growth projects on track for completion by end-2023
  • On track to deliver near-term targets of 200 kboed, $2.5 billion revenues, $1.75 billion EBITDAX and leverage < 1.5x in 2H 2024, and pay dividends in line with previously communicated policy
  • Final investment decision on the Olympus Area expected in late 2023
  • Orion 1X spud expected towards the end of the year

Mathios Rigas, Chief Executive Officer of Energean, commented:

“We are ramping up production from the Karish field and have seen four months of solid gas and liquids production in Israel, whilst optimising the operations of the Energean Power FPSO. Our Israeli gas contracts have moved to commercial status and our buyers are increasing nominations. This year, Energean expects to supply a significant proportion of Israel’s gas demand.

“This is why we are moving quickly to develop our newly discovered Olympus Area resource, as efficiently as possible. As there is limited incremental capex, the initial development concept is in line with our stated commitment to remain capital disciplined. With no seller royalty payments or export restrictions, this strategy will create sustainable value for all our stakeholders and allow us to maintain and grow our stated sector-leading dividend policy.

“We continue to focus on our Net Zero stated path through continuous reductions in our carbon intensity. We are and will remain a responsible hydrocarbon producer. We are committed to being the best version of Energean we can be: provide a secure and reliable energy supply, support our communities and underwrite the transition.”

 

[1] Scope 1 and 2 emissions

[2] With the exception of one GSPA, whose commercial period begins in November

Energean plc: 2022 Full-Year Results  

London, 23 March 2023 – Energean plc (LSE: ENOG, TASE: אנאג) has announced its audited full-year results for the year ended 31 December 2022 (“FY 2022“).

Mathios Rigas, Chief Executive of Energean, commented:

2022 was a year of transformation for Energean – where a long-held vision became an operational reality. It was a year of positive delivery. We commenced production from the only FPSO in the strategically vital Eastern Mediterranean region, paid dividends to our shareholders, and laid the foundation for our future growth through the discovery and de-risking of new natural gas resources adjacent to our infrastructure. Energean was the sole owner-operator of five deepwater wells, which drove a 20% increase in our reserve base, and marked the 15th consecutive year of reserve and resource base increases for Energean. We are proud to be on track to deliver between 4.5 and 5.5 bcm of gas into the Israeli domestic gas market this year, contributing towards the security of energy supply of the region and improving the living conditions of the Israeli public through the reduction of emissions from the displacement of coal-fired power generation.

“The first quarter of 2023 has continued the positive trend. Production from Karish is in line with our expectations, and in February we supplied the first Israeli hydrocarbon liquids export cargo to international markets. In Egypt, we achieved first gas at NEA/NI with three further wells due to come onstream during the year. In Italy, we are the third largest producer of natural gas and look forward to increasing our contribution towards the country’s energy supply. And in Greece, we are continuing our efforts to explore the untapped resources of the country.

“The remainder of 2023 will see us present the development concept for the Olympus Area, offshore Israel, and increase the capacity of the Energean Power FPSO to 8 bcm/yr. This is alongside delivery of production in line with guidance and deliver on-target returns, as promised, to our shareholder base. Through our gas contracting strategy we are in a unique position to have a very predictable and stable cashflow despite turbulence and challenges in the international financial markets.

“We are committed to investing in projects where we can create value for all stakeholders. The global energy crisis is not over – the global gas market remains dangerously tight and benefitted from a mild European winter, but thousands of industrial jobs are now at risk not just to price but also to availability. We therefore hope that governments understand the value of enhanced domestic and regional energy production, that can only be delivered through long-term investment.”

Highlights

  • Delivered first gas from Karish in October 2022
    • Production and ramp up in line with expectations
    • Energean is now sequentially notifying gas buyers that the commissioning period under the gas sales and purchase agreements (“GSPAs”) has ended and the start date for commercial obligations has commenced. It expects to have completed this process for all gas buyers by the end of March 2023
  • Initiated hydrocarbon liquid exports from Karish field to international markets
  • Delivered first production from NEA/NI, Egypt, in March 2023
  • On track to deliver 200 kboed production target in 2H 2024
  • Confirmed year-end 2P reserves of 1,161 mmboe (+20% increase versus end-2021) representing a reserve replacement ratio of 1400%
    • Including the addition of 31 bcm (approximately 206 mmboe) of 2P reserves in the Olympus Area, offshore Israel, that have now been certified by Energean’s reserve auditor, Degolyer and McNaughton (“D&M”)
  • Delivered strong financial performance, underpinned by strong commodity prices
    • 2022 revenues of $737.1 million, represented a 48.3% increase (2021: $497.0 million)
    • 2022 EBITDAX of $421.6 million, represented a 98.8% increase (2021: $212.1 million)
    • 2022 profit-after-tax of $17.3 million, was an improvement on last year’s loss (2021: $(96.2) million). Profit after tax was negatively impacted by $119.4 million of windfall taxes in Italy[1], which are expected to have been applied on a one-off basis
    • Group cash as of 31 December 2022 was $502.7 million (including restricted amounts of $74.8 million) and total liquidity was $720.0 million. In March 2023, Energean signed a $350 million term loan providing additional financial flexibility
  • Announced dividend strategy and initiated dividend payments
    • Cumulative dividends paid of 60 US$ cents with a further $30 US$ cents declared and not paid, representing an annualised yield of approximately 9%[2].
  • Carbon Disclosure Project (“CDP”) rating increased to A- (from B), outperforming the global average for E&Ps of C

Outlook

  • 2023 production guidance confirmed at 131 – 158 kboed, including 4.5 – 5.5 bcm of gas from Karish
  • Mid-term targets now considered near-term: on track to achieve production, financial targets, and leverage targets in 2H 2024[3] through execution of key development projects
    • Karish growth projects to increase the capacity of the Energean Power FPSO are on track for year-end 2023, following which Israel production is expected to be more than 140 – 155 kboed
    • Three additional wells to be brought onstream at NEA/NI by year-end 2023, following which production in Egypt is expected to be more than 40 kboed
    • Cassiopea expected to deliver first gas in 2024, following which production in Italy is expected to be approximately 20 kboed
  • Communication of development concept for the Olympus Area expected in the coming months
  • Orion X1 well, Egypt, (Energean 30%, expected to farm down to 18%) expected to spud in late 2023, slightly delayed due to rig availability
  • Declaration of quarterly dividends in line with previously communicated policy
    • $50 million per quarter initially, rising to $100 million per quarter following achievement of near-term targets
    • Cumulative dividends of at least $1 billion by end-2025
    • Post-2025 target to maintain a progressive dividend policy, underpinned by existing reserve volumes

Financial Summary

 

    FY 2022 FY 2021 % Change
Average working interest production kboed 41.2 41.0 0.5%
Sales and other revenue $ million 737.1 497.0 48.3%
Cash Cost of Production $ million 284.3 261.6 8.7%
Adjusted EBITDAX[4] $ million 421.6 212.1 98.8%
Profit/(loss) after tax $ million 17.3 (96.2) 118.0%
         
Capital expenditure $ million 728.8 403.5 80.6%
Exploration expenditure $ million 141.0 48.7 189.5%
Decommissioning expenditure $ million 8.9 2.7 229.6%
         
Cash (including restricted amounts) $ million 502.7 930.5 (46.0%)
Net debt – consolidated $ million 2,518.2 2,016.6 24.9%
Net debt – plc excluding Israel $ million 143.8 102.6 40.2%
Net debt – Israel $ million 2,374.4 1,914.0 24.1%

 [4] During 2022, Italy introduced: 1) a windfall tax in the form of a law decree which imposed a 25% one-off tax on profit margins that rose by more than 5 million euros between October 2021 and April 2022 compared to the same period a year earlier. The amount of the windfall tax paid by Energean Italy was $29.3 million and 2) In November 2022, Italy introduced a new windfall tax that imposed a 50% one-off tax, calculated on 2022 taxable profits that are 10% higher than the average taxable profits between 2018-2021. This amount has a ceiling equal to 25% of the value of the net assets at end-2021. Based on this, Energean would be required to pay an additional one-off tax of €87 million in June 2023.

[4] Based on 21 March 2023 share price of GBp 11.00

[4] On an annualised basis

[4] Adjusted EBITDAX is calculated as profit or loss for the period, adjusted for discontinued operations, taxation, depreciation and amortisation, share-based payment charge, impairment of property, plant and equipment, other income and expenses, net finance costs and exploration and evaluation expenses.

Energean plc confirms first gas from Karish field

London, 26 October 2022 – Energean plc (LSE: ENOG, TASE: אנאג) has confirmed that first gas has been safely delivered at the Karish field, offshore Israel.

Highlights

  • First gas has been achieved on the Karish project
  • Gas is being produced from the Karish Main-02 well and the flow of gas is being steadily ramped up
  • Preparation for transmission through the gas sales pipeline is progressing and gas sales to Energean’s customers are expected to commence in the next couple of days
  • Karish Main-01 and Karish Main-03 wells are expected to be opened up in approximately two and four weeks, respectively

The Energean Power FPSO and the sales gas pipeline have an ultimate capacity of 8 bcm/yr. The initial capacity is up to 6.5 bcm/yr, and commercial gas sales are expected to reach this level approximately four to six months following first gas. Energean’s growth projects – the Karish North development, the second oil train and the second export riser – are on track for completion in late 2023, following which Energean will be able to produce to the full 8 bcm/yr capacity of its infrastructure.

Mathios Rigas, Chief Executive Officer of Energean, commented:

I am delighted to confirm that Energean has reached first gas at the Karish field, offshore Israel. 

“We have delivered a landmark project that brings competition to the Israeli gas market, enhances security of energy supply in the East Med region and brings affordable and clean energy that will displace coal-fired power generation, making a material impact to the environment.

“We are committed to reach our medium-term targets of 200 kboed production and $1.75 billion of annualised EBITDAX and the delivery of the Karish project is a major milestone towards this goal. We are now focused on ramping up production and delivering the full 8 bcm capacity through our expansion project to the Energean Power FPSO.”

 

 

Energean Power FPSO arrives at Israel location

Energean plc has announced the Energean Power FPSO’s arrival on location in Israel.

The FPSO was transported by two tugs from Sembcorp Marine’s Admiralty Yard in Singapore to Israel. The 5,532 nautical mile-long journey took 35 days, crossing six seas and passing through the Suez Canal.

Energean will immediately commence hook-up and commissioning operations, which includes risers and jumpers installation as well as the commissioning of the sales gas pipeline. Energean expects approximately three – four months of commissioning before first gas, which remains on track for Q3 this year.

Mathios Rigas, Chief Executive Officer of Energean, commented:

“I am delighted to confirm that the Energean Power FPSO has arrived on location in Israel. This marks a major step forward in delivering first gas from Karish which remains on track for Q3 2022. We look forward to continuing our progress through Karish first gas, the commercialisation of the newly defined Olympus Area and contributing to energy security and competition of supply for the region.”