(Alliance News) - Energean PLC on Thursday reported a narrowed loss in the first half, with production ahead of guidance, and said it is on track to hit its target of USD2 billion annual revenue.
Shares in the FTSE 250-listed gas exploration and production company in the Mediterranean were 6.9% higher in London on Thursday morning at 727.45 pence each.
In the six months to June 30, Energean's pretax loss narrowed to USD20.5 million from USD99.1 million a year earlier.
Revenue surged to USD205.5 million from USD2.1 million.
The firm's administrative expenses rose to USD21.7 million from USD6.9 million, and finance costs grew to USD44.9 million from USD3.6 million.
Average working interest production in the first half was 44,000 barrels of oil equivalent per day, up sharply compared to 2,100 a year before, and ahead of full year guidance of between 38,000 and 42,000.
"During the first half, Energean delivered excellent operational and financial progress, reflecting the transformational nature of the acquisition of Edison E&P," Chief Executive Mathios Rigas said.
He continued: "Production is outperforming guidance, translating into record financial performance and, through successful execution of our gas- and returns-focused strategy, we have achieved a significant milestone in our transformation into a 200,000 boed, USD2 billion annual revenue generating, sustainable dividend yielding, energy company. In addition, we further strengthened and de-risked our balance sheet by raising the largest ever EMEA energy international high yield bond and remain fully-funded for all projects across our nine countries of operation."
Energean said it is on track to deliver first gas from Karish in mid-2022.
"In the second half of the year, we look forward to continuing to deliver our key gas development projects in Egypt and Italy, which alongside commencement of the revised Epsilon project in Greece, will provide further, substantial near-term growth and value realisation in the Mediterranean region," Rigas added.
By Paul McGowan; paulmcgowan@alliancenews.com
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Energean Oil & Gas (ENOG)