(Alliance News) - Energean PLC on Thursday said contribution from its Karish gas field in Israel boosted annual profit, saying it expects to increase production in the year ahead.
The Mediterranean-focused hydrocarbon exploration and production company said 2023 revenue was USD1.42 billion, nearly doubled from USD737.1 million in 2022.
This was primarily the result of the successful ramp-up of production from its flagship Karish gas field, which is offshore northern Israel, to its initial capacity. Energean's total 2023 production stood at 123,000 barrels of oil equivalent per day, more than tripled from 41,200 barrels in 2022.
Pretax profit more than tripled to USD344.2 million compared to USD107.0 million in 2022.
In addition to the revenue jump, costs were reduced. Exploration and evaluation expenses fell 52% to USD34.1 million from USD71.4 million the year before. Administrative costs were 6.1% lower at USD43.1 million, compared to USD45.9 million, and other expenses fell 56% year-on-year to USD5.3 million from USD12.1 million a year ago.
Looking ahead, Energean reiterated its 2024 production guidance of 155,000 to 175,000 barrels of oil equivalent per day.
Production will be second-half weighted due to peak gas demand coming in the summer months, Energean said. It also noted it expects first gas from its Cassiopea operations in Italy in the summer.
Chief Executive Officer Mathios Rigas said: "2023 was another transformational year for Energean.
"Since the year-end, the start-up of Karish North and the second gas export riser mean we are now able to utilise the [floating production storage and offloading] maximum gas capacity and our production guidance illustrates the next step towards our near-term target of 200,000" barrels of oil equivalent per day.
Energean last month declared a 30 US cents dividend for the fourth quarter of 2023. It noted on Thursday that it has paid out a total of 210 US cents per share since it joined the dividend list in 2022.
Energean shares were up 3.1% to 1,061.00 pence each in London on Thursday morning.
By Sabrina Penty, Alliance News reporter
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Energean Oil & Gas (ENOG)