Ithaca downgrades 2023 production guidance on UK levy, asset issues

(Alliance News) - Ithaca Energy PLC on Thursday lowered its yearly output guidance due to the delayed start-up of one field, operational issues at another and the hit from a UK profit levy.

Shares in the company traded 1.0% lower at 153.00 pence each in London on Thursday morning, among the worst FTSE 250-listed performers. Shares are down 39% from its November initial public offering price of 250p.

The North Sea oil and gas operator downgraded 2023 production guidance to 68,000 to 74,000 barrels of oil equivalent per day from a previous range of 72,000 to 80,000.

It reported the "delayed start up" of the Pierce field, operated by a Shell PLC subsidiary, lower than forecast volumes at the Abigail asset and "operational issues" at Captain.

Ithaca said it achieved record production of 71,403 barrels of oil equivalent per day in 2022, which was up 26% from 2021. At worst, the new guidance would represent a 4.8% fall on 2022's production.

Ithaca also reported yearly earnings growth.

Revenue in 2022 jumped 82% to USD2.60 billion from USD1.43 billion a year before. Pretax profit multiplied to USD2.24 billion from USD763.1 million.

Profit was boosted by a one-off gain of USD1.34 billion, stemming from the acquisitions of Marubeni and Siccar Point Energy.

The company did not pay a dividend for 2022, though it has already declared a USD0.1321 per share interim payout for 2023. The dividend totalled USD133 million. It targets returned USD400 million in dividends for the whole of 2023.

By Eric Cunha, Alliance News news editor

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