Ithaca Energy PLC on Thursday declared a special dividend worth $200 million, as it reaffirmed its full-year production guidance in its third-quarter results.
The London-based oil and gas company operating in the North Sea said the special dividend, which equates to $0.1209 per share, supports its 2024 dividend target of $500 million.
Shares in Ithaca Energy rose 7.2% to 107.00 pence in London on Thursday morning.
The company completed its business combination with ‘substantially all’ of Eni Spa’s UK upstream oil and gas assets in early October.
The company reported combined production with the new operation in the quarter ended September 30 of 91,000 barrels of oil equivalent per day. It said this is in line with 2024 pro forma combined estimates of 100,000 to 110,000 boepd given peak production rates of above 120,000 boepd during the fourth quarter so far.
Ithaca Energy said these production figures support full year 2024 production guidance of 76,000 to 81,000 boepd, including Eni UK assets from July 1.
Ithaca Energy’s total production in the year to date is down 26% to 52,501 boepd from 71,048 boepd.
The company said operational issues across its non-operated joint venture portfolio and infrastructure have now been resolved with a return to full production expected in the fourth quarter.
Net income in the first nine months of the year was $134.7 million, down 44% from $238.5 million a year before.
Adjusted earnings before interest, tax, depreciation, amortisation and exploration expenses are down 45% to $758.5 million from $1.37 billion.
Executive Chair Yaniv Friedman said: ‘The completion of Ithaca Energy’s transformational business combination with Eni UK, creates a dynamic growth player with significant organic and inorganic growth optionality...With production in Q4 reaching peak rates of above 120,000 boepd we are well positioned to deliver estimated pro forma 2024 production for the combined group of above 100,000 boepd and reaffirm our near-term guidance. Our increased scale of operations and enhanced cash flows support the group’s continued growth aspirations and material distributions to shareholders, including the announcement today of a special dividend of $200 million supporting our dividend target of $500 million for 2024.’
Luciano Vasques, the former managing director of Eni UK Ltd, joined Ithaca as chief executive officer when the purchase of Eni UK was completed in October. ‘I am very pleased with the operational rigour and safety culture I have witnessed since joining,’ he said.
Copyright 2024 Alliance News Ltd. All Rights Reserved.
