LONDON (ShareCast) - (Sharecast News) - Energean reported a rise in half-year profits despite a fall in revenue on Thursday, as strong summer demand for its Israeli gas assets helped offset the impact of a temporary production halt and weaker oil prices.
The eastern Mediterranean-focused energy group said profit after tax rose 24% to $110m in the six months to 30 June, up from $89m a year earlier, aided by the absence of impairments that had weighed on the prior period.

Earnings per share climbed 25% to $0.60.

Revenue declined 7% to $804m, while adjusted EBITDAX fell 11% to $505m, reflecting lower production volumes and a drop in realised oil prices.

Production averaged 138,000 barrels of oil equivalent per day (kboed) in the first half, down 5% on last year after a two-week suspension of Israeli operations in June ordered by the Ministry of Energy and Infrastructure due to regional geopolitical tensions.

Output had since rebounded, with group production averaging 147 kboed year-to-date and reaching 178 kboed in August alone.

"Our business has remained resilient, despite the external geopolitical and market pressures, underpinned by disciplined capital management and cost control, a clear focus on long-term value creation and delivery of operational excellence," said chief executive Mathios Rigas.

"In August alone group production was 178 kboed, showcasing strong summer demand for our gas in Israel and strong performance of the Energean Power FPSO."

Energean highlighted progress on a series of strategic projects, including securing over $4bn in new long-term gas contracts in Israel, which lifted the total value of contracted gas to about $20bn over the next two decades.

The company also said its Katlan gas development remained on schedule and budget for first production in 2027, while a final investment decision had been taken on the Irena gas field offshore Croatia.

The group declared a quarterly dividend of $0.30 per share, part of a $110m return to shareholders during the period.

Net debt stood at $3bn at the half-year, up from $2.95bn at the end of 2024, while cash and cash equivalents rose to $487m.

Energean maintained full-year capital expenditure guidance at $480m to $520m but trimmed production guidance to between 145 and 155 kboed to reflect the earlier Israeli shutdown.

Rigas said the company would focus on "reliable production and sales to the domestic market" in Israel while pursuing export opportunities, continuing to evaluate organic and inorganic growth options, and maximising shareholder value through dividends and deleveraging.

"We are excited by the opportunities before us and remain committed to delivering long-term value across all areas of our business," he said.

At 0910 BST, shares in Energean were up 1.4% at 907p.

Reporting by Josh White for Sharecast.com.

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