Energean plc
("Energean" or the "Company")
Trading Statement & Operational Update
Mathios Rigas, Chief Executive Officer of Energean, commented:
"We continue to achieve strong operational and financial results, with production, revenue and adjusted EBITDAX all increased year-on-year. In
"In line with our dividend policy, we have declared our Q1 2024 dividend of
"Looking forward, we have several milestones on the horizon across the portfolio: Cassiopea, which is the largest gas development in
Operational Highlights
· Production for the period was 142 kboed (82% gas), a 49% increase versus Q1 2023 (95 kboed). Group 2024 production guidance is reiterated at 155 - 175 kboed, which is weighted towards the second half of the year.
o In
o In mid-May, the FPSO successfully completed a scheduled 5-day turnaround for routine maintenance.
o The new wells brought online in
· Success at the Abu Qir infill well drilling campaign in
o Preliminary analysis indicates gas-initially-in-place ("GIIP") volumes of approximately 87-129 Bcf[1] based on the P90 to P10 range. The well also encountered a possible liquids column of around 55 feet of net pay that requires further analysis.
o The well was drilled from the existing North Abu Qir PII platform. First production is expected in Q3 2024.
· Drilling operations continue on Cassiopea (
·
· Long-lead items ordered for the Katlan development (
· Energean has taken over operatorship of the Tors and Wenlock (
· The Group's Scope 1 and 2 emissions intensity in Q1 2024 was estimated to be approximately 9.0 kgCO2e/boe, a 19% reduction versus Q1 2023.
Financial and Corporate Highlights
· Revenues for the period were
· Adjusted EBITDAX for the period was
· Group cash as of 31 March 2024 was
· Q1 2024 dividend of
Outlook
· Peak gas demand in Israel during the summer, driving maximum gas output.
· Cassiopea (Italy) first gas on track for summer of 2024. Near-field Gemini exploration well to be drilled after completion of the Cassiopea production wells.
· Anchois (Morocco) appraisal well spud planned for August 2024.
· Final Investment Decision on Katlan (Israel).
· The second oil train (Israel) to be installed as soon as feasible.
· Storage permit application for the Prinos Carbon Storage Project is expected to be submitted by end-June 2024.
· Quarterly dividend payments intended to be declared in line with the previously communicated dividend policy.
Production
|
Three-months to 31 March 2024 Kboed |
Three-months to 31 March 2023 Kboed |
Three months to 31 March 2023-24 % change |
Four-months to 30 April 2024 Kboed |
Israel |
99 (inc. 1.2 bcm of sales gas) |
59 (inc. 0.7 bcm of sales gas) |
68% |
100 (inc. 1.6 bcm of sales gas) |
Egypt |
32 |
25 |
28% |
32 |
Rest of portfolio |
11 |
11 |
0% |
11 |
Total production |
142 |
95 |
49% |
143 |
Financials
|
|
Three months to 31 March 2024 |
Three months to 31 March 2023 |
% change |
Sales and other revenue |
$ million |
413 |
289 |
43% |
Cash cost of production |
$ million |
131 (includes 51 of royalties) |
117 (includes 35 of royalties) |
12% |
Cash cost of production |
$/boe |
10 (includes 4 of royalties) |
14 (includes 4 of royalties) |
-29% |
Cash SG&A |
$ million |
10 |
12 |
-17% |
Adjusted EBITDAX |
$ million |
259 |
162 |
60% |
|
|
|
|
|
Development and production expenditure |
$ million |
111 |
95 |
-17% |
Exploration expenditure |
$ million |
41 |
13 |
215% |
Decommissioning expenditure |
$ million |
6 |
1 |
500% |
|
|
|
|
|
|
|
31 March 2024 |
31 December 2023 |
% change |
Cash (including restricted amounts)[2] |
$ million |
220 |
372 |
-41% |
Net debt - consolidated |
$ million |
2,989 |
2,849 |
5% |
Leverage (Net Debt / Adjusted EBITDAX) |
|
3x[3] |
3x |
0% |
2024 Guidance
|
FY 2024 |
Production |
|
Israel (kboed) |
115-130 |
Egypt (kboed) |
29-31 |
Rest of portfolio (kboed) |
11-14 |
Total production (kboed) |
155-175 |
|
|
Consolidated net debt ($ million) |
2,800-2,900 |
|
|
Cash Cost of Production (operating costs plus royalties) |
|
Israel ($ million) |
350-380 |
Egypt ($ million) |
30-40 |
Rest of portfolio ($ million) |
190-210 |
Total Cash Cost of Production ($ million) |
570-630 |
|
|
Development and production capital expenditure |
|
Israel ($ million) |
240-290 (from 150-200) |
Egypt ($ million) |
40-60 (from 30-50) |
Rest of portfolio ($ million) |
220-250[4] |
Total development & production capital expenditure ($ million) |
500-600 (from 400-500) |
|
|
Exploration expenditure ($ million) |
120-155 (from 130-170[5]) |
|
|
Decommissioning expenditure ($ million) |
40-50 |
Enquiries
For capital markets: ir@energean.com |
|
Kyrah McKenzie, Investor Relations Manager |
Tel: +44 (0) 7921 210 862 |
|
|
For media: pblewer@energean.com |
|
Paddy Blewer, Director of Corporate Communications & Head of CSR |
Tel: +44 (0) 7765 250 857 |
Forward looking statements
This announcement contains statements that are, or are deemed to be, forward-looking statements. In some instances, forward-looking statements can be identified by the use of terms such as "projects", "forecasts", "on track", "anticipates", "expects", "believes", "intends", "may", "will", or "should" or, in each case, their negative or other variations or comparable terminology. Forward-looking statements are subject to a number of known and unknown risks and uncertainties that may cause actual results and events to differ materially from those expressed in or implied by such forward-looking statements, including, but not limited to: general economic and business conditions; demand for the Company's products and services; competitive factors in the industries in which the Company operates; exchange rate fluctuations; legislative, fiscal and regulatory developments; political risks; terrorism, acts of war and pandemics; changes in law and legal interpretations; and the impact of technological change. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. The information contained in this announcement is subject to change without notice.
[1] Only includes volumes in the primary BKES-1 and Abu Madi targets
[2] Restricted amounts of
[3] 31 March 2024 leverage is based upon 3-months to 31 March 2024 annualised Adjusted EBITDAX
[4] Includes around
[5] Includes the Anchois appraisal well in Morocco.
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