Energean plc - Results for Half Year Ended 30 June 2023: Strong Financial Results; Karish Production Steady at 6 Bcm/Yr Equivalent

Energean plc (LSE: ENOG TASE: אנאג) is pleased to announce its half-year results for the six months ended 30 June 2023 (“H1 2023”)

Operational Highlights:

  • Production for the period was 105.9 kboed, near triple that of H1 2022

  • Karish production currently steady at ~6 bcm/yr equivalent

    • Completion of commissioning under the gas sales agreements (“GSAs”) achieved in April, with Practical Completion under the EPCIC with Technip achieved in June

    • Optimisation activities on the FPSO and subsea systems have progressed well, and the Energean Power FPSO achieved 97% uptime in August. Efficiency levels have followed a similarly positive trajectory and production is currently steady, averaging around 570 mmscfd (~6 bcm/yr equivalent) over the last three weeks

  • Key growth projects on track

    • Energean Power FPSO capacity increase to 8 bcm/yr on track for delivery by year-end 2023

    • Positive results achieved at the second and third NEA/NI (Egypt) development wells, reinforcing Energean’s view that the results from NEA#6 would have no read-across to the remainder of the field; NEA#5 came onstream in July 2023 and is producing in line with pre-drill expectations, whilst PY#1 testing has delivered results in line with expectations. Remaining two wells expected onstream in 2023

    • Cassiopea, Italy (Energean 40%), development progressing in line with expectations: pipelaying complete and subsea installation activities progressing well

    • Final investment decision (“FID”) on Katlan (Israel)1 expected in late 2023

    • Orion 1X exploration well, Egypt, drilling expected to commence in Q4 2023

  • Guidance

    • 2023 production guidance revised to 120 – 130 kboed (from 125 – 140 kboed), reflecting start-up issues that have now been substantially overcome

    • On track to deliver near-term targets of 200 kboed, $2.5 billion revenues, $1.75 billion EBITDAX and leverage c.1.5x in H2 2024


Financial Highlights:

  • Delivered strong financial results, underpinned by the contribution of Karish and despite the softer commodity price environment

    • Revenues of $587.6 million, a 73% increase (H1 2022: $339.0 million)2

    • Adjusted EBITDAX of $345.2 million, a 74% increase (H1 2022: $198.2 million)

    • Cash Cost of Production of $12.1/boe, a 37% decrease (H1 2022: $19.2/boe)

    • Group cash as of 30 June 2023 was $357.9 million, including restricted amounts of $11.5 million, and total liquidity was $897.4 million.

    • In July 2023, Energean’s subsidiary, Energean Israel Finance Limited (“Energean Israel”), issued a $750 million bond, the primary purpose of which was to repay Energean Israel’s March 2024 bond3. The newly issued bond matures in 2033, and extends Energean’s weighted average debt maturity from just over five to over six years

    • Group leverage (Net debt/annualised Adjusted EBITDAX4) reduced to 3.9x (FY 2022: 6.0x)


Corporate Highlights:

  • Q2 2023 dividend of 30 US$ cents/share declared today, in line with Energean’s dividend policy, scheduled to be paid on 29 September 2023

    • Following this payment, cumulative dividends of $266 million (150 US$ cents/share) will have been returned to shareholders

  • Scope 1 and 2 emissions intensity of approximately 11.0 kgCO2e/boe, a 36% reduction versus H1 2022


Financial Summary



H1 2023


H1 2022


Increase / (Decrease)


Average working interest production (kboed)

105.9 (82% gas)

35.4 (73% gas)


Sales and other revenues




Cash Cost of Production5,6




Cash Cost of Production per boe 6 ($/boe)




Cash G&A6




Adjusted EBITDAX6




Operating cash flow




Development capital expenditure




Exploration capital expenditure




Decommissioning expenditure





H1 2023


FY 2022


Increase / (Decrease)


Net Debt (including restricted cash)6




Leverage (Net Debt / annualised Adjusted EBITDAX6,7)





Mathios Rigas, Chief Executive of Energean, commented:

Energean is now a major energy producer in the Eastern Mediterranean, almost tripling our production in H1 2023 compared to H1 2022. We have also significantly increased our revenue and EBITDAX by 73% and 74% compared to H1 2022, successfully refinanced our 2024 Energean Israel bond, and paid four consecutive dividends to our shareholders, with the fifth declared today.

On Karish, the Energean FPSO achieved 97% uptime in August and, although ramp-up and commissioning was slower than originally expected, Karish is now producing at around 6 bcm/yr. We are pleased with the positive demand in the market for our gas and will continue to focus on optimising production efficiency.

On our growth projects, which target to increase production to 200 kboed by H2 2024, Karish North and the FPSO capacity increase projects (Israel), NEA/NI (Egypt) and Cassiopea (Italy) are all progressing well. We remain focused on delivering our near-term targets of 200 kboed, $2.5 billion of revenues, $1.75 billion of EBITDAX and leverage of c.1.5x.”

We are also preparing for FID on Katlan8 later in the year. Given the export potential from the Katlan licence9, we plan to engage with local and international buyers to market our gas. Elsewhere, we look forward to the spudding of the Orion-1X exploration well next quarter, offshore Egypt, with our partner Eni. Finally, in line with our stated net zero policy target, our emissions intensity further reduced by 36% to 11.0 kgCO2e/boe versus H1 2022.

We continue to be disciplined and focused on stable predictable cashflows, which underpin Energean’s goals of consistent returns to shareholders, low leverage and growth through responsibly produced energy.”


1 Katlan covers gas fields on the Katlan licence (formerly Block 12) and parts of the Tanin licence

2 Subsequent to 30 June 2023, additional cargoes were sold in Israel and Italy of revenues which totalled $62.4 million. These liquids were included in the inventory balance as at 30 June 2023.

3 The cash is currently in escrow pending government approvals, which are expected shortly

4 H1 2023 leverage based upon H1 2023 annualised Adjusted EBITDAX

5 Includes flux costs of $18.4 million in H1 2023 and $17.4 million in H1 2022

6 Cash cost of production, Adjusted EBITDAX, Capital Expenditure, Net Debt are non-IFRS measures that are defined in the Financial Review section

7 H1 2023 leverage based upon H1 2023 annualised Adjusted EBITDAX

8 Katlan covers gas fields on the Katlan licence (formerly Block 12) and parts of the Tanin licence

9 Subject to the issuance of an export permit by the Petroleum Commissioner and compliance with the Export Policy, no export limitations exists for Katlan

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