Ithaca Energy, an oil-and-gas company, has announced updates to its financial performance for the year. Despite a significant drop in pretax profit in the first half of the year compared to the previous year, Ithaca Energy remains confident in its production guidance.
Financial Performance
The company’s pretax profit for the half-year decreased to $159.6 million, a significant decline from the previous year’s $1.56 billion. The difference can be attributed to the absence of a $1.32 billion gain on bargain purchases from the acquisitions of Marubeni UK and Siccar Point Energy, which had boosted profits in the prior year.
However, adjusted earnings before interest, taxes, depreciation, amortization, and exploration costs (EBITDA), a key metric for the company, increased to $979.7 million from $907.4 million.
Production and Revenue
Despite a 6.7% decrease in revenue to $1.25 billion due to lower commodity prices, Ithaca Energy saw a 14% increase in production to 75,800 daily oil-equivalent barrels. This aligns with the company’s full-year guidance of between 68,000 and 74,000 barrels a day.
Updated Guidance
Ithaca Energy has revised its full-year guidance to reflect improved cost efficiency. The company has narrowed its operating cost guidance to $560 million-$610 million from $560 million-$630 million, demonstrating its commitment to managing costs effectively.
Additionally, Ithaca Energy has lowered its producing asset capital cost guidance to $390 million-$435 million from $400 million-$460 million, indicating a more streamlined approach to capital expenditure.
With these updates, Ithaca Energy reaffirms its dedication to optimizing production and maintaining financial stability in an evolving market.