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Energean report 1H20 results

Published by , Editorial Assistant
World Pipelines,

Energean Energean plc, the gas producer focused on the Mediterranean, has today announced HY results for the period ended 20 June 2020. The highlights include:

  • Combined business pro forma production was 52.1 thousand boe/d, compared with full year guidance of 44.5 – 51.5 thousand boe/d.
  • Combined business pro forma revenue was US$177 million and operating cash flow was US$66 million.
  • Completion of the acquisition of Edison E&P expected in 4Q20.
  • Significant operational progress at flagship Karish project in Israel, with first gas expected in 2H21.
  • Contracted gas sales of 5.6 billion m3/y (equivalent to gross production of 100 000 boe/d).
  • All projects are well-funded with cash and undrawn debt facilities of US$872.5 million as at 30 June.
  • Further reduction in 2020 combined business pro forma capital expenditure guidance to U$635 – 705 million.
  • US$75 – 125 million reduction on guidance issued in June and total of c. $350 million reduction since start of the year.
  • There are a number of near-term value catalysts alongside the completion of the Edison E&P Deal.
  • CPR following completion of the Karish Main drilling programme to refine reserves and resources in the coming weeks.
  • FID on Karish North (2C resources of 250 million boe).

Mathios Rigas, Chief Executive, Energean commented:

“Despite some COVID-19-related disruptions, in the year-to-date, we have made solid progress on our flagship gas project in Israel, which is scheduled to deliver first gas in 2H21. We have successfully performance-tested all three Karish development wells, delivered a resource upgrade at Karish North, completed the installation of the 8 billion m3/y capacity, 90 km pipeline that will deliver Energean’s gas sales (currently at 5.6 m3/y) into the Israeli domestic market, completed the hull of our FPSO in China and moved it to Singapore, and have commenced heavy lifting operations.

In the second half of the year, we look forward to completing our acquisition of Edison E&P, which, alongside the Karish project, will further secure our long-term, resilient cash flow profile and option-rich portfolio. Following completion of the deal, around 70% of our future production will largely insulate us against oil price volatility. We will continue to own and operate the majority of our asset base and are well-funded for all of our projects.

On the ESG front we received an award for “Best ESG Energy Growth Strategy in Europe 2020”, recognising our efforts and focus on achieving our stated net zero target and our overall focus to comply with the United Nation’s 17 SDG’s.

As we move into an exciting and transformational period for the business, I would like to personally thank my colleagues around the world for their hard work and commitment to driving the business forward and keeping one another safe and well during these challenging times.”

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