Ithaca Energy (ITH) H2 2025 earnings summary

Executive summary

• Delivered strong operational and financial performance in 2025, executing on all strategic pillars and exceeding guidance across key metrics, with average production of 119,000 boe/d and a Q4 exit rate of 148,000 boe/d.

• Achieved record production, robust safety improvements, and significant progress on major development projects, including Rosebank and Cambo.

• Enhanced financial strength with $2.0 billion adjusted EBITDAX, $1.7 billion net cash from operations, and $1.5 billion available liquidity, supporting a $500 million dividend declared for FY 2025.

• Strategic execution included organic and inorganic growth, notably through acquisitions (JAPEX UK, Cygnus, Seagull), and significant progress in West of Shetland developments.

• Maintained a robust reserve base of 658 million boe and identified up to 1 billion barrels of resource potential, underpinning long-term growth.

Financial highlights

• 2025 average production reached 119,000 boe/d, with Q4 exit rates at 148,000 boe/d and peaks above 150,000 boe/d; net opex was $817 million ($19/boe).

• Adjusted EBITDA/EBITDAX exceeded $2 billion; net cash from operations was $1.7 billion; free cash flow totaled $683 million.

• Reported a net loss of $84 million due to a $328 million EPL tax charge and other non-cash or exceptional items.

• Declared and paid $500 million in dividends for 2025; total post-IPO distributions reached $1.4 billion.

• Hedging gains of $184 million contributed to financial resilience amid softening commodity prices.

Outlook and guidance

• 2026 production guidance set at 120,000–130,000 boe/d, with OpEx expected at $820–860 million and further reduction to ~$18/boe guided for 2026.

• CapEx guidance for producing assets increased to $600–700 million; Rosebank CapEx projected at $280–320 million.

• Dividend payout range raised to 20–35% of post-tax cash from operations, with a 30% target for 2026 ($470–520 million expected payout).

• Strong hedge book in place, with significant upside exposure, especially in gas for 2026–2027; c.80% of 2026 volumes hedged.

• Sustained production above 120,000 boe/d expected in the medium term, supported by ongoing investments and project completions.