Energean production beats guidance after Edison purchase

Energean said production was outperforming guidance as the gas explorer reported its first set of results including an full contribution from the acquisition of Edison's oil and gas business.

The FTSE 250 group's net loss more than halved to $35.7m in the six months to the end of June from $77.3m a year earlier as sales revenue soared to $205.5m from $2.1m following the Edison acquisition. Adjusted earnings per share were $74.7m compared with a loss of $8.8m a year earlier.

Energean agreed to buy Edison's oil and gas portfolio for $750m in July 2019 and completed the deal in December 2020, making it the biggest independent gas-focused explorer and producer in the Mediterranean. Gas is in favour as a "bridging fuel" as energy shifts away from more carbon intensive sources such as oil and coal.

Mathios Rigas, Energean's chief executive, said: "Energean delivered excellent operational and financial progress, reflecting the transformational nature of the acquisition of Edison E&P. Production is outperforming guidance, translating into record financial performance and, through successful execution of our gas- and returns-focused strategy, we have achieved a significant milestone in our transformation."

Energean raised its production target in May to 38-44 thousand barrels of oil per day. It said on Thursday that production averaged 44 thousand barrels per day in the first half. It stuck to the full-year target.

The company said its flagship Karish gas development in Israel was "firmly on track" to produce its first gas in mid-2022. Energean said it would declare its dividend policy in due course.

Energean shares rose 1.7% to 691.5p at 08:41 BST.