Energean plc

("Energean" or the "Company")

Results for the Half Year Ended 30 June 2025

 

London, 11 September 2025 - Energean plc (LSE: ENOG, TASE: אנאג) is pleased to announce its half-year results for the six months ended 30 June 2025 ("H1 2025").

 

Mathios Rigas, Chief Executive Officer of Energean, commented:           

"Our business has remained resilient, despite the external geopolitical and market pressures, underpinned by disciplined capital management and cost control, a clear focus on long-term value creation and delivery of operational excellence; in August alone Group production was 178 kboed, showcasing strong summer demand for our gas in Israel and strong performance of the Energean Power FPSO. Despite the temporary suspension of operations in Israel for two weeks during the peak summer months, as ordered by the Ministry due to geopolitical factors, net profit increased during the period and we are therefore pleased to declare our regular quarterly dividend today.

 

"So far this year, we have: secured over $4 billion in new, long-term gas contracts that brings the total value of contracted gas to around $20 billion for the next 20 years; ensured that our Katlan project continues to progress on time and on budget; received the first tranche of grant funding for our Prinos carbon storage project; sanctioned the Irena development offshore Croatia; and made positive progress in merging our Egypt concessions to optimise value.  

 

"Looking ahead, our strategic priorities are clear. First, in Israel, we are focused on reliable production and sales to the domestic market which is the bedrock of our cashflow, followed by finalising export opportunities to enhance sales where we see strong long-term demand for our gas in the region. Second, we are working at pace to mature both organic and inorganic options for the continuation of our growth trajectory. And third, for our other two key business drivers, quarterly dividends and deleveraging, we are actively exploring all strategic options within our existing portfolio to maximise value for our shareholders. We are excited by the opportunities before us and remain committed to delivering long-term value across all areas of our business."

 

Financial results summary

	H1 2025 Energean Group	H1 2024[1] Energean Group	Increase/ (Decrease) %
Average daily working interest production (kboed)	138	146	(5%)
Sales revenue ($m)	804	867	(7%)
Realised weighted average liquid price ($/boe)	61.6	74.8	(18%)
Realised weighted average gas ($/mcf)	5.2	4.6	12%
Cash cost of production[2] ($m)	272	271	-%
Cash cost of production per barrel ($/boe)	11	10	10%
Cash G&A[3]	21	19	11%
Adjusted EBITDAX[4] ($m)	505	568	(11%)
Profit after tax ($m)	110	89	24%
Earnings per share ($ per share)	$0.60	$0.48	25%
Cash flow from operating activities ($m)	555	527	5%
Capital expenditure ($m)	297	393	(24%)
Dividend per share ($ per share)	$0.60	$0.60	-%

 

	H1 2025 Energean Group	FY 2024 Energean Group
Total borrowings ($m)	3,488	3,270
Cash and cash equivalents and restricted cash ($m)	487	321
Net debt ($m) (including restricted cash)	3,000	2,949
Leverage Ratio (Net Debt/ Adjusted EBITDAX[5])	2.7x	2.5x

 

Operational Highlights

·      Strong safety performance and emissions reduction achieved:

o  Lost Time Injury Frequency of 0.37 (H1 2024: 0.42) and Total Recordable Injury Rate of 0.37 (H1 2024: 1.27), well below the Group's full year targets. 

o  Scope 1 and 2 emissions intensity of 8.3 kgCO2e/boe, a 2% reduction year-on-year (H1 2024: 8.5 kgCO2e/boe).

·      Group production during H1 2025 was 138 kboed (84% gas) (H1 2024: 146 kboed), down year-on-year due to the temporary suspension of production in Israel in June 2025, following a directive from the Ministry of Energy and Infrastructure due to regional geopolitical developments.

o  Group production has subsequently increased since the resumption of production in Israel, with Group output averaging 147 kboed for the eight-months to August 2025 and 178 kboed in August alone.

·      Focused on long-term value creation in Israel:

o  Core Katlan development project progressing on budget and on schedule for first gas in H1 2027.

o  Over $4 billion of new gas sales agreements signed during the period.

o  Energean intends to book capacity in the new onshore Nitzana export pipeline to boost future sales. In addition, Energean is working in coordination with potential buyers and the regulator to secure further export opportunities to maximise sales in the shoulder months[6].

·      Optimising asset value outside of core Israel base:

o  In Egypt, concession merger discussions are well advanced to optimise and extend the economic life of its Abu Qir, NEA and NI concessions.

o  In Italy, a work programme amendment was submitted post-period end for the potential Vega West development.

o  In Croatia, Final Investment Decision was taken post-period end on the Irena gas field, with first gas expected in H1 2027.

o  In Greece, post-period end, the first grant instalment of the Recovery and Resilience Facility ("RRF") was received for its carbon storage project. Drilling, funded by the RRF scope, is targeted in 2026.

 

Financial Highlights

·      H1 2025 financial performance, relative to H1 2024, impacted by: (1) the planned shutdown for essential works for the second oil train development in March in addition to the Ministry ordered suspension of production for security reasons in June and; (2) lower Brent prices.

o  Revenues of $804 million (H1 2024: $867 million), adjusted EBITDAX of $505 million (H1 2024: $568 million)

o  Profit after tax of $110 million (H1 2024: $89 million) reflecting zero impairments in H1 2025 (compared to a $79 million impairment of exploration and evaluation assets in the prior year). This benefit was partly offset by lower taxable profits and a $27 million foreign exchange loss (H1 2024: $11 million gain).

·      Net debt of $3,000 million, an increase versus 31 December 2024 ($2,949 million) primarily due to the temporary suspension of production in Israel.

·      Cash and cash equivalents of $487 million and total liquidity of $1,175 million, which includes multiple available liquidity lines.

 

Corporate and Commercial Highlights

·      Dividends of $110 million (60 US cents per share) returned to shareholders in the period.

o  Q2 2025 dividend of 30 US cents/share declared today, scheduled to be paid on 30 September 2025[7].

·      Redemption date for the full principal amount of $625 million 2026 Energean Israel Limited ("EISL") notes scheduled for 21 September 2025. Energean Israel's term loan will be drawn to repay the notes.  

·      $300 million Revolving Credit Facility maturity extended to September 2028.

·      Sale of Egypt, Italy and Croatia portfolio terminated in March 2025 due to certain regulatory approvals not having been obtained (or waived) by the buyer as of the longstop date of 20 March 2025 in accordance with the terms of the binding Sale and Purchase Agreement ("SPA") signed on 19 June 2024.

 

2025 Guidance & Outlook

Energean expects the following for the year ahead for the Group:

·      Production guidance of 145-155 kboed, lowered from 155-165 kboed as a direct result of the temporary suspension of production in Israel in June and a deferral of commissioning of the second oil train to late Q4 2025 to avoid non-essential shut-downs during peak demand periods. Standalone Israel guidance is now 105-115 kboed. Rest of Portfolio guidance is unchanged at c. 40 kboed.   

·      Cost of production (including royalties) of $560-600 million, lowered from $590-640 million. Israel guidance now $320-340 million as a result of lower royalties due to the revised production outlook. Rest of Portfolio guidance now $240-260 million, a lowering of the top end of the range based on actual performance.

·      Development and production capital expenditure maintained at $480-520 million.

·      Decommissioning expenditure of $60-80 million, lowered from $80-100 million due to a deferral of platform removal activities and cost savings in the UK.

·      Year-end 2025 net debt is expected to be $2,900-$3,100 million, reflecting the revised production outlook in Israel.   

·      Mature organic and inorganic opportunities to grow the business.

·      Review strategic options within the portfolio to maximise shareholder value.

 

Conference Call

 

A webcast will be held today at 08:30 GMT / 10:30 Israel Time.

 

Webcast: https://www.lsegissuerservices.com/spark-insights/EnergeanOilGas/events/24f7a74e-50c6-4d17-b9c2-91477eb40d91

 

Conference call registration: https://registrations.events/direct/LON18376381

Please note, once you register for the conference call line you will receive your unique dial-in details and passcode.

The presentation slides will be made available on the website shortly at www.energean.com

 

 

 

Enquiries

 

For capital markets:
Kyrah McKenzie, Investor Relations Manager		Tel: +44 (0) 7921 210 862
[email protected]
For media:
Eliana Fishler, Group Head of Communications & Public Affairs		Tel: +972 (0) 54 434 2040
[email protected]
Ben Brewerton, FTI Consulting		Tel: +44 (0) 2037 271 065
[email protected]

 

 

 

Operational Review

Health, Safety and the Environment

In H1 2025, the Loss Time Injury Frequency ("LTIF") Rate was 0.37 (H1 2024: 0.42) and the Total Recordable Incident Rate ("TRIR") was 0.37 (H1 2024: 1.27), an improvement versus the prior year and well below the Group's full year targets.

Scope 1 and 2 emissions intensity on an equity share basis was 8.3 kgCO2e/boe, a reduction of 2% from H1 2024 (8.5 kgCO2e/boe) due to lower year-on-year emissions in Egypt.

 

Production and Operational Update

Group average working interest production was 138 kboed (84% gas), down 5% year-on-year owing largely to the temporary suspension of production in Israel in June. Output was subsequently restored and Group production has averaged 147 kboed in the eight months to 31 August 2025 and 178 kboed in August alone.

 

	H1 2025 Kboed	H1 2024 Kboed	% change	8-months to 31 August 2025 Kboed
Israel	94  (inc. 2.3 bcm of gas)	104 (inc. 2.5 bcm of gas)	(10%)	105
Rest of portfolio	44 (inc. 29 in Egypt)	42 (inc. 31 in Egypt)	2%	42
Total production	138	146	(5%)	147

This table may not cast due to rounding.

 

Israel

Karish and Karish North

FPSO uptime[8] (excluding planned shutdowns and Ministry ordered suspensions) averaged 97% for the 6-months to 30 June 2025. On 13 June 2025, the Ministry of Energy Infrastructure ordered a temporary suspension of production and activities of the Energean Power FPSO, following geopolitical escalation in the region, during which all non-essential personnel were demobilised from the FPSO, including those working on the second oil train commissioning project. Production was subsequently restarted on 25 June 2025. Commissioning of the second oil train, which will result in an increase in liquids production capacity, was subsequently deferred until late Q4 2025 to avoid non-essential shut-downs during peak demand periods.

 

Katlan

Energean's Katlan project remains on budget and on schedule for first gas in H1 2027. During H1 2025, Energean signed a drilling contract with Saipem SpA for its 2026 drilling campaign that includes the Athena and Zeus production wells and options for two additional wells. Also in the period, an Engineering, Procurement and Construction ("EPC") contract with NOV Process & Flow Technologies AS was signed for the upgrade of the Floating Production Storage and Offloading ("FPSO") topsides related to Methanol and Mono-Ethylene Glycol ("MEG") treatment, injection and storage. All the major Katlan contracts have now been agreed on budget in line with the $1.2 billion Final Investment Decision announcement made by Energean in July 2024.

 

Commercial

Domestic

In line with the Group's target to sign new long-term gas contracts, two new gas sales agreements were signed during the period to supply two new power plants to meet Israel's growing gas demand. Combined, these contracts amount to over $4 billion in future revenues over the next two decades[9], which brings the total contracted revenues over a 20-year period to around $20 billion.

 

In January 2025, a binding term sheet was signed with Dalia Energy Companies Ltd. for the supply of up to 0.1 bcm/yr from April 2026, rising to up to 0.5 bcm/yr from around January 2030 and then at least 1 bcm/yr from June 2035 onwards, and excludes supply in the summer months[10] between 2026-2034.

 

In April 2025, a Gas Sale and Purchase Agreement ("GSPA") was signed with Kesem Energy Ltd for the supply of ~1 bcm/yr from around the middle of the 2030s until the end of the contract period. Prior to this, Energean Israel will supply limited quantities of gas intermittently.

 

Exports

Energean intends to book capacity in the new onshore Nitzana export pipeline to boost future sales. In addition, Energean is working in coordination with potential buyers and the regulator to secure further export opportunities[11] to maximise sales in the shoulder months. Volumes from the Katlan lease carry no export restrictions[12].

 

Rest of Portfolio

Energean is focused on maximising value at its operations in Egypt, Italy, Croatia, UK and Greece, which together produced 44 kboed in H1 2025.

 

In Egypt, Energean is in advanced discussions with the Egyptian authorities to merge Energean's three production concessions (Abu Qir, NEA and NI) into a single concession. The resultant single concession is expected to improve the commercial and fiscal conditions, unlock new development and exploration opportunities, and extend the economic life of the fields. The Group's net receivables position (after provision revision for expected credit loss) at 30 June 2025 was $239 million, of which $189 million was classified as overdue. While the receivables position is flat year-on year, the Group expects greater receivables collection in the second half of the year, as seen historically between 2020-2024 and ultimately expects to see a gradual reduction moving forward. Total Egypt production averaged 29 kboed in H1 2025, demonstrating successful arrest of typical natural decline in these assets following strong performance of the Location B well.

 

In Italy, a work programme amendment was submitted to the Ministry in July for the potential Vega West development, which contains ~10 mmbbl in the first phase and an additional 23 mmbbl in the full development scenario[13]. Production at Rospo Mare is expected to resume in early Q4 2025 at rates of 2 kbbl/d following the fire incident in January 2025. Income-lost production and expenditure incurred to remediate the damage at this field are covered by Energean Italy's insurance cover, with EUR 15 million received up to end-August 2025. Total Italy production averaged 12 kboed in H1 2025. In order to protect against ongoing macroeconomic volatility, in H1 2025, Energean entered into put and call options for certain future gas production as well as for foreign currency payments in Italy (see note 7 in the financial statements).

 

In Croatia, Energean (70% working interest), alongside its partner INA - INDUSTRIJA NAFTE d.d. ("INA"), took Final Investment Decision ("FID") in July 2025 for the development of the Irena gas field. The development plan is for a single platform tie-back to the existing infrastructure at the Izabela field; Energean's net share of the capital expenditure is expected to be EUR 50 million. First gas is expected in H1 2027, with peak production anticipated at around 8-10 mmscfd gross (1,400-1,700 boe/d).

 

In the UK, the Wenlock and Garrow well plug and abandonment ("P&A") campaigns, which Energean is operator for, were successfully completed on schedule and below budget in June and July respectively. The Kilmar well P&A campaign is also on track to be completed ahead of schedule in September.

 

In Greece, post-period end, the first instalment of the RRF grant was received for its Prinos Carbon Storage project. Drilling, funded by the RRF scope, is targeted in 2026. Production at the Prinos field, which produces small quantities of oil, was temporarily suspended in May 2025 for economic reasons due to high operating costs, in particular electricity costs.

 

2025 Guidance

	FY 2025
Production
Israel (kboed)	105 - 115
Rest of portfolio (kboed)	~40
Total production (kboed)	145 - 155
Consolidated net debt ($ million)	2,900 - 3,100
Cash Cost of Production (operating costs plus royalties)
Israel ($ million)	320 - 340
Rest of portfolio ($ million)	240 - 260*
Total Cash Cost of Production ($ million)	560 - 600
Cash G&A ($ million)	35 - 40
Development and production capital expenditure
Israel ($ million)	380 - 400**
Rest of portfolio ($ million)	100 - 200
Total development & production capital expenditure ($ million)	480 - 520
Exploration expenditure ($ million)	0 - 5
Decommissioning expenditure ($ million)	60 - 80

*Rest of portfolio guidance includes $25-30 million of flux costs in Italy.

**Guidance excludes any potential expenditure on the Nitzana export pipeline.

 

 

 

Financial Review

 

As described in the Basis of preparation note to the condensed consolidated interim financial statements (note 2), the business previously classified as discontinued operation was reclassified to continuing operations and the comparative financial information has been restated as if that business had never met the criteria to be classified as held for sale.

 

Revenue, production and commodity prices

Group working interest production averaged 138 kboed in H1 2025, with the Karish and Karish North fields contributing over 68% of total output. Production was impacted by the temporary suspension of operations in Israel for security reasons in June 2025 and a 6% average decline across all three concessions in Egypt. This was partly offset by a near doubling of gas production in Italy following the start-up of the Cassiopea field. UK output remained stable, while Greece saw a 7% decline due to a temporary suspension of production which commenced in May 2025. The production mix remained broadly consistent at 84% gas and 16% liquids (H1 2024: 82% gas, 18% liquids). Overall, gas production fell 4% and oil production dropped 16%.

Group revenue totalled $804 million, down 7% from H1 2024 ($867 million), mainly due to a combination of lower sales in Israel, which accounted for 60% of total revenue (H1 2024: 70%), and higher sales in Italy, which contributed to 25% of total revenue in H1 2025 (H1 2024: 13%).

The weighted average realised gas price was $5.2/mcf, 12% higher than in H1 2024 ($4.6/mcf). Italian gas prices remained strong, with the PSV price averaging $14.2/mcf (H1 2024: $10.0/mcf). Despite the 4% drop in total Group gas sales volumes, total gas revenue increased 7% to $541 million (H1 2024: $504 million) due to higher Italian volumes sold at higher prices compared to other countries.

Liquids sales totalled $250 million (H1 2024: $361 million), with the weighted average realised price declining to $61.6/boe (H1 2024: $74.8/boe). The reduction of oil liquids sales was driven by both lower prices in all countries of operations and reduced volumes, mainly in Israel due to the temporary suspension.

Adjusted EBITDAX was $505 million (H1 2024: $568 million), an 11% decrease, primarily reflecting lower revenue driven by the reduced production volumes and lower oil prices in H1 2025.

 

Cash production costs

 

Total cash production costs for the period were broadly stable at $272 million (H1 2024: $271 million), with Israel accounting for 55% of the total costs. Excluding Israel, costs rose to $123 million (H1 2024: $107 million), reflecting the start up of Cassiopea in August 2024. Group unit costs increased to $11/boe (H1 2024: $10/boe), primarily due to lower production in Israel, which was partly offset by lower unit costs in Italy and Egypt. As outlined in note 5, royalties in Italy and Israel remain a significant component of production costs. Excluding royalties, production costs were $175 million (H1 2024: $155 million), equating to $7/boe (H1 2024: $6/boe).

 

Depreciation

 

Depreciation on production and development assets remained broadly consistent compared to the prior year at $194 million in H1 2025 (H1 2024: $184 million).

 

Exploration and evaluation expenditure and new ventures

 

During the period, the Group expensed $2 million (H1 2024: $79 million) for exploration and new venture evaluation activities in Italy.  

 

Other income and expenses

 

Other expenses decreased to $4 million (H1 2024: $5 million), mainly comprising $3 million in transaction costs related to the anticipated ECL[14] disposal. Other income rose to $33 million (H1 2024: $2 million), mainly due to the reversal of a $19 million prior-period accrual in Egypt and $10 million of insurance proceeds in Israel. The Group also recognised an additional $2 million expected credit loss provision in Egypt, reflecting a higher overdue receivables balance since year-end.

 

Finance income/costs

 

Total finance costs in H1 2025 decreased to $128 million (H1 2024: $138 million) due to the higher level of interest capitalised in Israel. Total financing costs before capitalisation were $144 million (H1 2024: $143 million). The finance costs mainly included $103 million in interest expense on Senior Secured notes, $10 million on debt facilities, $27 million from the unwinding of discounts on deferred consideration, long-term payables, and decommissioning provisions. Net finance costs also reflect foreign exchange loss of $27 million driven by the depreciation of the US dollar against the euro, and finance income of $3 million, which includes interest income from time deposits.

 

Net loss on derivatives

 

To manage currency risk related to $ - denominated payments in Italy, the Group entered into EUR put and call option contracts during H1 2025. The options were allowed to expire by 30 June 2025, resulting in a realised loss of $3 million, which is reflected in the period's results.

 

Taxation

 

The Group had a tax expense of $64 million in H1 2025 (H1 2024: $86 million), comprising of a current tax expense of $39 million and a deferred tax expense of $25 million. This resulted in an effective tax rate of 37% (down from 49% in H1 2024). The lower overall tax expense compared with last year was mainly due to reduced taxable profits and changes in deferred tax, which were largely driven by the adjustments on the Italian decommissioning provision deferred tax assets.

Taxation charges in H1 2025 also included $13 million (H1 2024: $19 million) related to non-cash taxes deducted at source in Egypt.

 

Profit after tax

 

Profit after tax was $110 million (H1 2024: $89 million), reflecting the absence of impairments in H1 2025 (compared to a $79 million impairment of exploration and evaluation assets in the prior year). This benefit was partly offset by lower taxable profits from a 7% revenue decline and a $27 million foreign exchange loss (H1 2024: $11 million gain).

Profit before tax of $174 million remained broadly consistent compared to the prior year (H1 2024: $175 million).  The effective tax rate in H1 2025 went down to 37% compared to 49% in H1 2024 resulting in tax expense of $64 million (H1 2024: $86 million).

 

Earnings per share

 

In H1 2025, earnings per share were $0.60 (H1 2024: $0.48), with diluted earnings per share being $0.59 (H1 2024: $0.48).

 

Operating cash flow

 

In H1 2025, the Group generated net operating cash inflows of $555 million compared with $527 million in H1 2024. The 5% increase was driven by a combination of $50 million drawn under the letter of credit for payment of the Non-Completion Payable, an average 18% decrease in realised liquids prices across all countries of operation offset by higher gas revenues compared to the prior year in Italy, supported by increased sales volumes from Cassiopea and higher European gas price versus the previous year.

 

Capital Expenditures

 

Capital expenditures totalled $297 million in the period (H1 2024: $393 million), primarily directed towards development projects. This included $213 million for the Katlan development, $23 million for the Karish and Karish North fields, and $14 million and $10 million for the Cassiopea and Santo Stefano Mare fields in Italy, respectively. Exploration and appraisal spend in H1 2025 was minimal, reflecting mainly a re-estimate of previously recognised costs for the North East Hap'y prospect in Egypt following final invoicing.

 

Decommissioning provision

 

During the period, the decommissioning provision increased by $21 million due to the updates to decommissioning cost estimates and revision of other relevant assumptions such as discount and inflation rates. A $4 million increase in the decommissioning provision (H1 2024: less than $1 million) was expensed during the period, primarily relating to Italy, due to a modest increase in the discount rate since year-end across all decommissioning-related assets. $17 million of the increase in decommissioning provision were capitalised in H1 2025, including $12 million related to non-operated Scott and Telford fields. Pre-cessation of production well plug and abandonment decommissioning activities on Scott are anticipated to commence in 2028 with cessation of production forecasted by 2030.

In H1 2025, the Group invested $31 million in decommissioning works, comprising $11 million and $7 million for the Wenlock and Tors projects in the UK respectively, and $12 million in Italy, primarily for the Candela and Santo Stefano Mare projects.

 

Net debt

 

As at 30 June 2025, net debt was $3,000 million (FY24: $2,949 million), consisting of total borrowings offset by deferred amortised fees, bank deposits, and total cash of $488 million, including $87 million of restricted cash.

Total borrowings include the following:

·      $2,625 million in Israeli senior secured notes;

·      $450 million in corporate senior secured notes;

·      $105 million from the Greek Black Sea Trade and Development Bank (BSTDB) loan;

·      $75 million drawn from Bank Leumi in H1 2025 under the new term loan agreement; and

·    $258 million in other short-term borrowings including under the corporate RCF.

 

Energean's floating interest rate exposure is limited to certain arrangements, namely the Greek BSTDB loan, the $750 millon Bank Leumi term loan, the corporate RCF and other short-term bilateral agreements. All Senior Secured Notes, including both at Energean Plc and Energean Israel, carry fixed interest rates.

 

Shareholder Distributions 

 

In line with the Group's dividend policy, Energean returned US$0.60 per share to shareholders in H1 2025, totalling $110 million, representing two-quarters of dividend payments. In H1 2024, Energean also returned US$0.60 per share.

 

Non-IFRS measures

 

The Group uses certain measures of performance that are not specifically defined under IFRS or other generally accepted accounting principles. These non-IFRS measures include adjusted EBITDAX, underlying cash cost of production and G&A, capital expenditure, net debt and leveraging.

 

Adjusted EBITDAX

 

Adjusted EBITDAX is a non-IFRS measure used by the Group to measure business performance. It is calculated as profit or loss for the period, adjusted for discontinued operations, taxation, depreciation and amortisation, share-based payment charge, impairment of property, plant and equipment, other income and expenses, net finance costs and exploration costs. The Group presents adjusted EBITDAX as it is used in assessing the Group's growth and operational efficiencies because it illustrates the underlying performance of the Group's business by excluding items not considered by management to reflect the underlying operations of the Group.

 

	H1 2025 Energean Group	H1 2024 Energean Group
	$m	$m
Adjusted EBITDAX	505	568
Reconciliation to profit for the period:
Depreciation and amortisation	(194)	(184)
Share-based payment charge	(4)	(4)
Exploration and evaluation expense	(2)	(79)
Change in decommissioning provision	(4)	-
Expected credit loss	(2)	(1)
Other (expenses)/income	30	(3)
Finance income	3	5
Finance cost	(128)	(138)
Net loss on derivatives	(3)	-
Net foreign exchange loss	(27)	11
Taxation income / (expense)	(64)	(86)
Profit for the period	110	89

 

Cash Cost of Production

 

Cash Cost of Production is a non-IFRS measure that is used by the Group as a useful indicator of the Group's underlying cash costs to produce hydrocarbons. The Group uses the measure to compare operational performance period-to-period, to monitor cost and assess operational efficiency. Cash cost of production is calculated as cost of sales, adjusted for depreciation and hydrocarbon inventory movements.

 

 

	H1 2025 Energean Group	H1 2024 Energean Group
	$m	$m
Cost of sales	469	461
Adjusted for:
Depreciation	(191)	(181)
Change in inventory	(6)	(9)
Cash Cost of production	272	271
Total production for the period (MMboe)	24,913	26,650
Cash Cost of production per boe ($/boe)	10.9	10.2

 

Cash General & Administrative Expense (G&A)

 

Cash G&A excludes certain non-cash accounting items from the Group's reported G&A. Cash G&A is calculated as follows: administrative and distribution expenses, excluding depletion and amortisation of assets and share-based payment charge that are included in G&A.

	H1 2025 Energean Group	H1 2024 Energean Group
	$m	$m
Administrative expenses	28	26
Less:
Depreciation	(3)	(3)
Share-based payment charge included in G&A	(4)	(4)
Cash G&A	21	19

 

The Group's total cash G&A expenses for H1 2025 amounted to $21 million. This reflects a 11% overall increase from the previous period. The rise in costs is primarily driven by an increase in staff headcount in Israel due to the Katlan project.

 

Capital Expenditure

 

Capital expenditure is a useful indicator of the Group's organic expenditure on oil and gas assets and exploration and appraisal assets incurred during a period. Capital expenditure is defined as additions to property, plant and equipment and intangible exploration and evaluation assets less decommissioning asset additions, right-of-use asset additions, capitalised share-based payment charge and capitalised borrowing costs:

	H1 2025 Energean Group	H1 2024 Energean Group
	$m	$m
Additions to property, plant and equipment	284	172
Additions to intangible exploration and evaluation assets	(2)	193
Less:
Capitalised borrowing costs	(15)	5
Leased assets additions and modifications	(37)	1
Lease payments related to capital activities	(9)	(10)
Change in decommissioning provision	17	(25)
Total capital expenditures	297	393
Movement in working capital	88	(51)
Cash capital expenditures per the cash flow statement	385	342

 

Net Debt

 

Net debt is defined as the Group's total borrowings less cash and cash equivalents. Management believes that net debt serves as a valuable indicator of the Group's indebtedness, financial flexibility, and capital structure because it reflects the level of borrowings after accounting for any cash and cash equivalents that could be utilised to reduce borrowings.

Net debt reconciliation	H1 2025 Energean Group	FY 2024 Energean Group
	$m	$m
Current borrowings	880	128
Non-current borrowings	2,608	3,142
Total borrowings	3,488	3,270
Less: Cash and cash equivalents	(401)	(236)
Less: Restricted cash held for loan repayment	(87)	(85)
Net Debt[15]	3,000	2,949

 

Going Concern

 

The Directors assessed the Group's ability to continue as a going concern over a going concern assessment period to 31 December 2026. As a result of this assessment, the Directors are satisfied that the Group has sufficient financial resources to continue in operation for the foreseeable future and for this reason they continue to adopt the going concern basis in preparing the condensed consolidated interim financial statements. Detail of the Group's going concern assessment for the period can be found within note 2.2 of the condensed consolidated interim financial statements.

 

Principal risks at half-year 2025 and key developments since the 2024 Annual Report

 

Effective risk management is fundamental to achieving Energean's strategic objectives and protecting its personnel, assets, shareholder value and reputation. Energean's risk management framework and process is described in detail between pages 71-75 in its 2024 Annual Report and Accounts. The principal risks and uncertainties facing the business are monitored on an ongoing basis in line with the UK Corporate Governance Code 2024. The Board has overall responsibility for determining the nature and extent of the risks it is willing to take in achieving the strategic objectives of the Group and ensuring that such risks are managed effectively.

 

Principal risks and uncertainties

 

The Board of Directors have reviewed the principal risks facing the Company and have identified, as noted below, certain changes to the headline principal risks from those disclosed in the 2024 Annual Report between pages 76 - 84.

 

Key developments in relation to Energean's risks

 

Termination of Egypt, Italy and Croatia portfolio sale

As discussed in the financial review and in note 2 of the financial statements, on 21 March 2025, Energean terminated the proposed sale of its portfolio in Egypt, Italy and Croatia as per the binding Sale and Purchase Agreement ("SPA") signed on 19 June 2024.  As a result, certain risks associated with these assets have reemerged, including:

(1)   Receivables risk in Egypt, which is now captured within the 'Financial risk: insufficient liquidity and funding capacity, including macroeconomic factors'. Energean has a number of solutions in place to manage its collection policy and continues to engage with the Egyptian government and Ministry of Petroleum on a regular basis.

(2)   Non-operated assets and JVs risk. Energean has joint-venture operations and non-operated positions at certain licences in Egypt, Italy, Croatia and the UK. Energean places strong emphasis on maintaining effective governance and transparent cooperation in all of its joint venture partnerships. It actively pursues its contractual rights to ensure full transparency, timely information sharing and participation on key decision-making processes, as set out in its joint venture framework. Failure to do so could, among other things, negatively impact asset value.

 

In addition, as a result of the retention of the Group's Egypt, Italy and Croatia staff, coupled with targeted initiatives and engagement that have strengthened the wider workforce, e.g. greater share of local employment in Israel, the Board has determined that the 'Organisational and HR risk: failure to attract, retain and develop staff' is no longer a headline principal risk. Talent management will continue to remain embedded in the Group's risk governance and strategic planning process, and monthly reports on recruitment and retention indicators submitted to the Board will enable oversight of emerging trends and early identification of potential challenges. Should any of the reported indicators deteriorate, the Board will consider re‑elevating and re-establishing targeted mitigation measures.

 

 Geopolitical and security risks in Israel

Operations in Israel remain subject to elevated geopolitical and security risks. On 13 June 2025, production and operations were temporarily suspended following a directive from the Ministry of Energy and Infrastructure after geopolitical escalation in the region. A notice was subsequently received on 25 June 2025 instructing the safe restart and resumption of production and operations. Energean continues to monitor the situation closely and maintains contingency plans, including security protocols for its workforce and personnel that prioritises the safety of its staff and contract personnel, diversified logistic routes and insurance coverage.

 

The principal risks are now summarised as:

·      Strategic risk: Geopolitical and security risks in Israel

·      Operational risk: Production uptime reliability and operating efficiency (including reliability of the production systems, i.e. FPSO, subsea and wells).

·      Operational risk: Delayed delivery of further growth projects, mainly considering Katlan in Israel

·      Strategic risk: Insufficient commercial discoveries and reserves replacement

·      Financial risk: Insufficient liquidity and funding capacity, including macroeconomic factors

·      Health, safety and environment risk

·      Legal and compliance risk

·      Operational resilience: Significant IT and OT cyber risk, including a security breach of internal systems or a cyber attack

·      Climate change risk: (a) failure to manage the risk of climate change and to adapt to the energy transition and (b) physical climate change risk

·      Non-operated assets and JVs risk.

 

Emerging risks

 

Within the Company's enterprise risk management framework, emerging risks are considered as part of the identification phase. These are risks that cannot yet be fully assessed, risks that are known but are not likely to have an impact for several years, or risks which are unknown but could have implications for the business moving forward. During the second half of 2025, management will continue to monitor any relevant trends, enhancing proactive monitoring and scenario planning while exploring new opportunities.

 

 Statement of Directors' responsibilities

 

The Directors confirm that, to the best of their knowledge:

 

·      The condensed consolidated interim financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted in the United Kingdom.

·      The interim management report includes a fair review of the information required by the Disclosure Transparency Rules (DTR) 4.2.7R, namely an indication of important events during the six months ended 30 June 2025 and a description of the principal risks and uncertainties for the remaining six months of the financial year.

·      The interim management report includes a true and fair view of the information required by the DTR 4.2.8R, including disclosure of related party transactions and any changes therein during the reporting period.

 

 

Mathios Rigas Chief Executive Officer	Panos Benos Chief Financial Officer
10 September 2025	10 September 2025

 

 

 

 Forward looking statements

This announcement contains statements that are, or are deemed to be, forward-looking statements. In some instances, forward-looking statements can be identified by the use of terms such as "projects", "forecasts", "on track", "anticipates", "expects", "believes", "intends", "may", "will", or "should" or, in each case, their negative or other variations or comparable terminology. Forward-looking statements are subject to a number of known and unknown risks and uncertainties that may cause actual results and events to differ materially from those expressed in or implied by such forward-looking statements, including, but not limited to: general economic and business conditions; demand for the Company's products and services; competitive factors in the industries in which the Company operates; exchange rate fluctuations; legislative, fiscal and regulatory developments; political risks; terrorism, acts of war and pandemics; changes in law and legal interpretations; and the impact of technological change. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. The information contained in this announcement is subject to change without notice.

 

Casting in tables

Numbers outside of the unaudited consolidated interim financial statements, where applicable, are rounded to the nearest million US$ and therefore totals may differ in the order of a million US$.

INDEPENDENT REVIEW REPORT TO ENERGEAN PLC

 

Conclusion

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2025 which comprises the interim consolidated income statement, the interim consolidated statement of comprehensive income, the interim consolidated statement of financial position, interim consolidated statement of changes in equity, the interim consolidated statement of cash flows and the related explanatory notes 1 to 30. We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2025 is not prepared, in all material respects, in accordance with UK-adopted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

 

Basis for Conclusion

We conducted our review in accordance with International Standard on Review Engagements 2410 (UK) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" (ISRE) issued by the Financial Reporting Council. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

As disclosed in note 2, the annual financial statements of the group are prepared in accordance with UK - adopted international accounting standards. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with UK-adopted International Accounting Standard 34, "Interim Financial Reporting".

 

Conclusions Relating to Going Concern

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for Conclusion section of this report, nothing has come to our attention to suggest that management have inappropriately adopted the going concern basis of accounting or that management have identified material uncertainties relating to going concern that are not appropriately disclosed.

This conclusion is based on the review procedures performed in accordance with this ISRE, however future events or conditions may cause the entity to cease to continue as a going concern.

 

Responsibilities of the directors

The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

In preparing the half-yearly financial report, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

 

Auditor's Responsibilities for the review of the financial information

In reviewing the half-yearly report, we are responsible for expressing to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report. Our conclusion, including our Conclusions Relating to Going Concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report.

 

Use of our report

This report is made solely to the company in accordance with guidance contained in International Standard on Review Engagements 2410 (UK) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Financial Reporting Council. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our work, for this report, or for the conclusions we have formed.

 

 

 

 

 

 

 

 

Ernst & Young LLP

London

10 September 2025

 

 

 

Interim Consolidated Income Statement Six months ended 30 June 2025 (Unaudited)
					30 June 2025	30 June 2024  (Restated *)
					$'000	$'000
			Note
Revenue			4		803,780	866,591
Cost of sales			5(a)		(469,078)	(460,888)
Gross profit					334,702	405,703
Administration expenses			5(b)		(27,541)	(25,871)
Change in decommissioning provision			22		(3,927)	385
Exploration and evaluation expenses			5(c)		(1,573)	(78,994)
Expected credit loss			5(d)		(2,205)	(961)
Other expenses			5(e)		(3,990)	(5,485)
Other income			5(f)		33,593	1,842
Operating profit					329,059	296,619
Finance income			6		3,202	5,120
Finance costs			6		(128,276)	(137,892)
Loss on derivatives			7		(2,983)	(7)
Net foreign exchange (loss)/gain			6		(26,853)	11,145
Profit before tax					174,149	174,985
Taxation expense			8		(63,665)	(86,448)
Profit for the period after taxation					110,484	88,537
Attributable to:
Owners of the parent					110,484	88,537
					110,484	88,537
Basic and diluted earnings per share ($ per share)
Basic			$0.60				$0.48
Diluted			$0.59				$0.48

 

 

* Restated for discontinued operations reclassified to continuing operations, refer to note 26 for further detail.

Interim Consolidated Statement of Comprehensive Income Six months ended 30 June 2025 (Unaudited)
	30 June 2025	30 June 2024 (Restated *)
	$'000	$'000
Profit for the period after taxation	110,484	88,537
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss
Cash Flow hedges:
Income/(Loss) arising in the period	37,415	(407)
Income tax relating to items that may be reclassified to profit or loss	(8,626)	94
Exchange difference on the translation of foreign operations, net of tax	36,407	(14,701)
Items that will not be reclassified subsequently to profit or loss
Remeasurement of defined benefit plan	-	13
Income taxes on items that will not be reclassified to profit and loss	-	(3)
Other comprehensive profit/(loss) after tax	65,196	(15,004)
Total comprehensive profit for the period	175,680	73,533
Total comprehensive profit attributable to:
Owners of the parent	175,680	73,533
	175,680	73,533

 

 

*Restated for discontinued operations reclassified to continuing operations, refer to note 26 for further detail.

 

 

Interim Consolidated Statement of Financial Position As at 30 June 2025 (Unaudited)
		30 June 2025	31 December 2024 (Restated*)
	Note	$'000	$'000
ASSETS
Non-current assets
Property, plant and equipment	10	4,726,518	4,515,359
Intangible assets	11	219,125	216,378
Equity-accounted investments		4	4
Other non-current assets	17	36,150	33,452
Derivative assets	7	21,833	-
Deferred tax asset	12	265,842	254,064
Restricted cash	14	3,332	2,950
		5,272,804	5,022,207
Current assets
Inventories	15	90,323	101,848
Trade and other receivables	16	446,295	422,248
Derivative asset	7	15,323	-
Restricted cash	14	83,257	82,427
Cash and cash equivalents	13	400,650	235,270
		1,035,848	841,793
Total assets		6,308,652	5,864,000
EQUITY AND LIABILITIES
Equity attributable to owners of the parent
Share capital	18	2,459	2,449
Share premium	18	465,331	465,331
Merger reserve		139,903	139,903
Other reserves		34,585	5,796
Foreign currency translation reserve		12,860	(23,547)
Share-based payment reserve		45,664	41,996
Retained earnings		(54,246)	(54,463)
Total equity		646,556	577,465
Non-current liabilities
Borrowings	20	2,607,183	3,141,904
Deferred tax liabilities	12	156,116	141,403
Retirement benefit liability	21	1,789	1,551
Provisions	22	813,462	722,016
Other payables	24	66,489	122,384
		3,645,039	4,129,258
Current liabilities
Trade and other payables	23	979,689	847,805
Current portion of borrowings	20	880,046	128,000
Current tax liability		7,699	84,847
Derivative liability	7	87	345
Provisions	22	149,536	96,280
		2,017,057	1,157,277
Total equity and liabilities		6,308,652	5,864,000

 

*Restated to classify the assets and liabilities previously classified as held for sale back to their original balance sheet line items, refer to note 26 for further detail.

Mathios Rigas Chief Executive Officer	Panos Benos Chief Financial Officer
10 September 2025	10 September 2025