Energean announces 2024 full year results

Energean has announced its audited full-year results for the year ended 31 December 2024.

Mathios Rigas, Chief Executive Officer of Energean, commented:

'During 2024, we have continued our growth trajectory with FY 2024 Group production rising by 24% to 153 kboed, of which 112 kboed came from our flagship Karish and Karish North fields in Israel. Despite the geopolitical challenges in the region during the year, we operated continuously, sustaining 99% uptime[1] at the Energean Power FPSO.

'We continue to develop and optimise our assets. We took Final Investment Decision ("FID") on Katlan, which remains on track for first gas in H1 2027; commissioning of the second oil train is ongoing and is scheduled to complete in Q2 2025, this will increase the liquids production capacity of the FPSO; and the Ministry of Energy confirmed the Drakon (License 31) and Hercules (License 23) discoveries, setting the foundations for continued growth in Israel. In Greece, our regionally unique Prinos carbon storage project has been approved for around EUR 270 million of funding from the EU's Recovery and Resilience ("RRF") and Connecting Europe Facilities ("CEF"). In the UK, we took over operatorship to take control of the current decommissioning operations.

'As noted in our 17 March 2025 announcement, Carlyle has not yet obtained certain regulatory approvals for the Transaction[2] per the terms of the SPA. These are high-quality, diversified, cash flow generating assets with stable underlying production in Egypt and Italy, with production growth from the start-up of Cassiopea and Location B.

'We are an operator in eight countries and through a focused but diversified East Mediterranean oil and gas portfolio we have a solid foundation that underpins our continuing growth trajectory, that started from around 2 mmboe in Greece in 2007 and has grown to 1.1 bnboe of 2P reserves in 2024, with ~20 year[3] reserves life.    

'Operational growth was matched by strong financial performance, with Group revenues of $1,779 million and adjusted EBITDAX of $1,162 million up 25% and 25% year-on-year. This has underpinned our current dividend programme that has so far returned $595 million[4] to shareholders and will continue regardless of the Carlyle Transaction.

 'Our commercial strategy is based on secure and predictable cashflows from high-credit-quality gas buyers in Israel. We have secured over 20 long-term gas sales agreements, with close to $20 billion in contracted revenues over a 20-year period. This underpins our confidence in our future financial position, leverage reduction plan and dividend programme.

'We remain committed to ESG leadership, believing it makes us a more focused and successful business. Our Group emissions intensity decreased by 10% year-on-year, now reaching 87% below our original 2019 baseline to 8.4 kgCO2e/boe.

 'As sovereign states make energy security and affordability a top priority, the oil and gas industry is repositioning towards new growth. Our years of focus on operational excellence in development and production means we are very well placed to take advantage of a new era of oil and gas investment. We are confident that our operating capabilities and track record in deep water offshore project delivery is unique in the independent E&P sector. This ability allows us to target multiple new opportunities in the wider EMEA region that will continue the growth trajectory of Energean; we are and will always be disciplined in our approach, aligned with shareholders.

'I want to thank the entire team who have worked with dedication against a challenging regional backdrop through 2024 and onwards. Working as a team, Energean will continue to grow through providing secure and reliably produced energy, meeting the needs of the societies that host our operations, wherever they may be.' 

 Operational Highlights

• Strong 2024 Group and continuing operations[5] production:
  • FY 2024 production of 153 kboed (83% gas), a 24% increase year-on-year (FY23: 123 kboed). Production from the continuing operations for the period was 114 kboed (85% gas), a 28% increase year-on-year (FY23: 89 kboed).
  • In Israel, FPSO uptime (excluding planned shutdowns) was 99%[6] for the 12-months to 31 December 2024.
• Continuing operations year-end 2P reserves of 911 mmboe, stable year-on-year before produced 2024 volumes and demonstrating material reserves life of >20 years[7]. Group year-end 2P reserves were 1,058 mmboe.
• Katlan (Israel) development progressing on schedule, with first gas on track for H1 2027:
  • Post-period end, a drilling contract was signed with Saipem SpA for the Athena and Zeus development wells plus two optional wells.
• Prinos CO2 project allocated close to EUR 120 million from the EU's Connecting Europe Facility in January 2025, bringing the total secured grants up to around EUR 270 million.
• Group Scope 1 and 2 emissions intensity of 8.4 kgCO2e/boe, a 10% reduction (FY 2023: 9.3 kgCO2e/boe). Scope 1 and 2 emissions intensity for the continuing operations was 7.0 kgCO2e/boe (FY 2023: 6.3 kgCO2e/boe).

Financial Highlights

• Strong financial performance, underpinned by core Israel operations.
  • 2024 Group sales and other revenues of $1,779 million, representing a 25% increase (2023: $1,420 million). Continuing operations sales and other revenues was $1,315 million, representing a 34% increase (2023: $978 million).
  • 2024 Group adjusted EBITDAX of $1,162 million, representing a 25% increase (2023: $931 million). Continuing operations adjusted EBITDAX was $885 million, representing a 33% increase (2023: $667 million).
  • 2024 Group profit after tax of $188 million up 2% year-on-year (2023: $185 million), but impacted by $241 million impairment charge, both in relation to exploration in Egypt (Orion X1), Morocco, and Greece (Ioannina), as well as oil and gas assets in Greece (Prinos/Epsilon; see Operational Update section for more details). Continuing operations profit after tax was $116 million, representing a 14% increase (2023: $102 million).
• Group leverage (net debt/adjusted EBITDAX) continued to decrease to 2.5x (FY 2023: 3x):
  • Group cash as of 31 December 2024 was $321 million, including restricted amounts of $85 million, and total liquidity was $446 million. This includes cash for the continuing operations of $268 million, including restricted amounts of $85 million, and total liquidity of $393 million.

Commercial Highlights

• Q4 2024 dividend of 30 US$cents/share declared on 27 February 2025 and scheduled to be paid on 31 March 2025[8].
  • A total of 330 US$cents/share ($595 million), including the declared Q4 2024 dividend, returned to shareholders since payments began.
• Post-period end:
  • Binding terms for additional gas sales signed in January 2025, adding over $2 billion over the life of the contract  in line with the Group's strategy to secure long-term reliable cash flows, and bringing the total contracted revenues over a 20-year period to close to $20 billion.
  • $750 million 10-year senior-secured term loan signed in February 2025, which is available to refinance the $625 million 2026 Energean Israel Notes and to provide additional liquidity for the Katlan development.
  • $300 million Revolving Credit Facility refinanced and extended to September 2028[9].

Carlyle Transaction Update

• Energean announced in its January Trading Statement & Operational Update that it expected to complete the strategic sale of the Egypt, Italy and Croatia portfolio ("Transaction") to an entity controlled by Carlyle International Energy Partners in Q1 2025, subject to customary regulatory approvals. As noted on 17 March 2025, there is a significant risk that the outstanding conditions precedent will not be satisfied by Carlyle (or waived) by the relevant long stop date (20 March 2025) and that, therefore, (absent an extension being agreed) the Transaction may be terminated in accordance with binding sale and purchase agreement signed on 19 June 2024 ("SPA").
• Energean remains committed to the Transaction and to maximising returns for shareholders including via its ongoing dividend programme - with or without the disposal.
• We remain 100% confident in these high-quality and cash flow generating assets which currently provide diversification and scale to the Group.

Outlook and Strategy

• All 2025 continuing operations guidance re-iterated:
  • End-February 2025 production for the continuing operations was 115 kboed, in line with production guidance of 120-130 kboed which is second half weighted. End-February 2025 production for the Group was 160 kboed.
• Ongoing dividend programme expected to continue[10], with the new dividend policy to be announced once the Transaction is either completed or terminated.
• Evaluating growth opportunities across the EMEA region with continued capital discipline:
  • Where we remain focused on our core Mediterranean area, while also recognising growth opportunities in the wider EMEA region where we see significant potential for experienced operators like Energean to commercialise gas assets and;
  • That are dividend accretive, meet Energean's deleveraging targets, achieve its growth objectives and contribute to the Group's Net Zero target. 

Click here for full announcement

Source: Energean