Energean has provided an update on recent operations and the Group's trading performance in the 12-months to 31 December 2022 together with guidance for 2023. This information is unaudited and subject to further review. Energean will release its 2022 full year results on 23 March 2023.
Mathios Rigas, Chief Executive of Energean, commented:
'2022 was a landmark year for Energean. We commenced production from the only FPSO in the strategically vital Eastern Mediterranean region; commenced payment of dividends to our shareholders; and we successfully discovered and de-risked new natural gas resources adjacent to our infrastructure, providing significant potential upside and export optionality. We are proud to have helped to underwrite Israeli and regional energy security and promote prosperity.
'Our focus for 2023 is on continued operational growth. We will continue to ramp up production from Karish and finalise the development concept for the strategically significant, 67 bcm Olympus Area. Production will also start from Karish North in Israel and NEA/NI in Egypt. 2023 is the year that we will make a significant step towards delivering our medium-term production target of 200 kboed.
'If we have learned anything in 2022, it is that the world needs additional secure supplies of energy, and that natural gas remains the catalyst for, and foundation of, a just energy transition and vital sustainable development. Our recent CDP rating upgrade demonstrates our commitment to being the best version of Energean that we can be. We are and remain an ESG leader in the sector. We will continue to deliver on our promises.
'We are committed to investing in projects where we can create value for all relevant stakeholders. In an uncertain world, we hope governments understand the value of enhanced domestic and regional energy production, value that is unlocked through long-term investment. We hope that the intelligent policy we have seen in Israel and Egypt can be replicated across the region, continuing the investment that will unlock the strategic value in the subsurface.'
- Karish project brought onstream on 26 October 2022 and excellent reservoir deliverability confirmed
- Successfully identified and implemented solutions to resolve a range of typical above-ground commissioning issues at Karish, with no further impact to production levels anticipated following the FPSO commissioning process, expected February 2023
- Key development projects (Karish North, NEA/NI, Cassiopea) on track to deliver 200 kboed mid-term production target
- Successful completion of the 2022 growth drilling programme in Israel which discovered and de-risked approximately 75 bcm (approximately 480 mmboe) of new gas resource
- Including 67 bcm (approximately 430 mmboe) of additional gas resource in the Olympus Area, for which the development concept is now being finalised
Corporate and Financial Highlights
- Strong financial performance for the year to 31 December 2022
- Revenues were $736.7 million, a 48% increase versus 2021 comparable period ($497.0 million)
- EBITDAX of $418.5 million, an increase of 97% versus 2021 comparable period ($212.1 million)
- On track to deliver mid-term annualised targets of $2.5bn of revenues and $1.75bn of EBITDAX
- Group cash as of 31 December 2022 was $498.0 million (including restricted amounts of $75 million) and total liquidity was $719.0 million
- Q3 2022 dividend of 30 US$cents/share paid on 30 December 2022; total of 60 US$cents/shares, representing two-quarters of dividend payments, returned to shareholders in 2022
- Carbon Disclosure Project ("CDP") rating increased A- (from B) and outperforming the global average for E&Ps of C
- Continued ramp-up of Karish to initial capacity of 6.5 bcm/yr
- Final stages of FPSO commissioning process now underway with completion expected February 2023
- Total sales gas in 2023 is expected to be between 4.5 and 5.5 bcm. The top end of this range is driven by the Annual Contract Quantity ("ACQ") under the gas sales agreements, whilst the bottom end of the range represents the Take Or Pay ("TOP") volumes; TOP is viewed by Energean as a highly conservative case. No spot market sales have been assumed in this range.
- First cargo of hydrocarbon liquids lifted under the contract with Vitol expected in February 2023
- Practical completion under the EPCIC contract with TechnipFMC and Technip Energies
- Delivery of development projects that are key to achieving Energean's mid-term production target of 200 kboed
- Installation of the second oil train and gas export riser, and first gas from Karish North expected by year-end 2023, debottlenecking FPSO capacity to 8 bcm/yr
- First gas from NEA/NI, Egypt expected in 1H 2023
- First gas from Cassiopea, Italy, expected in 1H 2024
- Israel expansion: development concept for the 67 bcm Olympus area to be communicated in 1H 2023
- Various commercial and technical solutions under consideration to identify development concept that will deliver the most value to shareholders
- Publication of Competent Persons Report ("CPR") to certify volumes, expected in 1Q 2023 and expected to include approximately 30 Bcm of 2P reserves and 37 bcm of volumes in nearby de-risked structures.
- Quarterly dividend payments to be declared in line with previously communicated dividend policy
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