Ithaca Energy (ITH) Surges on Strong H1 Performance, Upgrades Full-Year Guidance

Ithaca Energy PLC (ITH.L) has announced a robust first half of 2025, exceeding expectations and leading to an upgrade in its full-year guidance.

The company's shares reacted positively to the news, rising more than 6%, currently trading around the 189.8p per share mark. The stock earlier hit a high above 194p. This year, Ithaca shares have surged, rising more than 72%.

Price Targets

Adjusted EBITDAX reached over $1.1 billion, more than double the $533.0 million recorded in H1 2024.

Profit before tax also saw a significant increase, climbing to $513.4 million from $189.4 million in the same period last year. The company's strong cash flow is a key highlight, with net cash flow from operating activities reaching over $1 billion.

Ithaca Energy declared a $167 million first interim dividend, equivalent to $0.101 per share. Furthermore, the company anticipates accelerating the second interim dividend of $133 million to December 2025.

This reinforces the Group's FY 2025 dividend target of $500 million, demonstrating a clear focus on delivering value to its investors.

The company's operational efficiency has improved. Opex per barrel has materially reduced to $17.5/boe in H1 2025 from $27.3/boe in H1 2024. The company also boasts a low pro forma leverage position of 0.32x with available liquidity exceeding $1.2 billion.

Driver Breakdown:

• Production Surge: Average production jumped to 123.6 kboe/d, more than double the 53.0 kboe/d in H1 2024.
• Cost Efficiency: Significant reduction in operating expenses per barrel, enhancing profitability.
• Strategic Acquisitions: Completion of the Japex UK E&P acquisition and increased stake in the Cygnus Field expand Ithaca's asset base.

AskTraders Takeaway:

The upgraded FY 2025 production guidance, now ranging from 119-125 kboe/d (previously 109-119 kboe/d), signals strong operational performance.

This, coupled with reduced net operating cost guidance ($790-840 million), paints a positive picture.

Executive Chairman, Yaniv Friedman, commented: “Our first-half results demonstrate the strength and resilience of our transformed business.”

“As we adjust our guidance upwards for the remainder of the year, we continue to remain focused on maximising long-term value creation and returns for our shareholders.”

Despite a (Loss)/profit for the period of ($217.5) million, this reflects a one-off, non-cash deferred tax charge in Q1 2025 of $327.6 million due to the two-year extension of EPL to 31 March 2030.