Ithaca Energy (LON: ITH), the North Sea-focused oil and gas producer, saw its shares jump on Wednesday after reporting record quarterly production and raising its 2026 dividend guidance. The results, published before the London open, showed the company reaffirming full-year output targets even as rivals scale back North Sea activity.
Shares opened at 250.4p and rose as much as 7.8% intraday to 270.2p, trading around 265.88p in mid-morning trade, up 5.68% from Tuesday’s close of 251.6p. That leaves the stock close to its 52-week high of 290.8p, set in May.
Ithaca reported record quarterly production of 131 thousand barrels of oil equivalent per day (kboe/d) in the second quarter, taking average output for the first half to 128 kboe/d, up from 124 kboe/d a year earlier. Management reaffirmed full-year production guidance of 120-130 kboe/d and cut net operating cost guidance to $800-840m from $820-860m. Executive Chairman Yaniv Friedman said the company had delivered “another strong quarter and first half performance in 2026, demonstrating the strength of our business”, adding that record production, robust cash generation and disciplined capital allocation had allowed it to “reaffirm full year production guidance, reduce operating cost guidance and increase our dividend outlook for the year”.
The stronger operational performance let Ithaca raise its full-year 2026 dividend guidance to $500-530m, from $470-520m previously, and declare a first interim dividend of $255m, or $0.1542 per share. Adjusted EBITDAX, a measure of underlying cash earnings before interest, tax, depreciation and exploration costs, was $1,121.4m for the half, broadly flat on H1 2025’s $1,117.0m. The company swung to a profit of $127.0m, against a loss of $217.5m a year earlier that had reflected a one-off $327.6m deferred tax charge. Adjusted net debt fell to $1.0bn at the end of June, from $1.3bn at the end of 2025, taking leverage down to 0.49 times earnings.
The results show that North Sea operators can still grow shareholder returns even as peers such as BP (LON: BP.), the oil major, retreat from the basin. Ithaca also reaffirmed that its Rosebank development remains on track for first oil in the first half of 2027. (Rosebank – still awaiting final approval by the government)
The dividend increase was funded by lower costs and record output rather than one-off items, underlining the strength of the company’s underlying cash generation.