Ithaca Energy scales back North Sea investment due to energy windfall tax

Ithaca Energy said today that its full-year earnings would be in line with its guidance, as the firm grapples with a sinking stock price.

The North Sea oil and gas producer said 2023 production had been 70.2 thousand barrels of oil equivalent per day, matching expectations of 78-74.

Last month, the firm’s chief executive Alan Bruce stepped down after two years, with many pointing to its stock price decline since its IPO as the reason.

The firm’s stock price is up 2.3 per cent this morning, having fallen 42.7 per cent since listing in November 2022.

Estimated net operating costs for the year came in at $524m (£417.5m), marginally better than management’s guidance of between $525m and $575m.

It is due to publish guidance for 2024, along with its full-year 2023 results, on 21 March.

Owned by the Israeli Delek Group, the firm has publicly complained about the government’s windfall tax on oil producers.

It said today it had reduced capital spending in 2023 as a “direct result of the Energy Profits Levy.”

Gilad Myerson, executive chair of Ithaca, commented: “I am pleased to report a strong set of 2023 results, with trading in line with guidance. We have made significant progress across our strategic objectives in 2023, delivering against our buy, build and boost strategy, including the milestone sanctioning of the Rosebank development.”

Iain Lewis, CFO and interim CEO, added: “We begin 2024 in a position of strength with a diverse portfolio of high-quality assets and significant investment optionality.

“Strict cost control and strong cash flow generation in 2023 has supported the continued deleveraging of the balance sheet with significant flexibility to support our future growth plans.”