ITHACA
ENERGY PLC
("Ithaca
Energy", the "Company" or the "Group")
FY 2023
Trading Update
Robust
financial performance and continued strategic delivery
15
February 2024
Ithaca Energy, a leading UK
independent exploration and production company, today provides the
following unaudited trading update for the year ended 31 December
2023, ahead of announcing its Full Year Results on 21 March
2024.
·
2023 full year production of 70.2 thousand barrels
of oil equivalent per day (kboe/d), in line with previously stated
guidance of 68-74 kboe/d
- Underpinned by high levels of production efficiency across our
operated asset base of 84%
- Production split 66% liquids and 34% gas
·
Estimated 2023 net operating costs of $524
million, representing a net unit opex cost of $20.5/boe, marginally
better than the lowered management guidance of $525 - $575
million
- Internal cost optimisation project driving strong cost control
in an inflationary environment
·
Estimated 2023 net producing asset capital cost of
$392 million, in line with management guidance of $390 - $435
million
- Reflects a reduction in planned activity in the year as a
direct result of the Energy Profits Levy
·
Estimated 2023 net Rosebank capital spend of $97
million, in line with management guidance of $90 - $110 million and
reflecting the meaningful activity in 2023
as project activity ramps up to support a targeted first oil date
in 2026/27
·
Estimated 2023 adjusted EBITDAX of $1.7 billion
(2022: $1.9 billion)
·
Strong cash flow generation supporting continued
deleveraging of the balance sheet with net debt of $572 million at
period end, representing an estimated Group leverage position of
0.3x
·
The Group's available liquidity stands at over
$1.1 billion, including undrawn RBL availability of $835 million
following completion of the latest redetermination
·
Full year 2023 total dividend of $400
million reaffirmed, with remaining $134 million payment
payable following the publication of the full year
results
·
The Group expects to publish guidance for 2024
with the full year 2023 results on 21 March 2024 together with a
full Competent Persons Report (CPR), including field economic
outputs, prepared by an independent reserves auditor
Gilad Myerson, Executive Chairman, 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, Chief Financial Officer & Interim Chief
Executive Officer, commented: "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."
Enquiries
About Ithaca Energy plc
Ithaca Energy is a leading UK
independent exploration and production company focused on the UK
North Sea with a strong track record of material value creation. In
recent years, the Company has been focused on growing its portfolio
of assets through both organic investment programmes and
acquisitions and has seen a period of significant M&A driven
growth centred upon two transformational acquisitions in recent
years. Today, Ithaca Energy is one of the largest independent oil
and gas companies in the United Kingdom Continental Shelf (the
"UKCS"), ranking second by resources.
With stakes in six of the ten
largest fields in the UKCS and two of UKCS's largest
pre-development fields, and with energy security currently being a
key focus of the UK Government, the Group believes it can utilise
its significant reserves and operational capabilities to play a key
role in delivering security of domestic energy supply from the
UKCS.
Ithaca Energy serves today's needs
for domestic energy through operating sustainably. The Group
achieves this by harnessing Ithaca Energy's deep operational
expertise and innovative minds to collectively challenge the norm,
continually seeking better ways to meet evolving
demands.
Ithaca Energy's commitment to
delivering attractive and sustainable returns is supported by a
well-defined emissions-reduction strategy with a target of
achieving net zero by 2040.
Ithaca Energy plc was admitted to
trading on the London Stock Exchange (LON: ITH) on 14 November
2022.
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