Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • ITH's H1 2025 production averaged 123.6 kboe/d, more than double the prior year, with adjusted EBITDAX exceeding $1.1 billion.

  • Shareholder distributions remain a priority, with $167 million interim dividend declared and total 2025 cash returns expected to reach $500 million.

  • Full-year 2025 production guidance has been raised to 119–125 kboe/d, with operating cost guidance lowered to $790–840 million.

Ithaca Energy (LSE:ITH) today announced its unaudited financial results for the six months ended 30 June 2025, highlighting a step-up in production, improved cost efficiency, and progress across growth projects and shareholder return commitments.

Financial and Operational Performance

Average production during the first half of 2025 was 123.6 thousand barrels of oil equivalent per day (kboe/d), compared with 53.0 kboe/d in the first half of 2024. Adjusted EBITDAX rose to more than $1.1 billion, an increase from $533 million in the prior-year period. Operating expenditure per barrel declined to $17.5/boe, compared with $27.3/boe a year earlier.

The company ended the half-year period with available liquidity exceeding $1.2 billion and a low pro forma leverage ratio of 0.32x. In addition, an additional 9 million barrels of oil equivalent of hedges were added in the second quarter to provide further cash flow protection.

Shareholder Distributions

Ithaca declared its first interim 2025 dividend of $167 million, equal to $0.101 per share, and reaffirmed its full-year dividend target of $500 million. The company also confirmed that the second interim dividend of $133 million will be accelerated to December 2025. Together, these distributions are expected to deliver $500 million in cash returns to shareholders during the year.

Investment and Growth Projects

Ithaca continued to advance organic investments during the first half of 2025, focusing on production reliability, efficiency, and incremental well activity. Key project milestones included:

  • Rosebank Project: Execution progressing across all work fronts, with a full project update scheduled for Q4 2025.

  • Cambo Licence: An 18-month extension granted, with technical updates completed, providing a pathway to final investment decision (FID) and potential farm-down.

  • Tornado Gas Discovery: Advancing through front-end engineering design (FEED) with no objection from the UK’s North Sea Transition Authority (NSTA).

Portfolio Activity

The company also progressed its UK Continental Shelf (UKCS) growth strategy during the period. The acquisition of Japex UK E&P was completed on 7 July 2025, and the purchase of a further 46.25% interest in the Cygnus Field from Spirit Energy is expected to close on 1 October 2025, subject to regulatory approval.

Upgraded FY 2025 Guidance

Following the first-half performance, Ithaca has updated its full-year guidance. Production is now expected to average between 119–125 kboe/d, compared with the previous range of 109–119 kboe/d. Net operating cost guidance has been reduced to $790–840 million, equivalent to $17–19 per barrel, while capital expenditure guidance has been revised modestly upwards to reflect foreign exchange effects and additional well activity in the J Area.

Capital costs for Rosebank are now expected to be $230–270 million, with increased expenditure later in the year as work on the Floating Production Storage and Offloading (FPSO) vessel nears completion.