Ithaca Energy Reports Strong First Quarter 2024 Results, Outperforming Expectations

Financial Highlights:

Revenue surged by 25% year-over-year to a record £405 million, driven by higher commodity prices and increased production.
Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reached £264 million, an increase of 31% compared to the same period last year.
Operating profit jumped by 48% to £204 million, reflecting the company's operational efficiency and cost control initiatives.
Net income attributable to Ithaca Energy shareholders amounted to £119 million, a 63% improvement over the first quarter of 2023.
Basic earnings per share (EPS) increased by 65% to 23.5 pence.

Operational Update:

Average daily production averaged 73,800 barrels of oil equivalent (boe) per day, representing an 11% increase compared to the previous quarter and exceeding the market consensus estimate of 72,000 boe per day.
The Catcher and Stella fields in the UK North Sea performed exceptionally well, contributing to the company's record production levels.
The FPF-1 facility, operated by Ithaca Energy in partnership with EnQuest, achieved an average daily production rate of 14,800 boe per day.
The Hannay and Hurricane fields in the UK North Sea commenced production, adding further to the company's output growth.

Strategic Developments:

Ithaca Energy completed the acquisition of Siccar Point Energy Holdings, a significant step in its growth strategy.
The integration of Siccar Point's assets, including the Cambo and Rosebank fields, is expected to further enhance Ithaca Energy's production portfolio and long-term growth prospects.
The company secured funding from a consortium of banks to support the acquisition, ensuring a solid financial foundation for future expansion.

Outlook:

Ithaca Energy remains optimistic about the future, citing strong commodity prices and the benefits of the Siccar Point acquisition.
The company expects to achieve an average daily production of approximately 85,000 boe per day in the second half of 2024.
Ithaca Energy is committed to investing in its assets, including the planned development of Cambo and Rosebank, to maximize value for shareholders.

Management Commentary:

Ben van Beurden, Ithaca Energy's CEO, commented: "These results demonstrate the strong performance of our existing assets and the transformational impact of the Siccar Point acquisition. We are well-positioned to deliver further growth and create long-term value for our shareholders."

Market Reaction:

Following the release of its first-quarter results, Ithaca Energy's stock price surged by 5% on the London Stock Exchange.
Analysts have praised the company's operational performance and its strategic acquisition of Siccar Point, which is expected to accelerate its growth trajectory.