Energean profits fall after Iran war forces shutdown

(Sharecast News) - Israel-focused oil and gas producer Energean on Wednesday posted a fall in half-year profit as a result of a 41-day production suspension due to the US-Israeli war on Iran.

The company said adjusted earnings before interest, tax, depreciation, amortisation and exploration expenses fell 5% to $478m in the six months to June 30 and reiterated guidance for the full year. However, it cut exploration expenditure forecasts to $5-10m from $10-15m.

Profit after tax jumped 45% to $160m on a lower effective tax rate driven by the recognition of previously unrecognised deferred tax assets in Italy.

Production in the first half was hit by the shutdown in Israel and lower Italian output, leaving average working‑interest production at 124 Kboe/d and sales volumes down year‑on‑year.

Energean said output has since rebounded strongly, with eight‑month production averaging 135 Kboe/d and August standalone rates topping 180 Kboe/d, keeping the group on track for full‑year guidance.

Revenue from production eased to $743m, though higher realised liquids pricing lifted liquids revenue 14% to $267m.

Reporting by Frank Prenesti for Sharecast.com