Energean Sees Profit Boost Amid Expansive Gas Strategy

Gas producer Energean reported increased first-half profits due to strong summer demand in Israel. The company plans to expand in Europe, the Middle East, and Africa, selling assets in Egypt, Italy, and Croatia for $945 million. Energean aims to double production, investing heavily in Israel's Katlan project.

Gas producer Energean has posted a higher first-half profit, fueled by a surge in production driven by robust summer demand in Israel, which accounts for more than 70% of its total output. The company is exploring expansion opportunities across Europe, the Middle East, and Africa, with a focus on regions that offer long-term policy support for gas and a transition from coal.

In June, Energean agreed to sell its assets in Egypt, Italy, and Croatia to private equity fund Carlyle for up to $945 million. The company plans to disburse a special dividend of up to $200 million following the completion of this deal, expected by year's end.

Production in the first half rose by 38% to 146 thousand barrels of oil equivalent per day (kboepd), driven by the Karish and Karish North fields in Israel. However, the average realized gas price fell by 12% to $4.6 per thousand cubic feet (mcf). Despite ongoing conflict, daily production in Israel remains uninterrupted, though operational costs are rising due to increased wages and insurance costs. Energean has revised its production forecast for the year to 155-165 kboepd.

CEO Mathios Rigas stated that Energean aims to double its production in the coming years, primarily through new developments in Israel, including the Katlan field. In July, the company committed $1.2 billion to develop the Katlan project, with gas output expected to commence in early 2027. Analysts see these results as positive despite a challenging macroeconomic and political environment.

(With inputs from agencies.)