Energean production ramps up in third quarter

(Sharecast News) - Mediterranean and UK North Sea-focused gas explorer Energean said it expects full-year output to be in line with guidance despite the "challenging geopolitical and macro environment" in Israel.

The company, which is currently focused on gas production offshore Israel, supplying around a half of all Israeli gas demand, said production jumped 35% over the three months to 30 September as operations picked up after temporary shutdowns in the second quarter.

Production over the first three quarters combined averaged 151,000 barrels of oil equivalents per day, down 3% over the same period last year.

Results so far this year have been hit by a planned shutdown for essential works in March and the Israeli government ordering the suspension of production for security reasons in June, along with lower Brent crude prices.

Nine-month revenues totalled $1.29bn, down from $1.36bn the year before, while adjusted earnings before interest, tax, depreciation, amortisation and exploration expenses fell to $828m from $894m.

Full-year guidance for production, general and administrative expenses, exploration and decommissioning remains unchanged, while Energean's cost of production forecast has been lowered to $550m-590m from $560m-600m due to cost reductions in Greece.

However, total development and production cost guidance has been lifted to $580-620m from $480-520m due to the quicker-than-expected ramp up of operations in Israel.

"Production increased in the third quarter, rising 35% quarter-on-quarter to average 176 kboed, reflecting operational excellence and robust summer gas demand in Israel following the temporary suspension in June," said chief executive Mathios Rigas.

"Energean is focused, disciplined, and positioned for sustainable growth, including a key investment year in 2026, with multiple near-term catalysts and a clear pathway to long-term value creation."