Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Ithaca eyes UK tie up with Eni; Profits slump on UK tax levy
(Sharecast News) - North Sea oil and gas producer Ithaca Energy on Wednesday said it was looking at a potential tie-up with Italy's largest energy firm Eni covering its UK assets and reported a slump in annual profits blaming the British government's energy tax and project impairments. Ithaca said it had been given a four-week exclusivity period from Eni to make a potential offer for its UK upstream assets.
The company said it will buy Eni UK in exchange for its own shares, with Eni becoming a major shareholder by holding 38-39% of the enlarged issued share capital.
A potential offer for Eni's UK assets includes its recently acquired Neptune Energy assets, but excludes its carbon capture, utilisation and storage and Irish sea assets, Ithaca said.
Buying Eni's UK assets could add a further 40,000-45,000 boe/d to output, taking the total to more than 100,000 boe/d, it added.
Meanwhile, it reported a plunge in full-year profit to $215.6 from $1.03bn. Production came in at 70,239 barrels of oil equivalent per day (boe/d) in 2023, lower than the previous year's record 71,403 boe/d but in line with guidance of between 68,000 and 74,000 boe/d.
Ithaca said it expected 2024 production in a range of 56-61 kboe/d reflecting a reduction in investment in near-term projects as a direct result of the energy profits levy including deferred or cancelled projects at the Greater Stella Area, Montrose Arbroath Area, Elgin Franklin Area and Alba fields.
Ithaca, owned by Tel Aviv-listed Delek Group, incurred a $557.9m pre-tax impairment charge and paid a $333.4m bill under the levy, which was extended for a year by Finance Minister Jeremy Hunt in his budget earlier this month.
"The energy profits levy continues to have a direct impact on investment in the UK North Sea, with projects across our operated and non-operated deferred or cancelled. The extension of the levy by a further year to a sunset date of March 2029, highlights the continued fiscal uncertainty our sector faces," said interim chief executive Iain Lewis.
Reporting by Frank Prenesti for Sharecast.com
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.