Energean
plc
("Energean" or the
"Company")
Results for Half-Year Ended
30 June 2024
London, 11 September 2024 -
Energean plc (LSE: ENOG TASE: אנאג) is pleased to announce its
half-year results for the six months ended 30 June 2024
("H1 2024").
Operational Highlights:
· Record production to date in the period, with Group
production in June 2024 averaging 177 kboed (84% gas), including
140 kboed (86% gas) from the continuing operations[1], reflecting the step-up in demand during the
summer in Israel.
· Group production during H1 2024 was 146 kboed (82% gas), a
38% increase year-on-year (H1 2023: 106 kboed).
o Production from the continuing operations1 during
H1 2024 was 106 kboed (84% gas), a 47% increase year-on-year (H1
2023: 72 kboed).
o Group production for the eight-months to August 2024 was 154
kboed, of which 115 kboed was from the continuing
operations1.
o Day-to-day production in Israel continues to be unimpacted by
the ongoing geopolitical developments. FPSO uptime[2] (excluding planned shutdowns) was 99% in H1
2024.
· Strategic sale of Egypt, Italy and Croatia portfolio (the
"Transaction") to an entity
controlled by Carlyle International Energy Partners
("Carlyle") targeted to
complete by year-end 2024, subject to customary regulatory and
antitrust approvals.
o Anti-trust and government approvals submitted and progressing
on schedule. Carlyle received unconditional clearance from the
Italian Competition Authority in August and approval of the Italian
Presidency of the Council of Ministers in September, in respect of
the Italian Golden Power Law.
o Energean continues to expect to have sufficient funds at
closing to repay in full the $450 million PLC Corporate Bond in
priority and facilitate a special dividend of up to $200
million.
· Key
projects brought online.
o In Israel, Karish North first gas and the second gas export
riser completion was achieved in February 2024. Second oil train
heavy lift vessel contract signed, expected to be installed in the
coming months.
o In Italy, Cassiopea started-up in August 2024. The remaining
three wells and associated facilities are expected to be brought
online, tested and commissioned over the coming months.
o In Egypt, Location B gas production was brought online in
August 2024.
· Core
gas projects underway and decarbonisation business progressing to
facilitate future growth.
o Final Investment Decision ("FID") on Katlan (Israel)
taken in July 2024; first gas is planned for H1 2027. Energean
expects spending to accelerate reflecting progress so far and
anticipated progress for the year.
o Anchois (Morocco) drilling operations continue, with
preliminary analysis indicating volumes found in the Anchois-3 well
are lower than pre-drill estimates. Further updates to follow once
Anchois-3 ST drilling operations and ongoing technical evaluation
are complete.
o Prinos carbon storage project: (1) Front-End Engineering
Design ("FEED") activities
progressing, including phase 2 that targets to establish a facility
with a capacity of up to 3 million tons of CO2 per year; (2)
storage permit for phase 1 (1 million tons of CO2 per year)
anticipated to be received in the coming months.
Financial Highlights:
· Record financial results for the 6-months to 30 June 2024,
following the start-up of Karish North and the completion of the
second gas export riser (Israel).
o Revenues of $867 million, a 47% increase (H1 2023: $588
million), of which $643 million is associated with the continuing
operations1.
o Adjusted EBITDAX[3] of $568 million,
a 65% increase (H1 2023: $345 million), of which $436 million is
associated with the continuing operations1.
o The Group recorded total impairments of $76 million during
the period, $61 million of which was in relation to the Orion X1
exploration well in Egypt.
o Profit after tax of $89 million, a 27% increase (H1 2023: $70
million), of which $116 million is associated with the continuing
operations1.
· Group leverage[4] (net
debt/annualised Adjusted EBITDAX) reduced to 2.5x (FY 2023:
3.1x).
o Group cash as of 30 June 2024 was $345 million, including
restricted amounts of $86 million[5], and total
liquidity was $511 million[6]. This includes
cash for the continuing operations1 of $317 million,
including restricted amounts of $86 million6, and total
liquidity of $483 million.
Corporate Highlights:
· Q2
2024 dividend of 30 US$ cents/share declared today, scheduled to be
paid on 30 September 2024[7].
o Including the Q2 2024 dividend, approximately $486 million
will have been returned to shareholders since payments
began.
o Energean reiterates its commitment to the existing dividend
policy, which targets to return $1 billion to shareholders by the
end of 2025. The Group expects to redefine its dividend policy upon
Transaction closing.
· Group Scope 1 and 2 emissions intensity of 8.5 kgCO2e/boe, a
20% reduction versus H1 2023[8]. Scope 1 and 2
emissions intensity for the continuing operations1 was
6.2 kgCO2e/boe.
2024 guidance:
· Group production guidance narrowed to 155 - 165 kboed (from
155-175 kboed) for 2024, to reflect year-to-date performance in
Israel and the actual start-date and expected ramp-up to full
production of Cassiopea (Italy). 115-125 kboed is associated with
the continuing operations1.
· Group cash cost of production (including royalties) reduced
to $550-600 million (from $570-630 million), predominantly due to
lower forecasted royalties in Israel. $375-405 million is
associated with the continuing operations1.
· Development and production capital expenditure increased to
$600-700 million (from $500-600 million), $60 million of this
increase is related to Israel and the remainder to the disposal
group. The increase in Israel is due to expected completion of
milestones on the Katlan project (Israel) in 2024 versus 2025,
reflecting progress so far and anticipated progress for the year.
$320-380 million is associated with the continuing
operations1.
Financial Summary
|
|
H1 2024
Energean
Group
|
H1 2023
Energean
Group
|
Increase/ (Decrease)
%
|
H1 2024
Continuing
operations
|
H1 2023
Continuing
operations
|
Increase/ (Decrease)
%
|
|
Average daily working interest
production (kboed)
|
146
|
106
|
38%
|
106
|
72
|
47%
|
|
Sales revenue ($m)
|
867
|
588
|
47%
|
643
|
376
|
71%
|
|
Cash cost of production per barrel
($/boe)
|
10
|
12
|
(17%)
|
10
|
11
|
(9%)
|
|
Cash G&A[9]
|
19
|
18
|
6%
|
10
|
9
|
11%
|
|
Adjusted
EBITDAX3
($m)
|
568
|
345
|
65%
|
436
|
230
|
90%
|
|
Profit after tax ($m)
|
89
|
70
|
27%
|
116
|
27
|
330%
|
|
Capital expenditure
($m)
|
393
|
291
|
35%
|
211
|
151
|
40%
|
|
Decommissioning expenditure
($m)
|
16
|
4
|
300%
|
5
|
0
|
100%
|
|
|
H1 2024
Energean
Group
|
FY 2023
Energean
Group
|
|
Net debt ($m) (including
restricted cash)
|
2,902
|
2,849
|
|
Leverage4 (net debt / adjusted
EBITDAX)
|
2.5x
|
3.1x
|
Mathios Rigas, Chief Executive of Energean,
commented:
"I am pleased to report our
highest ever set of half-year results, with double digit
year-on-year growth in production, revenue and adjusted EBITDAX. In
Israel, we achieved record monthly production, reflecting the
step-up in demand during the summer and excellent uptime of the
FPSO. Our operations remain resilient in the face of ongoing
geopolitical developments and our day-to-day production has
remained unimpacted.
"During this period, we also
continued our track record of maximising value for our
shareholders, announcing the divestment of our Egyptian, Italian
and Croatian portfolio to Carlyle for more than
3x[10] the value
that we paid for them. Good progress is being made towards
completion, upon which we expect to reduce gross debt and return
money to shareholders in line with previous
announcements.
"Our strong operational and
financial performance underpins our quarterly dividend, which we
have consistently paid in line with our policy. As previously
communicated, we expect to redefine our dividend policy upon
Transaction closing.
"We have also made significant
progress on our key strategic areas, from advancing our gas-focused
growth projects through the Katlan FID and the start-up of
Cassiopea and Location B, to progressing our decarbonisation
business via the Prinos Carbon Storage project, where we anticipate
receiving the storage permit for phase 1 (1 million tons of CO2 per
year) in the coming months.
"This is only the start of a new
chapter in the Energean story. The combination of operational
excellence and entrepreneurial deal-making is the foundation on
which a new Energean will continue to deliver for its shareholders.
We continue to be committed to our objectives of consistent returns
to shareholders, capital discipline and responsibly produced energy
with outstanding Environmental, Social and Governance
("ESG")
ratings."
Enquiries
|
For capital
markets: ir@energean.com
|
|
|
Kyrah McKenzie, Investor Relations
Manager
|
Tel: +44 (0) 7921 210
862
|
|
|
|
|
For media: pblewer@energean.com
|
|
|
Paddy Blewer, Corporate Communications Director & Head of
CSR
|
Tel: +44 (0) 7765 250
857
|
Conference
call
A webcast will be held today at
08:30 BST / 10:30 Israel Time.
Webcast: https://brrmedia.news/ENOG_HY_24
Dial-In: +44 (0) 33 0551
0200
Dial-in (Israel only): +972
(0) 3 376 1321
Confirmation code (if prompted): Energean Half Year
The presentation slides will be
made available on the website shortly www.energean.com.
Energean Operational
Review
Production
Energean continued to deliver
strong production levels in H1 2024. Group average working interest
production was 146 kboed (82% gas), up 38% year-on-year, primarily
as a result of the start up of Karish North and the completion of
the second gas export riser in Israel.
|
|
H1 2024
Kboed
|
H1 2023
Kboed
|
H1 %
change
|
Eight-months to 31 August
2024
Kboed
|
|
Israel
|
104
(inc.
2.5 bcm of
sales
gas)
|
70
(inc.
1.8 bcm of
sales
gas)
|
49%
|
113
(inc.
3.7 bcm of sales gas)
|
|
Europe
|
2.1
|
1.6
|
31%
|
2.1
|
|
Total continuing operations
|
106
|
72
|
47%
|
115
|
|
Disposal Group
|
40
(inc. 31 in Egypt)
|
34
(inc. 25 in Egypt)
|
18%
|
39
(inc. 31 in Egypt)
|
|
Total Group production
|
146
|
106
|
38%
|
154
|
Israel
Production
In the 6-months to 30 June 2024,
working interest production from Israel averaged 104 kboed (86%
gas). Gas production increased by 44% year-on-year primarily due to
the start-up of Karish North and the completion of the second gas
export riser. Liquids production increased by 84% year-on-year.
Day-to-day production in Israel continues to be unimpacted by the
ongoing geopolitical developments. FPSO uptime (excluding planned
shutdowns) was 99%[11] in H1
2024.
In May 2024, the FPSO successfully
completed a scheduled 5-day turnaround for routine
maintenance.
In June 2024, production during
the period reached record levels, with output averaging 137 kboed,
as a result of strong summer gas demand. Average production in
August 2024 was 139 kboed.
Energean continues to focus on
optimising production from the FPSO, including the integration of
Karish North, and looks forward to bringing on M10 to provide
further flexibility in its liquids and gas handling
capacity.
Commercial
In line with Energean's ongoing
strategy to secure long-term reliable cash flows from long-term gas
contracts, a Gas Sale and Purchase Agreement ("GSPA") with Eshkol Energies
Generation LTD was signed in February 2024. The contract is for the
supply of an initial 0.6 bcm/yr, which commenced in June 2024,
rising to 1 bcm/yr from 2032 onwards and represents circa $2
billion in revenues over the life of the 15 year
contract.
Energean has also signed two
contracts with two peaker stations for the supply of 0.1 bcm/yr
each, commencing in October 2024 and May 2025 respectively,
representing around $400 million in revenues over the life of the
contracts.
Development
Karish Growth Projects
In February 2024, Karish North
first gas and the completion of the second gas export riser were
safely achieved.
Energean has signed a contract for
the heavy lift vessel to transport and lift the second oil train,
which will increase the FPSO's liquids production capacity. This
lift is expected to occur in the coming months and will utilise the
scheduled shutdown of production from the FPSO for routine
maintenance. Post-lift, installation and commissioning activities
are expected to take up to 6-months to complete, with liquids
production expected to increase to 20-25 kbbl/d in H2
2025.
Katlan
In July 2024, Energean took FID on
its Katlan development project, following the grant of the
associated 30-year lease from the Ministry of Energy and
Infrastructure. Capital expenditure is expected to be approximately
$1.2 billion and entails:
· Drilling: re-entry and completion of the Athena and Zeus
wells.
· Facilities: (1) Installation, amongst others, of a
four-well-slot tieback capacity to a single large ~30 kilometre
production line that can be used by future phases, for which
Energean has awarded the integrated engineering, procurement,
construction and installation ("iEPCITM") contract to
TechnipFMC through its subsidiary Technip UK Limited. (2) An
upgrade of the FPSO topsides related to MEG treatment, injection
and storage (which will benefit all future subsea tie-back
developments).
First gas is planned for H1
2027.
Morocco
In April 2024, Energean completed
the farm-in to Chariot Limited's ("Chariot", AIM:CHAR) acreage offshore
Morocco.
In August 2024, Energean (W.I.
45%; operator), alongside its partners Chariot (30%) and ONHYM
(25%), started drilling the Anchois-3 appraisal well using the
Stena Forth drillship on the Lixus licence. Drilling operations on
the licence continue, with preliminary analysis indicating volumes
found in the Anchois-3 well are lower than pre-drill estimates.
Further updates will follow once Anchois-3 ST drilling operations
and ongoing technical evaluation are complete.
Greece
The Prinos Carbon Storage project
(W.I. 100%), which has the potential to store up to 3 million tons
of CO2 per year over 25 years, is one of the largest and most
advanced carbon storage projects in Southern Europe.
Energean, through its subsidiary
EnEarth, has made good progress during 2024, with the Storage
Permit application and the Environmental Impact Assessment
submitted for the project's first phase of 1 million tons of CO2
per year. Energean anticipates that it will receive the storage
permit for phase 1 in the coming months. FEED activities for the
second phase, which targets to establish a facility with a capacity
of up to 3 million tons of CO2 per year, are
progressing.
UK
Energean is focused on optimising
production from its late life assets and effectively managing its
decommissioning projects.
An infill well was drilled on the
Scott field (W.I. 10%) in H1 2024 and is expected to be brought
online later this year. In 2025, an injector well on the Scott
field is expected to be drilled.
In July 2024, Energean UK Limited
awarded a contract to Petrodec UK Limited ("Petrodec") for the decommissioning of
the Tors (W.I. 68%; operator) and Wenlock (W.I. 80%; operator)
assets. This contract includes: the plugging and abandoning of
eight platform wells with optional scope for one E&A well, the
removal of three platforms and the cleaning of inter-field
pipelines. Total net decommissioning expenditure for Tors and
Wenlock is expected to be around GBP 80 million over the next five
years and includes expenditure outside of the Petrodec contract
for, amongst others, operational and project management costs,
regulatory fees and subsea remediation works.
Strategic sale of Egypt, Italy & Croatia portfolio
targeted to complete by year-end 2024
In June 2024, Energean entered
into a binding agreement for the sale of its portfolio in Egypt,
Italy and Croatia to an entity controlled by Carlyle for an
enterprise value ("EV") of up to $945 million, of which $820 million is firm. This
represents more than a 3x[12] return since
the portfolio was acquired for $284 million in 2020. The economic
effective date of the Transaction is 31 December 2023.
This sale enables Energean to
rationalise the portfolio and focus on its gas-weighted,
gas-development strategy. It also optimises the portfolio by
divesting later life assets, removing over 60% of the Group's
decommissioning liabilities, and improving free cashflow generation
in the short to medium-term.
Completion is targeted by year
end-2024, with all regulatory and antitrust approvals having been
submitted to the relevant authorities. Carlyle received
unconditional clearance from the Italian Competition Authority in
August and approval of the Italian Presidency of the Council of
Ministers in September, in respect of the Italian Golden Power
Law.
Disposal group - operational update
Working interest production from
Egypt, Italy and Croatia in H1 2024 averaged 40 kboed (75% gas), up
18% year-on-year due to the completion of NEA/NI (Egypt) in
December 2023 and the start-up of the NAQPII#2 infill well on the
Abu Qir field in January 2024.
Egypt
In March 2024, the Orion X1
exploration well (W.I. 19%) reached the target reservoir.
Post-drilling well analysis indicates no commercial
hydrocarbons.
In August 2024, Energean (W.I.
100%) brought the Location B infill well on the Abu Qir licence in
Egypt onstream.
Italy
In August 2024, initial test
production began from one of the four subsea wells on the Cassiopea
field, offshore Italy (W.I. 40%). The remainder of the wells and
associated facilities are expected to be brought online, tested and
commissioned over the coming months.
ESG and climate change
Energean is committed to net zero
emissions by 2050 and industry-leading disclosure of its energy
transition intentions.
Energean's scope 1 and 2 emissions
intensity in H1 2024 was 8.5 kgCO2e/boe, a 20% reduction versus H1
2023. This year-on-year reduction was primarily driven by: (1) the
growth of production in Israel which has a lower emissions
intensity compared to the wider group and (2) reduced fugitive
methane emissions in Egypt following Leak, Detection and Repair
("LDAR") campaigns. The
Group's 2024 emissions intensity is expected between 8.5-9.0
kgCO2e/boe.
Scope 1 and 2 emissions intensity
for the continuing operations1 was 6.2 kgCO2e/boe.
Post-close the Group's scope 1 and 2 emissions intensity will
reduce by around 40% to ~5 kgCO2e/boe, accelerating its 2035 target
of 4-6 kgCO2e/boe by 10 years.
ESG reporting and ratings
Energean is pleased to report,
following Sustainalytics' May 2024 update, that it continues to be
ranked in the top quartile of its sector, ranking 46 out of 307 oil
and gas producers.
Financing
As announced in June 2024,
Energean expects sufficient cash proceeds at closing of the
Transaction to repay in full the $450 million PLC Corporate
Bond.
Energean intends to refinance its
2026 Energean Israel Limited bond to maintain an efficient capital
structure, freeing up liquidity for its Katlan
development.
Full Year 2024
guidance
|
|
Group
|
Continuing
operations
|
|
Total production (kboed)
|
155 - 165 (narrowed from 155 -
175)
|
115-125
|
|
|
|
|
|
Consolidated net debt ($ million)
|
2,900-3,000 (increased from 2,800 -
2,900)
|
-
|
|
|
|
|
|
Cash Cost of Production (operating costs plus royalties; $
million)
|
550-600 (reduced from
570-630)
|
375-405
|
|
|
|
|
|
Development & production capital expenditure ($
million)
|
600-700* (increased from
500-600)
|
320-380
|
|
|
|
|
|
Exploration expenditure ($ million)
|
115-150 (reduced from
120-155)
|
80-105
|
|
|
|
|
|
Decommissioning expenditure ($ million)
|
40-50 (unchanged)
|
15-20
|
*Energean's development and
production capital expenditure guidance includes Katlan and
Location B expenditure. However, under IFRS accounting standards,
the H1 2024 results classifies this expenditure under exploration
and appraisal expenditure.
Energean Financial
Review
Financial results summary
|
|
H1 2024
Energean Group[13]
|
H1 2023
Energean
Group1
|
Increase/ (Decrease)
%
|
H1 2024
Continuing
operations
|
H1 2023
Continuing
operations
|
Increase/ (Decrease)
%
|
|
Average daily working interest
production (kboed)
|
146
|
106
|
38%
|
106
|
72
|
47%
|
|
Sales revenue ($m)
|
867
|
588
|
47%
|
643
|
376
|
71%
|
|
Realised weighted average liquid
price ($/boe)
|
74.8
|
65.1
|
15%
|
79.8
|
71.0
|
12%
|
|
Realised weighted average gas
($/mcf)
|
4.6
|
5.2
|
-12%
|
4.3
|
4.4
|
-2%
|
|
Cash cost of
production[14] ($m)
|
271
|
231
|
17%
|
189
|
139
|
36%
|
|
Cash cost of production per barrel
($/boe)
|
10
|
12
|
-17%
|
10
|
11
|
-9%
|
|
Cash G&A[15]
|
19
|
18
|
6%
|
10
|
9
|
11%
|
|
Adjusted EBITDAX[16] ($m)
|
568
|
345
|
65%
|
436
|
230
|
90%
|
|
Profit after tax ($m)
|
89
|
70
|
27%
|
116
|
27
|
330%
|
|
Earnings per share (cents per
share)
|
$0.48
|
$0.39
|
23%
|
$0.63
|
$0.17
|
271%
|
|
Cash flow from operating
activities ($m)
|
527
|
233
|
126%
|
447
|
141
|
217%
|
|
Capital expenditure
($m)
|
393
|
291
|
35%
|
211
|
151
|
40%
|
|
|
H1 2024
Energean
Group
|
FY 2023
Energean
Group
|
|
Total borrowings ($m)
|
3,247
|
3,221
|
|
Cash and cash equivalents and
restricted cash ($m)
|
345
|
372
|
|
Net debt ($m) (including
restricted cash)
|
2,902
|
2,849
|
|
Leverage Ratio (Net Debt/ Adjusted
EBITDAX)
|
2.5x
|
3.1x
|
Revenue, production and commodity prices
Group
Group working interest production
averaged 146 kboed with the Karish and Karish North fields
contributing over 70% of total output. Increased production in
Israel compared to the previous year, coupled with full-period
production from NEA/NI, led to a 38% increase in group production
output during H1 2024. However, this was partially offset by an 11%
decrease in gas production in Italy, while oil production remained
stable. Despite regional variations, the overall group production
mix remained consistent at 82% gas and 18% liquids (H1 2023: 82%
gas and 18% liquids).
H1 2024 revenue in Group level
totalled $867 million, reflecting a 47% increase from the prior
period (H1 2023: $588 million). This growth was primarily driven by
sales from Israel, which accounted for 70% of Group total revenue
(H1 2023: 59%).
The weighted average realised gas
price for the Group was $4.6/mcf, 12% lower than in H1 2023 of
$5.2/mcf leading to an 8% year-on-year decline in revenue. Gas
prices in Italy were subdued at the beginning of 2024, leading to
an average realised PSV price of $10.0/mcf (H1 2023: $16.7/mcf),
resulting in a 7% decline in revenue year-on-year. Total gas sales
increased by 25% to $504 million (H1 2023: $403 million), driven by
higher sales volumes.
Total liquid, crude, and petroleum
product sales reached $361 million for the period (H1 2023: $182
million) and a realised weighted average liquid price of $74.8/boe
(H1 2023: $65.1/boe). The higher liquids prices realised in H1 2024
contributed to a 15% increase in total revenue compared to the
prior period.
Adjusted EBITDAX for the period
was $568 million (H1 2023: $345 million). The overall 65% increase
was primarily driven by higher revenue, combined with a 17%
reduction in cash production costs per boe, half of which was
attributed to continuing operations.
Continuing operations
Working interest production from
continuing operations averaged 106 kboed, with the Karish and
Karish North fields contributing 98% of total output. Increased
production in Israel compared to the previous year, led to a 47%
increase in production output during H1 2024. The production mix
was at 85% gas and 15% liquids (H1 2023: 89% gas and 11% liquids).
Notably, production in Greece and the UK each grew by 31% compared
to H1 2023.
Revenue from continuing operations
rose to $643 million, a 71% increase compared to the previous
period (H1 2023: $376 million). This growth was primarily driven by
sales from Israel, which accounted for 94% of revenue from
continuing operations (H1 2023: 93%).
Gas sales from continuing
operations increased by 45% to $389 million (H1 2023: $268
million), due to higher sales volumes.
Liquid, crude, and petroleum
product sales reached $252 million (H1 2023: $106 million), and a
realised weighted average liquid price of $79.8/boe (H1 2023:
$71.0/boe). The higher liquids prices realised in H1 2024
contributed to a 10% increase in total revenue compared to the
prior period. During H1 2024, the average Brent oil price was
$83.5/bbl (H1 2023: $79.6/bbl).
Adjusted EBITDAX for the period
was $436 million (H1 2023: $230 million). The overall 90% increase
primarily driven by higher revenue, combined with a 9% reduction in
cash production costs per boe, half of which was attributed to
continuing operations.
Underlying cash production costs
Group
Total cash production costs for
the period were $271 million (H1 2023: $231 million) with 61%
attributed to production in Israel. Cash production costs for the
rest of the Group, excluding Israel, amounted to $107 million (H1
2023: $123 million). Unit costs for the period were $10/boe (H1
2023: $12/boe), primarily reflecting the impact of increased
production on a largely fixed cost base. As detailed in note 5 of
the financial statements, royalties-payable in Italy and Israel-are
a significant component of production costs. Excluding royalties,
production costs would be $155 million (H1 2023: $158 million) with
a representative unit cost of $6/boe (H1 2023: $8/boe).
Continuing operations
Cash production costs for the
period were $189 million (H1 2023: $139 million), with 87%
attributed to production in Israel. Unit costs for the period were
$10/boe (H1 2023: $11/boe), decreased by 9% from the previous
period. As detailed in note 5 of the financial statements,
royalties-payable in Israel-are a significant component of
production costs. Excluding royalties, production costs would be
$83 million (H1 2023: $76 million), with a representative unit cost
of $4/boe (H1 2023: $6/boe).
Depreciation
Group
Depreciation charges on production
and development assets rose to $184 million (H1 2023: $116
million). The growth was driven by increased production in Israel
and Egypt. In Egypt, depreciation charges increased by 129% to $46
million (H1 2023: $20 million), while Israel's charges increased by
55% to $124 million (H1 2023: $80 million). On a per barrel of oil
equivalent basis, this represented a 15% increase, rising to $7/boe
(H1 2023: $6/boe).
Continuing operations
Depreciation charges on production
and development assets rose to $132 million (H1 2023: $84 million)
primarily due to the 55% increase in Israel's charges to $124
million (H1 2023: $80 million).
Exploration and evaluation expenditure and new
ventures
Group
During the period, the Group
expensed $79 million (H1 2023: $2 million) for exploration and new
venture evaluation activities. Total impairment costs of $76
million were recognised during the period for projects that will
not progress to development. In 2024, the Orion X1 exploration well
in Egypt reached the target reservoir but indicated no commercial
hydrocarbons, resulting in a full impairment of the related
exploration asset valued at $61 million. Additionally, the
exploration license for Ioannina expired on 2 April 2024, leading
to a full impairment of the exploration asset valued at $15
million.
Continuing operations
During the period, $16 million (H1
2023: $1 million) were expensed for exploration and new venture
evaluation activities. Impairment costs of $15 million were
recognised during the period for Ioannina license which expired on
2 April 2024, leading to a full impairment of the exploration
asset.
Other income and expenses
Group
Other expenses increased to $7
million (H1 2023: $2 million). The $7 million in other expenses
primarily consists of $4 million in transaction costs related to
ECL Group disposal and $1 million expected credit loss provision on
trade receivables within the disposal group. Other income totalled
$2 million (H1 2023: $7 million), mainly due to the reversal of
prior period provisions, reassessed in the current year based on
updated facts and circumstances.
Continuing operations
Other expenses from continuing
operations increased to $4 million (H1 2023: $1 million). The $4
million in other expenses primarily consists of the $4 million in
transaction costs related to ECL Group disposal. Other income from
continuing operations totalled $1 million, unchanged from the prior
period (H1 2023: $1 million).
Finance income / costs
Group
Total finance costs in H1 2024
amounted to $138 million (H1 2023: $114 million). Total financing
costs before capitalisation were $143 million. The finance
costs included $100 million in interest expense on Senior Secured
notes, $8 million on debt facilities, $1 million in interest
expense related to long-term payables, $30 million from the
unwinding of discounts on contingent consideration, long-term
payables, and decommissioning provisions, and $4 million in
commissions for guarantees and other bank charges. Net finance
costs also reflect foreign exchange gains of $11 million and
finance income of $5 million, which includes interest income from
time deposits.
Continuing operations
Total finance costs in H1 2024 for
continuing operations amounted to $122 million (H1 2023: $103
million). Total financing costs before capitalisation were $127
million. The finance costs included $100 million in interest
expense on Senior Secured notes, $8 million on debt facilities, $1
million in interest expense related to long-term payables, $14
million from the unwinding of discounts on contingent
consideration, long-term payables, and decommissioning provisions,
and $4 million in commissions for guarantees and other bank
charges. Net finance costs also reflect finance income of $5
million, which includes interest income from time
deposits.
Taxation
Group
The Group had a tax expense of $86
million in H1 2024 (H1 2023: $65 million), consisting of a current
tax expense of $52 million and a deferred tax expense of $34
million, resulting in an effective tax rate of 49% (up from 48% in
H1 2023). The increase in tax expense compared to the prior period
is primarily due to higher taxable profits and changes in deferred
tax, largely driven by the utilisation of tax losses in Israel and
Italy.
Taxation charges in H1 2024 also
included $19 million (H1 2023: $26 million) related to non-cash
taxes deducted at source in Egypt and $12 million deferred tax
expense related to changes in the decommissioning provision in
Italy.
Continuing operations
Tax charges for continuing
operations totalled $46 million (H1 2023: $20 million), including
$30 million in corporation tax charges and $16 million in deferred
tax charges.
Profit after tax
Group
Profit after tax was $89 million
(H1 2023: $70 million). The increase in profit compared to the
prior period is primarily due to higher taxable profits, despite an
increased tax expense (H1 2024: $86 million versus H1 2023: $65
million). Profit before tax rose by 30% to $175 million (H1 2023:
$135 million).
Continuing operations
Profit after tax from continuing
operations was $116 million (H1 2023: $27 million). The increase in
profit compared to the prior period is primarily due to higher
taxable profits, despite an increased tax expense (H1 2024: $46
million versus H1 2023: $20 million). Profit before tax rose by
245% to $162 million (H1 2023: $47 million).
Earnings per share
Group
In H1 2024, earnings per share
were $0.48 (H1 2023: $0.39), with diluted earnings per share
remaining the same.
Continuing operations
Earnings per share from continuing
operations were $0.63 (H1 2023: $0.17). The diluted earnings per
share for continuing operations were also $0.63 (H1 2023: $0.16),
reflecting mainly the impact of convertible loan notes in H1
2023.
Operating cash flow
Group
In H1 2024, the Group had a net
cash inflow from operations of $527 million (H1 2023: $233
million). The significant increase in operating cash flow compared
to the prior period was primarily driven by the significant growth
in revenues from Israel.
Continuing operations
In H1 2024, Energean recorded a
net cash inflow from operations of $447 million (H1 2023: $141
million).
Capital Expenditures
Group
During the period, the Group
incurred capital expenditures of $393 million (H1 2023: $292
million). The expenditures were primarily focused on development
activities, including $50 million for the Karish Main Field, Second
Oil Train, and the riser, as well as the Karish North Field in
Israel, and $105 million for the Cassiopea field in Italy.
Exploration and appraisal expenditures were mainly directed towards
the Katlan field in Israel ($130 million) and the North East Hap'y
and Location B developments in Egypt ($49 million). Additionally,
in April 2024, the Group invested $13 million to acquire licenses
for the Anchois gas development in Morocco.
Continuing operations
During the period, capital
expenditures of $211 million related to continuing operations (H1
2023: $151 million) were incurred. The expenditures were primarily
focused on development and exploration activities in Israel as
discussed above in addition to investment to acquire licenses in
Morocco.
Decommissioning provision
A total change in the
decommissioning provision of less than $1 million (H1 2023: $22
million) was expensed during the period. An impairment reversal of
$3 million related to discontinued operations, resulting from a
decrease in the decommissioning provision estimate in Italy due to
increased discount rates, was partially offset by an additional
impairment charge of $3 million in the UK (continuing operations).
In H1 2024, the Group spent $16 million on decommissioning
activities, including $5 million on the Tors and Wenlock
decommissioning related to continuing operations, and $11 million
in Italy related to discontinued operations. (H1 2023: $4
million).
Net Debt
As of 30 June 2024, net debt
totalled $2,902 million (FY23: $2,849 million), comprising $2,625
million in Israeli senior secured notes, $450 million in corporate
senior secured notes, and $105 million from the Greek Black Sea
Trade Development Bank loan, offset by deferred amortized fees and
cash, bank deposits, and restricted cash balances of $345 million
(including $86 million of restricted cash). In the debt capital
markets, Energean is only exposed to floating interest rates for
the Greek loan and Revolving credit facility, while the Senior
Secured Notes at both Energean Plc and Energean Israel carry fixed
interest rates.
Shareholder Distributions
In line with the Group's dividend
policy, Energean returned US$0.60 per share to shareholders in H1
2024, totalling $110 million, representing two-quarters of dividend
payments. In H1 2023, Energean returned US$0.60 per
share.
Non-IFRS measures
The Group uses certain measures of
performance that are not specifically defined under IFRS or other
generally accepted accounting principles. These non-IFRS measures
include adjusted EBITDAX, underlying cash cost of production and
G&A, capital expenditure, net debt and leveraging.
Adjusted EBITDAX
Adjusted EBITDAX is a non-IFRS
measure used by the Group to measure business performance. It is
calculated as profit or loss for the period, adjusted for
discontinued operations, taxation, depreciation and amortisation,
share-based payment charge, impairment of property, plant and
equipment, other income and expenses, net finance costs and
exploration costs. The Group presents adjusted EBITDAX as it is
used in assessing the Group's growth and operational efficiencies
because it illustrates the underlying performance of the Group's
business by excluding items not considered by management to reflect
the underlying operations of the Group.
|
|
H1 2024
Continuing
operations
|
H1 2023
Continuing
operations
|
|
|
$m
|
$m
|
|
Adjusted EBITDAX
|
436
|
230
|
|
Reconciliation to profit for
the period:
|
|
|
|
Depreciation and
amortisation
|
(132)
|
(84)
|
|
Share-based payment
charge
|
(4)
|
(3)
|
|
Exploration and evaluation
expense
|
(16)
|
(1)
|
|
Change in decommissioning
provision
|
(3)
|
7
|
|
Expected credit loss
|
-
|
(1)
|
|
Other (expenses)/income
|
(2)
|
2
|
|
Finance income
|
5
|
3
|
|
Finance cost
|
(122)
|
(103)
|
|
Net foreign exchange
loss
|
-
|
(3)
|
|
Taxation expense
|
(46)
|
(20)
|
|
Profit for the period
|
116
|
27
|
While adjusted EBITDAX excludes
the financial results of discontinued operations by definition, the
Group has chosen to present equivalent non-IFRS financial metrics
for the entire Energean Group, including discontinued operations,
for comparison purposes.
|
|
H1 2024
Energean
Group
|
H1 2023
Energean
Group
|
|
|
$m
|
$m
|
|
Adjusted EBITDAX
|
568
|
345
|
|
Reconciliation to profit for
the period:
|
|
|
|
Depreciation and
amortisation
|
(184)
|
(116)
|
|
Share-based payment
charge
|
(4)
|
(3)
|
|
Exploration and evaluation
expense
|
(79)
|
(2)
|
|
Change in decommissioning
provision
|
-
|
22
|
|
Expected credit loss
|
(1)
|
(1)
|
|
Other (expenses)/income
|
(3)
|
6
|
|
Finance income
|
5
|
7
|
|
Finance cost
|
(138)
|
(114)
|
|
Net foreign exchange
loss
|
11
|
(9)
|
|
Taxation income /
(expense)
|
(86)
|
(65)
|
|
Profit for the period
|
89
|
70
|
Cash Cost of Production
Cash Cost of Production is a
non-IFRS measure that is used by the Group as a useful indicator of
the Group's underlying cash costs to produce hydrocarbons. The
Group uses the measure to compare operational performance
period-to-period, to monitor cost and assess operational
efficiency. Cash cost of production is calculated as cost of sales,
adjusted for depreciation and hydrocarbon inventory
movements.
|
|
H1 2024
Energean
Group
|
H1 2023
Energean
Group
|
H1 2024
Continuing
operations
|
H1 2023
Continuing
operations
|
|
|
$m
|
$m
|
$m
|
$m
|
|
Cost of sales
|
461
|
338
|
327
|
221
|
|
Adjusted
for:
|
|
|
|
|
|
Depreciation
|
(181)
|
(113)
|
(131)
|
(83)
|
|
Change in inventory
|
(9)
|
6
|
(7)
|
1
|
|
Cost of production
|
271
|
231
|
189
|
139
|
|
Total production for the period
(MMboe)
|
26,650
|
19,173
|
19,364
|
13,050
|
|
Cost of production per boe ($/boe)
|
10.2
|
12.0
|
9.8
|
10.6
|
Cash General & Administrative Expense
(G&A)
Cash G&A excludes certain
non-cash accounting items from the Group's reported G&A. Cash
G&A is calculated as follows: administrative and distribution
expenses, excluding depletion and amortisation of assets and
share-based payment charge that are included in G&A.
|
|
H1 2024 Energean
Group
|
H1 2023
Energean
Group
|
H1 2024
Continuing
operations
|
H1 2023
Continuing
operations
|
|
|
$m
|
$m
|
$m
|
$m
|
|
Administrative expenses
|
26
|
23
|
15
|
12
|
|
Less:
|
|
|
|
|
|
Depreciation
|
(3)
|
(3)
|
(1)
|
(1)
|
|
Share-based payment charge
included in G&A
|
(4)
|
(3)
|
(3)
|
(2)
|
|
Cash G&A
|
19
|
18
|
10
|
9
|
The Group's total cash G&A
expenses for H1 2024 amounted to $19 million, with $10 million
attributed to continuing operations. This reflects a 6% overall
increase from the previous period, and a 11% increase specifically
for continuing operations. The rise in costs is primarily driven by
an increase in staff expenses in Israel due to ram-up of
operations.
Capital Expenditure
Capital expenditure is a useful
indicator of the Group's organic expenditure on oil and gas assets
and exploration and appraisal assets incurred during a period.
Capital expenditure is defined as additions to property, plant and
equipment and intangible exploration and evaluation assets less
decommissioning asset additions, right-of-use asset additions,
capitalised share-based payment charge and capitalised borrowing
costs:
|
|
H1 2024
Energean
Group
|
H1 2023
Energean
Group
|
H1 2024
Continuing
operations
|
H1 2023
Continuing
operations
|
|
|
$m
|
$m
|
$m
|
$m
|
|
Additions to property, plant and
equipment
|
172
|
274
|
59
|
147
|
|
Additions to intangible
exploration and evaluation assets
|
193
|
19
|
142
|
16
|
|
Less:
|
|
|
|
|
|
Capitalised borrowing
costs
|
5
|
4
|
5
|
4
|
|
Leased assets additions and
modifications
|
1
|
41
|
-
|
13
|
|
Lease payments related to capital
activities
|
(10)
|
(8)
|
(5)
|
(2)
|
|
Change in decommissioning
provision
|
(25)
|
(35)
|
(9)
|
-
|
|
Total capital expenditures
|
393
|
292
|
211
|
151
|
|
Movement in working
capital
|
(51)
|
(8)
|
16
|
69
|
|
Cash capital expenditures per the cash flow
statement
|
342
|
284
|
227
|
220
|
Net Debt
Net debt is defined as the Group's
total borrowings less cash and cash equivalents. Management
believes that net debt serves as a valuable indicator of the
Group's indebtedness, financial flexibility, and capital structure
because it reflects the level of borrowings after accounting for
any cash and cash equivalents that could be utilised to reduce
borrowings.
|
Net debt reconciliation
|
H1 2024
Energean
Group
|
FY 2023
Energean
Group
|
|
|
$m
|
$m
|
|
Current borrowings
|
105
|
80
|
|
Non-current borrowings
|
3,142
|
3,141
|
|
Total borrowings
|
3,247
|
3,221
|
|
Less: Cash and cash
equivalents
|
(259)
|
(347)
|
|
Less: Restricted cash held
for loan repayment
|
(86)
|
(25)
|
|
Net Debt[17]
|
2,902
|
2,849
|
|
Net Debt Excluding Israel4
|
604
|
569
|
Going Concern
The Directors assessed the Group's
ability to continue as a going concern over a going concern
assessment period to 31 December 2025. As a result of this
assessment, the Directors are satisfied that the Group has
sufficient financial resources to continue in operation for the
foreseeable future and for this reason they continue to adopt the
going concern basis in preparing the condensed consolidated interim
financial statements. Detail of the Group's going concern
assessment for the period can be found within note 2.2 of the
condensed consolidated interim financial statements.
Subsequent Events
In July 2024, management made a
final investment decision for the Katlan development project in
Israel. The carrying value of the exploration asset at 30 June 2024
was $207 million. The Katlan area will be developed in a phased
approach through a subsea tieback to the existing Energean Power
FPSO, which currently serves the Karish and Karish North fields.
The first gas production is expected in the first half of
2027.
In August 2024, first gas
production was achieved at the Cassiopea field, located offshore in
Italy.
In August 2024, the prospective
buyer of the ECL Group obtained unconditional clearance from the
Italian Competition Authority followed by approval of the Italian
Presidency of the Council of Ministers in respect of the Italian
Golden Power Law in September 2024.
Principal risks at half-year 2024 and key developments since
the 2023 Annual Report
Effective risk management is
fundamental to achieving Energean's strategic objectives and
protecting its personnel, assets, shareholder value and reputation.
The Board has overall responsibility for determining the nature and
extent of the risks it is willing to take in achieving the
strategic objectives of the Group and ensuring that such risks are
managed effectively.
Key developments in relation to
Energean's risks
On 19 June 2024, the Company
entered into a sale and purchase agreement with CIEP Spin BidCo
Limited (the "Buyer"), an entity controlled by Carlyle, regarding
the strategic sale of the Company's Egyptian, Italian and Croatian
portfolio. On the basis that the Transaction amounts to a
significant transaction, its implementation is expected to have an
impact on Energean, either as a result of the Transaction, or
related to the Transaction in the sense that material risk factors
will be affected by the Transaction. These material risks are
described in section 3.1 as announced on 29 August 2024 pursuant to
the UK Listing Rule 7.3. As the Transaction is subject to
conditions being satisfied by a longstop date of 20 March 2025 (or
such other date as may be agreed by Energean and Carlyle), there
can be no certainty that the Transaction will complete. As a
result, other than the risk of the Transaction not completing, the
Board has made no changes to the Group's principal risks as a
result of the Transaction at this time.
Looking to the second half of
2024, Energean highlights the following developments as important
in relation to its principal risks. Since 7 October 2023 and the
ongoing conflict in Israel, the magnitude of regional geopolitical
risk remains elevated. Growing concerns of escalations in the
Middle East have intensified the security risk in the region, as
essential infrastructure systems (such as the Energean Power FPSO
offshore Israel) may be targets for missile fire and sabotage
operations. While the Karish field has continued to produce in line
with guidance and with no disruption to its production since the
start of the conflict, any event that impacts production from this
field could have a material adverse impact on the business, results
of operations, cash flows, financial condition and prospects of the
Group. In the first half of 2024, Energean has ensured that all
measures are in place to continue business operations, maintain the
mobility of our people and make certain that the security of
information is unaffected.
Despite these challenges, Energean
has achieved a number of positive milestones during the first half
of 2024, including: (i) the start-up of Karish North and the second
gas export riser installation, which enables Energean to utilise
the FPSO's maximum capacity; (ii) FID on Katlan with first gas
planned for H1 2027; (iii) good progress on the Cassiopea gas
development, with initial test production from one of the four
subsea wells started in August 2024 and; (iv) success at the Abu
Qir infill well drilling campaign in Egypt, with first gas achieved
in August 2024.
Principal risks and
uncertainties
Energean has closely monitored its
risks and uncertainties throughout the year and has identified one
new principal risk, which is detailed below. All other principal
risks that the Group will be exposed to in the second half of 2024,
alongside the trends and developments as highlighted above, are the
same as those described in the principal risks section in
Energean's 2023 Annual Report (pages 85-96) and are summarised
below.
Overview of key risks and principal uncertainties since 31
December 2023
1.
Strategic risk: Regional and domestic geopolitical and security
risks in Israel
2.
Operational risk: Delayed delivery of further growth
projects
3.
Strategic risk: Lack of new commercial discoveries and reserves
replacement
4.
Operational risk: Production uptime reliability and operating
efficiency (including reliability of the production systems, i.e.
FPSO and subsea)
5.
Financial risk: Maintaining liquidity and solvency
6.
Macro-economic risk (including inflation, interest rates and
commodity price fluctuations)
7.
Organisational & HR risk: Failure to attract, retain and
develop staff
8.
Deterioration or misalignment of JV relationships risk
9.
Recoverability of production cost and receivables in Egypt
risk
10. Significant IT and OT
cyber risk, including a security breach of internal systems or a
cyber attack
11. Ethics and Business
Conduct. Fraud, Bribery and corruption risk
12. Health Safety and
Environment (HSE) risk
13. Failure to manage the
risk of climate change and to adapt to the energy
transition
14. Climate Change risk:
Physical risks
15. Strategic risk: Geopolitical conflicts outside of Israel in
areas of operation affecting production and distribution (including
fiscal uncertainties)
16. New:
Risk of the Transaction not proceeding
The Transaction is conditional
upon the satisfaction or, where applicable, waiver of the following
conditions: (1) regulatory approvals in Italy and Egypt; (2)
anti-trust approvals in Italy, Egypt and COMESA; and (3) transfer
of the North Sea Assets from Energean Capital Limited to a member
of the Group. Progress is ongoing to satisfy or, where permitted,
waiver these conditions by the long stop date of 20 March 2025.
Although Energean is optimistic about achieving these conditions by
the long stop date, the Group recognises that there is a residual
risk that the conditions may not be met. Failure to satisfy or
obtain waiver of any condition may result in the Transaction not
being completed. The Sale and Purchase Agreement may also be
terminated for any breach of certain fundamental warranties and the
occurrence of certain material adverse events affecting the Target
Group following signing, subject to customary rights to
remedy.
If the Transaction is not
completed, or the Sale and Purchase Agreement is terminated, the
Group will not receive any of the consideration payable in respect
of it. This would prejudice its ability to create shareholder value
by being unable to repay the 2027 PLC Notes in full prior to their
scheduled maturity and facilitate a special dividend of up to $200
million.
If Completion does not occur, or
the Sale and Purchase Agreement is terminated, the Company will
also have incurred significant costs and management time in
connection with the Transaction, which it will not be able to
recover (other than through the Non-Completion Payment, to the
extent applicable). It will also not realise the anticipated
benefits of the Transaction and its ability to implement its stated
strategy may be prejudiced.
Statement of Directors'
responsibilities
The Directors confirm that, to the
best of their knowledge:
· The
condensed consolidated interim financial statements have been
prepared in accordance with IAS 34 'Interim Financial Reporting' as
adopted in the United Kingdom.
· The
interim management report includes a fair review of the information
required by the Disclosure Transparency Rules (DTR) 4.2.7R, namely
an indication of important events during the six months ended 30
June 2024 and a description of the principal risks and
uncertainties for the remaining six months of the financial
year.
· The
interim management report includes a true and fair view of the
information required by the DTR 4.2.8R, including disclosure of
related party transactions and any changes therein during the
reporting period.
|
Mathios Rigas
Chief Executive Officer
|
Panos Benos
Chief Financial Officer
|
|
10 September 2024
|
10 September 2024
|
Forward looking
statements
This announcement contains
statements that are, or are deemed to be, forward-looking
statements. In some instances, forward-looking statements can be
identified by the use of terms such as "projects", "forecasts", "on
track", "anticipates", "expects", "believes", "intends", "may",
"will", or "should" or, in each case, their negative or other
variations or comparable terminology. Forward-looking statements
are subject to a number of known and unknown risks and
uncertainties that may cause actual results and events to differ
materially from those expressed in or implied by such
forward-looking statements, including, but not limited to: general
economic and business conditions; demand for the Company's products
and services; competitive factors in the industries in which the
Company operates; exchange rate fluctuations; legislative, fiscal
and regulatory developments; political risks; terrorism, acts of
war and pandemics; changes in law and legal interpretations; and
the impact of technological change. Forward-looking statements
speak only as of the date of such statements and, except as
required by applicable law, the Company undertakes no obligation to
update or revise publicly any forward-looking statements, whether
as a result of new information, future events or otherwise. The
information contained in this announcement is subject to change
without notice.
Numbers outside of the unaudited
consolidated interim financial statements, where applicable, are
rounded to the nearest million US$ and therefore may differ
in the order of a million US$.
INDEPENDENT REVIEW REPORT TO ENERGEAN PLC
Conclusion
We have been engaged by the
Company to review the condensed set of financial statements in the
half-yearly financial report for the six months ended 30 June 2024
which comprises the interim consolidated income statement, the
interim consolidated statement of comprehensive income, the interim
consolidated statement of financial position, interim consolidated
statement of changes in equity, the interim consolidated statement
of cash flows and the related explanatory notes 1 to 29. We have
read the other information contained in the half-yearly financial
report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
Based on our review, nothing has
come to our attention that causes us to believe that the condensed
set of financial statements in the half-yearly financial report for
the six months ended 30 June 2024 is not prepared, in all material
respects, in accordance with UK adopted International Accounting
Standard 34 and the Disclosure Guidance and Transparency Rules of
the United Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in
accordance with International Standard on Review Engagements 2410
(UK) "Review of Interim Financial Information Performed by the
Independent Auditor of the Entity" (ISRE) issued by the Financial
Reporting Council. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
As disclosed in note 2, the annual
financial statements of the group are prepared in accordance with
UK adopted international accounting standards. The condensed set of
financial statements included in this half-yearly financial report
has been prepared in accordance with UK adopted International
Accounting Standard 34, "Interim Financial Reporting".
Conclusions Relating to Going Concern
Based on our review procedures,
which are less extensive than those performed in an audit as
described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or
that management have identified material uncertainties relating to
going concern that are not appropriately disclosed.
This conclusion is based on the
review procedures performed in accordance with this ISRE, however
future events or conditions may cause the entity to cease to
continue as a going concern.
Responsibilities of the directors
The directors are responsible for
preparing the half-yearly financial report in accordance with the
Disclosure Guidance and Transparency Rules of the United Kingdom's
Financial Conduct Authority.
In preparing the half-yearly
financial report, the directors are responsible for assessing the
company's ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to
liquidate the company or to cease operations, or have no realistic
alternative but to do so.
Auditor's Responsibilities for the review of the financial
information
In reviewing the half-yearly
report, we are responsible for expressing to the Company a
conclusion on the condensed set of financial statements in the
half-yearly financial report. Our conclusion, including our
Conclusions Relating to Going Concern, are based on procedures that
are less extensive than audit procedures, as described in the Basis
for Conclusion paragraph of this report.
Use of our report
This report is made solely to the
company in accordance with guidance contained in International
Standard on Review Engagements 2410 (UK) "Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity" issued by the Financial Reporting Council. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the company, for our work, for this report, or
for the conclusions we have formed.
Ernst & Young LLP
London
10 September 2024
|
Interim Consolidated Income Statement
Six months ended 30 June 2024
|
|
|
|
30 June 2024
(Unaudited)
|
|
30 June 2023
(Unaudited/Restated *)
|
|
|
|
|
$'000
|
|
$'000
|
|
|
|
Note
|
|
|
|
|
|
Continuing operations:
|
|
|
|
|
|
|
Revenue
|
4
|
642,413
|
|
375,891
|
|
|
Cost of Sales
|
5(a)
|
(326,572)
|
|
(220,730)
|
|
|
Gross profit
|
|
315,841
|
|
155,161
|
|
|
Administration expenses
|
5(b)
|
(15,848)
|
|
(12,259)
|
|
|
Change in decommissioning
provision
|
21
|
(2,638)
|
|
7,297
|
|
|
Exploration and evaluation
expenses
|
5(c)
|
(15,898)
|
|
(680)
|
|
|
Expected credit loss
|
5(d)
|
-
|
|
(871)
|
|
|
Other expenses
|
5(e)
|
(3,960)
|
|
(577)
|
|
|
Other income
|
5(f)
|
1,088
|
|
1,118
|
|
|
Operating profit
|
|
278,585
|
|
149,189
|
|
|
Finance Income
|
6
|
5,003
|
|
3,196
|
|
|
Finance Costs
|
6
|
(121,757)
|
|
(102,732)
|
|
|
Unrealised loss on
derivatives
|
7
|
(7)
|
|
-
|
|
|
Net foreign exchange
loss
|
6
|
(60)
|
|
(2,567)
|
|
|
Profit before tax from continuing
operations
|
|
161,764
|
|
47,086
|
|
|
Taxation expense
|
8
|
(45,895)
|
|
(19,762)
|
|
|
Profit for the period from continuing
operations
|
|
115,869
|
|
27,324
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
(Loss)/Profit for the period from
discontinued operations
|
24
|
(27,332)
|
|
42,434
|
|
|
Profit for the period
|
|
88,537
|
|
69,758
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
Owners of the parent
|
|
88,537
|
|
69,758
|
|
|
|
|
88,537
|
|
69,758
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per share
(cents per
share)
|
|
|
Basic
|
|
$0.48
|
|
$0.39
|
|
|
Diluted
|
|
$0.48
|
|
$0.39
|
|
|
Basic and diluted earnings per share for continuing
operations (cents per
share)
|
|
|
|
|
|
|
Basic
|
9
|
$0.63
|
|
$0.17
|
|
|
Diluted
|
9
|
$0.63
|
|
$0.16
|
|
|
|
|
|
|
|
|
| |
*Restated for discontinued
operations, refer to Note 24 for further detail.
|
Interim Consolidated Statement of Comprehensive
Income
Six months ended 30 June 2024
|
|
|
|
|
30 June 2024
(Unaudited)
|
|
30 June 2023
(Unaudited/Restated *)
|
|
|
|
|
$'000
|
|
$'000
|
|
|
Profit / (Loss) for the period
from:
|
|
|
|
|
|
|
Continuing operations
|
|
115,869
|
|
27,324
|
|
|
Discontinued operations
|
|
(27,332)
|
|
42,434
|
|
|
Profit for the period
|
|
88,537
|
|
69,758
|
|
|
Other comprehensive income:
|
|
|
|
|
|
|
Items that may be reclassified
subsequently to profit or loss
|
|
|
|
|
|
|
Cash Flow hedges:
|
|
|
|
|
|
|
Loss arising in the
period
|
|
(407)
|
|
-
|
|
|
Income tax relating to items that
may be reclassified to profit or loss
|
|
94
|
|
-
|
|
|
Exchange difference on the
translation of foreign operations, net of tax
|
|
(14,701)
|
|
489
|
|
|
Items that will not be
reclassified subsequently to profit or loss
|
|
|
|
|
|
|
Remeasurement of defined benefit
plan
|
|
13
|
|
(107)
|
|
|
Income taxes on items that will
not be reclassified to profit and loss
|
|
(3)
|
|
26
|
|
|
Other comprehensive (loss) / profit after
tax
|
|
(15,004)
|
|
408
|
|
|
|
|
|
|
|
|
|
Total comprehensive profit for the period
|
|
73,533
|
|
70,166
|
|
|
|
|
|
|
|
|
|
Total comprehensive profit attributable to:
|
|
|
|
|
|
|
Owners of the parent
|
|
73,533
|
|
70,166
|
|
|
|
|
73,533
|
|
70,166
|
|
*Restated for discontinued
operations, refer to Note 24 for further detail.
1. Corporate Information
Energean plc (the 'Company') was incorporated
in England & Wales on 8 May 2017 as a public company limited by
shares, under the Companies Act 2006. Its registered office is at
44 Baker Street, London W1U 7AL, United Kingdom. The Company and
all subsidiaries controlled by the Company, are together referred
to as 'the Group'.
The Group has been established with the
objective of exploration, production and commercialisation of crude
oil, hydrocarbon liquids and natural gas in Greece, Israel, Italy,
North Africa, United Kingdom ('UK') and the wider Eastern
Mediterranean.
The Group's subsidiaries and core assets, as of
30 June 2024, are presented in notes 28 and 29.
2. Basis of preparation
2.1 Basis of preparation
The unaudited condensed consolidated interim
financial statements for the six months ended 30 June 2024 included
in this interim report have been prepared in accordance with
UK-adopted International Accounting Standard 34 'Interim Financial
Reporting' ('IAS 34'), and, unless otherwise disclosed, have been
prepared on the basis of the same accounting policies and methods
of computation as applied in the Group's Annual Report for the year
ended 31 December 2023 subject to the following:
A.
Accounting for non-current assets held for sale and discontinued
operations
On 20 June 2024, the Group publicly announced
its Board of Directors' decision to sell its portfolio in Egypt,
Italy, and Croatia, collectively referred to as 'Energean Capital
Limited Group' (ECL), which is fully owned and controlled by the
Group. The sale of ECL is expected to be completed by the end of
2024. The Group has assessed whether ECL meets the definition of
being held for sale and discontinued operations.
The Group classifies an operation as
discontinued when it has disposed of or intends to dispose of a
business component that represents a separate major line of
business or geographical area of operations. Non-current assets and
disposal groups classified as held for sale are measured at the
lower of their carrying amount and fair value less costs to sell.
Costs to sell are the incremental costs directly attributable to
the disposal of an asset disposal group), excluding finance costs
and income tax expense.
The criteria for held for sale classification
is regarded as met only when the sale is highly probable, and the
asset or disposal group is available for immediate sale in its
present condition. Actions required to complete the sale should
indicate that it is unlikely that significant changes to the sale
will be made or that the decision to sell will be withdrawn.
Management must be committed to the plan to sell the asset and the
sale expected to be completed within one year from the date of the
classification. Property, plant and equipment and intangible assets
are not depreciated or amortised once classified as held for
sale.
Assets and liabilities classified as held for
sale are presented separately as current items in the statement of
financial position. The comparative balance sheet and the related
notes to the financial statements have not been restated to reflect
this presentation, resulting in significant fluctuations between
the two reporting periods. The post-tax profit or loss of the
discontinued operations is shown as a single line on the face of
the consolidated statement of profit or loss, separate from the
continuing operating results of the Group. When an operation is
classified as a discontinued operation, the comparative
consolidated statement of profit or loss is represented as if the
operation had been discontinued from the start of the comparative
year. Expenses are presented as discontinued if they will cease to
be incurred on disposal of the discontinued operation. Transactions
between continuing and discontinued operations have been
consistently eliminated as intragroup balances without any
adjustments for both current and comparative reporting
periods.
While the completion is contingent upon
securing regulatory approvals in Italy and Egypt and antitrust
approvals in Italy, Egypt and COMESA, the Group is confident that
the transactions will likely be finalised within 12 months of the
announcement date. The disposal group is ready for immediate sale
in its current state, with the exception of the transfer of legal
ownership of certain assets outside the disposal group to other
parts of the Energean Group. This transfer is customary in
transactions of this nature.
Additional disclosures are provided in Note 24.
All other notes to the financial statements include amounts for
continuing operations, unless indicated otherwise.
B.
Exploration and evaluation expenditures: Farm-in
arrangements
Farm-in transactions typically occur during the
exploration or development phase and involve the transferor (the
farmor) giving up future economic benefits, such as reserves, in
exchange for a permanent reduction in future funding
obligations.
Under a carried interest arrangement, the
carried party transfers a portion of the risks and rewards of a
property in exchange for a funding commitment from the carrying
party. In contrast, a farm-in arrangement involves the farmor
transferring all risks and rewards of a proportion of a property in
exchange for the farmee's commitment to fund specific expenditures.
This effectively represents the complete disposal of a proportion
of the property and is similar to purchase/sale-type carried
interest arrangements.
In April 2024, the Group entered into a
partnership with Chariot Limited in Morocco to invest in the
Anchois gas development.
As the farmee, the Group recognises its
expenditure under this arrangement in the same way as directly
incurred expenditure. Since the carry of Chariot's costs is
conditional upon the successful commencement of production,
Energean accounts for 100% of the expenses related to appraisal and
other exploration activities concerning the two licences. These
costs are fully capitalised on the balance sheet until the start of
production.
Refer to Note 11 for further
details.
The unaudited condensed consolidated interim
financial statements have been prepared on a historical cost basis
and are presented in US Dollars, which is also the Company's
functional currency, rounded to the nearest thousand dollars
($'000) except as otherwise indicated. The US dollar is the
currency that mainly influences sales prices and revenue estimates,
and also highly affects the Group's operations. The functional
currencies of the Group's main subsidiaries are as follows: for
Energean Oil & Gas S.A, Energean Sicilia S.r.l. and Energean
Italy S.p.a. the functional currency is Euro; for Energean Group
Services Ltd., Energean E&P Holdings Ltd., Energean
International Limited, Energean Capital Ltd., Energean Egypt Ltd.,
and Energean Israel Ltd. the functional currency is US$; for
Energean UK Ltd. and Energean Exploration Ltd. is GBP.
The unaudited condensed consolidated interim
financial statements do not constitute statutory accounts of the
Group within the meaning of Section 435 of the Companies Act 2006
and do not include all the information and disclosures required in
the annual financial statements. These financial statements should
be read in conjunction with the Group's Annual Report for the year
ended 31 December 2023, which were prepared UK-adopted
International Accounting Standards ('UK-adopted IAS'). The
auditor's report on those financial statements was unqualified with
no reference to matters to which the auditor drew attention by way
of emphasis and no statement under s498(2) or s498(3) of the
Companies Act 2006.
2.2 Going concern
The Group carefully manages the risk of a
shortage of funds by closely monitoring its funding position and
its liquidity risk. The Going Concern assessment covers the period
up to 31 December 2025 'the forecast period'.
As of 30 June 2024, the Group's available
liquidity was approximately $511 million including $28 million of
cash related to the disposal group. In addition to $345 million of
cash and cash equivalents held by the Group at 30 June 2024, this
available liquidity figure includes: (i) c. $46 million available
under the $300 million Revolving Credit Facility ("RCF") signed by
the Group in September 2022 and as amended in May 2023 (with the
remainder being utilised to issue Letters of Credit for the Group's
operations) and (ii) c. $120 million under the $120 million
Revolving Credit Facility signed up by the Group in October
2023.
The going concern assessment is founded on a
cashflow forecast prepared by management, which is based on a
number of assumptions, most notably the Group's latest life of
field production forecasts, budgeted expenditure forecasts,
estimated of future commodity prices (based on recent published
forward curves) and available headroom under the Group's debt
facilities. The going concern assessment contains a "Base Case" and
a "Reasonable Worst Case" ("RWC") scenario. The base case scenario
assumes the completion of the disposal of ECL by the end of 2024
followed by the receipt of the cash consideration in January
2025.
The Base Case scenario assumes Brent at $80/bbl
in 2024 and 2025 and PSV (Italian gas price) at €30/MWH in 2024
assumed throughout the going concern assessment period, with prices
for gas sold assumed at contractually agreed prices for Egypt (in
2024) and Israel (in 2024-2025). Under the Base Case, sufficient
liquidity is maintained throughout the going concern
period.
The Group also routinely performs sensitivity
tests of its liquidity position to evaluate adverse impacts that
may result from changes to the macro-economic environment, such as
a reduction in commodity prices. These downsides are considered in
the RWC scenario. The Group is not materially exposed to floating
interest rate risk since the majority of its borrowings are fixed
rate. The group also looks at the impact of changes or deferral of
key projects and downside scenarios to budgeted production
forecasts in the RWC.
The two primary downside sensitivities
considered in the RWC are: (i) reduced commodity prices; (ii)
reduced production - these downsides are applied to assess the
robustness of the Group's liquidity position over the Assessment
Period. Within this scenario the Group also assumes the
non-completion of the disposal of ECL throughout the going concern
period. In a RWC downside case, there are appropriate and
timely mitigation strategies, within the Group's control, to manage
the risk of funding shortfalls and to ensure the Group's ability to
continue as a going concern. Mitigation strategies, within
management's control, modelled in the RWC include deferral of
capital expenditure on operated assets and/or management of
operating expenses to improve the liquidity. Under the RWC
scenario, after considering mitigation strategies, liquidity is
maintained throughout the going concern period.
Reverse stress testing was also performed to
determine what production shortfall could need to occur for
liquidity headroom to be eliminated. The conditions necessary for
liquidity headroom to be eliminated are judged to have a remote
possibility of occurring, given the diversified nature of the
Group's portfolio and the "natural hedge" provided by virtue of the
Group's fixed-price gas contracts in Israel. In the event a remote
downside scenario occurred, prudent mitigating strategies,
consistent with those described above, could also be executed in
the necessary timeframe to preserve liquidity. There is no material
impact of climate change within the Assessment Period and
therefore, it does not form part of the reverse stress testing
performed by management.
In forming its assessment of the Group's
ability to continue as a going concern, including its review of the
forecasted cashflow of the Group over the Forecast Period, the
Board has made judgements about:
• Reasonable sensitivities
appropriate for the current status of the business and the wider
macro environment; and
• the Group's ability to implement
the mitigating actions within the Group's control, in the event
these actions were required.
After careful consideration, the Directors are
satisfied that the Group has sufficient financial resources to
continue in operation for the foreseeable future, for the
Assessment Period from the date of approval of these unaudited
condensed consolidated interim financial statements on 10 September
2024 to 31 December 2025. For this reason, they continue to adopt
the going concern basis in preparing these condensed consolidated
interim financial statements.
2.3 New and amended accounting standards and
interpretations
The following amendments became effective as at
1 January 2024:
· Amendments to IAS 1 - Classification of Liabilities as
Current or Non-current and Non-current Liabilities with
Covenants;
· Amendments to IFRS 16 - Lease Liability in a Sale and
Leaseback;
· Amendments to IAS 7 and IFRS 7 - Disclosures: Supplier
Finance Arrangements.
The adoption of the above amendments to
UK-adopted IAS did not result in any material changes to the
Group's accounting policies and did not have any material impact on
the financial position or performance of the Group.
2.4 Approval of unaudited condensed consolidated interim
financial statements by Directors
These unaudited condensed consolidated interim
financial statements were approved by the Board of Directors on 10
September 2024.
3. Segmental
Reporting
The information reported to the Group's Chief
Executive Officer and Chief Financial Officer (together the Chief
Operating Decision Makers) for the purposes of resource allocation
and assessment of segment performance is focused on three
continuing operating segments: Europe (including Greece and UK),
Israel, and New Ventures. The Group's reportable segments under
IFRS 8 Operating Segments are Europe and Israel. Segments that do
not exceed the quantitative thresholds for reporting information
about operating segments have been included in
Other.
Discontinued operations consist of the Egypt
segment and Italy and Croatia operations previously included in the
Europe reportable segment, which are expected to be disposed of in
2024 (refer to Note 24 for further detail).
Information regarding the results of each
reportable segment is included below and prior periods are
represented to reflect discontinued operations to provide
comparability.
Segment revenues, results
and reconciliation to profit before tax
The following is an analysis of
the Group's revenue, results and reconciliation to profit/ (loss)
before tax by reportable segment:
|
Six months ended 30 June 2024 (unaudited)
|
Europe
|
Israel
|
Other &
inter-segment transactions
|
Continuing operations,
total
|
Discontinued
operations
|
Total
|
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
|
Revenue from gas sales
|
775
|
388,459
|
-
|
389,234
|
114,327
|
503,561
|
|
Revenue from hydrocarbon liquids
sales
|
145
|
213,719
|
-
|
213,864
|
21,726
|
235,590
|
|
Revenue from crude oil
sales
|
37,596
|
-
|
-
|
37,596
|
80,669
|
118,265
|
|
Revenue from LPG sales
|
227
|
-
|
-
|
227
|
7,241
|
7,468
|
|
Other
|
6,640
|
-
|
(5,148)
|
1,492
|
215
|
1,707
|
|
Total revenue
|
45,383
|
602,178
|
(5,148)
|
642,413
|
224,178
|
866,591
|
|
Adjusted
EBITDAX27
|
6,460
|
429,977
|
(319)
|
436,118
|
131,741
|
567,859
|
|
Reconciliation to profit before tax:
|
|
|
|
|
|
|
|
Depreciation and amortisation
expenses
|
(8,701)
|
(123,559)
|
245
|
(132,015)
|
(51,902)
|
(183,917)
|
|
Share-based payment
charge
|
(675)
|
(518)
|
(2,917)
|
(4,110)
|
-
|
(4,110)
|
|
Exploration and evaluation
expenses
|
(15,282)
|
-
|
(616)
|
(15,898)
|
(63,096)
|
(78,994)
|
|
Change in decommissioning
provision
|
(2,638)
|
-
|
-
|
(2,638)
|
3,023
|
385
|
|
Expected credit (loss)
|
-
|
-
|
-
|
-
|
(961)
|
(961)
|
|
Other expense
|
(66)
|
(4)
|
(3,890)
|
(3,960)
|
(1,525)
|
(5,485)
|
|
Other income
|
1,005
|
-
|
83
|
1,088
|
754
|
1,842
|
|
Finance income
|
853
|
4,485
|
(335)
|
5,003
|
117
|
5,120
|
|
Finance costs
|
(10,481)
|
(93,847)
|
(17,429)
|
(121,757)
|
(16,135)
|
(137,892)
|
|
Unrealised loss on
derivatives
|
-
|
(7)
|
-
|
(7)
|
-
|
(7)
|
|
Net foreign exchange
gain/(loss)
|
(149)
|
(290)
|
379
|
(60)
|
11,205
|
11,145
|
|
Profit/(loss) before income tax
|
(29,674)
|
216,237
|
(24,799)
|
161,764
|
13,221
|
174,985
|
|
Taxation expense
|
3,311
|
(48,981)
|
(225)
|
(45,895)
|
(40,553)
|
(86,448)
|
|
Profit/(loss) for the period
|
(26,363)
|
167,256
|
(25,024)
|
115,869
|
(27,332)
|
88,537
|
|
Six months ended 30 June
2023 (unaudited) (Restated*)
|
Europe
|
Israel
|
Other &
inter-segment transactions
|
Continuing operations,
total
|
Discontinued
operations
|
Total
|
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
|
Revenue from gas sales
|
1,105
|
266,471
|
-
|
267,576
|
135,653
|
403,229
|
|
Revenue from hydrocarbon liquids
sales
|
4
|
81,272
|
-
|
81,276
|
14,752
|
96,028
|
|
Revenue from crude oil
sales
|
24,889
|
-
|
-
|
24,889
|
53,483
|
78,372
|
|
Revenue from LPG sales
|
250
|
-
|
-
|
250
|
7,534
|
7,784
|
|
Other
|
5,403
|
-
|
(3,503)
|
1,900
|
329
|
2,229
|
|
Total revenue
|
31,651
|
347,743
|
(3,503)
|
375,891
|
211,751
|
587,642
|
|
Adjusted
EBITDAX26
|
(8,607)
|
235,303
|
2,868
|
229,564
|
115,289
|
344,853
|
|
Reconciliation to profit before tax:
|
|
|
|
|
|
|
|
Depreciation and amortisation
expenses
|
(4,415)
|
(80,049)
|
375
|
(84,089)
|
(31,864)
|
(115,953)
|
|
Share-based payment
charge
|
(152)
|
(312)
|
(2,109)
|
(2,573)
|
(368)
|
(2,941)
|
|
Exploration and evaluation
expenses
|
(279)
|
(50)
|
(351)
|
(680)
|
(1,468)
|
(2,148)
|
|
Change in decommissioning
provision
|
7,297
|
-
|
-
|
7,297
|
14,633
|
21,930
|
|
Expected credit (loss)
|
(871)
|
-
|
-
|
(871)
|
(409)
|
(1,280)
|
|
Other expense
|
(571)
|
-
|
(6)
|
(577)
|
(292)
|
(869)
|
|
Other income
|
938
|
2
|
178
|
1,118
|
6,069
|
7,187
|
|
Finance income
|
972
|
1,044
|
1,180
|
3,196
|
4,120
|
7,316
|
|
Finance costs
|
(12,341)
|
(67,569)
|
(22,822)
|
(102,732)
|
(10,975)
|
(113,707)
|
|
Net foreign exchange
gain/(loss)
|
2,117
|
(5,578)
|
894
|
(2,567)
|
(6,777)
|
(9,344)
|
|
Profit/(loss) before income tax
|
(15,912)
|
82,791
|
(19,793)
|
47,086
|
87,958
|
135,044
|
|
Taxation expense
|
(139)
|
(20,215)
|
592
|
(19,762)
|
(45,524)
|
(65,286)
|
|
Profit/(loss) for the period
|
(16,051)
|
62,576
|
(19,201)
|
27,324
|
42,434
|
69,758
|
*Restated for discontinued
operations, refer to Note 24 for further detail.
27Adjusted EBITDAX is a non-IFRS measure used by the Group to
measure business performance. It is calculated as profit or loss
for the period, adjusted for discontinued operations, taxation,
depreciation and amortisation, share-based payment charge,
impairment of property, plant and equipment, other income and
expenses (including the impact of derivative financial instruments
and foreign exchange), net finance costs and exploration and
evaluation expenses.
Segment financial
position
The following tables present assets and liabilities
information for the Group's operating segments as at 30 June 2024
and 31 December 2023, respectively:
|
Six months ended 30 June
2024 (unaudited)
|
Europe
|
Israel
|
Other & inter-segment
transactions
|
Continuing operations,
total
|
Discontinued
operations
|
Total
|
|
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
|
Oil & Gas
properties
|
247,687
|
3,042,772
|
(136)
|
3,290,323
|
-
|
3,290,323
|
|
Other fixed assets
|
7,204
|
11,650
|
16,497
|
35,351
|
-
|
35,351
|
|
Intangible assets
|
2,156
|
374,406
|
20,856
|
397,418
|
-
|
397,418
|
|
Trade and other
receivables
|
26,468
|
136,025
|
(12,608)
|
149,885
|
-
|
149,885
|
|
Deferred tax asset
|
87,121
|
-
|
-
|
87,121
|
-
|
87,121
|
|
Other assets
|
152,666
|
232,490
|
(34,895)
|
350,261
|
-
|
350,261
|
|
Assets held for sale
|
-
|
-
|
-
|
-
|
1,557,816
|
1,557,816
|
|
Total assets
|
523,302
|
3,797,343
|
(10,286)
|
4,310,359
|
1,557,816
|
5,868,175
|
|
Trade and other
payables
|
113,136
|
284,534
|
(55,192)
|
342,478
|
-
|
342,478
|
|
Borrowings
|
105,317
|
2,591,098
|
550,110
|
3,246,525
|
-
|
3,246,525
|
|
Decommissioning
provision
|
216,059
|
91,237
|
-
|
307,296
|
-
|
307,296
|
|
Current tax payable
|
-
|
29,702
|
-
|
29,702
|
-
|
29,702
|
|
Deferred tax liability
|
-
|
141,748
|
-
|
141,748
|
-
|
141,748
|
|
Other liabilities
|
60,340
|
100,816
|
(58,259)
|
102,897
|
-
|
102,897
|
|
Liabilities held for
sale
|
-
|
-
|
-
|
-
|
1,043,606
|
1,043,606
|
|
Total liabilities
|
494,852
|
3,239,135
|
436,659
|
4,170,646
|
1,043,606
|
5,214,252
|
|
Other segment information
|
|
|
|
|
|
|
|
Capital expenditure:
|
|
|
|
|
|
|
|
- Property, plant and
equipment
|
14,590
|
52,862
|
62
|
67,514
|
131,362
|
198,876
|
|
- Intangible, exploration
and evaluation assets
|
9
|
130,651
|
13,194
|
143,854
|
50,311
|
194,165
|
|
Year ended 31 December 2023
|
Europe
|
Israel
|
Egypt
|
Other & inter-segment
transactions
|
Total
|
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
|
Oil & Gas
properties
|
734,265
|
2,783,914
|
473,628
|
311,295
|
4,303,102
|
|
Other fixed assets
|
35,110
|
13,918
|
19,996
|
(801)
|
68,223
|
|
Intangible assets
|
20,303
|
243,965
|
46,846
|
14,275
|
325,389
|
|
Trade and other
receivables
|
88,729
|
130,135
|
154,095
|
(19,702)
|
353,257
|
|
Deferred tax asset
|
217,504
|
-
|
-
|
-
|
217,504
|
|
Other assets
|
849,649
|
573,855
|
47,601
|
(954,915)
|
516,190
|
|
Total assets
|
1,945,560
|
3,745,787
|
742,166
|
(649,848)
|
5,783,665
|
|
Trade and other
payables
|
375,390
|
391,379
|
74,893
|
62,864
|
904,526
|
|
Borrowings
|
108,392
|
2,588,491
|
-
|
524,314
|
3,221,197
|
|
Decommissioning
provision
|
738,063
|
92,613
|
-
|
6,819
|
837,495
|
|
Current tax payable
|
7,597
|
-
|
-
|
1,664
|
9,261
|
|
Deferred tax liability
|
-
|
122,785
|
-
|
-
|
122,785
|
|
Other liabilities
|
7,502
|
-
|
1,601
|
(6,817)
|
2,286
|
|
Total liabilities
|
1,236,944
|
3,195,268
|
76,494
|
588,844
|
5,097,550
|
|
Other segment information
|
|
|
|
|
|
|
Capital Expenditure:
|
|
|
|
|
|
|
- Property, plant and
equipment
|
220,461
|
138,490
|
130,099
|
(1,630)
|
487,420
|
|
- Intangible, exploration
and evaluation assets
|
4,152
|
24,959
|
26,253
|
1,288
|
56,652
|
Segment
Cash
flows
The following tables present cash
flow information for the Group's operating segments for six months
ended 30 June:
|
|
Europe
|
Israel
|
Other & inter-segment
transactions
|
Continuing operations,
total
|
Discontinued
operations
|
Total
|
|
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
|
Six months ended 30 June 2024 (unaudited)
|
|
|
|
|
|
|
|
Net cash from / (used in)
operating activities
|
6,668
|
430,651
|
9,258
|
446,577
|
80,502
|
527,079
|
|
Net cash (used in) investing
activities
|
(18,478)
|
(253,309)
|
(8,494)
|
(280,281)
|
(113,176)
|
(393,457)
|
|
Net cash from financing
activities
|
5,960
|
(254,326)
|
(22,359)
|
(270,725)
|
49,920
|
(220,805)
|
|
Net increase/(decrease) in cash and cash equivalents, and
restricted cash
|
(5,850)
|
(76,984)
|
(21,595)
|
(104,429)
|
17,246
|
(87,183)
|
|
Cash and cash equivalents at
beginning of the period
|
17,884
|
286,625
|
30,414
|
334,923
|
11,849
|
346,772
|
|
Effect of exchange rate
fluctuations on cash held
|
(211)
|
1,025
|
(529)
|
285
|
(697)
|
(412)
|
|
Cash and cash equivalents at the end of the
period
|
11,823
|
210,666
|
8,290
|
230,779
|
28,398
|
259,177
|
|
Six months ended 30 June 2023 (unaudited)
|
Europe
|
Israel
|
Egypt
|
Other & inter-segment transactions
|
Total
|
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
|
Net cash from / (used in)
operating activities
|
56,014
|
172,217
|
19,987
|
(15,204)
|
233,014
|
|
Net cash (used in) investing
activities
|
(79,573)
|
(62,694)
|
(17,324)
|
3,961
|
(155,630)
|
|
Net cash from financing
activities
|
43,680
|
(68,823)
|
(1,465)
|
(134,722)
|
(161,330)
|
|
Net increase/(decrease) in cash and cash
equivalents
|
20,121
|
40,700
|
1,198
|
(145,965)
|
(83,946)
|
|
At beginning of the
year
|
58,229
|
24,825
|
26,825
|
318,009
|
427,888
|
|
Effect of exchange rate
fluctuations on cash held
|
853
|
(837)
|
(2,238)
|
4,649
|
2,427
|
|
Cash and cash equivalents at end of the
period
|
79,203
|
64,688
|
25,785
|
176,693
|
346,369
|
4. Revenue
|
|
30 June
(Unaudited)
|
|
|
2024
|
|
2023
(Restated)*
|
|
|
$'000
|
|
$'000
|
|
Revenue from gas sales
|
389,234
|
|
272,504
|
|
Revenue from hydrocarbon liquids
sales
|
213,864
|
|
81,276
|
|
Revenue from crude oil
sales
|
37,596
|
|
24,889
|
|
Revenue from LPG sales
|
227
|
|
250
|
|
Compensation to gas
buyers
|
-
|
|
(4,928)
|
|
Rendering of services
|
1,492
|
|
1,900
|
|
Total revenue from continuing operations
|
642,413
|
|
375,891
|
*Restated
for discontinued operations, refer to note 24 for further
detail.
|
Sales volumes for the six months to 30 June from continuing
operations (kboe)
|
30 June
(Unaudited)
|
|
|
2024
|
|
2023
(Restated)*
|
|
|
kboe
|
|
kboe
|
|
Israel
|
19,009
|
|
12,488
|
|
Gas
|
16,323
|
|
11,322
|
|
Hydrocarbon liquids
|
2,686
|
|
1,166
|
|
UK
|
265
|
|
149
|
|
Gas
|
17
|
|
15
|
|
Crude Oil
|
248
|
|
134
|
|
Greece
|
219
|
|
196
|
|
Crude Oil
|
219
|
|
196
|
|
Total sales volumes from continuing
operations
|
19,493
|
|
12,833
|
|
|
|
|
| |
*Restated for discontinued
operations, refer to note 24 for further detail.
5. Operating profit before taxation from continuing
operations
|
|
|
|
30 June
(Unaudited)
|
|
|
|
|
|
2024
|
|
2023
(Restated)*
|
|
|
|
|
|
$'000
|
|
$'000
|
|
|
(a)
|
Cost of
sales
|
|
|
|
|
|
|
|
Staff costs
|
|
12,307
|
|
10,296
|
|
|
|
Energy cost
|
|
6,417
|
|
7,216
|
|
|
|
Royalty payable
|
|
106,560
|
|
63,474
|
|
|
|
Other operating
costs28
|
|
64,076
|
|
58,180
|
|
|
|
Depreciation and
amortisation
|
|
130,638
|
|
82,524
|
|
|
|
Oil stock movement
|
|
1,919
|
|
(726)
|
|
|
|
Stock overlift / (underlift)
movement
|
|
4,655
|
|
(234)
|
|
|
|
Total cost of sales
|
|
326,572
|
|
220,730
|
|
|
|
|
|
|
|
|
|
|
(b)
|
Administration
expenses
|
|
|
|
|
|
|
|
Staff costs
|
|
7,539
|
|
7,431
|
|
|
|
Share-based payment charge
included in administration expenses
|
|
4,110
|
|
2,573
|
|
|
|
Depreciation and
amortisation
|
|
1,377
|
|
1,536
|
|
|
|
Audit fees
|
|
1,016
|
|
696
|
|
|
|
Other general & administration
expenses
|
|
1,806
|
|
23
|
|
|
|
Total administration
expenses
|
|
15,848
|
|
12,259
|
|
|
|
|
|
|
|
|
|
|
(c)
|
Exploration and evaluation
expenses
|
|
|
|
|
|
|
|
Staff costs for Exploration and
evaluation activities
|
|
321
|
|
64
|
|
|
|
Exploration costs written
off29
|
|
14,961
|
|
-
|
|
|
|
Other exploration and evaluation
expenses
|
|
616
|
|
616
|
|
|
|
Total exploration and evaluation expenses
|
|
15,898
|
|
680
|
|
|
(d)
|
Expected credit
loss
|
|
|
|
|
|
|
Expected credit loss
expense
|
|
-
|
|
871
|
|
|
|
Total expected credit loss
|
|
-
|
|
871
|
|
|
|
|
|
|
|
|
|
|
(e)
|
Other
expenses
|
|
|
|
|
|
|
|
Restructuring costs
|
|
-
|
|
202
|
|
|
|
Transaction expenses
30
|
|
3,861
|
|
-
|
|
|
Loss from disposal of Property,
plant & Equipment
|
|
28
|
|
-
|
|
|
|
Other expenses
|
|
71
|
|
375
|
|
|
|
Total other expenses
|
|
3,960
|
|
577
|
|
|
|
|
|
|
|
|
|
|
(f)
|
Other
income
|
|
|
|
|
|
|
|
Other income
|
|
1,088
|
|
1,118
|
|
|
|
Total other income
|
|
1,088
|
|
1,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
*Restated for discontinued
operations, refer to note 24 for further detail.
28 Other operating costs comprise of insurance costs, gas
transportation and treatment fees, concession fees and planned
maintenance costs.
29 Exploration expenses write-off pertains to the cessation of
exploration activities in the Ioannina area in Greece by the Group
during the reporting period. Refer to Note 11 for further
details
30 Transaction expenses consist of costs associated with the
anticipated sale of the Group's portfolio in Egypt, Italy, and
Croatia. The decision to sell was announced in June 2024 (refer to
note 24 for further details). Pre-sale activities have resulted in
additional expenses recognized during the reporting period,
including consulting ($1.4 million) and legal fees ($2.5
million).
6. Net finance cost from continuing
operations
|
|
|
30 June
(Unaudited)
|
|
|
|
|
2024
|
|
2023
(Restated)*
|
|
|
|
|
$'000
|
|
$'000
|
|
|
|
|
|
|
|
|
|
Interest on bank
borrowings
|
|
7,589
|
|
2,664
|
|
|
Interest on Senior Secured
Notes
|
100,236
|
|
82,326
|
|
|
Interest expense on long term
payables
|
1,249
|
|
1,554
|
|
|
Less amounts included in the cost
of qualifying assets
|
(4,655)
|
|
(7,592)
|
|
|
|
|
104,419
|
|
78,952
|
|
|
Finance and arrangement
fees
|
|
1,677
|
|
6,831
|
|
|
Commission charges for bank
guarantees
|
1,369
|
|
1,085
|
|
|
Other finance (income)/costs and
bank charges
|
844
|
|
253
|
|
|
Unwinding of discount on right of
use asset
|
483
|
|
148
|
|
|
Unwinding of discount on long-term
trade payables
|
7,804
|
|
2,060
|
|
|
Unwinding of discount on provision
for decommissioning
|
5,506
|
|
5,662
|
|
|
Unwinding of discount on deferred
consideration
|
-
|
|
5,674
|
|
|
Unwinding of discount on
convertible loan
|
-
|
|
2,155
|
|
|
Less amounts included in the cost
of qualifying assets
|
|
(345)
|
|
(88)
|
|
|
Total finance costs
|
|
121,757
|
|
102,732
|
|
|
Interest income from time
deposits
|
(5,003)
|
|
(3,196)
|
|
|
Total finance income
|
|
(5,003)
|
|
(3,196)
|
|
|
Net foreign exchange
losses
|
|
60
|
|
2,567
|
|
|
Net financing costs
|
|
116,814
|
|
102,103
|
|
|
|
|
|
|
|
| |
*Restated for discontinued
operations, refer to note 24 for further detail.
7. Fair value measurements
Set out below is information about
how the Group determines the fair values of various financial
assets and liabilities.
Contingent consideration
The share purchase agreement (the "SPA") dated
4 July 2019 between Energean and Edison Spa provides for a
contingent consideration of up to $100 million. The amount of the
Cassiopea contingent payment varies between nil and $100 million,
depending on future gas prices in Italy at the point at which first
gas production is delivered from the field. The consideration is
contingent on the basis of future gas prices (PSV) recorded at the
time of the first gas, which was achieved on 19 August 2024. No
payment will be due if the arithmetic average of the year one
(i.e., the first year after first gas production) and year two
(i.e., the second year after first gas production) Italian PSV
Natural Gas Futures prices is less than €10/MWh when first gas
production is delivered from the field. $100 million is payable if
that average price exceeds €20/MWh, with a range of outcomes
between $0 million and $100 million if the average price is between
€10/MWh and €20/MWh. The
Group's payment obligation is due 90 days after the later of
the first day of the month following the first month in which
production from the Cassiopea field has continued on a regular
basis for at least 25 days or the date upon which formal notice of
production from Cassiopea has been accepted by the relevant
competent authority in Italy (or failing which once production has
continued on a regular basis for 90 days). The fair value of the
contingent consideration is estimated by reference to the terms of
the SPA and the simulated PSV pricing by reference to the
forecasted PSV pricing, historical volatility and a log normal
distribution, discounted at a cost of debt.
As at 30 June 2024, the forward curve of PSV
prices indicate an average price in excess of
€20/MWh. Therefore, the Group's estimate at 30
June 2024 of the fair value of the contingent consideration payable
in December 2024 is $95.4 million, based on a Monte Carlo
simulation (31 December 2023: $91.1 million).
The fair value of the
consideration payable has been recognized at level 3 in the fair
value hierarchy.
|
|
|
|
|
|
|
2024
|
|
|
Contingent consideration
|
$'000
|
|
|
1 January 2024
|
91,075
|
|
|
Discount unwinding
|
4,358
|
|
|
30 June 2024
|
95,433
|
|
Management believes there are no
reasonably possible change to any key assumptions since 31 December
2023 that would materially impact the contingent consideration
valuation.
Cash Flow Hedging
In February 2024, the Company entered into a
forward transaction to hedge against foreign currency volatility
risk associated with its deferred payment to Technip. The hedge
relationship was deemed effective at inception, and in accordance
with the Group's accounting policy, the transaction was subject to
cash flow hedge accounting. Consequently, as of 30 June 2024, the
Group recorded a derivative liability of $0.4 million, an other
comprehensive loss of $0.4 million, and $0.07 million in finance
income related to this transaction during the reporting
period.
Fair values of financial instruments
The following financial
instruments are measured at amortised cost and are considered to
have fair values different to their book values:
|
|
30 June 2024
(Unaudited)
|
31 December
2023
|
|
$'000
|
Carrying value
|
Fair value
|
Carrying value
|
Fair value
|
|
Senior Secured notes
|
3,141,525
|
2,828,950
|
3,032,783
|
2,775,135
|
The fair value of the notes is within level 1
of the fair value hierarchy and has been determined by discounting
future cash flows by the relevant market yield curve at the
reporting date.
The fair value of other financial instruments
not measured at fair value including cash and short - term
deposits, trade receivables and other payables equate approximately
to their carrying values. There were no transfers between the
levels during the reporting period.
8. Taxation
|
|
30 June
(Unaudited)
|
|
|
2024
|
|
2023
(Restated)*
|
|
|
$'000
|
|
$'000
|
|
Continuing operations:
|
|
|
|
|
Corporation tax - current
period
|
(29,953)
|
|
(227)
|
|
Adjustments in respect of current
income tax of previous year(s)
|
(29)
|
|
-
|
|
Total current tax charge
|
(29,982)
|
|
(227)
|
|
Deferred tax relating to
origination and reversal of temporary differences
|
(15,913)
|
|
(19,535)
|
|
Income tax expense reported in the Income
statement
|
(45,895)
|
|
(19,762)
|
*Restated for discontinued
operations, refer to note 24 for further detail.
(b) Reconciliation of the total tax charge
The Group calculates its income tax expense as
per IAS 34 by applying a weighted average tax rate calculated based
on the statutory tax rates of Greece (25%), Cyprus (12.5%), Israel
(23%), Italy (24%), United Kingdom (25%/75%) and Egypt (40.55%),
weighted according to the profit before tax earned in each
jurisdiction where deferred tax is recognised excluding fair value
uplifts profits.
On the 29th July 2024, the UK Government
announced changes in the Energy Profits Levy (EPL) with effective
date 1st November 2024. Specifically, the EPL rate will increase to
38% from 1 November 2024, bringing the headline rate of tax
on upstream oil and gas activities to 78%. The government will also
remove the investment allowances from the Energy Profits Levy,
including by abolishing the levy's main 29% investment allowance
for qualifying expenditure incurred on or after 1 November 2024.
The Group is not expected to be materially affected as a result of
the announced changes in the EPL.
Pillar Two legislation has been
enacted or substantively enacted in certain jurisdictions in which
the Group operates. However, this legislation does not currently
apply to the Group as its consolidated revenue has not exceeded the
threshold of €750 million in at least two of the four preceding
fiscal years prior to the enactment of the legislation.
The effective tax rate for the
period is 49% (30 June 2023: 48%). The tax (charge)/ credit of the
period can be reconciled to the profit per the unaudited interim
consolidated income statement as follows:
|
|
30 June
(Unaudited)
|
|
|
2024
|
|
2023
(Restated)*
|
|
|
$'000
|
|
$'000
|
|
Accounting profit before tax from
continuing operations
|
161,764
|
|
47,086
|
|
Profit before tax from
discontinued operations
|
13,221
|
|
87,958
|
|
Accounting profit before tax
|
174,985
|
|
135,044
|
|
Tax calculated at 21.0% weighted
average rate (2023: 28.3%)
|
(36,786)
|
|
(38,163)
|
|
Impact of different tax
rates31
|
(1,822)
|
|
1,621
|
|
Non recognition of deferred tax on
current year tax losses and other temporary differences
|
(11,712)
|
|
(25,937)
|
|
Derecognition of previously
recognised deferred tax32
|
(10,987)
|
|
-
|
|
Permanent
differences33
|
(27,946)
|
|
(2,616)
|
|
Foreign taxes
|
(29)
|
|
-
|
|
Tax effect of non-taxable income
and allowances
|
936
|
|
1,187
|
|
Other adjustments
|
(169)
|
|
222
|
|
Prior year tax
|
2,067
|
|
(1,600)
|
|
Income tax expense reported in the statement of profit or
loss
|
(45,895)
|
|
(19,762)
|
|
Income tax attributable to discontinued
operations
|
(40,553)
|
|
(45,524)
|
|
Total taxation (expense)/income
|
(86,448)
|
|
(65,286)
|
* Restated for discontinued operations, refer to Note 24 for
further detail.
31Impact of different tax rates mainly relates to the different
tax rate applied in the reconciliation of non-taxable income
(intragroup dividends) and the impairment loss in Egypt.
32 In 2024, the Group reassessed the recoverability of its
deferred tax asset related to the decommissioning provision in
Italy, resulting in an approximate tax charge of $11
million. This is attributable to the
discontinued operations.
33 Permanent differences primarily consisted of a non-deductible
impairment loss of exploration assets in Egypt ($26.8 million),
non-deductible M&A costs ($1.0m), other non-deductible expenses
($1.1m) and foreign exchange income ($1.0 million).
9. Earnings per share
Basic earnings per ordinary share amounts are
calculated by dividing net income for the year attributable to
ordinary equity holders of the parent by the weighted average
number of ordinary shares outstanding during the year.
Diluted income per ordinary share amounts is
calculated by dividing net income for the year attributable to
ordinary equity holders of the parent by the weighted average
number of ordinary shares outstanding during the year plus the
weighted average number of ordinary shares that would be issued if
dilutive employee share options were converted into ordinary
shares.
|
|
30 June
(Unaudited)
|
|
|
2024
|
|
2023
(Restated)*
|
|
|
$'000
|
|
$'000
|
|
|
|
|
|
|
Total profit from continuing
operations attributable to equity shareholders
|
115,869
|
|
27,324
|
|
Effect of dilutive potential
ordinary shares
|
-
|
|
2,155
|
|
|
115,869
|
|
29,479
|
|
Number of shares
|
|
|
|
|
Basic weighted average number of
shares
|
183,480,959
|
|
178,454,765
|
|
Dilutive potential ordinary
shares
|
1,070,515
|
|
5,815,646
|
|
Diluted weighted average number of shares
|
184,551,474
|
|
184,270,411
|
|
Basic earnings per share, continuing
operations
|
$0.63
|
|
$0.17
|
|
Diluted earnings per share, continuing
operations
|
$0.63
|
|
$0.16
|
* Restated for discontinued operations, refer to Note 24 for
further detail.
10. Property, plant and
equipment
|
|
Oil and gas
properties
|
Leased
assets
|
Other property, plant and
equipment
|
Total
|
|
Property, plant and equipment
|
$'000
|
$'000
|
$'000
|
$'000
|
|
Cost
|
|
|
|
|
|
At 1 January 2023
|
4,739,424
|
58,712
|
60,118
|
4,858,254
|
|
Additions
|
469,023
|
38,278
|
2,203
|
509,504
|
|
Lease modification
|
-
|
8,706
|
-
|
8,706
|
|
Disposal of assets
|
(111,448)
|
|
-
|
(111,448)
|
|
Capitalised borrowing
cost
|
17,658
|
-
|
-
|
17,658
|
|
Change in decommissioning
provision
|
(2,504)
|
-
|
-
|
(2,504)
|
|
Other movements
|
(313)
|
-
|
(307)
|
(620)
|
|
Foreign exchange impact
|
89,811
|
2,582
|
2,090
|
94,483
|
|
At 31 December 2023
|
5,201,651
|
108,278
|
64,104
|
5,374,033
|
|
Additions
|
190,433
|
1,755
|
206
|
192,394
|
|
Lease
modifications34
|
-
|
(998)
|
-
|
(998)
|
|
Disposal of assets
|
-
|
-
|
(28)
|
(28)
|
|
Capitalised borrowing
cost
|
5,000
|
-
|
-
|
5,000
|
|
Change in decommissioning
provision
|
(24,546)
|
-
|
-
|
(24,546)
|
|
Transfer to inventory
|
(448)
|
-
|
-
|
(448)
|
|
Transfer to assets held for
sale
|
(1,277,911)
|
(71,939)
|
(1,001)
|
(1,350,851)
|
|
Foreign exchange impact
|
(86,507)
|
(2,331)
|
(1,880)
|
(90,718)
|
|
At 30 June 2024 (Unaudited)
|
4,007,672
|
34,765
|
61,401
|
4,103,838
|
|
|
|
|
|
|
|
Accumulated Depreciation
|
|
|
|
|
|
At 1 January 2023
|
542,894
|
29,298
|
54,158
|
626,350
|
|
Charge for the period
|
287,926
|
15,432
|
1,808
|
305,166
|
|
Impairment
|
342
|
-
|
-
|
342
|
|
Foreign exchange impact
|
67,387
|
1,607
|
1,856
|
70,850
|
|
At 31 December 2023
|
898,549
|
46,337
|
57,822
|
1,002,708
|
|
Charge for the period
expensed
|
172,470
|
10,135
|
787
|
183,392
|
|
Impairment
|
159
|
-
|
-
|
159
|
|
Transfer to assets held for
sale
|
(271,045)
|
(32,740)
|
(2,121)
|
(305,906)
|
|
Foreign exchange impact
|
(63,763)
|
(1,409)
|
(1,666)
|
(66,838)
|
|
At 30 June 2024 (Unaudited)
|
736,370
|
22,323
|
54,822
|
813,515
|
|
Net carrying amount
|
|
|
|
|
|
At 31 December 2023
|
4,303,102
|
61,941
|
6,282
|
4,371,325
|
|
At 30 June 2024
(Unaudited)
|
3,271,302
|
12,442
|
6,579
|
3,290,323
|
|
|
|
|
|
|
| |
34 The lease modification pertains to the sublease of leased
assets in Italy. A corresponding financial asset of $1.0 million
for the sublet property has been recorded under Other Receivables
on the balance sheet of the disposal group. For more details, refer
to Note 24.
Included in the carrying amount of leased assets at
30 June 2024 are right of use assets related to Oil and gas
properties and Other property, plant and equipment of $8.8 million
and $3.6 million respectively (31 December 2023: $58.0 million and
$3.9 million). The depreciation charged on these classes for the
six-month ending 30 June 2024 were $8.3 million and $1.9 million
respectively (six months ended 30 June 2023: $6.3 million and $0.3
million).
The additions to Oil & gas properties for the
period of six months ended 30 June 2024 are mainly due to
development costs of the Karish main, Karish North, second gas
exporter riser costs and the second oil train in Israel at the
amount of $49.5 million and the Cassiopea project in Italy at the
amount of $105 million.
On 20 June 2024, property, plant, and equipment owned
by the disposal group, with a carrying value of $1,045 million
(primarily in Italy and Egypt; see note 24 for further details),
were reclassified as assets held for sale. Depreciation on these
assets ceased once they were classified as held for sale.
Borrowing costs capitalised for qualifying
assets, included in oil & gas properties, for the six months
ended 30 June 2024 amounted to $5.0 million (30 June 2023: $3.5
million). The weighted average interest rates used was 1.58% for
the six months ended 30 June 2024 (30 June 2023: 5.42%).
There were no impairment
indicators identified at 30 June 2024.
11. Intangible
assets
|
|
Exploration and evaluation
assets
|
Goodwill
|
Other Intangible
assets
|
Total
|
|
|
$'000
|
$'000
|
$'000
|
$'000
|
|
Intangibles at Cost
|
|
|
|
|
|
At 1 January 2023
|
338,354
|
101,146
|
10,975
|
450,475
|
|
Additions
|
56,379
|
-
|
273
|
56,652
|
|
Other movements
|
313
|
-
|
307
|
620
|
|
Exchange differences
|
2,670
|
-
|
(12)
|
2,658
|
|
At 31 December 2023
|
397,716
|
101,146
|
11,543
|
510,405
|
|
Additions
|
192,538
|
-
|
401
|
192,939
|
|
Transfer to assets held for
sale
|
(99,069)
|
(4,860)
|
(6,978)
|
(110,907)
|
|
Exchange differences
|
(3,961)
|
-
|
(359)
|
(4,320)
|
|
At 30 June 2024 (Unaudited)
|
487,224
|
96,286
|
4,607
|
588,117
|
|
|
|
|
|
|
|
Accumulated amortisation and impairments
|
|
|
|
|
|
At 1 January 2023
|
130,448
|
18,310
|
5,339
|
154,097
|
|
Charge for the period
|
46
|
-
|
932
|
978
|
|
Impairment
|
26,583
|
2,175
|
-
|
28,758
|
|
Exchange differences
|
1,197
|
-
|
(14)
|
1,183
|
|
At 31 December 2023
|
158,274
|
20,485
|
6,257
|
185,016
|
|
Charge for the period
|
36
|
-
|
489
|
525
|
|
Impairment
|
76,030
|
-
|
-
|
76,030
|
|
Transfer to assets held for
sale
|
(63,450)
|
-
|
(3,821)
|
(67,271)
|
|
Exchange differences
|
(3,297)
|
-
|
(304)
|
(3,601)
|
|
At 30 June 2024 (Unaudited)
|
167,593
|
20,485
|
2,621
|
190,699
|
|
|
|
|
|
|
|
Net Carrying Amount
|
|
|
|
|
|
At 31 December 2023
|
239,442
|
80,661
|
5,286
|
325,389
|
|
At 30 June 2024
(Unaudited)
|
319,631
|
75,801
|
1,986
|
397,418
|
Goodwill arises principally because of the
requirement to recognise deferred tax assets and liabilities for
the difference between the assigned values and the tax bases of
assets acquired and liabilities assumed in a business
combination.
During the period, the Group made significant
additions to key ongoing projects, including $13 million for the
Company's partnership with Chariot Limited in Morocco's Anchois gas
development, $130 million mainly related to the Katlan project in
Israel, and $49 million for the Location B project in Egypt and the
Orion exploration (the latter has subsequently been
impaired).
Total impairments of $76.0 million were
recognised during the period for projects that will not progress to
development. In 2024, the Orion X1 exploration well in Egypt
reached the target reservoir but indicated no commercial
hydrocarbons, resulting in a full impairment of the related
exploration asset valued at $61.2 million. Additionally, the
exploration license for Ioannina expired on 2 April 2024, leading
to a full impairment of the exploration asset valued at $14.8
million.
The Group exited the Isabella license in
December 2023, resulting in the full impairment of the related
exploration asset valued at $26.6 million and goodwill of $2.2
million.
On 20 June 2024, intangible assets owned by the
disposal group, with a carrying value of $ 43.6 million (primarily
in Italy and Egypt; see note 24 for further details), were
reclassified as assets held for sale. Amortisation on these assets
ceased once they were classified as held for sale.
12. Net deferred tax (liability)/ asset
|
Deferred tax (liabilities)/assets
|
Property, plant and equipment
|
Right of use asset IFRS 16
|
Decommi-ssioning
|
Prepaid expenses and other receivables
|
Inventory
|
Tax losses
|
Deferred expenses for tax
|
Retire-ment benefit liability
|
Accrued expenses and other short‑term
liabilities
|
Total
|
|
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
|
At 1 January 2023
|
(148,923)
|
(1,078)
|
126,246
|
186
|
440
|
197,008
|
6,208
|
165
|
5,860
|
186,112
|
|
Increase / (decrease) for the period
through:
|
|
|
|
|
|
|
|
|
|
|
|
Profit or loss
|
(13,874)
|
(2,644)
|
(26,955)
|
(2,225)
|
(440)
|
(57,185)
|
(630)
|
163
|
3,958
|
(99,832)
|
|
Other comprehensive
income
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
38
|
-
|
38
|
|
Exchange difference
|
(1,197)
|
(15)
|
4,269
|
(12)
|
6
|
5,043
|
-
|
3
|
304
|
8,401
|
|
At 31 December 2023
|
(163,994)
|
(3,737)
|
103,560
|
(2,051)
|
6
|
144,866
|
5,578
|
369
|
10,122
|
94,719
|
|
Increase / (decrease) for the period
through:
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
Profit or loss
|
(11,213)
|
733
|
318
|
137
|
401
|
(5,576)
|
(316)
|
(35)
|
(363)
|
(15,914)
|
|
Other comprehensive
income
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
94
|
-
|
94
|
|
Exchange difference
|
1,081
|
17
|
(47)
|
18
|
(4)
|
(3,368)
|
-
|
(3)
|
(204)
|
(2,510)
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
Profit or loss
|
844
|
-
|
(12,159)
|
-
|
-
|
(7,092)
|
-
|
-
|
64
|
(18,343)
|
|
Other comprehensive
income
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(3)
|
(3)
|
|
Exchange difference
|
(532)
|
-
|
(2,834)
|
-
|
-
|
(541)
|
-
|
-
|
1
|
(3,906)
|
|
Transfer to assets / (liabilities) held for
sale
|
(17,083)
|
-
|
(79,656)
|
-
|
-
|
(11,950)
|
-
|
10
|
(85)
|
(108,764)
|
|
At 30 June 2024 (Unaudited)
|
(190,897)
|
(2,987)
|
9,182
|
(1,896)
|
403
|
116,339
|
5,262
|
435
|
9,532
|
(54,627)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30 June 2024
(Unaudited)
|
31 December
2023
|
|
|
|
|
$'000
|
$'000
|
|
|
Deferred tax
liabilities
|
|
(141,748)
|
(122,785)
|
|
|
Deferred tax assets
|
|
87,121
|
217,504
|
|
|
Net deferred tax (liabilities)/ assets
|
|
(54,627)
|
94,719
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
The Group transferred to "Asset and Liabilities
held for sale" deferred tax assets totally amounted to $108.8
million coming from Italy, as further described in Note
24.
As of 30 June 2024, the Group had gross unused
tax losses of $838.2 million (as of 31 December 2023: $907.4
million), of which $101.6 million related to discontinued
operations, available to offset against future profits and other
temporary differences. The Group did not recognise deferred tax on
tax losses and other differences of total amount of $690.9 million,
of which $179.9 million related to discontinued
operations.
A deferred tax asset of $128.3 million (2023:
$144.9 million) has been recognised on tax losses of $499.4
million, based on the forecasted profits. A deferred tax asset of
$12.0 million recognised on Italian tax losses of $49.8 million,
classified under discontinued operations, so as the deferred tax
asset of $79.7 million recognised on Italian decommissioning
costs.
In Greece and the UK, the net DTA for carried
forward losses recognised in excess of the other net taxable
temporary differences was $78.8 million and $8.3 million (2023:
$77.8 million and $8.7 million) respectively.
Greek tax losses (Prinos area) can be carried
forward without limitation up until the relevant concession
agreement expires (by 2039), whereas, the tax losses in Israel,
Italy and the United Kingdom can be carried forward indefinitely.
Based on the Prinos area forecasts (including the Epsilon
development), the deferred tax asset is fully utilised by 2032.
Finally, in the UK, decommissioning losses is expected to be tax
relieved up until 2027 in accordance with the latest taxable
profits forecasts.
13. Cash and cash equivalents
|
|
30 June
|
|
31
December
|
|
|
2024
(Unaudited)
|
|
2023
|
|
|
$'000
|
|
$'000
|
|
Cash and bank deposits
|
230,779
|
|
346,772
|
|
|
230,779
|
|
346,772
|
Bank deposits comprise deposits and other
short-term money market deposit accounts that are readily
convertible into known amounts of cash. The annual average interest
rate on short‑term bank deposits was 4.678% for the six months
period ended 30 June 2024 (12 months ended 31 December 2023:
4.371%).
14. Restricted Cash
Restricted cash comprises cash retained under
the Israel Senior Secured Notes and the Greek State Loan
requirement as follows:
Current
The current portion of restricted cash at 30
June 2024 was $82.54 million (31 December 2023: $22.48 million). It
mainly relates to the September 2024 coupon payment on Senior
Secured Notes.
Non-Current
The cash restricted for more than 12 months
after the reporting date was $3.0 million (31 December 2023: $3.1
million) mainly comprising $2.2 million (31 December 2023: $2.3
million) held on the Interest Service Reserve Account ('ISRA') in
relation to the Greek Loan Notes and $0.8 million (31 December
2023: $0.8 million) for Prinos Guarantee.
15. Inventories
|
|
30 June
2024
(Unaudited)
|
|
31 December
2023
|
|
|
$'000
|
|
$'000
|
|
Crude oil
|
17,776
|
|
55,414
|
|
Hydrocarbon liquids
|
1,201
|
|
1,685
|
|
Gas
|
542
|
|
552
|
|
Raw materials and
supplies
|
17,425
|
|
52,475
|
|
Total inventories
|
36,944
|
|
110,126
|
|
|
|
|
|
16. Trade and other receivables
|
|
30 June
|
|
31
December
|
|
|
2024
(Unaudited)
|
|
2023
|
|
|
$'000
|
|
$'000
|
|
Trade and other receivables - Current
|
|
|
|
|
Financial items:
|
|
|
|
|
Trade receivables
|
133,209
|
|
297,305
|
|
Receivables from partners under
JOA
|
435
|
|
1,996
|
|
Other receivables
|
5,106
|
|
9,479
|
|
Government subsidies
|
79
|
|
82
|
|
Refundable VAT
|
1,364
|
|
19,273
|
|
Accrued interest income
|
399
|
|
1,016
|
|
|
140,592
|
|
329,151
|
|
Non-financial items:
|
|
|
|
|
Deposits and
prepayments35
|
8,752
|
|
19,174
|
|
Other deferred expenses
|
541
|
|
4,932
|
|
|
9,293
|
|
24,106
|
|
|
149,885
|
|
353,257
|
|
Trade and other receivables - Non-Current
|
|
|
|
|
Financial items:
|
|
|
|
|
Other tax recoverable
|
15,462
|
|
15,544
|
|
|
15,462
|
|
15,544
|
|
Non-financial items:
|
|
|
|
|
Deposits and
prepayments
|
16,208
|
|
17,612
|
|
Other non-current
assets
|
645
|
|
526
|
|
|
16,853
|
|
18,138
|
|
|
32,315
|
|
33,682
|
35 Included in deposits
and prepayments, are mainly prepayments for goods and services
under the GSP Engineering, Procurement, Construction and
Installation Contract (EPCIC) for Epsilon project.
17. Share capital
The below tables outline the share
capital of the Company.
|
|
Equity share capital
allotted and fully paid
|
Share
capital
|
Share
premium
|
|
|
Number
|
$'000
|
$'000
|
|
Issued and authorized
|
|
|
|
|
At 1 January 2023
|
178,040,505
|
2,380
|
415,388
|
|
Issued during the year
|
|
|
|
|
- New shares
|
4,422,013
|
57
|
49,943
|
|
- Share based payment
|
1,018,441
|
12
|
-
|
|
At 31 December 2023
|
183,480,959
|
2,449
|
465,331
|
|
Issued during the
period
|
|
|
|
|
- Share
based payment
|
-
|
-
|
-
|
|
At 30 June 2024 (Unaudited)
|
183,480,959
|
2,449
|
465,331
|
18. Dividends
In line with the Group's dividend
policy, Energean returned $0.60/share to shareholders during the
reporting period, representing two-quarters of dividend payments (6
months ended 30 June 2023: $0.60/ share).
|
|
$ cents per
share
|
$' 000
|
|
Dividends announced and paid in cash
|
2024
|
2023
|
2024
|
2023
|
|
March
|
30
|
30
|
54,844
|
53,252
|
|
June
|
30
|
30
|
54,991
|
53,411
|
|
|
60
|
60
|
109,835
|
106,663
|
19. Borrowings
|
|
|
30 June
|
|
31
December
|
|
|
|
|
2024
(Unaudited)
|
|
2023
|
|
|
|
|
$'000
|
|
$'000
|
|
|
Non-current
|
|
|
|
|
|
|
Bank borrowings - after two years but within five
years
|
|
|
|
|
|
|
4.875% Senior Secured notes due
2026 ($625 million)
|
|
621,013
|
|
619,932
|
|
|
Bank borrowings - more than five years
|
|
|
|
|
|
|
6.5% Senior Secured notes due 2027
($450 million)
|
|
445,109
|
|
444,313
|
|
5.375% Senior Secured notes due
2028 ($625 million)
|
|
618,863
|
|
618,145
|
|
5.875% Senior Secured notes due
2031 ($625 million)
|
|
617,218
|
|
616,762
|
|
8.50% Senior Secured notes due
2033 ($750 million)
|
|
734,004
|
|
733,653
|
|
BSTDB Loan and Greek State Loan
Notes
|
|
105,318
|
|
108,392
|
|
Carrying value of non-current borrowings
|
|
3,141,525
|
|
3,141,197
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
|
Revolving credit
facility
|
|
105,000
|
|
80,000
|
|
|
Carrying value of current borrowings
|
|
105,000
|
|
80,000
|
|
|
|
|
|
|
|
|
|
Carrying value of total borrowings
|
|
3,246,525
|
|
3,221,197
|
|
The Group has provided security in respect of
certain borrowings in the form of share pledges, as well as fixed
and floating charges over
certain assets of the Group.
At 30 June 2024, the Group holds US$2.625
billion in aggregate principal amount of senior secured notes,
issued in four series as follows:
· US$625 million, issued on 24 March 2021, maturing on 30 March
2026, with a fixed annual interest rate of 4.875%.
· US$625 million, issued on 24 March 2021, maturing on 30 March
2028, with a fixed annual interest rate of 5.375%.
· US$625 million, issued on 24 March 2021, maturing on 30 March
2031, with a fixed annual interest rate of 5.875%.
· US$750 million, issued on 11 July 2023, maturing on 30
September 2033, with a fixed annual interest rate of
8.5%.
The interest on each series is paid
semi-annually on 30 March and 30 September. The notes are listed
for trading on the TACT Institutional of the Tel Aviv Stock
Exchange Ltd (TASE), and the TASE-UP for the 2023
issuance.
The Group has provided various collateral,
including fixed charges over shares, leases, sales agreements, bank
accounts, operating permits, insurance policies, exploration
licenses, and the Energean Power FPSO. Floating charges cover
present and future assets of relevant subsidiaries.
Additionally, the Group issued US$450 million
in senior secured notes on 18 November 2021, maturing on 30 April
2027 with a fixed annual interest rate of 6.5%. These notes are
listed on the Official List of the International Stock Exchange
(TISE), with interest paid semi-annually on 30 April and 30
October.
Energean Oil and Gas SA entered into a loan
agreement on 27 December 2021 with Black Sea Trade and Development
Bank for €90.5 million for the development of the Epsilon Oil
Field, with an interest rate of EURIBOR plus margins, and another
agreement with the Greek State for €9.5 million maturing in 8 years
with a fixed rate plus margin.
Finally, the Group signed a three-year $275
million Revolving Credit Facility (RCF) on 8 September 2022,
increased to $300 million in May 2023, led by ING Bank N.V. The RCF
provides additional liquidity for corporate needs, with an interest
rate of 5% plus SOFR on drawn amounts. During the reporting period,
the Company utilised $65 million from this facility at an average
interest rate of 10.3%, with $30 million repaid subsequent to the
reporting date.
Capital management
The Group defines capital as the total equity
and net debt of the Group. Capital is managed in order to provide
returns for shareholders and benefits to stakeholders and to
safeguard the Group's ability to continue as a going
concern.
Energean is not subject to any
externally imposed capital requirements. To maintain or adjust the
capital structure, the Group may put in place new debt facilities,
issue new shares for cash, repay debt, engage in active portfolio
management, adjust the dividend payment to shareholders, or
undertake other such restructuring activities as
appropriate.
|
|
|
30 June 2024
(Unaudited)
|
|
31 December
2023
|
|
|
|
|
$'000
|
|
$'000
|
|
|
Net Debt
|
|
|
|
|
|
|
Current borrowings
|
|
105,000
|
|
80,000
|
|
|
Non-current borrowings
|
|
3,141,525
|
|
3,141,197
|
|
|
Total borrowings
|
|
3,246,525
|
|
3,221,197
|
|
|
Less: Cash and cash
equivalents
|
(230,779)
|
(346,772)
|
|
|
|
Restricted cash
|
(85,574)
|
(25,606)
|
|
|
|
Net Debt
|
|
2,930,172
|
|
2,848,819
|
|
|
|
Total equity
|
|
653,923
|
|
686,115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
20. Retirement benefit liability
20.1 Provision for retirement benefits
|
|
|
30 June 2024
(Unaudited)
|
|
31 December
2023
|
|
|
|
$'000
|
|
$'000
|
|
Defined benefit
obligation
|
|
448
|
|
1,595
|
|
Provision for retirement benefits
recognised
|
|
448
|
|
1,595
|
|
Allocated as:
|
|
|
|
|
|
Non-current portion
|
|
448
|
|
1,595
|
20.2 Defined benefit obligation
|
|
|
30 June 2024
(Unaudited)
|
|
31 December
2023
|
|
|
|
$'000
|
|
$'000
|
|
At 1 January
|
|
1,595
|
|
1,675
|
|
Transfer to liabilities held for
sale
|
|
(1,133)
|
|
-
|
|
Current service cost
|
|
49
|
|
88
|
|
Interest cost
|
|
26
|
|
59
|
|
Extra payments or
expenses
|
|
-
|
|
1
|
|
Actuarial gains/(losses) - from
changes in financial assumptions
|
|
(13)
|
|
161
|
|
Benefits paid
|
|
(24)
|
|
(433)
|
|
Exchange differences
|
|
(52)
|
|
44
|
|
At 30 June / 31 December
|
|
448
|
|
1,595
|
21. Provisions
|
|
Decommissioning
provision
|
Litigation and other
provisions
|
Total
|
|
|
$'000
|
$'000
|
$'000
|
|
At 1 January 2024
|
830,676
|
7,510
|
838,186
|
|
Change in estimates
|
(24,931)
|
220
|
(24,711)
|
|
Recognised in property, plant and equipment
|
(24,546)
|
|
(24,546)
|
|
Recognised in operating profit
|
(385)
|
220
|
(165)
|
|
Spend
|
(15,744)
|
|
(15,744)
|
|
Unwinding of discount
|
16,047
|
-
|
16,047
|
|
Transfer to liabilities held for
sale
|
(481,161)
|
(7,678)
|
(488,839)
|
|
Currency translation
adjustment
|
(17,591)
|
(52)
|
(17,643)
|
|
At 30 June 2024 (Unaudited)
|
307,296
|
-
|
307,296
|
|
Current provisions
|
44,898
|
-
|
44,898
|
|
Non-current provisions
|
262,398
|
-
|
262,398
|
|
|
|
|
| |
Decommissioning provision:
The decommissioning provision represents the
present value of decommissioning costs relating to oil and gas
properties, which are expected to be incurred up to 2044, when the
producing oil and gas properties are expected to cease
operations. The
decrease in the estimate for continuing operations is primarily due
to changes in the discount rate and inflation assumptions as of 30
June 2024.
The key assumptions underpinning
the estimated decommissioning provision are as follows:
|
|
|
Inflation
assumption
30 June
2024
|
Discount
rate
assumption
30 June
2024
|
Cessation
of
production
assumption
|
Spend in
2024
|
30 June
2024
(Unaudited)
$'000
|
31 December
2023
$'000
|
|
Continuing operations:
|
|
|
|
|
|
|
|
|
Greece
|
|
2,6%-1,9%
|
3.73%
|
2034
|
-
|
18,689
|
19,359
|
|
UK
|
|
2.02%
|
3.88%
|
2030
|
5,210
|
197,370
|
202,874
|
|
Israel36
|
|
3.3%-2.15%
|
4.68%
|
2042
|
-
|
91,237
|
92,613
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
|
Italy
|
|
2,2-2%
|
4.44%
|
2024-2039
|
10.534
|
464,679
|
497,827
|
|
Croatia
|
|
2,2-2%
|
4.44%
|
2036
|
-
|
16,482
|
18,003
|
|
Total
|
|
|
|
|
15,744
|
788,457
|
830,676
|
36US inflation rate and US Bond rates have been
used.
22. Trade and other payables
|
|
30 June 2024
(Unaudited)
|
|
31 December
2023
|
|
|
|
$'000
|
|
$'000
|
|
|
Trade and other payables - Current
|
|
|
|
|
|
Financial items:
|
|
|
|
|
|
Trade accounts payable
|
212,792
|
|
225,451
|
|
|
Payables to partners under
JOA37
|
8,694
|
|
170,470
|
|
|
Deferred licence payments due
within one year40
|
-
|
|
46,154
|
|
|
Other
payables38
|
40,267
|
|
53,756
|
|
|
Contingent
consideration
|
-
|
|
91,075
|
|
|
Short term lease
liability
|
5,361
|
|
16,498
|
|
|
Deferred income
|
-
|
|
548
|
|
|
VAT payable
|
1,498
|
|
20
|
|
|
|
268,612
|
|
603,972
|
|
|
Non-financial items:
|
|
|
|
|
|
Accrued expenses
|
21,927
|
|
65,033
|
|
|
Other finance costs
accrued
|
50,013
|
|
63,893
|
|
|
Social insurance and other
taxes
|
1,926
|
|
4,705
|
|
|
|
73,866
|
|
133,631
|
|
|
|
342,478
|
|
737,603
|
|
|
Trade and other payables - Non Current
|
|
|
|
|
|
Financial items:
|
|
|
|
|
|
Trade and other
payables39
|
93,187
|
|
117,796
|
|
|
Long term lease
liability
|
8,220
|
|
48,598
|
|
|
|
101,407
|
|
166,394
|
|
|
Non-financial items:
|
|
|
|
|
|
Social insurance
|
636
|
|
529
|
|
|
|
636
|
|
529
|
|
|
|
102,043
|
|
166,923
|
|
37 Payables to partners under the JOA include both payables and
working capital estimates provided by the operators. The decrease
in 2024 is due to the payables to partners
for JOAs in Italy and Egypt being
classified as held for sale. Refer to Note 24 for further
details.
38 Other payables primarily consist of royalties accrued in
Israel ($40.1 million as of 30 June 2024, $32 million as of 31
December 2023) and in Italy ($18 million as of 31 December 2023,
with no inclusion as of 30 June 2024).
39 The amount represents a long-term amount payable in terms of
the EPCIC contract. Following the amendment to the terms of the
deferred payment agreement with Technip signed in February 2024 the
remaining amount payable under the EPCIC contract reduced to $210
million. The amount is payable in twelve equal quarterly deferred
payments starting in March and therefore has been discounted at
8.668%. p.a. (being the yield rate of the senior secured loan
notes, maturing in 2026, at the date of agreeing the payment
terms). As of 30 June 2024, two instalments have been
paid.
40 In December 2016, Energean Israel acquired the Karish and
Tanin offshore gas fields for an initial payment of $40.0 million,
with an additional obligation of $108.5 million plus interest, to
be paid in ten equal annual instalments at an annual inflation rate
of 4.6%. In November 2023, a settlement agreement was reached,
allowing the remaining balance to be settled in two instalments,
both completed in the first half of 2024. As of 30 June 2024, the
full consideration has been paid.
23. Share based payments
Analysis of share-based payment charge:
|
|
30 June
(Unaudited)
|
|
|
2024
|
|
2023
(Restated)*
|
|
|
$'000
|
|
$'000
|
|
Energean Deferred Bonus Plan
(DSBP)
|
1,083
|
|
781
|
|
Energean Long Term Incentive Plans
(LTIP)
|
3,027
|
|
2,140
|
|
Total share-based payment charge
|
4,110
|
|
2,921
|
|
Expensed as cost of
sales
|
-
|
|
348
|
|
Expensed as administration
expenses
|
4,110
|
|
2,573
|
|
Total share-based payment charge
|
4,110
|
|
2,921
|
*Restated for discontinued
operations, refer to note 24 for further detail.
Energean Long Term Incentive Plan (LTIP)
Under the Energean plc's 2018 LTIP rules,
senior executives may be granted conditional awards of shares or
nil cost options. Nil cost options are normally exercisable from
three to ten years following grant provided an individual remains
in employment. Awards are subject to performance conditions
(including Total Shareholder Return (TSR) normally measured over a
period of three years. Vesting of awards or exercise of nil cost
options is generally subject to an individual remaining in
employment except in certain circumstances such as good leaver and
change of control. Awards may be subject to a holding period
following vesting. No dividends are paid over the vesting period;
however, Energean's Board may decide at any time prior to the issue
or transfer of the shares in respect of which an award is released
that the participant will receive an amount (in cash and/or
additional shares) equal in value to any dividends that would have
been paid on those shares on such terms and over such period
(ending no later than the Release Date) as the Board may determine.
This amount may assume the reinvestment of dividends (on such basis
as the Board may determine) and may exclude or include special
dividends.
The weighted average remaining contractual life
for LTIP awards outstanding at 30 June 2024 was 1.5 years, number
of shares outstanding 1,947,405 and weighted average price of
$10.58.
Deferred Share Bonus Plan (DSBP)
Under the DSBP, a portion of any annual bonus
of a Senior Executive nominated by the Remuneration & Talent
Committee, may be deferred into shares. Deferred awards are usually
granted in the form of conditional share awards or nil-cost options
(or, exceptionally, as cash-settled equivalents). Deferred awards
usually vest two years after award although may vest early on
leaving employment or on a change of control.
The weighted average remaining contractual life
for DSBP awards outstanding at 30 June 2024 was 1.23 years, number
of shares outstanding 323,774 and weighted average price of
$13.58.
24. Discontinued operations
On 20 June 2024, the Group
publicly announced the decision of its Board of Directors to sell
its portfolio in Egypt, Italy and Croatia (together referred to as
"Energean Capital Limited Group", "ECL" or "ECL Group"), fully
owned and controlled by the Group. The sale of ECL is expected to
be completed by the end of 2024. Upon
completion of the disposal, the Group will receive:
o $504 million in upfront cash consideration at the closing of
the transaction;
o Adjustments for working capital and cash between 31 December
2023, and the closing date;
o A
$139 million Vendor Loan with a tenor of 6 years and 3 months,
accruing interest at SOFR + 7% in the first year, increasing by
0.5% annually thereafter;
o Up
to $125 million in contingent consideration, adjusted for inflation
based on the US CPI index from 1 January 2024, contingent
upon:
o Italian oil and gas production exceeding annual reference
volumes from 2025-2028, as outlined in the YE23 Competent Person's
Report (CPR).
o Brent and Italian PSV gas prices exceeding annual reference
prices from 2025-2028.
o The contingent payment is calculated as 25% of the
incremental commodity price multiplied by actual production,
payable annually from 2025 to 2028; and
o An
uncapped contingent payment related to the recently drilled
Location B well in Egypt which will be calculated based off (i) the
2P reserves (as determined by an independent auditor at YE24) plus
(ii) the actual 2024 production, that are in excess of specific
pre-drill estimated volumes
At 30 June 2024, ECL Group was classified as a
disposal group held for sale ("HFS") and as a discontinued
operation. The business of ECL Group represented the entirety of
the Group's Egypt operating segment until 20 June 2024. With ECL
being classified as discontinued operations, the Egypt segment is
no longer presented in the segment note. ECL operations in Italy
and Croatia were previously included in the Group's Europe
operating segment, they are no longer presented within this
segment. The results of ECL for the six months ended 30 June 2024
are presented below:
Note A: The tables below
present the ECL Group's financial results, showing financial
results from discontinued operations before and after adjustments
for the reporting periods. The adjustments include (1) intra-group
transactions such as interest income and expenses, allowances for
related party loans, and costs from transactions between the
disposal group and other entities within the Energean plc Group
(continuing operations) and (2) adjustments made by the Group
related to discontinued operations classification including the
adjustment to depreciation and amortisation following the HFS
classification date. These items were not eliminated in the
carve-out view (refer to "Discontinued operations, before
adjustments"), thereby reflecting the related party transactions
for the ECL Group before consolidation adjustments for discontinued
operations. Financial results presented for discontinued operations
before the mentioned adjustments are non-IFRS measures.
|
|
30 June 2024
(Unaudited)
|
30 June 2023
(Unaudited)
|
|
|
Discontinued operations,
before adjustments
|
Discontinued operations,
total
|
Discontinued operations,
before adjustments
|
Discontinued operations,
total
|
|
(Note
A)
|
$'000
|
|
$'000
|
|
|
|
|
|
|
|
|
Revenue
|
226,041
|
224,178
|
213,720
|
211,751
|
|
Cost of Sales
|
(139,694)
|
(134,315)
|
(118,094)
|
(117,588)
|
|
Gross profit
|
86,347
|
89,863
|
95,626
|
94,163
|
|
Administration expenses
|
(11,427)
|
(10,024)
|
(13,305)
|
(11,105)
|
|
Change in decommissioning
provision
|
3,023
|
3,023
|
14,633
|
14,633
|
|
Exploration and evaluation
expenses
|
(63,096)
|
(63,096)
|
(1,468)
|
(1,468)
|
|
Expected credit loss
|
(961)
|
(961)
|
(409)
|
(409)
|
|
Other expenses
|
(1,366)
|
(1,525)
|
(292)
|
(292)
|
|
Other income
|
595
|
754
|
6,069
|
6,069
|
|
Operating profit
|
13,115
|
18,034
|
100,854
|
101,591
|
|
Finance Income
|
1,155
|
117
|
5,002
|
4,120
|
|
Finance Costs
|
(21,105)
|
(16,135)
|
(18,003)
|
(10,975)
|
|
Net foreign exchange
loss
|
11,117
|
11,205
|
(6,781)
|
(6,778)
|
|
Profit before tax from discontinuing
operations
|
4,282
|
13,221
|
81,072
|
87,958
|
|
Taxation (expense)/
income:
|
|
|
|
|
|
- Related to pre-tax
profit/(loss) from the ordinary activities for the
period
|
(40,553)
|
(40,553)
|
(45,524)
|
(45,524)
|
|
- Related to
remeasurement to fair value less costs to sell
|
-
|
-
|
-
|
-
|
|
(Loss)/ Profit for the period from discontinuing
operations
|
(36,271)
|
(27,332)
|
35,548
|
42,434
|
The major classes of assets and liabilities of
ECL Group classified as held for sale as at 30 June are, as
follows:
|
|
30 June
2024
|
|
|
Discontinued operations,
before adjustments
|
Discontinued
operations,
total
|
|
(Note
A)
|
$'000
|
$'000
|
|
ASSETS
|
|
|
|
Property, plant and
equipment
|
1,041,153
|
1,044,945
|
|
Intangible assets
|
38,805
|
43,636
|
|
Equity-accounted
investments
|
4
|
4
|
|
Deferred tax asset
|
108,764
|
108,764
|
|
Inventories
|
71,118
|
71,118
|
|
Loans receivable from related
party
|
102,394
|
-
|
|
Trade and other
receivables
|
267,329
|
260,951
|
|
Cash and cash
equivalents
|
28,398
|
28,398
|
|
Total assets
|
1.657.965
|
1,557,816
|
|
LIABILITIES
|
|
|
|
Retirement benefit
liability
|
1,133
|
1,133
|
|
Provisions
|
488,840
|
488,840
|
|
Trade and other
payables
|
559,670
|
543,364
|
|
Loans payable to related
party
|
244,183
|
-
|
|
Current tax Liability
|
10,269
|
10,269
|
|
Total liabilities
|
1,304,095
|
1,043,606
|
|
Net assets directly associated with disposal
group
|
353,870
|
514,210
|
The net cashflows incurred by ECL
during six months are, as follows:
|
|
2024
|
2023
|
|
|
$'000
|
$'000
|
|
Operating
|
80,549
|
92,296
|
|
Investing
|
(113,176)
|
(29,079)
|
|
Financing
|
49,920
|
(11,838)
|
|
Net cash (outflow)/inflow
|
17,293
|
51,379
|
|
|
2024
|
2023
|
|
Earnings per share
|
$ cents
|
$ cents
|
|
Basic, (loss)/profit for the year
from discontinued operations
|
$(0.15)/
share
|
$0.24/share
|
|
Diluted, (loss)/profit for the
year from discontinued operations
|
$(0.15)/share
|
$0.23/share
|
As at 30 June 2024, there was no write-down as
the fair value less costs to sell did not fall below the carrying
amount of the disposal group.
As of 30 June 2024, the disposal group has
capital commitments totalling $79.6 million to be fulfilled by the
end of 2024, that mainly relates to Cassiopea project in Italy.
This includes a $15.7 million commitment to the Government of Egypt
and $63.9 million for capital commitments with partners based on
future work programs in Italy.
As of 30 June 2024, the disposal group has $7.7
million in litigation and other provisions. This includes a €3.3
million (approximately $3.5 million) provision for ongoing
litigation with the Termoli Port Authority in Italy regarding fees
for the marine concession for FSO Alba Marina, currently under
appeal in the Campobasso Court of Appeal.
Additionally, Energean Italy Spa is involved in
litigation with three municipalities in Italy over real estate
municipality taxes (IMU/TASI), interest, and penalties for 2016 to
2019. Under the sale and purchase agreement, Edison S.p.A. bears
liability for pre-2019 taxes, while Energean is liable for 2019.
Appeals have been filed with strong legal arguments, and the
likelihood of outflow beyond the $2.1 million provision recognised
is considered remote.
The remaining balance in other provisions
relates to a potential claim in Egypt. The timing of the settlement
and any cash outflows is uncertain, so these provisions are
classified as non-current liabilities based on expected court
hearing dates beyond 12 months from 30 June 2024.
The Group will indemnify at completion, the
prospective buyer of the ECL Group against risks associated with
the failure of specific legal cases mentioned above.
|
|
30 June 2024
(Unaudited)
|
|
31 December
2023
|
|
Performance guarantees:
|
|
|
|
|
Greece (relates to Energean Italy
exploration license)
|
1,823
|
|
|
|
Italy
|
11,955
|
|
16,140
|
|
|
13,778
|
|
16,140
|
25. Related parties
Balances and transactions between the Company
and its subsidiaries, which are related parties, have been
eliminated upon consolidation and are not disclosed in this
note.
The Directors of Energean Plc are considered
the only key management personnel as defined by IAS 24.
There were no related party transactions
conducted by the Group with other related parties during the
reporting period.
26. Commitments and contingencies of continuing
operations
In acquiring its oil and gas interests, the
Group has pledged that various work programmes will be undertaken
on each permit/interest. The exploration and development capital
commitments in the following table are an estimate of the net cost
to the Group of performing these work programmes:
|
|
30 June 2024
(Unaudited)
|
|
31 December
2023
|
|
|
$'000
|
|
$'000
|
|
Capital Commitments:
|
|
|
|
|
Due within one year
|
91,858
|
|
195,903
|
|
Due later than one year but within
two years
|
20,945
|
|
20,963
|
|
Due later two years but within
five years
|
11,885
|
|
6,230
|
|
|
124,688
|
|
223,096
|
For capital commitments related to
discontinued operations as of 30 June 2024, please refer to note
24.
As of 30 June 2024, there are no capital
commitments towards Governments (31 December 2023: $16.7 million).
An amount of $124.7 million (31 December 2023: $206.4 million)
pertains to capital commitments with partners based on future work
programs. These capital commitments include $91.2 million for the
Anchois gas development in Morocco, $12.7 million for the
development of the Scott field in the United Kingdom, and $20.8
million for asset integrity expenses related to the Scott and
Telford fields.
|
|
30 June 2024
(Unaudited)
|
|
31 December
2023
|
|
Performance guarantees:
|
|
|
|
|
Greece
|
1,061
|
|
4,522
|
|
Israel
|
50,568
|
|
53,006
|
|
UK
|
135,347
|
|
95,743
|
|
Morocco
|
375
|
|
-
|
|
Greece, Italy (Note 24)
|
-
|
|
16,140
|
|
|
187,351
|
|
169,411
|
For performance guarantees related
to discontinued operations as of 30 June 2024, please refer to note
24.
Open guarantees at the reporting date:
· Karish and Tanin Leases ($25
million) - As required by the
Karish and Tanin Lease deeds, the Group provided the Ministry of
National Infrastructures, Energy, and Water with bank guarantees
for each lease. These guarantees were renewed in May 2024 and are
valid until June 2025.
· Blocks 12, 21, 23 and 31
($21 million) - To meet the
conditions for obtaining exploration and appraisal licenses during
the Israeli offshore bid in December 2017, the Group provided the
Ministry of National Infrastructures, Energy, and Water with bank
guarantees totalling $6 million in January 2018, covering all
mentioned blocks. These guarantees expire in January 2025.
Additionally, the Group furnished separate guarantees specific to
drilling activities in Blocks 12, 23, and 31, amounting to $15
million. The guarantee for Block 12 expires in November 2024, while
those for Blocks 23 and 31 are valid until June 2025.
· Israeli Natural Gas Lines
("INGL") ($2.5 million) - As part
of the agreement signed with INGL in June 2019, the Group provided
a bank guarantee to secure the milestone payments from INGL. This
guarantee expires on 24 July 2024.
· Israel Other ($2.1
million) - The Group has provided
various bank guarantees to third parties in Israel as part of
ongoing operations.
· United Kingdom ($135.4
million)- The Group has issued
letters of credit for United Kingdom decommissioning obligations
and other obligations under the United Kingdom licenses.
· Greece
- The Group issued letters of credit to cover
obligations under the Block 2 licenses.
Legal cases and contingent liabilities:
As of 30 June 2024, the Group has a contingent
liability of $15 million payable subject to Final
Investment Decision being taken on Anchois Development.
The Group had no material contingent liabilities as at 31
December 2023.
27. Subsequent events
In July 2024, management made a final
investment decision for the Katlan development project in Israel.
The carrying value of the exploration asset at 30 June 2024 was
$207 million. Capital expenditure is expected to be approximately
US$1.2 billion. The Katlan area will be developed in a phased
approach through a subsea tieback to the existing Energean Power
FPSO, which currently serves the Karish and Karish North
developments. The first gas production is expected in the first
half of 2027.
In August 2024, the prospective buyer of the
ECL Group obtained unconditional clearance from the Italian
Competition Authority followed by approval of the Italian
Presidency of the Council of Ministers in respect of the Italian
Golden Power Law in September 2024.
28. Subsidiary undertakings
At 30 June 2024, the Group had
investments in the following subsidiaries:
|
Name of subsidiary
|
Country of incorporation / registered
office
|
Principal activities
|
Shareholding
At 30 June 2024
(%)
|
Shareholding
At 31 December 2023
(%)
|
|
Energean E&P Holdings
Ltd.
|
22 Lefkonos Street, 2064 Nicosia,
Cyprus
|
Holding
Company
|
100
|
100
|
|
Energean Capital Ltd.
|
22 Lefkonos Street, 2064 Nicosia,
Cyprus
|
Holding
Company
|
100
|
100
|
|
Energean Group Services
Ltd.
|
44 Baker Street, London W1U 7AL,
United Kingdom
|
Oil and
gas exploration, development and production
|
100
|
100
|
|
Energean Oil & Gas
S.A.
|
32 Kifissias Avenue, Marousi
Athens, 151 25, Greece
|
Oil and
gas exploration, development and production
|
100
|
100
|
|
Energean International
Ltd.
|
22 Lefkonos Street, 2064 Nicosia,
Cyprus
|
Oil and
gas exploration, development and production
|
100
|
100
|
|
Energean Israel Ltd.
|
22 Lefkonos Street, 2064 Nicosia,
Cyprus
|
Oil and
gas exploration, development and production
|
100
|
100
|
|
Energean Montenegro
Ltd.
|
22 Lefkonos Street, 2064 Nicosia,
Cyprus
|
Oil and
gas exploration, development and production
|
100
|
100
|
|
Energean Israel Transmission
Ltd.
|
Andre Sakharov 9, Haifa,
Israel
|
Gas
transportation license holder
|
100
|
100
|
|
Energean Israel Finance
Ltd.
|
Andre Sakharov 9, Haifa,
Israel
|
Financing activities
|
100
|
100
|
|
Energean Egypt Ltd.
|
22 Lefkonos Street, 2064 Nicosia,
Cyprus
|
Oil and
gas exploration, development and production
|
100
|
100
|
|
Energean Hellas Ltd.
|
22 Lefkonos Street, 2064 Nicosia,
Cyprus
|
Oil and
gas exploration, development and production
|
100
|
100
|
|
Energean Italy S.p.a.
|
31 Foro Buonaparte, 20121 Milano,
Italy
|
Oil and
gas exploration, development and production
|
100
|
100
|
|
Energean Sicilia S.r.l.
|
Via Salvatore Quasimodo 2 - 97100
Ragusa (Ragusa)
|
Oil and
gas exploration, development and production
|
100
|
100
|
|
Energean Exploration
Ltd.
|
44 Baker Street, London W1U 7AL,
United Kingdom
|
Oil and
gas exploration, development and production
|
100
|
100
|
|
Energean UK Ltd.
|
44 Baker Street, London W1U 7AL,
United Kingdom
|
Oil and
gas exploration, development and production
|
100
|
100
|
|
Energean Egypt Energy Services
JSC
|
Block #17, City Center, 5th
Settlement, New Cairo, 11835, Egypt
|
Oil and
gas exploration, development and production
|
100
|
100
|
|
Energean Investments
Ltd.
|
44 Baker Street, London W1U 7AL,
United Kingdom
|
Oil and
gas exploration, development and production
|
100
|
100
|
|
Energean Morocco Ltd.
|
44 Baker Street, London W1U 7AL,
United Kingdom
|
Oil and
gas exploration, development and production
|
100
|
100
|
|
Enearth Limited
|
22 Lefkonos Street, 2064 Nicosia,
Cyprus
|
Holding
Company
|
100
|
-
|
|
Enearth Greece S.A.
|
32 Kifissias Avenue, Marousi
Athens, 151 25, Greece
|
Carbon
Capture Storage
|
100
|
-
|
29. Exploration, development and production
interests
Development and production:
|
Country
|
Licence/unit area
|
Fields
|
Fiscal regime
|
Group's working
interest
|
Joint operation
|
Operator
|
|
Israel
|
|
|
Karish
|
Karish
North, Karish Main
|
Concession
|
100%
|
No
|
NA
|
|
|
Tanin
|
Tanin
|
Concession
|
100%
|
No
|
NA
|
|
Egypt
|
|
|
Abu Qir
|
Abu Qir,
Abu Qir North, Abu Qir West, Yazzi (32.75%)
|
PSC
|
100%
|
No
|
NA
|
|
|
NEA
|
Yazzi
(67.25%), Python
|
PSC
|
100%
|
No
|
NA
|
|
|
NI
|
Field A
(NI-1X), Field B (NI-3X), NI-2X, Viper (NI-4X)
|
PSC
|
100%
|
No
|
NA
|
|
Greece
|
|
|
Prinos
|
Prinos,
Epsilon
|
Concession
|
100%
|
No
|
NA
|
|
|
South Kavala
|
|
Concession
|
100%
|
No
|
NA
|
|
|
Katakolo
|
Katakolo
(undeveloped)
|
Concession
|
100%
|
No
|
NA
|
|
Italy
|
|
|
C.C6.EO
|
Vega A
(Vega B, undeveloped)
|
Concession
|
100%[18]
|
Yes
|
Energean
|
|
|
B.C8.LF
|
Rospo
Mare
|
Concession
|
100%[19]
|
Yes
|
Energean
|
|
|
Fiume tenna
|
Verdicchio
|
Concession
|
100%
|
No
|
Energean
|
|
|
B.C7.LF
|
Sarago,
cozza, vongola
|
Concession
|
95%
|
Yes
|
Energean
|
|
|
B.C11.AS GIANNA
|
Gianna
(undeveloped)
|
Concession
|
49%
|
Yes
|
ENI
|
|
|
Garaguso
|
Accettura
|
Concession
|
50%
|
Yes
|
Energean
|
|
|
A.c14.AS
|
Rosanna
and Gaia
|
Concession
|
50%
|
Yes
|
ENI
|
|
|
A.C15.AX
|
Valentina,
Raffaella, Emanuela, Melania
|
Concession
|
10%
|
Yes
|
ENI
|
|
|
A.c16.AG
|
Delia,
Demetra, Sara, Dacia, Nicoletta
|
Concession
|
30%
|
Yes
|
ENI
|
|
|
A.C8.ME
|
Anemone
and Azelea[20]
|
Concession
|
19% and
15.675%
|
Yes
|
ENI
|
|
|
Masseria Monaco
|
Appia and
Salacaro (undeveloped)
|
Concession
|
50%
|
Yes
|
Energean
|
|
|
G.C1.AG
|
Cassiopea
, Gemini, Centauro
|
Concession
|
40%
|
Yes
|
ENI
|
|
|
B.C14.AS
|
Calipso
and Clara West
|
Concession
|
49%
|
Yes
|
ENI
|
|
|
B.C20.AS
|
Carlo,
Clotilde e Didone (undeveloped)
|
Concession
|
49%
|
Yes
|
ENI
|
|
|
Montignano
|
Cassiano
and Castellaro
|
Concession
|
50%
|
Yes
|
Energean
|
|
|
B.C13.AS
|
Clara Est,
Clara Nord, Clara NW, (Cecilia undeveloped)
|
Concession
|
49%
|
Yes
|
ENI
|
|
|
Comiso (EIS)
|
Comiso
|
Concession
|
100%
|
No
|
NA
|
|
|
A.c13.AS
|
Daria, (
Manuela ,Arabella, Ramona undeveloped)
|
Concession
|
49%
|
Yes
|
ENI
|
|
|
B.C10.AS
|
Emma West
and Giovanna
|
Concession
|
49%
|
Yes
|
ENI
|
|
|
A.C36.AG
|
Fauzia
|
Concession
|
40%
|
Yes
|
ENI
|
|
|
Torrente menocchia
|
Grottammare (undeveloped)
|
Concession
|
76%
|
Yes
|
Petrorep
|
|
|
Montegranaro
|
Leoni
|
Concession
|
50%
|
Yes
|
Gas Plus
|
|
|
Lucera
|
Lucera
|
Concession
|
4.8%
|
Yes
|
GPI
|
|
|
Monte Urano
|
San
Lorenzo
|
Concession
|
40%
|
Yes
|
Energean
|
|
|
A.C21.AG
|
Naide
|
Concession
|
49%
|
Yes
|
ENI
|
|
|
Colle di lauro
|
Portocannone
|
Concession
|
83.32%
|
Yes
|
Energean
|
|
|
Porto civitanova
|
Porto
civitanova
|
Concession
|
40%
|
Yes
|
GPI
|
|
|
Quarto
|
Quarto
|
Concession
|
33%
|
Yes
|
Padana Energia
|
|
|
A.C17.AG
|
Regina
|
Concession
|
25%
|
Yes
|
ENI
|
|
|
S. Andrea
|
|
Concession
|
50%
|
Yes
|
Canoel
|
|
|
B.C2.LF
|
San
Giorgio Mare
|
Concession
|
100%
|
Yes
|
Energean
|
|
|
San Marco
|
San
Marco
|
Concession
|
20%
|
No
|
ENI
|
|
|
B.C1.LF
|
Santo
Stefano
|
Concession
|
95%
|
Yes
|
Energean
|
|
|
Mafalda
|
Sinarca
|
Concession
|
40%
|
Yes
|
Gas Plus
|
|
|
B.C9.AS
|
Squalo
Centrale
|
Concession
|
33%
|
Yes
|
ENI
|
|
|
Massignano
|
Talamonti
|
Concession
|
50%
|
Yes
|
Energean
|
|
|
Masseria Grottavecchia
|
Traetta
|
Concession
|
14%
|
Yes
|
Canoel
|
|
|
S. Anna (EIS)
|
Tresauro
|
Concession
|
25%
|
Yes
|
Enimed
|
|
|
Torrente Celone
|
Vigna
Nocelli (Masseria Conca undeveloped)
|
Concession
|
50%
|
Yes
|
Rockhopper Italia
|
|
UK
|
|
|
Tors
|
Garrow,
Kilmar
|
Concession
|
68%
|
Yes
|
Energean
|
|
|
Markham
|
|
Concession
|
3%
|
Yes
|
Spirit Energy
|
|
|
Scott
|
|
Concession
|
10%
|
Yes
|
CNOOC
|
|
|
Telford
|
|
Concession
|
16%
|
Yes
|
CNOOC
|
|
|
Wenlock
|
|
Concession
|
80%
|
Yes
|
Energean
|
|
Croatia
|
|
|
Izabela
|
|
PSC
|
70%
|
No
|
NA
|
Exploration:
|
Country
|
Concession
|
Fields
|
Fiscal regime
|
Group's working
interest
|
Joint operation
|
Operator
|
|
Israel
|
|
|
Blocks 12, 21, 23, 31
|
Katlan, Hermes and
Hercules
|
Concession
|
100%
|
No
|
N/A
|
|
Egypt
|
|
|
East North Bir El
Nus
|
|
PSC
|
50%
|
Yes
|
Energean
|
|
Greece
|
|
|
Block-2
|
|
Concession
|
75%
|
Yes
|
Energean
|
|
|
Prinos
|
Prinos CO2 Storage
|
Concession
|
100%
|
No
|
N/A
|
|
Italy
|
|
|
G.R13.AG
|
Lince prospect
|
Concession
|
40%
|
Yes
|
ENI
|
|
|
G.R.14.AG
|
Panda, Vela prospect
|
Concession
|
40%
|
Yes
|
ENI
|
|
Croatia
|
|
|
Irena
|
|
PSC
|
70%
|
No
|
NA
|
|
Morocco
|
|
|
Anchois
|
Lixus
|
Concession
|
45%
|
No
|
NA
|
|
|
Anchois
|
Rissana
|
Concession
|
37.5%
|
No
|
NA
|