Ithaca Energy today announced its financial results for the six months ended 30 June 2021.

Highlights

• Production of 56,000 boe per day, 67% liquids, for the first half of the year; Q2 production performance was impacted by planned Forties Pipeline System summer shutdown.
• Unit operating costs of $18/boe.
• EBITDAX of $378 million including realised gains of $66 million on the commodity hedging instruments that were reset in 2020.
• Results for the period include the $174 million non-cash impairment reversal arising from the strengthening view of future commodity prices.
• 17 million boe (66% oil) hedged from Q3 2021 into 2023 at an average price floor of $47/bbl oil and 44p/therm gas.
• Net debt at 30 June 2021 was $1.01 billion, down from $1.07 billion at 31 March 2021 following a further repayment of RBL debt of $50 million. The company also declared and paid a dividend of $15 million on 13 May 2021.
• Following the close of Q2, a significant refinancing program was successfully completed in July 2021 which included amending and extending the Reserves Based Lending facility of $1.225 billion to 2026 and putting in place a new $625 million bond (senior notes). The refinancing program will enable the Company to continue to pursue its business growth ambitions, and focus on production and projects.
• As part of the refinancing the company repaid the $250 million Subordinated Shareholder Loan to Delek Group Ltd on 3 August.
• On 5 August, the WilPheonix rig spudded the Fotla exploration well. The Fotla prospect is located 12km south of the Alba field in the UK’s North Sea.

KeyFacts Energy: Ithaca Energy UK country profile