Investing.com -- Energean, an oil-and-gas company focused on the Eastern Mediterranean and North Sea, reported increased output and earnings for 2024, attributing the performance to its core operations in Israel. The company issued its guidance for 2025, expecting a slight decrease in output.
Shares rose 3.1% in London.
Energean announced it produced 153,000 oil-equivalent barrels (BOE) a day in 2024, a rise from 123,000 BOE a day in the previous year. This output aligns with the company's target range of 150,000-155,000 BOE a day.
The increased output led to a rise in revenue, reaching $1.78 billion from the prior year's $1.42 billion. Adjusted earnings before interest, taxes, depreciation, amortization and exploration (EBITDAE) also saw an increase, up 25% to $1.17 billion. Meanwhile, production costs dropped by 9% to $10 a BOE.
Energean's Chief Executive, Mathios Rigas, noted the growing gas demand in the region, driven by the increasing electricity demand and the phasing out of coal. "We are well positioned to add new long-term agreements, including potential export contracts, to further grow sales," Rigas said.
For 2025, the London-based company anticipates a dip in output to between 120,000 and 130,000 BOE a day. It also expects growth in Israel gas sales to be more prominent in the second half of the year. The company forecasted production costs from continuing operations to range between $410 million and $440 million.
Energean also announced the sale of its portfolios in Egypt, Italy, and Croatia to Carlyle Group (NASDAQ:CG) for up to $945 million. The transaction is expected to close in the first quarter of 2025.
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