Energean reported a resilient operational and financial performance for 2025 on Thursday, while warning that production in Israel was temporarily suspended due to escalating geopolitical tensions in the Middle East.
The FTSE 250 gas producer posted total revenue and other income of $1.77bn for the year ended 31 December, broadly flat on the prior year’s $1.78bn, while adjusted EBITDAX fell 4% to $1.12bn.
It swung to a net loss of $258m from a profit of $127m in 2024, reflecting exceptional non-cash items including impairments linked to the Cassiopeia field, accelerated depreciation and foreign exchange losses.
Earnings per share came in at a loss of $1.40, compared with positive EPS of 69 cents a year earlier.
Operationally, production remained stable at 154 kboed, up 1% year-on-year and at the upper end of revised guidance, with gas accounting for around 85% of output.
Cash flow from operating activities rose 2% to $1.14bn, while capital expenditure was reduced by 20% to $587m.
The company maintained its dividend at $1.20 per share, returning $221m to shareholders.
“In 2025, we demonstrated the underlying resilience of our business, despite the challenging backdrop,” said chief executive Mathios Rigas.
“We delivered robust financial and operational performance, and we further enhanced the long-term value and cash flow visibility of our portfolio, signing [more than] $4bn of new gas sales agreements and investing in new export infrastructure in Israel.”
Energean highlighted strong safety and environmental performance, with its lost time injury frequency improving to 0.20 from 0.34 and emissions intensity reduced by 11% to 7.5 kgCO2e/boe.
Costs remained tightly controlled, with operating costs steady at $6 per barrel of oil equivalent.
The group also strengthened its balance sheet position through refinancing activities, leaving no near-term debt maturities, although net debt increased to $3.26bn from $2.95bn, with leverage rising to 2.9x from 2.5x.
Strategically, Energean continued to expand its portfolio, signing more than $4bn of new long-term gas contracts in Israel and progressing development of the Nitzana export pipeline.
In Egypt, it stabilised receivables and is advancing plans to merge offshore concessions, with terms expected to be agreed around mid-2026.
Post-period, the company announced its entry into Angola through the acquisition of Chevron’s stakes in offshore Blocks 14 and 14K, marking a key step in its growth strategy.
“Our entry into offshore Angola represents the first step in this new chapter of growth in West Africa,” Rigas said.
“It is a region rich in potential, with multiple opportunities to unlock value both through near-term cost and production optimisation and longer-term development optionality.”
He added that 2026 “marks an important inflection point” for the company, highlighting continued focus on disciplined M&A and diversification, including the completed farm-in by ExxonMobil to Block 2 in Greece.
However, Energean flagged near-term operational disruption in Israel, where production had been halted following a government order.
“Although we had a strong start to 2026, production in Israel is currently suspended following a government-ordered shutdown in response to the recent geopolitical situation in the Middle East,” Rigas said.
“The safety of our people remains our highest priority.”
Average production to the end of February stood at 155 kboed, in line with full-year guidance of 145 to 155 kboed, although the company said the impact of the suspension on 2026 output remained under review and guidance for Israel had been temporarily withdrawn.
Production from the rest of the portfolio was expected to remain at 32 to 36 kboed.
Looking ahead, Energean said it was continuing to evaluate further growth opportunities across the EMEA region while maintaining strict capital discipline, with exploration drilling in Egypt expected to begin in the second quarter and Greek exploration activity targeted for 2027.
At 0847 GMT, shares in Energean were up 0.28% at 905.5p.
Reporting by Josh White for Sharecast.com.