Energean targets maiden dividend for 2022

Gas producer Energean lifted annual core earnings and continued to work towards first gas from its Karish field in the first quarter of 2022 along with an inaugural dividend payment in the same year.

The company on Monday reported a rise in earnings before interest, tax, depreciation and amortisation to $107.7m from $35.6m a year ago as sales rose to £3356m from $75.7m.

On a pre-tax basis, losses for the year to December 31 widened to $113.6m from $404.3m as revenue fell 63% to $28m.

Energean said it was targeting working interest production in a range of 36,000-to-41,000 boepd, increased by 1,000 due to the absorption of the Rospo Mare and Vega interests.

Development and production capital expenditure was forecast to fall to $470m - $550m, from $510m - $590m.

A floating production and storage facility is still in Singapore where the shipyard remains under limitations imposed by Covid-related restrictions, including limited access to workers and yard productivity, the company said, adding it was working with its contractors to firm up this timetable “and will update the market as the situation evolves”.

Energean holds a 100% working interest in the Karish and Tanin leases, offshore Israel.

The company last month said it would issue $2.5bn worth of bonds in four tranches of $625m to refinance existing loans. The funds are expected to repay outstanding debts under Energean’s $1.45bn project finance facility and a $700m term loan, replace existing undrawn amounts and fund some reserve accounts.