Energean production beats guidance after Edison purchase

The FTSE 250 group's net loss more than halved to $35.7m in the six months to the end of June from $77.3m a year earlier as sales revenue soared to $205.5m from $2.1m following the Edison acquisition. Adjusted earnings per share were $74.7m compared with a loss of $8.8m a year earlier.

Energean agreed to buy Edison's oil and gas portfolio for $750m in July 2019 and completed the deal in December 2020, making it the biggest independent gas-focused explorer and producer in the Mediterranean. Gas is in favour as a "bridging fuel" as energy shifts away from more carbon intensive sources such as oil and coal.

Mathios Rigas, Energean's chief executive, said: "Energean delivered excellent operational and financial progress, reflecting the transformational nature of the acquisition of Edison E&P. Production is outperforming guidance, translating into record financial performance and, through successful execution of our gas- and returns-focused strategy, we have achieved a significant milestone in our transformation."

Energean raised its production target in May to 38-44 thousand barrels of oil per day. It said on Thursday that production averaged 44 thousand barrels per day in the first half. It stuck to the full-year target.

The company said its flagship Karish gas development in Israel was "firmly on track" to produce its first gas in mid-2022. Energean said it would declare its dividend policy in due course.

Energean shares rose 1.7% to 691.5p at 08:41 BST.