Energean swings to interim loss as sales crash

Energean posted an adjusted underlying loss of $8.9m for the six months ended 30 June, a marked turnaround from the $24.0m of adjusted underlying earnings reported a year earlier.

The FTSE 250-listed firm's stand-alone loss after tax for the period ended 30 June 2020 was $77.3m, a significant widening, when compared to the $4.5m loss, recorded a year earlier, after a non-cash impairment charge of $63.0 million that reflects the lower commodity price outlook.

Energean said sales and other revenues tumbled from $40.0m to $2.1m as production nearly halved to 2,100 barrels of oil equivalent per day and net debt more than doubled to $861.4m.

Chief executive Mathios Rigas said: "Despite some Covid-19-related disruptions, in the year-to-date, we have made solid progress on our flagship gas project in Israel, which is scheduled to deliver first gas in 2H 2021."

Energean also reiterated its full-year production guidance at 44,500-51,500 barrels of oil per day.

As of 0900 BST, Energean shares were down 3.65% at 529.90p.